LEGAL CONTROLS OVER PETROLEUM EXPLORATION AND DEVELOPMENT OFFSHORE WESTERN AUSTRALIA

Abstract

Increased petroleum exploration and development activities offshore Western Australia will continue to attract the focus of many companies, contractors and investors who will find that their exploration and development activities and operating practices are controlled by a mixed regime of State and Federal legislation. This mixed regime has its sources in international and constitutional law.

Working within these controls is not assisted by the complexity of State and Commonwealth jurisdictional problems in respect to offshore areas. Certain governmental arrangements between the State and the Commonwealth, however, facilitate continued exploration activity offshore, whilst some of the legal issues remain to be resolved. Some guiding principles as to what laws apply offshore and to what extent, are indicated.

The consultative arrangements between the State and the Commonwealth under the Offshore Petroleum Code allow for Commonwealth ownership and State control of offshore petroleum resources to co-exist. These are commented upon and the Petroleum (Submerged Lands) Acts are analysed with respect to the nature and security of petroleum titles; the setting, performance and variation of work and monetary obligations; the range of administrative discretion in relation thereto; the transferability of petroleum interests and the rate and calculation of royalties.

Directions regulating offshore operations generally and covering exploration, reporting, platforms, pipelines, production and work practices are explained. Some of the environmental controls are also mentioned.