THE NEW OFFSHORE PETROLEUM LEGISLATION

Abstract

The new offshore petroleum legislation gives effect to the revised arrangements agreed between the Commonwealth and the States for the administration of offshore petroleum mining. Commonwealth legislation only applies beyond the three mile territorial sea in areas adjacent to the States and the Northern Territory. State and Northern Territory complementary legislation applies in the territorial sea area. All offshore mining whether inside or outside the territorial sea will be conducted in accordance with a common mining code.

The Commonwealth legislation establishes Joint Authorities for each adjacent area consisting of the Commonwealth Minister for National Development and Energy and the relevant State or Northern Territory Minister. The Joint Authorities decide important questions of title under the legislation, including the grant, renewal and transfer of exploration and production permits and safety issues. Decisions on matters within the responsibility of the Joint Authorities rest finally with the Commonwealth Minister ensuring that the Commonwealth exercises proper constitutional responsibilities. Day-to-day matters arising in the administration of the legislation continue to be the responsibility of the State and Northern Territory Ministers, as Designated Authorities under the legislation, and their Departments continue to supervise offshore operations. The existing arrangements for sharing of royalties between the Commonwealth and the States and the Northern Territory continue, both inside and outside the territorial sea area.

In administering the new legislation, the Commonwealth and the States and the Northern Territory are working closely to develop efficient and effective practices and a uniform and consistent approach to administration. These activities of the Commonwealth, the States and the Northern Territory are discussed in the context of issues arising since preparation of the legislation and emerging trends.