SMOOTHING THE PATH—CHANGES TO COMMONWEALTH OFFSHORE PETROLEUM LEGISLATION

Abstract

The last few years have seen a range of important changes to the Commonwealth legislation governing offshore petroleum resources. Not the least of these has been the passing of the new Offshore Petroleum Act 2006 (OPA), which will replace the Petroleum (Submerged Lands) Act 1967 (PSLA), and the recent ratification of the Treaty on Certain Maritime Arrangements in the Timor Sea (CMATS) and the Greater Sunrise International Unitisation Agreement.

The PSLA has been the primary legislation for the administration of Australia’s offshore petroleum resources for close to 40 years and, through age and many amendments, it has become complex and unwieldy. The Government saw the need to rewrite the Act to provide a more user-friendly enactment that would reduce compliance costs for governments and industry. The rewrite, passed as the Offshore Petroleum Act 2006, focussed on restructuring the Act, deleting outdated text, rewriting specific sections and generally improving its readability rather than rewriting the entire Act in plain English or changing present regulatory arrangements.

The OPA was passed through the Commonwealth Parliament in 2006 and has been passed as mirror legislation to cover offshore waters by the majority of States and the Northern Territory. It will be proclaimed to cover Commonwealth waters once it has been mirrored by the States. The Australian Government will continue to press the remaining States to enact the OPA and it is hoped this process can be finalised later this year.

Another major step forward has been the setting up of the National Offshore Petroleum Safety Authority (NOPSA). NOPSA is the centralised Australian Government statutory authority responsible for the administration and enforcement of occupational health and safety legislation in the offshore petroleum industry. It has this role for offshore petroleum activities both in Commonwealth waters and in State and Northern Territory offshore waters. The Safety Authority commenced its regulatory operations on 1 January 2005. It has its headquarters in Perth and an office in Melbourne.