Commonwealth of Australia Explanatory Memoranda

[Index] [Search] [Download] [Bill] [Help]


OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE (SAFETY LEVIES) AMENDMENT BILL 2010


                               2008-2009-2010





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                          HOUSE OF REPRESENTATIVES





   OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE (SAFETY LEVIES) AMENDMENT
                                  BILL 2010





                           EXPLANATORY MEMORANDUM







     (Circulated by authority of the Minister for Resources and Energy,
                   the Honourable Martin Ferguson AM, MP)
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE (SAFETY LEVIES) AMENDMENT
BILL 2009

GENERAL OUTLINE

The purpose of this Bill is to provide transitional arrangements from 1
January 2010 until 31 December 2012 in relation to section 8 of the
Offshore Petroleum and Greenhouse Gas Storage Act 2003 (the Act) which
imposes a safety case levy in relation to designated coastal waters.

The transitional arrangements provide that for the stated period where a
pipeline safety management plan is in force for a pipeline in designated
coastal waters this is treated as if a safety case was in force.

The transitional arrangements also provide that for the stated period where
a safety case for a facility in designated coastal waters is in force under
State or Territory regulations that substantially correspond to the
Petroleum (Submerged Lands) (Management of Safety on Offshore Facilities)
Regulations 1996, as those regulations were in force immediately before the
end of 31 December 2009, this safety case is treated as if it were in force
under State or Territory regulations that correspond to the current
Commonwealth Offshore Petroleum (Safety) Regulations 2009.

The Act was amended by the Offshore Petroleum and Greenhouse Gas Storage
(Safety Levies) Amendment Act 2009 (the Amendment Act), which received
Royal Assent on 9 October 2009.  The Amendment Act removed references to
the pipeline safety management plan levy.  The safety case levy was
extended to cover pipelines.

Commonwealth offshore petroleum safety and pipeline regulations were
amended along similar lines and came into force on 1 January 2010
corresponding to the commencement of the amendments to the Act.

While the Amendment Act provided transitional arrangements it did so on the
basis that State and Territory regulations which correspond to the
Commonwealth regulations would be similarly amended.  This has not yet
occurred which means that some safety levy payments due to the National
Offshore Petroleum Safety Authority may not be collectable until such time
as the Act is amended.  Thus a transitional period is required to give
States and the Northern Territory sufficient time to implement
corresponding amendments, and to enable the safety case levy to be
collected under section 8 in the mean time.

FINANCIAL IMPACT STATEMENT

The Bill will not have any financial impact on the Australian Government
Budget. There are no additional costs to industry.

REGULATORY IMPACT STATEMENT

This bill does not impose any new regulatory burden on the petroleum
industry.

NOTES ON INDIVIDUAL CLAUSES

Clause 1 - Short title

Clause 1 is a formal provision specifying the short title of the Bill.

Clause 2 - Commencement

Sections 1 to 3 in the Bill will commence the day the Act receives Royal
Assent.

Schedule 1 will commence retrospectively on 1 January 2010.

Clause 3 - Schedule(s)

This clause gives effect to the provisions in a Schedule to this Act.

Schedule 1 - Amendments

Item 1 - Subsection 7(8) (definition of safety case in force in relation to
a facility)
This item updates the subsection to refer to the new Offshore Petroleum
(Safety) Regulations 2009 instead of the Petroleum (Submerged Lands)
(Management of Safety on Offshore Facilities) Regulations 1996, which were
repealed on 1 January 2010 when the Offshore Petroleum (Safety) Regulations
2009 commenced.

Item 2 - After subsection 8(7)
This item adds a new subsection 7A setting out a transitional period
starting on
1 January 2010 and ending on 31 December 2012 for when a pipeline safety
management plan is in force in relation to a pipeline that is a facility.
Under this transitional provision the pipeline safety management plan in
force is treated as if a safety case for the pipeline was in force.

This item also adds a new subsection 7B setting out a transitional period
starting on 1 January 2010 and ending on 31 December 2012 for when a safety
case is in force in relation to a facility in designated waters of a State
or the Northern Territory. Such a safety case is within the meaning of the
State or Territory regulations that correspond to the Petroleum (Submerged
Lands) (Management of Safety on Offshore Facilities) Regulations 1996, as
those last-mentioned regulations were in force immediately before the end
of 31 December 2009. Under this transitional provision this safety case is
treated as if it were in force under State or Territory regulations that
correspond to the Commonwealth Offshore Petroleum (Safety) Regulations
2009.

This is to allow sufficient time for the amendment of State and Northern
Territory regulations that correspond to Commonwealth safety and pipelines
regulations.  The Commonwealth regulations were recently amended with
effect from 1 January 2010.

The Act was recently amended by the Offshore Petroleum and Greenhouse Gas
Storage (Safety Levies) Amendment Act 2009 (the Amendment Act), which
received Royal Assent on 9 October 2009 with effect from 1 January 2010.
The Amendment Act removed references to the pipeline safety management plan
levy.  The safety case levy was extended to cover pipelines.

Commonwealth offshore petroleum safety levies, safety and pipeline
regulations were amended along similar lines and came into force on 1
January 2010 corresponding to the commencement of the amendments to the
Act.

The key changes in these regulation amendments were to remove the pipeline
safety management plan from pipeline regulations and remove the pipeline
safety management plan levy from safety levy regulations.  A safety case
levy for pipelines replaced the pipeline safety management plan levy and
the safety aspects of pipeline operations were removed from pipeline
regulations and incorporated into safety regulations.

While the Amendment Act provided transitional arrangements it did so, on
the basis that State and Territory regulations, which correspond to the
Commonwealth regulations, would be similarly amended.  This has not yet
occurred which means that some safety levy payments due to the National
Offshore Petroleum Safety Authority (NOPSA) may not be collectable until
such time as the Act is amended.

The levy payments potentially affected are those for pipelines in
designated coastal waters.  Thus a transitional period is required to give
States and the Northern Territory sufficient time to implement
corresponding amendments.

This item and items 3 to 6 below are to commence from 1 January 2010 which
corresponds to when amendments to the Act and Commonwealth regulations came
into force.

Item 3 - Subsection 8(8)
This item insets a definition for a pipeline safety management plan in
force in relation to a pipeline to help define the new transitional
provision 8(7A).

Item 4 - Subsection 8(8) (definition of safety case in force in relation to
a facility)
This item updates the subsection to refer to the new Offshore Petroleum
(Safety) Regulations 2009 instead of the Petroleum (Submerged Lands)
(Management of Safety on Offshore Facilities) Regulations 1996, which were
repealed on 1 January 2010 when the Offshore Petroleum (Safety) Regulations
2009 commenced.

Item 5 - Application of amendment - subsection 7(8) of the Offshore
Petroleum and Greenhouse Gas Storage (Safety Levies) Act 2003
This item states that the amendment made by item 1 only applies for safety
cases in force on or after 1 January 2010.

Item 6 - Application of amendment - subsection 8(8) of the Offshore
Petroleum and Greenhouse Gas Storage (Safety Levies) Act 2003
This item states that the amendment made by item 4 applies for safety cases
in force on or after 1 January 2010.

 


[Index] [Search] [Download] [Bill] [Help]