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This is a Bill, not an Act. For current law, see the Acts databases.


PETROLEUM (ONSHORE) AMENDMENT (PROHIBIT COAL SEAM GAS) BILL 2015





                                     New South Wales




Petroleum (Onshore) Amendment (Prohibit
Coal Seam Gas) Bill 2015

Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill
The object of this Bill is to amend the Petroleum (Onshore) Act 1991:
(a) to prohibit prospecting for, or the mining of, coal seam gas in New South Wales, and
(b) to reintroduce the public interest as a ground for certain decisions relating to petroleum
      titles.

Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on the day that is 14 days after the
date of assent to the proposed Act. This day is also the prohibition commencement day for the
purposes of the provisions to be inserted by the proposed Act.

Schedule 1             Amendment of Petroleum (Onshore) Act 1991
                       No 84
Schedule 1 [1] inserts a new Part in the Act dealing with prospecting or mining coal seam gas. On
and from the prohibition commencement day, the new Part:
(a) prohibits prospecting for or mining coal seam gas in all areas of New South Wales except
      in accordance with an existing production lease, and
(b) provides for any petroleum title (other than an existing production lease) relating to coal
      seam gas that is in force immediately before that day to cease to have effect to the extent to


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Petroleum (Onshore) Amendment (Prohibit Coal Seam Gas) Bill 2015 [NSW]
Explanatory note



      which it authorises prospecting for or mining coal seam gas in any area of New South
      Wales, and
(c)   prevents the Minister from granting new, or renewing existing, petroleum titles relating to
      coal seam gas, and
(d)   prevents the holder of an existing production lease from conducting petroleum mining
      operations involving drilling or hydraulic fracturing for the purpose of increasing or
      extending the holder's capacity to produce coal seam gas, and
(e)   enables the Minister to cancel a petroleum title that has entirely ceased to have effect
      because of the operation of the new Part, and
(f)   provides that the State is not required to pay compensation in connection with the enactment
      or operation of the new Part, but may nevertheless voluntarily choose to do so.
Schedule 1 [2] reintroduces the public interest as a ground for certain decisions relating to
petroleum titles. The ground was first introduced by the Mining and Petroleum Legislation
Amendment (Public Interest) Act 2013, but was replaced by a fit and proper person ground by the
Mining and Petroleum Legislation Amendment Act 2014.




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Introduced by the Hon Jeremy Buckingham, MLC                         First print




                                 New South Wales




Petroleum (Onshore) Amendment (Prohibit
Coal Seam Gas) Bill 2015
Contents
                                                                          Page


              1    Name of Act                                               2
              2    Commencement                                              2
     Schedule 1    Amendment of Petroleum (Onshore) Act 1991 No 84           3




b2015-017-94.d06
                                   New South Wales




Petroleum (Onshore) Amendment (Prohibit
Coal Seam Gas) Bill 2015

No     , 2015


A Bill for
An Act to amend the Petroleum (Onshore) Act 1991 to prohibit prospecting for, or the mining of,
coal seam gas in New South Wales and to reintroduce the public interest as a ground for certain
decisions relating to petroleum titles.
Petroleum (Onshore) Amendment (Prohibit Coal Seam Gas) Bill 2015 [NSW]




The Legislature of New South Wales enacts:                                                        1

 1    Name of Act                                                                                 2

            This Act is the Petroleum (Onshore) Amendment (Prohibit Coal Seam Gas)                3
            Act 2015.                                                                             4

 2    Commencement                                                                                5

            This Act commences on the day that is 14 days after the date of assent to this Act.   6




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Petroleum (Onshore) Amendment (Prohibit Coal Seam Gas) Bill 2015 [NSW]
Schedule 1 Amendment of Petroleum (Onshore) Act 1991 No 84



Schedule 1             Amendment of Petroleum (Onshore) Act 1991                                          1
                       No 84                                                                              2

[1]   Part 2A                                                                                             3

      Insert after Part 2:                                                                                4


      Part 2A Prospecting or mining coal seam gas                                                         5

         7A   Definitions                                                                                 6

                    In this Part:                                                                         7
                    coal seam gas means any petroleum in a gaseous state that is extracted from           8
                    coal seams or beds, shales or tight sands.                                            9
                    existing production lease means a production lease that is in force                  10
                    immediately before the prohibition commencement day.                                 11
                    petroleum title relating to coal seam gas means any of the following:                12
                     (a) an exploration licence granting the holder the exclusive right to prospect      13
                           for coal seam gas on the land comprised in the licence,                       14
                    (b) an assessment lease granting the holder the exclusive right to prospect          15
                           for coal seam gas and to assess any coal seam gas deposit on the land         16
                           comprised in the lease,                                                       17
                     (c) a production lease granting the holder the exclusive right to conduct           18
                           petroleum mining operations for coal seam gas in and on the land              19
                           included in the lease,                                                        20
                    (d) a special prospecting authority granting the holder the exclusive right to       21
                           conduct speculative geological, geophysical or geochemical surveys or         22
                           scientific investigations in relation to coal seam gas on and in respect of   23
                           the land comprised in the authority.                                          24
                    prohibition commencement day means the day on which the Petroleum                    25
                    (Onshore) Amendment (Prohibit Coal Seam Gas) Act 2015 commenced.                     26

         7B   Prohibition of coal seam gas prospecting or mining                                         27

              (1)   On and from the prohibition commencement day:                                        28
                    (a) prospecting for or mining coal seam gas is prohibited in all areas of New        29
                         South Wales except in accordance with an existing production lease (as          30
                         modified by subsection (2)), and                                                31
                    (b) any petroleum title (other than an existing production lease) relating to        32
                         coal seam gas that is in force immediately before that day ceases to have       33
                         effect to the extent to which it authorises prospecting for or mining coal      34
                         seam gas in any area of New South Wales, and                                    35
                    (c) the Minister must not (and cannot) grant or renew any petroleum title            36
                         relating to coal seam gas.                                                      37

              (2)   An existing production lease that is a petroleum title relating to coal seam gas     38
                    is taken, on and from the prohibition commencement day, not to authorise its         39
                    holder to conduct petroleum mining operations involving drilling or hydraulic        40
                    fracturing for the purpose of increasing or extending the holder's capacity to       41
                    produce coal seam gas.                                                               42




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Petroleum (Onshore) Amendment (Prohibit Coal Seam Gas) Bill 2015 [NSW]
Schedule 1 Amendment of Petroleum (Onshore) Act 1991 No 84



              (3)   To avoid doubt, section 7 (Offence of prospecting or mining without                     1
                    authority) extends to a person who prospects or mines coal seam gas except in           2
                    accordance with an existing production lease (as modified by subsection (2)).           3
                    Note. Section 7 makes it an offence for a person to prospect for or mine petroleum      4
                    (including coal seam gas) except in accordance with a petroleum title.                  5

         7C   Cancellation of ineffective petroleum titles                                                  6

              (1)   A petroleum title relating to coal seam gas may be cancelled by the Minister            7
                    on or after the prohibition commencement day if the Minister is satisfied that          8
                    the title has entirely ceased to have effect because of the operation of this Part.     9

              (2)   Cancellation of a petroleum title under this section takes effect on the date on       10
                    which written notice of the cancellation is served on the holder of the title, or      11
                    on such later date as is specified in the notice.                                      12

              (3)   Notice of a cancellation of a petroleum title under this section is to be              13
                    published in the Gazette as soon as practicable after the cancellation takes           14
                    effect.                                                                                15

              (4)   Before cancelling a petroleum title under this section, the Minister:                  16
                    (a) must cause written notice of the proposed cancellation, and of the                 17
                          grounds of the proposed cancellation, to be served on the holder of the          18
                          title, and                                                                       19
                    (b) must give the holder of the title a reasonable opportunity to make                 20
                          representations with respect to the proposed cancellation, and                   21
                    (c) must take any such representations into consideration.                             22

              (5)   This section is in addition to, and does not derogate from, the provisions of          23
                    section 22 (Cancellation and suspension of title).                                     24

         7D   Compensation not payable                                                                     25

              (1)   Compensation is not payable by or on behalf of the State:                              26
                    (a) because of the enactment or operation of this Part, the Petroleum                  27
                        (Onshore) Amendment (Prohibit Coal Seam Gas) Act 2015 or any Act                   28
                        that amends this Part, or                                                          29
                    (b) because of any direct or indirect consequence of any such enactment or             30
                        operation (including any conduct under the authority of any such                   31
                        enactment), or                                                                     32
                    (c) because of any conduct relating to any such enactment or operation.                33

              (2)   This section extends to conduct and any other matter occurring before the              34
                    commencement of this section.                                                          35

              (3)   To avoid doubt, nothing in this section prevents the State from voluntarily            36
                    providing compensation, in such circumstances as it considers appropriate, for         37
                    any conduct or other matter of a kind referred to in subsection (1) (a), (b) or (c).   38

              (4)   In this section:                                                                       39
                    compensation includes damages or any other form of compensation.                       40
                    conduct includes any statement, or any act or omission:                                41
                     (a) whether unconscionable, negligent, false, misleading, deceptive or                42
                           otherwise, and                                                                  43
                    (b) whether constituting an offence, tort, breach of contract, breach of               44
                           statute or otherwise.                                                           45




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Petroleum (Onshore) Amendment (Prohibit Coal Seam Gas) Bill 2015 [NSW]
Schedule 1 Amendment of Petroleum (Onshore) Act 1991 No 84



                    statement includes a representation of any kind, whether made orally or in         1
                    writing.                                                                           2
                    the State means the Crown within the meaning of the Crown Proceedings Act          3
                    1988 or an officer, employee or agent of the Crown.                                4

         7E   Operation of Part                                                                        5

                    This Part has effect despite any other provision of this Act or any other law.     6

[2]   Section 24B                                                                                      7

      Insert after section 24A:                                                                        8

      24B     Public interest relevant ground for making certain decisions about petroleum             9
              titles                                                                                  10

              (1)   The public interest is a ground (in addition to any other available ground) on    11
                    which any of the following decisions may be made under this Act:                  12
                    (a) a decision to refuse to grant, renew or transfer a petroleum title,           13
                    (b) a decision to cancel a petroleum title or to suspend operations under a       14
                          petroleum title (in whole or in part),                                      15
                    (c) a decision to restrict operations under a petroleum title by the              16
                          imposition or variation of conditions of a petroleum title.                 17

              (2)   To avoid doubt, section 22 (5) extends to the cancellation of (or suspension of   18
                    operations under) a petroleum title under this section.                           19

              (3)   This section has effect despite anything to the contrary in this Act.             20

              (4)   This section applies to any decision made after the commencement of this          21
                    section, including:                                                               22
                    (a) a decision with respect to an application or other matter that was            23
                          pending on that commencement, and                                           24
                    (b) a decision that is based on conduct that occurred, or on a matter that        25
                          arose, before that commencement.                                            26




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