Offshore Petroleum (Safety Levies) Amendment Regulations 2009 (No. 1)1

Select Legislative Instrument 2009 No. 381

I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Offshore Petroleum and Greenhouse Gas Storage (Safety Levies) Act 2003 and the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

Dated 14 December 2009

QUENTIN BRYCE

Governor-General

By Her Excellency’s Command

MARTIN FERGUSON

Minister for Resources and Energy

1 Name of Regulations

  These Regulations are the Offshore Petroleum (Safety Levies) Amendment Regulations 2009 (No. 1).

2 Commencement

  These Regulations commence on 1 January 2010.

3 Amendment of Offshore Petroleum (Safety Levies) Regulations 2004

  Schedule 1 amends the Offshore Petroleum (Safety Levies) Regulations 2004.

4 Transitional

  Parts 6 and 7 of the Offshore Petroleum (Safety Levies) Regulations 2004, as in force immediately before 1 January 2010, continue to apply in relation to:

 (a) the assessment of levy payable on a pipeline safety management plan in force before the commencement of these Regulations; and

 (b) an assessment that no levy is payable on a pipeline safety management plan in force before the commencement of these Regulations; and

 (c) the payment or recovery of the levy mentioned in paragraph (a).

Schedule 1 Amendments

(regulation 3)

[1] Regulation 1

substitute

1 Name of Regulations

  These Regulations are the Offshore Petroleum and Greenhouse Gas Storage (Safety Levies) Regulations 2004.

[2] Regulation 3, except the note

substitute

3 Definitions

  In these Regulations:

CEO has the meaning given by section 643 of the OPGGS Act.

Commonwealth waters has the meaning given by section 643 of the OPGGS Act.

designated coastal waters has the meaning given by section 643 of the OPGGS Act.

OHS inspector has the meaning given by section 643 of the OPGGS Act.

OPGGS Act means the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

OPGGS(SL) Act means the Offshore Petroleum and Greenhouse Gas Storage (Safety Levies) Act 2003.

part quarter means a period within a quarter that is at least 1 day long, but less than the length of the quarter, during which a safety case is in force in relation to a facility.

quarter means a period of 3 months starting on any of the following dates:

(a) 1 January;

(b) 1 April;

(c) 1 July;

(d) 1 October.

Safety Authority means the National Offshore Petroleum Safety Authority, mentioned in Part 6.9 of the OPGGS Act.

Safety Authority waters has the meaning given by section 643 of the OPGGS Act.

SMS means safety management system.

SMS amount means a charge for the assessment of a safety management system, worked out in accordance with Schedule 1, that applies to 1 or more facilities or pipelines under the management or control of an operator or licensee.

State PSLA has the meaning given by section 643 of the OPGGS Act.

Territory PSLA has the same meaning as in section 643 of the OPGGS Act.

[3] Regulation 3, note

omit

OPSL Act

insert

OPGGS(SL) Act

[4] Regulation 3, note

omit

 pipeline safety management plan levy

[5] Subparagraph 4 (2) (a) (i)

omit

pipeline safety management plan levy

insert

safety case levy

[6] Subparagraph 4 (2) (b) (i)

omit

pipeline safety management plan levy

insert

safety case levy

[7] Subregulation 4 (3), including note

substitute

 (3) In this regulation:

pipeline has the same meaning as in section 7 of the OPGGS Act.

Note   The imposition of levy in relation to a pipeline is based on where the pipeline is located. Pipelines are often laid across a number of jurisdictions. This regulation ensures that levy is payable in relation to Commonwealth waters, or designated coastal waters, depending on where the longest part of the pipeline is located.

[8] Regulation 6

substitute

6 Definitions for Part 2

  In this Part:

accident has the same meaning as in clause 3 of Schedule 3 to the OPGGS Act.

dangerous occurrence has the same meaning as in clause 3 of Schedule 3 to the OPGGS Act.

facility has the same meaning as in clause 3 of Schedule 3 to the OPGGS Act.

incremental cost means the cost worked out under subregulation 7 (2).

inspection has the same meaning as in clause 3 of Schedule 3 to the OPGGS Act.

notifiable accident or occurrence has the same meaning as in subsection 5 (8) of the OPGGS(SL) Act.

operator has the same meaning as in clause 5 of Schedule 3 to the OPGGS Act.

[9] Subregulation 7 (1)

omit each mention of

OPSL Act

insert

OPGGS(SL) Act

[10] Subregulation 9 (1)

omit

OPSL Act

insert

OPGGS(SL) Act

[11] Regulation 11, heading

substitute

11 When safety investigation levy is due and payable

[12] Subregulations 11 (1) and (6)

omit

subsection 150YR (1) of the PSL Act

insert

subsection 686 (1) of the OPGGS Act

[13] Regulation 13

substitute

13 Definitions for Part 3

  In this Part:

accident has the same meaning as in subsection 6 (8) of the OPGGS(SL) Act.

dangerous occurrence has the same meaning as in subsection 6 (8) of the OPGGS(SL) Act.

facility has the same meaning as in subsection 6 (8) of the OPGGS(SL) Act.

incremental cost means the cost worked out under subregulation 14 (2).

inspection has the same meaning as in subsection 6 (8) of the OPGGS(SL) Act.

notifiable accident or occurrence has the same meaning as in subsection 6 (8) of the OPGGS(SL) Act.

operator has the same meaning as in subsection 6 (8) of the OPGGS(SL) Act.

[14] Subregulation 14 (1)

omit each mention of

OPSL Act

insert

OPGGS(SL) Act

[15] Subregulation 16 (1)

omit

OPSL Act

insert

OPGGS(SL) Act

[16] Subregulations 18 (1) and (6)

omit

subsection 150YR (1) of the PSL Act

insert

subsection 686 (1) of the OPGGS Act

[17] Regulation 20, except the note

substitute

20 Definitions for Part 4

  In this Part:

facility has the same meaning as in subsection 7 (8) of the OPGGS(SL) Act.

major revision, in relation to a safety case for a pipeline, means a revision other than a minor revision.

minor revision, in relation to a safety case for a pipeline, means a revision that is treated as a minor revision under subregulation 22A (2).

mobile facility means a facility of a kind mentioned in Schedule 2.

operator has the same meaning as in subclause 5 (1) of Schedule 3 to the OPGGS Act.

pipeline has the same meaning as in section 7 of the OPGGS Act.

pipeline licensee has the meaning given by section 7 of the OPGGS Act.

proposed facility has the same meaning as in clause 3 of Schedule 3 to the OPGGS Act.

safety case in force in relation to a facility has the same meaning as in subsection 7 (8) of the OPGGS(SL) Act.

variable-rating facility means a facility mentioned in item 2 of the table in item 2.3 of Schedule 1.

[18] Regulation 20, note

omit

subsection 7 (8) of the OPSL Act

insert

subsection 7 (8) of the OPGGS(SL) Act

[19] Regulation 20, note

omit

Paragraph 7 (1) (b) of the OPSL Act

insert

Subsection 7 (1) of the OPGGS(SL) Act

[20] Subregulation 21 (1)

omit

OPSL Act

insert

OPGGS(SL) Act

[21] Subregulation 21 (1)

after

on a safety case

insert

for a facility other than a pipeline

[22] After subregulation 21 (1)

insert

 (1A) For subsections 7 (4) and (5) of the OPGGS(SL) Act, and subject to subregulation (4), the amount of safety case levy imposed on a safety case for a facility that is a pipeline is the sum of:

 (a) the SMS amount; and

 (b) the pipeline amount for each pipeline in relation to which the safety case is in force;

as worked out using Schedule 3.

Note 1   Schedule 3 ensures that the licensee of a pipeline licence will pay only 1 SMS amount per pipeline safety case in any 1 year, whether:

(a) the licensee holds a licence for more than 1 pipeline; or

(b) the licensee holds a licence for a pipeline or pipelines which are located in Commonwealth waters, designated coastal waters or both.

Note 2   Regulation 4 ensures that levy in relation to a pipeline that is located in both designated coastal waters and Commonwealth waters is payable in relation to 1 of those waters.

[23] Subregulation 21 (2)

omit

OPSL Act

insert

OPGGS(SL) Act

[24] Subregulation 21 (3)

omit

OPSL Act

insert

OPGGS(SL) Act

[25] After subregulation 21 (3)

insert

 (4) For subsections 7 (4) and (5) of the OPGGS(SL) Act, if:

 (a) the safety case for a pipeline is in force at the start of a year; and

 (b) no major revision of the safety case came into force during the previous year;

the amount of safety case levy imposed on the safety case is zero.

[26] Subregulation 22 (1)

omit

OPSL Act

insert

OPGGS(SL) Act

[27] Subregulation 22 (1)

after

amounts of quarterly

insert

or yearly

[28] Subregulation 22 (1)

after each mention of

operator

insert

or licensee

[29] Subregulation 22 (2)

substitute

 (2) If the amounts paid by way of quarterly or yearly instalments during a year or part of a year are inadequate, or will be inadequate, to recover the whole of the levy payable by the operator or licensee in relation to a safety case for a facility for a year or part of a year:

 (a) the Safety Authority must notify the operator or licensee, in writing, of:

 (i) the amount of the shortfall in the instalments; and

 (ii) the operator’s or licensee’s obligation under this subregulation to pay the shortfall; and

 (b) the operator or licensee must pay an amount equal to the amount of the shortfall; and

 (c) the amount is due and payable 30 days after the Safety Authority notifies the operator or licensee under paragraph (a).

[30] After regulation 22

insert

22A Coming into force, and revisions, of a safety case for a pipeline

When a safety case for a pipeline, or a revision of a safety case, comes into force

 (1) A safety case for a pipeline, or a revision of a safety case, is taken to come into force when the Safety Authority accepts the safety case or the revision.

When a revision of a safety case is a minor revision

 (2) The Safety Authority may determine, in writing, that a revision of a safety case for a pipeline is a minor revision.

 (3) The Safety Authority may make a determination with or without a request by the licensee of the pipeline licence.

Notification of decision

 (4) If the Safety Authority determines that a revision is a minor revision, the Safety Authority must notify the licensee of the pipeline licence, in writing, of the decision.

 (5) If the Safety Authority refuses to make a determination at the request of the licensee of the pipeline licence:

 (a) the Safety Authority must notify the licensee of the pipeline licence, in writing, of the decision and the reasons for the decision; and

 (b) if the decision was made by a delegate of the CEO, the notice must also state that the licensee of the pipeline licence may apply for review of the decision by the CEO within 30 days after the Safety Authority notifies the operator.

Review of decision

 (6) If the licensee of the pipeline licence applies to the CEO for a review of a decision by a delegate of the CEO to refuse to make a determination at the request of the licensee of the pipeline licence, the CEO must, as soon as practicable:

 (a) review the decision; and

 (b) notify the licensee of the pipeline licence, in writing, of:

 (i) the decision; and

 (ii) if the CEO confirms the refusal to make a determination — the reasons for the decision.

[31] Regulation 23

substitute

23 When safety case levy is due and payable

 (1) For subsection 687 (3) of the OPGGS Act, this regulation sets out when safety case levy is payable in relation to a facility.

 (2) Safety case levy is due and payable:

 (a) if the facility is not a pipeline — in quarterly instalments; or

 (b) if the facility is a pipeline — in annual instalments;

in accordance with the following table.

Note   The Safety Authority may be required to adjust the amount of safety case levy under regulation 26 to ensure that the correct amount of levy is paid. An adjustment may be necessary because the unit value for the facility has been reduced during the year, or the facility’s applicable facility rating has changed during the year.

[32] Regulation 24, heading

substitute

24 Notifying when safety case levy is due and payable

[33] Subregulation 24 (1)

substitute

 (1) For subsection 687 (3) of the OPGGS Act, the Safety Authority must notify in writing an operator or a licensee of:

 (a) the amount of each instalment of safety case levy that will be due and payable in a year in respect of the facility; and

 (b) when each instalment will be payable;

in accordance with the following table.

[34] Subregulation 25 (1)

omit

For subsections 150YS (1) and (2) of the PSL Act

insert

For subsections 687 (1) and (2) of the OPGGS Act

[35] Paragraph 25 (1) (b)

omit

OPSL Act

insert

OPGGS(SL) Act

[36] Subregulation 25 (3)

omit each mention of

the sum of 2 whole quarter amounts

insert

1 quarterly instalment

[37] Subregulation 25 (5)

omit

the sum of 2 quarterly instalments

insert

1 quarterly instalment

 [38] Regulation 26

after each mention of

operator

insert

or licensee

[39] Regulation 28, except the note

substitute

28 Definitions for Part 5

  In this Part:

facility has the same meaning as in subsection 8 (8) of the OPGGS(SL) Act.

major revision, in relation to a safety case for a pipeline, means a revision other than a minor revision.

minor revision, in relation to a safety case for a pipeline, means a revision that is treated as a minor revision under subregulation 22A (2).

mobile facility means a facility of a kind mentioned in Schedule 2.

operator has the same meaning as in subsection 8 (8) of the OPGGS(SL) Act.

pipeline has the same meaning as in section 7 of the OPGGS Act.

pipeline licensee has the meaning given by section 7 of the OPGGS Act.

proposed facility has the same meaning as in subsection 8 (8) of the OPGGS(SL) Act.

safety case in force in relation to a facility has the same meaning as in subsection 8 (8) of the OPGGS(SL) Act.

variable-rating facility means a facility mentioned in item 2 of the table in item 2.3 of Schedule 1.

[40] Regulation 28, note

omit

subsection 8 (8) of the OPSL Act

insert

subsection 8 (8) of the OPGGS(SL) Act

[41] Regulation 28, note

omit

Paragraph 8 (1) (b) of the OPSL Act

insert

Subsection 8 (1) of the OPGGS(SL) Act

[42] Subregulation 29 (1)

omit

OPSL Act

insert

OPGGS(SL) Act

[43] Subregulation 29 (1)

after

on a safety case

insert

for a facility other than a pipeline

[44] After subregulation 29 (1)

insert

 (1A) For subsections 8 (4) and (5) of the OPGGS(SL) Act, and subject to subregulation (4), the amount of safety case levy imposed on a safety case for a facility that is a pipeline, is the sum of:

 (a) the SMS amount; and

 (b) the pipeline amount for each pipeline in relation to which the safety case is in force;

as worked out using Schedule 3.

Note 1   Schedule 3 ensures that the licensee of a pipeline licence will pay only 1 SMS amount per pipeline safety case in any 1 year, whether:

(a) the licensee holds a licence for more than 1 pipeline; or

(b) the licensee holds a licence for a pipeline or pipelines which are located in Commonwealth waters, designated coastal waters or both.

Note 2   Regulation 4 ensures that levy in relation to a pipeline that is located in both designated coastal waters and Commonwealth waters is payable in relation to 1 of those waters.

[45] Subregulation 29 (2)

omit

OPSL Act

insert

OPGGS(SL) Act

[46] Subregulation 29 (3)

omit

OPSL Act

insert

OPGGS(SL) Act

[47] After subregulation 29 (3)

insert

 (4) For subsections 8 (4) and (5) of the OPGGS(SL) Act, if:

 (a) the safety case for a pipeline is in force at the start of a year; and

 (b) no major revision of the safety case came into force during the previous year;

the amount of safety case levy imposed on the safety case is zero.

[48] Subregulation 30 (1)

omit

OPSL Act

insert

OPGGS(SL) Act

[49] Subregulation 30 (1)

after

amounts of quarterly

insert

or yearly

[50] Subregulation 30 (1)

after each mention of

operator

insert

or licensee

[51] Subregulation 30 (2)

substitute

 (2) If the amounts paid by way of quarterly or yearly instalments during a year or part of a year are inadequate, or will be inadequate, to recover the whole of the levy payable by the operator or licensee in relation to a safety case for a facility for a year or part of a year:

 (a) the Safety Authority must notify the operator or licensee, in writing, of:

 (i) the amount of the shortfall in the instalments; and

 (ii) the operator’s or licensee’s obligation under this subregulation to pay the shortfall; and

 (b) the operator or licensee must pay an amount equal to the amount of the shortfall; and

 (c) the amount is due and payable 30 days after the Safety Authority notifies the operator or licensee under paragraph (a).

[52] After regulation 30

insert

30A Coming into force, and revisions, of a safety case for a pipeline

When a safety case for a pipeline, or a revision of a safety case, comes into force

 (1) A safety case for a pipeline, or a revision of a safety case, is taken to come into force when the Safety Authority accepts the safety case or the revision.

When a revision of a safety case is a minor revision

 (2) The Safety Authority may determine, in writing, that a revision of a safety case for a pipeline is a minor revision.

 (3) The Safety Authority may make a determination with or without a request by the licensee of the pipeline licence.

Notification of decision

 (4) If the Safety Authority determines that a revision is a minor revision, the Safety Authority must notify the licensee of the pipeline licence, in writing, of the decision.

 (5) If the Safety Authority refuses to make a determination at the request of the licensee of the pipeline licence:

 (a) the Safety Authority must notify the licensee of the pipeline licence, in writing, of the decision and the reasons for the decision; and

 (b) if the decision was made by a delegate of the CEO, the notice must also state that the licensee of the pipeline licence may apply for review of the decision by the CEO within 30 days after the Safety Authority notifies the operator.

Review of decision

 (6) If a licensee of the pipeline licence applies to the CEO for review of a decision by a delegate of the CEO to refuse to make a determination at the request of the licensee of the pipeline licence, the CEO must, as soon as practicable:

 (a) review the decision; and

 (b) notify the licensee of the pipeline licence, in writing, of:

 (i) the decision; and

 (ii) if the CEO confirms the refusal to make a determination — the reasons for the decision.

[53] Regulation 31

substitute

31 When safety case levy is due and payable

 (1) For subsection 687 (3) of the OPGGS Act, this regulation sets out when safety case levy is payable in relation to a facility.

 (2) Safety case levy is due and payable:

 (a) if the facility is not a pipeline — in quarterly instalments; or

 (b) if the facility is a pipeline — in annual instalments;

in accordance with the following table.

Note   The Safety Authority may be required to adjust the amount of safety case levy under regulation 34 to ensure that the correct amount of levy is paid. An adjustment may be necessary because the unit value for the facility has been reduced during the year, or the facility’s applicable facility rating has changed during the year.

[54] Regulation 32, heading

substitute

32 Notifying when safety case levy is due and payable

[55] Subregulation 32 (1)

substitute

 (1) For subsection 687 (3) of the OPGGS Act, the Safety Authority must notify in writing an operator or a licensee of:

 (a) the amount of each instalment of safety case levy that will be due and payable in a year in respect of the facility; and

 (b) when each instalment will be payable;

in accordance with the following table.

[56] Subregulation 33 (1)

omit

For subsections 150YS (1) and (2) of the PSL Act

insert

For subsections 687 (1) and (2) of the OPGGS Act

[57] Paragraph 33 (1) (b)

omit

OPSL Act

insert

OPGGS(SL) Act

[58] Subregulation 33 (3)

omit

the sum of 2 whole quarter amounts

insert

1 quarterly instalment

[59] Subregulation 33 (5)

omit

the sum of 2 quarterly instalments

insert

1 quarterly instalment

[60] Regulation 34

after each mention of

operator

insert

or licensee

[61] Part 6

substitute

Part 6 Safety Authority

36 Fee for assessing safety case

 (1) For section 685 of the OPGGS Act, the fee for the assessment of a safety case in relation to a proposed facility:

 (a) submitted under regulation 28 of the Petroleum (Submerged Lands) Management of Safety on Offshore Facilities) Regulations 1996; or

 (b) submitted under regulations of a State or of the Northern Territory that substantially corresponds to the regulation mentioned in paragraph (a);

is the amount determined by the Safety Authority.

 (2) The amount of the fee must not exceed the total of the costs incurred by the Safety Authority in assessing the safety case.

 (3) The fee is payable:

 (a) by the operator or licensee of the proposed facility; and

 (b) at the time the safety case is submitted to the Safety Authority.

 (4) In this regulation:

proposed facility means a proposed facility (within the meaning of clause 3 of Schedule 3 to the OPGGS Act, or the applicable State or Territory safety law) that is being constructed at a place outside Safety Authority waters.

[62] Parts 7 and 8

omit

[63] Part 9, heading

omit

[64] Regulation 50

relocate as regulation 37 in Part 6

[65] Subregulation 51 (3)

omit

regulation 52

insert

regulation 39

[66] Regulation 51

relocate as regulation 38 in Part 6

[67] Paragraph 52 (2) (c)

omit

regulation 50 and the financial report prepared under regulation 51

insert

regulation 37 and the financial report prepared under regulation 38

[68] Regulation 52

relocate as regulation 39 in Part 6

[69] Schedule 1, heading

substitute

Schedule 1 Facility amount and SMS amount

(subregulations 21 (1) and 29 (1))

[70] Schedule 1, clause 2.3

substitute

 2.3 The applicable facility rating for a facility described in an item in the following table is:

 (a) the number set out in the item; or

 (b) if both offshore petroleum operations and offshore greenhouse gas storage operations occur on the facility — the number set out in the item plus 2 points.

[71] Schedule 1, clause 2.3, table, item 1

omit

production

[72] Schedule 1, clause 2.3, table, item 1

omit

9

insert

12

[73] Schedule 1, clause 2.3, table, item 2

omit

production

[74] Schedule 1, clause 2.3, table, item 5

substitute

[75] Schedule 1, clause 2.3, table, item 7

after

production

insert

or injection

[76] Schedule 1, clause 2.6

omit

$25 000

insert

$26 000

[77] Schedule 1, clause 3.1

omit each mention of

OPSL Act

insert

OPGGS(SL) Act

[78] Schedule 2, clause 2

after

petroleum

insert

or a greenhouse gas substance

[79] Schedule 2, clause 3, note

omit

OPSL Act

insert

OPGGS(SL) Act

[80] Schedule 3, heading

substitute

Schedule 3 Pipeline amount and SMS amount

(subregulations 21 (1A) and 29 (1A))

[81] Schedule 3, clause 2.2, note

omit

pipeline management safety plan

insert

safety case

1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.