Karen Andrews (McPherson, Liberal Party, Parliamentary Secretary to the Minister for Industry and Science) Share this | Hansard source

I thank the previous speakers for their contribution to this debate. In summing up, I will address each bill commencing with the Offshore Petroleum and Greenhouse Gas Storage Amendment (Miscellaneous Measures) Bill. The Commonwealth government announced in February 2014 a new streamlined approach for environmental approvals for offshore petroleum activities, making the National Offshore Petroleum Safety and Environmental Management Authority, NOPSEMA, the sole environmental regulator for these activities in Commonwealth waters. This approach has significantly increased regulatory efficiency in respect of petroleum activities in Commonwealth waters and continues to deliver clarity and certainty for industry participants.

Recognising these significant gains, the Commonwealth government is seeking to streamline regulatory arrangements in respect of all offshore petroleum activities. As part of this process, the Commonwealth is encouraging the states and the Northern Territory to confer functions and powers relating to matters of occupational health and safety, structural integrity and environmental management upon NOPSEMA in relation to those waters of the sea falling within their respective jurisdictions. However, the Offshore Petroleum and Greenhouse Gas Storage Act in its present iteration includes a number of legislative impediments to conferral. Therefore, this bill amends the act to permit conferral by the states and the Northern Territory across as wide as possible geographic area. This represents an important step towards the establishment of a single national regulator for all safety, structural integrity and environmental management matters in Commonwealth and coastal waters. It also underscores this government's ongoing commitment to maintaining and improving Australia's regulatory framework for offshore petroleum activities.

The bill also makes a number of technical amendments to the administrative framework relating to the taking of eligible voluntary actions by multiple title holders under the act and regulations in response to issues identified as a result of the implementation of the current framework. These amendments will clarify the operation of the process relating to the taking of eligible voluntary actions and provide an alternative option for multiple holders of a single title to take eligible voluntary actions.

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Designated Coastal Waters) Bill makes consequential amendments to the Offshore Petroleum and Greenhouse Gas Storage Regulatory Levies Act 2003—the levies act. These amendments are necessary as a result of the Offshore Petroleum and Greenhouse Gas Storage Amendment (Miscellaneous Measures) Bill 2014, which expands the geographical scope of the definition of designated coastal waters in the Offshore Petroleum and Greenhouse Gas Storage Act 2006, the OPGGS Act, to facilitate the conferral of powers and functions upon NOPSEMA by the states and the Northern Territory in respect of all waters of the sea landward of the Commonwealth offshore area. The levies act, which recovers NOPSEMA's costs associated with its regulatory activities, defines designated coastal waters to have the same meaning as under the OPGGS Act. Expanding the geographic coverage of designated coastal waters under the OPGGS Act will therefore consequentially extend the area in respect of which levies might be imposed. To avoid the possibility of this extension resulting in the imposition of taxation that discriminates between the states, or parts thereof, on the basis of geographic location, this bill amends the levies act to limit the operation of the levy regime to the area constituted by the existing definition of designated coastal waters.

T he Offshore Petroleum and Greenhouse Gas Storage Amendment (Miscellaneous Matters) Bill 2015 makes amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006, the act, to (1) ensure security of tenure for titles in Commonwealth waters where the boundary between Commonwealth and state or territory coastal waters changes; (2) ensure that the National Offshore Petroleum Safety and Environmental Management Authority, NOPSEMA, can effectively perform regulatory functions when conferred with such functions under state or Northern Territory legislation; and (3) make technical amendments to further improve the act.

The most significant of these amendments relates to changes to coastal water boundaries. Last year, Geoscience Australia, in accordance with its responsibilities, announced changes to the maritime boundaries between the Commonwealth and Western Australia. This case prompted a closer look at how the offshore petroleum regime protects security of tenure for title holders following a boundary change. Currently, the act provides continuity of state or Northern Territory title over blocks that relocate to Commonwealth waters until that title ceases to be in force. However, once it ceases to be in force there is no present legislative mechanism that provides for the immediate granting of an equivalent title to ensure security of tenure. The government acknowledges that these title holders may have made considerable investments and efforts to obtain that title and conduct exploration activities. Therefore, it is critical that there is continuity of title within Commonwealth waters when the state or Northern territory title ceases.

These proposed amendments provide an automatic statutory grant of an equivalent Commonwealth title over affected blocks that relocate to Commonwealth waters following a boundary change. Considering that Geoscience Australia continues to make efforts to accurately define Australia's maritime boundaries, future boundary changes that affect title holders is a realistic prospect. Accordingly, these amendments will provide the exact certainty that title holders require, as they ensure there is a secure tenure for titles that fall into Commonwealth waters.

This bill builds upon efforts to streamline regulatory arrangements for offshore petroleum activities. The government recognises that streamlining improves regulatory efficiency and provides clarity and certainty for industry participants. To further this agenda, the states and Northern Territory are being encouraged to confer powers and functions on the national regulator, NOPSEMA. To this end, this bill further clarifies the conditions in which conferral can be made and finalises conferral cost-recovery arrangements for NOPSEMA.

This bill proposes some technical amendments to improve the administration of the act. These measures highlight the government's commitment to creating an effective regulatory framework that provides regulatory certainty, enhances investment and enables growth in the offshore petroleum industry.

Finally, the amendments in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Miscellaneous Matters) Bill 2015 are consequential to the Offshore Petroleum and Greenhouse Gas Storage Amendment (Miscellaneous Matters) Bill 2015. This last bill will provide that, where a titleholder holds state or Northern Territory title over blocks that relocate to Commonwealth waters, there will be an automatic statutory grant of an equivalent Commonwealth title over affected blocks when the title of that state or the Northern Territory ceases. Given that cross-boundary titles are granted automatically under the statute instead of by the normal process of releasing acreage and receiving bids by prospective titleholders, when they are an exploration permit these titles will be provided with a specific name to differentiate them from other types of exploration permits.

The National Offshore Petroleum Titles Administrator is responsible for administering offshore petroleum titles and is funded on a full cost recovery basis. The titles administrator will undertake administration and compliance work in relation to an exploration permit granted as a result of a boundary change. That is similar to the work undertaken in relation to existing permits. So this bill amends the levies act to ensure the annual titles administration levy is imposed on a boundary change exploration permit. I commend these bills to the House.

Question agreed to.

Bill read a second time.

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