Keith Pitt (Hinkler, National Party) Share this | Hansard source

I thank members for their very gracious contributions. The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2016, the bill, will validate certain title extension and renewal decisions made by the Offshore Petroleum and Greenhouse Gas Storage Act 2006, the OPGGS Act.

In Australia, offshore petroleum exploration and development is regulated by a title system, authorising titleholders to carry out petroleum operations in Commonwealth waters. A petroleum title granted under the OPGGS Act is defined as a 'prior usage right' for the purposes of the Environment Protection and Biodiversity Conservation Act 1999, the EPBC Act. If the title was in force immediately before the proclamation of a Commonwealth reserve that overlaps the title area, under the EPBC Act it is stipulated that such a usage right may only be extended or have its term renewed with the consent of the Minister for the Environment. A recently identified administrative oversight, extending back to 2008, led to certain petroleum titles being renewed or extended under the OPGGS Act without the Minister for the Environment's consent being sought, as is required under the EPBC Act. Without legislative amendment, there is a question as to the validity of the relevant extension and renewal decisions made under the OPGGS Act. The amendments proposed in the bill are, therefore, curative measures designed to validate the affected title decisions. Amendments to validate affected decisions are the only way to satisfactorily eliminate the risk of affected divisions posed for title holders.

Despite the aforementioned administrative oversight on affected title decisions, the government is confident that all petroleum titleholders have undertaken their activities in good faith. They have continued to be subject to and compliant with the stringent environmental management requirements set out under the OPGGS Act and environmental regulations. The government is committed to applying international leading practice in the regulation and management of environmental safety and integrity risks associated with offshore petroleum operations.

Question agreed to.

Bill read a second time.

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