Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This b ill amends provisions in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 (the Regulatory Levies Act) relating to the imposition of annual titles administration levy and environment plan levy.

The amendments in relation to annual titles administration levy aim to ensure that the National Offshore Petroleum Titles Administrator is able to fully cost-recover its activities undertaken in relation to titles under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the OPGGSA). Currently, levy is imposed for each year of the term of a petroleum or greenhouse gas title. A year of the term is defined by the OPGGSA as a period of one year beginning on the day on which the title comes into force or any anniversary of that day.

However, in certain circumstances, a title may remain in force for a period of less than one year. This may include, for example, when the term of an exploration permit or rete ntion lease is extended by the j oint a uthority following an application made by the titleholder resulting in a decision to suspend or exempt a titleholder from compliance with any of the conditions to which the permit or lease is subject. In this and other circumstances resulting from applications made by the titleholder, a ' part year ' in the life of the title may be created —in other words not a neat 12 - month period.

Although there may be less than 12 months remaining in the life of the term of a title, the Titles Administrator is still required to conduct administration activities in relation to that title. To ensure the Titles Administrator is fully cost-recovered for its activities, this b ill amends the Regulatory Levies Act to ensure that annual titles administration levy is imposed for a year of the term of a title, even if the title does not remain in force for the full year.

I have also introduced supporting consequential amendments to the OPGGSA to insert a regulation-making power to allow for a refund or remittal of levy, as appropriate, in the event that the title is not in force for a full year. Regulations to be made under this power will ensure the Titles Administrator receives sufficient levy to cost-recover its functions in relation to titles while a title is in force, but that titleholders are not required to pay levy in relation to periods during which the title is not in force.

The a mendments made by this b ill in relation to environment plan levy take account of recent amendments to the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009 (the Environment Regulations), which enable an applicant for a petroleum access authority, a petroleum special prospecting authority, a pipeline licence, a greenhouse gas search authority or a greenhouse gas special authority to submit an environment plan to the National Offshore Petroleum Safety and Environmental Management Authority.

Environment plan levy is currently imposed on submission of an environment plan, or a revision of an environment plan, under the Environment Regulations, where the activities to which the plan relates are authorised by one or more titles. The amendments to the Regu latory Levies Act made by this b ill will impose levy on submission of an environment plan where the plan is submitted by an applicant for a title.

The b ill also amends the Regulatory Levies Act to ensure that environment plan levy is imposed on submission of an environment plan, or revision of an environment plan, where the activities to which the plan relates will be carried out under a petroleum scientific investigation consent or a greenhouse gas research consent. Recent amendments to the Environment Regulations have clarified that the holder of a consent is required to have an accepted environment plan prior to carrying out a petroleum or greenhouse gas activity under the consent. Extending the application of the levy will ensure National Offshore Petroleum Safety and Environmental Management Authority can recover its costs of assessing the environment plan and on-going compliance activities undertaken in relation to the activities carried out under the plan.

Appropriate cost-recovery by both the National Offshore Petroleum Safety and Environmental Management Authority and the National Offshore Petroleum Titles Administrator is critical to ensure that these entities are resourced to effectively administer the offshore petroleum regime.

Debate adjourned.