Richard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

The first point that Senator Milne raised last night related to a requirement for an object clause. There is no legal responsibility or necessity for an object clause, but where there is one it does have an influence on the interpretation of the act and the exercise of discretionary powers under the act. For that reason, it is not possible to include an object clause that represents only one aspect of the purposes for which the act was enacted. Ecological sustainability is not the only purpose for which the Offshore Petroleum Bill 2005 is being enacted. If the proposed object were included, it would be necessary to include a number of other equally important objects that would provide a balanced representation of the purposes for which the Offshore Petroleum Bill is being enacted. It is because of that that these matters are being dealt with by way of regulations.

In relation to the times available to the industry for offshore petroleum titles, there are a range of classifications. I will go through those for you. The exploration permit provides title to an area for the purposes of exploring for petroleum. The initial term is six years, and it can be renewed for a further two terms, each of five years, for a total of 16 years. A retention lease provides title to an area covering a petroleum discovery that is considered by the government to be not currently commercial but likely to become so within the next 15 years. The initial term is five years, and that can be renewed for further terms of five years. There is no limit on the number of renewals, but at the time each renewal application is being considered the commerciality test is applied—that is, the field is not currently commercial but is likely to become commercial over the next 15 years. Then we have the production licence, which provides for the commercial extraction of petroleum. Once granted, production must commence within five years, and then the licence continues in effect indefinitely so long as the field as in production, plus a period of five years.

Prior to the release of an area, and at the time of each renewal application, there are consultations with Commonwealth and state agencies representing stakeholder interests to ascertain other rights and interests in the area. In addition, any work activities planned in a permit or a lease require specific approval, and this process also takes into account the rights and interests of others. An approved environmental plan is a prerequisite for obtaining approval to conduct any work activity. Furthermore, under the EPBC Act there is an obligation on titleholders to refer matters that are likely to affect a matter of national environmental significance.