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- Petroleum and Geothermal Energy Act 2000
- Key Principles of the Act
- Petroleum (Submerged Lands) Act 1982
Onshore petroleum, geothermal and gas storage exploration and development in South Australia is administered by the Energy Resources Division under the Petroleum and Geothermal Energy Act 2000 and associated Regulations.
The Petroleum and Geothermal Energy Act 2000 was proclaimed on 1 October 2009, to replace the repealed Petroleum Act 2000. Since enactment of the Petroleum Act 2000 and Petroleum Regulations 2000 in September 2000, the Energy Resources Division identified a number of opportunities for enhancement relating to both administrative matters and emerging issues in the petroleum and geothermal industry sectors were identified. The subsequent amendment process led to the proclamation of the Petroleum and Geothermal Energy Act 2000 and associated Regulations.
The main features of the Petroleum and Geothermal Energy Act 2000 are:
- Establishment of a co-regulatory regime focused on achieving environmental, public safety and resource management objectives, and reduced compliance costs
- Licence allocation and management mechanisms to facilitate competition in line with competition policy principles
- Rights of third party access to licenced pipelines (where not covered by the national access regime), to depleted reservoirs (for gas storage purposes), and to pipeline easements
- Greater security of tenure for licences through improved registration procedures
- Public consultation processes with regard to establishment of environmental objectives and for significant proposed activities (consistent with provisions of the Development Act 1993)
- Reduced risk to government for liabilities arising from the activities of the industry
- A fee structure designed to encourage the industry to adopt management systems to undertake activities
- Inclusion of an effective and expeditious regulatory and approvals framework applicable to geothermal and gas storage activities.
The Petroleum and Geothermal Energy Act 2000 embraces six key principles of certainty, openness, transparency, flexibility, practicality and efficiency:
The rights conferred by licences are certain and will not be subject to unreasonable change or challenge. Additionally the regulatory objectives and obligations under the regulatory regime are uniform, clear and predictable to all licensees.
Decision-making processes are not exclusive and the legal rights of all stakeholders are not unfairly compromised. This entails the need for fair and equitable processes for the:
- Allocation of title rights
- Managing of rights of other land owners with overlapping land rights
- Managing of rights of title holders to access land for the exploration and development of regulated resources
- Provision of access to natural resources governed by this legislation where surface access within the licence area may be restricted by the sensitivity of the natural environment or other previously established rights
- Stakeholder consultation on the establishment of the environmental protection objectives
- Appeal rights to those affected by decisions made under the legislation
The objects and intent of the regulatory regime are clearly communicated so as to be understood by all stakeholders. Also, stakeholders are provided with the opportunity to input into the development of regulatory objectives.
The decision-making processes are visible and comprehensible to all stakeholders and industry performance in terms of compliance with the regulatory objectives is apparent to all stakeholders.
There is sufficient flexibility in the types of licences that can be granted so as to adequately reflect the purpose of the activities to be undertaken and the stage of development of the resource under the licence.
The level of intervention (including enforcement) needed to ensure compliance is determined on the basis of the individual company being regulated and the outcomes needed to be achieved.
The regulatory objectives are achievable and measurable.
The compliance costs imposed on both government and the licensee by the regulatory requirements are minimised and justified. Distributional effects across society of company negative externalities is minimised and companies remain liable for the costs of such externalities. An appropriate rent is paid to the community of South Australia from the value realised from the exploitation of its natural resources.
In applying the above principles the Act achieves:
- A more effective means for allocating and managing the rights to explore for and develop petroleum and other natural resources so as to facilitate competition
- Greater security of title of petroleum rights through improved registration procedures and greater flexibility in the types of licences that can be granted
- A regulatory regime designed to effectively and efficiently set and achieve environment and public safety protection objectives
- Effective public consultation processes for the establishment of environmental objectives
- An effective means for ensuring that security of production and supply of natural gas is maintained at a prudent level
- Effective public reporting to provide all stakeholders with sufficient information on industry performance and government decision-making
- A flexible regulatory approach which allows the selection of the most appropriate level of regulatory intervention and enforcement in order to ensure compliance with the regulatory objectives
Part 12 of the Petroleum and Geothermal Energy Act 2000 provides for requirements to protect the environment from potential and adverse impacts related to petroleum activities. This includes the need for licensees to prepare a Statement of Environmental Objectives (SEO), based on an Environmental Impact Report (EIR).
The Energy Resources Division produce annual reports of statewide compliance with the Petroleum and Geothermal Energy Act 2000.
Offshore petroleum operations within three nautical miles of the coast and inland waters are administered by the Energy Resources Division under the Petroleum (Submerged Lands) Act 1982 and the Petroleum and Geothermal Energy Act 2000.
Petroleum operations which occur more than 3 nautical miles offshore from the coast are within Commonwealth waters, and are administered by Commonwealth legislation under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and associated regulations. This legislation is administered by the Department of Industry, Innovation and Science, the National Offshore Petroleum Titles Administrator and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
More information on the regulation and approvals process for offshore petroleum activity, including in the Great Australian Bight, can be accessed via https://www.nopsema.gov.au/community-information/
A guide to the Facts about offshore oil and gas exploration in South Australia is available at the Frequently Asked Questions Page.
Note: As of 1 January 2012, the environmental management function of the Commonwealth’s Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009 was transferred from the Department for Energy and Mining (formerly Department of State Development)– as a Delegated Authority under this Act – to the National Offshore Petroleum Safety and Environment Management Authority (NOPSEMA).
The Energy Resources Division undertakes consultation with Government Agencies (including the Department of Environment and Water, the Environment Protection Authority, and where relevant, the Department of Planning, Transport and Infrastructure and SafeWork SA). Administrative Arrangements establish and explain the government consultation protocols and time frames between the Energy Resources Division and the specific agency.
Environment Protection Authority (EPA) Administrative Arrangement between EPA and Energy Resources Division (PDF 640 KB)
Dated 25 June 2012
Department of Environment and Water (formerly DEWNR) Administrative Arrangement between DEWNR and Energy Resources Division (PDF 342 KB)
Dated 11 November 2005
Department of Planning, Transport and Infrastructure (DPTI) Administrative Arrangement between DPTI and Energy Resources Division (PDF 211 KB)
Dated 7 November 2000
National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) Administrative Arrangement between NOPSEMA and the State of South Australia (PDF 847KB)
Dated August 2007
Safework SA (SWSA) Statement of Common Purpose and Joint Operational Guide between Energy Resources Division and Safework SA (PDF 4.26 MB)
Dated 27 February 2014
Note all discrepancies between department names and those described within the individual documents are due to machinery of government changes to departments.
In March 2012, South Australia signed the National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development (NPA). South Australia, Queensland, New South Wales and Victoria and are all signed parties to the NPA.
The Agreement strengthens the regulation of coal seam gas (CSG) and large coal mining by informing decisions with best-available science and advice from the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Developments (IESC).
The IESC aims to improve the collective scientific understanding of the water-related impacts of coal seam gas and large coal mining developments through targeted research and a transparent assessment process. The IESC provides advice on the direct and cumulative impacts of proposed coal seam gas and large coal mining developments across the NPA participating states, allowing a more comprehensive review of potential impacts to water resources, particularly those that cross state boundaries.
Under the Agreement, and in line with the South Australian Protocol all coal seam gas or large coal mining proposals must be referred to the IESC for advice if the proposal is likely to have a significant impact on water resources, either in its own right or cumulatively with other actions. As with other stakeholder consultation, IESC advice informs decision-making on licences and conditions.
To streamline the referrals process and allow for an informed assessment of impacts on water resources, project applications should meet the information requirements in the Information Guidelines for Proposals Relating to the Development of Coal Seam Gas and Large Coal Mines where there is Significant Impact on Water Resources.
For more information, contact:
Director, Engineering Operations
Energy Resources Division
+61 8 8429 2470