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2019-2021
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT
(FIGHT FOR AUSTRALIA'S COASTLINE) BILL 2021
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Whish-Wilson)
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT
(FIGHT FOR AUSTRALIA'S COASTLINE) BILL 2021
OUTLINE
The Offshore Petroleum and Greenhouse Gas Storage Amendment (Fight for Australia's
Coastline) Bill 2021 (the Bill) proposes changes to the Offshore Petroleum and Greenhouse
Gas Storage Act 2006 (Cth) (OPGGS Act) that would cancel Petroleum Exploration Permit
11 in the Sydney Basin (PEP11), T/49P at King Island (King Island), prohibit the granting of
any application for V21-3 at the Otway Basin (Otway Basin) and prohibit any future
petroleum exploration or exploitation in these three areas.
We need to stop the expansion of offshore drilling operations in our oceans. Pollution from
burning fossil fuels is the primary cause of the climate crisis, and marine life is put in danger
by the use of sonic air guns. Coastal economies depend on healthy sea waters, and seismic
testing is a threat to our fishing communities.
Despite the increasing pressure on governments to act on fossil fuel induced global heating,
the Australian government announced acreage releases in multiple areas of Commonwealth
waters. These include off the coast of King Island, and the Otway Basin.
This bill delivers protection to the Australian oceans, biodiversity, and local economies of
multiple communities across Australia. Furthermore, the bill is consistent with the realities of
the responsibility of the government, to protect Australians from the impact of the climate
crisis and fossil-fuel related ventures that increase the public health risk.
The regulatory framework for petroleum exploration and recovery is covered by the OPGGS
Act. The National Offshore Petroleum Titles Administrator manages offshore oil and gas
exploration, and storage titles.
The 'Joint Authority' is the decision maker under the OPGGS Act. Where decisions are to be
made under the Act in relation to the offshore area of a State, the Joint Authority comprises
the responsible State minister and the responsible Commonwealth Minister. The responsible
Commonwealth Minister is the final decision maker. The Joint Authority's functions include
but are not limited to the grant/refusal of offshore petroleum titles, variation, suspension and
extension of title conditions, and renewal, surrender and cancellation of titles.
Under the OPGGS Act, subsection 99(1) petroleum exploration permits are granted by the
Joint Authority. Subsection 102(1) and sections 121-122A allow for the grant to be for an
initial period of six years and may be renewed for a maximum of two five-year periods, or
additional periods, depending on specific circumstances. Subsection 275(1) allows for the
Joint Authority to cancel a permit, with the grounds for cancellation set out in section 274.
The three areas covered by this bill are: (1) Otway Basin (V/21-3), (2) King Island (T/49P),
and (3) Sydney Basin (PEP11).
Area 1 - Otway Basin: this area was included in the National Offshore Petroleum Titles
Administrator's Notice of Invitation for Work Program Petroleum Exploration Permit
Application (that is, a release of acreage) on 24 June 2021. Applicants have until 3 March
2022 to submit an application proposing a work program. The areas included in the release of
acreage are nominated by offshore petroleum industry stakeholders.
Area 2 - King Island: ConocoPhillips Australia SH1 Pty Ltd, in an 80-20 joint venture
partnership with 3D Oil T/49P Pty Ltd, holds an exploration permit for this area. The current
permit is due to expire on 21 August 2024. The permit covers 73 blocks over an area of
4,689.58 km.
The titleholders also hold a number of related Petroleum Access Authorities (T-05-AA, VIC-
24-AA); both were granted on 9 August 2021, for a period of 180 days, for the purpose of
conducting the Sequoia 3D Marine Seismic Survey.
Area 3 - Sydney Basin: Asset Energy Pty Ltd (a wholly owned subsidiary of Advent Energy
Pty Ltd), in an 85-15 joint venture partnership with Bounty Oil & Gas NL, holds an
exploration permit for this area. The petroleum exploration permit (PEP) was first granted on
24 June 1999 and has been subject to a number of suspensions and extensions. The permit
was renewed 13 August 2012, at which time the scope of the PEP was reduced from 129
whole or part blocks to 64 whole or part blocks over an area of 4,575.41 km2. The OPGGS
Act (sections 122-124) provides limits on the renewal of petroleum exploration permits
which essentially result in the halving of the permitted exploration area.
On 8 January 2018 the permit holders were granted a suspension of compliance with permit
obligations and extension of the term of the permit for 30 months, resulting in an expiry date
of 12 February 2021. However, on 23 January 2020, Asset Energy submitted an application
for a further suspension, extension and variation, and on 4 February 2021 submitted a second
application for a further suspension and extension. These applications do not appear to be
publicly available and are yet to be determined by the Joint Authority.
BACKGROUND ON SEISMIC TESTING
The New Zealand government has banned all new seismic testing and oil and gas drilling off
its coasts. Denmark, the EU's largest oil producer, has also announced a transition to do the
same, phasing out offshore oil and gas drilling by 2050. There is a very active debate in the
US, where similar legislation has been introduced, and other nations.
This legislation follows on from the Making Waves inquiry undertaken by the Environment
and Communications References Committee, completed in June 2021. The committee heard
an abundance of evidence detailing the risks to our oceans and fisheries from ongoing oil and
gas exploration.
No witness disputed that seismic testing is potentially harmful and under-researched: what
was in dispute was whether this harm was material enough to require more research, tougher
regulation, operational changes, compensation schemes or a moratorium/ban on new seismic
surveying.
A principle of ecologically sustainable development is that if there are threats of serious or
irreversible environmental damage, lack of full scientific certainty should not be used as a
reason for postponing measures to prevent environmental degradation (the 'precautionary
principle').
The Australian community expects the precautionary principle to be applied in favour of the
environment, not in favour of exploration and commercial interests, and be applied to any
reasonable threat of environmental damage, not just a threat of serious or irreversible
environmental damage.
For the first time ever, evidence from all stakeholders came together, from both the fishing
and the oil and gas industries to environmental NGOs, governments, scientists, academics,
and community groups.
Testimony to the committee demonstrated what has become a David and Goliath stand-off,
with a handful of multinational oil and gas industry giants on one side, and multi-generational
local fishing communities and ocean lovers on the other.
This Bill will ensure that:
• PEP11 and King Island cease to be in force two months after royal assent to this Bill;
• with no permit to cancel, applications for the Otway Basin will simply be prohibited
from consideration;
• the Joint Authority cannot consider or continue to consider an application for PEP11
or King Island including any that are currently before the Joint Authority;
• the Joint Authority cannot invite applications for the grant of petroleum exploration
permit or petroleum exploration license over PEP11, King Island or Otway Basin
blocks; and
• the Joint Authority or Titles Administrator cannot grant petroleum retention leases,
petroleum exploration permits, petroleum special prospecting authorities, petroleum
access authorities, petroleum production licenses, infrastructure licenses, pipeline
licenses, and petroleum scientific investigation consents.
NOTES ON CLAUSES
Clause 1: Short Title
1. This clause specifies the short title of the Bill as the Offshore Petroleum and
Greenhouse Gas Storage Amendment (Fight for Australia's Coastline) Act 2021.
Clause 2: Commencement
2. This clause provides for the commencement of the Act on the day it receives Royal
Assent.
Clause 3: Schedules
3. Each Act specified in a Schedule to this Act is amended or repealed as is set out in the
applicable items in the Schedule. Any other item in a Schedule to this Act has effect
according to its terms.
Schedule 1--Amendments
Offshore Petroleum and Greenhouse Gas Storage Act 2007
Item 1--At the end of Part 2.14
4. This item adds section 286D, section 286E and section 286F to the Offshore
Petroleum and Greenhouse Gas Storage Act 2007.
286D Prohibition on exploration - Sydney Basin
5. Subsection (1) provides that PEP11 ceases to be in force 2 months after this section
commences.
6. Subsections (2), (3) and (4) prevent the Joint Authority from inviting, considering or
continuing to consider a PEP11 application that has not been finally determined as at the date
of commencement of the provision.
7. These subsections are designed to ensure that if, as at the date of commencement of
the provision, the Joint Authority has not decided the titleholders' two extant applications for
suspension of conditions and extension of PEP11, then it must not continue considering those
applications. These provisions are designed to work with subsections (5) and (6), which
would prevent the Joint Authority from granting the aforementioned applications for
suspension and extension, as well as any other applications for suspension and extension
relating to PEP11.
8. Paragraph (5)(a) prohibits the Joint Authority and Titles Administrator from granting
any of the permits, consents, authorities, leases and licences provided for by Ch 2 of the
OPGGS Act, in any part of the area that has been subject to PEP11 (including when PEP11
was in force by virtue of the now-repealed Petroleum (Submerged Lands) Act 1967 (Cth)).
9. Paragraph (5)(b) prohibits the Joint Authority from renewing, varying or suspending a
condition of any offshore petroleum titles (i.e. the permits, consents, authorities, leases and
licences provided for by Ch 2 of the Act) in a PEP11 block. If the two current applications for
suspension and extension made by the titleholder in relation to PEP11 remain extant as at the
date of this provision coming into force, the provision would prevent the Joint Authority from
granting those applications.
10. Subsection (6) ensures that the prohibitions in subsection (5) apply notwithstanding
that the titleholder may have applied for the grant, renewal, variation or suspension before the
provision's commencement.
11. Subsection (7) defines the terms "earlier PEP11"; "PEP11", "PEP11 application" and
"PEP11 block". The definitions interact to ensure that the prohibitions effected by subsection
(4) apply in any area that has ever been subject to PEP11.
286E Prohibition on exploration - King Island
12. Subsection (1) provides that T/49P ceases to be in force 2 months after this section
commences.
13. Subsections (2), (3) and (4) prevent the Joint Authority from inviting, considering or
continuing to consider a T/49P application that has not been finally determined as at the date
of commencement of the provision.
14. These sections are designed to ensure that if, as at the date of commencement of the
provision, the Joint Authority has not decided any applications for suspension of conditions
and extension of T/49P, then it must not continue considering those applications. These
provisions are designed to work with subsections (5) and (6), which would prevent the Joint
Authority from granting any applications for suspension and extension relating to T/49P.
15. Paragraph (5)(a) prohibits the Joint Authority and Titles Administrator from granting
any of the permits, consents, authorities, leases and licences provided for by Ch 2 of the
OPGGS Act, in any part of the area that has been subject to T/49P.
16. Paragraph (5)(b) prohibits the Joint Authority from renewing, varying or suspending a
condition of any offshore petroleum titles (i.e. the permits, consents, authorities, leases and
licences provided for by Ch 2 of the Act) in a T/49P block.
17. Subsection (6) ensures that the prohibitions in subsection (5) apply notwithstanding
that the titleholder may have applied for the grant, renewal, variation or suspension before the
provision's commencement.
18. Subsection (7) defines the terms "T/49P", "T/49P application" and "T/49P block".
The definitions interact to ensure that the prohibitions effected by subsection (4) apply in any
area that has ever been subject to T/49P.
286F Prohibition on exploration - 12 Apostles
19. Subsections (1), (2) and (3) prevent the Joint Authority from inviting, considering or
continuing to consider a V21-3 application that has not been finally determined as at the date
of commencement of the provision.
20. These subsections are designed to ensure that if, as at the date of commencement of
the provision, the Joint Authority has not finally determined any relevant applications, then it
must not continue considering those applications.
21. Paragraph (4)(a) prohibits the Joint Authority and Titles Administrator from granting
any of the permits, consents, authorities, leases and licences provided for by Ch 2 of the
OPGGS Act, in any part of the area that has been subject to V21-3.
22. Paragraph (4)(b) prohibits the Joint Authority from renewing, varying or suspending a
condition of any offshore petroleum titles (i.e. the permits, consents, authorities, leases and
licences provided for by Ch 2 of the Act) in a V21-3 block.
23. Subsection (5) ensures that the prohibitions in subsection (4) apply notwithstanding
that an applicant may have applied for the grant, renewal, variation or suspension before or
after the provision's commencement.
24. Subsection (6) defines the terms "V21-3", "V21-3 application" and "V21-3 block".
The definitions interact to ensure that the prohibitions effected by subsection (3) apply in any
area that has ever been subject to V21-3.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Offshore Petroleum and Greenhouse Gas Storage Amendment (Fight for Australia's
Coastline) Bill 2021
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
This Bill will ensure that:
• PEP11 and King Island cease to be in force two months after royal assent to this Bill;
• with no permit to cancel, applications for the Otway Basin/12 Apostles blocks will
simply be prohibited from consideration.
• the Joint Authority cannot consider or continue to consider an application for PEP11
or Kind Island including any that are currently before the Joint Authority;
• the Joint Authority cannot invite applications for the grant of petroleum exploration
permit or petroleum exploration license over PEP11, King Island or Otway Basin/12
Apostles blocks; and
• the Joint Authority or Titles Administrator cannot grant petroleum retention leases,
petroleum exploration permits, petroleum special prospecting authorities, petroleum
access authorities, petroleum production licenses, infrastructure licenses, pipeline
licenses, and petroleum scientific investigation consents.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms, other than to promote the
safety and wellbeing of people by helping to ensure a safe climate and protect biodiversity.
This bill engages the following human rights:
● The right to life, enshrined in Article 6(1) of the International Covenant on Civil and
Political Rights;
● The right to an adequate standard of living under Article 11(1) of the International
Covenant on Economic, Social and Cultural Rights;
● The right to health under Article 12(1) of the International Covenant on Economic,
Social and Cultural Rights;
● The right to self-determination as enshrined in Article 1 of both the International
Covenant on Civil and Political Rights, and the International Covenant on Economic,
Social and Cultural Rights;
● A child's inherent right to life under Article 6(1) of the Convention on the Rights of
the Child (CRC) along with a child's right to the highest attainable standard of health
under Article 24(1) of the CRC and Article 27(1) of the CRC which preserves the
rights of the child to an adequate standard of living which promotes their
development.
The climate and biodiversity crises are human rights crises. Fossil fuel mining, its subsequent
greenhouse gas emissions, and harmful impact on oceanic life, represent a clear and present
danger to the promotion and protection of human rights, including the right to life, health,
food, water and housing.
Under current Australian law, the government has a duty of responsibility to prevent harm or
injury to children arising from climate crisis. This duty extends to any future fossil fuel
project, where it is reasonable to conclude that the project will significantly increase
greenhouse gas emissions, and increase the risk of harm or death to children.
Climate crisis is a clear and present threat to human life, contributing to increasing extreme
weather events such as heatwaves, droughts, bushfires and flood. These events generate
conditions that threaten lives and the safety of communities. Furthermore, the damage to
oceanic biodiversity from seismic testing represents a threat to food security. Without
mitigating and adapting to these impacts, it is likely further deaths will occur, and human
health will be undermined.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues except
by promoting safety and security of human life by minimising climate damage.
Senator Whish-Wilson