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2019-2020
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT
(BENEFIT TO AUSTRALIA) BILL 2020
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Hanson)
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE
AMENDMENT (BENEFIT TO AUSTRALIA) BILL 2020
OUTLINE
This Bill seeks to broaden the objects clause of the Offshore Petroleum and Greenhouse Gas
Storage Act 2006 to make the benefit of the Australian community a guiding principle in the
interpretation of the Act.
Australia has vast reserves of natural resources, including offshore oil and gas. Australia is
also the largest exporter in the world of liquefied natural gas, but these exports have left
Australia short of gas and have made Australia the world's only large gas producer where the
international gas price is lower than the domestic price.
Foreign owned integrated gas businesses currently hoard proven and probable gas leases,
some for more than 30 years, when they could be capitalised on by businesses that are ready
and willing to go into production. Periodically, these long held leases come up for renewal.
The addition to the objects clause should make it more likely that, when these leases come up
for renewal, some will not be renewed and will instead become available to businesses
willing to go into production.
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 establishes the National
Offshore Petroleum Titles Administrator (NOPTA) and the National Offshore Petroleum
Safety and Environmental Management Authority (NOPSEMA), as well as the Joint
Authorities.
The purpose of this Bill is to ensure that NOPTA, NOPSEMA and the Joint Authorities
interpret the Offshore Petroleum and Greenhouse Gas Storage Act 2006 taking into account
the benefit of the Australian Community when granting leases
NOTES ON CLAUSES
Clause 1:
1. This is a formal provision specifying the short title of the Bill is the Offshore
Petroleum and Greenhouse Gas Storage Amendment (Benefit to Australia) Bill 2020.
Clause 2: Commencement
2. This Bill would commence on the day after it receives the Royal Assent.
Clause 3: Schedules
4. This clause gives effect to Schedule 1.
Schedule 1--Amendments
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Item 1--Section 3
5. Item 1 would repeal the objects clause in section 3 of the Offshore Petroleum and
Greenhouse Gas Storage Act 2006 and replace it with an expanded objects clause that
would also make ensuring that the exploitation of offshore petroleum and greenhouse
gas substances is for the benefit of the Australian community a purpose of the Act.
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 (Benefit to Australia)
Bill 2020
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
The purpose of the Bill is to ensure the legislation is interpreted with the benefit of the
Australian community in mind.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Senator Hanson