Chapter 2 - Offshore Petroleum Amendment (Miscellaneous Measures) Bill 2007
2.1
This bill implements a policy change repealing section 327 of the Offshore
Petroleum Act 2006 which gives the Minister certain emergency powers in the
Bass Strait. It also converts geodetic data references of the area descriptions
in the Act from Australian Geodetic Datum to the current Geocentric Datum of
Australia. Finally, the bill makes technical amendments to the Act.
Background to the Offshore Petroleum Act
2.2
The Offshore Petroleum Act 2006 was a rewrite of the Petroleum
(Submerged Lands) Act 1967, which has been the primary legislation for the
administration of Australia’s offshore petroleum resources for 40 years. The
Petroleum (Submerged Lands) Act had become complex and unwieldy due to its age
and amendments made to it over the years.[1]
The Offshore Petroleum Act made changes to the structure and style of the
Petroleum (Submerged Lands) Act but it sought to implement only a small number
of minor policy adjustments from the previous framework.
2.3
The Offshore Petroleum Act received Royal Assent on 29 March 2006 but
the bulk of its provisions have not yet been proclaimed. This is because the
States and Northern Territory need to amend their mirror legislation before the
Federal legislation can commence. The committee understands that only Western
Australia and Tasmania are still to do this and proclamation is likely to
occur later this year.[2]
The bill
2.4
This section considers the amendments in the bill — the repeal of
section 327, the conversion of data references and the technical amendments.
Emergency declarations—Repeal of
section 327
2.5
Part 5 of the bill repeals section 327 of the Offshore Petroleum Act.
The Explanatory Memorandum describes this amendment as a ‘minor policy change’.
Currently section 327 allows the Minister to exercise emergency powers relating
to terrorist activity in the area to be avoided,[3]
offshore Victoria in the Gippsland Basin.
2.6
The Explanatory Memorandum to the bill states that the repeal of the
section is because a more comprehensive and broader security regime has been
implemented under the Maritime Transport and Offshore Facilities Security
Act 2003.
Datum
2.7
Part 8 of the bill converts the geodetic data references of the area
descriptions in Schedules 1 and 2 of the Offshore Petroleum Act to the current
Geocentric Datum of Australia (known as GDA 94) which is more compatible with
the Global Positioning System (GPS) and will more accurately reflect the
positioning of coordinates.
2.8
A geodetic datum is a mathematical model of the world. The old
Australian Geodetic Datum (AGD 66) was a mathematical model which has been in
place since 1966 and was designed to fit well with the Australian mainland. As
such, its centre was not the centre of the earth. The Geocentric Datum of
Australia 1994 (GDA 94) is a coordinate reference system that best fits the
shape of the earth as a whole. It has an origin that coincides with the centre
of mass of the earth, hence the term 'geocentric'.
2.9
The change in datum means that the same point on the earth now has
slightly different coordinates. The conversion, which is to the accuracy of 2
decimal places of a second of latitude and longitude, will have an almost
negligible effect on the actual position of these points. The Explanatory
Memorandum advises that, on the seabed, this would physically represent no more
than a plus or minus 0.15 of a metre shift. There will also be no impact on
existing titles. Timing and other factors prevented its inclusion into the
original Offshore Petroleum Act.
Technical amendments
2.10
The bill makes the following technical corrections after the rewrite of
the Petroleum (Submerged Lands) Act (PSLA):
- specifying the duration of certain production licences granted
since 1998;
- extending the operation of amendments made to the PSLA by the
'Workchoices' amendments to the Offshore Petroleum Act (OPA);
- ensuring that sea boundaries continue to be determined on the
basis agreed to in the 1979 Offshore Constitutional Settlement;
- amending subsection 142(6) of the OPA to ensure that this
provision applies to both an unvaried application and a varied application;
- ensuring that section 321 of the OPA is an Occupational Health
and Safety (OHS) law only to the extent that section 321 relates to conduct
that affects, or has the potential to affect, the health or safety of members
of the workforce at a facility (within the meaning of Schedule 3 to the OPA);
and
- expanding section 48(1) to allow delegation of powers under the
Regulations.
Evidence received by the Committee
2.11
The committee received one submission, from the Australian Petroleum
Production & Exploration Association Limited (APPEA), in relation to this
bill. APPEA supports the intent of the bill ‘on the basis that [the] amendments
are primarily technical’.[4]
Listed OHS laws
2.12
Section 348 of the Offshore Petroleum Act itemises the 'listed OHS laws'
which are the substantive occupational health and safety laws for which the
regulatory responsibility lies with the National Offshore Petroleum Safety
Authority (NOPSA). The section provides a convenient means by which to refer to
this group of laws within other provisions of the Act.
2.13
Item 22 of the bill replaces paragraph 348(1)(a) of the OPA to correct
an inadvertent technical error whereby the phrase 'that affects, or has the
potential to affect, the health or safety of members of the workforce at a
facility (within the meaning of Schedule 3 of this Act)' was intended to apply
to subparagraphs (i), (ii) and (iii) of paragraph 348(1)(a), but, as it
currently stands, only applies to subparagraph (iii).
2.14
At the committee’s hearing, Senator Webber raised concerns about the
oversight of occupational health and safety issues in the offshore petroleum
industry.[5]
Primarily the Senator was seeking reassurance that there would be no weakening
of occupational health and safety in the offshore petroleum industry and
maritime safety.
2.15
Mr Robert Pegler, General Manager, Offshore Resources Branch, Department
of Industry, Tourism and Resources, told the committee that 'if anything, we
will see a strengthening of the regime because it will mean that a full safety
case, a full evaluation and a full audit will apply to all vessels'[6]
over which NOPSA has oversight.
2.16
Mr Pegler explained that NOPSA has responsibility for pursuing all of
the occupational health and safety issues that relate both to facilities and to
the operation of and activities on those facilities.[7]
Facilities are permanent structures that do not move, although the definition
can also apply to vessels, for example if a vessel is a production facility
such as a floating offshore production ship (FPSO). When something is not a
facility, for example a transport vessel such as an oil or gas tanker, the
Navigation Act applies to the related maritime activities.[8]
Conclusion
2.17
In the light of the generally technically nature of the amendments in
the bill, as well as the lack of concerns raised in submissions to the inquiry,
the committee recommends that the Senate pass the bill.
Recommendation
The committee recommends that the Senate pass the bill.
Senator the Hon. Michael Ronaldson
Chair
Navigation: Previous Page | Contents | Next Page