Petroleum and gas exploration

Transcription

1 Petroleum and gas exploration A guide for landowners and occupiers Introduction This guide explains the rights and responsibilities of landowners or occupiers and petroleum and gas companies accessing land for petroleum and gas (including coal seam gas) exploration in Queensland. The Queensland Government recognises the importance of helping landholders and petroleum and gas exploration companies to maintain solid working relationships. This is a guide only and does not take into account your specific situation. It is recommended that you seek independent advice from your own legal adviser or a person with relevant experience in this field. This guide does not deal with the requirements associated with the production, processing or transport of petroleum and gas. The Department of Mines and Energy also produces a separate guide for landowners and occupiers that deals with mining operations, this can be downloaded from the department s website This guide refers to various acts of Parliament which should be read in conjunction with this guide. The acts referred to in this guide include: Petroleum and Gas (Production and Safety Act 2004 Petroleum Act 1923 These acts will provide more detailed information about your rights and obligations and the rights and obligations of exploration companies. The acts can be viewed online at or purchased from the Goprint website at For further information, visit the Department of Mines and Energy online at Petroleum The term petroleum in legislation covers oil and petroleum, but also includes gas, such as natural gas or coal seam gas (also known as coal seam methane). What is a petroleum or gas authority or petroleum or gas tenure? A petroleum authority or petroleum tenure is an authority, lease or licence generally granted by the Minister for Mines and Energy on behalf of the State of Queensland. An authority or tenure may, among other things, authorise exploration, production, processing or transport of petroleum (the term petroleum includes coal seam gas) under the provisions of the Petroleum and Gas (Production and Safety) Act 2004 or the Petroleum Act The Minister for Mines and Energy calls tenders (published in the Government Gazette) inviting companies and eligible individuals to apply for an authority to prospect (ATP) over blocks of land; each block being approximately 75 square kilometres in size. When explorers apply for an ATP they must submit a minimum compulsory work program covering authorised activities for each year (generally four) of the period stated in the call for tenders. For more information about authorities and tenures please refer to the Petroleum and gas exploration Exploration laws explained information sheet.

2 What are the types of petroleum authorities/petroleum tenure? There are seven different types of petroleum authorities/petroleum tenure. They are: an authority to prospect (ATP), or as it is sometimes referred to, an EPP (for exploration permit for petroleum ) which allows for petroleum and gas exploration on lands covered by the area of the ATP a data acquisition authority (DAA) which permits a geophysical survey only to be conducted outside, but contiguous to, the area of an ATP. Geophysical surveys help petroleum explorers to gain a better understanding of the underground geological structures to pinpoint ones that may contain reservoirs of petroleum. The same rights that a land owner or occupier has, when an ATP is granted over their land, apply when a DAA is granted over their land. a petroleum lease ( PL), which permits the extraction of petroleum on lands within the area of the PL a petroleum survey licence (PSL), which allows entry to lands, covered by the area of the PSL, to allow for surveys to be taken of proposed routes of petroleum pipelines, or of a parcel of land for a petroleum facility licence a pipeline licence (PPL) which basically allows for the construction of a pipe or a system of pipes which can be used to transport petroleum or gas a petroleum facility licence (PFL) which basically permits the construction, and operation, of a plant that will process petroleum in some way a water monitoring authority (WMA) that assists the petroleum exploration company in determining any impact certain exploration activities may have on underground water reservoirs. The same rights that a land owner or occupier has, when an ATP is granted over their land, apply when a WMA is granted over their land. As a landholder or occupier you will probably encounter holders of ATPs, or their representatives, requiring entry to land, so this document deals specifically with this type of authority/tenure. For further information about your rights and responsibilities in relation to the other petroleum authorities and tenures, contact the Registrar, Petroleum and Gas (details in the back of this guide). How will I know an ATP tender has been called or granted over my land? The Queensland Government looks at geological and geophysical data to identify land that has potential for holding important energy reserves of petroleum or gas, and therefore holds potential for further, on-the-ground exploration. The Government then calls for tenders from petroleum and gas companies to apply for an ATP to explore the relevant areas and prove the potential resource. Generally the tender is called over very large areas and usually there are a number of different areas selected in a single call. On average, there are about 10 discrete areas released at once. Each of these 10 areas may cover up to 100 blocks, equivalent to 7,500 square kilometres. However, a call for tender doesn t necessarily mean that an ATP will be granted. Some areas released in the call for tenders may not receive any applications for ATPs from petroleum and gas companies. Calls for tenders are advertised in the Queensland Government Gazette and usually the Queensland Government Mining Journal, available from the Department s website. An owner or occupier may also search the IRTM mapping system on the DME website to find out if there are any petroleum authorities or tenure applications or grants generally over their land. Also, if a more detailed map is required, any mining district office can supply these, at a nominal cost, from the department s MERLIN data base, which also contains the petroleum register. If an ATP has been granted over the land, it is the responsibility of the petroleum or gas exploration company, or its representative, to contact the owner or occupier of the land, via an Entry Notice, at least 10 days prior to the ATP holder or representative entering the land. 2 Petroleum and gas exploration A guide for

3 Can I object to petroleum tenure being granted over my property? No, the legislation does not provide for this as any resources below the ground are the property of the state on behalf of the people of Queensland. Even though a call for tender may proceed over an area of land, an ATP might not be granted. Some areas released in the call for tenders may not receive any applications for ATPs from petroleum and gas companies. Owing to the area required by drilling rigs and other equipment, closely settled areas including small properties and average household blocks of land are generally avoided by petroleum exploration companies. What rights does the holder of an ATP land have? The authority to prospect (ATP) holder may enter lands and carry out any of the following activities in the area covered by the ATP: exploring for petroleum and gas testing for petroleum production and gas evaluating the feasibility of petroleum and gas production evaluating or testing natural underground reservoirs for the storage of petroleum and gas. Before an ATP is granted, the Minister for Mines and Energy must ensure the company applying for the ATP has satisfied the provisions outlined in the Petroleum and Gas (Production and Safety) Act 2004 or the Petroleum Act These provisions include compliance with a work program approved for the ATP. The work program details the petroleum exploration activity and in-house research that the ATP holder has committed to, for the life of the work program, which is usually four years. Generally, an approved work program cannot be changed by the exploration company nor by any other party. Will I be notified if someone wants to enter my property? Yes. Notification that the holder of an authority to prospect wants to enter your property for exploration or related activities is required by law. Generally, a petroleum explorer who is either the holder of an authority to prospect (ATP) or someone who is working for the ATP holder, must personally deliver to you, as the occupier, a notice of entry at least 10 business days before the proposed entry to your property. This entry notice must contain details such as: the land proposed to be entered the period during which the land will be entered (entry period) the activities proposed to be carried out on the when and where the activities are proposed to be carried out contact details for: o the ATP holder, or o another person the ATP holder has authorised to discuss the matters stated in the notice. The entry period can not be longer than six months unless you, the landholder, otherwise agree in writing. Another notice, called a further notice of entry, must also be given to you two business days prior to the first proposed entry by the person who is (or who is working for) the holder of an ATP. This further notice of entry may be in writing, or given verbally in person, by , or hand written note. This further notice of entry must accurately describe where and when the proposed authorised activities are to be carried out. In addition to these notices, a compensation agreement must also be in place prior to any entry on to your property by a person who is (or who is working for) the holder of an ATP. 3 Petroleum and gas exploration A guide for

4 How will I know the activities have finished? Within three months of the end date of the entry period specified in the entry notice, the ATP holder mu st provide you with a notice about the activities conducted on the land. If no activities were conducted, this must be stated in the notice. Can I prevent an explorer ente ring my land? No. The petroleum or gas explorer may enter your land, provided they have a relevant current ATP and: you have received a current notice of entry, and a compensation agreement is in place. If the petroleum or gas explorer enters land, without having complied with both of these requirements, it is a breach of the Petroleum and Gas (Production and Safety) Act 2004 or the Petroleum Act 1923 and could result in disciplinary action against the petroleum explorer. This penalty could be a fine, or cancellation of their authority/tenure. If a petroleum or gas explorer enters your land without complying with these requirements, you should notify the Registrar, Petroleum and Gas (contact details on back page) in writing. Should people identify thems elves if they enter my land? Yes. The holder of the authority to prospect (ATP), or personnel working for the holder of the ATP, should carry identification to clearly establish their identity, either as the ATP holder or a person working for the ATP holder. You may refuse entry to anyone who cannot clearly identify themselves as the holder of the ATP or a person working for the holder of the ATP. If a person enters your land claiming to work for a petroleum exploration company and cannot provide identification verifying they are the holder of an ATP or otherwise a person working for the holder of an ATP, you may refuse this person entry to your land. Who is liable if someone is injured on my land? Generally, you are not civilly liable for any injuries caused by any petroleum exploration activities undertaken on your land, unless you contributed to the injury. What should I do if I have questions or concerns about activities conducted on my land? You can raise any concerns with the Registrar, Petroleum and Gas, of the Department of Mines and Energy. The Registrar, Petroleum and Gas is responsible for administering authorities and tenures under both the Petroleum and Gas (Production and Safety) Act 2004 and the Petroleum Act The Registrar can answer any questions you may have about the exploration and production activities that are occurring on your land. The Registrar can also investigate any complaints you may have, on your behalf. The details for the Registrar, Petroleum and Gas are in the back of this guide. What is a compensation agreement? You are entitled to receive compensation from companies that conduct exploration and production activities on your land. To do this, you need to enter into a compensation agreement with the authority to prospect (ATP) holder. The compensation agreement may relate to any compensation payable to you now or in the future. You should refer to section 532 of the Petroleum and Gas (Production and Safety) Act 2004 and section 79Q of the Petroleum Act 1923 for details of what needs to be included in the compensation agreement and what must be provided for in such an agreement. Each compensation agreement is different, and it is best to get professional advice to guide you, but may include monetary compensation, or compensation given as capital improvements, such as a boundary fence, driveway, turkey nest dam and the like, or both monetary and capital improvement compensation. 4 Petroleum and gas exploration A guide for

5 Unless a compensation agreement is in place, an ATP holder can not enter your land to conduct activities authorised under the ATP. The only exception to this rule is if entry is required by the ATP holder because of a dangerous situation or to preserve life. These exceptions are detailed in section 536 of the Petroleum and Gas (Production and Safety) Act 2004 and section 79U of the Petroleum Act What can I seek compensation for? The holder of an ATP is liable to pay compensation, to e ach owner or occupier of land that is within the ATP, for any compensatable effect. S ection 531 of the Petroleum and Gas (Production and Safety) Act 2004 and section 79P of the Petroleum A ct 1923 define compensatable effect as: all or any of the following in relation to the eligible claimant s (that is, the owner or occupier s) land (a) deprivation of possession of its surface (b) diminution of its value (c) diminution of the use made, or that may be made, of the land or any improvement on it (d) severance of any part of the land from other parts of the land or from other land that the eligible claimant owns (e) any cost or loss arising from the carrying out of activities under the petroleum authority on the land. What if we can t agree on compensation? If you cannot reach a compensation agreement with the petroleum or gas explorer, the matter can be referred to the Land Court to determine. Either the landholder or occupier of land that is within the ATP, or the ATP holder, may apply to the Land Court to determine compensation or future compensation. These parties may also apply to the Land Court to determine a variation to compensation. For further details about the Land Court deciding compensation, see sections 533 to 535 (inclusive) of the Petroleum and Gas (Production and Safety) Act 2004 and sections 79R to 79T (inclusive) of the Petroleum Act Further details about how to apply to the Land Court, for the Land Court to determine these matters, can be obtained from their website, or by contacting the Land Court on telephone (07) during office hours. Who is responsible for rehabilitating the land? The Environmental Protection Act 1994 states that petroleum or gas tenure/authority holders are required to rehabilitate the land after conducting exploration or production activities. When the petroleum or gas explorers apply for an ATP, a security deposit is lodged with the Queensland Government, corresponding to the type of petroleum or gas activities being conducted, to ensure rehabilitation is carried out. If you have any questions about environmental or rehabilitation matters regarding petroleum exploration activities, you should contact the Environmental Protection Agency (EPA) as follows: Southern Queensland Southern Region - Environmental Operations Environmental Protection Agency GPO Box 2771 BRISBANE QLD 4001 Telephone: Central or northern districts of Queensland Central Region - Environmental Operations Environmental Protection Agency PO Box 906 EMERALD QLD 4720 Telephone: Petroleum and gas exploration A guide for

6 DME contact details Department of Mines and Energy (DME) PO Box 15216, CITY EAST QLD Registrar, Petroleum and Gas Ms Tanya Cooney Address: ld.gov.au The Registrar, Petroleum and Gas deals with the administration of all applications for, and granted, petroleum authorities and tenure. Landholders with questions as to their rights, and the rights and responsibilities of the tenure or authority holders, should contact this officer in the first instance. Senior Tenure Officer Mr John McCormack Address: qld.gov.au The Senior Tenure Officer assists the Registrar, Petroleum and Gas, in dealing with the administration of all applications for, and granted, petroleum authorities and tenure. Landholders with questions as to their rights, and the rights and responsibilities of the tenure or authority holders, should contact this officer where the Registrar, Petroleum and Gas is unavailable. Petroleum Engineer and Petroleum Technologist Mr Andy Kozak Address: The Petroleum Engineer and Principal Technical Assessment Officer provides technical advice to all sectors of the petroleum industry. In addition, this officer also assesses the technical aspects of all petroleum authority and tenure applications, and all dealings associated with granted petroleum authorities and tenure. Executive Director, Statewide Services Mr Jim Grundy Address: The Executive Director is in charge of operations for South East Region, where all petroleum authority and tenure applications are processed. 6 Petroleum and gas exploration A guide for