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©State of Queensland
QUEENSLAND.
Petroleum Acts,
''The
1923 to 1958"
and
Regul.ations Thereunder
with
An Index
(Compiled to 31st October, 1958)
Prepared h¥ direction of The Honourable E. EVANS, M.L.A.,
Minister for Development, Mines and Main Roads .
. By Authority:
S. G. REID. Government Printer, Brisbane.
TABLE OF CONTENTS.
"PETROLEUM AcTs, 1923 To 1958"
REGULATIONS-
( A) General Regulations
PAGE.
1
32 (B) Regulations re Qualification of Permittees and Lessees' 41 (C) Regulation re Special Permits
INDEX ••
44 45
"The Petroleum Acts. 1923 to 1958"
beinq
"The Petroleum Act of 1923"
(14 Geo. V. No. 26) as amended by
"The Petroleum Act Amendment Act of 1927" (18 Geo. V. No.13) [Assented to on 13th December, 1927];
"The Petroleum Acts Amendment Act of 1929" (20 Geo. V. No.
17) [Assented to on 5th December, 1929]; ·
"The Petroleum Acts Amendment Act of 1939" (3 Geo. VI. No.
19) [Assented to on 24th December, 1939];
"The Petroleum Acts Amendment Act of 1950" (14 Geo. VI.
No. 20) [Assented to on 30th Novemper, 1950];
"The· Petroleum Acts Amendment Act of 1955" (4 Eliz. II. No.
25) [Assented to on lOth October, 1955] ; and
"The Petroleum Acts Amendment Act of 1958" (7 Eliz. II. No.
25) [Assented to on 7th October, 1958].
An Act to Make Better Provision for Encouraging and Regulating the Mining for Petroleum and Natural Gas within the State of Queensland.*
[AssENTED TO 12TH NoVEMBER, 1923.]
B
E it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:-p .ART I.-PRELIMINARY. pf~~iaY.
1. This Act may be cited as "The Petroleum Act of 1923," Sh t t"tl
and shall be read as one with t"The Mining Acts, 1898 to 1921," or 1 e.
herein collectively referred to as the Mining Acts.
:j:2. This Act is divided into Parts, as follows:- Parts of Act.
PART I.-PRELIMINARY;
PART IA.-PETRO;LEUM ADVISORY BoARD;
PART H.-RIGHTS AND PoWERS OF THE CRowN;
PART IlL-PROSPECTING PERMITS AND LEASES ; pART IV.-PROVISIONS RELATING TO PERMITS;
pART V.-PROVISIONS RELATING TO LEASES;
PART VI.-PRoVIsiONS APPLICABLE TO PERMITS AND LEAsEs;
PART VII.-MISCELLANEOUS.
* It is provided by s. 6 of ''The Companies Act of 1931'' that, subject as is otherwise provided in that Act, nothing in that Act shall affect the (inter alia) provisions of "The Petroleum Act of 1923" as amended by subsequent Acts.
Moreover, the Governor in Council may at any time and from time to time, by Order in Council published in the Gazette, apply and extend all or any provisions of the Companies Act in relation to the prospectus of a company, with or without any amendlll:ents, modifications, or additions thereto as may be prescribed in any such Order in Council in respect of the provisions dealing with the prospectus of a company referred to in
"The Petroleum Acts, 1923 to 1929," Any such Order in Council may prescribe that the provisions contained therein shall be in addition to, or in amendment of or in substitution of the provisions relating to the prospectus of a company enacted in the said Petroleum Acts.
t
62 V. ~o. 24 and amending Acts, Statutes, pp. 2178 et seq.,· see also supra.t
Printed as amd. by the amending Act of 1927, s. 2 (i.).B
2
PART I . - PII.IILDmi'ARY.
Interpreta- tion.
Authority to prospect.
Barrel.
Crown land.
Drilling.
Lease.
Lessee.
Mark the land.
Occupier.
Payable.
Permit.
Permittee.
Person.
Petroleum.
Petroleum Advisory Board, or Board.
Petroleum deposits.
Prescribed.
s.3. Petroleum Acts.
*3. In this Act, unless the context otherwise indicates or requires, the following terms have the meanings set against them respectively, that is to say:-
t"Authority to prospect"-Authority to prospect granted pursuant to section 9A of this Act;
"Barrel"-The term, when used quantitatively in relation to petroleum, shall mean a barrel containing thirty-five imperial gallons;
"Crown land"-All vacant land of the Crown and all land held under any tenure whatsoever from the Crown in respect of which no grant of the fee-simple has been issued or lawfully contracted to be so issued before the passing of this Act;
"Drilling" -Drilling or boring;
"Lease" -A petroleum lease granted under this Act;
"Lessee"-The holder of a petroleum lease;
"Mark the land"-Mark the land covered by a permit by firmly :fixing in the ground a substantial post or monu- ment set in an
L
trench at each angle or corner;"Occupier"-The person in actual occupation of any private land or improved land, or, if there is no person in actual occupation, the person entitled to possession thereof;
''Payable'' as applied to petroleum-petroleum of such quantity and quality that it can under ordinary circumstances be won with profit;
"Permit"-A prospecting petroleum permit granted under this Act;
"Permittee'-The holder of a prospecting petroleum permit;
''Person'' includes an individual person, an association of persons, and a company or corporation;
t"Petroleum"-Petroleum and mineral oil occurring in a free state and which may be obtained by drilling or wells; natural gas; and solid bitumen : the term does not include helium occurring in association with petro- leum : the term does not include mineral oil which may he extracted from coal, shale, or other rock by some industrial process;
"Petroleum Advisory Board" or "Board"-The Petroleum Advisory Board as and when constituted under this Act;
"Petroleum deposits"-The petroleum-producing or petro- leum-bearing sands or strata;
"Prescribed"-Prescribed by or pursuant to this Act;
*Printed as amd. by the amending Act of 1927, s. 2 (ii.).
t
Definition "Authority to prospect " ins. by s. 2 of the amending .A of 1955.t Definition printed as amd. by the amending Act of 1929.
Petroleum Acts. ss. 4, 4A. 3
PAJii' 1.- PliRLDIINAJIY.
''Private land''-Land which has been alienated at any Private land.
time whensoever from the Crown for an estate in fee- simple or which is lawfully contracted to be so alienated ; also, land held under any Act relating to Crown land of which an estate in fee-simple may be acquired by the occupier or any other person immedi- ately or at a future time with or without performance of any conditions: the term does not include a reserve ;
"Public Works Land Resumption Act"-*" The Public Public
W ,r R · ,, Works Land
orks tUand esumptwn Acts, 1906 to 1917, and any Resumption
Act amending or in substitution for those Acts; Act.
"This Act"-This Act and all proclamations and Regula-This Act.
tions issued or made thereunder.
The terms "Improved land" and "Owner" have the meanings respectively assigned to them by
t"
The Mining on Private Land Act of 1909," and generally, save as hereinbefore provided, the terms used have the meanings respectively assigned to them by the Mining Acts.4. This Act does not apply to mineral oil which may be Aflli~ation extracted from coal, shale, or other rock by some industrial process. 0 c •
:j:P ART !.A.-PETROLEUM ADVISORY BOARD.
PAlli' I.A.- PETROLEtrn ADVISORY
BOAJID.
4A. For the purpose of making any inquiry or investigation Appoin;-
which may be deemed necessary, or for such other purposes as ;:~~~~um the Governor in Council may think fit, it shall be lawful for the Advisory
Governor in Council from time to time to appoint a Board, to be Board.
called the "Petroleum Advisory Board," consisting of such persons as he may approve. In the event of such Board being constituted, Regulations may be made prescribing the tenure of office of the members of such Board, the duties and responsibilities thereof, the regufation of meetings, proceedings and the conduct of business of such Board, the appointment of a secretary or other officers, if necessary, and generally such other matters or things which may be considered necessary or expedient so to prescribe.
For the purpose of any such inquiry or investigation the Board, if and when so constituted, and each and every member thereof, shall have the same powers, authorities, and protection as a commission under §"The Official Inquiries Evidence Act of 1910."
The Governor in Council may also dissolve any board so appointed, and such board shall cease and determine accordingly.
* 6 E. 7 No. 14 and 7 G. 5 No. 6, Statutes, p. 8211; and 8 9-· 5 No. 20, Statutes, p. 8362.
t 9 E. 7 No. 15, Statutes, p. 2233; see supra.
t
Part I.A ins. by s. 2 (iii.) of the amending Act of 1927.§ 1 G. 5 No. 26, Statutes, p. 748.
4
PART !I.- RIGHTS AND
POWERS OF THE CROWN.
ss. 5-7. Petroleum Acts.
PART H.-RIGHTS .AND POWERS OF THE CROWN.
Petroleum is Crown Property.
Petroleum 5. Notwithstanding anything to the contrary contained in
t~e hpr
0
perty any Act or in any grant, instrument of title, or other document,0 t e rown. it is hereby declared that petroleum and helium on or below the surface of all land in Queensland, whether alienated in fee-simple or not so alienated from the Crown, and if so alienated whensoever alienated, are and always have been the property of the Crown.
Reservations 6. All Crown grants, leases, licenses, and other instruments of
in Crown tenure under any .Act relating to Crown land, other than permits
grants. and leases under this Act, issued after the passing of this Act-
Power to Crown to obtain petroleum.
(a) Shall contain a reservation of all petroleum on or below the surface of the land comprised therein, and also a reservation of all rights of access for the purpose of searching for and for the operations of obtaining petroleum in any part of the land, and all rights of way for access and for pipe-lines and other purposes requisite for obtaining and conveying petroleum in the event of petroleum being obtained in any part of the land;
(b) Shall contain a reservation of all helium found in association with petroleum.
7. (1.) The Minister on behalf of the Crown is hereby empowered by his officers, agents, and workmen to carry on the business of searching for, obtaining, refining, and disposing of petroleum and helium and of conducting all operations deemed necessary for those purposes in or upon any land in Queensland.
(2.) For those purposes the Minister may enter upon and occupy, either temporarily or permanently-
(a) Any vacant Crown land; or
(b) Save as next hereinafter provided, without making any compensation, any land in the grant or subsisting lease, license, or other instrument of tenure of which from the Crown, whether issued before or after the passing of this Act, petroleum has been reserved or petroleum and helium have been reserved : Provided nevertheless that in such case compensation shall be made for permanent deprivation of the possession of so much of the surface,. including any improvements thereon, as is required by the Minister for any purpose except the actual working of the mine and surface rights to and from the mine ; or
(c) Subject to making compensation as hereinafter pro- vided, any land which is private land or is held under subsisting lease or license or other instrument of tenure from the Crown, not being in any case land of the description mentioned in paragraph (b) hereof.
Nothing in this section shall authorise the Minister to enter upon or occupy for the purposes aforesaid any land covered by a subsisting permit or comprised in a subsisting lease under this Act.
Petroleum Acts. 5
PARTII.- RIGHTSAND
POWERS 01!'
8. The Governor in Council may from time to time, under and THE CROWN
1subject to the Public Works Land Resumption Act, resume any ~and mayd
land which, in the opinion of the Governor in Council, ought to e resume •
be resumed for the purposes of this Act.
For the purpose of any such proposed resumption he may cause the land to be inspected and reported upon by such officers and workmen as the Minister directs, all of whom may thereupon enter upon the land and carry out all necessary operations.
Upon any such resumption the owner or occupier shall be entitled to compensation, and the amount of such compensation shall be determined in the manner prescribed by the last-mentioned Act:
Provided that in assessing compensation no allowance shall be made for any petroleum or helium known or supposed to be in ·or under the land resumed.
PARTlii.-
PART IlL-PROSPECTING PERMITS AND LEASES. ~~~
Ll!ASES.
9. (1.) Subject to this Act- Permits and
*(") 1. T he M · imster may 1ssue prospectmg perm1ts to any . . . leases.
extent in each case not exceeding two hundred square miles to be covered by one permit; and
f(ii.) The Governor in Council may grant petroleum leases to any extent in each case not exceeding one hundred square miles demised by one lease-
to qualified persons coveriDig or comprising any land within Queensland which is not excluded from permit or lease under proclamation as hereinafter provided.
(2.) The Governor in Council may from time to time by Areas may
proclamation published in the Gazette declare and define any area be excl~ded
or areas within the State which shall not be open to permit or lease from ~emg under this Act, and while such proclamation remains unrevoked ~:!it0or it shall not be lawful to grant any permit covering or lease lease.
comprising any land situated within any area mentioned in such proclamation.
:j:9A. (1.) Any person may apply to the Minister for an Authority
authority to prospect on any land and the Minister may grant to prospect.
such authority. The area to be held under such authority, the terms, rent, and the conditions, provisions, and stipulations as to labour and other matters shall be fixed by the Minister. Failure to comply with any conditions, provisions, and stipulations so fixed shall render the authority liable to be cancelled by the Minister.
(2.) Such authority shall entitle the holder, upon payment
<in advance of the rent fixed as aforesaid, and survey fee if neces- sary, to undertake exploration or prospecting, or geological or
*
Paragraph (i.) of s. 9 (1) amd. by s. 2 (i.) of amending Act of 1939.t
Paragraph (ii.) of s. 9 (1) amd. by s. 2 (ii.) of amending Act of 1939.:j: Section 9A ins. by s. 3 of amending Act of 1939.
6
PARTlli.- PROSPECTING PBR!IITS AND
LliiASES.
s.lO. Petroleum Acts.
geolog~cal a~d geophysical investigation or testing, of favourable geological structures, or generally to do all things in respect of the search for and discovery of petroleum or for the due development of the industry during the term of such authority.
(3.) Compensation under this Act shall be payable by the holder of an authority to prospect on any private land or improved land before he enters thereon, and for the purpose of determining such compensation all of the provisions of this Act relating to the determination (whether by agreement or by the warden's court) of the compensation payable by a permittee or lessee shall, mutatis mutandis, apply and extend.
( 4.) On discovery of payable deposits of petroleum the holder of the authority shall report, within fourteen days from the date of such discovery, to the Minister on the nature of the discovery.
The Minister may thereupon call upon the holder of the authority to apply for a lease of the land or such part thereof as he may deem advisable or to continue prospecting operations.
Qualific~tion 10. *Subject as is hereinafter provided, the persons following
~~a~:~!~s shall be qualified to apply for and hold a permit or lease, namely:- (i.) Any person who is a natural-born British subject or
is a naturalised British subject whose certificate of naturalisation has been granted not less than three years prior to the date of application for or acquirement of the permit or lease; or
( ii.) Any 'association of any of such persons ; or
(iii.) Any company or corporation formed and registered within the Commonwealth of Australia all of whose members and shareholders are natural-born or such naturalised British subjects as aforesaid or persons qualified under paragraph (v.) hereof to hold a permit or lease; or
(iv.) Any company or corporation formed to acquire and actually carrying on operations in respect of licenses to prospect for petroleum issued before the passing of this Act and subsisting at that date; or
(v.) Any person not qualified under paragraph (i.) hereof who has obtained in the prescribed manner a certificate that he is able to read and write from dictation words in such language as the Minister may direct. Regula- tions may be made under this Act for the examination and granting to such persons of certificates of ability to read and write from dictation words in such language as the Minister may direct and for the exemption from the operation of this provision of any person or class of persons whom for any reason it is not considered necessary to examine to the intent that such persons so exempted may become qualified persons under this section.
*
Words " subject as is hereinafter provided " ins. by s. 3 of the amending Act of 1929.Petroleum Acts. ss. lOA-12. "1
--- /PARTDIT.-
PROSPEOTING
*lOA. Notwithstanding anything contained in section ten PElE~:s~ND
of this Act, or in any Act to the contrary, but subject to the Qualification
provisions of this section- of companies
(i.) Any British company (as defined by t"The British registe~~d
Companies Act of 1886") registered or which may here-W:fti~h The after be registered in Queensland pursuant to the pro-Companies
visions of t"The British Companies Act of 1886''; or -1ctof1886,"
(ii.) Any foreign company (as defined by t"The Foreign
F;::gn
Companies Act of 1895") registered or which may here-CompaniP,s
after be registered in Queensland pursuant to the pro-Act,?f 1895,"
visions of t" The Foreign Companies Act of 1895"; or ~om ~~es (iii.) Any company registered or which may hereafter be Act/! 1863 to
registered in Queensland pursuant to the provisions of 1913."
§"The CompanifJS Acts, 1863 to 1913 " -
shall, subject to this Act, upon such registration under the Com- panies Acts concerned, be qualified to apply for and hold a permit or lease, notwithstanding the fact that all or any of the members and/or shareholders of the company concerned are not persons qualified under paragraph (i.) or paragraph (v.) of the said section ten to apply for and hold a permit or lease ; and the provisions of this Act and the Companies Acts concerned, either wholly or with all such modifications thereof or additions thereto as are deemed by the Governor in Council by Order in Council published in the Gazette ·to be necessary or convenient, either generally or to meet any particular circumstances, shall apply and extend accordingly.
Any Order in Council issued or purporting to be issued under this section shall have the same force of law as if it were enacted in and formed part of this Act, and shall be judicially noticed, and shall not be questioned in any proceedings whatever.
Upon the registration of any such company under the Com- panies Acts concerned, the registrar of joint stock companies shall, upon request, forward to the Minister a certified copy of the certifi- cate of the registration of the company concerned, and such certified copy of such certificate shall be conclusive evidence of the fact of such registration, under the Companies Acts concerned, of the company concerned.
Regulations may be made to give full effect to the objects and purposes of this section, and the provisions of section sixty-five of this Act shall apply and extend accordingly.
1111.
1fl2. ( 1.) For the purposes of this section the State shall be
Limi:
to fdeemed to be divided into three divisions by the 20th and 24th ~~:~ ~nd
parallels of latitude. leases.
*Section lOA ins. by s. 4 of the amending Act of 1929.
t
50 V. No. 31, rep. by" The Companies Act of 1931" (22 G. 5 No. 53) and re-enacted in Part X. of that Act.t
59 V. No. 2 rep. by" The Companies Act of 1931" (22 G. V. No. 53) and re-enacted in Part XI. of that Act.§ 27 V. No. 4 and amending Acts; these Acts have now been rep. by·
" The Companies Act of 1931 " (22 G. 5 No. 53), Statutes, p. 13433. See now that Act.
II Section 11 rep. by s. 4 of the amending Act of 1939.
~ Section 12, as amd. by s. 5 of the amending Act of 1929, and by s. 5 of the amending Act of 1939, rep. and news. 12 ins. in lieu thereof by s. 2 of the amending Act of 1958.
8
PARTIII.- PROSPEOTING PERMITS AND LEASES,
PART IV.- PROVISIONS RELATING TO
PERMITS.
Particulars of applica- tion for permit.
Qualifi- cation.
ss. 13, 14. Petroleum Acts.
(2:) A person shall not be entitled to apply for, acquire, or hold in any one division of the State a number of leases or permits, or an aggregated number of leases and permits, in excess of five at any time when the number of permits or leases, or the aggre- gated number of permits and leases, held by him in any other division of the State exceeds five.
( 3.) Save as prescribed by subsection two of this section the number of permits or leases which any person may apply for, acquire, and hold shall not be limited.
( 4.) Where one company or corporation is a member of, or holds any beneficial interest in, another company or corporation, then this section shall apply to each such company or corporation as if it held in its own right all leases or permits, or leases and permits held by them respectively.
( 5.) All leases acquired by the original permittee within the area comprised in his permit and all subdivisions of such leases shall, for the purposes of this section, be deemed to be one lease.
pART IV.-PROVISIONS RELATING TO PERMITS.
Preferent Right to Permit.
*13.
App-lications for Permits.
t14. (1.) The application for a permit shall state-
( a) The applicant's full name, address, and occupation;
(b) That the applicant is a qualified person as hereinbefore provided;
t(c)
(d) Full details of all rights, title, and interest which the applicant has or holds (whether directly or indirectly or whether as a shareholder or stockholder of any company or corporation or in any other capacity what- soever) in any other permits or leases under this Act, disclosing the full nature and extent of every such right title, and interest.
(2.) In the case of 3!pplication by an individual person or association of persons, a copy of every certificate of naturalisation (if any), duly certified as such by a commissioner of affidavits or a notary public, shall be annexed to the application.
In the case of an application by a company or corporation, a certified copy of the certificate of its incorporation, together with satisfactory proof that the shareholders and stockholders !are qualified as hereinbefore provided, shall be annexed to the applica- tion:
* Section 13 rep. by s. 6 of the amending Act of 1939, which further provides that such repeal will not prejudice any preferent right established prior to the passing of" The Petroleum Acts Amendment Act of 1939."
t Section 14 printed as amd. by s. 2 (iv.) of the amending Act of 1927 by s. 6 of the amending Act of 1929, by s. 7 of the amending Act of 1939 and by s. 3 of the amending Act of 1958.
t
Paragraph (c) amd. by s. 7 (i.) of the amending Act of 1939 and rep. by s. 3 of the amending Act of 1958.Petroleum Acts. s. 14. 9 Provided that, in the case of an application by a company
qualified to apply for a permit pursuant to the provisions of section lOA of this Act, a certified copy of the certificate of its incorpora-
PART IV.- PROVISIONS RELATING TO
PERliiiTS.
tion, together with a certified copy of the certificate of registration under the Companies Acts concerned (as the case may be), and such other particulars as may be directed by the Minister or as may be prescribed, shall be annexed to the application.
(3.) The application shall be accompanied by a plan and Plan.
description locating the land applied for in a reasonably compact form and according to the legal land surveys, if the land has been surveyed; or, if the land is an unsurveyed area, then in an approximately rectangular block the length of which shall not exceed two and a-half times its width.
Lands which are not contiguous may b'e included in one application where conditions are such that because of any prior disposition or by reason of any apparently unfavourable geological structures or conditions a reasonable area of contiguous land is not available.
Where the land is unsurveyed, if deemed necessary a survey more fully identifying the land may be required before the permit is granted.
*(4.)
t ( 5.) The application shall be lodged with the nearest warden, Lod~g.
addressed to the Minister, and shall, unless excused by the Minister, application.
be accompanied by three references signed by persons of good repute as to the applicant's business and good financial standing.
The applicant shall pay to the warden, when lodging the application, a sum equal to five shillings for every square mile of land or part thereof applied for, which sum if the perinit is granted shall be applied in and towards the first year's rent or, if the permit is refused or a lesser area than is applied for is granted under the permit, shall be returned to the applicant wholly or proportionately as the case may require.
:j: ( 6.) Before a permit is granted by the Minister the applicant shall deposit with the Minister a sum of not less than one thousand pounds as security for compliance by the applicant with this Act and with the conditions of the permit and for the protection of the interests of owners and occupiers of such improved land or private land (if any) as may be included in the area applied for.
The amount of the deposit may be increased b'y the Minister in any case where in his opinion the circumstances warrant an increase.
*
Subsection (4) rep. by s. 7 (ii.) of the amending Act of 1939.t Subsection (5) amd. by s. 7 (iii.) of the amending Act of 1939.
~ Original subsec. rep. and new subsec. ins. by s: 2 (iv.) of the ~mending
Act of 1927 ; this subsec. rep. and new subsec. 6 ms. by ~· 6 (n.) of ~he
amending Act of 1929; and again rep. and new subsec. (6) ms. by s. 7 (1v.) of the amending Act of 1939.
0
10
PART IV.- PROVISIONS RELATING TO
PERMITS.
Warden to report.
Action by Minister.
Form of permit.
ss. 15-18. Petroleum Acts.
*15. On receipt of an application the warden shall forward to the Minister the application, references, and other prescribed documents together with his report thereon.
t16. On receipt of the application, documents, and report from the warden, the Minister shall deal with the application.
Prior to dealing with the application he may require such geological or other information and opinions concerning the land comprised in such application as he deems necessary.
The Minister may, in his discretion, refuse any application for a permit, or may approve of the same either in its entirety or in part and on sucli terms and conditions as the facts appear to him to warrant.
Upon approval by the Minister of the application, or upon its being amended to the satisfaction of the Minister and approved in its amended form, the Minister may grant a prospecting permit under this Act to such applicant as appears to him to be entitled thereto.
Permit.
:j:17. Every permit shall be in the form prescribed, with such variations as the Minister may in special cases require, and shall confer upon the permittee the exclusive right to prospect for and obtain petroleum, and for no other purpose, upon and under the land covered thereby, for a period of two years or such extended period as may be granted as hereinafter provided, provided that the permittee duly complies with this Act and with the terms and conditions of the permit.
The period in respect of the permit shall commence on the first day of that month which next follows the day on which the applica- tion shall have been lodged witht the warden.
Extension §18. If for any good reason the permittee is unable with the
of permit. exercise of reasonable diligence to test the land within two years, application for an extension for a further period not exceeding two years may be filed within the currency of the permit.
Such application shall be accompanied by satisfactory evidence on oath as to the causes that make such extension necessary and as to what efforts have been made to comply with the conditions of the permit.
The application for extension shall be addressed to the Minister and filed in the office of the nearest warden or with the Under Secretary for Mines in Brisbane.
*
Section 15 rep. and new s. 15 ins. in lieu thereof by s. 8 of the amending Act of 1939.t Section 16 printed as amd. by s. 2 (v.) of the amending Act of 1927 and by s. 7 of the amending Act of 1929.
~ Section 17 printed as amd. by s. 8 of the amending Act of 1929.
§ Section 18 printed as amd. by s. 9 of the amending Act of 1929, and by s. 4 of the amending Act of 1958.
Petroleum Acts. ss. 19-21. 11
The Minister may, i:f satisfied that good reasons have been shown for the extension of the permit, extend the permit for such time not exceeding a further period of two years as he thinks proper and upon such terms and conditions as he thinks proper :
PART IV.-
PROVISIONS RELATING TO
PERMITS.
Provided that the Minister may, upon application as provided in the case of an extension in the first instance and if satisfied that good reasons have been shown for a further extension of the permit, extend the permit for such further period not exceeding two years as he thinks proper and upon such terms and conditions as he thinks proper :
Provided also that in any case in which the term of a permit has been extended pursuant to the provisions of this section the Minister may, if in his opinion payable deposits of petroleum have been discovered, require the permittee to apply for the area com- prised in the permit or a part thereof as a lease, and the require- ment of the Minister shall be obeyed accordingly.
All the provisions of this Act relating to permits shall apply to the permit as so extended, save and except such of them as have already been completely fulfilled by the permittee.
*19. The permittee shall, within ninety days from the com-Marking
mencement of the period of the permit as hereinbefore prescribed, land.
mark the land so that the boundaries can be readily traced on the ground, and shall post in a conspicuous place upon the land a notice setting forth that such permit has been granted, and a description of the land and the area covered thereby.
t20. The permittee shall pay annually in advance by way of Rent.
rent in respect of the permit a sum equal to five shillings for each square mile or part thereof covered by the permit.
Such rent shall be deemed to commence and become due from the commencement of the period of the permit as hereinbefore prescribed.
20.A.. (1.) Every permit in force at the passing of *"The Exist!ng
Petroleum Acts Amendment Act of 1939'' shall during the ~~~h:!ed currency of the period for which it was issued continue to have in force.
the same force and effect and be subject to the same terms and conditions in all respects as if *"The Petroleum Acts Amendment Act of 1939 '' had not been passed.''
(2.) Any permit in force at the passing of *"The Petroleum Acts Amendment Act of 1939'' may be extended for a further period, and when so extended shall continue in force in all respects as if *"The Petroleum Acts Amendment Act of 1939" had not been passed.
§21.
* Section I9 printed as amd. by s. IO of the amending Act of I929.
t Section 20 rep. and new s. 20 ins. by s. II of the amending Act of I929, and printed as amd. by s. 9 of the amending Act of I939.
t Section 20A ins. by s. IO of the amending Act of I939.
§Section 21 amd. by s. 2 (vi.) of the amending Ac~ of I927; and rep. and new s. 2I ins. in lieu thereof by s. 11 of the amendmg Act of 1939.
This new s. 2I is now rep. by s. 5 of the amending Act of 1958.
12
PART IV.- PROVISIONS RELATING TO
PERMITS.
Duty of permittee.
Commence- ment of drilling.
ss. 22, 22A. Petroleum Acts.
*22. The permittee shall within four months from the com- mencement of the period of the permit as hereinbefore prescribed proceed to have made geological · or geological and geophysical examination of the land with a view to the determination of geological structure favourable to boring, and shall within six months of such commencement of the period of the permit furnish to the Minister satisfactory proof that such geological or geological and geophysical examination has been commenced.
The permittee shall carry out scout drilling when directed by the Minister so to do.
The permittee shall furnish to the Minister from time to time, in such form as may be directed by the Minister or as may be prescribed, full and complete data setting forth the results of geological or geological and geophysical examination or other investigation, or any tests or examination, logs of boring, or any other information or evidence obtained by or given to such permittee, or any further particulars, statistics, or information as may be required by the Minister during the period covered by the permit or any extension thereof.
Failure to comply with the above provisions shall render the permit liable to be cancelled by the Minister in his ab'solute dis- creation, and the Minister's decision in cancelling such permit shall be final and conclusive and without appeal, and on such cancella- tion by the Minister such permit shall lapse and determine accordingly.
Geological or geological and geophysical examination and scout drilling carried out to the satisfaction of the Min;ister in terms of this section may be taken into account in allowing exemption from 'the observance of the requirements of section 22A of this Act.
t22A. The permittee shall within one year· from the commence- ment of the period of the permit as hereinbefore prescribed instal upon some portion of the land a substantial and adequate drilling outfit and commence drilling, and shall, within two years from the date of the permit, drill at least one well to a depth of at least two thousand feet, unless payable deposits of petroleum are discovered at lesser depth, or, if the Minister so approves, drill wells in the land to an aggregate depth of at least two thousand feet and so as adequately to prospect the land:
Provided that upon application by the permittee in that behalf the Minister, in any case in which the circumstances seem to the Minister just and equitable, may, in his absolute discretion, grant such extended period, not exceeding in respect of such extension a term of one year at any one time or four years in all, beyond the period prescribed by this section:
Provided further that nothing in the preceding provision shall confer upon any permittee a right to claim any such extension of time, but the Minister shall have an absolute and unfettered discretion to approve or refuse any such application for such extension of time, and his decision shall be final and conclusive and without appeal.
* Section 22 ins. by s. 12 of the amending Act of 1929, and printed as amd. by s. 6 of the amending Act of 1958. ..
t Section 22A (originally numbered 22) printe~ as amd. by s. 2. (vn.) of the amending Act of 1927 and s. 13 of the amendmg Act of 1929; 1t was renumbd. 22A by s. 12 of the amending Act of 1929.
Petroleum Acts. ss. 22A-25. 13
*22A,
PAltT IV.- PROVISIONS RELATING TO
PERMITS.
t23. The permittee shall have the right- Rights to water, etc.
(a) To take and divert water from any natural spring, lake, pool, or watercourse situated on or :flowing through any land (including any private land or improved land) covered by the permit, and to use such water for any purpose necessary or incidental to his prospecting and mining operations; and
(b) To cut and use any timber on such land for building or construction works or firewood or other necessary purposes; and
(c) To de pasture on such land all stock used in connection with his prospecting and mining operations ;
subject, however, to any conditions prescribed with respect to payment for water, timber, or agistment in cases where the making of such payment is deemed necessary.
tFor the purposes of both this section and section twenty- four of this Act, in addition to the meanings given to the terms by section three of this Act the term ''permittee'' shall include the holder of an authority to prospect, and the term "permit" shall indude an authority to prospect.
24. If the permittee determines to drill on any portion of Private
private land or improved land covered b'y the permit he shall, ~nds
before commencing such drilling, apply to the nearest warden's ti~:-1:~::;
court to determine the amount of compensation payable by the commence-
permittee in respect of operations during the first year of the m«:n~ of
period of the permit. drillmg.
At the end of such first year the warden shall determine what further compensation, if any, should be paid in respect of opera- tions during such first year, and shall also determine the amount of compensation payable for the balance of the period of the permit.
The applicant shall state and describe in such application the area of the surface of private land or improved land required and the purpose for which it is required, and shall give such further information as the warden's court shall require.
Notice of such application shall be given by the warden to the Notice to
owner or occupier of the private land or improved land, or, if the be given.
land is vacant, shall be affixed in some conspicuous place on the land.
Such notice shall state a day upon which the application will be heard.
25. If a permittee fails to discover petroleum during the Expiration
period of the permit or any extension thereof the permit shall of permit.
thereupon terminate.
* Section 22A, ins. by s. 2 (viii.) of the amending Act of 1927; rep.
by s. 14 of the amending Act of 1929. See now s. 22 (Duty of Permittee).
t Section 23 amd. by s. 3 of the amending Act of 1955.
:j: Paragraph ins. by s. 3 of the amending Act of 1955.
14
PART IV.- PROVISIONS RELATING TO
PERMITS.
Cancellation of permit.
Effect of termination of permit.
PART V.- PROVISIONS
RELATING TO LEASES.
Lease to permittee.
Preferent right to further lease.
ss. 26-29. Petroleum Acts.
26. The Minister, if he has cause to believe that a permittee has failed to comply or is not making reasonable endeavours to comply with any provisions of this Act relating to permits or with any of the provisions or conditions of the permit, may at any time during the currency thereof order the warden to call upon the permittee to show cause why his permit should not be cancelled.
The warden shall thereupon give at least fourteen days' notice to the permittee or his agent to appear before him and show cause why the permit should not be cancelled, and having heard the matter in open court shall forward the evidence to the Minister, who, if satisfied that it is just to do so, may cancel the permit, and the decision of the Minister in the matter shall be final and without ll!ppeal.
27. Upon the termination of a permit, whether by expiration or cancellation, the land covered thereby shall automatically revert to its original status.
pART V.-PROVISIONS RELATING TO LEASES.
*28. Upon establishing to the satisfaction of the Governor in Council that payable deposits of petroleum have been discovered within the limits of the land covered by any permit, the permittee shall be entitled as of right and the Governor in Council shall grant to the permittee a lease of one-half part but not exceeding one hundred square miles in area, to be chosen by the permittee, of the land covered by the permit.
The area so chosen by the permittee shall be in a compact form and, if surveyed, shall be described by the legal land surveys.
If unsurveyed, the area shall be surveyed either by the permittee or by the Minister at the expense of the permittee, and the land leased shall be conformed to and taken in accordance with the legal land surveys:
t Provided that lands which are not contiguous may be included in one lease, where conditions are such that because of any prior disposition or by reason of any apparently unfavourable geological structures or conditions a reasonable area of contiguous land is not available.
The permittee shall pay to the Minister such deposits to cover expenses of survey as are deemed sufficient by the Minister for that purpose, and any excess deposits may be repaid to the permittee or person entitled to such repayment.
:j:29. Upon the grant of a lease of a part of the land covered by a permit, the remainder of the land covered by the permit shall remain covered by the permit until the expiration of twelve months from the date of the lease first granted to the permittee, notwith-
*
Section 28 printed as amd. by s. 2 (ix.) of the amending Act of 1927 and by s. 12 of the amending Act of 1939.t Proviso ins. by s. 2 (ix.) of the amending Act of 1927.
t
Section 29 printed as amd. by s. 15 of the amending Act of 1929.Petroleum Acts. ss. 29A, 30.
standing that the period of the permit calculated as hereinbefore prescribed may have expired, and during such period of twelve months the permittee shall be entitled to a preferent right to a lease of the remainder or any portion of such remainder of the land covered by his permit.
If after the expiration of such period of twelve months the period of the permit calculated as hereinbefore prescribed has not expired, so much of the land as has not been acquired under a lease or leases by the permittee shall remain covered by the permit until the termination of the permit.
15
PART V.- PROVISIONS RELATING TO
LEASES.
*29A. Any person who applies to the nearest warden for a Lease to
lease and who establishes to the satisfaction of the Governor in f:~~on other
Council that he first discovered payable deposits of petroleum permittee.
within the limits of any land not covered by any permit and not being land proclaimed as not being open to permit or lease under section nine of this Act unless such person holds an authority to prospect within such proclaimed area shall be entitled as of right to, and the Governor in Council shall grant to such person, a lease not exceeding one hundred square miles in area of such land.
The area so applied for shall be in a compact form and if surveyed shall be described by the legal land surveys.
If unsurveyed, the area shall be surveyed either by the appli- cant or by the Minister at the expense of the applicant, and the land leased shall be conformed to and taken in accordance with the legal land surveys :
Provided that lands which are not contiguous may be included in one lease where conditions are such that because of any prior disposition or by reason of any apparently unfavourable geological structures or conditions a reasonable area of contiguous land is not available.
The applicant shall pay to the Minister such deposits to cover expenses of survey as are deemed sufficient by the Minister for that purpose and any excess deposits may be repaid to the applicant.
t30. Every permittee or other person applying for a lease or Bond or
-renewal of a lease shall furnish a bond in the form prescribed, with other. .
a qualified corporate surety or such other surety as the Minister securitty mf
. respec o
may accept, m a sum of not less than one thousand pounds, pro-lease.
viding for compliance with the terms and conditions of the lease and of this Act and for the protection of the interests of owners and occupiers of such improved land or private land (if any) as may be included in the area applied for, or such other security in cash or otherwise, conditioned as aforesaid, as the Minister thinks proper to accept.
* Section 29A ins. by s. 13 of the amending Act of 1939.
t Section 30, as amd. by s. 2 (x.) of the amending Act of 1927, and by s. 16 of the amending Act of 1929, rep. and news. 30 ins. in lieu thereof by s. 14 of the amending Act of 1939.
16
PART V.- l'ROVISIONS lRELATING TO
LEASES.
Form, etc., of lease.
Rent.
Commence- ment of drilling.
ss. 31-34. Petroleum Acts.
31. Every lease shall-
(a) Be in the form prescribed, with such variations as the Governor in Council may in special cases approve ; and (b) Confer upon the lessee the exclusive right to drill for, mine, extract, recover, remove, and dispose of all petroleum in or under the land demised, with the right to .construct and maintain thereon all works buildings plant waterways roads pipe-lines reservoirs tanks pumping stations and other structures necessary to the full enjoyment thereof; and
(c) Be for a period of twenty-one years with a preferent right in the lessee to renew the same for further periods of twenty-one years; subject, however, in the case of any and each renewal, to the laws in force at the date of such renewal relating to the amount and payment of royalties on petroleum and the amount and payment of rent with respect to the land demised.
*32. (1.) The lessee shall pay in advance, beginning with the date of the application for the lease, a rental at the rate of ten pounds for every square mile or part thereof per annum for and in respect of the land demised, and such payment shall continue to be made annually during the currency of the lease.
(2.) All rents shall be paid to the nearest Warden unless the Minister otherwise directs.
t33.
~34. ( 1.) Within three months, or such extended time not exceeding a total extension of three months as the Minister in his absolute discretion may allow, from the date of the execution of the lease the lessee shall proceed with reasonable diligence to instal (if not already installed) on the land demised a standard or other sufficient outfit and equipment, and shall commence drilling at least one well and shall continue such drilling with reasonable diligence to production or to a point where the well is proved unsuccessful to the satisfaction of the Minister.
The lessee shall thereafter drill and continue drilling with reasonable diligence at least one well at a time to production or to a point where the well is proved unsuccessful to the satisfaction of the Minister unless the Minister for any reason which he may deem sufficient consents in writing to suspension of drilling for any period to be specified in such written consent.
(2.) The lessee shall drill all necessary wells fairly to offset the wells of others on adjoining land on petroleum deposits.
*
Section 32 rep. and news. 32 substd. by s. 2 (xi.) of the amending Act of 1927 and amd. by s. 17 of the amending Act of 1929 and by s. 15 of the amending Act of 1939. This substituted section, as amended, is repealed and furthers. 32 is substd. therefor by s. 7 of the amending Act of 1958.t Section 33 rep. by s. 8 of the amending Act of 1958.
t Section 34 printed as amd. by s. 2 (xii.) of the amending Act of 1927, and by s. 16 of the amending Act of 1939.
Petroleum Acts. ss. 35-37. 17
PAR!!! V.- PBOVISIONS
35. The lessee shall furnish annually and at such intervening ~~~~To
times as the Minister may require in the manner and form Plans and
prescribed by the Minister- reports.
(i.) A plan showing all development work and improve- ments on the land demised and other relative information, with a report as to all buildings, structures, and other works placed in or upon the land demised;
(ii.) A statement as to the amount and grade of petroleum produced and sold during the preceding twelve months or such shorter period as may be prescribed by the Minister and the amount received therefor;
(iii.) If the lessee is a company or corporation, a report in detail as to the stockholders or shareholders and debenture-holders or other mortgagees.
36. The lessee shall exercise reasonable diligence in drilling Diligence.
and operating wells for the petroleum on the land demised and shall continue working so long as petroleum can be secured in payable quantities, unless consent to suspend operations temporarily is granted b'y the Minister.
37. With respect to the use and occupation by a lessee of Use ant private land or improved land comprised within the land demised, ~~~~~n
every lessee shall- area on
(i.) As against the owner or occupier only of any such land, k:;::~e~
but not otherwise, be and be deemed to be in occupation land.
of only such area of such land as he from time to time requires for effectively carrying on and adequately protecting all the mining operations and the storing, refining, transporting, and communication works in connection with all the lessee's mining operations carried on or to be carried on from time to time or at any time during the term of the lease or any extension thereof, together with all rights and easements incidental to such occupation;
(ii.) During such time have the right by himself, his agents or workmen, to take and divert water from any natural spring, lake, pool, or watercourse situated on or flowing through any such land, and may use such water for any purpose necessary or incidental to the mining operations and to the bona fide occupation of the land leased; and may cut and use any timber on any such land for building purposes, construction works, firewood, or other necessary purposes; and may depasture on such land all stock used in connection with all such mining or other operations or used by workmen or employees of such lessee; subject however to any conditions prescribed with respect to payment for water timber or agistment in cases where the making of such payment is deemed necessary;
(iii.) Cause to be surveyed and securely fenced each surface S~ey of
area on any such land which he requires so as to mmmg area.
effectively carry on and adequately protect his mining operations and works.
18
PART V.
PROVISIONS- RELATING TO
LEASES.
Surrender and deter- mination of lease.
Proceedings for forfeiture.
ss. 38-40A. Petroleum Acts.
38. The lessee may, with the consent of the Minister in writing, surrender and terminate the lease upon thE;~ payment of all rents royalties and other obligations due and payable to the Crown and upon payment of all wages and moneys due and payable to the workmen employed by the lessee and upon proof satisfactory to the Minister that the public interest will not be impaired, but in no case shall such surrender be effective until the lessee has made full provision for conservation and protection of the property.
Upon the acceptance of such surrender by the Minister the lessee shall be relieved of all future obligations under the lease.
The lessee may with the like consent surrender to the Crown any legal subdivision of the area comprised within the lease. · 39. If the lessee fails to comply with the provisions of this Act or makes default in the performance or observance of any of the terms covenants and stipulations of the lease, and such default continues after service of written notice thereof has been given by the Minister to the lessee, then the Minister may institute approc priate proceedings for the forfeiture and cancellation of the lease in accordance with the provisions of the Mining Acts.
But this provision shall not be construed to prevent the exercise by the Minister of any legal or equitable remedy which he might otherwise have.
The waiver of any particular cause of forfeiture shall not prevent the forfeiture and cancellation of the lease for any other
PART VI.- c~use of forfeiture or for the same cause occurring at any other
PROVISIONS time.
APPLICABLE TO PERMITS AND
LEASES.
PART VI.-PROVISIONS APPLICABLE TO PERMITS AND LEASES_
Signing of 40. Every application for a permit or lease made by a:c.
applications. individual person or association of persons must be signed in person
Royalty,
by him or by each of them, as the case may be.
Every application for a permit or lease by a company or corporation must be made by a duly authorised attorney, under power of attorney in that behalf.
-"40A. ( 1.) Any person who produces any petroleum shall, subject to this section, pay a royalty, computed at the rate of ten per centum, on the selling value of all crude oil, casinghead pet- roleum spirit, and natural gas that he produces.
(2.) Royalty shall not be payable in respect of-
(i.) Any crude oil, casinghead petroleum spirit, or natural gas which is unavoidably lost or is returned to the natural reservoir ;
(ii.) Any crude oil, casinghead petroleum spirit, or natural gas which is used for the purposes of petroleum produc- tion or any incidental purposes (including the heating and lighting of the dwellings of employees engaged in connection with the work of petroleum production and the heating and lighting of buildings maintained to provide social amenities for those employees and their families);
(iii.) Any natural gas which, or the product of which, is not sold.
*
Section 40A ins. by s. 9 of the amending Act of 1958.Petroleum Acts. ss. 41, 42. 19
PART VI.-
(3.) There shall be set off against the amount of royalty Al:ii'ci~:?ff8To payable in any year under this section the amount of any rental PEruTs AND
paid in respect of that year and, where the amount of rental so EAsEs.
paid exceeds the royalty, no royalty shall be payable for the year.
( 4.) For the purpose of enabling the royalty payable to be computed, the person shall in each month furnish to the Under Secretary, Department of Mines, a statement in the prescribed form showing the quantity and selling value of crude oil, casing- head petroleum spirit, and natural gas produced during the pre- ceding month, and giving such other information as may be prescribed.
( 5.) The person shall, at the request of the Under Secretary, Department of Mines, or of any person authorised by him to make the request, produce to the Under Secretary or to that person, all books, accounts, and other records in relation to such production and the operations and transactions carried on thereunder or in connection therewith and shall permit the Under Secretary or that person to inspect and make copies of those books, accounts, and records.
( 6.) In this section ''selling value'' means-
(i.) In relation to any oil spirit or gas which is sold, the price actually realised less the expenses (if any) incurred in transporting the oil, spirit, or gas from the site of the well or borehole to the point of delivery to the buyer ;
(ii.) In relation to any oil, spirit, or gas which is treated before sale, its value in its natural condition at the top of the well or borehole and before treatment.
(7.) The royalty shall be payable on a monthly basis and payments shall be made to the nearest Warden or to the Under Secretary, Department of Mines, within thirty days of the last day of every month or such extended time as the Minister may approve.
41. No permit or lease or any land covered or demised thereby Assignment
or any interest in such permit, lease, or land shall be directly or of lease.
indirectly assigned, transferred, sublet, or be made the subject of any trust, except with the consent of the Minister first had and obtained, and any such dealing with such permit, lease, or land made without such consent shall be void.
The Minister may require such information concerning any proposed transfer, assignment, or subletting as he considers necessary or advisable.
The Minister shall not be bound to consent to any such assign- ment, transfer, or subletting.
A mere right to receive a permit or lease is not assignable.
42. (1.) Any interest in any permit or lease held in violation Forfeiture
of this Act shall be forfeited to the Crown by appropriate proceed-
t
::cessings instituted by the Minister for that purpose in accordance with 0 mg.
the provisions of the Mining Acts :
