Onshore Production Guidelines

Onshore production is administered under the Petroleum Act 2000 (SA) and Petroleum Regulations 2000. The area to which this Act applies covers all of onshore South Australia exclusive of Commonwealth lands; it extends south to the State Territorial Sea Baseline* and includes the waters of Spencer Gulf and Gulf St Vincent.

ONSHORE PRODUCTION

ACT

REFERENCE
Title of tenement Petroleum Production licence (PPL).
Who can apply An individual, a body corporate (i.e. a company) an unincorporated association of persons and bodies corporate (i.e. a joint venture involving several persons and/or companies).
When application can be made Following discovery of economic quantities of a regulated resource within an exploration or retention licence.

s.35(1)
Maximum area Twice the area of the field concerned, or 100 km2, whichever is the smaller.

s.37
Application fee (Exempt from GST). $3,328

s.65(1)(e)
Security (to ensure compliance with licence conditions) Specified in letter of offer.
Term of licence Unlimited.

s.40
Annual rental payable (Exempt from GST). Minimum $2,815 or $484 per km2 whichever is greater*.

s.78(1)
Minimum work commitments Not applicable.
Minimum expenditure commitments Not applicable.
Area to be relinquished on each renewal. Not applicable.
Fees for Minister s consent to dealings in licence (Exempt from GST). $1,663 per transaction (document).

s.114
Fee for inspection of Register

(Exempt from GST).

 $166

s.118
Method of application An application for a licence,

(a) must be addressed to the Minister; and

(b) must be signed or executed by the applicant; and

(c) must include, or be accompanied by, the following information or material (in addition to the material required by the Act):

  1. The full name, business address and telephone number of the applicant;
  2. The name and telephone number of a person who can be contacted about the application;
  3. A description of the area to which the application relates, using co-ordinates in a form determined or approved by  the Minister, and, if available, cadastral boundaries;
  4. A map indicating the area or route to which the application relates;
  5. Information on the size of the area to which the application relates, expressed in square kilometres;
  6. In the case of an incorporated body a copy of the body s most recent audited annual financial statements, or in any other case statements that demonstrate the expected financial position of the applicant over the anticipated term of the licence (or a shorter term determined by the Minister);
  7. A statement of the technical qualifications and experience of the applicant;
  8. If the application is being made by more than one person information on the interest that each person will have in the licence (which may be expressed as a percentage);
  9. Must be accompanied by the prescribed fee.
Penalty for non-payment of annual rental fees All fees are payable in advance. Fees not paid by the due date may attract of the greater of $1000 or 10% of the outstanding fee.  In addition, interest may be imposed on outstanding fees at the rate of 6% per annum. 

s.78(2)
Licence variations On application by the licensee, the Minister may at any time during the term of the licence, vary or revoke a condition of the licence or attach new conditions to the licence.

s.38(4)
Environmental conditions As set out in the Regulations and licence documentation, any special conditions will be outlined in the letter of offer attached to the licence.
Surrenders (partial or whole of licence) The Act requires the licensee to apply to the Minister for permission to surrender.

Surrenders are only permitted if the licensee has fulfilled all the terms and conditions of the licence.

Licensees are required to lodge all outstanding data on their licences and carry out the clean-up and rehabilitation of their licence areas (where necessary) as a condition of surrender. Surrenders are effective from the end of the appropriate year of the term of the licence (unless specified otherwise).

s.89
Required notice of entry to landholders Not applicable.
Gazettals Gazettals occur on:

(a). Grant of licence;

(b). Suspension of licence;

(c). Surrender of licence;

(d). Cancellation of licence.

s.92
Suspension and cancellation The Act provides for suspension and/or cancellation for failure to comply with licence conditions.

s.91
Royalty For a regulated substance 10% of the value at the wellhead.

For geothermal energy 2.5%.

Royalty is not payable in respect of:

(a). Petroleum returned to the pool, or destroyed or dissipated in accordance with sound petroleum production practices.

(b). Petroleum used in the course of operations or for purposes incidental thereto.

s.43(2)

 

s.43(3)

s.43(2)

Fees current as at 1 July 2008.

* The annual licence fee for a low level supervision operator may be reduced by an amount not exceeding 50%