Petroleum lease obligations for overlapping tenures

Pre-grant obligations for petroleum lease (PL) applicants

Prior to grant, there are notification requirements and for an overlapping mining lease (ML) you must negotiate a joint development plan (JDP).

Notification requirements

Petroleum production notice

A petroleum production notice must be given to a coal resource authority holder within 10 business days after the PL holder applied for the grant. (Mineral and Energy Resources (Common Provisions) Act 2014 (MERCP Act) s. 141)

This notice must contain a proposed JDP. The ML holder must consider the JDP and negotiate in good faith. (MERCP Act s. 131(1))

Contents of notices

Learn what information is required for each overlapping notice.

Joint development plan

A JDP details arrangements within an overlapping area. Where the overlapping tenure is a ML, an agreed JDP must be established within 12 months of the petroleum production notice, or within 9 months of the appointment of an arbiter. (MERCP Act s. 142)

Once the JDP is established, you must notify the Chief Executive within 20 business days.

The development plan for the PL must be consistent with the JDP.

Post-grant obligations for PL holders

There are continuing notification requirements and obligations regarding overlapping resource authorities after a PL is granted.

Notification requirements

Expedited access notice

You are required to provide a negotiation notice to an ML (coal) holder before entering an overlapped area. You must negotiate either a conduct and compensation agreement, a deferral agreement or an opt-out agreement. (MERCP Act s. 84)

However, you may expedite access to an overlapping area (other than an initial mining area (IMA) or simultaneous operating zone (SOZ)) to carry out an authorised activity if you:

• give the ML (coal) holder an expedited entry notice and
• first enter the overlapping area at least 10 business days after you give the ML (coal) holder the expedited entry notice.

Contents of notices

Learn what information is required for each overlapping notice.

Amending a joint development plan

An agreed JDP may be amended at any time.

Whoever receives a proposal for an amendment must negotiate in good faith. (MERCP Act s. 146(2))

If parties cannot agree on a JDP within 6 months of receiving the advance notice, you must apply for arbitration, or both parties can lodge a joint application.

Joint Interaction Management Plan

A joint Interaction management plan (JIMP) identifies and controls the hazards and risks of the overlapping operations. You must negotiate a JIMP to ensure safety obligations are met.