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Guideline
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Environmental Protection Agencywww.epa.qld.gov.au ABN 87 221 158 786
Environmental regulation of petroleum activities
Petroleum industry regulatory framework
Table of Contents
Introduction..............................................................................................................................2Purpose and objectives............................................................................................................2Legislation................................................................................................................................3Role of the Environmental Protection Agency..........................................................................3Role of the Department of Natural Resources and Mines........................................................4Environmental authorities ........................................................................................................4
Level 2 environmental authorities .........................................................................................4Level 2 Code Compliant Authorities...................................................................................4Level 2 non-code compliant authorities..............................................................................5
Level 1 environmental authorities .........................................................................................6Project authorities .................................................................................................................6
Environmental impact assessment for petroleum activities......................................................7Environmental values............................................................................................................7EIS under the Environmental Protection Act 1994................................................................8EIS under State Development and Public Works Organisation Act 1971 .............................8EIS under Environment Protection and Biodiversity Conservation Act 1999 ........................8
Application of the Integrated Planning Act 1997 ...................................................................8Environmental management documents..................................................................................8Role of the Land and Resources Tribunal................................................................................9Financial assurance.................................................................................................................9
Amendments..........................................................................................................................10Transfers................................................................................................................................11Surrenders.............................................................................................................................11Transitional provisions ...........................................................................................................13Enforcement ..........................................................................................................................13Related guidelines .................................................................................................................13Glossary.................................................................................................................................14References ............................................................................................................................16
Approved By ..........................................................................................................................16
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Related guidelines
Guideline - Introduction to policies and guidelines for impact assessment
Guideline - Principles and objectives of impact assessment
Guideline - Environmental impact assessment process for petroleum projects
Introduction
On 1 January 2005, a new legislative framework for the regulation of upstream petroleum and pipeline
industries commenced. The Petroleum and Gas (Production and Safety) Act 2004 (P&G Act) combined the
previous regulation of petroleum industry under the Petroleum Act 1923 and the Gas Act 1965into a single
piece of legislation. The Petroleum Act 1923 has been retained to regulate some petroleum tenures granted
prior to 1993 because of native title implications.
Prior to 1 January 2005, environmental regulation of the upstream petroleum industry was administered under
the Environmental Protection Act 1994 (EP Act) and the former Department of Mines and Energy policy
framework Environmental Management Policy for Activities under Petroleum Tenures. The policy relied upon a
code of practice for managing environmental impacts for the majority of activities and Environmental
Management Plan (EM Plan) for projects that had more significant potential environmental impacts. Both the
code and the EM Plan were enforced through the Petroleum Act 1923.
The introduction of the P&G Act necessitated significant amendments to the EP Act. The Environmental
Protection and Other Legislation Amendment Act 2004 (EPOLA 2004) amended the EP Act to provide for the
regulation of petroleum activities. These amendments created a head of power for the administering authority to
regulate environmental matters associated with petroleum activities. The EP Act will retain most of the existingprovisions. Some new provisions are necessary given the separation of tenure matters under the P&G Act and
environmental management matters under the EP Act.
Under the new arrangements, the Environmental Protection Agency (EPA) will have responsibility for
environmental impact assessment, administration of environmental authorities, as well as compliance, auditing
and monitoring of environmental management of petroleum activities. The introduction of the new legislation will
result in the majority of petroleum activities being regulated by codes of environmental compliance. Adoption of
these codes is expected to provide certainty and consistency in relation to the administration of environmental
regulation of the upstream petroleum and pipeline industries.
Purpose and objectives
The purpose of this guideline is to provide a clear and comprehensive guide on the regulatory framework
applying to the upstream petroleum industry in Queensland. The guideline describes the roles of the respective
government agencies, the assessment and decision-making processes, petroleum authority dealings,
rehabilitation, environmental audits, enforcement and other relevant issues such as the role of the Land and
Resources Tribunal.
The objectives of this guideline are to:
Inform all stakeholders of the structure and content of the new regulatory framework; and
Provide clear direction to the upstream petroleum industry on the regulatory requirements and
administrative functions for the environmental management of petroleum projects throughout the life of
the project.
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Legislation
To implement the new petroleum legislation it was necessary to significantly amend the EP Act as well as make
minor amendments to several other statutory instruments. The key feature of the amendments to the EP Act isthe inclusion of a new chapter specific to petroleum activities (chapter 4A).
The object of the amendments is to give the administering authority the assessment and decision-making
powers for all applications for, and related to, environmental authorities (petroleum activities) and enforcement
of the new environmental legislation. In developing the legislation, the EPA has committed to providing an
integrated assessment and decision-making process for all environmental authority applications for petroleum
activities. A petroleum activity is defined in the EP Act as an activity:
a) authorised on a petroleum tenure granted under the Petroleum Act 1923; or
b) authorised on a petroleum authority granted under the P&G Act; or
c) exploring for or mining minerals under a licence, permit, pipeline licence, primary licence, secondary
licence or special prospecting authority granted under the Petroleum (Submerged Lands) Act 1982; or
d) rehabilitating or remediating environmental harm because of an activity mentioned in paragraphs (a) to
(c); or
e) action taken to prevent environmental harm because of an activity mentioned in paragraphs (a) to (d);
or
f) required under a condition of an environmental authority (petroleum activities); or
g) required under a condition of an environmental authority (petroleum activities) that has ended or ceased
to have effect, if the condition:
i. continues to apply after the authority has ended or ceased to have effect; and
ii. has not been complied with.
Role of the Environmental Protection Agency
The EPA has established the necessary procedures and systems to oversee the environmental regulation of
petroleum activities. These procedures and systems are aimed at providing a more targeted, responsive,
streamlined approach to the environmental regulation of the petroleum industry.
The key roles of the EPA are to:
develop the appropriate support systems (i.e. policies, guidelines and procedures) to implement the newpetroleum legislation;
provide assistance and advice to the petroleum industry on aspects of carrying out petroleum activities
in accordance with the requirements of the EP Act;
assess application documents and other supporting information (e.g. Environmental Management Plan)
and decide applications for environmental authorities (petroleum activities);
decide whether the proposed project or the proposed amendment for a level 1 petroleum project
requires an environmental impact statement (EIS);
issue environmental authorities for petroleum activities;
set the amount of financial assurance that the holder of the environmental authority must lodge and
decide any applications for the discharge of financial assurance during the life of the petroleum project;
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assess applications for the amendment, transfer or surrender of environmental authorities;
assess final rehabilitation reports submitted with all applications to surrender an environmental authority
to decide whether or not rehabilitation has been carried out to the satisfaction of the EPA; and
conduct environmental audits of all petroleum projects to assess compliance with the conditions of the
environmental authority.
Role of the Department of Natural Resources and Mines
The introduction of the new petroleum legislation will significantly change the role of the Department of Natural
Resources and Mines (NR&M). The amendments provide a more focused industry promotion and management
role for NR&M in the development of petroleum resources in Queensland. NR&M will have the responsibility for
the upstream sector of the industry including transmission lines as well as safety for all aspects of the petroleum
industry. The Office of Energy, within the Department of Treasury will be responsible for distribution pipeline
licensing, issuing retail authorities, third party pipeline access regime and insufficiency of supply. NR&M will be
responsible for administering the Petroleum Act 1923, Petroleum (Submerged Lands) Act 1982and the
Petroleum and Gas (Production and Safety) Act 2004 (the petroleum legislation).
The key roles of NR&M are to:
promote the petroleum industry and the flow on benefits of a productive industry;
provide advice to industry on preparing combined applications;
accept all applications for petroleum authorities and environmental authorities (petroleum activities);
grant and regulate petroleum authorities; and
provide a project facilitation role for applications for government approval of petroleum projects.
Environmental authorities
Under the Environmental Protection Regulation 1998(EP Regulation), a petroleum activity is either a level 1 or
a level 2 environmentally relevant activity and therefore requires an environmental authority under the EP Act.
The holder of a petroleum authority cannot carry out petroleum activities unless the environmental harm for
those activities are authorised by an environmental authority for the related petroleum authority. Therefore, the
applicant for a petroleum authority must also apply for an environmental authority (petroleum activities). All
applications for new petroleum projects must be made on the approved application form and lodged with the
administering authority.
Level 2 environmental authorities
A level 2 petroleum activity is a petroleum activity that under section 20 (1) of the EP Act, is prescribed as a
level 2 environmentally relevant activity. These activities have a low risk of serious environmental harm. An
environmental authority issued for a level 2 petroleum activity can either be a code compliant authority or a non-
code compliant authority. A code compliant authority is an environmental authority (petroleum activities) issued
under part 2, division 3, subdivision 1 of the EP Act. A non-code compliant activity is any environmental
authority (petroleum activities) other then a code compliant authority.
Level 2 Code Compliant Authorities
The assessment process for a level 2 code compliant authority is based on whether the applicant can comply
with the standard environmental conditions (SECs) in the relevant code of environmental compliance andoperate within the criteria for level 2 petroleum activities. The criteria are:
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a) potential harm proposed to environmental values caused by the proposed petroleum activities can be
managed through compliance with the standard environmental conditions of the relevant code of
environmental compliance; andb) proposed petroleum activities do not include a level 1 environmentally relevant activity prescribed in
schedule 1 of the EP Regulation.
The application must:
a) be made to the administering authority in the approved form;
b) describe each relevant petroleum authority and all relevant petroleum activities;
c) certify that the applicant can comply with the relevant code of environmental compliance; and
d) be accompanied by the prescribed application fee.
If the application complies with the above requirements, the administering authority will grant the application andissue a level 2 code compliant environmental authority (petroleum activities).
Level 2 non-code compliant authorities
If there are no relevant codes of environmental compliance for the relevant petroleum activities or the applicant
elects not to comply with the codes in carrying out the relevant petroleum activities for the petroleum authority,
then the applicant may apply for a level 2 non-code compliant activity. The application must:
a) be made to the administering authority in the approved form;
b) describe each relevant petroleum authority and all relevant petroleum activities;
c) be supported by enough information to allow the administering authority to decide the application (e.g.description of the proposed project and the likely environmental impacts); and
d) be accompanied by the prescribed application fee.
In deciding whether to grant or refuse the application, the administering authority must comply with any
Environmental Protection Policy (EPP) requirement. In assessing these requirements, the administering
authority must also consider:
a) the standard criteria;
b) any additional information for the application;
c) any suitability report obtained for the application;
d) any properly made submission for the application;
e) any views expressed at a conference held in relation to the application; and
f) the status of the application under the petroleum legislation.
If the administering authority decides to grant the application it will issue a level 2 non-code compliant
environmental authority (petroleum activities). In determining the conditions of the environmental authority the
administering authority must include any condition required under an EPP. In addition, the administering
authority may impose conditions on the environmental authority it considers necessary or desirable.
Further information on level 2 petroleum projects is contained in the guideline Environmental impact
assessment process for petroleum projects.
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Level 1 environmental authorities
A level 1 petroleum activity is a petroleum activity that under section 20 (1) of the EP Act is prescribed as a level
1 environmentally relevant activity (ERA). Petroleum projects that have petroleum activities that are level 1environmentally relevant activities will be level 1 petroleum activities. These activities have a medium to high
risk of causing serious environmental harm.
Applications for level 1 petroleum activities must:
a) be made to the administering authority in the approved form;
b) describe each relevant petroleum authority and all relevant petroleum activities;
c) be supported by enough information to allow the administering authority to decide the application (e.g.
description of the proposed project and the likely environmental impacts); and
d) be accompanied by:i. an Environmental Management Plan (EM Plan)
ii. the prescribed application fee.
After receipt of the application, the administering authority may decide an EIS is required. However, despite any
decision of the administering authority the Minister for Environment may, at any time before a decision is made
on the application, decide an EIS is required for the application.
Applications for level 1 petroleum activities must be publicly notified within two business days of making the
application. An interested person may make a written submission to the administering authority about the
application for the environmental authority. Any properly made submission during the submission period must
be considered when the administering authority decides the application.
In deciding whether to grant or refuse the application, the administering authority must comply with any EPP
requirement. In assessing these requirements the administering authority must also consider:
a) the standard criteria;
b) any additional information for the application;
c) suitability report obtained for the application;
d) properly made submission for the application;
e) views expressed at a conference held in relation to the application;
f) the EM Plan for the application;
g) the status of the application under the petroleum legislation; and
h) EIS (if applicable).
If the administering authority decides to grant the application it will issue a level 1 environmental authority
(petroleum activities). In determining the conditions of the environmental authority the administering authority
must include any condition required under an EPP. In addition, the administering authority may impose
conditions on the environmental authority it considers necessary or desirable.
Project authorities
A petroleum project is all activities carried out, or proposed to be carried out, under one or more of the followingin any combination as a single integrated operation:
a) a 1923 Act petroleum tenure granted under the Petroleum Act 1923;
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b) a petroleum authority granted under the P&G Act;
c) a licence, permit, pipeline licence, primary licence, secondary licence or special prospecting authority
granted under the Petroleum (Submerged Lands) Act 1982.
For example, a petroleum project may consist of a series of wells and associated infrastructure (e.g.
evaporation ponds) connected by gathering pipelines to a production facility. Whilst such an operation may take
place over several different petroleum authorities, all activities will form part of a single petroleum project.
A person may only make an application for one environmental authority (petroleum activities) for all petroleum
activities in a petroleum project. If the administering authority grants the application, it may issue:
a) one environmental authority for all the activities; or
b) two or more environmental authorities for the activities.
The holder of the authority cannot apply for a separate environmental authority (petroleum activities) for anadditional petroleum activity proposed to be carried out as part of a petroleum project. This section applies
whether or not the additional activity is proposed to be carried out under another petroleum authority as part of
the petroleum project. If an additional petroleum activity is proposed as part of a petroleum project, an
amendment to the existing authority is required and this is achieved by making an application for an amendment
to the existing environmental authority. For further information refer to section 11 and the information sheet -
Amending an environmental authority (petroleum activities).
For existing petroleum project authorities (i.e. pre 1 January 2005), the administering authority may, at any time,
decide whether the constituent parts of an existing authority together form a single petroleum project under the
amended EP Act. If the administering authority decides the constituent parts are for different petroleum projects,
it may cancel the constituent parts as environmental authorities and issue the former holder of the cancelled
constituent parts new environmental authorities (petroleum activities) for each of the different petroleum
projects. The conditions of the new environmental authorities must be the conditions of the cancelled constituent
parts that applied to the petroleum project, subject to any necessary changes.
Environmental impact assessment for petroleum activities
Under the EP Act a proponent will be required to prepare an Environmental Impact Statement (EIS) if the
administering authority or the Minister decides an EIS is appropriate for the petroleum project, based on criteria
in the EPA guideline Environmental impact assessment process for petroleum projects. The proponent will be
responsible for drafting the terms of reference (ToR) and advertising the draft terms of reference, as well as
making any amendments following receipt of submissions on the draft TOR prior to the administering authority
setting the final ToR. The proponent is also responsible for the development and advertising of the draft EIS and
making any amendments following the receipt of submissions on the draft EIS, prior to the administering
authority issuing the EIS assessment report.
The EP Act also provides for the proponent to prepare a voluntary EIS if it is considered the project may require
an EIS. The proponent must apply to the administering authority for approval to do so.
If the project is determined to be of state or national significance then the proponent may be required to prepare
an EIS under either the State Development and Public Works Organisation Act 1971 and/or the Environment
Protection and Biodiversity Conservation Act 1999 (Commonwealth).
Environmental values
One of the main aims of an EIS and environmental management plan (EM Plan) is to identify the relevant
environmental values likely to be affected by the proposed activities and state the environmental protection
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commitments proposed to protect and enhance the environmental values. The environmental impacts should be
in terms of the potential adverse and beneficial impacts of the activities on environmental values. Environmental
protection commitments are expressed as objectives, standards, and measurable indicators to be met inprotecting the environmental values. An example is the objectives for progressive and final rehabilitation or the
management of contaminated land.
EIS under the Environmental Protection Act 1994
The EIS process under the EP Act applies to:
a) any level 1 applications under chapter 4A - environmental authorities for petroleum activities, for which
the administering authority has decided that an EIS is required; or
b) where the administering authority has given approval to a proponent, to voluntarily prepare an EIS.
The guideline Environmental impact assessment process for petroleum projects provides more detail on the EIS
process in the EP Act.
EIS under State Development and Public Works Organisation Act 1971
The EIS process under the State Development andPublic Works Organisation Act 1971 (SDPWO Act) may be
used for petroleum projects in cases where the Coordinator-General declares the project to be a significant
project after considering the criteria in s29C of the SDPWO Act.
EIS under Environment Protection and Biodiversity Conservation Act 1999
Under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), the Commonwealth may
conduct environmental impact assessment processes on any proposal that has or will have, or is likely to have,
a significant impact on a matter of national environmental significance, for example, the world heritage values of
a declared World Heritage property.
The EPBC Act requires a person proposing such a proposal to refer the action to the Commonwealth Minister
for the Environment for a decision on whether the action needs an approval (i.e., is a controlled action). The
States role in this decision is to provide advice to the Commonwealth minister. If a Commonwealth
environmental approval is required, this will be in addition to relevant State approvals and the Commonwealth
will seek certification from the State that all other environmental matters have been adequately assessed,
before approving or refusing the proposal.
Application of the Integrated Planning Act 1997
The Integrated Planning Act 1997will not apply to petroleum activities carried out under a relevant petroleum
authority issued under the petroleum legislation.
Environmental management documents
An applicant for a level 1 environmental authority (petroleum activities) is required to submit an environmental
management plan (EM Plan). The purpose of the EM Plan is to propose environmental protection commitments
that the administering authority can use to determine conditions of an environmental authority (petroleum
activities). The required content for an EM Plan is set out in the EP Act.
The guideline Preparing an environmental management plan (EM Plan) for level 1 petroleum activities provides
specific information on the required content of the environmental management document. The administering
authority will assess the EM Plan during the process of deciding the application. The administering authority will
refer to the EM Plan and other requirements in setting the site-specific conditions of level 1 environmentalauthorities.
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From the application date to the review date, the administering authority must keep the application documents
open for inspection.
Role of the Land and Resources Tribunal
The Land and Resources Tribunal is an independent judicial body established under the Land and Resources
Tribunal Act 1999. It is a court of record. The role of the Tribunal is to hear disputes associated with proposed
resource development and other land management issues. The Tribunal has jurisdiction to:
Hear applications for injunctions to prevent interference with culturally significant items;
Determine objections concerning state compulsory acquisitions for significant infrastructure facilities for
third parties;
Be the independent state body to decide native title issues relating to mining and petroleum projects;
Be the independent body under the Native Title Act 1993 (Cth) to hear native title parties objections tosome future acts;
Recommend and decide matters regarding certain indigenous land use agreements; and
Have exclusive jurisdiction to enforce and interpret negotiated agreements about native title, mining and
petroleum projects; and
Hear appeals against original decisions under the EP Act.
The members of the Tribunal (the president and deputy presidents) hold judicial-equivalent positions. The non-
presiding members must have extensive administrative experience in cultural heritage, indigenous issues,
mining and petroleum activities, mediation, native title, land or other relevant issues.
Financial assurance
Under the EP Act, the administering authority may require a financial assurance to be lodged as a condition of
an environmental authority (petroleum activities). Financial assurance is held as a security for:
1. complying with an environmental authority (petroleum activities), environmental management program
(EMP) or site management plan (SMP) and any conditions of the authority (e.g. land rehabilitation
conditions), program or plan; and
2. costs or expenses, or likely costs or expenses if the administering authority takes action to:
a. prevent or minimise environmental harm or rehabilitate or restore the environment in relation to
carrying out of an activity under an environmental authority or an EMP for which financialassurance has been given.
b. carry out work to remediate land managed under a SMP for approval for which financial
assurance has been given; or
c. to ensure compliance with an environmental authority, EMP or SMP or any conditions of the
authority, program or plan, for which financial assurance has been given.
Financial assurance may be required before an environmental authority (petroleum activities) is either issued or
transferred. The administering authority will decide, in accordance with the guideline Financial assurance for
petroleum activities, what form of financial assurance is considered appropriate. For example, a financial
assurance may be lodged in the form of cash or bank guarantee. The financial assurance must be calculatedusing third party costs.
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The requirement to maintain the financial assurance will remain in place until the administering authority is
satisfied that no claim is likely to be made on the assurance. The financial assurance may be amended
following the amendment of an environmental authority or an audit of the petroleum activities by theadministering authority.
The holder of an environmental authority may apply to amend or discharge their financial assurance at any time.
This can be done by submitting a new or revised EM Plan or an application to amend or discharge financial
assurance. The administering authority may require an audit statement to be lodged as part of the assessment
of the application for amendment or discharge of financial assurance. The audit statement is used to verify the
amount of financial assurance required.
For level 2 petroleum activities the financial assurance must be calculated by reference to the schedule of
rehabilitation costs outlined in appendix C of the code of environmental compliance for petroleum exploration
and production. For level 1 petroleum activities the financial assurance must be calculated by reference to the
schedule of rehabilitation costs outlined in the EM Plan for the project. The holder of the environmental authoritymust provide the administering authority with the financial assurance in the amount and form required by the
administering authority either at the time of submission of a work program or development plan for the relevant
application or granted petroleum authority or prior to the commencement of the activity.
On commencement of the new petroleum legislation, existing projects with security deposits that satisfied the
requirements under the Petroleum Act 1923 and the former Department of Mines and Energy (DME) policy
Environmental Management Policy for Activities under Petroleum Tenures, will be deemed to satisfy the
requirements of both the new petroleum legislation and the financial assurance requirements of the amended
EP Act. From 1 January 2005, the holders of petroleum authorities will be given a 12 month transitional period
during which security under the Petroleum Act 1923 and former DME policy for environmental matters will be
transferred to the administering authority for environmental matters under the EP Act.
Amendments
The holder of an environmental authority (petroleum activities) may, at any time, apply to the administering
authority to amend the environmental authority. Examples of when a holder may wish to make an amendment
application are:
to change a relevant petroleum activity from a level 1 petroleum activity to a level 2 petroleum activity;
the addition of a petroleum tenure, or the addition of a petroleum activity, to an existing environmental
authority (petroleum activities);
to complement an application under the P&G Act, to amend a relevant pipeline licence; or if a relevant petroleum authority is an authority to prospect and the holder has, under the P&G Act,
chapter 2, part 2, division 2, made an ATP-related application for a petroleum lease.
The application must be made to the administering authority:
a) in the approved form;
b) be supported by enough information to allow the administering authority to decide the application (e.g.
description of the proposed project and the likely environmental impacts); and
c) be accompanied by the prescribed application fee.
After receipt of the application, the administering authority must decide whether an EIS is required. However,despite any decision of the administering authority, the Minister for Environment may, at any time before a
decision is made on the application, decide that an EIS is required for the application.
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For amendments to level 2 code compliant activities, the holder may apply to amend a code compliant condition
or to impose new conditions on the authority. If the amendment is made, the authority will become a non-code
compliant authority. An amendment application can also be used to add a level 1 petroleum activity to a level 2environmental authority. If the administering authority decides that there will be a substantial increase in the risk
of environmental harm under the amended environmental authority, then the application will need to be publicly
notified.
In deciding whether to grant or refuse the application, the administering authority may grant the application if it is
satisfied that the amendment is necessary or desirable. In assessing these requirements the administering
authority must also consider the criteria that apply to deciding an application to obtain the environmental
authority (petroleum activities). If the administering authority decides to refuse the application the applicant may
appeal a decision on an application to amend a level 1 or level 2 environmental authorities (petroleum
activities).
Transfers
An application to transfer an environmental authority (petroleum activities) is required when the related
petroleum authority is to be assigned to a person who is not a holder of the environmental authority for the
petroleum authority. The application must be made to the administering authority:
a) in the approved form;
b) made by each of the following:
i. the holder of the environmental authority (petroleum activities);
ii. the proposed transferee;
c) be supported by enough information to allow the administering authority to decide the application; and
d) be accompanied by the prescribed application fee.
Applications for code compliant activities must be accompanied by a certification that the transferee can comply
with the relevant code of environmental compliance.
The applicants, together with the transfer application, may also make an amendment application for the
environmental authority (petroleum activities). However, the amendment application must not be granted before
the transfer application is granted or if the transfer application is refused.
The administering authority may also require the applicant to submit an audit statement for the environmental
authority. The audit statement must be made by or for the environmental authority holder and state the extent to
which activities carried out under each relevant petroleum authority have complied with the conditions of the
environmental authority.
Surrenders
The holder of an environmental authority (petroleum activities) may surrender whole or part of the authority at
any time. However, the holder must apply to surrender the environmental authority within the following time
periods.
a) 30 days after:
i. the petroleum authority is cancelled; or
ii. a reduction in the area of a relevant petroleum authority for the environmental authority under a
requirement of non-compliance action taken under the petroleum legislation; or
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b) 90 days before any of the following is to happen:
i. a relevant petroleum authority for the environmental authority is, according to its provisions, to
end other than by cancellation; or
ii. a relinquishment of part of the area of a relevant petroleum authority for the environmental
authority other than under a requirement of noncompliance action taken under the Petroleum
Act 1923 or the P&G Act; or
iii. a surrender of part of the area of a relevant petroleum authority for the environmental authority.
The holder of the environmental authority will not need to surrender the authority providing that, before the 90
day period ends, the petroleum authority (under the petroleum legislation) is renewed or continued in force, or a
replacement environmental authority (petroleum activities) for the environmental authority is issued to the
holder.The application must be made to the administering authority:
a) in the approved form;
b) be supported by enough information to allow the administering authority to decide the application; and
c) be accompanied by:
i. a final rehabilitation report (FRR) for the environmental authority (petroleum activities);
ii. an audit statement for the environmental authority; and
iii. the prescribed application fee.
The FRR must include enough information to allow the administering authority to decide whether the conditionsof the environmental authority have been complied with, whether the land has been satisfactorily rehabilitated
and describe any ongoing environmental management needs for the land. For level 1 petroleum activities, the
FRR must also state the extent to which activities carried out under each petroleum authority have been
consistent with the environmental protection commitments in the relevant EM Plan.
The audit statement must:
a) be made by or for the environmental authority holder; and
b) state the extent to which activities carried out under the environmental authority have complied with its
conditions and that the final rehabilitation report is accurate.
The holder of the environmental authority may also be required to make an amendment application for the partof the environmental authority not sought to be surrendered. In assessing an application to surrender an
environmental authority (petroleum activities), the administering authority is responsible for deciding whether or
not the final rehabilitation proposed by the holder of the authority is acceptable.
In deciding whether to grant or refuse the application, the administering authority must comply with any EPP
requirement. In assessing these requirements the administering authority must also consider:
a) the standard criteria;
b) the audit statement and final rehabilitation report that accompanied the application;
c) any relevant FRR assessment report; and
d) any other matter described under an environmental protection policy or regulation.
The administering authority may grant the application if:
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a) it is satisfied that the conditions of the environmental authority have been complied with; or
b) it is satisfied that the land to which the surrender application relates has been satisfactorily rehabilitated;
or
c) it has an approved EMP and it is satisfied the land will be satisfactorily rehabilitated under the program;
or
d) a suitability statement has been given for the land; and
i. the land has been removed from the environmental management register (EMR); or
ii. a site management plan (SMP) has been approved for the land.
Transitional provisions
At the commencement of the amended EP Act on 1 January 2005, all existing petroleum projects with:
a) level 1 licenses will be taken to be non-code compliant level 1 petroleum projects.
b) level 2 approvals will be taken to be non-code compliant level 2 petroleum activities.
c) integrated environmental authorities for petroleum activities may be converted by the administering
authority to petroleum project authorities. The conditions of each of the constituent parts will continue to
be an environmental authority of the type stated in the integrated environmental authority.
This is necessary to ensure that the environmental conditions for all petroleum activities remain the same as
they were under the amended petroleum legislation.
Applications for environmental authorities for petroleum activities in process and not yet decided will be taken to
be applications for either:
a) a level 2 non-code compliant activity ; or
b) a level 1 petroleum activity.
Applications for amendments, surrenders or transfers will be taken to be the corresponding type of application
under the new petroleum legislation.
Enforcement
The administering authority will be responsible for the enforcement of the conditions of all environmental
authorities (petroleum activities). Under the EP Act, the administering authority has the ability to issue penalty
infringement notices for breaches of the conditions of level 2 petroleum activities. For Level 1 authorities, theadministering authority has adopted a policy of focusing on negotiation and cooperation in the first instance for
such breaches. However, the administering authority is committed to responsible management of the
environmental impacts of the petroleum industry and will, if required, undertake prosecution action.
Related guidelines
The EPA has developed guidelines, information sheets and application forms to assist industry, government and
the community in relation to the introduction of the new legislation. The documents are available on the EPAs
web site http://www.epa.qld.gov.auand can be accessed via the following link: Ecoaccess>> Petroleum.
http://www.epa.qld.gov.au/http://www.epa.qld.gov.au/http://www.epa.qld.gov.au/7/31/2019 Petroleum Industry Regulatory Framework
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Guideline Introduction to policies and guidelines for impact assessment - provides the background tothe series of policies and guidelines available and under development, and introduces
related initiatives such as relevant agreements and legislation.
Guideline Principles and objectives of impact assessment - outlines the objectives of the EIAprocess and discusses the principles of EIA and what EIA should achieve.
Guideline Environmental impact assessment process for petroleum projects - provides and overviewof the impact assessment and approval processes for petroleum projects.
Guideline Preparing an environmental management plan (EM Plan) for a level 1 petroleum activities- contains guidance on the purpose and content of an EM Plan and how to prepare one.
Guideline Financial assurance for petroleum projects outlines the requirements for financial
assurance under the EP Act for petroleum activities.
Guideline Final rehabilitation reports for petroleum activities outlines the requirements of finalrehabilitation report and an overview of the surrender process for an environmentalauthority (petroleum activities).
InformationSheet
Amending an environmental authority (petroleum activities) outlines the process foramending an environmental authority for petroleum projects.
InformationSheet
Annual fee and return outlines the requirements to submit annual fees and returns forpetroleum projects.
InformationSheet
Application for an environmental authority (petroleum activities) provides an overview ofthe application and approval processes for petroleum projects.
InformationSheet
Codes of environmental compliance contains the standard environmental conditions forlevel 2 code compliant activities.
InformationSheet
Financial assurance for petroleum activities provides an overview of the financialassurance requirements for petroleum activities.
InformationSheet
Petroleum activities provides an overview of the regulation of petroleum activities underthe Environmental Protection Act 1994.
InformationSheet
Surrendering an environmental authority (petroleum activities) outlines the process forsurrendering an environmental authority.
InformationSheet
Transfer of an environmental authority (petroleum activities) - outlines the process fortransferring an environmental authority.
Glossary
EIA Environmental impact assessment is the process in which environmental management
is integrated into proposals.
Administering The administering authority means -
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authority (a) for a matter, the administration and enforcement of which has been devolved to
a local government under section 514 of the Environmental Protection Act 1994
the local government; or
(b) for all other matters the Chief Executive of the Environmental Protection
Agency; or
(c) another State Government department, authority, storage operator, board or
trust, whose role is to administer provisions under other enacted legislation.
Serious
environmental
harm
Serious environmental harm is defined in section 17 of the Environmental Protection
Act 1994 as causing actual or potential harm to environmental values that is
irreversible, of high impact or widespread or affecting values of high conservation
value or special significance. A threshold value of $50, 000 is set for the cost of such
harm or preventing, rehabilitating, restoring the environment to its condition before theharm.
Level 1 petroleum
activityA level 1 petroleum activity is a petroleum activity that, under section 20(1) of the
Environmental Protection Act 1994 is prescribed as a level 1 environmentally relevant
activity.
Level 2 petroleum
activity
A level 2 petroleum activity is a petroleum activity that, under section 20(1) of the
Environmental Protection Act 1994, is prescribed as a level 2 environmentally relevant
activity.
Petroleum activity See page 4.
Petroleum authority A petroleum authority is:
a) a 1923 Act petroleum tenure granted under the Petroleum Act 1923; or
b) a petroleum authority granted under the Petroleum and Gas (Production and
Safety) Act 2004; or
c) a licence, permit, pipeline licence, primary licence, secondary licence or
special prospecting authority granted under the Petroleum (Submerged Lands)
Act 1982.
Petroleum project A petroleum project is all activities carried out, or proposed to be carred out, under
one or more of the following, in any combination, as a single integrated operation:
a) a 1923 Act petroleum tenure granted under the Petroleum Act 1923;b) a petroleum authority granted under the Petroleum and Gas (Production and
Safety) Act 2004;
c) a licence, permit, pipeline licence, primary licence, secondary licence or
special prospecting authority granted under the Petroleum (Submerged Lands)
Act 1982.
Financial
assurance
Financial assurance means a security deposit, either cash or a bank guarantee,
held by the administering authority to cover the potential costs of rehabilitating
areas significantly disturbed by the petroleum activities.
Petroleum
legislation
The following Acts are collectively referred to as the petroleum legislation (section
76 of the Environmental Protection Act 1994) Petroleum Act 1923
http://www.legislation.qld.gov.au/http://www.legislation.qld.gov.au/http://www.legislation.qld.gov.au/http://www.epa.qld.gov.au/http://www.environment.gov.au/7/31/2019 Petroleum Industry Regulatory Framework
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Petroleum and Gas (Production and Safety) Act 2004
Petroleum (Submerged Lands) Act 1982.
References
Environment Protection and Biodiversity Conservation Act 1999. http://www.environment.gov.au
Environmental Protection Act 1994 and Environmental Protection and Other Legislation Amendment Act 2004
http://www.epa.qld.gov.au
http://www.legislation.qld.gov.au
Disclaimer:
While this document has been prepared with care, it contains general information and does not profess to offer legal,
professional or commercial advice. The Queensland Government accepts no liability for any external decisions or actions
taken on the basis of this document. Persons external to the Environmental Protection Agency should satisfy themselves
independently and by consulting their own professional advisors before embarking on any proposed course of action.
Approved By
(Signed) 15 February 2005
Signature Date
Director, Systems and Support Branch
Environmental Operations Division
Environmental Protection Agency
Enquiries:Ecoaccess Customer Service Unit
Ph. 1300 368 326
Fax. (07) 3115 9600