Guideline

Environmental regulation of petroleum activities

Petroleum industry regulatory framework

Table of Contents
Introduction .............................................................................................................................. 2 Purpose and objectives............................................................................................................ 2 Legislation................................................................................................................................ 3 Role of the Environmental Protection Agency.......................................................................... 3 Role of the Department of Natural Resources and Mines........................................................ 4 Environmental authorities ........................................................................................................ 4 Level 2 environmental authorities ......................................................................................... 4 Level 2 Code Compliant Authorities................................................................................... 4 Level 2 non-code compliant authorities.............................................................................. 5 Level 1 environmental authorities ......................................................................................... 6 Project authorities ................................................................................................................. 6 Environmental impact assessment for petroleum activities...................................................... 7 Environmental values............................................................................................................ 7 EIS under the Environmental Protection Act 1994 ................................................................ 8 EIS under State Development and Public Works Organisation Act 1971 ............................. 8 EIS under Environment Protection and Biodiversity Conservation Act 1999 ........................ 8 Application of the Integrated Planning Act 1997 ................................................................... 8 Environmental management documents.................................................................................. 8 Role of the Land and Resources Tribunal................................................................................ 9 Financial assurance ................................................................................................................. 9 Amendments.......................................................................................................................... 10 Transfers................................................................................................................................ 11 Surrenders ............................................................................................................................. 11 Transitional provisions ........................................................................................................... 13 Enforcement .......................................................................................................................... 13 Related guidelines ................................................................................................................. 13 Glossary................................................................................................................................. 14 References ............................................................................................................................ 16 Approved By .......................................................................................................................... 16
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Related guidelines Guideline Guideline Guideline Introduction to policies and guidelines for impact assessment Principles and objectives of impact assessment 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 1965 into 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 existing provisions. 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 is the 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. ii. continues to apply after the authority has ended or ceased to have effect; and 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 new petroleum 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 1982 and 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 noncode 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 and operate 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; and b) 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 and issue 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 1 environmentally 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. ii. an Environmental Management Plan (EM Plan) 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 following in 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 an additional 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 in protecting 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 and Public 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 1997 will 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 environmental authorities.

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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 to some 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 nonpresiding 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 financial assurance 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 calculated using 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 the administering 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 authority must 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 2 environmental 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. ii. the holder of the environmental authority (petroleum activities); 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. ii. the petroleum authority is cancelled; or 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. ii. a relevant petroleum authority for the environmental authority is, according to its provisions, to end other than by cancellation; or 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 a surrender of part of the area of a relevant petroleum authority for the environmental authority.

iii.

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. ii. iii. a final rehabilitation report (FRR) for the environmental authority (petroleum activities); an audit statement for the environmental authority; and the prescribed application fee.

The FRR must include enough information to allow the administering authority to decide whether the conditions of 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 part of 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. ii. the land has been removed from the environmental management register (EMR); or 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, the administering 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.au and can be accessed via the following link: Ecoaccess>> Petroleum.

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Guideline Introduction to policies and guidelines for impact assessment - provides the background to the series of policies and guidelines available and under development, and introduces related initiatives such as relevant agreements and legislation. Principles and objectives of impact assessment - outlines the objectives of the EIA process and discusses the principles of EIA and what EIA should achieve. Environmental impact assessment process for petroleum projects - provides and overview of the impact assessment and approval processes for petroleum projects. 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. Financial assurance for petroleum projects outlines the requirements for financial assurance under the EP Act for petroleum activities. Final rehabilitation reports for petroleum activities outlines the requirements of final rehabilitation report and an overview of the surrender process for an environmental authority (petroleum activities). Amending an environmental authority (petroleum activities) outlines the process for amending an environmental authority for petroleum projects. Annual fee and return outlines the requirements to submit annual fees and returns for petroleum projects. Application for an environmental authority (petroleum activities) provides an overview of the application and approval processes for petroleum projects. Codes of environmental compliance contains the standard environmental conditions for level 2 code compliant activities. Financial assurance for petroleum activities provides an overview of the financial assurance requirements for petroleum activities. Petroleum activities provides an overview of the regulation of petroleum activities under the Environmental Protection Act 1994. Surrendering an environmental authority (petroleum activities) outlines the process for surrendering an environmental authority. Transfer of an environmental authority (petroleum activities) - outlines the process for transferring an environmental authority.

Guideline

Guideline

Guideline

Guideline

Guideline

Information Sheet Information Sheet Information Sheet Information Sheet Information Sheet Information Sheet Information Sheet Information Sheet

Glossary
EIA Environmental impact assessment is the process in which environmental management is integrated into proposals. The administering authority means -

Administering

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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 the harm. A 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. 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. See page 4. 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. 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 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. The following Acts are collectively referred to as the petroleum legislation (section 76 of the Environmental Protection Act 1994) Petroleum Act 1923

Level 1 petroleum activity

Level 2 petroleum activity

Petroleum activity Petroleum authority

Petroleum project

Financial assurance Petroleum legislation

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Guideline

Petroleum industry regulatory framework

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)
Signature

15 February 2005
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

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