House of Representatives Committees

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Preliminary pages


These Bills are important. They are the result of a long period of policy review and consultation. They are the Government’s response to the Productivity Commission’s Review of the Regulatory Burden on the Upstream Petroleum (Oil and Gas) Sector and the Montara Commission of Inquiry, both of which called for regulatory reform. They are also a response to the global trend towards more integrated and robust regulation for the offshore petroleum and gas industry.

The Bills create a single national regulator. Through the creation of NOPSEMA the Bills integrate safety, structural integrity and environmental regulation for the offshore petroleum and gas sector. They also separate these issues from resource management issues, ensuring that safety and environmental management are not compromised by resource development decisions. This is a critical outcome in light of experience here and overseas, especially the Montara incident in the Timor Sea and the Macondo disaster in the Gulf of Mexico.

The Committee has proposed only one change to the Bills, allowing the Western Australian Government to retain its role in the negotiation and setting of royalties.

We have also recommended that in light of NOPSEMA’s environmental functions, the NOPSEMA Advisory Board should include members with environmental expertise.

We commend the Bills to the House.

Hon Dick Adams MP


Membership of the Committee


Hon Dick Adams MP


Deputy Chair

Mr Alby Schultz MP



Mr Darren Cheeseman MP

Mr Geoff Lyons MP


Mr George Christensen MP

Mr Rob Mitchell MP


Mr Tony Crook MP

Mr Dan Tehan MP

Committee Secretariat


Mr David Brunoro

Inquiry Secretary

Dr Bill Pender

Office Manager

Ms Dorota Cooley

Terms of reference

On 25 May 2011 the Selection Committee referred the following bills to the Committee for inquiry and report:

Under Standing Order 222(e), the House is taken to have adopted the Selection Committee’s reports when they are presented.

List of abbreviations


Australian Government Solicitor


Australian Petroleum Production and Exploration Association


Council of Australian Governments


Department of Mines and Petroleum, Western Australia


Environment Protection and Biodiversity Conservation Act


Ministerial Council on Mineral and Petroleum Resources


Memorandum of Understanding


National Offshore Petroleum Safety Authority


National Offshore Petroleum Safety and Environmental Management Authority


National Offshore Petroleum Titles Administrator


Northern Territory


Offshore Minerals Act 1994


Offshore Petroleum and Greenhouse Gas Storage Act 2006


Personal Properties Securities Act 2009


Service Level Agreement


Department of Resources, Energy and Tourism


Western Australia

List of recommendations

1 Analysis of the Bills

Recommendation 1

The Committee recommends that the Designated Authority role in the Offshore Petroleum (Royalty) Act 2006 be conferred upon the State member of the relevant Joint Authority under the Offshore Petroleum (Royalty) Amendment Bill 2011.

Recommendation 2

The Committee recommends that given NOPSEMA’s environmental management function, the membership of the NOPSEMA Advisory Board include members with relevant environmental expertise.

Recommendation 3

The Committee recommends that the House of Representatives pass the Bills.

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