Referral of the inquiry
1.1
The Offshore Petroleum and Greenhouse Gas Storage Amendment (Benefit to Australia) Bill 2020 (the bill) was introduced in the Senate and read a first time on 8 December 2020.
1.2
On 4 February 2021, the Senate referred the bill to the Senate Economics Legislation Committee (the committee) for inquiry and report by
11 March 2021. The committee subsequently reported to the Senate on that date.
1.3
On 17 March 2021, the Senate re-referred the bill to the committee for inquiry and report by 6 May 2021, with particular reference to retention leases, decommissioning costs, and offshore domestic gas reserve obligations.
1.4
On 11 May 2021, the Senate granted the committee an extension of time to report from 6 May 2021 to 30 June 2021.
Purpose of the bill
1.5
According to the Explanatory Memorandum (EM), the bill seeks to broaden the objects clause of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the Act) to make the benefit of the Australian community a guiding principle in the interpretation of the Act.
1.6
In her second reading speech, Senator Hanson stated:
This new object clause I propose is a statement of the obvious…we need all decisions to be made with the good of the Australian community in mind.
Background
1.7
The Act created a framework to regulate offshore activities in oil and gas exploration, recovery and storage, including
(a)
exploration for petroleum;
(b)
recovery of petroleum;
(c)
construction and operation of infrastructure facilities relating to petroleum or greenhouse gas substances;
(d)
construction and operation of pipelines for conveying petroleum or greenhouse gas substance;
(e)
exploration for potential greenhouse storage formations; and
(f)
injection and storage of greenhouse gas substances.
1.8
Presently, the Act makes no mention of a guiding principle that a derived benefit to the Australian community ought to be a guiding principle for the extraction of Australia’s finite gas and petroleum resources.
1.9
Senator Hanson’s amendment seeks to enshrine a clause into the object of the Act that states approval of the development of such resources must provide a benefit to the Australian community.
1.10
Senator Hanson stated:
My Bill proposes to add an object clause to section 3 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or OPGGS, to ensure every part of this very important law is interpreted with the good of the Australian community in mind.
OPGGS establishes the National Offshore Petroleum Titles Administrator or (NOPTA), the national Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) and the Joint Authorities.
This new object clause I propose is a statement of the obvious…we need all decisions to be made with the good of the Australian community in mind.
Provisions of the Bill
1.11
The bill contains one schedule:
Schedule 1
1.12
Schedule 1 repeals the objects clause in Section 3 of the Act, and substitutes it with:
The objects of this Act are:
(a) to provide an effective regulatory framework for:
(i) petroleum exploration and recovery; and
(ii) the injection and storage of greenhouse gas substances in offshore
areas; and
(b) to ensure that the exploitation of these natural resources is for the
benefit of the Australian community.
Commencement
1.13
The bill will commence on the day after it receives Royal Assent.
Legislative Scrutiny
1.14
The Senate Standing Committee on the Scrutiny of Bills considered the bill and had no comment.
1.15
According to the EM, the bill is compatible with human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
1.16
The Parliamentary Joint Committee on Human Rights reported that the bill did not raise any human rights concerns.
Conduct of the inquiry
1.17
Following the bill's re-referral, the committee advertised the inquiry on its website and wrote to relevant stakeholders, and interested parties, inviting written submissions by 13 April 2021.
1.18
The committee received an additional four submissions, which are listed in Appendix 1.
1.19
The committee held one public hearing in Canberra on Friday 18 June 2021. The names of witnesses who appeared at this hearing can be found in Appendix 2.
Acknowledgements
1.20
The committee thanks all individuals, and organisations, who assisted across both inquiries into the bill, especially those who made written submissions and provided evidence at the committee's public hearing.