Victorian Bills Explanatory Memoranda

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1、Victorian Bills Explanatory MemorandaIndex Search Download Bill Help -GREENHOUSE GAS GEOLOGICAL SEQUESTRATION BILL 2008 Greenhouse Gas Geological Sequestration Bill 2008 Introduction Print EXPLANATORY MEMORANDUM GeneralThe injection and permanent storage of carbon dioxide and other greenhousegas sub

2、stances in underground geological formations is currently notspecifically regulated in Victoria. The Greenhouse Gas GeologicalSequestration Bill seeks to facilitate and regulate the large scale commercialand sustainable injection and permanent storage of greenhouse gas substancesin onshore Victoria

3、as part of Victorias commitment to the reduction ofatmospheric greenhouse gas emissions. The Bill seeks to provide certaintyfor investors with respect to their legal rights and obligations; certainty forother potentially affected interest holders and to provide the community withconfidence that inje

4、ction and storage operations will be undertaken in amanner which minimises risks to public health and the environment.The Bill is based on existing regulatory frameworks for petroleum operationsunder the Petroleum Act 1998 and geothermal operations under theGeothermal Energy Resources Act 2005. Clau

5、se Notes PART 1-PRELIMINARY Division 1-Introduction and interpretationClause 1 sets out the main purpose of the Bill.Clause 2 provides for the commencement of the various sections of the Act on a day or days to be proclaimed, and for the commencement of a provision of the Bill that has not come into

6、 operation by 1 January 2010, to come into operation on that day. The effect of this clause is that all provisions in the Bill must come into operation in its entirety on a day no later than 1 January 2010. A forced commencement of 1 January 2010 is necessary given that the development of regulation

7、s and other supporting instruments underpinning this Bill will need to be561274 1 BILL LA INTRODUCTION 10/9/2008 - consistent, to the extent practicable, with regulations and other supporting instruments currently being developed in other Australian jurisdictions to enable greenhouse gas injection a

8、nd storage.Clause 3 defines various words and expressions contained in the Bill including- community which includes native title holders and persons who may hold native title land; environment which includes water; greenhouse gas sequestration operation which means any activity relating to the explo

9、ration for underground geological formations suitable for the injection and permanent storage of a greenhouse gas substance, or any activity relating to the injection and monitoring of a greenhouse gas substance; greenhouse gas substance which means carbon dioxide in gaseous or liquid state or a pre

10、scribed greenhouse gas, including a mixture of carbon dioxide and prescribed greenhouse gas substances in gaseous or liquid state, or one or more incidental greenhouse gas-related substances or prescribed detection agents. For the purposes of the Bill, a greenhouse gas substance is a substance that

11、is made up overwhelmingly of either or both carbon dioxide and/or a prescribed greenhouse gas; public interest which means a consideration of any of the following: government policy, employment creation, social impacts, the overall environmental benefit for the State of Victoria and Australia in bot

12、h the short-term and long-term, impacts on aesthetic, amenity or cultural values; resource authority which means an authority, such as a licence or permit, granted under the Extractive Industries Development Act 1995, Geothermal Energy Resources Act 2005, Mineral Resources (Sustainable Development)

13、Act 1990, Petroleum Act 1998 or the Water Act 1989; stratum of land which means a part of land consisting of a space that lies below, on or above the surface of the land or partly below and partly above the surface of the land, the whole of which has a measurable dimensions; 2 - underground geologic

14、al storage formation which includes any seal or reservoir of a geological formation, and any associated geological attributes or features of a geological formation, such as a depleted oil or gas field or a deep saline aquifer.Clause 4 defines greenhouse gas sequestration formation exploration to be

15、the carrying out of one or more of the activities listed in the clause.Clause 5 defines greenhouse gas substance injection and monitoring as being constituted by each of the activities listed in the clause.Clause 6 defines the meaning of a serious situation in relation to an underground geological s

16、torage formation, as being constituted by any of the occurrences in the clause. Division 2-Objectives and principlesClause 7 sets out the objectives of the Bill which are to encourage and promote greenhouse gas sequestration operations for the benefit of all Victorians.Clause 8 provides for principl

17、es of sustainable development which a decision maker should have regard to, when making a decision under, or in administering the Act, including the precautionary principle. The precautionary principle provides that where there is a threat of serious or irreversible environmental damage, a lack of f

18、ull scientific certainty does not constitute a reason for postponing measures to address that risk. Division 3-Application of ActClause 9 provides that where a provision in the Bill covers a matter provided for in the Dangerous Goods Act 1985, the Environment Protection Act 1970, the Occupational He

19、alth and Safety Act 2004 or the Water Act 1989, that other provision will apply in addition to the provision in the Bill. The clause also provides that where there is an inconsistency between the provisions, the provision in the other Act prevails to the extent of that inconsistency.Clause 10 provid

20、es that nothing in the Bill affects the operation of the Aboriginal Heritage Act 2006.Clause 11 provides that the Bill does not apply to an underground geological storage formation that is within the area defined as the adjacent area in the Petroleum (Submerged Lands) Act 1982. 3 - Clause 12 enables

21、 the Minister to declare any land or class of land as not available for greenhouse gas sequestration formation exploration or greenhouse gas substance injection and monitoring.Clause 13 provides that the Bill binds the Crown. PART 2-OWNERSHIP AND CONTROL OF GREENHOUSE GAS SUBSTANCES AND UNDERGROUND

22、GEOLOGICAL STORAGE FORMATIONSClause 14 provides that the Crown owns all underground geological storage formations 15.24 metres below the surface of any land in Victoria, irrespective of any prior alienation of Crown land and that the Crown is not liable to pay any compensation in respect of a loss r

23、esulting from the operation of this clause.Clause 15 provides that the Crown retains all rights in respect of any underground geological storage formation below the surface of the land in Victoria, unless otherwise stated in the document that confers the tenure of that land.Clause 16 provides that o

24、n surrender or cancellation of an injection and monitoring licence the Crown becomes the owner of the substance that has been injected.Clause 17 makes it an offence for a person to undertake greenhouse gas sequestration exploration activities in Victoria unless authorised or permitted under the Bill

25、.Clause 18 makes it an offence for a person to undertake greenhouse gas substance injection and monitoring activities in Victoria unless authorised or permitted under the Bill. PART 3-GREENHOUSE GAS SEQUESTRATION EXPLORATION PERMITS Division 1-Rights and obligationsClause 19 provides that an explora

26、tion permit authorises the carrying out of greenhouse gas sequestration exploration and anything necessary or incidental to that purpose in the permit area. The clause also provides that if the holder of an exploration permit discovers an underground geological storage formation that is likely to be

27、 suitable for the storage of a greenhouse gas substance, the holder has the right to apply for an injection and monitoring licence or a greenhouse gas sequestration retention lease. 4 - Clause 20 prohibits the holder of an exploration permit from extracting any resource that is discovered while cond

28、ucting greenhouse gas sequestration exploration activities under that permit.Clause 21 provides for the key objects of a work program for an exploration permit, in addition to those set out in clause 148. Division 2-Procedure for obtaining permitsClause 22 provides for the Minister responsible for t

29、he Bill to invite applications for an exploration permit. The clause also provides for the Minister to specify in the invitation, the chief factors he or she will consider in assessing the application, as well as a date by which applications must be made.Clause 23 sets out the details that an applic

30、ant for an exploration permit must supply with that application, including the proposed work program and details of the applicants technical expertise and financial capacity available for the proposed activities.Clause 24 provides chief factors additional to those chief factors in clause 22(2), whic

31、h the Minister must take into account in determining which applicant for an exploration permit is to be granted the permit where there are competing applications in respect of an area.Clause 25 provides that the Minister may grant or refuse to grant an exploration permit, and that the Minister must

32、give notice to every unsuccessful applicant for an exploration permit, or notice to all applicants if the Minister decides not to grant a permit to any of the applicants.Clause 26 provides that the Minister may decide to make a new grant of an exploration permit to any other applicant if a successfu

33、l applicant states that it does not intend to accept the grant.Clause 27 sets out the procedure for inviting further applications if the initial invitation does not result in the granting of a permit. The clause provides that if competing bids are received under this clause, the Minister must consid

34、er those bids in the order in which they were received.Clause 28 requires that the area to which a permit applies must be a continuous parcel of land and that no part of the area to which the permit applies may fall within an area that is already the subject of an exploration permit. 5 - Clause 29 p

35、rovides that a permit may be granted for a particular stratum of land or may be granted without being limited to a particular stratum of land if the Minister determines that it is in the public interest to do so. This clause seeks to provide appropriate flexibility to enable the best use of an under

36、ground geological formation.Clause 30 provides that an exploration permit is granted for a period of 5 years, unless cancelled or surrendered or the Bill provides otherwise. Division 3-RenewalsClause 31 provides that an exploration permit may be extended for a further 5 year period from the date of

37、expiry, unless it is cancelled or surrendered or unless the Bill provides otherwise. A permit under this clause can be renewed once.Clause 32 provides that an application for renewal must be given to the Minister at least 90 days before the permit is due to expire. The Minister may consider a later

38、application on the payment of a late fee, but must not consider an application lodged after the permit has expired.Clause 33 provides that the Minister must renew an exploration permit if the holder of the permit has met the requirements in the clause which include lodging an application in the mann

39、er and form prescribed, the permit holder has complied with the conditions of the permit and all applicable laws and the Minister is satisfied of the work program presented for renewal. The clause also provides that the Minister may, notwithstanding those requirements, renew a permit if he or she is

40、 satisfied that there are circumstances justifying such renewal.Clause 34 provides that the Minister must not renew an exploration permit if the key objects of the work program in respect of that permit have not been achieved, unless the Minister is satisfied that the failure resulted from events th

41、at were beyond the control of the permit holder.Clause 35 provides that the Minister, in renewing an exploration permit, may reduce the area to which a permit applies if the holder of the permit nominates an area the holder wishes to relinquish or the Minister determines that it is in the public int

42、erest to do so. 6 - Clause 36 provides that if an exploration permit is renewed, the permit holder may apply to the Minister for permission to vary the work program, on renewal of that permit. Permission to vary the work program may be granted if the Minister determines that such a variation will im

43、prove the work program. Division 4-Injection testing plansClause 37 requires the holder of an exploration permit to prepare an injection testing plan in order to inject a gas or fluid into an underground geological storage formation for the purpose of testing the behaviour of the substance injected

44、and whether the geological formation is geologically suitable for injection and permanent storage of greenhouse gas substances. The clause provides that an injection testing plan forms part of the operation plan and must be lodged with the operation plan when applying for a permit.Clause 38 sets out

45、 the information an exploration permit holder must include in an injection testing plan, including information about where and how the testing will be conducted, details of the liquid or gas to be injected, details about how any risks to public health or the environment will be prevented and details

46、 about the potential leakage and migration path of an injected substance, including the preparation of a monitoring and verification plan, and certain other plans as specified in the clause.Clause 39 provides that an injection and testing plan must be approved before injection testing can start.Clau

47、se 40 provides that the Minister may only approve an injection testing plan if he or she is satisfied that the proposed activities under such a plan will not present a risk to public health or the environment, nor will they present a significant risk of contaminating or sterilising other resources i

48、n the permit area. The clause allows the Minister to impose any conditions that he or she considers necessary.Clause 41 requires that for the purpose of determining whether a proposed injection testing plan will present a risk to the environment, the Minister must refer an injection testing plan to

49、the Ministers responsible for the Environment Protection Act 1970 and the Water Act 1989, as well as the Environment Protection Authority. These referral authorities may make binding recommendations, in accordance with the procedures in the clause, as to whether or not a plan should be approved base

50、d on whether or not the proposed activities present a risk to the environment. 7 - Clause 42 provides that if the Minister is of the opinion that proposed activities under an injection testing plan will pose a significant risk of contaminating or sterilising other resources within the permit area bu

51、t will not present a risk to public health or the environment, the Minister may nevertheless approve such a plan if the holder of the permit has obtained the consent of the holder of a resource authority in the permit area or the Minister deems approval of the injection testing plan is in the public

52、 interest.Clause 43 requires that if injection testing work will present a significant risk of contaminating or sterilising other resources in the permit area, the holder of the permit must take reasonable steps to obtain the consent of the holder of any resource authority for resources likely to be

53、 contaminated or sterilised, in that permit area.Clause 44 enables the Minister to refer an injection testing plan to an independent panel or any relevant public authority for a recommendation as to whether or not the plan should be approved. The clause requires that the Minister must make such a referral before making a determination as to whether or not an approval of an injection testing plan is in the public interest.Clause 45 enables the Minister to appoint a panel of persons to consider applications for approval of an