Action item 14.14
Progress
Complete.
Approved by decision makers.
Recommendation implemented.
That prior to the grant of any further production approvals, the Government imposes a non-refundable levy for the long-term monitoring, management and remediation of abandoned onshore shale gas wells in the NT.
Completed
Department of Industry, Tourism and Trade
Department of Treasury and Finance
Action item update
Implementation
The Petroleum Legislation Amendment Bill 2022 was introduced in the Legislative Assembly on 12 October 2022, passed on 1 December 2022 and assented to on 16 December 2022. Refer to Special Gazette S64 published on 19 December 2022 on the Northern Territory Government website.
New and revised cost recovery charges will be implemented when amendments to the Petroleum Act 1984 and the Petroleum Regulations 2020 commence in 2023.
Amendments to the Petroleum Act 1984 and Petroleum Regulations 2020 will provide for a new orphan well levy and orphan well fund.
The Bill establishes that the charge will be applied annually, per graticular block within a petroleum title. The amount payable per graticular block will start at 84 revenue units (or a number specified by regulation) increasing by 15 revenue units per year until the 2034-35 financial year and each subsequent financial year when it is set at 234 revenue units.
The amounts charged will be accrued in a dedicated ‘orphan well fund’. Monies will be used exclusively to monitor and ensure the integrity of orphan wells in the Territory.
The Bill establishes that each financial year the Minister must publish the amount of orphan well levy collected as well as the opening and closing balances for the Orphan Well Fund. An outline of works undertaken in the previous financial year must also be published. The levy will be payable from 1 July 2023.