Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Royalty under this Act:
(a) is not payable in relation to petroleum that the State Minister is satisfied was unavoidably lost before the quantity of that petroleum was ascertained; and
(b) is not payable in relation to petroleum if:
(i) the State Minister is satisfied that the petroleum was used by the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence for the purposes of petroleum exploration operations or operations for the recovery of petroleum; and
(ii) the use did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act; and
(c) is not payable in relation to petroleum if:
(i) the State Minister is satisfied that the petroleum has been flared or vented in connection with operations for the recovery of petroleum; and
(ii) the flaring or venting did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act.
(2) If petroleum has been recovered by the registered holder of:
(a) a petroleum exploration permit; or
(b) a petroleum retention lease; or
(c) a petroleum production licence;
royalty under this Act is not payable in relation to the petroleum because of that recovery if:
(d) the State Minister is satisfied that the petroleum has been returned to a natural reservoir; and
(e) the return of the petroleum to the reservoir did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act.
(3) Subsection ( 2) does not affect the liability of that or any other registered holder to pay royalty in relation to petroleum that is recovered from that natural reservoir.