Commonwealth Consolidated Acts

OFFSHORE PETROLEUM (ROYALTY) ACT 2006 - SECT 16

Scope

  (1)   This section applies if:

  (a)   subsection   15(2) has operated in relation to petroleum recovered during a royalty period, and a value of the petroleum different from the provisional value is subsequently agreed or determined under section   12; or

  (b)   an error has been made in:

  (i)   the calculation of royalty due; or

  (ii)   the application of a procedure for ascertaining the value of the petroleum.

Adjustment

  (2)   If the determined royalty is greater than the provisional royalty, the difference is payable by the registered holder concerned.

  (3)   If the determined royalty is less than the provisional royalty, the difference is to be:

  (a)   deducted from any amount subsequently payable under this Act by the registered holder concerned; or

  (b)   if no amount is likely to be subsequently payable under this Act by the registered holder concerned--refunded to the registered holder.

Definitions

  (4)   In this section:

"determined royalty" means:

  (a)   if paragraph   ( 1)(a) applies--the amount of royalty payable in relation to the petroleum on the basis of the value ascertained under section   12; or

  (b)   if paragraph   ( 1)(b) applies--the amount of royalty payable in relation to the petroleum.

"provisional royalty" means:

  (a)   if paragraph   ( 1)(a) applies--the amount of royalty payable in relation to the petroleum on the basis of the provisional value; or

  (b)   if paragraph   ( 1)(b) applies--the amount of royalty demanded in relation to the petroleum as a result of the erroneous:

  (i)   calculation of royalty due; or

  (ii)   application of a procedure for ascertaining the value of the petroleum.