Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The rate of royalty on petroleum recovered under a petroleum production licence is worked out using the table:
Rate of royalty | ||
Item | In this case... | the rate of royalty is this percentage of the value at the wellhead of the petroleum... |
1 | (a) petroleum recovered under a petroleum production licence granted otherwise than by way of renewal; and (b) none of items 2, 3, 4 and 5 apply | 10% |
2 | petroleum recovered under a secondary petroleum production licence granted otherwise than by way of renewal | the percentage determined under subsection ( 2) in relation to the petroleum recovered under the licence |
3 | petroleum recovered under a primary petroleum production licence granted otherwise than by way of renewal, where a secondary petroleum production licence is granted to the holder of the primary petroleum production licence | (with effect from the beginning of the next royalty period after the day on which the secondary petroleum production licence takes effect) the same percentage as is applicable to the petroleum recovered under the secondary petroleum production licence |
4 | petroleum recovered under a petroleum production licence granted on an application under section 182 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 | the same percentage as was applicable to petroleum recovered under the initial petroleum production licence (within the meaning of that section) |
5 | petroleum recovered under a petroleum production licence granted by way of renewal | the percentage that would be the rate of royalty if the renewed licence were the continuation in force of the previous licence |
Application for secondary petroleum production licence--determination of rate of royalty
(2) If:
(a) a person has applied for a primary petroleum production licence; and
(b) before or after the grant of the primary petroleum production licence, the person applies for a secondary petroleum production licence;
the Joint Authority must, by written instrument, determine the rate of royalty payable in relation to petroleum recovered, whether under the primary petroleum production licence or under the secondary petroleum production licence.
(3) The rate must not be less than 11%, nor more than 12.5%, of the value at the wellhead of that petroleum.
(4) Before determining the rate of royalty payable, the Joint Authority must:
(a) give the person an opportunity to confer with the State Minister about the rate; and
(b) give the State Minister an opportunity to report to the Joint Authority about any such conferring; and
(c) consider the State Minister's report.
(5) A determination under subsection ( 2) is not a legislative instrument.
Royalty at the prescribed rate
(6) A reference in a petroleum production licence (whether granted before or after the commencement of this subsection) to:
(a) royalty at the prescribed rate; or
(b) royalty at the rate that is for the time being the prescribed rate;
is to be read as a reference to royalty at the rate that is or was the rate of royalty applicable in accordance with the provisions of this Act, as in force from time to time.