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This is a Bill, not an Act. For current law, see the Acts databases.


BARROW ISLAND AMENDMENT BILL 2015

                       Western Australia


     Barrow Island Amendment Bill 2015

                           Contents

1.      Short title                                                 2
2.      Commencement                                                2
3.      Act amended                                                 2
4.      Part 5A inserted                                            2
        Part 5A -- Indemnification by State for long-term
               liability resulting from underground disposal
               of carbon dioxide
        14A.      Terms used                                   2
        14B.      Notice that Commonwealth representative
                  is satisfied of certain matters              6
        14C.      Declaration of liability assumption date     7
        14D.      State to indemnify                           8
        14E.      Payment under indemnity and
                  appropriation                                8
        14F.      Disclosure of information to
                  Commonwealth representative                  8
5.      Section 17A inserted                                        9
        17A.      Protection from liability for wrongdoing     9




                             87--1B                                 page i
                           Western Australia


                     LEGISLATIVE ASSEMBLY


        Barrow Island Amendment Bill 2015

                               A Bill for


An Act to amend the Barrow Island Act 2003.



The Parliament of Western Australia enacts as follows:




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     Barrow Island Amendment Bill 2015



     s. 1




1    1.        Short title
2              This is the Barrow Island Amendment Act 2015.

3    2.        Commencement
4              This Act comes into operation as follows --
5               (a) sections 1 and 2 come into operation on the day on
6                     which this Act receives the Royal Assent (assent day);
7               (b) section 5 is deemed to have come into operation on
8                     20 November 2003 immediately after the Barrow Island
9                     Act 2003, other than section 12, came into operation;
10              (c) the rest of the Act comes into operation on the day after
11                    assent day.

12   3.        Act amended
13             This Act amends the Barrow Island Act 2003.

14   4.        Part 5A inserted
15             After section 13 insert:
16


17               Part 5A -- Indemnification by State for
18            long-term liability resulting from underground
19                      disposal of carbon dioxide
20          14A.     Terms used
21                   In this Part --
22                   CO2 means carbon dioxide;
23                   CO2 disposal management plan has the meaning given
24                   in the section 13 approval in clause 1 of the collateral
25                   deed;




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                            Barrow Island Amendment Bill 2015



                                                           s. 4



1    CO2 injection cessation date has the meaning given in
2    the section 13 approval in clause 1 of the collateral
3    deed;
4    CO2 injection operations means the disposal of CO2
5    recovered during gas processing on Barrow Island
6    undertaken as part of the Project by --
7      (a) injecting that CO2 into the formation as part of
8            a process known as geosequestration; and
9      (b) establishing and operating infrastructure and
10           facilities for that purpose and conducting
11           associated monitoring activities,
12   in accordance with the Agreement and the section 13
13   approval;
14   CO2 injection site closure notice means a notice issued
15   no earlier than 15 years after the CO2 injection
16   cessation date in accordance with clause 8 of the
17   collateral deed;
18   collateral deed means the CO2 Disposal by
19   Injection -- Collateral Deed dated 14 September 2009
20   executed by the then Joint Venturers (Chevron (TAPL)
21   Pty Ltd (ABN 18 081 647 047), Mobil Australia
22   Resources Company Pty Limited (ABN
23   38 000 113 217) and Shell Development (Australia)
24   Proprietary Limited (ABN 14 009 663 576)) in favour
25   of the State and given in compliance with condition 2
26   of the section 13 approval;
27   common law liability means liability for damages --
28     (a) in an amount claimed on the basis of a common
29           law cause of action and either --
30              (i) awarded by a court; or




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     Barrow Island Amendment Bill 2015



     s. 4



1                           (ii)   payable under a settlement, if the
2                                  settlement was reached with the prior
3                                  approval of the Commonwealth
4                                  representative and the BI Act Minister
5                                  as to the amount;
6                          and
7                    (b) not arising as a result of a failure by any of the
8                          Joint Venturers to act in good faith or without
9                          malice, fraud or recklessness;
10                 Commonwealth representative means --
11                   (a) the Minister of the Commonwealth to whom
12                         the administration of the Offshore Petroleum
13                         and Greenhouse Gas Storage Act 2006
14                         (Commonwealth) is from time to time
15                         committed; or
16                   (b) another Minister or official of the
17                         Commonwealth that is from time to time
18                         notified to the BI Act Minister by the Minister
19                         referred to in paragraph (a);
20                 formation has the meaning given in the section 13
21                 approval;
22                 Gorgon CO2 means CO2 recovered during processing
23                 of gas or other petroleum from the Title Areas or, in
24                 accordance with clause 18 of the Gorgon Agreement,
25                 from the Greater Gorgon Area, the Barrow Island
26                 Lease or other areas and includes flue gas from the
27                 treatment plant constructed and operated by the Joint
28                 Venturers as part of the Project;
29                 Greater Gorgon Area has the meaning given in
30                 clause 1 of the Agreement;
31                 holding company has the meaning given in the
32                 Corporations Act 2001 (Commonwealth) section 9;




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                                                                 s. 4



1    independent third party means a natural person or
2    entity who is not --
3      (a) the State or the Commonwealth; or
4      (b) any of the Joint Venturers; or
5      (c) a related entity of any of the Joint Venturers;
6    Joint Venturers has the meaning given in the
7    Agreement and includes each of the former Joint
8    Venturers;
9    leakage means the physical leakage of CO2 from the
10   formation into the atmosphere, biosphere or
11   hydrosphere, other than as predicted in the
12   section 13 approval;
13   liability assumption date means the day declared by
14   the BI Act Minister as the liability assumption date by
15   notice under section 14C(1);
16   Project has the meaning given in clause 1 of the
17   Agreement;
18   related entity means --
19     (a) a holding company; or
20     (b) a subsidiary; or
21     (c) a subsidiary of a holding company; or
22     (d) an Associated Entity (as defined in clause 1 of
23            the Agreement);
24   section 13 approval means the document dated
25   14 September 2009 setting out the conditions and
26   restrictions of the BI Act Minister's approval granted
27   to the then Joint Venturers (Chevron (TAPL) Pty Ltd
28   (ABN 18 081 647 047), Mobil Australia Resources
29   Company Pty Limited (ABN 38 000 113 217) and
30   Shell Development (Australia) Proprietary Limited
31   (ABN 14 009 663 576)) under section 13 to inject CO2
32   into the formation as varied, added to or substituted for
33   in accordance with condition 19 of that document and,


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     Barrow Island Amendment Bill 2015



     s. 4



1                   for the avoidance of doubt, includes the collateral deed
2                   and the CO2 disposal management plan;
3                   subsidiary has the meaning given in the Corporations
4                   Act 2001 (Commonwealth) section 9;
5                   Title Areas has the meaning given in clause 1 of the
6                   Agreement.

7           14B.    Notice that Commonwealth representative is
8                   satisfied of certain matters
9             (1)   The BI Act Minister may, after the expiration of the
10                  15 year period beginning on the CO2 injection
11                  cessation date, request the Commonwealth
12                  representative to give the BI Act Minister notice that
13                  the Commonwealth representative is satisfied in
14                  respect of the matters listed in subsection (2).
15            (2)   The matters in respect of which the Commonwealth
16                  representative must be satisfied are as follows --
17                    (a) the Gorgon CO2 injected into the formation is
18                         behaving as predicted in the modelling of the
19                         plume provided by the Joint Venturers to the BI
20                         Act Minister either --
21                            (i) as part of the application under
22                                 section 13 that resulted in the grant of
23                                 the section 13 approval; or
24                           (ii) in subsequent refinements of that
25                                 modelling accepted by the BI Act
26                                 Minister in accordance with the
27                                 section 13 approval,
28                         and there is no significant risk of leakage;
29                    (b) there is no significant risk that the CO2 in the
30                         formation will have a significant adverse
31                         impact on the geotechnical integrity of the
32                         whole or a part of a geological formation or a
33                         geological structure;


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                                     Barrow Island Amendment Bill 2015



                                                                        s. 4



1             (c)    there is no significant risk that the CO2 in the
2                    formation will have a significant adverse
3                    impact on the environment, or other geological
4                    resources, including groundwater;
5             (d)    there is no significant risk that the CO2 in the
6                    formation will have a significant adverse
7                    impact on human health or safety;
8             (e)    for at least 15 years since the CO2 injection
9                    cessation date there have not been any
10                   operations to inject CO2 into the formation;
11             (f)   for at least 15 years since the CO2 injection
12                   cessation date there have not been any
13                   operations to inject any other substances into
14                   the formation other than where that was
15                   necessary for legitimate and appropriate plume
16                   monitoring and management activities;
17            (g)    the BI Act Minister has advised that he or she
18                   has issued or is intending to issue a CO2
19                   injection site closure notice in accordance with
20                   the section 13 approval.

21   14C.    Declaration of liability assumption date
22     (1)   The BI Act Minister must, by notice published in the
23           Gazette, declare a particular day as the liability
24           assumption date if --
25             (a) the Commonwealth representative has given the
26                  notice requested under section 14B(1); and
27             (b) the BI Act Minister has issued a CO2 injection
28                  site closure notice.
29     (2)   The liability assumption date must not be earlier than
30           the day on which the notice under subsection (1) is
31           published.




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     Barrow Island Amendment Bill 2015



     s. 4



1           14D.    State to indemnify
2                   The State will indemnify the Joint Venturers for their
3                   common law liability to independent third parties
4                   arising after the liability assumption date for loss or
5                   damage caused by the injection of Gorgon CO2 in the
6                   formation where that loss or damage is attributable to
7                   an act done, or omitted to be done, in the carrying out
8                   of CO2 injection operations under the authority of the
9                   section 13 approval.

10          14E.    Payment under indemnity and appropriation
11                  The payment of any money under the indemnity in
12                  section 14D is to be made by the Treasurer and charged
13                  to the Consolidated Account, which this section
14                  appropriates to the necessary extent.

15          14F.    Disclosure of information to Commonwealth
16                  representative
17            (1)   The BI Act Minister may, at any time, disclose to the
18                  Commonwealth representative information or any
19                  document that --
20                    (a) relates to CO2 injection operations or to a
21                         proposal by the Joint Venturers that relates to
22                         CO2 injection operations; or
23                   (b) is relevant to --
24                           (i) a matter listed in section 14B(2); or
25                          (ii) the existence (or otherwise) or extent of
26                                liability mentioned in section 14D.
27            (2)   Subsection (1) applies to information or documents
28                  whether given to the BI Act Minister by the Joint
29                  Venturers, produced by or on behalf of the BI Act
30                  Minister or otherwise obtained by the BI Act Minister.
31




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                                                                             s. 5




1    5.     Section 17A inserted
2           After section 16 insert:
3


4         17A.    Protection from liability for wrongdoing
5           (1)   An action in tort does not lie against a person for
6                 anything that the person has done, in good faith, in the
7                 performance or purported performance of a function
8                 under this Act.
9           (2)   The protection given by subsection (1) applies even
10                though the thing done as described in that subsection
11                may have been capable of being done whether or not
12                this Act had been enacted.
13          (3)   Despite subsection (1), the State is not relieved of any
14                liability that it might have for another person having
15                done anything as described in that subsection.
16          (4)   In this section a reference to the doing of anything
17                includes a reference to the omission to do anything.
18


19




 


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