OPGGSA: offshore petroleum, greenhouse gas storage, NOPSEMA and titles

Legislative framework

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA) provides the primary regulatory framework for petroleum and greenhouse gas activities occurring in Commonwealth waters. These waters extend beyond 3 nautical miles from the territorial sea baseline. The OPGGSA governs activities including exploration, production, transport, decommissioning and the geological storage of greenhouse gases. NGER greenhouse and energy reporting Act 2007 is also relevant.

Coastal waters within 3 nautical miles are regulated by the relevant state or Northern Territory government, which administer legislation with similar intent to the OPGGSA. This ensures a consistent approach to offshore resource management across Australia.

Supporting the OPGGSA are specific regulations, including the OPGGS (Environment) Regulations 2023 and the OPGGS (Safety) Regulations 2024. The Minister for Resources holds responsibility as the accountable Commonwealth Minister for the OPGGSA.

Title regimes

Petroleum titles cover a range of activities and include exploration permits, retention leases, production licences, infrastructure licences and pipeline licences. Greenhouse gas titles encompass assessment permits, holding leases, injection licences and search authorities, as defined within Chapter 3 of the Act. The National Offshore Petroleum Titles Administrator (NOPTA) administers these titles.

Certain petroleum titles hold specific protections. Pre-commencement petroleum titles, those granted before November 2008, are protected by a 'significant impact test' against subsequent greenhouse gas operations. This test assesses potential impacts when considering new GHG activities near existing petroleum infrastructure.

Fees associated with title holding are regulated. Annual title fees, registration fees and well fees are payable under the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003. Information on the ACCU Scheme article may also be relevant to greenhouse gas titles.

NOPSEMA's safety and environmental remit

NOPSEMA, the National Offshore Petroleum Safety and Environmental Management Authority, is an independent statutory authority established under the OPGGSA. Its role is to regulate several aspects of offshore petroleum activities, including health and safety, well integrity, environmental management, and structural integrity. EPBC Act overview

Before commencing any petroleum activity, operators are required to have both an accepted safety case and an environment plan in force. Environment plans are a key component of demonstrating how potential environmental impacts and risks will be reduced 'as low as reasonably practicable' (ALARP) and remain acceptable.

NOPSEMA has the power to enforce compliance. This includes the ability to issue directions, prohibition notices, and improvement notices, and to prosecute breaches of the OPGGSA.

Notification, decommissioning and financial assurance

Registered title holders are subject to notification requirements as outlined in section 286A. These requirements cover changes in control and certain incidents. Significant incidents must also be reported to NOPSEMA under the OPGGS (Environment) Regulations 2023. Carbon Border Adjustment Mechanism (CBAM) Australia

Title holders are required to maintain sufficient financial assurance under section 571. This assurance must cover the costs, expenses and liabilities associated with carrying out activities, including the costs of decommissioning.

Decommissioning obligations generally require the removal of property and remediation of the seabed. Exemptions from these requirements may be granted. The ‘trailing liability’ regime provides a mechanism for the Minister to require former titleholders to contribute to decommissioning costs in specific circumstances.