About the Application Assessment Guidelines - Earth...

17
EARTH RESOURCES REGULATION APPLICATION ASSESSMENT GUIDELINES 2016-2017 About the Application Assessment Guidelines Earth Resources Regulation (ERR) is Victoria’s earth resources regulator – our role includes licensing, risk management, enforcing compliance and stakeholder engagement. We are committed to being an accountable and transparent regulator in all aspects of our work. To be a transparent, responsive and effective regulator, ERR works closely with industry, local communities and other government agencies to: provide timely, accurate and accessible information to stakeholders build community and business confidence. These application assessment guidelines (‘the guidelines’) outline the criteria ERR uses to assess documentation for licensing approvals. Applications are assessed under the legislation ERR administers to assist applicants, tenement holders, community members and other stakeholders. The purpose of these guidelines is to: bring together all the legislative requirements that must be addressed in order for a tenement to be assessed, and make the tenement assessment process clearer and more accessible for: o the earth resource industries that we regulate o land owners o community members o other government agencies. These guidelines provide a high-level outline of the criteria used to assess applications for tenements under the following legislation: Mineral Resources (Sustainable Development) Act 1990 Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2013 Mineral Resources (Sustainable Development) (Extractive Industries) Regulations 2010 Petroleum Act 1998 Petroleum Regulations 2011 Geothermal Energy Resources Act 2005 Geothermal Energy Regulations 2006 Greenhouse Gas Geological Sequestration Act 2008 Greenhouse Gas Geological Sequestration Regulations 2009 Greenhouse Gas Geological Sequestration (Exemption) Regulations 2009 Offshore Petroleum and Greenhouse Gas Storage Act 2010 Offshore Petroleum and Greenhouse Gas Storage Regulations 2011

Transcript of About the Application Assessment Guidelines - Earth...

EARTH RESOURCES REGULATION

APPLICATION ASSESSMENTGUIDELINES

2016-2017

About the Application Assessment GuidelinesEarth Resources Regulation (ERR) is Victoria’s earth resources regulator – our role includes licensing, risk management, enforcing compliance and stakeholder engagement. We are committed to being an accountable and transparent regulator in all aspects of our work.

To be a transparent, responsive and effective regulator, ERR works closely with industry, local communities and other government agencies to:

provide timely, accurate and accessible information to stakeholders build community and business confidence.

These application assessment guidelines (‘the guidelines’) outline the criteria ERR uses to assess documentation for licensing approvals. Applications are assessed under the legislation ERR administers to assist applicants, tenement holders, community members and other stakeholders.

The purpose of these guidelines is to:

bring together all the legislative requirements that must be addressed in order for a tenement to be assessed, and

make the tenement assessment process clearer and more accessible for:o the earth resource industries that we regulateo land ownerso community memberso other government agencies.

These guidelines provide a high-level outline of the criteria used to assess applications for tenements under the following legislation:

Mineral Resources (Sustainable Development) Act 1990 Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2013 Mineral Resources (Sustainable Development) (Extractive Industries) Regulations 2010 Petroleum Act 1998 Petroleum Regulations 2011 Geothermal Energy Resources Act 2005 Geothermal Energy Regulations 2006 Greenhouse Gas Geological Sequestration Act 2008 Greenhouse Gas Geological Sequestration Regulations 2009 Greenhouse Gas Geological Sequestration (Exemption) Regulations 2009 Offshore Petroleum and Greenhouse Gas Storage Act 2010 Offshore Petroleum and Greenhouse Gas Storage Regulations 2011

Acronyms and definitions

Acronyms/definitions Meaning

GERA Geothermal Energy Resources Act 2005

GGGSA Greenhouse Gas Geological Sequestration Act 2008

MRSDA Mineral Resources (Sustainable Development) Act 1990

OPGGSA Offshore Petroleum and Greenhouse Gas Storage Act 2010

PETA Petroleum Act 1998

ERR Earth Resources Regulation

Tenements In this guideline a tenement means:

1. An exploration licence, retention licence, mining licence, prospecting licence, and an extractive industry work authority granted under the Mineral Resources (Sustainable Develop-ment) Act 1990.

2. Offshore petroleum permit, offshore petroleum retention lease, offshore petroleum production licence, offshore greenhouse gas assessment permit, offshore greenhouse gas holding lease and offshore greenhouse gas injection licence granted under the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

3. An onshore petroleum exploration permit, onshore petroleum retention lease and an onshore petroleum production licence granted under the Petroleum Act 1998.

4. A geothermal exploration permit, geothermal retention lease and a geothermal extraction licence granted under the Geo-thermal Energy Resources Act 2005.

5. An onshore greenhouse gas sequestration exploration permit, onshore greenhouse gas sequestration formation retention lease and an onshore greenhouse gas substance injection and monitoring licence granted under the Greenhouse Gas Geological Sequestration Act 2008.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 2

Application assessment criteria for Mineral Resources (Sustainable Development) Act 1990 tenementsThis section outlines the application assessment criteria for tenement applications lodged under section 15(1) and 77I of the Mineral Resources (Sustainable Development) Act 1990 and the entitlements of these tenements.

Exploration licenceAn exploration licence entitles the holder to carry out exploration on the land covered by the licence. The table below outlines the application assessment criteria for an exploration licence lodged under section 15(1) of the Mineral Resources (Sustainable Development) Act 1990.

Mineral Resources (Sustainable Development) Act 1990 – Assessment Criteria – Exploration Licence1. The application is assessed to ensure that it has addressed all the requirements of Regulation 12 and Sched-

ule 2 of the Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

2. The applicant is assessed to ensure that they satisfy section 15(6) of the Mineral Resources (Sustainable De-velopment) Act 1990.

3. The applicant’s advertising process is assessed to ensure that the applicant has complied with section 15(5) of the Mineral Resources (Sustainable Development) Act 1990 and Regulation 20 and Schedule 8 of the Min-eral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

4. If objections are received in response to the advertising process, an assessment of the objector’s grounds is undertaken.

5. A Native Title assessment is undertaken if the application contains Crown land.

6. All responses from the:

(a) Crown land Minister(b) Aboriginal Affairs Victoria(c) registered aboriginal party(d) local council(s)

are assessed to ensure that there are no issues to address before the licence is referred to the Minister or Minister’s delegate for decision.

When the six matters detailed above are addressed, the application is referred to the Minister or the Minister’s delegate for a decision.

Retention licenceA retention licence entitles the holder to retain the rights to the mineral resource in the land covered by the licence that is not economically viable to mine, but may become economically viable to mine in the future, or for the purpose of sustaining the operations of an existing mine and to explore and carry out other work to establish the economic viability of mining a mineral resource in the land covered by the licence. The table below outlines the application assessment criteria for a retention licence lodged under section 15(1) of the Mineral Resources (Sustainable Development) Act 1990.

Mineral Resources (Sustainable Development) Act 1990 –Assessment Criteria – Retention Licence1. The application is assessed to ensure that it has addressed all the requirements of Regulation 15 and Sched-

ule 5 of the Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

2. The applicant is assessed to ensure that they satisfy section 15(6) of the Mineral Resources (Sustainable De-velopment) Act 1990.

3. The applicant’s advertising process is assessed to ensure that the applicant has complied with section 15(5) of the Mineral Resources (Sustainable Development) Act 1990 and Regulation 20 and Schedule 8 of the Min-eral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

4. If objections are received in response to the advertising process, an assessment of the objector’s grounds is undertaken.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 3

5. A Native Title assessment is undertaken if the application contains Crown land.

6. The Mineralisation Report is assessed.

7. The project milestones are assessed.

8. The work program is assessed.

9. All the responses from the:

(a) Crown land Minister(b) Aboriginal Affairs Victoria(c) registered aboriginal party(d) local council(s)

are assessed to ensure that there are no issues to address before the licence is referred to the Minister or Minister’s delegate for decision.

When the nine matters detailed above are addressed, the application is referred to the Minister or the Minister’s delegate for a decision.

Mining licenceA mining licence entitles the holder to carry out mining on the land covered by the licence and to explore for minerals and to construct facilities (e.g. roads, tailing dams, reservoirs) and do anything else that is incidental to that mining. The table below outlines the application assessment criteria for a mining licence lodged under section 15(1) of the Mineral Resources (Sustainable Development) Act 1990.

Mineral Resources (Sustainable Development) Act 1990 – Assessment Criteria – Mining Licence1. The application is assessed to ensure that it has addressed all the requirements of Regulation 13 and Sched-

ule 3 of the Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

2. The applicant is assessed to ensure that they satisfy section 15(6) of the Mineral Resources (Sustainable De-velopment) Act 1990.

3. The applicant’s advertising process is assessed to ensure that the applicant has complied with section 15(5) of the Mineral Resources (Sustainable Development) Act 1990 and Regulation 21 and Schedule 9 of the Min-eral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

4. If objections are received in response to the advertising process, an assessment of the objector’s grounds is undertaken.

5. A Native Title assessment is undertaken if the application contains Crown land.

6. The Mineralisation Report is assessed.

7. All the responses from the:

(a) Crown land Minister(b) Aboriginal Affairs Victoria(c) registered aboriginal party(d) local council(s)

are assessed to ensure that there are no issues to address before the licence is referred to the Minister or Minister’s delegate for decision.

When the seven matters detailed above are addressed, the application is referred to the Minister or the Minister’s delegate for a decision.

Prospecting licenceA prospecting licence entitles the holder to prospect or explore for minerals and carry out mining on the land covered by the licence and do anything else that is incidental to that mining. The table below outlines the application assessment criteria for a prospecting licence lodged under section 15(1) of the Mineral Resources (Sustainable Development) Act 1990.

Mineral Resources (Sustainable Development) Act 1990 – Assessment Criteria – Prospecting Licence

Earth Resources Regulation – Application Assessment Guidelines 2016-17 4

1. The application is assessed to ensure that it has addressed all the requirements of Regulation 14 and Sched-ule 4 of the Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

2. The applicant is assessed to ensure that they satisfy section 15(6) of the Mineral Resources (Sustainable De-velopment) Act 1990.

3. The applicant’s advertising process is assessed to ensure that the applicant has complied with section 15(5) of the Mineral Resources (Sustainable Development) Act 1990 and Regulation 22 and Schedule 9 of the Min-eral Resources (Sustainable Development) (Mineral Industries) Regulations 2013.

4. If objections are received in response to the advertising process, an assessment of the objector’s grounds is undertaken.

5. A Native Title assessment is undertaken if the application contains Crown land.

6. All responses from the:

(a) Crown land Minister(b) Aboriginal Affairs Victoria(c) registered aboriginal party(d) local council(s)

are assessed to ensure that there are no issues to address before the licence is referred to the Minister or Minister’s delegate for decision.

When the six matters detailed above are addressed, the application is referred to the Minister or the Minister’s delegate for a decision.

Work authorityA work authority entitles the holder to carry out an extractive industry on the land specified in the authority. Prior to the work authority assessment an agreement must be established between the landowner and the operator. The table below outlines the application assessment criteria for a work authority lodged under section 77I of the Mineral Resources (Sustainable Development) Act 1990.

Mineral Resources (Sustainable Development) Act 1990 – Assessment Criteria – Work AuthorityThe application and supporting documentation are assessed to ensure that:

1. the work plan is approved

2. the work plan and work authority application fee has been paid

3. the rehabilitation bond is satisfactory

4. if the application area contains Crown land, that Crown land consent has been received and that Native Title requirements have been addressed

5. consent from overlapping mineral tenement holders has been received (if applicable)

6. comments and/or consent from the holders of easements have been received (if applicable).

When the six matters above are addressed, the application is referred to the Minister or the Minister’s delegate for a decision.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 5

Application assessment criteria for Offshore Petroleum and Greenhouse Gas Storage Act 2010 TenementsThis section outlines the application assessment criteria for tenement applications lodged under the Offshore Petroleum and Greenhouse Gas Storage Act 2010 and the entitlements of these tenements.

Offshore petroleum exploration permitAn offshore petroleum exploration permit entitles the holder to explore for petroleum in the permit area and recover petroleum on an appraisal basis in the permit area and to carry on such operations and execute such works in the permit area as are necessary for those purposes. The table below outlines the application assessment criteria for an offshore petroleum exploration permit lodged under section 86 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

Offshore Petroleum and Greenhouse Gas Storage Act 2010 – Assessment Criteria – Offshore Petroleum Exploration PermitApplications for offshore exploration permits are received through a public tender and are assessed against the following assessment criteria, which are published in the invitation for tenders:

1. Application and document assessment

The application and attached supporting documents are assessed to ensure that they meet the requirements of the tender invitation.

2. Technical assessment

The applicant’s technical assessment of the petroleum potential of the area is assessed, including the concepts underlying the proposed exploration program.

3. Work program

The applicant’s work program is assessed in terms of:

how many exploration wells will be drilled and when, and whether there is an adequate supporting pro-gram of geological and geophysical work

the amount, type and timing of seismic surveying to be carried out other new surveying, data acquisition and seismic reprocessing to be carried out the amount, type and timing of any purchased or licenced existing data any appraisal work over previous petroleum discoveries within the application area the type, scope and objectives of the geotechnical studies proposed within the application area the extent to which the applicant’s technical assessment supports the amount of seismic surveying and

the number and conceptual targets of wells proposed.

4. Particulars of the applicant The technical qualifications of the applicant and its key employees are assessed. The technical advice available to the applicant is assessed. The applicant’s relevant financial resources available to fund the proposed work program and any other

exploration commitments over the next six years are assessed.

When the four matters above are addressed, a tender report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Offshore petroleum retention leaseAn offshore petroleum retention lease entitles the holder to explore for petroleum in the lease area and recover petroleum on an appraisal basis in the lease area, and to carry on such operations and execute such works in the lease area as are necessary for those purposes. The table below outlines the application assessment criteria for an offshore petroleum retention lease lodged under section 130 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

Offshore Petroleum and Greenhouse Gas Storage Act 2010 – Assessment Criteria – Offshore Petroleum Retention LeaseApplication and supporting documents are assessed to ensure that:

Earth Resources Regulation – Application Assessment Guidelines 2016-17 6

1. the permit holder has notified the Minister within three days of a discovery of hydrocarbons as required under section 279 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010

2. the blocks have been nominated and a location has been declared over the discovery

3. the drilling data and electric logs substantiate that hydrocarbon column(s) were actually drilled and a discov-ery made

4. the applicant’s project plans and economic analysis of the discovery substantiates that the discovery is not currently commercially viable

5. there is a possibility of the project being developed

6. the project is not viable over the next 15 years

7. the applicant has the technical and financial capability to undertake the proposed work program and that the proposed work program is satisfactory

8. there are no issues with the applicant’s past performance and compliance.

When the eight matters above are addressed, a technical report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Offshore petroleum production licenceAn offshore petroleum production licence entitles the holder to recover petroleum in the licence area and to recover petroleum from the licence area in another area to which the licensee has lawful access for that purpose, and to explore for petroleum in the licence area and to carry on such operations and execute such works in the licence area as are necessary for those purposes. The table below outlines the application assessment criteria for an offshore petroleum production licence lodged under section 164 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

Offshore Petroleum and Greenhouse Gas Storage Act 2010 – Assessment Criteria – Offshore Petroleum Production LicenceApplication and supporting documents are assessed to ensure that:

1. the permit or lease holder notified the Minister within three days of a discovery of hydrocarbons as required under section 279 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

2. the blocks had been nominated and a location had been declared over the discovery.

3. the Field Development Plan is satisfactory.

4. there are no issues with the applicant’s past performance and compliance.

When the four matters above are addressed, a technical report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Offshore greenhouse gas assessment permitAn offshore greenhouse gas assessment permit entitles the holder to:

(a) explore for a potential greenhouse gas storage formation in the permit area

(b) explore for a potential greenhouse gas injection site in the permit area

(c) inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation so long as the relevant well is situated in the permit area

(d) store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation so long as the injections of the stored greenhouse gas substance take place at a well situated in the permit area

(e) inject, on an appraisal basis, air, petroleum or water into a part of a geological formation so long as the relevant well is situated in the permit area

(f) store, on an appraisal basis, air, petroleum or water in a part of a geological formation so long as the injection takes place at a well situated in the permit area

(g) recover petroleum in the permit area for appraisal

(h) carry on such operations and execute such works in the permit area as are necessary for those

Earth Resources Regulation – Application Assessment Guidelines 2016-17 7

purposes.

The table below outlines the application assessment criteria for an offshore greenhouse gas assessment permit lodged under section 297 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

Offshore Petroleum and Greenhouse Gas Storage Act 2010 – Assessment Criteria – Offshore Greenhouse Gas Assessment PermitApplications for offshore greenhouse gas assessment permits are received through a public tender and are assessed against the following assessment criteria, which are published in the invitation for tenders:

1. The application and supporting documentation are assessed to ensure they meet the requirements of the tender application.

2. The applicant’s technical assessment in their application is assessed to determine how it will progress the assessment of the storage potential of the area.

3. The proposed work program is assessed to determine how it is justified by the technical assessment.

4. The applicant’s assessment of the relevant existing data is assessed to determine if it justifies the amount of seismic surveying, wells and other exploration activities that are proposed in the work program.

5. Activities identified by the applicant to progress the understanding of the area’s storage potential are assessed, including whether the proposed work is logical and achievable.

6. The proposed exploration expenditure detailed in the application is assessed to determine whether it is realistic.

7. The technical qualifications of the applicant and its key employees are assessed.

8. The technical advice available to the applicant is assessed.

9. The applicant’s financial resources to fund the proposed work program, and any other exploration commit-ments over the next six years, are assessed.

10. Any other information the applicant asks to be considered (e.g. how they will undertake engagement activities with their stakeholders throughout the length of a Greenhouse Gas Assessment Permit) are assessed.

When the ten matters above are addressed, a tender report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Offshore greenhouse gas holding leaseAn offshore greenhouse gas holding lease entitles the holder to:

(a) explore for a potential greenhouse gas storage formation in the lease area

(b) explore for a potential greenhouse gas injection site in the lease area

(c) inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation so long as the relevant well is situated in the lease area

(d) store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation so long as the injection of the stored greenhouse gas substance takes place at a well situated in the lease area

(e) inject, on an appraisal basis, air, petroleum or water into a part of a geological formation so long as the relevant well is situated in the lease area

(f) store, on an appraisal basis, air, petroleum or water in a part of a geological formation so long as the injection takes place at a well in the lease area

(g) recover petroleum in the lease area for appraisal

(h) carry on such operations and execute such works in the lease area as are necessary for those purposes.

The application assessment criteria for an offshore greenhouse gas holding lease lodged under section 334 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010 is under development.

Offshore greenhouse gas injection licence

Earth Resources Regulation – Application Assessment Guidelines 2016-17 8

An offshore greenhouse gas injection licence entitles the holder to:

(a) inject a greenhouse gas substance into an identified greenhouse gas storage formation in the licence area

(b) permanently store a greenhouse gas substance in an identified greenhouse gas storage formation that is wholly situated in the licence area

(c) explore for a potential greenhouse gas storage formation in the licence area

(d) explore for a potential greenhouse gas injection site in the licence area

(e) inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation so long as the relevant well is situated in the licence area

(f) store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation so long as the injection of the stored greenhouse gas substance takes place at a well situated in the licence area

(g) inject, on an appraisal basis, air, petroleum or water into a part of a geological formation so long as the relevant well is situated in the licence area

(h) store, on an appraisal basis, air, petroleum or water in a part of a geological formation so long as the injection takes place at a well in the license area

(i) recover petroleum in the licence area for appraisal

(j) carry on such operations and execute such works in the licence area as are necessary for those purposes.

The application assessment criteria for an offshore greenhouse gas injection licence lodged under section 379 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010 is under development.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 9

Application assessment criteria for Petroleum Act 1998 TenementsThis section outlines the application assessment criteria for tenement applications lodged under the Petroleum Act 1998 and the entitlements of these tenements.

Onshore petroleum exploration permitA petroleum exploration permit entitles the holder to explore for petroleum in the permit area and to do anything in the permit area that is necessary for that purpose. The table below outlines the application assessment criteria for an onshore petroleum exploration permit lodged under section 19 of the Petroleum Act 1998.

Petroleum Act 1998 – Assessment Criteria – Onshore Petroleum Exploration PermitApplications for offshore exploration permits are received through a public tender and are assessed against the following assessment criteria, which are published in the invitation for tenders:

1. Application and document assessment

The application and supporting documentation are assessed to ensure they meet the requirements of the tender application.

2. Technical assessment

The applicant’s technical assessment of the petroleum potential of the area is assessed. This includes assessing the concepts underlying its proposed exploration program, and ensuring there is sufficient detail to support that program.

3. Work program

The work program is assessed, including:

the number and timing of exploration wells to be drilled, taking into account whether there is an adequate supporting program of geological and geophysical work

the amount, type and timing of seismic surveying to be carried out other new surveying, data acquisition and seismic reprocessing to be carried out the amount, type and timing of any purchased or licensed existing data any appraisal work over previous petroleum discoveries within the application area the type, scope and objectives of the geotechnical studies proposed within the application area the extent to which the applicant’s technical assessment supports the amount of seismic surveying and

the number and conceptual targets of wells proposed.

4. Particulars of the applicant

The technical qualifications of the applicant and its key employees are assessed. The technical advice available to the applicant is assessed. Whether the applicant has financial resources available to fund the proposed work program and any other

exploration commitments over the next five years is assessed. When the four matters above are addressed, a tender report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Onshore petroleum retention leaseA petroleum retention lease entitles the holder to explore for petroleum in the lease area and to do anything in the lease area that is necessary for, or incidental to, that purpose and to retain a right to apply for a production licence in respect of the lease area. The table below outlines the application assessment criteria for an onshore petroleum retention lease lodged under section 38 of the Petroleum Act 1998.

Petroleum Act 1998 – Assessment Criteria – Onshore Petroleum Retention LeaseApplication and supporting documents are assessed to ensure that:

1. the permit holder has notified the Minister within three days of a discovery of hydrocarbons as required under section 177 of the Petroleum Act 1998

2. the drilling data and electric logs substantiate that hydrocarbon column(s) were actually drilled and a

Earth Resources Regulation – Application Assessment Guidelines 2016-17 10

discovery made

3. the applicant’s project plans and economic analysis of the discovery substantiates that the discovery is not currently commercially viable

4. there is a possibility of the project being developed

5. the project is not viable over the next 15 years

6. the applicant has the technical and financial capability to undertake the proposed work program and the proposed work program is satisfactory

7. there are no issues with the applicant’s past performance and compliance.

When the seven matters above are addressed, a technical report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Onshore petroleum production licenceA petroleum production licence entitles the holder to carry out petroleum production in the licence area and to carry out petroleum exploration in the licence area and to do anything in the licence area that is necessary for, or incidental to, those purposes. The table below outlines the application assessment criteria for an onshore petroleum production licence lodged under section 47 of the Petroleum Act 1998.

Petroleum Act 1998 – Assessment Criteria – Onshore Petroleum Production LicenceApplication and supporting documents are assessed to ensure that:

1. the permit or lease holder notified the Minister within three days of discovering hydrocarbons as required under section 177 of the Petroleum Act 1998

2. the Field Development Plan is satisfactory

3. there are no issues with the applicant’s past performance and compliance.

When the three matters above are addressed, a technical report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 11

Application assessment criteria for Geothermal Energy Resources Act 2005 TenementsThis section outlines the application assessment criteria for tenement applications lodged under the Geothermal Energy Resources Act 2005 and the entitlements of these tenements.

Geothermal exploration permitA geothermal exploration permit entitles the holder to explore for geothermal energy in the permit area and to do anything in the permit area that is necessary for that purpose. The table below outlines the application assessment criteria for a geothermal exploration permit lodged under section 18 of the Geothermal Energy Resources Act 2005.

Geothermal Energy Resources Act 2005 – Assessment Criteria – Geothermal Exploration PermitApplications for offshore exploration permits are received through a public tender and are assessed against the following assessment criteria, which are published in the invitation for tenders:

1. Application and document assessment

Assess that the application and supporting documentation meet the requirements of the tender application.

2. Technical assessment

The applicant’s technical assessment of the geothermal potential of the area is assessed.

3. Work program

The work program is assessed, including:

the number and timing of exploration wells to be drilled, taking into account whether there is an adequate supporting program for the proposed work

the amount, type and timing of seismic surveying to be carried out the amount, type and timing of any purchased or licensed existing data the extent to which the applicant’s technical assessment supports the amount of seismic surveying and

the number of wells proposed.

4. Particulars of the applicant

The technical qualifications of the applicant and its key employees are assessed. The technical advice available to the applicant is assessed. Whether the applicant has the relevant financial resources available to fund the proposed work program

and any other exploration commitments over the next five years is also assessed.

When the four matters above are addressed, a tender report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Geothermal retention leaseA geothermal retention lease entitles the holder to explore for geothermal energy in the lease area and to do anything in the lease area that is necessary for, or incidental to, that purpose and to retain a right to apply for an extraction licence in respect of the lease area. The table below outlines the application assessment criteria for a geothermal retention lease lodged under section 34 of the Geothermal Energy Resources Act 2005.

Geothermal Energy Resources Act 2005 – Assessment Criteria – Geothermal Retention LeaseApplication and supporting documents are assessed to ensure that:

1. there is evidence that potential geothermal resources exists in a format compliant with the geothermal energy reporting code. This evidence should include the geological data, such as temperature measurements and rock properties, used to inform the resource modelling (http://www.geothermal.statedevelopment.sa.gov.au/ageg/geothermal_reporting_code)

2. the applicant’s project plans and economic analysis of the discovery substantiate that the discovery is not currently commercially viable

Earth Resources Regulation – Application Assessment Guidelines 2016-17 12

3. there is a possibility of the project being developed

4. the project is not viable over the next 15 years

5. the applicant has the technical and financial capability to undertake the proposed work program and that the proposed work program is satisfactory

6. there are no issues with the applicant’s past performance and compliance.

When the six matters above are addressed, a technical report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Geothermal extraction licenceA geothermal extraction licence entitles the holder to carry out geothermal energy extraction in the licence area and to carry out geothermal energy exploration in the licence area and to do anything in the licence area that is necessary for, or incidental to, those purposes. The table below outlines the application assessment criteria for a geothermal extraction licence lodged under section 43 of the Geothermal Energy Resources Act 2005.

Geothermal Energy Resources Act 2005 – Assessment Criteria – Geothermal Extraction LicenceApplication and supporting documents are assessed to ensure that:

1. the applicant has provided a commercially viable development plan, including analysis of the risk factors around induced seismicity and adverse groundwater impacts

2. there are no issues with the applicant’s past performance and compliance.

When the two matters above are addressed, a technical report with recommendations is referred to the Minister or the Minister’s delegate for a decision.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 13

Application assessment criteria for Greenhouse Gas Geological Sequestration Act 2009 TenementsThis section outlines the application assessment criteria for tenement applications lodged under the Greenhouse Gas Geological Sequestration Act 2008 and the entitlements of these tenements.

Greenhouse gas sequestration exploration permitA greenhouse gas sequestration exploration permit entitles the holder to explore for greenhouse gas sequestration in the permit area and to do anything in the permit area that is necessary for that purpose and if the holder of the permit discovers an underground geological storage formation in the permit area that is likely to be geologically suitable for the permanent storage of a greenhouse gas substance, the holder has the right to apply for an injection and monitoring licence or a retention lease. The application assessment criteria for a greenhouse gas sequestration exploration permit lodged under section 22 of the Greenhouse Gas Geological Sequestration Act 2008 is under development.

Greenhouse gas sequestration formation retention leaseA greenhouse gas sequestration formation retention lease entitles the holder to explore for greenhouse gas sequestration formation in the lease area and to do anything in the lease area that is necessary for, or incidental to, that purpose and to retain a right to apply for an injection and monitoring licence. The application assessment criteria for a greenhouse gas sequestration formation retention lease lodged under section 60 of the Greenhouse Gas Geological Sequestration Act 2008 is under development.

Greenhouse gas substance injection and monitoring licenceA greenhouse gas substance injection and monitoring licence entitles the holder to carry out greenhouse gas substance injection and monitoring in the licence area and to carry out greenhouse gas sequestration formation exploration in the licence area and to do anything in the licence area that is necessary for, or incidental to, those purposes. The application assessment criteria for a greenhouse gas substance injection and monitoring licence lodged under section 72 of the Greenhouse Gas Geological Sequestration Act 2008 is under development.

Earth Resources Regulation – Application Assessment Guidelines 2016-17 14