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Petroleum Division

www.dmp.wa.gov.au

WA PETROLEUM GUIDELINE – CRITERIA FOR ASSESSMENT

© AWE Ltd

© Empire Oil & Gas

DMPMAR17_4700

Petroleum Division

www.dmp.wa.gov.au

A guideline in relation to the Petroleum and Geothermal Energy Resources Act 1967 (PGERA67) and the Petroleum (Submerged Lands) Act 1982 (PSLA82). Informing the assessment of:

• applicationsfortheawardofpetroleumexplorationpermits,undersection31ofthePGERA67andsection21ofthePSLA82

• applicationsfortheawardofpetroleumdrillingreservations,undersection43BofthePGERA67

• transferapplicationstobecomearegisteredholderofapetroleumtitleinWesternAustralia,undersection72ofthePGERA67andsection78ofthePSLA82.

Bywayofbackground,section30andsection43AofthePGERA67andsection20ofthePSLA82providethelegislativemechanismsfortheMinistertoinviteapplicationsforthegrantofapetroleumexplorationpermitorpetroleumdrillingreservationbywayofacompetitiveapplicationprocess(bidding).Undersection105(3(a)(ii)ofthePGERA67,theMinistermayauthorisetheregisteredholderofaspecialprospectingauthoritytoapplyforthegrantofapetroleumexplorationpermitorpetroleumdrillingreservation,commonlycalledtheacreageoption.

Thisguideline,inrespectof:

• Petroleumexplorationpermits–clarifiestherequirementsundersection31(1)(d)ofthePGERA67andsection21(1)(d)ofthePSLA82.Thesesectionsprovidethatanapplicationforapetroleumexplorationpermitshallbeaccompaniedbyparticularsof:

(i) theproposalsoftheapplicantforworkandexpenditureinrespectoftheblocksspecifiedintheapplication

(ii) thetechnicalqualificationsoftheapplicantandofitsemployees

(iii) thetechnicaladviceavailabletotheapplicant

(iv) thefinancialresourcesavailabletotheapplicant.

• Petroleumdrillingreservation–clarifiestherequirementsundersection43B(1)(d)ofthePGERA67.Thissectionprovidesthatanapplicationforadrillingreservationshallbeaccompaniedby:

(i) theproposalsoftheapplicantforthedrillingofawell,orwells,andotherworkinrespectoftheblock,orblocks,specifiedintheapplication

(ii) thetechnicalqualificationsoftheapplicantandoftheemployeesoftheapplicant

(iii)thetechnicaladviceavailabletotheapplicant

(iv)astatementastothesizeandconfigurationofthepotentialpetroleumdepositasthecaserequiresandageologicalprognosisof the well

(v) astatementoftheapproximatetimeofthecompletionofthewell

(vi)thefinancialresourcesavailabletotheapplicant.

• HowtoApply–specifiestheapprovedmannerformakinganapplicationforthepurposesofsection31(1)(b)andsection43B(1)(b)ofthePGERA67andsection21(1)(b)ofthePSLA82.

• OverviewofCriteriaforAssessment–providesguidanceonothermattersthatanapplicantmayincludeinitsapplicationfortheMinister’sconsiderationinaccordancewithsection31(1)(e)andsection43B(1)(e)ofthePGERA67andsection21(1)(e)ofthePSLA82.Ifthesuggestedinformationisnotvolunteeredinanapplication,theMinistermayrequestthisinformationbeprovided,undersection31(4)andsection43B(4)ofthePGERA67andsection21(4)ofPSLA82.Theinformationprovidedmaythenbeusedtoassistwiththeassessmentoftheapplication.

• Assessment–setsoutthemethodologywhichtheMinistermayregardwhenconsideringwhichofseveralcompetingapplicationsforthesameblock,orblocks(releasearea),isthemostdeservingofthegrantofapetroleumexplorationpermitforthepurposesofsection32A(2)ofthePERA67andsection22A(2)ofthePSLA82andforapetroleumdrillingreservationsundersection43CA(2)ofthePGERA67.

• ApprovalofTransfers–willbeofassistancetopartiesmakinganapplicationforapprovalofatransferoftitle,undersection72ofthePGERA67andsection78ofthePSLA82.Fortransferapplications,thedetailstobesubmittedarelimitedtotechnicalqualifications,technicaladviceandfinancialresourcesavailabletonewmarketentrants,inaccordancewithsection72(3)(b)ofthePGERA67andsection78(3)(b)ofthePSLA82.

PAGE2of13 PD-PTLA-AR-106DRev10

Petroleum Division

www.dmp.wa.gov.au

ThisguidelinehasbeenmadeandapprovedbytheExecutiveDirector,Petroleum,DepartmentofMinesandPetroleum,underdelegation from the Minister for Mines and Petroleum.

Notes:

• Unlessotherwisedefined,termsusedinthisguidelineareconsistentwiththosedefinedinthePGERA67andPSLA82.

• ThisguidelinedoesnotprovidefortheassessmentofapplicationsfortheawardofgeothermalexplorationpermitsorgeothermaldrillingreservationsunderthePGERA67.

• Areferencetothe‘Minister’meanstheMinisterforMinesandPetroleumortheExecutiveDirector,Petroleumasthe Minister’s Delegate.

• InformationrequiredtobesubmittedtotheMinisteristobeaddressedtotheExecutiveDirector,PetroleumattheDepartmentofMines and Petroleum as the Minister’s Delegate.

• Areferencetoreleaseareameansaninvitationforapplications,inrespecttotheblock,orblocks,publishedbyinstrumentintheGovernmentGazetteundersection30andsection43AofthePGERA67andsection20ofthePSLA82.

• Areferencetopermitteemeanstheregisteredholderofapetroleumexplorationpermit.

• Areferencetoaholdermeanstheregisteredholderofapetroleumdrillingreservation.

• Areferencetoaregisteredholder,inthecontextofapprovaloftransfers,meanstheregisteredholderofanypetroleumtitleunderthePGERA67andPSLA82.

• Ayearofaworkprogramisreferredtoasa“permityear”.Thefirsttwopermityearsarecollectivelyreferredtoasthe“firmperiod”andrepresentaguaranteedminimumworkcommitmentbythepermittee.

• Thisguidelinewillbeupdatedasrequiredfromtimetotime.

• ItisatalltimestheresponsibilityoftheapplicanttoensurethatitcomplieswithandisfamiliarwiththerequirementsandobligationsofthePGERA67andthePSLA82andanysubsidiarylegislationmadeundertheseacts,inforcefromtimetotime.

The guideline should be read in conjunction with the following documents:

• WA Petroleum and Geothermal Guideline for Exploration Permit Management

• Western Australia’s Petroleum and Geothermal Explorer’s Guide.


Petroleum Division

www.dmp.wa.gov.auPAGE4of13 PD-PTLA-AR-106DRev10

CONTENTS

1. PETROLEUMEXPLORATIONPERMITS _______________________________________________________________ 5

2. PETROLEUMDRILLINGRESERVATIONS ______________________________________________________________ 5

3. HOWTOAPPLY________________________________________________________________________________ 6

4. OVERVIEWOFCRITERIAFORASSESSMENT ___________________________________________________________ 7

5. BASISFORASSESSMENT ________________________________________________________________________ 8

6. CRITERIAFORASSESSMENT–APPLICANTPROFILE _____________________________________________________ 8

7. CRITERIAFORASSESSMENT–GEOLOGICALEVALUATIONANDEXPLORATIONRATIONALE _________________________ 9

8. CRITERIAFORASSESSMENT–ENVIRONMENTALMANAGEMENT ___________________________________________ 10

9. CRITERIAFORASSESSMENT–NATIVETITLEANDHERITAGEMANAGEMENT ___________________________________ 11

10. CRITERIAFORASSESSMENT–LANDACCESSMANAGEMENT ______________________________________________ 11

11. APPROVALOFTRANSFERS _______________________________________________________________________ 12

12. RE-RELEASEOFACREAGE _______________________________________________________________________ 12

13. MOSTDESERVINGAPPLICANT ____________________________________________________________________ 13

14. ASSESSMENT ________________________________________________________________________________ 13

www.dmp.wa.gov.au

Petroleum Division 1. PETROLEUM EXPLORATION PERMITS

1.1. WesternAustralianpetroleumexplorationpermitsaregrantedinaccordancewiththeprovisionsofthePGERA67inrespectoflandandwaterextendingtothebaselinefromwhichAustralia’sterritorialseaismeasured,andthePSLA82inrespectofWesternAustralia’scoastalwaters(threenauticalmilesseawardofthebaseline).

1.2. Petroleumexplorationpermitsauthorisethepermitteetoexploreforpetroleum,andtocarryonsuchoperationsandexecutesuchworksasarenecessaryforthatpurpose,inthepermitareaandforthetermofthepermit.

1.2.1. Permitsaregrantedforaninitialperiodofsixyearsandaresubjecttoconditionsrequiringworktobecarriedoutbythepermitteeinaccordancewithaworkprogram,andsubjecttoanapplicationand approvalprocess.

1.2.2. Eachyearofaworkprogramisreferredtoasa“permityear”.Thefirsttwopermityearsarecollectivelyreferredtoasthe“firmperiod”andrepresentaguaranteedminimumworkcommitmentbythepermittee.

1.3. Inundertakingpetroleumoperations,thepermitteemustcomplywiththeprovisionsofanyotherapplicablelegislationandallotherrelevantlaws.Workmustbecarriedoutwithdueregardtopublicandworkersafety,protectionoftheenvironmentandtheinterestsofotherswhoalsohaveaninterestinthelands.

1.3.1. Attimes,competingandconflictinginterestsmayoccuranditisthepermittee’sresponsibilitytoconductitsoperationsinamannerthatdoesnotprejudiceitsfutureinterestandthatofothers.

2. PETROLEUM DRILLING RESERVATIONS

2.1. ApetroleumdrillingreservationgrantedunderPGERA67isatitlepredominantlyforthepurposeofdrillingaprospectivetarget.

2.2. Apetroleumdrillingreservationtitlealsoauthorisestheholdertoundertakeotherexplorationworkinsupport of drilling.

2.3. Petroleumdrillingreservationsaregranted,subjecttoconditions,foraperiodofuptoamaximumofthreeyears (atthediscretionoftheMinister).

2.4. Undersection43AofthePGERA67,releaseareasforpetroleumdrillingreservationsmaybeadvertised,assessedandrankedinthesamecompetitivewayasreleaseareasforpetroleumexplorationpermits.

2.5. Theblock,orblocks,subjectofanapplicationmadeundersection43Bmustcontaindetailsofthepotentialpetroleumdepositsandidentifythelocationofadrillabletarget.

2.6. PetroleumdrillingreservationsarenotavailableunderthePSLA82.

2.7. Forconsistency,theoverviewatclause4ofthisguidelinemaybeofassistanceinthepreparationofapplicationsforpetroleumdrillingreservationsmadeundersection43B(1)(d)(i-vi),includingothermattersthattheapplicantwishestheMinistertoconsiderundersection43B(1)(e).

2.8. Ifothermatters,describedinClause4,arenotincludedinanapplicationforapetroleumdrillingreservation,theMinistermayrequestthisinformationbeprovidedundersection43B(4)ofthePGERA67.

2.9. Petroleumdrillingreservationapplicationsshouldgiveearlyconsiderationtothecontentsofawellmanagementplan,whichisapostgrantrequirement,underPart3andSchedule1ofthePetroleumandGeothermalEnergyResources(ResourceManagementandAdministration)Regulations2015.

2.10. Inundertakingpetroleumoperations,theholderofapetroleumdrillingreservationmustcomplywiththeprovisionsofanyotherapplicablelegislationandallotherrelevantlaws.Workmustbecarriedoutwithdueregardtopublicandworkersafety,protectionoftheenvironmentandtheinterestsofotherswhoalsohaveaninterestinthelands.

2.10.1. Attimes,competingandconflictinginterestsmayoccuranditistheholder’sresponsibilitytoconductitsoperationsinamannerthatdoesnotprejudiceitsfutureinterestandthatofothers.


www.dmp.wa.gov.au

Petroleum Division 3. HOW TO APPLY

Forthepurposeofsection31(1)(b)andsection43B(1)(b)ofthePGERA67andsection21(1)(b)ofthePSLA82–fromaninvitationtoapply,forapetroleumexplorationpermitorpetroleumdrillingreservation,fromanacreagerelease–

3.1. Theapprovedmannerforlodgementofanapplicationisthroughthedepartment’ssecureonlinePetroleumandGeothermalRegister(PGR)bytheclosingdateandtimestipulatedintheGovernmentGazettenoticeinvitingapplicationsforthegrantofapetroleumexplorationpermitorpetroleumdrillingreservation,andpaymentoftheprescribedapplicationfee.

3.1.1. Applicationswillnolongerbeacceptedbyhanddeliveryorpost.

3.1.2. ApplicantsareadvisedtoregisterforaccesstoPGRatleasttwobusinessdaysinadvanceoftheclosingdate and time.

3.1.3. LodgementofapplicationsusingPGRwillbeavailablefromthedateoftheGovernmentGazettenoticeinvitingapplications.ApplicantsshouldnotethatPGRwillpreventlodgementofapplicationsafterthe closingdateandtime.

3.1.4. PaymentoftheprescribedapplicationfeemustbemadethroughPGRfortheapplicationtobe consideredlodged.

Forthepurposeofsection31(1)(b)andsection43B(1)(b)ofthePGERA67,whenexercisingtheacreageoptionofaspecialprospectingauthority,forapetroleumexplorationpermitorpetroleumdrillingreservation–

3.2. TheapprovedmannerforlodgementofanapplicationisviatheDepartment’ssecureonlinePetroleumandGeothermalRegister(“PGR”)bythedatespecifiedinthespecialprospectingauthorityinstrumentofgrant,andpaymentoftheprescribedapplicationfee.

3.2.1. Applicationswillnolongerbeacceptedbyhanddeliveryorpost.

3.2.2. ApplicantsareadvisedtoregisterforaccesstoPGRatleasttwobusinessdaysinadvanceofthedatespecifiedinthespecialprospectingauthorityinstrumentofgrant.

3.2.3. PaymentoftheprescribedfeemustbemadeviaPGRfortheapplicationtobeconsideredlodged.

3.3. Forthepurposesofsection72(3)(a)ofthePGERA67andsection78(3)(a)ofthePSLA82thelodgementofanapplicationfortransferofatitleisviathedepartment’ssecureonlinePGR,includingthelodgementoftheapplicationandtheprescribedformofinstrumentoftransfer.


Petroleum Division

www.dmp.wa.gov.au

4.

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Petroleum Division

www.dmp.wa.gov.au

5. BASIS FOR ASSESSMENT

5.1. ApplicationsareassessedbyapanelofdepartmentalstaffonthebasisoftheinformationsubmittedintheapplicationtogetherwithanyadditionalinformationrequestedbytheMinister.

5.2. ThebasisforassessmentforeachcriterionisthattheMinistermustbereasonablysatisfiedthattheapplicanthasadequatelyaddressedthecriteriawithconsiderationtotherequirementsofthisguideline.

5.2.1. TheMinisterwillnotconsiderapplicationsthatfailtoaddress,ataminimum,therequirementsinrespecttosection31(1)(d)(i-iv)andsection43B(d)(i-vi)ofthePGERA67andsections21(1)(d)(i-iv)ofthePSLA82(proposalsforworkandexpenditure,technicalresourcesandadviceavailableandfinancialresourcesavailable).

5.2.2. Wheremorethanoneapplicationisreceivedforapetroleumexplorationpermitreleaseareaorpetroleumdrillingreservationreleasearea,theMinistermayofferthegranttowhicheverapplicant,inhisopinion,isthemostdeserving(seeClause14–Assessment).

5.2.3. Informationprovidedundersection31(1)(e)and43B(1)(e)ofthePGERA67andsection21(1)(e)ofthePSLA82maybeutilisedtoidentifythemostdeservingapplicant.

5.2.4. Fortheavoidanceofdoubt,theMinisterwillrefuseanapplicationwhereheconsiderstheapplicantisnotdeservingofthegrantofapetroleumexplorationpermitorpetroleumdrillingreservation,havingregardtothecriteriainthisguideline.

5.3. Inaccordancewithsection314)andsection43B(4)ofthePGERA67andsection21(4)ofthePSLA82,theMinistermayatanytimerequestfurtherinformationinconnectionwithanapplication.

5.3.1. Applicantsmaybeinvitedtoattendaninterviewwiththepaneltoclarifyinformationsubmitted.

5.3.2. Itshouldbenotedthatthecompositionandtimingoftheproposedworkprogrammaybeclarifiedbutcannotbeamendedbytheprovisionofadditionalinformationorthroughtheinterviewprocess.

5.3.3. AnapplicantfortheawardofapetroleumexplorationpermitorpetroleumdrillingreservationmayberequiredtofurnishtheMinisterwithevidenceofitscontinuedsuitabilityinrespecttothecriteriaoutlinedinthisguideline,untilsuchtimeasthepetroleumexplorationpermitorpetroleumdrillingreservationmaybeofferedforgrant.

6. CRITERIA FOR ASSESSMENT – APPLICANT PROFILE

For the purpose of section 31(1)(d) and section 43B(1)(d)(ii) and(iii) of the PGERA67 and section 21(1)(d) of the PSLA82 –

6.1. Applicantsmustprovideanapplicantprofilewithparticularsof:

6.1.1. thetechnicalqualificationsoftheapplicantandofitsemployees

6.1.2. thetechnicaladvice/expertiseavailabletotheapplicant

6.1.3. thefinancialresourcesavailabletotheapplicant,includingevidenceoftheapplicant’sabilitytofundtheproposedworkprogram

6.1.4. whererelevant,thefutureviabilityoftheconsortiumlodgingtheapplication,includingevidencethatasatisfactorysettlementhasbeen,orcanbereachedonajointoperatingagreement

6.1.5. thepercentageparticipatinginterestofeachapplicant

6.1.6. asinglecontactinrespecttotheapplication.

6.2. Alltechnicalandfinancialinformationsuppliedintheapplicantprofilemustbeconsistentacrosseachofthe assessmentcriteria.

For the purpose of section 31(1)(e) and section 43B(1)(e) of the PGERA67 and section 21(1)(e) of the PSLA82 –

6.3. Applicantsmayincludethefollowingparticularsinitsapplicantprofile:

6.3.1. detailsoftheapplicantanditsrelationshiptoanymajorcorporationorgroup,substantialshareholding,directors,principalbusinessactivity,andplaceofincorporation/business

6.3.2. wheretheapplicantisaforeigncompany,itsacknowledgementoftherequirementsforapprovalbytheAustralianForeignInvestmentReviewBoard(FIRB),and/orproposalforregisteringanAustralianentity

6.3.3. theapplicant’scurrentandpriorinvolvementinpetroleumexplorationanddevelopmentinothernationalorinternationaljurisdictions,includingworkcommitmentsforotherpetroleumtenure

6.3.4. theapplicant’spastperformanceinrespectofmattersofcompliance(orfailuretocomply)underthePGERA67and/orPSLA82.


Petroleum Division

www.dmp.wa.gov.au

6.4. Whererelevant,itistheresponsibilityoftheapplicanttoprovidesufficientcompellingevidencetojustifywhythecircumstancesleadingtopoorpastperformancehavebeenmitigatedorresolvedsuchthatthechanceofreoccurrenceisaslowasreasonablypracticable.

7. CRITERIA FOR ASSESSMENT – GEOLOGICAL EVALUATION AND EXPLORATION RATIONALE

For the purpose of sections 31(1)(d)(ii-iii) of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –

7.1. Applicantsmustprovideageologicalevaluationandexplorationrationalelinkedtoasixyearproposedworkprogramcommensuratewiththesizeofthereleasearea,detailing:

7.1.1. theapplicant’sgeologicalevaluationofthereleasearea,includingpotentialpetroleumsystemsandplays

7.1.2. theapplicant’sassessmentofexistingdata,whererelevant.

7.1.3. therationaleunderlyingtheproposedworkprogramwithsufficientdetailtosupportthatprogram

7.1.4. howthecommitmentsintheproposedworkprogramwillinvestigatetheplays,prospects,and/orleadsidentifiedinthegeologicalevaluationofthereleasearea.

7.2. Applicantsmustdemonstratethattheproposedworkprogramwillsignificantlyprogresstheassessmentofthepetroleumpotentialand/ordevelopthegeologicalknowledgeofthereleasearea.

7.2.1. Theproposedworkprogrammustbecredible,coherentandsupportable,andmustnotcontainanycontingentwork.

7.2.2. Thefirmperiodcommitmentsaresufficienttoenablelaterworkprogramcommitments.

7.2.3. EachcommitmentexpressedintheproposedworkprogrammustbeaccompaniedbyanindicativecostexpressedinAustraliandollars.Thisisforassessmentpurposesonlyanddoesnotimplyanyobligationonthepartoftheapplicanttoexpendsuchamounts.

7.2.3.1.Applicantsshouldnotethattheindicativecostwillbetakenintoaccountintheassessmentoftheapplicant’sknowledgeofexplorationtechniques.

7.2.4. Onlyworkproposedtobeundertakenwithin,orinrespectto,theareathesubjectofapetroleumexplorationpermitwillbeconsideredaspartoftheworkprogram.

Theproposedworkprogramwillbeassessedhavingregardto:

7.2.5. thequantity,type,andtimingofanynewgeochemical,geological,and/orgeophysicalsurveyingtobeundertaken

7.2.6. thequantity,type,andtimingofgeochemical,geological,and/orgeophysicalsurveydatatobepurchasedorlicenced,and/orreprocessedorreinterpreted.

7.2.6.1.Itisexpectedthatpurchasedorlicencedreprocesseddatawillhavebeenreprocessedfromrawdata.

7.2.6.2.Pre-purchased,non-exclusivesurveydatacannotformpartoftheproposedworkprogram;but,anyinterpretationofthatdatawillbetakenintoaccountinassessingtherelativemeritsoftheproposed workprogram.

7.2.6.3.Non-exclusivesurveydataproposedtobepurchasedaftertheawardofapetroleumexplorationpermitmayformpartoftheworkprogramprovidedthatthiswillnotdisadvantageotherapplicantswhohavepurchasedthedatapriortomakinganapplication.

7.2.7. thenumber,type(slim-hole,stratigraphic,open-hole,cased,etc.),andtimingofexplorationwellstobedrilled,providedthereisacoherentrationale

7.2.8. workintendedtoappraiseaknownpetroleumresourcecannotformpartoftheproposedworkprogramunlessitcanbedemonstratedtohaveasignificantexplorationcomponent

7.2.9. proposedworkconsideredequivalentorinferiortoworkpreviouslycarriedoutwillnotbeconsideredexplorationworkforthepurposeofprogressingtheassessmentofthepetroleumpotentialofthereleasearea.

For the purpose of sections 31(1)(d)(ii-iii) of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –

7.3. Applicantsmustprovidedetailsofitstechnicalexpertiseavailable(throughemployees/consultants/contractors)tobeusedtoensuretheminimumcommitmentsinthefirmperiod(only)oftheproposedworkprogrammaybesuccessfullyundertaken.

For the purpose of section 31(1)(d)(iv) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –

7.4. Applicantsmustprovideevidenceasassuranceofitsfinancialcapacitytoundertakethecommitmentsinthefirm period(only)oftheproposedworkprogram,includingexperienceraisingcapitaltosuccessfullyundertakeexploration(whererelevant).


Petroleum Division

www.dmp.wa.gov.au

For the purpose of section 31(1)(e) of the PGERA67 and section 21(1)(e) of the PSLA82 –

7.5. Applicantsmayincludeinitsrationaledetailsofanypotentialbarriersthatmayimpacttheproposedworkprogramandhowsuchbarrierscouldbeovercome;e.g.landuse,infrastructureorseasonalrestrictions.

For the purpose of section 43B(1)(d)(i),(iv) and (v) of the PGERA67 –

7.6. Applicantsmustprovideageologicalevaluationandexplorationrationalelinkedtotheproposedworkprogramcommensuratewiththesizeoftheapplicationarea,detailing:

7.6.1. theapplicant’sgeologicalevaluationofthereleasearea,includingpotentialpetroleumsystemsandplays

7.6.2. theapplicant’sassessmentofexistingdata,whererelevant

7.6.3. therationaleunderlyingtheproposedworkprogramwithsufficientdetailtosupportthatprogram

7.6.4. howtheproposedworkprogramwillinvestigatetheplays,prospectsand/orleadsidentifiedinthe geologicalevaluation

7.6.5. thesizeandconfigurationofthepetroleumdepositandgeologicalprognosis

7.6.6. thetype(slim-hole,stratigraphic,open-hole,cased,etc.)andapproximatetimingofthecompletionofthewell.

7.7. Eachwell,orotherworkcommitmentexpressedintheproposedworkprogrammustbeaccompaniedbyanindicativecostexpressedinAustraliandollars.Thisisforassessmentpurposesonlyanddoesnotimplyanyobligationonthepartoftheapplicanttoexpendsuchamounts.

7.7.1. Applicantsshouldnotethattheindicativecostwillbetakenintoaccountintheassessmentoftheapplicant’sknowledgeofexplorationtechniques.

For the purpose of section 43B(1)(d)(ii) and (iii) of the PGERA67 –

7.8. Applicantsmustprovidedetailsofitstechnicalexpertiseavailable(throughemployees/consultants/contractors)tobeutilisedtoensuretheproposedworkprogrammaybesuccessfullyundertaken.

For the purpose of section 43B(1)(d)(vi) of the PGERA67 –

7.9. Applicantsmustprovideevidenceasassuranceofitsfinancialcapacitytoundertaketheproposedworkprogram.

For the purpose of section 43B(1)(e) of the PGERA67 –

7.10. Applicantsmayincludeinitsrationaledetailsofanypotentialbarriersthatmayimpacttheproposedworkprogramandhowsuchbarrierscouldbeovercomesuchaslanduse,infrastructureorseasonalrestrictions.

8. CRITERIA FOR ASSESSMENT – ENVIRONMENTAL MANAGEMENT

For the purpose of sections 31(1)(d)(ii-iii) and section 43B(1)(d)(ii-iii) of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –

8.1. Applicantsmustprovidedetailsofitstechnicalexpertiseavailable(throughemployees/consultants/contractors)toidentify,understandandmanagethepotentialenvironmentalrisksandimpactstoaslowasreasonablypracticable,forthepurposeofthecommitmentsinthefirmperiod(only)oftheproposedworkprogramforapetroleumexplorationpermitorthewellstobedrilledunderapetroleumdrillingreservation.

8.2. Whereapplicable,thespatialrelationshipbetweenthecommitmentsinthefirmperiodoftheproposedworkprogramforapetroleumexplorationpermit,orwellstobedrilledunderapetroleumdrillingreservation,andidentifiedsensitiveenvironmentalareasandaspectswithinthedefinedareaandinthesurroundingarea,shouldbedemonstrated.

8.3. Sensitiveenvironmentalareasandaspectsmayinclude(butarenotlimitedto):

8.3.1. culturalandheritagesites

8.3.2. publicdrinkingwatersourceareas(andothersensitivewaterresources)

8.3.3. marineandterrestrialprotectedareas

8.3.4. areasofprotectedorrareandendangeredfloraorfauna

8.3.5. areasofsignificanthabitat(includingcorals,seagrasses,mangroves,andwetlands)

8.3.6. areasoftemporalsignificance(includingbreedinggrounds,migrationroutesandrestingandaggregationareas).

8.4. Forthepurposeofclauses9.1and9.2,inareaswithknownsensitiveenvironmentalareasandaspects,applicantsshouldundertakedesktopsurveystoclarifysensitivitiesforsubmissionintheapplication.


Petroleum Division

www.dmp.wa.gov.au

For the purpose section 31(1)(d)(iv) and section 43B(1)(d)(vi) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –

8.5. Applicantsmustprovideevidenceasassuranceofitsfinancialcapacitytomanagethepotentialworstcaserisksandimpactstotheenvironmentassociatedwithundertakingthecommitmentsinthefirmperiod(only)oftheproposedworkprogramforapetroleumexplorationpermitorthewellstobedrilledunderapetroleumdrillingreservation.


8.6. ApplicantsmayprovidedetailsofpastperformanceinrespecttomattersofassessmentandcomplianceagainstStatelegislation,suchastheEnvironmental Protection Act 1986(andassociatedRegulations),Contaminated Sites Act 2003,PGERA67,PetroleumandGeothermalEnergyResources(Environment)Regulations2012,PSLA82,andthePetroleum(SubmergedLands)(Environment)Regulations2012.

8.7. ApplicantsmayprovidedetailsofitspastperformanceinrespecttomattersofassessmentandcomplianceundertheCommonwealthEnvironment Protection and Biodiversity Conservation Act 1999.

9. CRITERIA FOR ASSESSMENT – NATIVE TITLE AND HERITAGE MANAGEMENT

9.1. Beforeapetroleumexplorationpermitorpetroleumdrillingreservationmaybeofferedforgrant,theapplicantmustfirstcomplywiththefutureactprovisionsoftheCommonwealthNative Title Act 1993(“NTA93”).

For the purpose of sections 31(1)(d)(ii-iii) and section 43B(1)(d)(ii-iii)of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –

9.2. Applicantsmustprovidedetailsofthetechnicalexpertiseavailabletotheapplicant(throughemployees/consultants/contractors)tobeusedtofulfilthefutureactprovisionsoftheNTA93.

For the purpose of section 31(1)(d)(iv) and section 43B(1)(d)(vi) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –

9.3. ApplicantsmustprovideevidenceasassuranceofitsfinancialcapacitytomanageproceedingsrequiredtomeetthefutureactprovisionsoftheNTA93.

For the purpose of section 31(1)(e) and section 43B(1)(e) of the PGERA67 and 21(1)(e) of the PSLA82 –

9.4. Applicantsmayprovidedetailsofpastperformanceinrespectto:

9.4.1. workingwithAboriginalstakeholdersonsites,objectsorculturalheritagematters

9.4.2. negotiating‘ingoodfaith’undertheNTA93

9.4.3. theAboriginal Heritage Act 1972

9.4.4. reserved land under the Aboriginal Affairs Planning Authority Act 1972.

9.5. ApplicantsmayprovideastatementofcommitmenttoundertakeduediligenceinpreservingandprotectingAboriginalheritage,includingitsintentiontocommissionculturalheritagesurveys(ifrequired),andcommissionheritagemonitors(whereapplicable)duringon-groundoperationalactivitiesinrespectofthecommitmentsinthefirmperiod(only)oftheproposedworkprogram.

10. CRITERIA FOR ASSESSMENT – LAND ACCESS MANAGEMENT

10.1. Earlyandongoingengagementwithrelevantstakeholderswillassistinensuringlocalandregionalvaluesandsensitivitiesareadequatelyconsidered,particularlyinthecontextofoverlappinglanduses.

10.2. Withreferencetosection117ofthePGERA67andsection124ofthePSLA82,theregisteredholderofapetroleumexplorationpermitorpetroleumdrillingreservationmustadoptagoodneighbourphilosophyandcarryoutalloperationsinamannerthatdoesnotinterferewithothers’rightstoagreaterextentthanisnecessaryforthereasonableexerciseoftherightsandperformanceofthedutiesoftheregisteredholder.

10.3. Applicantsshouldbeawareoftheprovisionsofsection15AofthePGERA67andnotethatconsentoftheMinisterisrequiredforentryonreservesforthepurposesofexploration.

10.4. Applicantsshouldbeawareoftheprovisionsofsection91BofthePGERA67andnotethattheMinistermaygrantapetroleumexplorationpermitorpetroleumdrillingreservationsubjecttoaconditionprohibitingentryontospecifiedland.

10.5. Inaddressingthecriteria,applicantsforapetroleumexplorationpermitshouldfocusonstakeholderidentificationand,whereapplicable,stakeholderengagementpriortothegrantofapetroleumexplorationpermitandduringthefirmperiodoftheproposedworkprogram.

10.6. Inaddressingthecriteria,applicantsforapetroleumdrillingreservationshouldfocusontheperiodspriortothegrantand during the term of a petroleum drilling reservation.


Petroleum Division

www.dmp.wa.gov.au

11.

12.

For the purpose of sections 31(1)(d)(ii-iii) and section 43B(1)(d)(ii-iii)of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –

10.7. An applicant must provide details of its technical expertise available (through employees/consultants/contractors) to be utilised for the management of land access, consultation and stakeholder engagement, and having regard to clause 10.2.

10.8. Where applicable, applicants must also provide details of its technical capacity to satisfy the requirements of sections16 through 20 of the PGERA67 with respect to consent and compensation for accessing certain lands.

For the purpose of section 31(1)(d)(iv) and section 43B(1)(d)(vi) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –

10.9. Applicants must provide evidence as assurance of its financial capacity to manage land access, consultation andstakeholder engagement, and having regard to clause 10.2.

10.10. Where applicable, applicants must also provide details of its financial capacity to satisfy the requirements of sections16 through 20 of the PGERA67 with respect to consent and compensation for accessing certain lands.


10.11. Applicants may provide details of past performance in respect to:

10.11.1. negotiating private land access agreements

10.11.2. negating potential barriers to land access that may impact the proposed work program such as land use,infrastructure or seasonal restrictions

10.11.3. utilising industry standards and/or codes of conduct/practice for management of land access, consultation, andstakeholder engagement.

10.12. Applicants should note that post grant of a petroleum exploration permit or petroleum drilling reservation, thePetroleum and Geothermal Energy Resources (Environment) Regulations 2012 require an appropriate level ofconsultation with relevant authorities, interested persons and organisations for the approval of an environment planfor petroleum operations.

APPROVAL OF TRANSFERS

11.1. Section 72 of the PGERA67 and section 78 of the PSLA82 provide for the approval and registration of a transfer of a title.

11.2. In a case where the transferee, or one or more of the transferees, is not a registered holder, or are not registered holdersof the title, an application must include:

(i) the technical qualifications of that transferee or those transferees.

(ii) details of the technical advice that is or will be available to that transferee or those transferees.

(iii) details of the financial resources that are or will be available to that transferee or those transferees.

11.3. For consistency, the overview at Clause 5 of this Guideline will be of assistance to transferees in respect to 11.2 above.

RE-RELEASE OF ACREAGE

12.1. The re-release of a release area will be at the discretion of the Minister and will usually occur once in the same graticularblock configuration.

12.2. It is generally intended that an area will be re-released if the Minister does not receive an application considereddeserving of the award of a petroleum exploration permit or petroleum drilling reservation.

12.3. A release area may also be re-released if a most deserving application is refused prior to the grant of a petroleumexploration permit.

12.4. Where possible, the closing date and time for lodgement of applications in respect of re-release areas will coincide withthe normal acreage release process.


Petroleum Division

www.dmp.wa.gov.au

13. MOST DESERVING APPLICANT

13.1. TheMinisterwillemploythemethodologyprovidedinClause14–Assessment–todeterminethemostdeservingapplicantforthepurposesofsection32Aandsection43CAofthePGERA67andsection22AofthePSLA82.

13.2. TheMinistermayalsoinviteapplicantstomeetwiththedepartmentforinterviewforthepurposeofclause13.1. Onceapplicationsarereceivedtheycannotbeamended;withtheexceptionofclause13.5.

13.3. TheMinistermayrequestfurtherinformation,inrelationtoanapplication,inaccordancewithsection31(4)andsection43B(4)ofthePGERA67orsection21(4)ofthePSLA82.

13.4. NewmarketentrantstoWesternAustraliamaybeaskedtoprovideinformationastopastperformancefromothernationalorinternationaljurisdictions.

13.5. IftheMinisterisoftheopinionthattwoormoreapplicantsareequallydeservingofthegrantofapetroleumexplorationpermitorpetroleumdrillingreservationafterassessmentagainstthemethodology,theMinistermayrequestadditionalworkandexpenditure,withinthefirmperiod,todeterminethemostdeservingapplicantforthepurposeofsection32A(5)andsection43CA(5)ofthePGERA67andsection22A(5)ofthePSLA82).

14. ASSESSMENT

14.1. TheMinisterwillemployatwo-stepmethodologytodeterminethemostdeservingapplicantforthepurposesofsection32Aandsection43CAofthePGERA67andsection22AofthePSLA82.

14.2. Table1belowprovidesfortheinitialapplicationassessmentforbothsoleandcompetitivebids.

14.3. Table2belowprovidesforanapplicantcomparativeassessmentofcompetingbidstoidentifythemost deservingapplicant.

14.4. Asstatedaboveinclause13.5,IftheMinisterisoftheopinionthattwoormoreapplicantsareequallydeservingofthegrantofapetroleumexplorationpermitorpetroleumdrillingreservationafterassessmentagainstthemethodology,theMinistermayrequestadditionalworkandexpendituretodeterminethemostdeservingapplicantforthepurposeofsection32A(5)andsection43CA(5)ofthePGERA67andsection22A(5)ofthePSLA82).

Table 1 – Application assessment (for sole and competitive bids) – e.g. ‘Application A’– refer to Clause 4 of Guideline Overview of Criteria for Assessment.

To meet the requirements of:

Applicantprofile Geologicalevaluation and

explorationrationale

Environemtnal management

NativeTitleandHeritagemanagement

Landaccessmanagement

Comment/s

Workandexpenditure N/A N/A N/A N/A

Technicalresources

Financialresources

Othermattersofconsideration

N/A=notapplicable(seeClause4–OverviewofCriteriaforAssessment)

Table 2 – Comparitive assessment for competitive bids

Application A B

Workandexpenditure

Technicalresources

Financialresources

Othermattersofconsideration

Comment

Mostdeservingrank

Key: Superior Relevantbutinferior SignificantlyInferior Equal


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