Offshore Petroleum and Greenhouse Gas Storage
Section 572 of the OPGGS Act places duties on titleholders for maintenance and removal of structures, equipment and property bought onto title. Section 572 (3) states:
A titleholder must remove from the title area all structures that are, and all equipment and other property that is, neither used nor to be used in connection with the operations:
- in which the titleholder is or will be engaged; and
- that are authorised by the permit, lease, licence or authority.
NOPSEMA is the independent statutory authority that regulates health and safety, structural well integrity and environmental management for offshore petroleum, established under the OPGGS Act.
Titleholders are required to submit Environment Plans (EPs) to NOPSEMA. They are required to have that EP accepted by NOPSEMA before starting any activity, such as exploration, production, and decommissioning. These plans need to be revised and updated every 5 years.
Titleholders can seek a deviation from the requirement to remove property. This is assessed by NOPSEMA case by case. In limited circumstances, it may be permittable for titleholders to leave property in-situ, rather than removing it, where equal or beneficial environmental outcomes can be achieved while meeting safety and all other applicable requirements under the OPGGS Act and regulations, and other applicable laws. In these instances, an environment plan must show that the proposed arrangement reduces environmental impacts and risks to as low as reasonably practicable and to an acceptable level, and is consistent with the principles of ecologically sustainable development.
Sea dumping
The Environment Protection (Sea Dumping) Act 1981 (Sea Dumping Act) regulates:
- loading and dumping of waste at sea (waste for this purpose includes the disposal of carbon dioxide into a sub-seabed geological formation)
- any creation of artificial reef in Commonwealth waters.
The Sea Dumping Act protects Australia’s oceans from waste and pollution dumped at sea. Where a titleholder is seeking to dump or abandon oil and gas infrastructure in-situ, they may also need a sea dumping permit.
The final decision to grant or refuse an application to dump or abandon property and infrastructure under the Sea Dumping Act sits with the Minister for the Environment and Water.
Environment Protection and Biodiversity Conservation
The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is the Australian Government’s central piece of environmental legislation. The Minister for Environment and Water endorsed NOPSEMA’s process as a program that meets the requirements of part 10 of the EPBC Act. The minister also made a class approval for all actions which follow NOPSEMA’s endorsed program, negating the need for these actions to undergo individual assessment under the EPBC Act. The class approval covers all petroleum activities and greenhouse gas activities subject to a few exceptions (the specific exceptions are listed in the Minister’s Approval). One of the actions covered includes decommissioning activities in Commonwealth waters.
The EPBC Act applies if there is a likelihood of an impact on a matter of national environmental significance. A referral may still be required for activities that occur outside the title area if actions are:
- not covered by NOPSEMA’s Program
- likely to have a significant impact on a matter of national environmental significance.
International Regulations
London Convention and Protocol
The London Protocol is a modern form of the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972. Australia ratified this convention in 1981 with the Environment Protection (Sea Dumping) Act 1981. The London Protocol aims to protect and preserve the marine environment from all sources of pollution and take effective measures to prevent, reduce, and eliminate pollution caused by dumping of wastes or other matter at sea.
Basel Convention
The Basel Convention on the Control of Transboundary Movements of Hazardous Waste is an international treaty that ensures hazardous waste is dealt with appropriately. Australia ratified the treaty in 1992. It was implemented in domestic legislation through the Hazardous Waste (Regulation of Exports and Imports) Act 1989 (Hazardous Waste Act). This requires that entities have a permit to export from, import to and transit waste through Australia.
Minamata Convention
The Minamata Convention on Mercury is an international treaty that seeks to protect human health and the environment from anthropogenic (caused by humans) emissions and releases of mercury and mercury compounds. Australia ratified the Minamata Convention in 2021.
Hong Kong Convention
The Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships will enter into force on 26 June 2025. Australia has not yet acceded to the Convention.
Other conventions and treaties
Other conventions and treaties that will influence decommissioning include the United Nations Convention on the Law of the Sea, and Australia’s bilateral treaties with countries such as Indonesia and Timor-Leste.