The Petroleum and Geothermal Energy Resources (Resource Management and Administration) Regulations 2013

Abstract

These Regulations have been proposed under the Petroleum and Geothermal Energy Resources Act 1967 to replace the existing Schedule of Onshore Petroleum Exploration and Production Requirements 1991 (Amended 21 May 2010). The Department of Mines and Petroleum (DMP) is the agency that administers the regulations on behalf of the Minister and keeps the Minister informed of petroleum or geothermal energy resource activities. A draft was released on 5 April 2014 for public comment. The precise form and language of the proposed Regulations may change after public consultation, but the intent of the regulations will remain the same. The regulations will provide the framework for administration and compliance for petroleum field developments, geothermal energy projects, well construction and data submission and release. Activities are expected to be carried out in accordance with good oilfield practice and be compatible with the optimum long-term recovery of petroleum or geothermal energy. The Resource Management and Administration Regulations (RMA) have moved from a prescriptive type of regime to an objectives-based risk management regime requiring operators to manage their operations ensuring world’s leading practice and a fit-for-purpose design. It is expected that operators will apply the relevant standards appropriate for their activities. It is understood also that technology will change and that standards might be changed to embrace the new technology. It is this factor that makes objectives-based regulation more apt than prescription-based regulation. Another factor is that prescription is unlikely to cover every possible circumstance that might occur. The focus is on a whole-of-life approach to exploration and development, from an initial exploration process, through any well interventions all the way to final decommissioning. This includes requiring titleholders to consider what maintenance and monitoring programs will be in place throughout the life of wells and to be ready for eventual decommissioning. The DMP has a continuous improvement process which involves monitoring developments in regulation worldwide. Published papers on drilling, completion, hydraulic stimulation, cementing and production on both conventional reservoirs and also shale and tight sands have been, and continue to be, researched to ensure that the regulations cover all aspects of petroleum and geothermal resource development.