Table of contents

1.1 Access Arrangements
1.2 Easements and Rights of Way
1.3 Compensation
1.4 Protection of Houses, Gardens and Improvements
1.5 Inspection and Control

Part 2: Production Leases

2.1 Compensation
2.2 Protection of Houses, Gardens and Improvements
2.3 Protection of Cultivated Lands
2.4 Notification of Application for a Petroleum Production Lease
2.5 Requirement to Receive Development Approval

Part 1: Prospecting Titles

Petroleum Prospecting titles in NSW are Petroleum Exploration Licences, Petroleum Special Prospecting Authorities and Petroleum Assessment Leases. Petroleum prospecting titles are granted for periods of between one and six years. All Sections and Section numbers mentioned in this document, refer to sections of the Petroleum (Onshore) Act 1991.

1.1 Access Arrangements

The holder of a prospecting title may not carry out prospecting operations other than in accordance with an access arrangement with the land owner (Section 69C). These arrangements must be agreed between the holder and each landholder or determined by an arbitrator in accordance with the Act. The agreements can be oral or written, (although written arrangements would often be preferable) and can be entered into before or after the grant of the title. Such arrangements may provide for the following (Section 69D):

• periods during which access may be permitted
• parts of the land on which prospecting may be undertaken
• kinds of prospecting that may be undertaken
• conditions to be observed during prospecting
• protection of the environment
• compensation to be paid to the landholder (see Note below)
• manner of resolving disputes
• manner of varying the agreement
• any other matter the parties may wish to include

Note: Compensation can be agreed to under the access arrangement or determined separately. The issue of compensation is dealt with in 1.2.

If the holder of a prospecting title wishes to enter your land a written notice must be served on you giving notice of the holder’s intention to obtain an access arrangement. The notice must contain a plan and description of the area of land over which access is sought and a description of the prospecting methods intended to be used (Section 69E).

If an agreement with regard to an access arrangement cannot be reached within 28 days after the service of the notice, the holder may, by further notice, request your agreement to the appointment of a mutually acceptable arbitrator. If after 28 days from the service of this second notice the parties have been unable to agree on the appointment of an arbitrator, either party can apply to the Director-General to appoint an arbitrator from the Minister’s panel of arbitrators. The arbitration process is covered by Sections 69F to 69U, and is outlined under separate cover ‘ARBITRATION PROCESS TO ACCESS OF LANDS on Titles/Landholder’s Rights section of the website (www.dpi.nsw.gov.au).

1.2 Easements and Rights of Way

The Minister may, at his discretion, grant temporary rights of way for the construction of access roads to the land comprised in a petroleum title. The Minister may, from time to time vary or revoke any grants under Section 106.

The Minister may not grant consent under Section 106:

• in respect of lands within a state conservation area (National Parks & Wildlife Act 1974)
• without the concurrence of the Water Administration Ministerial Corporation where the lands concerned are within an irrigation area (Crown Land Act 1989) and the Lands Administration Ministerial Corporation constituted by section 13 of the Crown Lands Act 1989
• without the concurrence of the Minister administering the NP & W Act (1974), in any other case.

1.3 Compensation

The holder of a petroleum prospecting title or a person to whom an easement or a right of way has been granted is liable to compensate every person having any estate or interest in any land injuriously affected by any operations conducted by the holder.

Compensation is not payable by the holder or a person to whom an easement or right of way has been granted under the Act where the operations of the holder or person do not affect, and are not likely to affect, any portion of the surface of the land (Section 107).

If within 30 days of a notice being served (by either party) requiring an agreement as to the amount of compensation payable, the parties are unable to agree on the amount of compensation to be paid, then, either party may apply to the warden for assessment of compensation. The warden’s decision is binding on both parties (Section 108).

Compensation assessed under the Act by the warden, will assess the loss caused, or likely to be caused, by (Section 109):

(a) damage to the surface of land, to crops, trees, grasses, or other vegetation (including fruit and vegetables) or to buildings and improvements, being damaged, which has been caused by or which may arise from prospecting operations;

(b) deprivation of the possession or of the use of the surface of land or any part of the surface; or

c) severance of land from other land of the landholder; or

(d) surface rights of way and easements; or

(e) destruction or loss of, or injury to, disturbance of or interference with stock; or

(f) damage consequential on any matter referred to in paragraph (a) - (e).

1.4 Protection of Houses, Gardens and Improvements

The holder of a petroleum title must not carry out any prospecting or mining operations or erect any works on the surface of any land:

• within 200 metres of a dwelling house that is the principal place of residence of the person occupying it,
• within 50 metres of a garden, vineyard or orchard, and
• over any improvements (being a substantial building, dam, reservoir, contour bank, graded bank, levee, water disposal area, soil conservation work or other valuable work or structure), other than those constructed for the purpose of mining or prospecting operations,

except with the written consent of the owner of the dwelling-house, garden, vineyard orchard or improvement (and in the case of the dwelling house, the written consent of its occupant). Any dispute may be referred to the Minister who may then refer it to the Warden for inquiry and decided by the Minister on the basis of the Wardens report (Section 72).

1.5 Inspection and Control

The Director General and any authorised officer is to be allowed access to land subject to a petroleum title, or an easement or right of way under the Act, for the purpose of examining and inspecting the land to ascertain whether the requirements of the title and the Act are being observed (Section 98).

An officer of the Department authorised by the Director General, or a registered surveyor so authorised, may enter land for the purpose of:

• carrying out any survey,
• defining any road,
• carrying out a geological or geophysical survey
• any other purpose authorised by this Act or Regulation
• collection and removal of any sample of petroleum, water or strata

Before any person enters any land pursuant to this part of the Act, the person must if practicable, give reasonable notice to the landholder of the person’s intention to do so, and if required produce evidence that the person is authorised by the Director-General.

Part 2: Production Leases

2.1 Compensation

The holder of a petroleum production lease is liable to compensate landholders in the same manner as prospecting titles (see 1.4 above)

2.2 Protection of Houses, Gardens and Improvements

The holder of a petroleum production lease is subject to the same restrictions concerning proximity to houses, gardens, vineyards or orchards and improvements for operations as apply to all petroleum titles (see 1.4 above).

2.3 Protection of Cultivated Lands

The holder of a petroleum production lease must not carry out any mining operations or erect any works on the surface of any land, which is under cultivation except with the consent of the landholder (Section 71).

The Minister may, if warranted, define an area of the surface of any parcel of cultivated land on which mining operations may be carried out or works may be erected. However, before any such operations commence or works are erected, the warden is to assess the amount of compensation for any loss or damage to any crop on the land concerned.

Cultivation for the growth and spread of pasture grasses is not taken to be cultivation within the meaning of Section 71 unless, in the Minister’s opinion, the circumstances so warrant. In the case of dispute as to whether land is or is not under cultivation, the Ministers decision is final.

2.4 Notification of Application for a Petroleum Production Lease

An applicant for a petroleum production lease must before, or within 21 days after, lodging the application, cause to be published in appropriate newspapers, a notice stating that an application has or will be lodged, and containing particulars sufficient to lead to the ready identification of the area under application (Section 43).

2.5 Requirement to obtain Development Consent

The Minister for Mineral Resources must not grant a title until an appropriate development approval (as required under the Environmental Planning & Assessment Act 1979) is in force in respect of the land.