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Fee restructure for petroleum and gas industry

Brisbane 10 October 2013. Queensland’s rapidly-growing petroleum and gas sector will benefit from less red tape and a simplified fee system, saving businesses significant time and money.

Natural Resources and Mines Minister Andrew Cripps today announced the Queensland Government would adjust the Petroleum and Gas Safety and Health Fee paid by operators to better reflect the range and level of compliance checks required for various industry activities.

“The petroleum and gas industry operates in a potentially high-risk environment with oversight provided by the Department of Natural Resources and Mines Petroleum and Gas inspectorate,” Mr Cripps said.

“Government Petroleum and Gas Inspectors perform audits, inspections and investigations of the activities of the petroleum and gas industry.

“They monitor gas exploration and production, pipelines, automotive LPG, gas users and licensing for the installation and servicing of domestic, commercial and industrial gas devices.

“The restructure of the current fee system will streamline the charges for the supervision and intervention by inspectors in the areas of exploration, production and distribution and will deliver real savings to companies as the Newman Government works to reduce red tape and compliance costs.”

Mr Cripps said the Queensland Government had consulted widely with the industry about amendments to the Petroleum and Gas (Production and Safety) Regulation 2004.

Key changes include:

  • Replacement of the requirement for industry to report quarterly with a new annual reporting requirement
  • A capping mechanism for upstream operators to ensure revenue collected from some fee categories is not in excess of the calculated costs to conduct compliance activities
  • Amending the Category 10 fee to three-tiers and applied based on the size of the LPG delivery network. Small and medium sized operators will have a flat fee relative to their size and larger operators will remain at a fee per unit basis with a maximum charge retained
  • Abolition of the Category 9 fee category for the LPG delivery network
  • Removal of the fee for biogas users and exemptions for some biogas producers

“These changes will make it easier for both business and the inspectorate to administer the fee system,” he said.

“It will also deliver a simplified and streamlined fee system for Queensland’s fast-growing petroleum and gas industries.”

More information is available at: www.mines.industry.qld.gov.au/safety-and-health/petroleum-gas-safety-health-fee.htm

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