Australian Tax Treaties

Timor-Leste (Timor Sea Maritime Boundaries Treaty)  

TREATY BETWEEN AUSTRALIA AND THE DEMOCRATIC REPUBLIC OF TIMOR-LESTE ESTABLISHING THEIR MARITIME BOUNDARIES IN THE TIMOR SEA  

Annex B Greater Sunrise Special Regime  

ARTICLE 7   Governance Board  

1    
The Governance Board shall be comprised of one representative appointed by Australia and two representatives appointed by Timor-Leste. The representatives on the Governance Board shall not have any direct financial or other commercial interest in the operation of the Greater Sunrise Special Regime that would create any reasonable perception of, or actual, conflict of interest, and they shall disclose details of any material personal interest in connection with their position on the Governance Board.

2    
The Governance Board shall have the following powers and functions:

(a)    providing strategic oversight over the Greater Sunrise Special Regime;

(b)    establishing and overseeing an assurance and audit framework for revenue verification and offshore petroleum regulation and administration. This shall include:

(i) issuing an annual ' Statement of Expectation ' to frame the operation and management of the Greater Sunrise Special Regime to guide the work of the Designated Authority;

(ii) reporting requirements of the Designated Authority in accordance with Article 6(3)(b) of this Annex; and

(iii) engaging an independent qualified firm to conduct an annual audit in accordance with international auditing standards so as to provide a high level of assurance over the completeness and accuracy of revenues payable from Petroleum Activities in the Special Regime Area including monthly reporting, incorporating an explanation for variances between forecast and actual revenue;

(c)    making decisions on Strategic Issues referred to it under Article 6(4) of this Annex, in accordance with paragraphs 5 and 6 of this Article;

(d)    approving amendments to the Interim Petroleum Mining Code and any regulations thereunder;

(e)    approving the final Petroleum Mining Code and any regulations thereunder, and any amendments thereto;

(f)    other than as necessary for Strategic Issues, meet three times a year with the Designated Authority and receive reports under Article 6(3)(b) of this Annex; and

(g)    conferring any additional powers and functions on the Designated Authority.

3    
Subject to paragraph 4 of this Article, the following is an exhaustive list of Strategic Issues:

(a)    assessment and approval of a Development Plan pursuant to Article 9(2) of this Annex and any material change to a Development Plan as defined in that Development Plan, pursuant to Article 9(4) of this Annex;

(b)    approval of the decision by the Designated Authority to enter into or terminate the Greater Sunrise Production Sharing Contract, or propose any material changes to that Contract as defined in that Contract;

(c)    approval of, and any material change to, a decommissioning plan, in accordance with Article 21 of this Annex; and

(d)    approval of the construction and operation of a Pipeline.

4    
The Governance Board may add additional Strategic Issues to those listed in paragraph 3 of this Article.

5    
In making a decision on a Strategic Issue, the Governance Board shall give due consideration to all recommendations and relevant information provided by the Designated Authority and relevant information provided by the Greater Sunrise Contractor.

6    
All decisions of the Governance Board shall be made by Consensus, within 30 days or such other period as may be agreed with both the Designated Authority and the Greater Sunrise Contractor, and be final and binding on the Designated Authority and the Greater Sunrise Contractor. For the purposes of this Treaty " Consensus " means the absence of formal objection to a proposed decision.

7    
If the Governance Board has exhausted every effort to reach Consensus on a Strategic Issue, either the Designated Authority or the Greater Sunrise Contractor may refer that issue to the Dispute Resolution Committee for resolution. Nothing in this paragraph limits the Governance Board ' s own right to refer any Strategic Issue to the Dispute Resolution Committee.