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 6   Designated Authority  

1    
The Designated Authority shall be responsible for carrying out the day-to-day regulation and management of Petroleum Activities in the Special Regime Area. In doing so, the Designated Authority acts on behalf of Australia and Timor-Leste and reports to the Governance Board.

2    
The Designated Authority shall:

(a)    be the Timor-Leste statutory authority as determined by the member of the Government of Timor-Leste responsible for the petroleum sector to act as the Designated Authority;

(b)    regulate the Special Regime Area according to Good Oilfield Practice;

(c)    be financed from fees collected under the applicable Petroleum Mining Code and the Greater Sunrise Production Sharing Contract; and

(d)    subject to Articles 7 and 8 of this Annex, exercise its powers and functions, as set out in this Article, without interference by any other entity and in accordance with this Treaty.

3    
The Designated Authority shall have the following powers and functions:

(a)    day-to-day regulation and management of Petroleum Activities in the Special Regime Area in accordance with this Treaty and its functions as outlined in the applicable Petroleum Mining Code and any regulations thereunder, except with respect to Strategic Issues;

(b)    three times a year, meeting with and reporting to the Governance Board on:

(i) the exercise of its powers and functions, in accordance with the applicable regulatory framework;

(ii) progress on the preparation of the Development Plan and, once approved, progress against the Development Plan and schedule;

(iii) production and revenue data from the Greater Sunrise Fields;

(iv) updates on issues referred to the Dispute Resolution Committee, if any;

(v) the Greater Sunrise Contractor ' s compliance with regulatory standards, including its local content obligations as set out in this Treaty, the Development Plan and the Greater Sunrise Production Sharing Contract; and

(vi) safety, environmental and well-integrity management;

(c)    pursuant to Article 9 of this Annex, powers and functions with respect to the Development Plan;

(d)    entering into the Greater Sunrise Production Sharing Contract, subject to the approval of the Governance Board, in accordance with Articles 4 and 7(3)(b) of this Annex;

(e)    supervising, managing and agreeing on non-material amendments to the Greater Sunrise Production Sharing Contract;

(f)    agreeing material amendments to the Greater Sunrise Production Sharing Contract as defined in that Contract or terminating the Greater Sunrise Production Sharing Contract, subject to approval of the Governance Board in accordance with Article 7(3)(b) of this Annex;

(g)    approving assignments, production plans, lifting agreements and other technical documents and agreements relating to the Greater Sunrise Production Sharing Contract;

(h)    reporting annual income and expenditure, as these relate to the Special Regime Area, to the Governance Board;

(i)    accessing, consolidating and disseminating, on an annual basis, all information pertaining to the Greater Sunrise Fields ' reserves based on information provided by the Greater Sunrise Contractor or as otherwise audited by the Designated Authority;

(j)    collecting revenues received from Petroleum Activities and Special Regime Installations prior to the Valuation Point on behalf of both Parties and distribution thereof;

(k)    auditing and inspecting the Greater Sunrise Contractor ' s books and accounts;

(l)    inspecting Special Regime Installations in the Special Regime Area;

(m)    ensuring compliance by the Greater Sunrise Contractor with its local content obligations in accordance with this Treaty, the Development Plan and the Greater Sunrise Production Sharing Contract, including by giving directions and instructions as necessary;

(n)    issuing regulations to protect the marine environment in the Special Regime Area and monitoring compliance with them, ensuring there is a contingency plan for combatting pollution from Petroleum Activities in the Special Regime Area, and investigating safety and environmental incidents in the Special Regime Area;

(o)    issuing regulations and developing and adopting standards and procedures on occupational health and safety for persons employed on Special Regime Installations that are no less effective than those standards and procedures that would apply to persons employed on similar structures in Australia and Timor-Leste;

(p)    requesting assistance from the appropriate authorities for search and rescue operations, security threats, air traffic services, anti-pollution prevention measures, and safety and environmental incidents, or the activation of emergency procedures, in accordance with international law;

(q)    establishing safety zones to ensure the safety of navigation and Special Regime Installations, in accordance with the Convention;

(r)    controlling movements into, within and out of the Special Regime Area of vessels, aircraft, structures, and other equipment employed in exploration for and exploitation of the Greater Sunrise Fields, consistent with Articles 17 , 18 and 19 of this Annex;

(s)    pursuant to Article 21 of this Annex, powers and functions with respect to the decommissioning plan, including entry into and oversight of financial arrangements for the decommissioning plan;

(t)    oversight of the abandonment and decommissioning phase of the Greater Sunrise Fields;

(u)    authorising the construction, operation and use of Special Regime Installations, subject to the provisions in this Annex; and

(v)    any other powers or functions in respect of the Special Regime Area, including regulatory powers, conferred upon it by the Governance Board.

4    
The Designated Authority shall refer all Strategic Issues as defined in Article 7(3) of this Annex to the Governance Board and, in the event of a dispute between the Designated Authority and the Greater Sunrise Contractor as to whether an issue is a Strategic Issue, either the Designated Authority or the Greater Sunrise Contractor may refer that issue to the Governance Board.

5    
Within 14 days of a Strategic Issue being referred to the Governance Board, the Designated Authority and the Greater Sunrise Contractor may provide any relevant information concerning the issue and the Designated Authority may provide any recommendations on the issue.