Document ID: chunk:federal_register_of_legislation:F2023N00066:clause:2_8:p5
Version: federal_register_of_legislation:F2023N00066
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 5/8)
Character Range: 18639–21587

an AV permission. For the avoidance of doubt:
          1. any person not issued an AV permission in accordance with the Guidelines may not trade an AV permission; and
          2. a volume in, or associated with, a UV permission may not be traded.
     (12)    The terms and conditions of the trade of a volume in an AV permission will be a commercial matter for the buyer and seller.
     (13)    The buyer and seller of an AV permission volume should notify the Department following the completion of the trade.
          1. Both buyer and seller will need to surrender their AV permissions in exchange for new AV permissions.
             Example: The Minister or an authorised officer may accept the surrender of a permission in exchange for granting another permission under section 13GC(3) of the Regulations.
         b.       The volumes in the buyer and seller's new AV permissions will reflect the traded volume.
         c.       The buyer and seller's new AV permissions will be for the same domestic shortfall quarter as the surrendered permissions.

              AV permission for an LNG tollee exporter
     (14)    If an LNG tollee exporter intends to export LNG from an LNG project issued an AV permission, the LNG tollee exporter will be granted an AV permission.
     (15)    The LNG project's allowable volume, calculated in accordance with subsection 9(9) of these Guidelines, will be divided between the LNG project and the LNG tollee exporter in a manner that reflects their respective LNG production during the domestic shortfall quarter.
          1. The allowable volume in the LNG tollee exporter's AV permission will be proportionate to the forecast LNG production entitlement of the LNG tollee exporter in relation to the LNG project's forecast LNG production.

Permission conditions
     (16)    The Minister may grant a permission to an LNG project subject to conditions the Minister deems necessary and appropriate to achieve the ADGSM's objective.
            Note: The ADGSM's objective is set out in subsection 6(1) of these Guidelines.
     (17)     If an LNG project does not comply with a permission condition, the Minister may in writing
          1. revoke the permission; or
          2. vary the permission (including in relation to type, volume, and other conditions).

10 Protecting long-term contract gas
    (1)    In this section, LNG project includes LNG tollee exporter.
    (2)    If the allowable volume in an AV permission is less than the LNG project's long-term contract gas, the LNG project may request the Minister increase the allowable volume in the AV permission.
    (3)    Long-term contract gas is the minimum volume the LNG project must supply under a protected long-term contract. In determining the minimum volume the LNG project must supply, the LNG project's lack of discretion to supply a volume in the relevant period is the relevant test.
            Example: An LNG project