Document ID: chunk:federal_register_of_legislation:C2008C00563:schedule:1:p1
Version: federal_register_of_legislation:C2008C00563
Segment Type: schedule
Provision Reference: sch 1 (pt 1/5)
Character Range: 9064–11785

Schedule 1—Relevant resource rent royalty agreement

Subsection 3(1)
(definition of
relevant resource
rent royalty agreement)

1. A resource rent royalty agreement between a State and a person or persons (in this Schedule referred to as the producer) shall provide—

 (a) that a royalty is payable by the producer to the State in respect of the market petroleum produced from a production unit specified in the agreement on and after 1 July in a year after 1984 specified in the agreement (in this clause referred to as the "relevant petroleum");

 (b) that the royalty in respect of the relevant petroleum disposed of in a financial year is—
 (i) except where sub‑paragraph (ii) applies—40% of the accumulated net receipts from the relevant petroleum disposed of in that year; or
 (ii) where the accumulated net receipts from the relevant petroleum disposed of in that year is nil or less—nil;

 (c) that revenue from the royalty shall be shared between the Commonwealth and the State in accordance with a relevant revenue‑sharing agreement between the Commonwealth and the State;

 (d) that no other royalty or charges imposed by the State shall be payable to the State in respect of petroleum produced, during the period to which the agreement applies, from the production source in that production unit;

 (e) for provisional royalty payments during each financial year to which the agreement applies, other than a financial year that ended before the agreement was entered into;

 (f) that—
 (i) as soon as practicable after the end of each financial year to which the  agreement applies, the producer shall give the State Minister sufficient information to enable the State Minister to ascertain the amount of the royalty payable in respect of the relevant petroleum disposed of during that financial year;
 (ii) as soon as practicable after ascertaining the amount of the royalty referred to in sub‑paragraph (i), the State Minister shall give the producer notice in writing of that amount;
 (iii) where the amount specified in the notice referred to in sub‑paragraph (ii) in respect of a financial year exceeds the sum of the amounts paid to the State by the producer under the provision of the agreement required by paragraph (e) in respect of that year—the producer shall pay to the State the difference between the amount and the sum; and
 (iv) where the amount specified in the notice referred to in sub‑paragraph (ii) in respect of a financial year is less than the sum of the amounts paid to the State by the producer under the provision of the agreement required by paragraph (e) in respect of that year—the State shall pay the producer the difference between the amount and the sum or shall otherwise give