What are the Petroleum and Geothermal Energy Safety Levies?

Reason for the levies

In order to maintain safety regulatory services and acquire additional resources as required under RADARS, the safety reform strategy for Resources Safety, it was necessary for funding to be obtained through cost recovery from the relevant industry sectors.

On 1 January 2012, cost recovery commenced for safety regulation of the petroleum industry and geothermal energy operations. Following industry requests for greater alignment between State and Commonwealth legislation, the approach selected was based on cost recovery levies used for offshore petroleum by the National Offshore Petroleum Safety Authority (NOPSA) – now the National Offshore Petroleum Safety and Environment Management Authority (NOPSEMA).

The Petroleum and Geothermal Energy Safety Levies Act 2011 provides for the Petroleum and Geothermal Energy Safety Levies Regulations 2011 to impose levies for regulatory services rendered in relation to listed occupational safety and health laws under the:

  • Petroleum and Geothermal Energy Resources Act 1967
  • Petroleum Pipelines Act 1969
  • Petroleum (Submerged Lands) Act 1982
  • Petroleum (Submerged Lands) (Pipelines) Regulations 2007
  • Petroleum (Submerged Lands) (Diving Safety) Regulations 2007

The levies are payable to the Department of Mines and Petroleum.

The Petroleum and Geothermal Energy Safety Levies Act 2011 and related legislation can be viewed, downloaded or purchased in hard copy from the State Law Publisher.

Find out more about reform and development at Resources Safety at What is RADARS?

What are the levies?

There are five safety levies associated with petroleum and geothermal safety regulation.

Levy Application Legislation
Safety management system levy Safety management system in force for a petroleum operation or geothermal energy operation Petroleum and Geothermal Energy Resources Act 1967
Pipeline safety case levy Safety case in force for a pipeline operation Petroleum Pipelines Act 1969
Facility safety case levy Safety case in force for a facility Petroleum (Submerged Lands) Act 1982
Pipeline management plan levy Pipeline management plan in force for a pipeline Petroleum (Submerged Lands) (Pipelines) Regulations 2007
Diving safety management system (DSMS) levy To an accepted DSMS Petroleum (Submerged Lands) (Diving Safety) Regulations 2007

 

How are the levies calculated?

Information contained in the safety system (as defined in the Petroleum and Geothermal Energy Safety Levies Regulations 2011) for an operation is assessed to determine a classification based on the complexity and risk of that operation. The level of complexity and risk allows estimation of the safety regulatory effort likely to be required by Resources Safety.

The classification system simply provides a scale for charging different levy amounts based on the department's total costs of providing safety regulatory services. The classification equates to a rating number, which is multiplied by a unit cost to determine a quarterly levy amount.

The levies are assessed at the end of each quarter by the Chief Executive Officer and applied to the safety system in force (as defined in the Petroleum and Geothermal Energy Safety Levies Regulations 2011).

The Guide to classification for assessment of levies PDF below provides more information on this process.

Guide to classification for assessment of levies - 779 Kb

This guide provides industry with transparency over the classification process used when assessing levies for petroleum and geothermal energy operations. Industry has been consulted in the preparation of this document.

An information sheet providing responses to frequently asked questions related to the Petroleum and Geothermal Energy Safety Levies is being revised.

What happens to the levy monies collected?

To ensure that levy funds are used only for petroleum and geothermal safety activities, the levy monies are held in a special purpose account. This account must comply with the accounting and reporting requirements of the Financial Management Act 2006, and is subject to audit scrutiny. The department has also developed internal cost controls.

Contact

To ask questions about the petroleum and geothermal safety levies:
Email: pslevyprocessing@dmirs.wa.gov.au