Petroleum operations fees and levies

The Northern Territory (NT) Government has implemented a full cost recovery system for the regulation of the onshore petroleum industry.

Cost recovery ensures that regulatory agencies are resourced enough to perform statutory functions.

For more information, read:

Fees and levies for onshore petroleum development in the NT PDF (322.4 KB)
Fees and levies for onshore petroleum development in the NT DOCX (56.8 KB)

Read below to find out about new and revised fees and levies.

Revision of existing fees

Fees have been revised to reflect costs associated with providing services.

This includes administration of petroleum titles, which covers the grant, renewal and variation of:

• exploration permits
• retention licences
• production licences.

Find out more about petroleum titles fees.

Fees for resource management, activity and infrastructure plans

Application fees apply for assessment of:

• well operations management plans (WOMPS)
• petroleum surface infrastructure plans
• field management plans.

These are administered by the Department of Industry, Tourism and Trade (DITT).

How fees are calculated

Fees are complexity based. This ensures the cost of application accurately reflects the resources required to assess and approve the plans.

Fees also apply to plan revisions.

To find out about the fees and calculation processes you need when submitting for assessment, read schedule 1A of the Petroleum Regulations 2020.

Application fees will be charged at time of lodgement and assessment will not start until the fee is paid.

Fees for environment management plans (EMPs)

Application fees apply for assessment of EMPs.

These are administered by the Department of Environment, Parks and Water Security (DEPWS).

How fees are calculated

Fees are complexity based. This ensures the cost of the application accurately reflects the resources required to assess and approve the EMP.

Fees also apply for EMP revisions.

To find out about the fees and calculation processes you need when submitting an environment management plan for assessment, read schedule 1B of the Petroleum Regulations 2020.

Application fees will be charged at time of lodgement and assessment will not start until the fee is paid.

Monitoring and compliance levy

This levy has been introduced to recover the costs of monitoring and compliance by DITT and DEPWS.

It is payable annually for each approved EMP.

How the monitoring and compliance levy is calculated

The levy must be calculated based on the number and type of activities approved in an active EMP that will be carried out in the relevant financial year.

EMPs are used to calculate the levy because they address all regulated activities, including those associated with wells and other petroleum infrastructure.

An EMP that includes different types of regulated activities over a larger number of titles will generally result in a higher levy.

The levy is capped so that petroleum interest holders will only pay for the cost of monitoring and compliance for a regulated activity for a maximum of 2 titles.

There's also a cap on levy ratings that will be applied to different activity categories. For example, the same levy amount is applied for the operation of 4 or more wells.

This accounts for efficiencies that apply to the regulator's costs of monitoring and compliance.

Strategic Regional Environmental and Baseline Assessment (SREBA) - uplift factor

An uplift factor has been established to ensure that money expended on a SREBA is funded by industry.

The SREBA for the Beetaloo Sub-basin provides information necessary for sound decisions to be made about the development of any onshore shale gas industry in the region. It also provides baseline data as a reference point for ongoing monitoring.

Regulated activities in the Beetaloo Sub-basin designated area will incur an uplift factor to recover the cost that have already been incurred by the NT Government to deliver this SREBA.

The uplift factor will initially be set at 30% of amount of monitoring and compliance levy payable.

The uplift factor and period for recovery of the SREBA costs will be reviewed after 3 years.

The minister determines the designated area that applies to the SREBA uplift factor. All petroleum interests within this boundary, in whole or part must pay the uplift factor.

Get a map of the SREBA uplift designated area PDF (110.1 KB).

Find out more about SREBA, go to the DEPWS website.

When to pay

From 1 July 2023, you must pay a monitoring and compliance levy yearly.

The levy must be paid by 31 July of the financial year that the levy relates.

Petroleum interest holders who have approved an EMP must submit an annual returns form to inform levy payment before the end of each financial year.

If a new activity is approved in an EMP that same year, an additional levy must be paid within 30 days of the approval of that activity and will be calculated on a pro-rata basis.

To find out about the monitoring and compliance levy, read part VD of the Petroleum Act 1984.

Orphan well levy

The orphan well levy was established to ensure that the long-term monitoring, management and remediation of orphan wells in the Northern Territory is funded by industry.

Read more about the orphan well levy.

The orphan well levy must be paid by all petroleum interest holders, including those holding exploration permits or retention licences, and irrespective of whether or not there are orphan wells on the title or titles.

How the orphan well levy is calculated

The orphan well levy is calculated as an amount payable per graticular block held by an interest holder at the start of the financial year.

An invoice will then be generated for payment of the orphan well levy.

When to pay

From 1 July 2023, you must pay an orphan well levy yearly.

The levy must be paid by 31 July of the financial year that the levy relates.

An invoice will be generated for payment of the orphan well levy.

To find out more about the orphan well levy, read part VE of the Petroleum Act 1984.

How to pay fees and levies

You can pay using one of the following methods:

• credit card (Visa or Mastercard)
• direct debit - call DITT on 08 8999 5263 for account details
• cheque or money order made payable to the Receiver of Territory Monies.

An invoice will be raised on request.