Orphan well levy and fund

Under the Petroleum Act 1984, interest holders must pay a non‑refundable orphan well levy for the long-term monitoring, management and remediation of orphan wells in the NT.

Money collected under the orphan well levy is held in the orphan well fund and can only be used for orphan wells.

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

All petroleum interest holders must pay the levy, whether or not they have orphan wells on their title.

The levy is payable on all title types, including an exploration permit or retention licence, even if the holder is not yet selling petroleum.

Find out more about fees and levies including how to calculate a levy, submit an annual return or make a payment.

Fund

Under the Act, the levy can only be used to fund the following activities for orphan wells:

• monitoring and assessing well integrity
• obtaining expert reports relating to well integrity
• performing, or engaging appropriately qualified persons to perform maintenance work
• preparing remediation plans to rectify the loss of well integrity
• carrying out work to rectify the loss of well integrity
• undertaking well and infrastructure decommissioning
• undertaking other appropriate work and activities in connection with the orphan wells.

Expenditure

Each interest holder must pay the levy from the beginning of the 2023/2024 financial year.

More information will be available on 30 September 2023, to provide the first annual orphan well fund balance.

Information will be updated periodically to show expenditure from the fund, as informed by the NT Government’s orphan well management program.

Reporting

Under the Petroleum Act 1984, the government must report on the amount of orphan well levy collected each financial year.

2023-24

• Amount of orphan well levy collected: $353,012
• Opening balance of the orphan well fund: $0
• Closing balance of the orphan well fund: $353,012.