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Attachment C
		08-0260-sec_attach c
		8-5-08
NATIONAL GAS (NORTHERN TERRITORY) BILL 2008
SERIAL NO. 149

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

MINISTER FOR MINES AND ENERGY

EXPLANATORY STATEMENT

GENERAL OUTLINE

The National Gas (Northern Territory) Bill 2008 applies the National Gas Law (NGL) as a law of the Northern Territory. The NGL was developed on behalf of the Ministerial Council on Energy (MCE) as part of the national Energy Reform Agenda. It was passed in April 2008 by the South Australian Parliament (as lead legislator), as a schedule to the National Gas (South Australia) Bill 2008.  The NGL establishes a revised third party access regime to cover certain natural gas pipeline services.

The NGL replaces the previous National Gas Code (NGC) that is a schedule to earlier legislation passed by the South Australian Parliament in 1998.  For the Northern Territory the NGC was called up and applied as a law in the Northern Territory by means of the passage of the Gas Pipelines Access (Northern Territory) Act 1998.

All jurisdictions will be taking similar action to that proposed by the Northern Territory of repealing their previous gas pipelines access legislation relating to third party access to designated natural gas pipelines and in its place introducing the new NGL.  All jurisdictions will pass enabling legislation similar to the Northern Territory to apply the schedule to the South Australia legislation containing the NGL in each participating jurisdiction (except of Western Australia which will pass legislation through its own Parliament that is consistent with the NGL).

The NGL will deliver on key energy reforms to improve the governance arrangement for the regulation of natural gas pipeline services, for the benefit of residents of the Northern Territory and across Australia.

The Northern Territory is a participant in the National Energy Reform Agenda, through its membership of the MCE and a participant to the third party access regime for natural gas pipelines.  However, at present the impact of the existing regime and its newly developed replacement is minimal as, at present, it only applies to the Amadeus to Darwin transmission pipeline.  However, as more gas pipelines are constructed in the Northern Territory and competition in our local market grows the, application of this legislation will become increasingly relevant.

The MCE has determined that the NGL will commence on 1 July 2008 Australia-wide. 

The NGL does not form an integral part of this Bill but a note at the conclusion of clause 7 of the Bill indicates that the NGL (which extends to 350 page document) is a schedule to the legislation passed by the South Australian Parliament and can be accessed via a web site (the address indicated).

NOTES ON CLAUSES

Clause 1.	Short Title

Sets the name of the Bill once it is passed and becomes an Act – the National Gas (Northern Territory) Act 2008.

Clause 2.	Commencement

This clause states that the Act will commence on a date fixed by the Administrator by Gazettal notice.

Clause 3.	Interpretation

This clause defines certain words and expressions used in the proposed Act.

The definitions are self explanatory.

Clause 4.	Act binds the Crown

Once passed the legislation will apply to the Crown.

Clause 5.	Application to coastal waters

Once passed the legislation will apply in the coastal waters of the Territory.

Clause 6.	Extra-territorial operation

Once passed, the legislation will extend extra-territorial operation to the extent of NT power.

Part 2.	National Gas (NT) Law and National Gas (NT) Regulations

Clause 7.	Application in Territory of National Gas Law

This clause applies, as a law of the Territory, the National Gas Law (NGL), as set out in the Schedule to the National Gas (South Australia) Act 2008 of South Australia.  The NGL will apply as a law of the Northern Territory by means of the passage of the National Gas (Northern Territory) Act 2008.

A note included within this clause indicates the means of accessing the text of the NGL, as passed as a schedule to the South Australian legislation.

Clause 8.	Application in Territory of regulations under the NGL

This clause applies regulations for the purposes of the National Gas (Northern Territory) Act, the regulations in force under Part 3 of the National Gas (South Australia) Act 2008 of South Australia.  The regulations once applied in the Northern Territory are to be referred to as the National Gas (Northern Territory) Regulations.

Clause 9.		Interpretation of expressions in National Gas (NT) Law and National Gas (NT) Regulation

9(1) This clause recognizes certain expressions particular to the Northern Territory whose meaning necessarily varies according to the jurisdiction within which they are being applied.

The definitions are self explanatory.

9(2) states that reference to any other South Australian legislation does not apply to NGL or its regulation in its application as a law of the Northern Territory.

Part 3.			Cross Vesting of Powers

Clause 10.	Conferral of powers on Commonwealth Minister and Commonwealth bodies to act in Territory

Confers powers on the Commonwealth Minister and Commonwealth bodies that may take action in relation to Northern Territory in performance and exercise of any functions conferred on it by national gas legislation.

10(2) Commonwealth bodies mentioned (as referred to in the NGL)

(a)	AER – Australian Energy Regulator
(b)	NCC – National Competition Council
(c)	The Tribunal – Australian Competition Tribunal

These bodies only identified by initials are fully defined in NGL.

Clause 11.		Conferral of powers on ministers of participating States to act in Territory

Provides the Northern Territory Minister with authority to act in relation to his or her own jurisdiction or in another participating jurisdiction where the NGL permits.

Clause 12.		Conferral of functions or power on State Minister

A participating jurisdiction may grant power under its Gas Law to allow a minister in another jurisdiction to exercise powers under its Gas Act.  The Northern Territory Minister may in that context exercise those powers.

Part 4 			Miscellaneous matters

Clause 13.		Exemption from taxes

Provides for an exemption from Northern Territory duties or taxes in relation to certain transfers of assets.

The term exempt matter is defined and powers made available to NT Treasurer to declare in the NT Gazette an exempt matter.

Clause 14.		Action in relation to cross boundary pipelines

This lengthy clause deals with procedural matters where action is taken under one NGL jurisdiction by a Minister or a Supreme Court about a cross boundary pipeline that impacts on one or more other participating jurisdictions. 

No grounds of appeal are permitted, except against the Minister in the jurisdiction where the pipeline is most closely connected.

The term “cross boundary pipeline” is defined.

Clause 15.		Conferral of functions and power on Commonwealth bodies

Limits exercise of powers to extent of NT Parliament.

Clause 16.		Regulations

The clause provides regulation making powers under this Act.

Clause 17.		Amendments of Acts

A list of minor amendments to other NT legislation is set out in the schedule.  Changes are principally to accommodate the change in name of the relevant legislation.

Clause 18.		Repeal of Gas Pipelines Access (Northern Territory) Act 1998

Repeals the existing Act that applies the National Gas Code which constitutes the previous Gas Pipeline third party access laws.

Clause 19.		Amendment of this Act when Offshore Petroleum Act 2006 (Cth) commences

This clause provides for the substitution of definitions in this Act when the Commonwealth commences its new Offshore Petroleum Act 2006.