Bills

Natural Gas Authority (Notice of Works) Amendment Bill

Introduction and First Reading

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (15:40): Obtained leave and introduced a bill for an act to amend the Natural Gas Act 1967. Read a first time.

Second Reading

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (15:40): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Bill I am introducing today will increase the safety of natural gas pipelines and the security of the natural gas supply in South Australia, by establishing a process for the approval of excavation and similar work near natural gas pipelines.

The purpose of the Bill is to amend the Natural Gas Authority Act 1967 to require landowners and other parties such as road builders, to give the pipeline owner notice of, and gain consent for, excavation or similar work near natural gas pipelines, to set down grounds that must be satisfied if consent is to be refused and to establish a process for the resolution of disputes if consent is not granted.

The Natural Gas Authority Act 1967 applies to the Moomba to Adelaide Pipeline and the Katnook Pipeline in the State's South East, which were purchased by Epic Energy from the Pipelines Authority of South Australia in 1995. Before then, the land on which the pipelines were situated had been subject to registered easements which included a requirement for landowners to give notice of, and gain the pipeline owner's consent for work near the pipeline. This was to avoid damaging the pipeline, which could lead to catastrophic explosions, interruptions to the supply of natural gas and other adverse consequences.

The Natural Gas Authority Act 1967 was amended in 1995 when the pipelines were sold. The amendments extinguished the previous registered easements and replaced them with statutory easements which, however, did not include a requirement for landowners to give notice to, or gain the consent of, the pipeline owner for work near the pipeline.

The Bill amends the statutory easement provisions in the Act by requiring landowners and other parties such as road builders to give the pipeline owner at least 21 days' notice of proposed work in the vicinity of the pipelines. The pipeline owner must, within 14 days of receiving the notice, by notice in writing, consent or object to the proposed works. This period may be extended by mutual agreement if, for example, the parties negotiate on conditions for consent.

The pipeline owner may not object to the proposed work unless the owner is of the opinion that the work would interfere with the safety or operation of the pipeline or associated equipment, and must set out the reasons for the objection in the notice to the landowner or other party.

The Bill establishes a process for the resolution of disputes if the pipeline owner objects to the proposed work. In that case the pipeline owner must notify the Minister, who may attempt to mediate between the parties in order to arrive at mutually satisfactory terms under which the proposed work may be carried out. The Minister must give the parties notice of his or her decision to mediate within 21 days of receipt of the notice of objection. If such notice is not given, it will be taken that the Minister has decided not to mediate. The Minister may delegate the power to mediate.

If mediation does not occur or does not resolve the dispute, either party may apply to the Warden's Court for a resolution of the dispute. The court may confirm the notice of objection, or revoke the notice of objection and determine terms under which work may be carried out, or remit the matter to the parties for further consideration or make consequential or ancillary orders or impose conditions that the court considers necessary.

The previous registered easements included a provision that the pipeline (which included associated equipment) on the easement remains the property of the pipeline owner. Under the Bill associated equipment (the definition of which has been updated to include telecommunications equipment), not only on the easement, but also on 'outlying land' (adjoining land), remains the property of the pipeline owner.

The previous registered easements provided that work related to the construction, maintenance, repair or replacement of a pipeline may be carried out on land immediately adjacent to the easement, as may reasonably be required by the pipeline owner. The Bill clarifies that such work may be carried out on the outlying land.

The Bill also defines the terms necessary for the effective operation of the amendments.

The Department for State Development has consulted with Epic Energy, the owner of the pipelines, and relevant Government Departments and agencies, all of which indicated their support for the proposal.

I commend the Bill to Members.

EXPLANATION OF CLAUSES

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Natural Gas Authority Act 1967

4—Amendment of section 11—Rights conferred by statutory easement

Subclauses (1) and (2) make amendments consequential on the provisions in proposed section 15A. Subclause (3) amends section 11 to clarify that any associated equipment installed on or under the servient land or outlying land for the purposes of the section remains the property of the owner of the pipeline. Subclause (4) amends the definition of associated equipment to include telecommunications equipment.

5—Insertion of section 15A

This clause inserts a new section as follows:

15A—Notice of prescribed works on land subject to statutory easement

The proposed section provides that an owner or occupier of servient land must not carry out or permit the carrying out of prescribed works on or under the servient land without the prior written consent of the owner of the pipeline, with a maximum penalty of $60,000. Owner, occupier and prescribed works are all defined for the purposes of the proposed section.

The proposed section sets out the process by which the owner of the pipeline may consent or object to prescribed works on or under servient land, including:

that the owner or occupier of servient land must notify the owner of the pipeline of the intention to carry out prescribed works and the nature of the works to be carried out;

the manner in which the owner of the pipeline may consent or object to the proposed prescribed works by notice. The owner must not object unless of the opinion that the prescribed works would interfere with the safety or operation of the pipeline or associated equipment;

a requirement that the owner of the pipeline give notice of an objection to the Minister.

The proposed section also sets out a dispute resolution process including:

the circumstances in which the Minister may attempt to mediate between the parties;

the circumstances in which the owner of the pipeline and the owner or occupier of servient land may apply to the Warden's Court for a resolution of a dispute, and the orders that the Court may make on application for resolution of a dispute.

The Minister may delegate to a person a function or power of the Minister under the proposed section.

Debate adjourned on motion of Mr Gardner.