Legislative Council Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia Legislative Council published Bills Petroleum and Geothermal Energy (Energy Resources) Amendment Bill Petroleum and Geothermal Energy (Energy Resources) Amendment Bill Petroleum and Geothermal Energy (Energy Resources) Amendment Bill Introduction and First Reading Introduction and First Reading Received from the House of Assembly and read a first time. Second Reading Second Reading The Hon. C.M. SCRIVEN Legislative Council Minister for Primary Industries and Regional Development Minister for Forest Industries The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (16:17): I move: That this bill be now read a second time. I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them. Leave granted. The Petroleum and Geothermal Energy Act 2000 (the Act), which regulates onshore petroleum and other energy resource exploration and production activities in South Australia, continues to well serve the State and the industry since its promulgation back in September 2000. This legislation continues to be widely recognised as a best practice regulatory framework. Maintaining best practice requires continuous review and improvement. Subsequent to the last review of this legislation back in 2009, the Department for Energy and Mining embarked on another review to further refine this Act through the release of an Issues Paper with proposed amendments earlier this year followed by the release of a draft Bill in June. The majority of changes proposed to amend the Act are administrative in nature and were subject to public consultation on an Issues Paper in February 2021 and on a draft Bill in June 2021 under the previous government; followed by four weeks public consultation on a draft Bill in November 2022 under the current government. These proposed administrative amendments are very much in accord with the Government's commitment to streamlined and effective regulation. The Bill proposes to introduce a rent for the use of the State's natural reservoirs to store regulated substances, however an exemption will apply to carbon dioxide that has been produced or sourced within Australia and is not imported. The exemption will ensure the rental does not disincentivise the storage of Australia's direct carbon dioxide emissions – like that from the Moomba gas processing plant, which will be stored at the Moomba Carbon Capture and Storage facility currently in construction by Santos and joint venture partner Beach. Calculation of the rent for the use of natural reservoirs in the State to store regulated substances is to be prescribed in the Regulations and will be subject to further consultation. The Government is keen to future proof this best practice regulatory framework for the energy resources sector in South Australia; therefore, the Act will now be called the 'Energy Resources Act' to reflect the broader scope of the Act, which covers, in addition to strictly 'petroleum' based resources – geothermal, natural hydrogen, underground coal gasification, carbon dioxide and carbon capture and storage. Changing dynamics in both Australian and global energy markets has called for regulatory frameworks to be more adaptive and responsive to such changes to ensure we can expedite energy supply and security as required. One such change has called for an amendment to the definition of transmission pipeline under the existing Act to allow for imported gas to be transported unhindered via licensed transmission pipelines under the Act to access such markets as required. The need for this has arisen from expressions of interest seeking to import liquefied natural gas into South Australia and other States to address anticipated Eastern Australia gas market opportunities. Improving stakeholder participation and engagement in the regulatory process is always a topic of priority in any such review. To that end, amendments are being introduced that will explicitly require stakeholder engagement by the licensee in preparing their Environmental Impact Reports and Statements of Environmental Objectives. An amendment is also being introduced to mandate a 30-day public consultation period for these environmental assessments as part of the Department for Energy and Mining's approval process. A key principle under this Act when it was first developed was to ensure that any environmental liabilities always remained with the licensee. This principle continues to be delivered through smart policy when it comes to determining the amount of security that the government needs to hold against each licence. As additional back up to this policy in the unlikely event of bankruptcy, it is considered prudent to introduce a Statutory Security to ensure that the Crown has first priority over a Licensee's property in such an event. Furthermore, a new provision is being introduced for a Ministerial approval before a change in controlling interest in the holder of a licence. The purpose of this new provision is to ensure there is regard for the technical and financial resources of a person who proposes to begin control of the holder of a licence, such that they are sufficient to conduct operations under the licence. This provision will be in line with a similar approval regime that was recently inserted into the Commonwealth's Offshore Petroleum and Greenhouse Gas Storage Act 2006. To strengthen the Act's regulatory enforcement provisions, a number of maximum penalties have been reviewed, benchmarked against the reformed Mining Act, and modified accordingly. In keeping with the Government's stance on efficient and effective regulation, the concept of Ministerial determinations as provided for under the recent Mining Act review is also being introduced to allow for greater flexibility and effectiveness in clarifying and guiding regulatory requirements, particularly for reporting provisions. To further enhance the environmental protection provisions under the Act, the definition for 'environment' will be revised to better capture and regulate social and economic impacts in keeping with the principles of sustainable development. Principles, may I add, under which administration of this Act continues to be complied with. The amendments proposed to the Petroleum and Geothermal Energy Regulations 2013 will be drafted post the Bill being passed in Parliament and will be subject to further consultation. We look forward to working cooperatively with all members of Parliament to secure passage for this important Bill. I commend the Bill to the House. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement These clauses are formal. Part 2—Amendment of Petroleum and Geothermal Energy Act 2000 3—Amendment of long title The long title of the Bill is amended to update and include references to production, transmission, storage and management of certain energy resources as a result of other amendments proposed in the measure. 4—Amendment of section 1—Short title This amendment proposes that the short title of the Act be the Energy Resources Act 2000. 5—Substitution of section 3 This clause substitutes the objects section of the Act as follows: 3—Objects The proposed section updates the current objects of the Act to include references to energy resources and other matters as a result of proposed amendments in the measure. 6—Amendment of section 4—Interpretation This clause amends and updates several existing definitions and inserts additional definitions consequential on amendments in the measure. 7—Amendment of section 5—Rights of the Crown The amendments in this clause are consequential on the proposed change to the short title of the Act. 8—Substitution of section 8 This clause substitutes section 8 as follows: 8—Authorised officers The proposed section provides that inspectors appointed under the Work Health and Safety Act 2012 will be taken to have been appointed as authorised officers under the proposed section. These authorised officers are in addition to those authorised officers currently able to be appointed by the Minister. 9—Amendment of section 9—Identity cards This clause allows for inspectors under the Work Health and Safety Act 2012 who are taken to have been appointed under proposed section 8 to use, for the purposes of this Act, the identity cards issued to them under that Act. 10—Insertion of Part 2 Division 3 This section inserts a new Part 2 Division 3 as follows: Division 3—Power to conduct geological investigations etc 9A—Power to conduct geological investigations etc The proposed section allows for a process by which a person authorised by the Minister by notice in the Gazette may enter and remain on land for the purposes of undertaking an investigation or survey (including taking and removing specimens and samples). The proposed section further sets out the parameters of the authorisation, including requirements for notification of entry on land, and that results of an investigation or survey must be provided to the Minister and may be published by the Minister. 11—Amendment of section 10—Regulated activities The proposed amendments update the definition of regulated activities for the purposes of the Act to reflect other amendments in the measure, and expands the defined activity of construction of a transmission pipeline to include constructing, operating, maintaining, modifying or decommissioning a transmission pipeline. 12—Amendment of section 13—Licence classes This clause makes amendments consequential on the proposed addition of a new class of licence: the regulated substance licence. 13—Amendment of section 16—Competitive tender regions This clause makes amendments consequential on the inclusion of the term energy resources in the Act. 14—Amendment of section 21—Exploration licences The amendments in this clause provide for a proposed new category of licence—a regulated substance exploration licence and make other amendments consequential on the use of the term energy resources in the Act. 15—Amendment of section 22—Call for tenders This clause substitutes subsection (1) to provide that if an exploration licence is to be granted for an area within a competitive tender region, the Minister must call for tenders for an exploration licence of the relevant category (taking into account the regulated resources with respect to which the region has been declared). 16—Amendment of section 24—Areas for which licence may be granted The amendment in this clause is consequential on the proposed regulated substance exploration licence. 17—Amendment of section 26—Term and renewal of exploration licence This amendment allows the Minister to determine that the term of an exploration licence may be less than 5 years. 18—Amendment of section 27—Production of regulated resource under exploration licence The amendments in this clause are consequential on the proposed regulated substance exploration licence and on updating references to regulated substances in the Act. 19—Amendment of section 28—Retention licences The amendments in this clause are consequential on the proposed regulated substance exploration licence and on updating references to regulated substances in the Act. 20—Amendment of section 30—Grant of retention licence The amendments in this clause are consequential on the proposed regulated substance retention licence and on updating references to regulated substances in the Act. 21—Amendment of section 31—Area of retention licence This amendment extends the area over which a petroleum retention licence (and the proposed regulated substance retention licence) may be granted to either— twice the area under which (according to a reasonable estimate at the time when the licence was granted or last renewed) the discovery is likely to extend; or 10,000 km², whichever is the lesser. 22—Amendment of section 32—Term of retention licence This amendment allows the Minister to determine that the term of a retention licence may be less than 5 years. 23—Amendment of section 34—Production licences The amendments in subclauses (1) and (2) relate to the addition of the proposed regulated substance production licence. Subclause (3) substitutes subsection (4) to amend the scope of a gas storage licence to include operations for the withdrawal of a regulated substance from a natural reservoir in which the substance has been stored. Subclause (3) also inserts proposed subsection (4a) which provides that a regulated substance production licence authorises, subject to its terms, operations of a kind prescribed by the regulations associated with the production of a regulated substance. 24—Amendment of section 35—Grant of production licence Subclauses (1) and (2) update an obsolete reference to mining tenements to mineral tenements under the Mining Act 1971. Subclause (3) inserts proposed subsection (3a) providing that the process of tender for grant of a production licence does not apply if the Minister has entered into a safety net agreement under section 94 in relation to a production licence in respect of a regulated resource in that area. Subclause (4) inserts a new subsection (5) which provides for the notification of the holder of a production licence on receiving and application for a gas storage licence within the area of the existing production licence. 25—Amendment of section 37—Area of production licence The amendment in this clause is consequential on the proposed regulated substance production licence. 26—Amendment of section 43—Royalty on regulated resources Subclause (1) amends the day on which a royalty return is to be provided to the Minister from within 30 days after the end of each month to the last day of the month following each month in which a regulated substance or geothermal energy is produced. Subclause (2) inserts a new subsection (13) providing that the Treasurer may, after consultation with the Minister, reduce or waive royalty— in respect of a regulated substance or a regulated resource prescribed by the regulations; or in prescribed circumstances. 27—Insertion of Part 7A This clause inserts a new Part as follows: Part 7—Rental 45A—Rental payable for utilising natural reservoir for storage The proposed section provides that the holder of a licence who utilises a natural reservoir to store a regulated substance must pay a prescribed amount by way of rental. The proposed section provides for exemptions from the liability to pay rental and for rental to be reduced or waived by the Minister as provided in the proposed section, as well as for the review of the exemption provisions in the proposed section. 45B—Rental return The proposed section requires the holder of a licence to whom proposed section 45A applies to provide the Minister with a return at the end of each prescribed period setting out matters set out in the proposed section. An administrative penalty applies for a failure to comply with this requirement. The proposed section further provides that the return must be accompanied by the rental payable by the holder of the licence. The Minister may determine that a requirement under the proposed section does not apply to a particular licensee or class of licensee, or impose requirements on the licensee in a manner set out in the proposed section. 45C—Penalty for late payment The proposed section provides for penalties to apply to a licensee who fails to pay rental as and when required under the proposed part. 45D—Recovery of rental The proposed section provides that rental payable, and any penalty interest or fine imposed by the Minister under the proposed Part, may be recovered as a debt due to the Crown. 28—Amendment of section 48—Alteration of pipeline This amendment increases the maximum penalty for altering or modifying a pipeline other than in accordance with section 48 from $120,000 to $250,000. 29—Amendment of section 59—Relationship with other licences These amendments provide that the Minister need not consult with an existing licensee in respect of area of land proposed to be covered under an associated activities licence if the existing licensee is the person applying for the associated activities licence. 30—Repeal of section 59A This amendment removes the requirement for a special facilities licence to be located within an area declared by the Minister by notice in the Gazette. 31—Amendment of section 59B—Special facilities licence Subclause (1) makes an amendment related to the removal of the declared areas in clause 29. It allows the area of a special facilities licence to be specified in the licence and limited to an area not exceeding 5 km². Subclause (2) adds a provision that a special facilities licence may licence a direct air capture and storage facility for the purposes of capturing carbon dioxide and storing it in a natural reservoir. 32—Repeal of section 59C The repeal of this section is consequential on the amendments in clauses 29 and 30. 33—Amendment of section 59D—Term of special facilities licence This clause amends subsection (2)(a) to allow for the Minister to renew a special facilities licence for a term to be determined by the Minister and notified to the licensee. 34—Amendment of section 59E—Relationship with other licences These amendments provide that the Minister need not consult with an existing licensee in respect of area of land proposed to be covered under a special facilities licence if the existing licensee is the person applying for the special facilities licence. 35—Amendment of section 65—Application for licence The amendments to this section are technical in nature and allow for fees to be prescribed by notice in accordance with the Legislation (Fees) Act 2019 and clarify that the Minister may determine the manner and form of licence applications. 36—Amendment of section 69—Grant of compatible licence to area already under licence These amendments provide that the Minister need not consult with an existing licensee in respect of area of land under a licence that is deemed compatible in accordance with this section if the existing licensee— is the person who is applying for the compatible licence; or is a licensee whose licence has been offered, but not yet granted to them by the Minister in accordance with section 66. 37—Insertion of section 73A This section inserts a new section as follows: 73A—Mandatory condition as to management system The proposed section makes it a mandatory condition of every licence that the licensee must establish and maintain a management system that complies with any requirements prescribed by the regulations in relation to the regulated activities to be carried out under the licence. 38—Amendment of section 77—Non-compliance with licence conditions This amendment increases the maximum penalty applying for the offence of a licensee failing to comply with a licence condition from $120,000 to $250,000. 39—Amendment of section 84—Records to be kept by the licensee This amendment inserts a requirement for the licensee to keep a record of their approved statement of environmental objectives. 40—Substitution of section 85 This clause substitutes section 85 as follows: 85—Reporting of certain incidents The proposed section sets out the manner and circumstances in which immediately reportable incidents and reportable incidents are to be reported to the Minister. An immediately reportable incident is an incident arising from activities conducted under a licence specified in the relevant statement of environmental objectives to be an immediately reportable incident. A reportable incident is an incident (not being an immediately reportable incident) arising from activities conducted under a licence specified in the statement of environmental objectives to be a reportable incident. The regulations may provide for other matters to be brought within the ambit of these definitions. 41—Amendment of section 86—Information to be provided by licensee Subsection (1) is recast to provide that the licensee must provide information or material relevant to carrying out regulated activities under the Act as requested by the Minister. Subclause (2) inserts a new subsection (5a) requiring any costs associated with complying with a requirement to provide information under the section to be borne by the licensee. 42—Insertion of Part 11 Division 9A This clause inserts a new division into Part 11 as follows: Division 9A—Change in control of holder of licence 86AA—Interpretation Proposed subsection (1) defines key terms for the purposes of the proposed Division, such as what constitutes control and a change in control of the holder of a licence. Proposed subsection (2) provides that is the intention of the Parliament that the proposed Division will apply within the State and outside the State to the full extent of the extraterritorial legislative capacity of the Parliament. 86AAB—Approval of change in control of holder of licence The proposed section sets out the process by which a person may apply to the Minister for approval of a change in control of the holder of a licence. 86AAC—Offences The proposed section sets out a number of offence provisions that apply to a person who begins or ceases to control the holder of a licence. Maximum penalties of $250,000 apply in relation to offences under the proposed section. The proposed section also allows the Minister to cancel a licence in respect of which a change in control has been effected if an offence is committed by a person other than the licensee. 43—Amendment of section 86A—Fitness-for-purpose assessment The amendments in this clause update the requirements for a fitness for purpose assessment required to be carried out by the licensee. Currently, only certain licensees are under an obligation to undertake a fitness for purpose assessment under the Act. These amendments extend the requirements to all licensees but limit the ambit of the assessment to be carried out to prescribed facilities (as defined in the measure). 44—Amendment of section 87—Activities to be carried out with due care and in accordance with good industry practice This amendment increases the maximum penalty for failure to carry out regulated activities with due care and in accordance with good industry practice from $120,000 to $250,000. 45—Amendment of section 88—Ministerial direction Subclause (1) expands the ambit of the matters in respect of which the Minister may direct the licensee under section 88(1) to include a direction to take specified action required to ensure obligations under the Act or a licence are met. Subclause (2) inserts a requirement for a notice of direction under section 88 to include the Minister's reasons for giving the direction and to allow a reasonable time for compliance with the direction. Subclause (3) increases the maximum penalty for a failure to comply with a direction under the section from $120,000 to $250,000. 46—Insertion of section 91A This clause inserts a new section as follows: 91A—Assignment of liability or obligation of licensee on surrender or cancellation of licence The proposed section allows the Minister, on application by a licensee before a licence is surrendered or cancelled under Part 11 Division 12 of the Act, to agree to the assignment of a liability or obligation of the licensee under the Act to a third party on terms and conditions determined by the Minister. 47—Insertion of Part 11 Division 12A This clause inserts a new Part 11 Division 12A as follows: Division 12A—Extension of term or reinstatement of licence 91B—Extension of term of licence The proposed section allows the Minister to extend the term of a licence to which the proposed section applies in a manner, and in circumstances, set out in the proposed section. The proposed section is expressed to apply in relation to an exploration licence, a retention licence, a production licence, a pipeline licence, an associated activities licence or a special facilities licence. 91C—Reinstatement of licence The proposed section allows the Minister to reinstate a licence to which the section applies that has expired in a manner and in circumstances set out in the proposed section. The proposed section is expressed to apply in relation to an exploration licence, a retention licence, a production licence, a pipeline licence, an associated activities licence or a special facilities licence. 48—Amendment of section 93—Obligation not to interfere with regulated activities This clause increases the maximum penalty for the offence of interfering with regulated activities lawfully conducted under a licence from $60,000 to $150,000. 49—Amendment of section 96—Pre-conditions of regulated activities This clause increases the maximum penalty for the offence of carrying out regulated activities without a statement of environmental objectives in force for the relevant activities from $120,000 to $250,000. 50—Insertion of Part 12 Division 2A This clause inserts a new Part 12 Division 2A as follows: Division 2A—Environmental impact assessment criteria 96A—Environmental impact assessment criteria The proposed section enables the Minister to determine criteria (the environmental impact assessment criteria) against which the environmental impact of regulated activities is to be assessed for the purposes of Part 12. The environmental impact assessment criteria, and any variation or revocation of the criteria, are to be notified by the Minister in the Gazette. The environmental impact assessment criteria are to be reviewed in accordance with the requirements of the regulations. 51—Amendment of heading to Part 12 Division 3 This clause amends the heading to Part 12 Division 3 consequential on other amendments in the measure. 52—Amendment of section 97—Environmental impact report This clause adds the following requirements for inclusion in an environmental impact report: an assessment against the environmental impact assessment criteria (made under proposed section 96A) in a manner determined by the Minister or prescribed by the regulations; a requirement for the licensee to undertake consultation on the environmental impact report in accordance with the requirements of the regulations. 53—Repeal of section 98 This clause repeals a section mandating the classification of regulated activities. 54—Substitution of section 99 This clause substitutes the current section 99 to update it as follows: 99—Statement of environmental objectives This proposed section revises and updates the current section regarding the requirements for preparing a statement of environmental objectives. A statement of environmental objectives must be prepared in accordance with the requirements of the regulations and submitted to the Minister for approval. If the Minister determines that an approved statement of environmental objectives should be revised, a revised statement must be prepared in accordance with the requirements of the regulations and approved by the Minister. The licensee must also undertake consultation on the proposed statement in accordance with the requirements of the regulations. 55—Amendment of section 100—Content of statement of environmental objectives In addition to the content currently specified in section 100, this clause makes amendments requiring a statement of environmental objectives to set out— leading performance criteria (as defined in amendments to section 4 of the Act); and immediately reportable incidents and reportable incidents (as defined in proposed section 85 of the Act); and such other information as prescribed by the regulations. 56—Substitution of sections 101 to 103 This clause deletes sections 101 to 103 (inclusive) that refer to the approval of statements of environmental impacts as being in respect of low, medium or high impact activities. Statements of environmental objectives are no longer to be classified in this manner. The proposed sections set out the requirements for the approval and review of all statements of environmental objectives as follows: 101—Approval of statement of environmental objectives The proposed section sets out the manner in which the Minister may approve a statement or revised statement of environmental objectives, and the notice and other requirements once the statement or revised statement is approved. 102—Review of statement of environmental objectives The proposed section provides for the circumstances in which a statement of environmental objectives must be reviewed, and how a review must be conducted and how such a revised statement is to be approved. 57—Amendment of section 105—Enforcement of requirements etc of statement of environmental objectives This clause makes amendments consequential on other changes to the requirements around statements of environmental objectives in this measure. 58—Insertion of Part 12 Division 4A This clause inserts a new Part 12 Division 4A as follows: Division 4A—Consultation by Minister 105A—Consultation by Minister on environmental impact report and statement of environmental objectives The proposed section sets out the manner in which the Minister must undertake public consultation on environmental impact reports and statements of environmental objectives. 59—Amendment of section 106—Environmental register This clause amends section 106 to make changes to the contents of the environmental register consequent on other amendments in the measure, and inserts a requirement that the register must contain any other document prescribed by the regulations. 60—Substitution of sections 108 and 109 This clause substitutes the current provisions regarding the power of the Minister to direct persons to take action to prevent or minimise environmental harm and rehabilitation of land as follows: 108—Environmental directions The proposed section gives the Minister power to issue an environmental direction if, in the Minister's opinion, regulated activities are being conducted in a way that results in, or is reasonably likely to result in— undue damage to the environment; or a breach of a statement of environmental objectives; or any other breach of the Act. The proposed section sets out the manner in which a direction may be given and reviewed, the nature of the directions that may be given and imposes a maximum penalty of $250,000 for a person who fails to comply with a direction. Owners of land are required to be notified of a direction given under the proposed section. 109—Rehabilitation directions The proposed section gives the Minister power to issue a rehabilitation direction to require action to be taken— to rehabilitate land in accordance with the requirements of a statement of environmental objectives (including land outside the area of the licence); or to rehabilitate land to a standard required to secure compliance with a condition of the relevant licence (including land outside the area of the licence); or to remove abandoned equipment and facilities. The proposed section further sets out the requirements for issuing a direction and imposes an offence with a maximum penalty of $250,000 for a person who fails to comply with a direction. 61—Amendment of section 110—Application for review of environmental direction This clause makes an amendment consequential on the amendments in clause 60. 62—Amendment of section 111—Liability for damage caused by authorised activities This clause inserts a requirement that a report under subsection (2) is to be made in a manner, and comply with requirements, determined by the Minister. 63—Amendment of section 120—Powers of entry and inspection Subclause (1) increases the maximum penalty for obstructing, without reasonable excuse, an authorised officer in the exercise of powers under the section from $4,000 to $10,000. Subclause (2) inserts an offence with a maximum penalty of $10,000 or imprisonment for 6 months for a person failing to give an authorised officer such assistance as is reasonably required for the effective exercise of a power conferred by the section. 64—Amendment of section 121—Power to gather information This clause increases the maximum penalty provisions in subsections 121(2) and (3) from $4,000 to $10,000. 65—Amendment of section 122—Production of records Subclause (1) makes amendments consequential on those in clause 27. Subclause (2) increases the maximum penalty provision in subsection (2) from $4,000 to $10,000. 66—Amendment of section 124—Decisions etc subject to review These amendments are consequential on the amendments in clauses 27 and 42. 67—Substitution of sections 129 and 130 This clause deletes section 129 which deals with the service of notices, as the general service provision in the Legislation Interpretation Act 2021 will apply. Section 130 which deals with verification of information is substituted by an offence regarding the giving of false or misleading information. The clause also adds a provision dealing with self-incrimination: 129—False or misleading information The proposed section makes it an offence with a maximum penalty of $150,000 for a person who gives information to the Minister, an authorised officer or any other person involved in the administration of the Act that is false or misleading in a material particular. 130—Self-incrimination The proposed section addresses the refusal of a person to provide information required by or under a direction under the Act on the grounds of self-incrimination. 68—Insertion of section 132 This clause inserts a new section as follows: 132—Charge on property if debt due to Crown The proposed section allows for a charge on property to apply to the owner of property who is liable to pay a debt due to the Crown under the Act. 69—Substitution of section 135 This section deletes section 135 and updates it as follows: 135—Disclosure of information The proposed section outlines the limitations on the disclosure of information obtained by an authorised officer or other person who carries out or has carried out duties related to the administration of the Act. A person who discloses information other than as provided for in the proposed section is guilty of an offence with a maximum penalty of $20,000 applying. 70—Amendment of section 136—Administrative penalties This clause increases the maximum amount that is able to be set as an administrative penalty in the regulations from $10,000 to $15,000. 71—Substitution of section 138 This clause substitutes the current section allowing the Governor to make regulations as follows: 138—Regulations and fee notice The proposed section recasts and updates the power of the Governor to make regulations as are contemplated by, or necessary or expedient for, the purposes of, the Act. Several of the amendments are consequential on other proposed amendments in the measure. The proposed section also allows regulations of a saving or transitional nature to be made consequent on the amendment of the Act by another Act, and allows for the Minister to prescribe fees for the purposes of the Act by fee notice under the Legislation (Fees) Act 2019. Schedule 1—Transitional and saving etc provisions The Schedule contains transitional and saving provisions consequent on the amendments contained in the measure. Debate adjourned on motion of Hon. B.R. Hood. At 16:17 the council adjourned until Tuesday 14 November 2023 at 14:15.