The state government remains resolute in its opposition to a federal offshore gas regulator, even after federal Resources Minister Martin Ferguson announced it would be based in Perth.
The state government remains resolute in its opposition to a federal offshore gas regulator, even after federal Resources Minister Martin Ferguson announced it would be based in Perth.
Mr Ferguson introduced legislation today to implement the government's response to the report of the Montara commission of inquiry and a Productivity Commission review of how the oil and gas industry is regulated.
He said the new measure would help ensure the operating standards of Australia's offshore petroleum industry are the best and safest in the world.
But WA Resources Minister Norman Moore said the state government was not supportive of the legislation and was disappointed it was introduced before negotiations were completed.
"However, negotiations will continue in respect to joint management of offshore petroleum activity until such time negotiations are completed and agreement is reached," Mr Moore said.
Premier Colin Barnett said he would not hand over WA's regulation of the oil and gas industry to the Commonwealth, and described the proposal to have two regulators as "silly"
"At the moment, we have basically a shared responsibility," he said.
"We have always indicated we're prepared to enter into a joint commonwealth/state body.
"If the commonwealth insists on proceeding alone, then what you'll have is two regulators instead of one. I think that's a silly outcome."
The establishment of a single national regulator was a key recommendation of the inquiry into the 74-day Montara oil spill in the Timor Sea in 2009.
"The existing regulatory arrangements are complex, disjointed and involve inconsistent administration, including regulatory duplication across governments," Mr Ferguson said.
Mr Ferguson said the Commonwealth now had legislative responsibility for petroleum operations beyond the three nautical mile limit, however day-to-day regulation was undertaken by a designated authority in each state and the Northern Territory.
Under the changes he's proposing, the seven authorities will be replaced by "an integrated regulatory system, promoting consistency and efficiency across Commonwealth waters".
An expanded new body, the National Offshore Petroleum Safety and Environmental Management Authority, will be set up.
Mr Ferguson said it would ensure only one agency regulated all safety issues from exploration through to well decommissioning.
The administration of titles will be centralised in a new National Offshore Petroleum Titles Administrator.
Both agencies will be based in Perth, with their costs recovered from industry.
"Agreement in principle has been reached with the federal government for state and commonwealth petroleum regulators to ensure more efficient use of regulatory staff for approvals in state and commonwealth waters," Mr Moore said.
"A memorandum of understanding for this co-location which WA has been negotiating for is almost finalised.
"But it would have been better if the federal government had delayed its legislation until negotiations were completed."