The Crown retains ownership of petroleum and other regulated resources contained onshore in the ground in South Australia.
Ownership of the regulated substance transfers to a licensee upon recovery of the regulated substance on which a royalty is levied. This royalty is in addition to the Commonwealth, State and Local Government taxation regimes to which all companies and individuals are subject.
Royalties are calculated as a proportion of the net sales value of regulated substance at the actual point of sale to an arms length purchaser after deduction from the gross sale value of certain expenses. Deductible expenses are those directly relating to treating, processing or refining the regulated substance post-wellhead, or in conveying the regulated substance to the point of delivery to the purchaser (the wellhead value). Pre-wellhead costs such as those incurred in exploration, drilling or recovery activities cannot be claimed for the purposes of determining royalty.
This type of royalty system is widely accepted in the "petroleum" industry and is reasonably easy to administer for both companies and government.
The Licensees shall pay royalty in respect of all regulated resource produced from land comprised in the Licence ... other than substances described in Extract from the Petroleum and Geothermal Energy Act 2000: Section 43 (3)(a).
Regulated Fee and Royalty payments can be made by cheque made payable to PIRSA, or by direct bank transfer to:
Westpac Banking Corporation
1 King William Street
ADELAIDE SA 5000
Swift Code WPACAU425
BSB 035-502
Account Number 180021
Account Name PIRSA Collection Account
Payment Details (Please forward remittance advice)
Email ARFinance04@sharedservices.sa.gov.au
Fax 08 8124 9804
ABN 53 763 159 658
Any enquiries in relation to Regulated Fees or Royalty lodgement should be directed to the Licensing and Royalties branch, Petroleum and Geothermal Group, Level 6, 101 Grenfell Street, Adelaide SA 5000, or by phoning (08) 8463 3204.
Details about royalties and fees for petroleum and other regulated substances recovered from offshore South Australia can be found on the Australian Government Department of Resources, Energy and Toursim site (external site).