41FMinisters must consider outgoing guarantee: permits and licences for petroleum

1. The Minister and the Minister of Finance acting jointly (the Ministers) must consider whether it is necessary or desirable to require 1 or more outgoing guarantees to be provided to the Crown by 1 or more of the following persons whom the Ministers consider to be appropriate to provide an outgoing guarantee:

2. an outgoing person:
3. a related body corporate of an outgoing person.

4. However, subsection (1) does not apply in relation to an outgoing person or a related body corporate of an outgoing person if there are none of the following in existence under the permit or licence in respect of which they are an outgoing person or related body corporate:

5. petroleum infrastructure:
6. 1 or more wells:
7. relevant older petroleum infrastructure:
8. 1 or more relevant older wells.

9. In this Act, unless the context otherwise requires, outgoing guarantee means a guarantee provided to the Crown—

10. under which a guarantor agrees to answer to the Crown for the unmet costs of any debt, default, or liability of the current permit holder or current licence holder in the event that the current permit holder or current licence holder defaults on its obligation to carry out and meet the costs of decommissioning under any of sections 89J, 89K, 89R, and 89S; and
11. that requires the guarantor to meet the total costs (or a lesser specified amount or proportion or an amount calculated in a specified manner) of decommissioning any petroleum infrastructure and wells, to the extent that—
    1. the petroleum infrastructure and wells were, at the time of the relevant transaction, in place or used for the purposes of carrying out, or otherwise related to, activities authorised by the permit or licence (whenever granted), and all relevant older petroleum infrastructure and relevant older wells; and
    2. acceptable financial security arrangements (as defined in section 89D(1)) in place are insufficient to meet the costs of that decommissioning.

12. For the purposes of this section, related body corporate means, in relation to a body corporate (A) and another body corporate (B), that—

13. B is A’s holding company or subsidiary within the meaning of section 5 of the Companies Act 1993; or
14. more than half of A’s voting products (other than voting products that carry no right to participate beyond a specified amount in a distribution of either profits or capital) are held by B and bodies corporate that are related to B (whether directly or indirectly, but other than in a fiduciary capacity), or vice versa; or
15. more than half of the voting products (other than voting products that carry no right to participate beyond a specified amount in a distribution of either profits or capital) of each of A and B are held by members of the other (whether directly or indirectly, but other than in a fiduciary capacity), or vice versa; or
16. the businesses of A and B have been so carried on that the separate business of each body corporate, or a substantial part of that business, is not readily identifiable; or
17. there is another body corporate to which A and B are both related.

18. In this section, voting product has the same meaning as in section 6 of the Financial Markets Conduct Act 2013.

19. Any other terms that are used, but not defined, in this section or sections 41G and 41I, have the same meanings as in sections 41AA and 89D.