NOPTA News Issue 05—September 2013

Cost recovery review

A key aim of the review was to ensure that NOPTA has a cost recovery arrangement that provides the resources necessary for efficient and effective operation of the organisation. The cost recovery arrangement should also be aligned with best practice policy principles, specifically those outlined in the Australian Government’s 'Cost recovery guidelines'.

It was concluded that the overall amount currently collected through levies and application fees is sufficient to continue to fund NOPTA’s operations. However, the amounts of the varying titles levies and application fees should be rebalanced to remove cross-subsidy. This would ensure that NOPTA’s cost structure is more equitable and relevant to the activities that NOPTA undertakes.

Furthermore, the review concluded that the annual titles administration levy for a petroleum exploration permit should be charged on a per title basis. Currently an annual titles administration levy for a petroleum exploration permit is charged on a per block basis. This will be more equitable as NOPTA’s effort in administering the exploration permit does not vary according to the number of blocks being applied for, which can vary widely.

In addition, certain cost recoverable activities that require effort do not currently attract a fee. Costs are instead being cross-subsidised through the ATA Levy which is collected on an annual basis. Three new application fees are proposed to cost recover for the activities related to:

  • access authorities
  • suspension, extension, variation, exemption
  • declaration of location.

The proposed 'Cost recovery impact statement' also suggests the removal of miscellaneous fees.

The registration fees which were previously charged under the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Act 2006 (the Registration Fees Act) will cease from 1 November 2013 when the Registration Fees Act is repealed. The registration fees for transfers and dealings will be replaced with an application fee. Please see NOPTA’s fact sheet on registration fees for more information.

The revised CRIS moves NOPTA to an activity based costing approach providing greater transparency around NOPTA’s operational costs. A full copy of the proposed CRIS can be found on the cost recovery and fees webpage. NOPTA is seeking stakeholder input by COB 20 September 2013.
Enquiries: NOPTA’s Business Manager, 08 6424 5333
Written submissions: corporate@nopta.gov.au