Petroleum and gas safety and health fee

We charge the petroleum and gas (P&G) safety and health fee to cover the cost of safety and health activities for petroleum and gas-related operations in Queensland.

The fee allows us to ensure the standard of safety and health services is maintained and improves to keep pace with growing activities in the industry.

Calculation and payment of the fee

The annual fee is calculated using information received in the petroleum and gas safety and health fee return form. The information from the previous financial year is used to invoice the fee for the current financial year. Read the Petroleum and Gas (Production and Safety) Regulation 2004 (PDF, 1.3MB) Schedule 9, Part 8, for details of how the fee is calculated.

Fee policy

We charge an industry-specific fee instead of general public taxation. This is because there's a particular group of beneficiaries of the regulatory activities undertaken by the Inspectorate.

The fee is applied broadly across the range of petroleum and gas activities.

2016-17 costs estimate

The Chief Executive is required to publish forward estimates of the costs in undertaking safety and health activities for each relevant category of liable person for the financial year (s134AA Petroleum and Gas (Production and Safety) Regulation 2004). For the invoices to be issued in the 2016-17 financial year, Table 1 outlines the estimated costs for relevant fee categories where the capping formula applies (Category 1-4, 6 and 7).

Table 1 Petroleum and gas safety and health fee 2016-17 costs estimate
Fee categoryTitleLiable personFee rate 2015-16Fee rate 2016-17#Calculated capped costs 2016-17 FY
1Drilling wellsOperators of plant used to drill the wellPer km
$1,369
Per km
$1,416
$1,171,500
2Well completion or maintenance workOperators of work-over rigsPer well
$257.50
Per well
$266.50
$643,665
3ExplorationHolder of exploration tenuresPer sub-block
$2.21
Per sub-block
$2.28
$261,047
4Producing petroleum under a petroleum leaseHolder of petroleum production leasePer well
$1,411
Per well
$1,460
$4,577,287
6Greenhouse gas (GHG) storage projectsOperators of GHG storage facilitiesPer project
$11,818
Per project
$12,231
$12,231*
7PipelinesOperators of pipelinesPer Pipeline Index
$0.0003427
Per Pipeline Index
$0.0003546
$838,350

* Currently no industry activity in this category.
# The fee rate for 2016-17 above has been increased by this year's standard QLD government indexation rate of 3.5%.

Explanation of fee changes

The 2016-17 total budget has been set at $11,066,000 as a result of industry driven growth predominately in categories 2 and 4. The budget includes costs associated with increased investigation activities, effective delivery of services in remote locations, contingence for dealing with legacy bore issues, and delivery of services not able to be provided from within the Inspectorate. There has been a down turn in the drilling operations which has been reflected in the proposed estimate.

Following a review of industry activity conducted by the Petroleum and Gas Inspectorate, the individual fee rates for all categories have only risen by the Queensland government indexation rate of 3.5%. The caps set for 2016-17 still provide a substantial discount to industry which is in the order of $3.5 million across all categories.