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 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.

2017-18 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 2017-18 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 2017-18 costs estimate
Fee categoryTitleLiable personFee rate 2016-17Fee rate 2017-18#Calculated capped costs 2017-18 FY
1Drilling wellsOperators of plant used to drill the wellPer km
$1,416
Per km
$1,466
$842,654
2Well completion or maintenance workOperators of work-over rigsPer well
$266.50
Per well
$275.80
$648,029
3ExplorationHolder of exploration tenuresPer sub-block
$2.28
Per sub-block
$2.36
$222,767
4Producing petroleum under a petroleum leaseHolder of petroleum production leasePer well
$1,460
Per well
$1,511
$4,612,515
6Greenhouse gas (GHG) storage projectsOperators of GHG storage facilitiesPer project
$12,231
Per project
$12,659
$12,659*
7PipelinesOperators of pipelinesPer Pipeline Index
$0.0003546
Per Pipeline Index
$0.000367
$858,124

* Currently no industry activity in this category.
# The fee rate for 2017-18 above has been increased by this year's standard QLD government indexation rate of 3.5%.

Explanation of fee changes

The Petroleum and Gas Inspectorate is committed to working collaboratively to foster a positive safety culture that improves outcomes across the industry.

The safety and health fee covers costs associated with the on-going delivery of regulatory services relating to safety and health at operating plant across Queensland. This includes activities such as legislative administration, policy development, stakeholder engagement, inspections and audits, complaint and prescribed incident response, dangerous situation and emergency response, investigations and other safety initiatives.

For 2017-18, safety and health fees have been capped on relevant categories in order to minimize additional costs and encourage further investment in safety.