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.
- The return form must be received by the department within 31 days of the end of each financial year. Penalties apply for late lodgement.
- Complete the Queensland petroleum and gas safety and health fee return form.
- You can also download the P&G safety and health fee guidelines (PDF, 1MB).
- The fee is invoiced on or before 10 November after the end of the financial year. The fee must be paid on or before 10 December. Details of payment methods are found on the invoice.
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).
|Fee category||Title||Liable person||Fee rate 2015-16||Fee rate 2016-17#||Calculated capped costs 2016-17 FY|
|1||Drilling wells||Operators of plant used to drill the well||Per km|
|2||Well completion or maintenance work||Operators of work-over rigs||Per well|
|3||Exploration||Holder of exploration tenures||Per sub-block|
|4||Producing petroleum under a petroleum lease||Holder of petroleum production lease||Per well|
|6||Greenhouse gas (GHG) storage projects||Operators of GHG storage facilities||Per project|
|7||Pipelines||Operators of pipelines||Per Pipeline Index|
|Per Pipeline Index|
* 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.
- Last reviewed: 08 Dec 2016
- Last updated: 08 Dec 2016