The Petroleum (Submerged Lands) Legislation-Concepts and Operation

The rights of nations to explore and exploit minerals in the continental shelf were recognized by the 1958 Convention on the Continental Shelf. The Commonwealth Government has expressed the view that, as a party to the Convention, it has, by virtue of its foreign affairs power, full rights to legislate with respect to offshore minerals. States have taken the view that the rights recognized as extending into the continental shelf are land mineral rights, which belong to the States, and the Commonwealth legislative power in this field is strictly limited. Without prejudice to each other's rights, Commonwealth and States agreed to "mirror" legislation in relation to offshore petroleum. Commonwealth and State legislation, of which the operative parts are in identical terms, are both administered, in relation to areas adjacent to each State, by State Ministers of Mines. The legislation has functioned well in practice, though difficulties are encountered by the Commonwealth Government due to lack of direct accountability to Commonwealth Parliament. An alternative scheme designed to overcome this problem is outlined.