Fordham, R.C. & Anor v. Evans, G. & Ors [1987] FCA 637

" JOBGMENT No. 41/3

IN THE FEDERAL COURT OF AUSTRALIA } VICTORIAN DISTRICT REGISTRY ) No. VG428 of 1986 GENERAL DIVISION )

BETWEEN: ROBERT CLIVE FORDHAM and THE STATE OF VICTORIA

Applicants

AND: GARETH EVANS , B.H.P. PETROLEUM PTY. LTD., ESSO EXPLORATION AND PRODUCTION AUSTRALIA INC. and OIL BASINS LIMITED

Respondents

CORAM: Jenkinson J. PLACE: Melbourne DATE: 13 November, 1987

REASONS FOR JUDGMENT

Hearing of questions raised in an application for an order of review in respect of a decision to which the

Administrative Decisions (Judicial Review) Act 1977 applies.

The Petroleum (Submerged Lands) (Royalty) Act 1967 ("the

Royalty Act") and the Petroleum (Submerged Lands) Act 1967 ("the

Submerged Lands Act"), the latter of which "15 incorporated and shall be read as one with" the former (s.3 of the Royalty Act), make provision for, inter alia, the imposition of a royalty tax on petroleum recovered by a person in an area of submerged land,

Beneath waters that are beyond the outer limits of the territorial

sea adjacent to the States and the Northern Territory, in respect of which area an exploration permit or a retention lease or a production licence has been granted to that person under Part III of the Submerged Lands Act. Liability to pay the royalty is imposed on the permittee or lessee or licensee. It is a liability measured by reference to a percentage of the value at the well-head of the petroleum recovered by that person in the area in a particular period. After che axpiration of the month of the year in which the permit or lease or licence is granted the period is each month thereafter and the royalty is payable not later than

the last day of the next month : ss. 4, 5 and ll of the Royalty

Act.

Provision is made in both Acts for the administration of these taxing provisions, as of other subjects with which the