Commonwealth v WMC Resources Ltd [1998] HCA 8

High Court of Australia Brennan CJ Toohey, Gaudron, McHugh, Gummow and Kirby JJ Commonwealth v WMC Resources Ltd (M58/1996) [1998] HCA 8

ORDER

1. Appeal allowed with costs.

2. Set aside the orders of the Full Court of the Federal Court and in lieu thereof, order that:

(a) the appeal to that Court be allowed with costs;

(b) paragraphs 1 and 2 of the orders of Ryan J be set aside and in lieu thereof, order that the application be dismissed with costs.

Cur adv vult

The following written judgments were delivered:—

2 February 1998 Brennan CJ.

The context in which the question for determination arises

1. On 25 June 1977, an exploration permit No WA-74-P was issued to a permittee pursuant to the provisions of Div 2 of Pt III of the Petroleum (Submerged Lands) Act 1967 Cth (the P(SL) Act). Section 28 of that Act provides:

A permit, while it remains in force, authorises the permittee, subject to this Act and the regulations and in accordance with the conditions to which the permit is subject, to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the permit area. The permit area covered by permit No WA-74-P consisted of 253 "blocks" which lay within an "adjacent area", those terms being defined in and for the purposes of the P(SL) Act. To explore for petroleum in an "adjacent area" without a permit is prohibited: s 19. "Blocks" are portions of the surface of the earth bounded by meridians which are separated from each other by five minutes of longitude and parallels of latitude that are separated from each other by five minutes of latitude and which lie wholly or partly within an adjacent area (ss 5, 17). An adjacent area means an adjacent area in respect of a State or Territory ascertained in accordance with s 5A, the relevant sub-section of which reads as follows: