Hon Robin Chapple to the Leader of the House representing the Minister for State Development
With regard to the receipt of royalties from off-shore gas reserves I ask:
(1) Are there any royalties due to WA from development of the Browse Basin gas reserves?
(2) If yes to (1), what is the dollar value of such royalties if these gas reserves are processed on-shore?
(3) If yes to (1), what is the dollar value of such royalties if these gas reserves are processed off-shore?
(4) If no to (1), are there any royalties due to the Commonwealth, and if so what is the financial benefit to WA from the administration of such royalties?
I thank the Hon. Member for some notice of this question.
(1) Royalties will be payable to Western Australia from the development of Browse Basin gas contained within State Waters.
(2-3) The State royalty is normally set at between 10-12.5 per cent of the wellhead value of petroleum produced. The wellhead value of petroleum recovered is calculated by deducting, from the arm's length gross value of the petroleum, post-wellhead costs as agreed or determined. Consequently, the exact dollar amount is difficult to determine as it will depend on when, and the rate at which, these reserves are developed and the prevailing value of the gas at the time.
(4) Not applicable