West Australian Premier Colin Barnett says he will not hand over his state's regulation of the oil and gas industry to the Commonwealth and it would be "silly" to have two regulators.
Today, federal Resources and Energy Minister Martin Ferguson introduced a legislative package to implement the government's response to the report of the Montara oil spill inquiry and a Productivity Commission review of how the industry was regulated.
The Montara inquiry, which followed the 74-day oil and gas spill in the Timor Sea in 2009, recommended a single, independent national regulator to look after safety, well integrity and environmental management.
Mr Ferguson said the commonwealth had legislative responsibility for petroleum operations beyond the three nautical-mile limit but day-to-day regulation was undertaken by a designated authority in each state and the Northern Territory.
Under changes he is proposing, the seven authorities will be replaced by "an integrated regulatory system, promoting consistency and efficiency across commonwealth waters".
An expanded new body, the National Offshore Petroleum Safety and Environmental Management Authority, would be set up.
The administration of titles would be centralised in a new National Offshore Petroleum Titles Administrator.
Both agencies would be based in Perth, with their costs recovered from industry.
But Mr Barnett said he was not prepared to hand over WA's regulation of the oil and gas industry to a Commonwealth body.
"At the moment, we have basically a shared responsibility," he said.
"We have always indicated we're prepared to enter into a joint Commonwealth/State body.
"If the commonwealth insists on proceeding alone, then what you'll have is two regulators instead of one. I think that's a silly outcome."
AAP
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