Cost recovery and levies

As a statutory authority, NOPSEMA operates on a cost recovery basis through levies and fees collected from duty holders who are planning and undertaking offshore oil and gas operations. These arrangements ensure that NOPSEMA is sufficiently resourced to independently and effectively regulate safety, well integrity and environmental management.

Cost recovery

The mechanism for setting levies is through the preparation of a Cost Recovery Implementation Statement (CRIS) that meets the requirements of the Australian Government Cost Recovery Guidelines. The Cost recovery implementation statement 2015-16 (PDF 9.3MB) is available here. The levies that NOPSEMA collects are reflected in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Regulations 2004.

NOPSEMA’s cost recovery arrangements consist of a range of fees and levies which vary depending on the type and scope of regulatory submissions (e.g. proposals in safety cases, well operations management plans, environment plans).

NOPSEMA can also cost recover on a fee for service basis in other specific instances, such as conducting an investigation on behalf of the National Offshore Petroleum Titles Administrator (NOPTA) or validation of a financial assurance model.

NOPSEMA conducts regular reviews of its CRIS to ensure that cost recovery arrangements are adequate and that it can continue to effectively discharge its regulatory functions.

Cost effectiveness

Each financial year, NOPSEMA prepares a report that assesses the cost effectiveness of the authority's operations. The Cost effectiveness review report 2015-16 (PDF 511KB).

As NOPSEMA has broad ranging regulatory powers and responsibilities, it must ensure that the agency has a documented, systematic and consistent approach to how NOPSEMA will allocate its regulatory resources. For this purpose, NOPSEMA has published PL1312 - Allocation of NOPSEMA regulatory resources - Rev 1 - February 2016 (PDF 207KB).