BHP Petroleum Pty Ltd v Balfour [1987] HCA 22

BHP Petroleum Pty Ltd v Balfour [1987] HCA 22

The determination of the well-head by the Designated Authority must accord with its accepted industry meaning and statutory construction, requiring location at or near the top of the well (the Christmas tree), not at distant valves on the platform. The Authority failed to ask the correct statutory question, rendering its determination invalid.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Decision on Appeal From the Full Court of the Supreme Court of Victoria
Outcome
Appeal allowed; determination of Designated Authority set aside; order of Marks J. restored; judgment for appellants for overpayment with interest.
Legal Topics
['royalty Determination' 'petroleum Licensing' 'statutory Construction']
['administrative Law'] ['royalty Determination' 'petroleum Licensing' 'statutory Construction']

Case Brief

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Procedural Posture

Appeal / High Court Decision on Appeal From the Full Court of the Supreme Court of Victoria

Legal Issues

  1. 1 ["Whether the Designated Authority's determination of the well-head location under the Petroleum (Submerged Lands) (Royalty) Act 1967 was valid" "Interpretation of 'well-head' and 'valve station' in the legislation"]

Ratio Decidendi

The determination of the well-head by the Designated Authority must accord with its accepted industry meaning and statutory construction, requiring location at or near the top of the well (the Christmas tree), not at distant valves on the platform. The Authority failed to ask the correct statutory question, rendering its determination invalid.

Court Disposition

Appeal allowed; determination of Designated Authority set aside; order of Marks J. restored; judgment for appellants for overpayment with interest.

Orders

  • ['Appeal allowed with costs.' 'Order of Full Court of Supreme Court of Victoria dated 8 April 1986 set aside.' 'Appeal to Full Court dismissed with costs.' 'Order of Marks J. dated 8 February 1985 restored.']