Carbon Tax Intensive 2012

Friday 13 April 2012, 1:30pm–5:00pm
Law Society House, 179 Ann Street
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Seminar DVD (Resource code: 120413BD)
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Overview

Professional Skills 3 CPD points

Join senior partners from Corrs Chambers Westgarth, Clayton Utz, Allens Arthur Robinson, Young Law and McCullough Robertson for a comprehensive and practical examination as to how the Clean Energy Scheme will impact on the LNG sector and businesses in Queensland specifically. Understand the significance of natural gas supply and the Obligation Transfer Number, the ways of getting it wrong, what project structuring and carbon price pass-through mechanisms exist and how to choose from the compensation options available.

Australian Corporate Lawyers Association members are eligible for QLS member pricing via manual registration form only.

Course code: 120413B

1:30pm–2:15pm
An overview of the Carbon Pricing Mechanism and liability for emissions from facilities (Paper)
Professional Skills

The Clean Energy Bill 2011 and the associated 18 Bills setting out the Carbon Pricing Mechanism were approved by the Senate on 8 November 2011. With this new and additional cost of complying with the Clean Energy Scheme businesses should be taking steps to prepare for the introduction of the scheme. This means reviewing existing contracts to determine whether the business (as a supplier) is able to pass through to its customers, the costs it may incur as a result of the carbon pricing scheme, and whether business owners as customers are obliged to accept a pass through of the supplier’s carbon costs.

  • Speaker: Michael MacGinley – Partner, Corrs Chambers Westgarth
2:15pm–2:45pm
Fundamental Concepts of the Clean Energy Act Scheme (Paper)
Professional Skills

Australia has a suite of 25 interacting Acts and their Regulations to limit the total number of tonnes of greenhouse gases those activities may release into the atmosphere in a year. Practitioners connected to the resources sector in any way whatsoever need to understand what a Carbon Unit is, including what type of property it comprises, how they can be acquired both pre and post the auction scheme commencing, and the way the Australian National Registry of Emission Units will work. This session examines the imposed charge for emitting such tonnes and how entities are likely to attract penalties for exceeding the cap.

  • what is a “facility”?
  • what are “covered emissions”?
  • who is a “liable entity”?
  • what is “operational control”?
  • how and when liability can be transferred

Transfers discussed include:

  • between related bodies corporate – liability transfer certificates (“LTCs”)
  • between operators of a joint venture
  • to other, non-related entities – obligations transfer numbers (“OTNs”)
  • Speaker: Doug Young – Principal, Young Law
2:45pm–3:05pm
Afternoon tea
3:05pm–3:50pm
Natural gas supply and the Obligation Transfer Number (Paper)
Professional Skills

Under the legislation, a supplier of natural gas through a natural gas supply pipeline will be liable for the emissions embodied in that natural gas, unless it is effectively transferred to the purchaser where the purchaser quotes an obligation transfer number (OTN). This session explains how this process will have the most significant impact on Queensland, and which practical nuances are involved.

  • When is a supply of natural gas a liable supply?
  • Who must have an Obligation Transfer Number (OTN)?
  • Who may also have an OTN?
  • What if only part of the gas is used and part on-sold?
  • Supplies of gas into and out of pipelines and storage facilities.
  • What if the gas is exported?
  • What if the gas is given to someone else for combustion in a large facility?
  • The relationship between excise liability, emission liability, and gas supply liability.
  • Speaker: Graeme Dennis – Partner, Clayton Utz (Sydney)
3:50pm–4:30pm
Project structuring and carbon price pass-through mechanisms (Paper)
Professional Skills

The Clean Energy legislation contains specific provisions that deal with the imposition of emissions liability on unincorporated joint ventures and their operators. Hear about the options for structuring emissions liability for unincorporated joint ventures and the contractual provisions that can be used to complement this allocation of emissions liability. This session will include a case study on LNG (from gas extraction to sale) that will draw together the treatment of natural gas and LNG under both the carbon pricing scheme and the excise/fuel tax credits arrangements, as well as the allocation of free carbon units for LNG production under the Jobs and Competitiveness Program.

  • Speaker: Grant Anderson – Partner, Allens Arthur Robinson (Melbourne)
4:30pm–5:00pm
The emissions trading scheme and the use of international permits (Paper)

Australia’s carbon pricing mechanism will be linked to carbon markets around the world from the start of the flexible price period on 1 July 2015. Such international linking will enable Australian businesses to access international emissions reduction opportunities that lower the costs of meeting Australia’s emissions targets. Hear which businesses will benefit the most from this system and what role the commercial lawyer will play in the process.

  • Speaker: Charles Gregory – Lawyer - Infrastructure, Energy and Government team, McCullough Robertson
  • Chair: Scott Singleton – Partner, Minter Ellison

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