Overall strong performance in all business areas has resulted in the target being exceeded for the 2016-17 reporting period.

KPI 3: Percentage of compliance with regulated resource exploration and development conditions

What we measure:

The department ensures the State’s resource sector’s safety, health and environmental standards are world best practice and consistent with relevant State and Commonwealth legislation, regulations and policies.

Environment and Safety audits, inspections and investigations are regulatory activities of the department. This measure demonstrates the department’s capacity to effectively administer and enforce the regulated environment and safety conditions as per the respective legislation.

Planned site selection for safety and environment regulatory activities is based on a risk framework. Regulatory activities are also undertaken on sites following an environment or occupational safety and health incident; or notification of such incidents; or complaints by stakeholders including the general public.

The regulatory responsibility of the department includes the responsibility to collect royalties from resources development on behalf of the State. The department measures the compliance of returns, payments and production lodged by mineral and petroleum producers in line with relevant Acts and Regulations.

How we measure:

This measure is calculated by dividing the number of compliant activities by the total number of compliance activities.

Compliant activities are those that met all regulatory requirements and no non-compliance action was necessary or issued. Non-compliance actions are those with an enforceable consequence or repercussion for non-compliance, further than providing administrative persuasive notice for non-compliance.

Target Actual Status
Overall results 97% 96% -1%  kpi-target-not-met Target not met
KPI 3: Percentage of compliance with regulated resource exploration and development conditions


Results by regulatory area:

  • 97 per cent of resource safety compliance activities were compliant.
  • 95 per cent of environment compliance activities were compliant.
  • 93 per cent of royalties compliance activities were compliant.

Our performance:

Overall, the department achieved a compliance result close to the target. Targets in this KPI are challenging to achieve due to a combination of targeting high-risk operations and increased likelihood of detecting non-compliant activities through increased compliance activities.

Mineral industry compliance (96 per cent) with environmental conditions is consistent with the target. The level of environmental compliance within the petroleum industry (90 per cent) is slightly lower. However, this is considered reasonable due to targeting high-risk operators. Increasing the number of compliance activities compared to those of the previous year results in an increased likelihood of detecting non-compliant activities.

Royalties collection methodology was refined to focus on producers who have been issued with a Notice of Intent to forfeit (for late royalty payments) over the financial year under review. This refinement tailored the count of compliance activities and slightly reduced the number of regulatory activities reported.

Section highlights

The department used the opportunity of developing the new KPIs to undergo an extensive administrative review program. This resulted in improved consistency in metrics, definitions and methodologies involved in reporting the composite performance measures across multiple business activities contributing to individual KPI measures.