The Northern Territory Government has released the Final Implementation Report into the Scientific Inquiry into Hydraulic Fracturing, giving way to the development of onshore gas in the NT.
The NT Government announced a moratorium on hydraulic fracturing of onshore unconventional shale gas reservoirs in the Territory on 14 September 2016, and established the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory on 3 December 2016. In 2018, the inquiry chaired by Justice Rachel Pepper, concluded in its final report that industry risks could be managed if all of the inquiry’s 135 recommendations were implemented.
Over the past four years, the Territory Government has been working to implement those recommendations by undertaking comprehensive baseline studies and developing multiple assurances for the regulation and monitoring of an onshore gas industry.
The implementation has been overseen by Dr David Ritchie, who was a member of the original inquiry panel. Dr Ritchie’s remit has been to provide advice to government that ensures an onshore industry will be operating to world’s best practice.
“Having considered the system reform undertaken as a complete package, the NT Government is now satisfied that the risks identified by the Inquiry have been sufficiently mitigated, and is confident that applications for onshore petroleum production licences may now be accepted for consideration under the new regulatory regime,” the final report states.
This means the NT could give way for operators to proceed with the development of a number of proposed projects, including in the Beetaloo shale gas field.
Research has found the Beetaloo development, depending on its size, could create up to 6,300 jobs, a $1 billion increase in revenues projected to the NT Government over the next two decades and $22.4 billion in NT economic growth (measured by Gross Territory Product) by 2040.
The Australian Petroleum Production & Exploration Association (APPEA) NT Director David Slama said: “The NT has backed the Beetaloo and it’s great news for the businesses and people of Darwin and regional communities like Katherine and Tennant Creek to benefit from new investment and jobs.
“Completion of the recommendations was important so development can proceed in a responsible and environmentally safe way in a robust regulatory environment and in collaboration with landholders and Traditional Owners.
“More than a dozen inquiries and reviews – including the Pepper Inquiry which took 15 months, received 1,250 submissions, held more than 150 public hearings and over 50 community forums – have established that any risks associated with hydraulic fracturing can be safely managed.”
APPEA Chief Executive Samantha McCulloch said the Beetaloo Basin is a major new gas supply opportunity in Australia and today’s announcement it is a step closer to realising its economic benefits.
“The Beetaloo has been progressed under a stable long-term policy environment over the past five years that has allowed companies to invest millions of dollars in exploration, benefiting remote regional communities.”
However, the Climate Council has criticised the move, saying the Beetaloo shale gas field development is projected to emit the equivalent of almost three times Australia’s annual domestic emissions over the next two decades.
Chief Minister of the Northern Territory Natasha Fyles said the release of the final report sets out significantly stronger environmental, cultural, social, economic and health protections in place than existed before the Inquiry was held.
“The new industry standards set the bar high with clear expectations and transparency for industry compliance.”
The Chief Minister said the government will now move to manage the onshore gas industry through a strengthened regulatory framework, ensuring greater transparency and accountability – and with Aboriginal people having a seat at the table.
“This means all applications made for gas production in the Beetaloo Sub-basin — subject to the industry’s successful exploration and appraisal results — will go through a rigorous approval and monitoring process.
“Building on our Government’s Large Emitters Policy, proponents of onshore gas production projects in the Northern Territory (regardless of size) will be required to submit a Greenhouse Gas Abatement Plan outlining their pathway to net zero. This is complementary to requirements under the Australian Government’s Safeguard Mechanism.
“We will also continually assess these reforms and be responsive to opportunities to refine or adapt as required.”
To ensure further scrutiny and oversight going forward, the Northern Territory Government has allocated $2 million in Budget 2023 and per year going forward for the Petroleum Operations unit.
The $2 million annual investment will ensure the Department of Environment, Parks and Water Security can continue to assess Environment Management Plans (EMPs), deliver a strong compliance program, and provide education and guidance to industry.
Read the report and Dr Ritchie’s final advice at: hydraulicfracturing.nt.gov.au
