New NT Government Delivers on Fracking Moratorium Election Commitment
Thursday 22 September 2016 @ 1.50 p.m. | Legal Research | Trade & Commerce
On 14 September 2016, the new Chief Minister of the Northern Territory Michael Gunner (the Minister) announced a moratorium on hydraulic fracturing, or fracking within Northern Territory at the South East Asia Australia Offshore and Onshore Conference, an oil and gas summit in Darwin.
Details
The moratorium took effect on 14 September 2016, and via a Media Release, it was announced that the Minister would not approve the process of hydraulic fracturing across the entire Northern Territory as part of delivering on election commitments. The Minister was quoted as saying:
“Territory Labor was clear about our policy of a moratorium on fracking and the election result is a clear mandate to implement it. . . . We heard loud and clear the concerns of everyday Territorians, pastoralists, amateur and commercial fishermen, tourism operators, traditional owners, Indigenous rangers and environmental groups. . . . It’s clear that Territorians are concerned about the effects of fracking on our land, water and environment. My government is acting on those concerns.”
The moratorium on fracking applies as follows:
- It is Territory-wide and fracking will not be approved across the entire Northern Territory;
- It applies to hydraulic fracturing of unconventional reservoirs, as well as the use of Diagnostic Fracture Injection Testing (DFIT);
- It applies to hydraulic fracturing under any permit or licence and means that fracking will not be approved whether it is for exploration or extraction; and
- Finally it is prospective, not retrospective and does not apply to existing approvals, of which there is only one remaining approval, of which the fracking component is now finished.
The moratorium is to be supported by a thorough investigation into the effects of fracking to be undertaken by an expert panel, whose expertise will be in geology, ecology, hydrogeology, ecotoxicology, geochemistry and environmental regulation. The result of the this investigation will be that the panel will provide its expert opinion as to whether the practice of fracking can be safely conducted in a highly regulated environment or whether it is deemed too great a risk for the Territory environment.
Inquiry Terms of Reference
In assessing the future development and sustainability of the use of hydraulic fracturing for the oil and gas industry in the Northern Territory, the Inquiry's Terms of Reference include:
- assessing the scientific evidence to determine the potential effects of hydraulic fracturing of unconventional reservoirs in the Northern Territory context on:
- Aquifers (groundwater); Surface water; Geology; Land and terrestrial ecosystems; Ecotoxicology; Human health, particularly with respect to the use and regulation of chemicals used in the hydraulic fracturing of unconventional reservoirs process; Current and future land uses (for example, pastoral production); Emissions (for example, fugitive emissions);
- assessing the effectiveness of mitigation and rehabilitation methods used throughout the hydraulic fracturing of unconventional reservoirs processes;
- advising whether hydraulic fracturing of unconventional reservoirs can be undertaken in the Northern Territory without adverse impacts on environmental, social and economic values of the Northern Territory;
- identifying the regulatory requirements necessary to reduce the environmental impacts and risks associated with hydraulic fracturing of unconventional reservoirs to a level that is as low as reasonably practicable and acceptable; and
- advising on research priorities to improve scientific understanding and meet government’s need for further evidence to inform decision making.
Inquiry Process
According to the Minister's Media Release, the Public Consultation Sessions and meetings will be held in Darwin, Katherine, Tennant Creek, Alice Springs and other regional communities, to ensure the ". . . collective voice of the community is heard". Further, a Hydraulic Fracturing Taskforce is also to be set up in the Department of the Chief Minister to support the Inquiry and its public consultations, and to also report regularly to the Northern Territory Cabinet.
Length of Time Moratorium is to Apply
The consultation period for the Inquiry is to remain open until 13 October 2016 and according to the Minister's Media Release, the Moratorium is to remain in place ". . . until government has thoroughly considered the recommendations of the Inquiry".
Reaction and Comment
The ABC News reports that the Federal Minister for Northern Australia, Senator Matthew Canavan, expressed the view that ". . . he did not support blanket bans in states and territories", saying the favoured view at the Federal level of government was to look at such matters on a project specific basis. According to the ABC News, the Minister cited the ACCC saying:
"Recently the Australian Corruption [sic Competition] and Consumer Commission did a big report on gas markets and they concluded that these blanket bans aren't the right approach and primarily it's because we really should be looking at projects on a specific basis, . . . It would be strange to adopt a one-size-fits-all approach to this industry where there'll be different circumstances in different areas."
The ABC News also reported the "peak gas industry "body's reaction, which was to question the need for another inquiry into fracking. It quoted Matt Doman from the Australian Petroleum Production and Exploration Association as saying:
"We believe the science has been investigated many times and we're very confident that any robust independent analysis of the industry will prove that it can be conducted safely and sustainably, . . . Our industry will deliver substantial jobs into the NT, a report by Deloitte identified 6,300 jobs in a likely scenario of onshore gas development here," . . .
It will be interesting to see what flows from the Northern Territory Moratorium and Inquiry and really only one thing is clear - the Northern Territory environment is in many ways a fragile one, which without careful and considered progress and development will easily be damaged, most likely irreparably.
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