The final report of the 15-month Northern Territory hydraulic fracturing inquiry has been delivered to the Northern Territory government after concluding that the risks associated with the industry can be managed provided its list of 135 recommendations are fully implemented.
The inquiry chair, Justice Rachael Pepper, said the challenges and risks associated with any onshore shale gas industry in the Northern Territory can be adequately managed.
Pepper added that the recommendations were “a complete package” and that it was critical each one was implemented in full, if government decided to lift the present moratorium on fracing in the territory.
She stressed, however, that the final report makes no recommendations about either retaining or lifting the ban. That is a matter for the government alone. The moratorium has been in place since Sept. 14, 2016.
Inquiry details
The inquiry received as many as 600 submissions following the release of a draft report last December. These included calls from many of Australia’s top climate scientists who suggested the development of the new shale gas fields in the territory would be too risky due to their potential to increase greenhouse gas emissions.
Pepper acknowledged the community concern about the impact that any further release of methane gas would have on climate change. In view of this concern the final report recommends there be no net gain in the inventory in relation to greenhouse gases and that the Northern Territory and Australian federal governments work together to ensure there would be an offset effectively.
The report also canvasses two options to reform the industry regulator. One option is to separate the arm of government that promotes the industry and deals with permit tenure and operations from the arm that regulates environmental compliance.
A second, longer-term option, is to establish an independent one-stop shop regulator.
Another recommendation suggests amendments to the Water Act such that gas companies are required to obtain a water extraction license and that there be a government charge on water used for all onshore gas activities.
The report stopped short of recommending that pastoralists be granted the right of veto. Instead the report included many recommendations to put pastoralists and gas companies on an equal footing when negotiating land access agreements.
It also said that a Strategic Regional Environmental Baseline Assessment should be conducted before any production approvals were granted.
Findings detailed
In summary, the inquiry concluded that no industry is completely without risk, but after considering the latest and best-available scientific data from a wide range of sources, and noting the recent and continuing technological improvements in the extraction of onshore shale gas, the conclusion is that the challenges and risks associated with any onshore shale gas industry in the Northern Territory can be managed by, among other things:
• Releasing land that is environmentally, socially, and culturally appropriate for use for shale gas development.
• Mandating world-leading engineering standards for the construction, maintenance, and decommissioning of all onshore shale gas wells and for the extraction of shale gas by fracing.
• Implementing new technologies where relevant as soon as they become available.
• Requiring the comprehensive monitoring and reporting of all aspects of onshore shale gas operations with real-time public scrutiny of the resulting data.
• Implementing regional-based approval processes.
• The completion of a strategic regional environmental and baseline assessment before production to gather essential baseline data prior to any onshore shale gas industry being developed.
• Insisting on a standalone comprehensive social impact assessment for each onshore shale gas project.
• Ensuring that traditional Aboriginal owners and Aboriginal communities are properly and comprehensively consulted about all aspects of any onshore shale gas project on or affecting their country.
• Ensuring that the regulator is truly independent and that laws protecting the environment are properly enforced with sufficiently stringent sanctions for non-compliance.
• Ensuring greater access to justice.
• Reforming the current regulatory framework governing onshore shale gas development in the NT to strengthen transparency and accountability of all decision-making.
• Introducing full-fee recovery to fund the necessary regulatory reforms and to ensure that strong oversight is maintained.
Upon receipt of the 1,000-page report, Chief Minister of the Northern Territory Michael Gunner said that a decision about whether or not to lift the fracing moratorium would not be rushed. However, he did indicate acceptance of the notion that all 135 recommendations would have to be implemented if the ban was lifted.
Gunner added that the topic would need more discussion within government and that a final decision would have to be unanimous in Cabinet following consultations with the party caucus.