Additional comments by Opposition Senators
Introduction
1.1
The work of the Senate Select Committee on Unconventional Gas Mining
adds to the significant body of work of former Australian Senate inquires, and
inquiries conducted by state and territory governments.
1.2
The committee has published almost 300 submissions to date, from members
of communities across Australia who have expressed their views on
unconventional gas mining, and has heard from witnesses at public hearings in
Queensland, New South Wales and the Northern Territory.
1.3
Opposition senators acknowledge the contribution made by submitters and
witnesses to the committee, and thank them for participating.
1.4
The majority of evidence presented to the committee through submissions
and public hearings was anecdotal in nature and presented general views on
unconventional gas mining as an industry. These views were noted by the
committee, and have been valuable in assisting the committee to understand the
general feeling of communities towards unconventional gas mining activity in
their area and in Australia more broadly.
Health
1.5
The committee heard evidence of the impact of unconventional gas mining
on the health of residents of the Western Downs Region of Queensland. However,
the committee has not been able to establish whether the symptoms presented to
the committee have been clearly caused by unconventional gas mining activity in
the area. In fact, the committee heard that a comprehensive study was conducted
by Queensland Health in 2013 which:
...found that a clear link could not be drawn between the
health complaints of residents and the impacts of the local CSG industry on
air, water or soil within the community. This report could not identify any
emissions from CSG activities that would explain the reported symptoms...[1]
Environment
1.6
The committee also heard anecdotal evidence regarding the environmental
impact of unconventional gas mining activity, but heard little factual or
scientific evidence to support the claims.
1.7
For example, submitters and witnesses from the Narrabri area raised
their concerns over the amount of water that may be used by Santos'
unconventional gas mining project in the area. In contrast, Santos told the
committee that their Narrabri Gas Project would use a comparatively small
amount of water when compared with cotton irrigation:
For the proposed Narrabri Gas Project, 37.5 gigalitres of
water will be extracted from the coal seams over the project life, equating to
an average of only about 1.5 gigalitres of water per year. By comparison, this
volume is around the same amount of water used to irrigate around 200 hectares
of cotton annually. About 60,000 hectares of cotton are irrigated in the
Narrabri area each year.[2]
1.8
In addition, the committee heard that the Independent Expert Scientific
Committee on Coal Seam Gas and Large Coal Mining Development (IESC) provides
expert scientific advice on coal seam gas and large coal mining proposals. The
IESC is a statutory committee and was established in 2012.
Land access
1.9
The report asserts that landholders lack rights and power, but
throughout Chapter 3 sets out the comprehensive legislation that exists across
the states and territories to regulate the unconventional gas mining industry.
In fact, the report notes that the Queensland Gas Company (QGC) have said that
they do not operate on private land without the landholder's consent.[3]
1.10
There is a portrayal of confusion or lack of uniformity across states in
relation to land access, and the report presents a table which displays
Tasmania and Victoria which have minimal or no unconventional gas mining
occurring. If anything, the table shows the relative uniformity in states which
have unconventional gas mining: Queensland and New South Wales.
1.11
Opposition senators also highlight that regular compensation payments
which have been paid to landholders with unconventional gas mining on their
land have allowed farmers to supplement their incomes and help to weather
difficult conditions, including drought.
GasFields Commission Queensland
1.12
The Committee heard a number of issues in relation to the GasFields
Commission Queensland during hearings.
1.13
It should be noted that the Queensland Government has commenced a review
of the GasFields Commission Queensland which is due to report to the Minister
for State Development by mid 2016.
1.14
The Queensland Government has appointed an Independent Reviewer,
Mr Robert Scott, to investigate whether there are opportunities to improve
the regulatory and administrative settings for petroleum and gas regulation,
including dispute resolution to address community concerns.
1.15
Mr Scott, a former member of the Land Court for 14 years, will, among
other purposes:
-
evaluate whether the GasFields Commission Queensland is achieving
its purpose;
-
evaluate whether the functions given to the Gasfields Commission
Queensland are sufficient to allow it to effectively manage disputes about land
access and other disputes between resource companies and landholders;
-
investigate whether an alternative model, such as an independent
Resources Ombudsman, is needed to provide a mechanism for dispute resolution
between resource companies and landholders; and
-
whether there can be harmonisation between the CSG Compliance
Unit and the Gasfields Commission Queensland to provide efficiencies and
improve dispute management processes.
1.16
This will be determined through consultation with stakeholders and
review of information sources.
Opportunities for Northern Australia
1.17
Opposition senators recognise the significant opportunities which are
afforded by unconventional gas mining regarding employment and regional
development.
1.18
The committee heard about the positive impact that unconventional gas
mining had on rural and regional communities. Mr Matt Doman, Director, South
Australia and Northern Territory, Australian Petroleum Production and
Exploration Association, told the committee that unconventional gas mining had
provided many benefits to communities across Australia:
Many communities right across Australia have felt the full
force of the global financial crisis, drought, the decline in Australian
manufacturing and the downturn in employment. In contrast the CSG industry at
its peak in Queensland employed over 40,000 people and paid royalties which
have supported programs which have invested more than $495 million over the
last four years in new community infrastructure, roads and flood mitigation.[4]
Conclusion
1.19
Opposition senators note that this is the committee's interim report,
and should the committee have the time to do so, further examination of the
issues relating to unconventional gas mining activity in Australia will occur.
Senator the Hon. Joseph Ludwig
Senator Anne McEwen
Deputy Chair
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