Footnotes
Chapter 1 - Background to the bill and conduct of the inquiry
[1]
In the report, Down Under: Greenhouse Gas Storage, the committee
sought to strike a balance between the existing rights of petroleum title
holders and those of organisations holding the new greenhouse gas storage titles.
The House Committee agreed with the Government that 'the similarities and
synergies in the petroleum and GHG storage industries make common legislation
appropriate' but advocated that financial incentives be considered to encourage
early investors into offshore storage of CO2 (p. 11). It noted that
petroleum companies may be best placed to operate such storage operations.
[2]
Selection of Bills Committee, Report No. 6 of 2008, 25 June 2008, Appendix 1.
[3]
Standing Committee for the Scrutiny of Bills, Alert Digest 6/08. Strict
liability is a legal doctrine that makes a person responsible for the damage
and loss caused by his/her acts and omissions regardless of culpability (or
fault in criminal law terms).
[4]
Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008,
Explanatory Memorandum, paragraph 5.
[5]
Initially the bill will authorise the injection and storage of a
'greenhouse gas substance', primarily carbon dioxide. However, the possibility
of expanding the scope of operations to other greenhouse gases is incorporated
into the bill, for example, SO2, N2O, methane and
nitrogen accompanying the CO2.
[6]
Ms Helen Oakey, Greenpeace Australia, Proof Committee Hansard, 29 August 2008, p. 2.
[7]
International Energy Agency, 'Near-term opportunities for carbon dioxide
capture and storage: issues identification workshop', OECD/IEA, 2007, p. 5.
[8]
Ms Margaret Sewell, Department of Resources, Energy and Tourism, Proof
Committee Hansard, 29 August 2008, p. 8.
[9]
Australian Petroleum Production & Exploration Association, Submission
11, p. 2.
[10]
ExxonMobil, Submission 1, p. 11.
[11]
International Energy Agency, 'Near-term opportunities for carbon dioxide
capture and storage: issues identification workshop', OECD/IEA, 2007, p. 10.
[12]
For a discussion of the need for a national infrastructure plan see
evidence presented by the Victorian government, Proof Committee Hansard,
29 August 2008, p. 24.
[13]
Ms Margaret Sewell, Department of Resources, Energy and Tourism, Proof Committee
Hansard, 29 August 2008, p. 12.
Chapter 2 - Science and economics of offshore CO2 storage
[1]
It may also be referred to as 'clean-coal technology'.
[2]
Monash Energy, Submission 3, fact sheet.
[3]
Mr Francis Cumming, Woodside Energy, Proof Committee Hansard, 1 September 2008, p. 3.
[4]
See, for example, Mr Mark Nolan, ExxonMobil, Proof Committee Hansard,
29 August 2008, p. 27 and Mr Paul Toni, World Wildlife Fund, Proof Committee
Hansard, 29 August 2008, p. 19.
[5]
Dr Geoffrey Ingram, Proof Committee Hansard, 29 August 2008, p. 40.
[6]
This is being undertaken by Statoil, the Norwegian state owned oil
company.
[7]
Mr Robert Young, ExxonMobil, Proof Committee Hansard, 29 August 2008, p. 27.
[8]
Department of Resources, Energy and Tourism, answer to questions on
notice 1, 29 August 2008.
[9]
Exxon Mobil Corporation is the largest publicly traded oil and gas
company in the world and is the parent company of ExxonMobil Australia. The
Exxon Mobil Corporation has a 32 per cent working interest in the abovementioned
Sleipner Project. In Australia, ExxonMobil is also involved in CCS projects in
the Bass Strait fields. See Submission 1, pp. 2–4; Mr Robert Young,
ExxonMobil, Proof Committee Hansard, 29 August 2008, p. 27.
[10]
Monash Energy, Submission 3, p. 1.
[11]
Schlumberger is also involved in the Illinois Project (USA) as part of the
Midwest Geological Sequestration Consortium; see Submission 5, p. 2.
[12]
Mr Dale Seymour, Department of Primary Industries, Victorian Government, Proof
Committee Hansard, 29 August 2008, p. 20.
[13]
CO2CRC is a joint venture comprising participants from Australian and
global industry, universities and other research bodies from Australia and New
Zealand, and Australian Commonwealth, State and international government
agencies.
[14]
Department of Resources, Energy and Tourism, answer to questions on notice
9, 29 August 2008.
[15]
Cooperative Research Centre for Greenhouse Gas Technologies, Submission
15, p. 2.
[16]
Greenpeace Australia, Proof Committee Hansard, 29 August 2008, p. 3.
[17]
Greenpeace Australia, Submission 10, p. 2. The World Wildlife Fund,
while making some caveats, called for 'accelerated approval of demonstration
projects'; Submission 4, p. 2.
[18]
House of Representatives Standing Committee on
Science and Innovation, Between a Rock and a Hard Place: the Science of
Geosequestration, August 2007, p. 68.
[19]
House of Representatives Standing Committee on Science and Innovation, Between
a Rock and a Hard Place: the Science of Geosequestration, August 2007, p.
56.
[20]
Cooperative Research Centre for Greenhouse Gas Technologies, Submission
15, p. 4.
[21]
Department of Resources, Energy and Tourism, answer to questions on notice
3, 29 August 2008.
[22]
Department of Resources, Energy and Tourism, answer to questions on notice
2, 29 August 2008.
[23]
Mr Paul Toni, World Wildlife Fund, Proof Committee Hansard, 29 August 2008, p. 19.
[24]
Greenpeace Australia, Submission 10, p. 2.
[25]
Greenpeace Australia, Submission 10, p. 2; Australian Network of
Environmental Defenders' Offices, Submission 2, p. 2.
[26]
Ms Helen Oakey, Greenpeace Australia, Proof
Committee Hansard, 29 August 2008, p. 3.
[27]
Ms Emily Rochon, Greenpeace Australia, Proof Committee Hansard, 29 August 2008, p. 4.
[28]
Mr Dale Seymour, Victorian Department of Primary Industries, Proof Committee
Hansard, 29 August 2008, p. 25.
[29]
Mr Mark Nolan, ExxonMobil, Proof Committee Hansard, 29 August 2008, p. 32.
[30]
Dr Geoffrey Ingram, Schlumberger Carbon Services, Proof Committee
Hansard, 29 August 2008, p. 41. Dr Ingram cited the IPCC as
saying around $10 for the storage component alone.
[31]
Mr Ralph Hillman, Australian Coal Association, Proof Committee Hansard,
29 August 2008, p. 51.
[32]
Ms Helen Oakey, Greenpeace Australia, Proof Committee Hansard,
29 August 2008, pp. 2–3.
[33]
Mr Ralph Hillman, Australian Coal Association, Proof Committee Hansard,
29 August 2008, p. 50.
[34]
Cooperative Research Centre for Greenhouse Gas Technologies, Submission
15, p. 1.
[35]
Mr Dale Seymour, Victorian Department of Primary Industries, Proof Committee
Hansard, 29 August 2008, pp. 20–1.
[36]
Dr Geoffrey Ingram, Schlumberger Carbon Services, Proof Committee
Hansard, 29 August 2008, p. 43.
[37]
For a complete list of funded projects under LETDF Round 1 see:
http://www.ret.gov.au/energy/Documents/2008%2007%2029%20LETDF_Round_1_Funded_projects.pdf
(accessed: 4 September2008).
Chapter 3 - Provisions for regulating the market
[1]
Department of Resources, Energy and Tourism, answers to questions on
notice 7, 29 August 2008.
[2]
For example, Anglo Coal submitted that the bill gives primacy to the
rights of petroleum tenement holders: 'The Bill is heavily biased towards the
protection of petroleum interests and, while it nominally makes CCS possible,
it does not reflect a determination to make it happen.', Anglo Coal, Submission
7, p. 1.
[3]
Dr Geoffrey Ingram, Schlumberger Carbon Services, Proof Committee
Hansard, 29 August 2008, p. 41.
[4]
BP Australia, Submission 6, p. 6.
[5]
World Wildlife Fund, Submission 4, p. 12, citing the CO2CRC.
[6]
Monash Energy, Submission 3, p. 2.
[7]
Woodside Energy, Submission 9, p. 2; Mr Niegel Grazia, Wooside
Energy, Proof Committee Hansard, 29 August 2008, p. 3.
[8]
ExxonMobil, Submission 1, p. 12.
[9]
Mr Niegel Grazia, Wooside Energy, Proof Committee Hansard, 29 August 2008, p. 2.
[10]
Schlumberger Carbon Services, Submission 5, p. 4.
[11]
Cooperative Research Centre for Greenhouse Gas Technologies, Submission
15, p. 4.
[12]
For example, ExxonMobil, Submission 1, p. 3; Monash Energy, Submission
3, pp. 3–5.
[13]
Victorian government, Proof Committee Hansard, 29 August 2008, p. 21.
[14]
See, for example, World Wildlife Fund, Proof Committee Hansard, 29 August 2008, p. 15; Victorian government, Proof Committee Hansard, 29 August 2008, p. 21; Australian Network of Environmental Defenders' Offices, Proof
Committee Hansard, 29 August 2008, p. 44; Australian Network of
Environmental Defenders' Offices, Submission 2, p. 3.
[15]
BP Australia, Submission 6, p. 6.
Chapter 4 - Provisions for liability
[1]
Strict liability is a legal doctrine that makes a person responsible for
the damage and loss caused by his/her acts and omissions regardless of
culpability (or fault in criminal law terms).
[2]
Ms Margaret Sewell, Department of Resources, Energy and Tourism, Proof
Committee Hansard, 29 August 2008, p. 9.
[3]
Ms Margaret Sewell, Department of Resources, Energy and Tourism, Proof
Committee Hansard, 29 August 2008, p. 9.
[4]
Mr Mark Nolan, ExxonMobil, Proof Committee Hansard, 29 August 2008, pp. 29–30.
[5]
Mr Roger Bounds, Monash Energy, Proof Committee Hansard, 29 August 2008, p. 36.
[6]
Mr Simon Daddo, Woodside Energy, Proof Committee Hansard, 1 September 2008, p. 8.
[7]
Monash Energy, Submission 3, p. 5.
[8]
World Wildlife Fund, Submission 4, p. 3.
[9]
BP Australia, Submission 6, p. 1.
[10]
Monash Energy, Submission 3, p. 28.
[11]
BP Australia, Submission 6, p. 1.
[12]
Australian Coal Association and Minerals Council of Australia, Submission
12, p. 7; Australian Coal Institute, Climate Institute, Construction,
Forestry, Mining and Energy Union and World Wildlife Fund, Submission 13,
p. 2. In their submission, the Cooperative Research Centre for Greenhouse Gas Technologies
explained that they were able to obtain insurance cover for the construction
and operational phase of their project but were not able to obtain cover beyond
10 years after closure. Submission 15, p. 4.
[13]
Recommendation 14 House of Representatives Standing Committee on Primary
Industry and Resources, Down Under: Greenhouse Gas Storage, August 2008,
pp. 74–9.
[14]
Western Australian Department of Industry and Resources, Submission 8,
p. 6.
[15]
Greenpeace Australia, Submission 10, p. 4.
[16]
Ms Kellie Caught, World Wildlife Fund, Proof Committee Hansard,
29 August 2008, pp. 15–6.
[17]
Senator Christine Milne, Proof Committee Hansard, 1 September 2008, p. 7. In a similar vein, Greenpeace noted 'the industry has viewed
liability as a barrier to wider deployment of CCS and has only accepted
liability over timescales of years rather than the indefinite period that CO2
must remain underground to be safe. Perhaps this can be seen as a vote of
no-confidence in CCS from the industry itself.'; Ms Helen Oakey, Greenpeace Australia,
Proof Committee Hansard, 29 August 2008, p. 3.
[18]
Australian Network of Environmental Defenders' Offices, Submission 2,
p. 3.
[19]
Australian Network of Environmental Defenders' Offices, Submission 2,
p. 3.
[20]
Ms Margaret Sewell, Department of Resources, Energy and Tourism, Proof
Committee Hansard, 29 August 2008, p. 10.
[21]
Australian Network of Environmental Defenders' Offices, Submission 2,
p. 8.
[22]
World Wildlife Fund, Submission 4, p. 9.
[23]
Cooperative Research Centre for Greenhouse Gas Technologies, Submission
15, p. 4.
[24]
Ms Anna Beesley, Victorian Department of Primary Industries, Proof Committee
Hansard, 29 August 2008, p. 23.