Chapter 4
Committee view
4.1
This bill responds to the tension between the resources sector and some
regional communities about certain coal and gas exploration and extraction
activities, in particular the extraction of coal seam gas (CSG). The committee supports
the principle that an agricultural landholder should have the right to
determine who can enter and undertake gas or coal mining activities on their
land. Landholders who provide access should be fairly compensated for doing so
and shown respect when entry on their land takes place. The committee also
expects that coal mining and unconventional gas projects to be subject to
robust environmental regulation.
4.2
As outlined in Chapter 1, however, the committee has been tasked
with considering a particular bill; it was not directed to undertake a wide‑ranging
inquiry into coal and unconventional gas. Accordingly, the principal issue that
the committee has considered is whether there are issues that require
Commonwealth legislation to address them, and if so, whether this bill is an
appropriate and workable response.
4.3
It is clear that aspects of this bill would create uncertainty or would
simply not work in practice. The committee notes, for example, the evidence
received about the broad definition of 'ownership interest', and how it would
be difficult, if not impossible, for a company to know that it has obtained
written authorisation from every person who has an ownership interest in the
relevant land. In addition, by providing an absolute right for landholders to
veto land access, the bill could introduce what is essentially akin to a
private ownership scheme for certain resources. Large amounts of compensation
that private landholders may secure as a result of this would reduce the wider
public benefit that arises from state ownership of the resources. It is also
unclear why the written authorisation requirements, and the ban on hydraulic
fracturing, would apply to some resources, but not others.
4.4
In any case, regardless of the views that exist on land access laws, hydraulic
fracturing and competing land uses, these matters are principally the
responsibility of the states. Various state parliaments have enacted detailed
laws that address land access issues, including arbitration and compensation. State
governments are also responsible for planning and land use policies. It is
clear that issues related to land access and hydraulic fracturing have received,
and continue to receive, careful consideration at the state level. Inquiries
into unconventional gas are underway in Victoria, South Australia and Western
Australia. Inquiries have concluded in recent years in New South Wales, Tasmania
and the Northern Territory. Some state governments have imposed moratoriums on hydraulic
fracturing while the issue is reviewed.
4.5
The committee also notes that landholders' rights can be enhanced as a
result of arrangements between representatives of agricultural landholders and
resource companies, such as the Agreed Principles of Land Access in New South
Wales. The committee encourages the further development and application of
land access principles, such as the Agreed Principles of Land Access, that
cover all industry participants in all relevant jurisdictions.
4.6
Landholders' interests and the interests of future generations need to
be respected as part of the development of the unconventional gas sector. The
regulatory regimes in place also need to be robust so that risks to
agricultural land and water resources are minimised. The committee, however,
fundamentally disagrees with the overall approach taken by the bill. The
committee considers that this bill is an excessive and unworkable response to
concerns that landholders may have about gas and coal activities. The committee
also does not consider that it was provided with sufficient credible scientific
evidence during the inquiry to justify a ban on hydraulic fracturing.
4.7
Any questions about the Commonwealth's and states' roles and
responsibilities in these areas are most appropriately dealt with by the
Council of Australian Governments (COAG), not by unilateral action undertaken
by the Commonwealth. Although the primary responsibility for the regulation of
unconventional gas rests with the states, the Australian Government can
continue to show leadership via the COAG Energy Council and through Australian
Government policies. The committee endorses the approach taken by the
Australian Government regarding unconventional gas, as expressed in the Energy
White Paper and the Domestic Gas Strategy. In particular, it is important
to enhance community confidence about the development of unconventional gas by
building on, and utilising, the knowledge base of unconventional gas so that
policy and regulatory decisions are clearly based on sound evidence.
Recommendation 1
4.8
The committee recommends that the Senate not pass the bill.
Senator the
Hon Anne Ruston
Chair
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