Creating Energy Security through Rigorous Accountability 

3 May 2023

As we move to a net-zero world, the Territory Labor Government’s number one priority is creating opportunities for Territorians.

Today, the Territory Government has released the Final Implementation Report into the Scientific Inquiry into Hydraulic Fracturing.

In 2018, the Scientific Inquiry into Hydraulic Fracturing, chaired by Justice Rachel Pepper, independently concluded in its final report that industry risks could be managed if all of the Inquiry’s 135 recommendations were implemented.

Over the past four years, the Territory Government has been working to implement those recommendations by undertaking comprehensive baseline studies and developing multiple assurances for the regulation and monitoring of an onshore gas industry, which includes:

• Ensuring all Environmental Management Plans for on-shore gas extraction must be available for public comment, demonstrate compliance with a new mandatory Code of Practice and require approval from the Minister for Environment;
• Strict new requirements that must be met before exploration and production approvals are granted, including new mandatory requirements relating to well integrity and well decommissioning, sacred site clearances to be granted and comprehensive on site water monitoring programs to be in place;
• Prohibitions on surface water extraction and waste reinjection, the development of wastewater management frameworks, and the requirement for gas companies to obtain a groundwater licence, backed by comprehensive new compliance and enforcement provisions;
• Strict requirements that must be met before production can take place including the development of robust and transparent monitoring programs, discussions with industry and pastoralists regarding land access requirements and compensation, and release of all environmental management plans for public comment;
• Broad new powers to sanction non-compliance, civil enforcement proceedings and increased criminal penalties for environmental harm;
• All activity proactively made public on the Petroleum Onshore Information NT website – point.nt.gov.au, as well as all environmental data and approvals made public at https://depws.nt.gov.au/onshore-gas.

A major part of the Government’s response has been the Strategic Regional Environmental and Baseline Assessment (SREBA), which is the most comprehensive series of regional scientific studies ever conducted in the Northern Territory.

Implementation of the 135 recommendations has been overseen by Dr David Ritchie, who was a member of the original Inquiry panel. As Independent Officer, operating at arm’s length from government, Dr Ritchie has provided regular published reports on how Government is progressing with this work.

Dr Ritchie’s remit has been to provide advice to government that ensures an onshore industry will be operating to world’s best practice and, accordingly, we will deliver tough and uncompromising new measures that will create a sustainable environment.

For further scrutiny and oversight going forward, the Northern Territory Government has allocated $2 million in Budget 2023 and per year going forward for the Petroleum Operations unit.

The $2 million annual investment will ensure the Department of Environment, Parks and Water Security can continue to rigorously assess EMP’s, deliver a strong compliance program, and provide education and guidance to industry.

The Territory Government will now move to carefully manage the onshore gas industry through our strengthened regulatory framework, ensuring greater transparency and accountability – and with Aboriginal people having a seat at the table.

This means all applications made for gas production in the Beetaloo Sub-basin — subject to the industry’s successful exploration and appraisal results — will go through a rigorous approval and monitoring process.

Building on our Government’s Large Emitters Policy, proponents of onshore gas production projects in the Northern Territory (regardless of size) will be required to submit a Greenhouse Gas Abatement Plan outlining their pathway to net zero. This is complementary to requirements under the Australian Government’s Safeguard Mechanism.

We will also continually assess these reforms and be responsive to opportunities to refine or adapt as required.

Get the facts, read the report and Dr Ritchie’s final advice at: hydraulicfracturing.nt.gov.au

Quotes attributed to Chief Minister Natasha Fyles:

“The Territory Labor Government understands the importance of having jobs for Territorians, development in our regions and secure energy supply.

“The release of the Final Implementation Report into the Scientific Inquiry into Hydraulic Fracturing, sets out significantly stronger environmental, cultural, social, economic and health protections in place than existed before the Inquiry was held. Gas is the transition fuel that enables renewable energy technology.

“The new industry standards set the bar high with clear expectations and transparency for industry compliance. 

“As we move forward, I will continue to listen to and work with Territorians. Together, we will increase local job opportunities, expand the Territory’s economy and maintain our unique culture and environment.

“Along with our world-class renewable resources, our highly prospective onshore gas resources will support our energy security during the transition to renewables — and will improve living standards for all Territorians.”

Northern Territory Government