Regulating coal seam gas in Queensland: Lessons in an adaptive environmental management approach?

Environmental and Planning Law Journal

Volumn 29, Issue 2, 2012, Pages 163-185

  Swayne, Nicola ^a  

^a QUEENSLAND UNIVERSITY OF TECHNOLOGY   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

ADAPTIVE MANAGEMENT; COAL SEAM; ENVIRONMENTAL MANAGEMENT; LAND REFORM; NEGOTIATION PROCESS; REGULATORY APPROACH; STRATEGIC APPROACH;

AUSTRALIA; QUEENSLAND;

EID: 84867132140     PISSN: 0813300X     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (245)

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2. Clark T, Hynes R and Mariotti P, Greenhouse Gas Emissions Study of Australian CSG to LNG (WorleyParsons, April 2011).
3. Sakmar, n 1 at 399.
4. Premier and Minister for Reconstruction, The Honourable Anna Bligh, Premier Heralds New "Gas Age for Queensland" (27 May 2011), http://www.cabinet.qld.gov.au/mms/StatementDisplaySingle.aspx?id=74946 viewed 6 March 2012.
5. Australian Government, Onshore Co-produced Water: Extent and Management at 4 (National Water Commission, RPS Australia East Pty Ltd, Waterlines Report Series No 54, September 2011) (NWC Co-produced Water Assessment).
6. NWC Co-produced Water Assessment, n 4 at 5.
7. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432 at [6].
8. Sakmar, n 1 at 399-404.
9. National Water Commission, Position Statement: Coal Seam Gas and Water (December 2010, Australian Government) at 1.
10. National Water Commission Position Statement, n 8 at 1.
11. National Water Commission Position Statement, n 8 at 1.
12. National Water Commission Position Statement, n 8 at 1.
13. Queensland Government, Adaptive Environmental Management Regime for the Coal Seam Gas Industry (Department of Environment and Natural Resources, 2011) at 1 (Queensland Adaptive Environmental Management Regime Policy).
14. Gregory R, Ohlson D and Arvai J, "Deconstructing Adaptive Management: Criteria for Applications to Environmental Management" (2006) 16(6) Ecological Applications 2411 at 2411.
15. Gregory et al, n 13 at 2412-2413.
16. Gregory et al, n 13 at 2411.
17. Gregory et al, n 13 at 2412.
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19. Pahl-Wostl C, "Requirements for Adaptive Water Management" in Pahl-Wostl C, Kabat P and Moltgen J (eds), Adaptive and Integrated Water Management (Springer, Dordretch, 2007) p 4.
20. Pahl-Wostl, n 18, p 4.
21. Gregory et al, n 13 at 2411.
22. Gregory et al, n 13 at 2421.
23. Gregory et al, n 13 at 2423.
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25. Gregory et al, n 13 at 2412.
26. Jones, n 17, p 251.
27. Argent R, "Components of Adaptive Management" in Allan C and Stankey G (eds), Adaptive Environmental Management (Springer, Netherlands, 2009) p 26.
28. Argent, n 26, p 26.
29. Pahl-Wostl, n 18, p 18
30. Gregory et al, n 13 at 2413.
31. Jones, n 17, p 256.
32. Jones, n 17, p 256.
33. Jones, n 17, p 237.
34. Argent, n 26, p 14.
35. Argent, n 26, p 20.
36. Jones, n 17, p 237.
37. Argent, n 26, p 14.
38. Jones, n 17, p 239.
39. Argent, n 26, p 14.
40. Jones, n 13, p 240.
41. Jones, n 13, p 240.
42. Queensland Adaptive Environmental Management Regime Policy, n 12 at 1.
43. Queensland Adaptive Environmental Management Regime Policy, n 12 at 1.
44. Queensland Adaptive Environmental Management Regime Policy, n 12 at 1.
45. Petroleum and Gas (Production and Safety) Act 2004 (Qld), s 26 (P&G Act 2004 (Qld)).
46. Mineral Resources Act 1989 (Qld), Pt 7AA, Div 8.
47. Mineral Resources Act 1989 (Qld), Pt 7AA.
48. P&G Act 2004 (Qld), s 800.
49. This article will address the operation of the P&G Act 2004 (Qld) only as this applies to all new applications in Queensland.
50. P&G Act 2004 (Qld), Ch 2, Pt 1 (authorities to prospect), Pt 2 (petroleum leases). The operator may also require licenses for surveys, pipelines and petroleum facilities, Ch 4.
51. P&G Act 2004 (Qld), Ch 3, Pt 6.
52. Environment Protection Act 1994 (Qld), Ch 3 (EP Act 1994 (Qld)). It is the current policy of DERM not to require an EIS for exploration
53. Queensland Government, Guideline: Deciding the Level of Impact Assessment for the Mining Industry (Department of Environment and Natural Resources, 2011) at 6.
54. Appendix C criteria for EIS trigger (note: this guideline is currently under review by DERM).
55. EP Act 1994 (Qld), Ch 5A.
56. Set out in Environmental Protection Regulation 2008 (Qld), Sch 5.
57. EP Act 1994 (Qld), s 310D.
58. impacts of air quality, remnant vegetation and important habitat and nuisance noise impacts. Queensland Government, Guidelines under Environmental Protection Act 1994: Preparing an Environmental Management Plan for Coal Seam Gas Activities (Department of Environment and Resource Management) at 3 (Queensland EMP Guidelines).
59. Queensland EMP Guidelines, n 54 at 3.
60. Queensland EMP Guidelines, n 54 at 16.
61. EP Act 1994 (Qld), s 310D. 58 EP Act 1994 (Qld), s 310N, Dictionary.
62. Queensland Government, Guidelines: Model Conditions for Coal Seam Gas Activities (Department of Environment and Resource Management, March 2011) at 1 (Model Conditions).
63. EP Act 1994 (Qld), ss 310O, 312O.
64. P&G Act 2004 (Qld), s 487.
65. Note: a detailed analysis of the operation of the Environment Protection and Biodiversity Conservation Act 1999 (Cth) is outside the scope of this article.
66. Wilson L, "Expert Panel to Judge Project Proposals", The Australian (22 November 2011), http://www.theaustralian.com.au/national-affairs/expert-panel-to-judge-project-proposals/story-fn59niix-1226201823472 viewed 6 March 2012.
67. Wilson, n 63.
68. Wilson, n 63.
69. Packham B, "Gillard to apply Water Test For Future Coal Seam Gas Projects", The Australian (21 November 2011), http://www.theaustralian.com.au/business/mining-energy/super-next-front-in-mine-tax-war/story-e6frg9df-1226201684195 viewed 6 March 2012.
70. Waters L, Media Release: Greens Welcome Independent Breakthrough on Coal Seam Gas (The Greens Party, 21 November 2011), http://www.greens.org.au/content/greens-welcome-independent%E2%80%99s-breakthrough-coal-seam-gas viewed 6 March 2012.
71. Queensland Government, Strategic Cropping Land Bill 2011: Explanatory Notes at 10 (SCL Explanatory Notes). 69 Strategic Cropping Land Act 2011 (Qld) (commenced 30 January 2012), s 3 (SCL Act 2011 (Qld)).
72. SCL Act 2011 (Qld), s 4.
73. Queensland Government, Strategic Cropping Land Policy - Strategic Cropping Protection Areas and Strategic Cropping Management Areas (Department of Environment and Natural Resources, 2011) at 1.
74. SCL Explanatory Notes, n 68 at 2.
75. SCL Explanatory Notes, n 68 at 3
76. SCL Act 2011 (Qld), Ch 2.
77. SCL Act 2011 (Qld), s 40.
78. SCL Act 2011 (Qld), s 11.
79. SCL Act 2011 (Qld), ss 76-79. Other than in an emergency situation.
80. SCL Explanatory Notes, n 68 at 3; SCL Act 2011 (Qld), Chs 2, 3.
81. Queensland Government, "State Planning Policy 1/12: Protection of Queensland's Strategic Cropping Land" (SPP 1/12, commenced 30 January 2012).
82. Cropping is defined to include: (a) the yield of any form of cultivated crop for any purpose, including, for example, for food, as fibre, for fodder or medicinal purposes; (b) the growing of trees to produce, or as a component for food, fibre or a medicinal product; and (c) harvesting a timber plantation, SCL Act 2011 (Qld), Sch 2.
83. SCL Act 2011 (Qld), s 14.
84. Open-cut mining and storing hazardous mine wastes, including tailings dams, overburden or waste rock dumps are also identified as causing permanent impacts.
85. SCL Act 2011 (Qld), s 14.
86. SCL Act 2011 (Qld), s 14.
87. Queensland Government, "Strategic Cropping Land Standard Conditions Code for Resource Activities" (Department of Environment and Resource Management, Version 1, January 2012) at 3
88. SCL Act 2011 (Qld), s 81
89. Strategic Cropping Land Regulation 2011 (Qld), s 8.
90. SCL Act 2011 (Qld), Ch 4
91. major renewable energy projects have been prescribed as development in "exceptional circumstances" under the Strategic Cropping Land Regulation 2011 (Qld), s 9.
92. SCL Act 2011 (Qld), ss 117, 118, 127, 128.
93. SCL Act 2011 (Qld), s 128(2). 87 SCL Act 2011 (Qld), Ch 5.
94. SCL Act 2011 (Qld), Ch 5.
95. SCL Act 2011 (Qld), ss 131, 138. This value will be a rate per hectare prescribed in the regulations, s 132; Strategic Cropping Land Regulation 2011 (Qld) s 10.
96. SCL Act 2011 (Qld), s 135. Failure to comply with the SCL Act may result in the making of stop work notices and restoration notices against the resource developer, SCL Act 2011 (Qld), Ch 6.
97. SCL Explanatory Notes, n 68 at 14, 33.
98. P&G Act 2004 (Qld), s 804.
99. P&G Act 2004 (Qld), s 537DB(2)(d). 94 P&G Act 2004 (Qld), s 24.
100. Queensland Government, "Land Access Code" (Department of Employment, Economic Development and Innovation, November 2010), Pt 2 (Land Access Code).
101. P&G Act 2004 (Qld), s 555
102. Land Access Code, n 95, Pt 3.
103. P&G Act 2004 (Qld), s 495.
104. P&G Act 2004 (Qld), s 497.
105. P&G Act 2004 (Qld), s 512.
106. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432.
107. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432 at [32].
108. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432 at [36].
109. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432 at [42].
110. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432 at [49].
111. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432 at [50]
112. O'Connor and O'Connor v Arrow (daandine) Pty Ltd [2009] QSC 432.
113. Minister for Employment, Skills and Mining, The Honourable Stirling Hinchliffe, CSG company fined $40,000 for land conduct breaches (Ministerial Media Statement, 20 June 2011), http://www.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=75340 viewed 6 March 2012.
114. Hinchliffe, n 107.
115. Hinchliffe, n 107.
116. Queensland Government "Tips for landholders negotiating agreements with resource companies" (Department of Employment, Economic Development and Innovation, November 2010) at 1 (Queensland Government Negotiating Tips).
117. This challenge is supported by the National Farmers Federation.
118. Lloyd G, "Fertile Grounds for Coal-Seam Test Case", The Australian (21 May 2011), http://www.theaustralian.com.au/national-affairs/fertile-grounds-for-coal-seam-test-case/story-fn59niix-1226059965718 viewed 6 March 2012.
119. P&G Act 2004 (Qld), s 532.
120. P&G Act 2004 (Qld), s 500.
121. Queensland Government, Landholder Information (Department of Mining and Safety, 2011) for links to the standard form agreements, http://www.mines.industry.qld.gov.au/mining/landholder-information.htm viewed 6 March 2012.
122. P&G Act 2004 (Qld), s 500B. 116 P&G Act 2004 (Qld), s 502. This includes rights to carry out required rehabilitation and environmental management works under the EP Act 1994 (Qld), P&G Act 2004 (Qld), s 513A. 117 P&G Act 2004 (Qld), s 503.
123. P&G Act 2004 (Qld), s 503. Permanent impact on the land, is defined as meaning "a continuing effect on the land or its use or a permanent or long-term adverse effect on its current lawful use by an occupier of the land".
124. P&G Act 2004 (Qld), s 504.
125. P&G Act 2004 (Qld), s 505(3).
126. P&G Act 2004 (Qld), s 536A.
127. P&G Act 2004 (Qld), s 537A. See also Ch 10, Pt 1AA for the procedures applying to conferences.
128. P&G Act 2004 (Qld), ss 537B, 537D, 537DB, 537DC. In determining the conditions of access the Land Court must have regard to the criteria set out in s 505.
129. If the holder asks the owner or occupier to make an access agreement, and the owner or occupier has not made the agreement within 20 business days, then the owner or occupier is taken to have refused to agree, P&G Act 2004 (Qld), s 504.
130. P&G Act 2004 (Qld), s 532.
131. Australian Diatomaceous Earth Pty Ltd v Marsterson [2004] QLRT 49.
132. P&G Act 2004 (Qld), s 532(4)(b). 128 Queensland Government Negotiating Tips, n 110 at 3.
133. P&G Act 2004 (Qld), Sch 2.
134. For example, share farmers and other rights holders.
135. Queensland Government Negotiating Tips, n 110 at 5.
136. Sakmar, n 1, p 396.
137. Queensland Government, Standard Conduct and Compensation Agreement (version 27 August 2010) Sch 3, http://mines.industry.qld.gov.au/mining/landholder-information.htm viewed 6 March 2012.
138. P&G Act 2004 (Qld), s 509.
139. P&G Act 2004 (Qld), s 537C.
140. P&G Act 2004 (Qld), ss 507, 537E.
141. Under the P&G Act 2004 (Qld), the owner or occupier is not civilly liable to anyone else for a claim based in tort for damages relating to the carrying out of an authorised activity under the petroleum authority, s 563A. However, anecdotal evidence suggests that only limited indemnities for direct damage are being included in the standard agreements.
142. Gray S, "Coal Seam Gas Laws 'Disadvantage' Landowners", Sydney Morning Herald (3 March 2011), http://www.news.smh.com.au/breaking-news-national/coal-seam-laws-disadvantage-landowners-20110303-1bfr6.html viewed 6 March 2012.
143. Queensland Government, n 133 at cl 20.
144. Burgess S and Tapim F, "CSG Inquiry Continues in Brisbane", ABC News (20 July 2011), http://www.abc.net.au/news/2011-07-20/csg-inquiry-continues-in-brisbane/2802118 viewed 6 March 2012.
145. P&G Act 2004 (Qld), s 513.
146. Queensland Government, Hydraulic Fracturing (fraccing) in CSG Wells (Department of Environment and Natural Resources, 11 March 2011) at 1.
147. Geoscience Australia and Habermehl M, Summary of Advice in Relation to the Potential Impacts of Coal Seam Gas Extraction in the Surat and Bowen Basins, Queensland: Phase One Report Summary for the Australian Government Department of Sustainability, Environment, Water, Population and Environment (29 September 2010) at 4.
148. Geoscience Australia and Habermehl, n 143 at 5.
149. Moran C and Vink S, Assessment of Impacts of the Proposed Coal Seam Gas Operations on Surface and Groundwater Systems in the Murray-Darling Basin (University of Queensland, November 2010) at 4.
150. Queensland Government, n 142 at 1.
151. Petroleum Gas (Petroleum Safety) Regulations 2004 (Qld) (P&G Safety Regulations), ss 30A, 35, 35A.
152. Or chemicals that produce, or are likely to produce, benzene, ethylbenzene, toluene or xylene as the chemical breaks down in the environment.
153. EP Act 1994 (Qld), s 312W, this came into force on 29 July 2011.
154. Queensland Government, Fraccing and BTEX (Department of Environment and Resource Management, 2011), http://www.derm.qld.gov.au/factsheets/pdf/csg/csg8.pdf viewed 6 March 2012. These BTEX standards were based on the Australian Drinking Water Guidelines (ADWG) and the Australia and New Zealand Environment Conservation Council (ANZECC) Guidelines for Fresh and Marine Water Quality.
155. P&G Safety Regulations, s 35A.
156. P&G Safety Regulations, s 46A.
157. EP Act 1994 (Qld), s 320.
158. EP Act 1994 (Qld), new s 320A
159. Natural Resources and Other Legislation Amendment Act 2010 (No 2) (Qld).
160. EP Act 1994 (Qld), new s 320B.
161. EP Act 1994 (Qld), new ss 320C, 320D, 320E.
162. P&G Act 2004 (Qld), s 706
163. P&G Safety Regulations, s 11 and Sch 2.
164. Burgess S "Farmer Waits for Gas Leak Impact", ABC News Online (24 May 2011), http://www.abc.net.au/news/2011-05-24/farmer-waits-for-gas-leak-impact/2728256 viewed 6 March 2012.
165. Queensland Government, Code of Practice for CSG Well Head Emissions Detection and Reporting (Department of Employment, Economic Development and Innovation Petroleum and Gas Inspectorate, 2011).
166. Queensland Government, n 159 at 5. Leaks of 10% LFL must be reported in writing to the Petroleum and Gas Inspectorate within 24 hours. Leaks at 100% LFL or above must be notified immediately by telephone, at 9.
167. Geoscience Australia and Habermehl, n 143 at 1.
168. Geoscience Australia and Habermehl, n 143 at 2.
169. Geoscience Australia and Habermehl, n 143 at 1.
170. Geoscience Australia and Habermehl, n 143 at 7.
171. Geoscience Australia and Habermehl, n 143 at 7.
172. Queensland Adaptive Environmental Management Regime Policy, n 12 at 1.
173. Moran and Vink, n 145 at 4.
174. Queensland Adaptive Environmental Management Regime Policy, n 12 at 2.
175. Act 2004 (Qld), s 185.
176. Act 2004 (Qld), s 189.
177. Water Act 2000 (Qld), s 367.
178. Water Act 2000 (Qld), s 397.
179. Water Act 2000 (Qld), ss 365, 370. The report is due within 14 months of an area being declared a cumulative management area.
180. Water Act 2000 (Qld), s 370. QWC may require changes to the report if it believes there have been material changes in the information or predictions contained in the report, s 392.
181. Water Act 2000 (Qld), s 376. It is an offence to fail to comply with the approved report, s 390.
182. Water Act 2000 (Qld), s 381.
183. Water Act 2000 (Qld), s 439. The act provides rights of entry to allow this occur after the end of the petroleum tenures, s 441.
184. Geoscience Australia and Habermehl, n 143 at 4.
185. Water Act 2000 (Qld), s 362.
186. Water Act 2000 (Qld), ss 402, 411.
187. Queensland Government, Coal Seam Gas- Bore Assessments (Department of Environment and Resource Management, April 2011) at 1
188. Water Act 2000 (Qld), s 421.
189. Water Act 2000 (Qld), s 409.
190. Queensland Government, Aquifer Impacts and "Make Good" Arrangements (Department of Environment and Resource Management, February 2011); Water Act 2000 (Qld), s 421.
191. Water Act 2000 (Qld), s 422.
192. Water Act 2000 (Qld), ss 434-436.
193. Water Act 2000 (Qld), s 437.
194. Water Act 2000 (Qld), s 406.
195. Water Act 2000 (Qld), ss 425, 426.
196. Water Act 2000 (Qld), s 436.
197. Water Act 2000 (Qld), s 436.
198. National Water Commission Position Statement, n 8 at 3.
199. NWC Co-produced Water Assessment, n 4 at 1
200. Taulis M, "Australia and New Zealand CBNG development and environmental implications" in Reddy KJ (ed), Coalbed Natural Gas: Energy and Environment (Nova Science Publishers, 2010) p 415.
201. NWC Co-produced Water Assessment, n 4 at 6.
202. NWC Co-produced Water Assessment, n 4 at 11.
203. NWC Co-produced Water Assessment, n 4 at viii. "The potential quantity of water generated in Qld over the next 25 years from CSG production for LNG and domestic industries is 3775 GL for a low development scenario to 7650 GL for a probable development scenario", at 14.
204. NWC Co-produced Water Assessment, n 4 at viii.
205. NWC Co-produced Water Assessment, n 4 at 1, 14, 16.
206. Taulis, n 192, p 421.
207. NWC Co-produced Water Assessment, n 4 at viii.
208. NWC Co-produced Water Assessment, n 4 at viii.
209. NWC Co-produced Water Assessment, n 4 at 18.
210. NWC Co-produced Water Assessment, n 4 at 21.
211. NWC Co-produced Water Assessment, n 4 at ix.
212. NWC Co-produced Water Assessment, n 4 at ix.
213. NWC Co-produced Water Assessment, n 4 at 26.
214. EP Act 1994 (Qld), s 310D.
215. Queensland EMP Guidelines, n 54 at 16-20.
216. Queensland EMP Guidelines, n 54 at 23-24.
217. Queensland Government, Salt and Brine Management in Coal Seam Gas Production (Department of Environment and Resource Management, March 2011) at 1.
218. EP Act 1994 (Qld), Ch 7, Pt 8.
219. EP Act 1994 (Qld), s 13.
220. EP Act 1994 (Qld), Ch 4.
221. EP Act 1994 (Qld), s 13(4).
222. Model Conditions, n 59, G7.
223. Model Conditions, n 59, G8.
224. Model Conditions, n 59, G10.
225. That is, less than 0.25 hectares. 218 P&G Act 2004 (Qld), s 186
226. Queensland Government, Guidelines: Approval of Coal Seam Gas Water for Beneficial Use (Department of Environment and Natural Resources, March 2010) at 2.
227. Model Conditions, n 59, G9.
228. Environmental Protection (Waste Management) Regulation 2000 (Qld), s 66B.
229. Taulis, n 192, pp 415, 411.
230. Queensland Government, n 218 at 5.
231. NWC Co-produced Water Assessment, n 4 at 20.
232. NWC Co-produced Water Assessment, n 4 at viii.
233. NWC Co-produced Water Assessment, n 4 at 21.
234. Environmental Protection (Waste Management) Regulation 2000 (Qld), ss 66M, 66N
235. Queensland Government, n 218 at 8.
236. This would include consideration of whether the operator had complied with the general environmental duty to take all reasonable and practicable measures to avoid or minimise environmental harm, EP Act 1994 (Qld), s 319.
237. Water Act 2000 (Qld), Ch 2, Pt 6.
238. Water Supply (Safety and Reliability Act) 2008 (Qld), s 20, Pt 9A.
239. Water Supply (Safety and Reliability Act) 2008 (Qld), Ch 3. Exemptions to this requirement will apply where the supply has no materially impact on the drinking water supply of a drinking water service, s 319.
240. Water Supply (Safety and Reliability Act) 2008 (Qld), s 329H.
241. NWC Co-produced Water Assessment, n 4 at 21.
242. NWC Co-produced Water Assessment, n 4 at 17.
243. NWC Co-produced Water Assessment, n 4 at 21.
244. Queensland Adaptive Environmental Management Regime Policy, n 12 at 1.
245. Queensland Adaptive Environmental Management Regime Policy, n 12 at 1.