Coal seam gas exploration and production in New South Wales: The case for better strategic planning and more stringent regulation

Environmental and Planning Law Journal

Volumn 29, Issue 2, 2012, Pages 129-151

  Poisel, Tim ^a  

^a UNIVERSITY OF SYDNEY   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

COAL PRODUCTION; COAL SEAM; EXPLORATION; FEDERAL SYSTEM; IMPLEMENTATION PROCESS; LAND USE PLANNING; REGULATORY FRAMEWORK; STATE ROLE; STRATEGIC APPROACH;

AUSTRALIA; NEW SOUTH WALES;

EID: 84867135839     PISSN: 0813300X     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (178)

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6. Also known as coal seam methane and coal bed methane.
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11. New South Wales Government, n 7.
12. New South Wales Government, Submission No 642 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 30 September 2011, 6-7.
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18. APPEA, n 14.
19. Worley Parsons, Greenhouse Gas Emissions Study of Australian CSG to LNG - Full Report (2011), http://www.appea.com.au/images/stories/Policy_CSG/appea%20worley%20csg%20greenhouse%20emissions%20study%20final%20110411.pdf viewed 21 February 2012.
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26. Geny, n 22, p 4.
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28. United States Energy Information Administration, World Shale Gas Resources: An Initial Assessment of 14 Regions Outside the United States (2011), http://www.eia.gov/analysis/studies/worldshalegas viewed 21 February 2012.
29. Queensland Government, Fact Sheet: Coal Seam Gas Water Feasibility Study (Department of Environment and Resource Management, 2010), http://www.derm.qld.gov.au/factsheets/pdf/water/w184.pdf viewed 21 February 2012.
30. Queensland Government, n 26.
31. Queensland Government, n 26
32. Queensland Government, Fact Sheet: About Coal Seam Gas (Department of Environment and Resource Management, 2011), http://www.derm.qld.gov.au/environmental_management/coal-seam-gas/about.html viewed 21 February 2012
33. McBeth I, Reddy K and Skinner Q, "Coalbed Methane Product Water Chemistry in Three Wyoming Watersheds" (2003) 39(3) Journal of the American Water Resources Association 575 at 576
34. Young A, "Coalbed Methane: A New Source of Energy and Environmental Challenges" (2005) 12(6) Environmental Science and Pollution Research 318 at 319.
35. Also known as fracture stimulation, fraccing, fraking, fracking, hydrofracking and fracturing.
36. Bridle A and Harris C, "A Risk to Groundwater from Coal Seam Extraction in the Surat Basin" in Eldridge D and Waters C (eds), Proceedings of the 16th Biennial Conference of the Australian Rangeland Society (Australian Rangeland Society, 2010) p 5.
37. Bridle and Harris, n 30.
38. Parliamentary Library of Australia, Background Note: The Development of Australia's Coal Seam Gas Resources (28 July 2011) - no longer available online.
39. See also CSIRO, What is Coal Seam Gas? (2 November 2011) http://www.csiro.au/news/coal-seam-gas viewed 21 February 2012
40. Gas Industry Social and Environmental Research Alliance, General Coal Seam Gas Frequently Asked Questions (December 2011), http://www.gisera.org.au/publications/faq/faq-csg-general.pdf viewed 21 Febru-ary 2012.
41. For discussion of overlapping titles under the Petroleum (Onshore) Act 1991 (NSW) and the Mining Act 1992 (NSW),
42. see Frecker D and Zhang C, Coal Seam Gas in New South Wales - A Legal Labyrinth (Blake Dawson, 2010), http://www.blakedawson.com/Templates/Publications/x_article_content_page.aspx?id=57791 viewed 21 February 2012.
43. Petroleum (Onshore) Act 1991 (NSW), s 3.
44. The definition of "petroleum" provides that it "does not include coal or oil shale or any substance prescribed to be a mineral for the purposes of the Mining Act 1992".
45. Petroleum (Onshore) Act 1991 (NSW), s 6(1).
46. Petroleum (Onshore) Act 1991 (NSW), s 7.
47. Petroleum (Onshore) Act 1991 (NSW), s 9.
48. Petroleum (Onshore) Act 1991 (NSW), s 29.
49. Petroleum (Onshore) Act 1991 (NSW), s 3.
50. Petroleum (Onshore) Act 1991 (NSW), s 33.
51. Note to s 33 of the Petroleum (Onshore) Act 1991 (NSW).
52. Petroleum (Onshore) Act 1991 (NSW), s 41.
53. Petroleum (Onshore) Act 1991 (NSW), ss 75, 76.
54. Petroleum (Onshore) Act 1991 (NSW), s 21.
55. New South Wales Government, Overview of Environmental Assessment for Exploration, Mining and Petroleum (Department of Industry and Investment, undated), http://www.dpi.nsw.gov.au/minerals/environment/overview viewed 21 February 2012.
56. State Environmental Planning Policy (State and Regional Development) 2011, cl 6 of Sch 1.
57. Environmental Planning and Assessment Act 1979 (NSW), s 89E.
58. Environmental Planning and Assessment Act 1979 (NSW), s 78A(8A).
59. Environmental Planning and Assessment Act 1979 (NSW), s 89J.
60. Environmental Planning and Assessment Act 1979 (NSW), s 89K.
61. Water Management Act 2000 (NSW), s 97(6).
62. Environmental Planning and Assessment Act 1979 (NSW), ss 76A, 77.
63. Environmental Planning and Assessment Act 1979 (NSW), s 77A.
64. Environmental Planning and Assessment Regulation 2000 (NSW), cl 27 of Sch 3.
65. Environmental Planning and Assessment Act 1979 (NSW), s 78A(8)(a).
66. The Environmental Defender's Office has criticised the REF process for being a tick-a-box system: see Environmental Defender's Office NSW, Ticking the Box: Flaws in the Environmental Assessment of Coal Seam Gas Exploration Activities (2011), http://www.edo.org.au/edonsw/site/pdf/pubs/ticking_the_box.pdf viewed 21 February 2012.
67. Environmental Planning and Assessment Act 1979 (NSW), s 111.
68. Guthega Development Pty Ltd v Minister (1987) 7 NSWLR 353; 61 LGRA 401; Transport Action Group Against Motorways Inc v Roads and Traffi{dotless}c Authority (1999) 46 NSWLR 598; 104 LGERA 133 at [68].
69. Environmental Planning and Assessment Act 1979 (NSW), s 112(1).
70. Jarasisu v Forestry Commission of NSW (1988) 71 LGRA 69.
71. See also the Federal Court's acceptance of this meaning in Booth v Bosworth (2001) 114 FCR 39; 117 LGERA 168.
72. Petroleum (Onshore) Act 1991 (NSW), s 42.
73. New South Wales Government, Land Holders Rights, Access Arrangements and Compensation Under the Petroleum (Onshore) Act 1991 (Department of Industry and Investment, undated), http://www.dpi.nsw.gov.au/minerals/titles/landholders-rights/petroleum_onshore_act_1991 viewed 21 February 2012.
74. Petroleum (Onshore) Act 1991 (NSW), s 69C.
75. Pt 4A of the Petroleum (Onshore) Act 1991 (NSW), in particular ss 69H, 69L, 69N, 69R.
76. Petroleum (Onshore) Act 1991 (NSW), s 107(1).
77. Petroleum (Onshore) Act 1991 (NSW), s 108.
78. General Purpose Standing Committee No 5, New South Wales Legislative Council, Inquiry into Coal Seam Gas: Terms of Reference, undated, http://www.parliament.nsw.gov.au/prod/parlment/committee.nsf/0/29ae48525cfaea7cca2578e3001abd1c/$FILE/TOR%20Coal%20seam%20gas.pdf viewed 21 February 2012.
79. General Purpose Standing Committee No 5, Parliament of New South Wales, Coal Seam Gas (Inquiry): Timeline, 2011, http://www.parliament.nsw.gov.au/prod/parlment/committee.nsf/0/29AE48525CFAEA7CCA2578E3001ABD1C viewed 21 February 2012.
80. See for instance NSW Farmers' Association, Submission No 335 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 12 September 2011
81. Cotton Australia, Submission No 450 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 20 September 2011
82. Hunter Valley Wine Industry Association, Submission No 259 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 7 September 2011.
83. Cited in NSW Farmers' Association, n 70 at 11.
84. "CSG Groundwater Concerns 'Legitimate'", Sydney Morning Herald (28 April 2011), http://www.news.smh.com.au/breaking-news-national/csg-groundwater-concerns-legitimate-20110428-1dxpn.html viewed 21 February 2012.
85. Cubby B, "Coal Seam Damage to Water Inevitable", Sydney Morning Herald (3 August 2011), http://www.smh.com.au/environment/water-issues/coal-seam-damage-to-water-inevitable-20110802-1ia00.html viewed 21 February 2012.
86. Australian Government, Position Statement: Coal Seam Gas and Water (National Water Commission, 2010), http://www.nwc.gov.au/water-reform/our-position/coal-seam-gas viewed 21 February 2012.
87. Australian Government, n 74.
88. National Water Commission, Submission No 100 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 31 August 2011.
89. Environmental Defender's Office NSW, Submission No 359 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 12 September 2011.
90. Santos, Submission No 337 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 8 September 2011, 26.
91. Cotton Australia, n 70 at 8.
92. Hunter Valley Wine Industry Association, n 70 at 17.
93. Hunter Valley Wine Industry Association, n 70 at 17.
94. Lock the Gate Alliance Inc, Submission No 280 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 7 September 2011, 6
95. Caroona Coal Action Group, Submission No 135 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 1 September 2011, 5.
96. Barrington-Gloucester-Stroud Preservation Alliance, Submission No 272 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 7 September 2011, 6.
97. Sessoms H, Bauder J, Keith K and Pearson K, Chemical Changes in Coal Bed Methane Product Water Over Time (Department of Land Resources and Environmental Sciences, Montana State University, 2002) http://www.waterquality.montana.edu/docs/methane/cbmwater.pdf viewed 21 February 2012.
98. CSIRO, Farming Ahead: Measure Soil Water for Better Farming Decisions (2006), http://www.csiro.au/files/files/p73o.pdf viewed 21 February 2012.
99. CSIRO, n 85.
100. Caroona Coal Action Group, n 82 at 5.
101. Environmental Defender's Office NSW, n 77 at 6.
102. Doctors for the Environment Australia Inc, Submission No 412 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 16 September 2011, 3.
103. Doctors for the Environment Australia Inc, n 89 at 3.
104. See also Caroona Action Group, n 82 at 7.
105. Doctors for the Environment Australia Inc, n 89 at 4.
106. APPEA, Submission No 447 to the General Purpose Standing Committee No 5, Inquiry into Coal Seam Gas, 14 September 2011, 12.
107. Santos, n 78 at 27.
108. See also APPEA, n 92 at 12.
109. APPEA, n 92 at 13.
110. However, note that under Pt 1 of Sch 5 of the Water Management (General) Regulation 2011 (NSW) exempts CSG operations that extract less than 3 mega litres of water per year from requiring an access licence.
111. APPEA, n 92 at 12.
112. Santos, n 78 at 26.
113. APPEA, n 92 at 12.
114. Santos, n 78 at 26.
115. APPEA, CSG Facts: Fraccing (undated), http://www.appea.com.au/images/stories/mb_files/CSG_fraccing.pdf viewed 21 February 2012.
116. Santos, n 78 at 34.
117. APPEA, n 92 at 16.
118. Pt 4A of the Petroleum (Onshore) Act 1991 (NSW).
119. NSW Farmers' Association, n 70 at 20.
120. See also Cotton Australia, n 70, p 11
121. Lock the Gate Alliance Inc, n 82 at 12-13.
122. NSW Farmers' Association, n 70 at 20.
123. Barrington-Gloucester-Stroud Preservation Alliance, n 83 at 8.
124. See also Environmental Defender's Office NSW, n 77 at 17.
125. NSW Farmers' Association, n 70 at 27.
126. APPEA, n 92 at 14.
127. APPEA, n 92 at 14.
128. Santos, n 78 at 24.
129. Australian Government, Fact Sheet: Coal Seam Gas (Geoscience Australia, 2011), http://www.australianminesatlas.gov.au/education/fact_sheets/coal_seam_gas.html viewed 21 February 2012.
130. Queensland Government, Coal Seam Gas Overview (Department of Employment, Economic Development and Innovation, 2011), http://www.mines.industry.qld.gov.au/assets/coal-pdf/new_csg_cc.pdf viewed 21 February 2012.
131. Australian Government, n 110.
132. Queensland Government, n 111.
133. "Farmers Count Cost of Coal Seam Gas Rush", ABC Southern Queensland (21 February 2011), http://www.abc.net.au/news/stories/2011/02/21/3144688.htm?site=southqld viewed 21 February 2012.
134. Burgess S, "Farmer Waits for Gas Leak Impact", ABC Southern Queensland (24 May 2011), http://www.abc.net.au/news/stories/2011/05/24/3225059.htm?site=southqld viewed 21 February 2012.
135. Queensland Government, Coal Seam Gas Water Management Policy (Department of the Environment and Resource Management, 2010), http://www.derm.qld.gov.au/environmental_management/coal-seam-gas/pdf/water-management-policy.pdf viewed 21 February 2012.
136. Queensland Government, Strategic Cropping Land: Policy and Planning Framework Discussion Paper (Department of Local Government and Planning, 2010), http://www.qff.org.au/files/_system/Document/strategic-cropping-land-discussion-paper.pdf viewed 21 February 2012.
137. Queensland Government, n 117, p 1.
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140. Queensland Government, n 120, cll 1.2, 1.5
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142. The draft SCL Policy does not apply to land identified for urban development under existing regional and local government schemes (cl 2.10(i)) and where the Minister declares a project to be a development designated as an "exceptional circumstance" if there is no alternative site and there is a significant community benefit (cl 4.10(i)).
143. Mineral Resource Act 1989 (Qld)
144. Petroleum and Gas (Production and Safety) Act 2004 (Qld)
145. Petroleum Act 1923 (Qld); Greenhouse Gas Storage Act 2009 (Qld)
146. Geothermal Exploration Act 2009 (Qld)
147. Geothermal Energy Act 2010 (Qld)
148. State Development and Public Works Organisation Act 1971 (Qld)
149. Environmental Protection Act 1994 (Qld).
150. Queensland Government, n 117, p 2.
151. See Pt 3 of the Environment Protection and Biodiversity Conservation Act 1999 (Cth).
152. Burke T (Minister for Sustainability, Environment, Water, Population and Communities), Federal Environmental Approval for Coal Seam Gas and Gladstone Projects (media release, 22 October 2011), http://www.environment.gov.au/minister/burke/2010/mr20101022.html viewed 21 February 2012.
153. Parliament of Australia, Terms of Reference: Inquiry into the Management of the Murray Darling Basin - Impact of Mining Coal Seam Gas (no longer available online).
154. Parliament of Australia, The Management of the Murray Darling Basin: Information about the Inquiry (no longer available online).
155. A copy of the Landholders' Right to Refuse (Coal Seam Gas) Bill 2011 (Cth) is available at: http://www.comlaw.gov.au/Details/C2011B00160 viewed 21 February 2012.
156. Drape T, "Greens Defiant as CSG Bill Faces Defeat", Sydney Morning Herald (22 September 2011), http://www.news.smh.com.au/breaking-news-national/greens-defiant-as-csg-bill-faces-defeat-20110922-1kmd9.html viewed 21 Febru-ary 2012.
157. Drape, n 130.
158. Windsor T (MP), Windsor Introduces Legislation to Protect Valuable Water Resources from Mining (media release, 12 September 2011), http://www.tonywindsor.com.au/releases/110912.pdf viewed 21 February 2012.
159. Environment Protection and Biodiversity Conservation Amendment (Mining, Petroleum and Water Resources) Bill 2011 (Cth), ss 24D, 24G.
160. Environment Protection and Biodiversity Conservation Amendment (Mining, Petroleum and Water Resources) Bill 2011 (Cth), s 43AC.
161. Environment Protection and Biodiversity Conservation Amendment (Mining, Petroleum and Water Resources) Bill 2011 (Cth), s 43AB.
162. Macintosh A, "Why the Environment Protection and Biodiversity Conservation Act's Referral, Assessment and Approval Process is Failing to Achieve its Environmental Objectives" (2004) 21 EPLJ 288.
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165. A copy of the Points of Claim filed by the Alliance is available at: http://www.edo.org.au/edonsw/site/pdf/casesum/110705bgspa_points_of_claim.pdf viewed 21 February 2012.
166. Scoins D, "Treading Cautiously: How the NSW Judiciary Appear Reluctant to Apply the Precautionary Principle" (2011) 91 Impact! 19.
167. Wood L and Fitzgerald B, "Class Actions Shake BHP", The Age (25 May 2011), http://www.theage.com.au/business/class-actions-shake-bhp-20110524-1f2gk.html viewed 21 February 2012.
168. NSW Liberals and Nationals, Strategic Regional Land Use: Triple Bottom Line Assessment to Protect our Regions (undated), http://www.grip.org.au/documents/doc-47-strategic-regional-land-use-policy---document.pdf viewed 21 February 2012.
169. New South Wales Government, Strategic Regional Land Use (Department of Planning and Infrastructure, 2012), http://www.planning.nsw.gov.au/StrategicPlanning/StrategicRegionalLandUse/tabid/495/language/en-AU/Default.aspx viewed 21 February 2012.
170. New South Wales Government, n 142.
171. Nicholls S, "Farm Gate Open to Give Miners Access", Sydney Morning Herald (15 October 2011), http://www.smh.com.au/environment/conservation/farm-gate-open-to-give-miners-access-20111014-1lpad.html viewed 21 February 2012.
172. Nicholls, n 144.
173. Hatcher C (MP), NSW Government has Listened and Acted: Tough New Conditions for Coal and Coal Seam Gas (media release, 21 July 2011), http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0003/400728/Minister-Hartcher-med-rel-end-of-moratorium.pdf viewed 21 February 2012.
174. New South Wales Government, Fact Sheet: Strategic Regional Land Use: A New Approach to Planning for Resources and our Regions (Department of Planning, 2011), http://www.planning.nsw.gov.au/LinkClick.aspx?fileticket=XPoP4ONwJQw%3D&tabid=495&language=en-AU viewed 21 February 2012.
175. A copy of the Coal Seam Gas Moratorium Bill 2011 (NSW) is available at: http://www.parliament.nsw.gov.au/prod/parlment/nswbills.nsf/1d4800a7a88cc2abca256e9800121f01/f4ce08eeb343a54cca25788b00242fd6/$FILE/b2011-054-d20-House.pdf viewed 21 February 2012.
176. Rural Affairs and Transport References Committee, Parliament of Australia, Interim Report: The Impact of Mining Coal Seam Gas on the Management of the Murray Darling Basin (30 November 2011).
177. Cubby B, "Arsenic and Lead Found in Contaminated Water Leak at Coal Seam Gas Drill Site", Sydney Morning Herald (10 February 2012), http://www.smh.com.au/environment/water-issues/arsenic-and-lead-found-in-contaminated-water-leak-at-coal-seam-gas-drill-site-20120209-1rx7s.html viewed 21 February 2012.
178. Santos, Report into Eastern Star Gas Limited Prepared for Government of New South Wales (22 February 2012), http://www.santos.com/library/120222_Report_into_ESG_operations.pdf viewed 26 February 2012.