Coal Seam Gas

VPELA Forum16 April 2013

Pierre AndipatinEarth Resources Development Division

Agenda

• Gas in Victoria

• Current Regulatory Framework

• National Initiatives – National Partnership Agreement

– National Harmonised Regulatory Framework

– Multiple Land Use Framework

– EPBC amendments

Why does Victoria need gas?• Secure and affordable gas is important for the community

and industry and for a low emissions energy future

• Natural gas is a cheap, reliable and safe source of energy

• Electricity produced from natural gas has lower carbon dioxide emissions than coal

• The consumption of gas in Victoria is expected to double by 2030

• Victoria may need to source gas from other states, if demand can’t be met

The current focus in Victoria is understanding the potential for unconventional gas (tight/shale and coal seam gas)

Gas in VictoriaWithout significant additional gas demand exceeds supply from 2017

Demand

What are the options?

Agenda

• Gas in Victoria

• Current Regulatory Framework

• National Initiatives – National Partnership Agreement

– National Harmonised Regulatory Framework

– Multiple Land Use Framework

– EPBC amendments

Current framework for CSGGeneral

prohibitions against pollution

(EP Act, Water Act)

State Environment Protection

Policies

Well integrity & fraccingEnviro & water management on

site/at surface Land access, consent, compensation

(Mineral Resources (Sustainable Development) Act 1990)

Licensing of dam and

bore construction (Water Act)

Licensing of emmissions

and discharges

(EP Act)

Licensing of water extraction

(Water Act)

Native titleNative vegetation

Heritage (Aboriginal & European)

Environment Effects Statement (EE Act)

Planning approvals (P&E Act)

Science work

- IESC Bioregional

Assessments- IESC strategic

projects- National

reference group- Victorian

scientific work

Exploration Activities

Low Impact Exploration

Ground Disturbing Exploration

Use of ‘non-mechanical’ hand tools:

• e.g. rock chip sampling

Surface / underground mapping

Drilling

Flow testing

Office studies

Geological & Geochemical sampling

Work Plan Required

CSG Production • Commercial production

• Large number of wells. • Pipelines & other infrastructure• Wells operate for 10 to 20 years

• Rehabilitation• Upon completion wells are

plugged with concrete and abandoned

• Infrastructure is removed • Land is returned to original or

agreed state

Recent Victorian CSG response The Government announced reforms in August 2012 to current policy for onshore gas exploration:

• Hold on approvals to undertake hydraulic fracturing ('fraccing')

• Hold on the issuing of new exploration licenses for CSG

• Ban on the use of BTEX chemicals in hydraulic fracturing

• Strengthen resource policy and legislation to ensure better consideration of mixed land use issues

• Use of impact statements at the exploration stage where there is potential for a significant impact on the environment

Land Use

Coexistence between

Agriculture and Mining

Prior to commencing work, a licensee must:

• Obtain landowner consent (informed verbal or written), or

• Make and register a compensation agreement

• For exploration impact statements are required

Water• Allocation/cap

• Water management at surface

• Connectivity between aquifers (scientific understanding)

• Chemical contamination

Hydraulic Fracturing

• Injecting a mix of water, sand & chemicals to create a fracture to allow gas to flow

• Commonly used technique in Oil & Gas sector

• BTEX Chemicals banned and hold on approvals in place

Environmental Impacts

• Essential to consider & understand any environmental impacts

• Bioregional Assessments

• EES

Engagement & Consultation• Fact Sheets

• Briefings to Key Stakeholders (eg. Local Government)

• Community Information Sessions

• Earth Resources Ministerial Advisory Council

We are committed to ensuring that our community and stakeholders are informed and engaged in the conversation regarding Coal Seam Gas.

Agenda

• Gas in Victoria

• Current Regulatory Framework

• National Initiatives • National Partnership Agreement

• National Harmonised Regulatory Framework

• Multiple Land Use Framework

• EPBC amendments

National Initiatives • National Partnership Agreement

• Independent Expert Scientific Committee

• $10.13M Funding

• National Harmonisation Framework

• A regulatory guidance document

• Consultation Dec ‘12 – Feb ‘13

• Expected to be presented to SCER Ministers mid ‘13

• Multiple Land-Use Framework

• Sets out best practice multiple land use principles

• In further development in consultation with land use, regional and planning agencies

• EPBC Amendments

National Partnership Agreement

Improved scientific knowledge to inform decision makers

• Bioregional assessments • Strategic projects• National reference group• Project level referrals to IESC• Funding for Victorian specific scientific work

National Harmonised Regulatory FrameworkRegulatory guidance document

Key areas of community and scientific concern:

18 leading practices / 19 outcomes

Multiple Land Use Framework

Developed by SCER (energy and resource Ministers)

Aims to ensure multiple / sequential land use is part of dialogue / toolbox for decision makers when considering resource development

Contains best practice principles for land use

EPBC Act amendments

Makes water a MNES and projects subject to assessment against controlled action criteria / requirements

Provides an additional layer of environmental assessment and approval

Duplication of existing processes?

Summary

• Gas is important for meeting Victoria’s energy demand

• CSG is one possible source of gas for Victoria’s future

• CSG has numerous issues which government is considering

• A range of national initiatives are supporting improved understanding of water resources and best practice regulation

Thank you

www.dpi.vic.gov.au/earth-resources