7
BACKGROUND BRIEFING MINING AND COAL SEAM GAS NOVEMBER 2012
BACKGROUND BRIEFINGMINING AND COAL SEAM GAS
NOVEMBER 2012
WHAT IS MINING AND COAL SEAM GAS?Mining has been part of Australia’s economy since the discovery of coal depositsat Coal Cliffs, near Newcastle in 1791. Australia has recently experienced anothermining boom leading to the development of large mining communities across thecountry including Emerald and Dalby in Queensland and the Hunter Valley andLiverpool Plains in NSW. The expansion of this industry has created land-useconflicts between Australia’s resource and agricultural sectors.
The development of the coal seam gas (CSG) industry has boomed since theearly 21st Century. CSG is a by-product of coal that occurs naturally through theprocess of coal formation where methane is formed and remains trapped in thecoal in areas known as coal ‘seams’ or ‘cleats’. The gas is trapped in coal seamsby water in underground aquifers. CSG is extracted by dropping the pressure inthe seam and capturing the gas whilst removing the water. The remainingextracted water is known as associated water or produced water.
The growth of CSG in both NSW and QLD has become a concern for the cottonindustry, specifically with regards to water quality and quantity issues and landuse conflicts associated with both exploration and production.
Cotton Australia's CSG Policy Officer on “Arcturus Downs” Central Queensland with Lizzie Bradford, a grower in the ‘golden triangle’ who’s very active on the issue
MINING AND CSG OVERVIEWKey Issues: EnvironmentThe land use conflict between agriculture and mining and CSGhas created a variety of issues for the cotton industry, with acentral concern being the impact on water quantity and quality.
The extraction of water during CSG production depressurisesaquifers and consequently puts our water resources at risk.Despite the energy sector’s assurances that water quality andquantity is protected during the process, the cotton industryremains largely unconvinced. Independent peer reviewedscience is required to provide confidence that CSG operationswill not jeopardise the sustainability and productivity of thecotton industry.
The associated water from extraction is generally saline with avariety of mineral qualities that aren’t conducive to domestic oragricultural purposes. As such, there is divided opinion as to howassociated water should be managed, whether it can be put to“beneficial use” and if so what those beneficial uses may be.
Mining methods can also potentially affect underground aquifer systems and there are documented examples ofcontamination of waterways stemming from mining activities.The addition of this new industry also adds pressure to allocatedwater resources.
Key Issues: CommunityBoth Mining and CSG activities create visual amenity impacts(i.e. they look bad) and there is growing concern over the socio-economic impact of these operations with the influx ofmining company employees changing community character anddriving up prices for goods and services e.g. accommodation.There is also widespread concern regarding the cumulativeimpacts of mining projects on a regional space.
The health impacts of mining is a growing issue, with keyconcerns including exposure to dust from open cut mining,fugitive emissions, deteriorating water quality, and generalcontamination issues.
Key Issues: Land AccessLand Access and coexistence with mining and CSG is a key issue for many cotton growers, particularly access to fairand equitable land access arrangements that encompassfarmers’ concerns:
* location of wells on cropping land
* consistency of operations with farm management plans
* biosecurity concerns
* impacts from mining employees accessing farms
* negotiation inequity and access to fair compensation
*Please note this list is not exhaustive.
Diagram courtesy of Science Media Centre
LEGISLATIVE AND POLICYFRAMEWORKNEW SOUTH WALESThe regulation of mining and CSG in New South Wales isextremely complex. Key legislation includes:
* Environmental Planning and Assessment Act 1979 (NSW)
* Mining Act 1992 (NSW) and Mining Regulation 2003 (NSW)
* Petroleum(Onshore) Act 1991 (NSW)
* State Environmental Planning Policy (State and RegionalDevelopment) 2011
* State Environmental Planning Policy (Mining, PetroleumProduction and Extractive Industries) 2007.
Approval for mining or CSG projects requires a planning approvalunder the Environmental Planning and Assessment Act 1979(NSW). The majority of these applications will qualify as statesignificant development under State Environmental PlanningPolicy (State and Regional Development) 2011. In addition, a resource authority to prospect or mine will be needed underthe Mining Act 1992 (NSW) for mining projects, or the Petroleum(Onshore) Act 1991 (NSW) for Coal Seam Gas Projects.
The NSW government has announced a review of the entireplanning system for mining and CSG, including:
* Review of the General Planning System (for furtherinformation please see http://planningreview.nsw.gov.au/)
* Development of Strategic Regional Land Use Plans(SRLUPS) that include an Aquifer interference Policy, theappointment of a Land and Water Commissioner andRegional Community Funds. Plans and mapping has beenreleased for the Upper Hunter and the NewEngland/Northwest Regions. The Central West, SouthernHighlands, Western, Murrumbidgee and Alpine plans are duein the coming months.
Cotton Australia notes a number of inadequacies of the current regime:
* Downgrading of the Gateway Approval Process powerswhich effectively do not allow the Gateway to refuse projects(as promised by the O’Farrell government)
* The Aquifer Interference Policy has been downgraded from a regulation status which undermines the effectiveness andlegal force behind it
* Current mapping of Prime Agricultural Land in the SRLUP forNew England/Northwest region does not include all cottongrowing land
* The Land and Water Commissioners’ powers currently don’thave sufficient legal power to work on land access issues.
QUEENSLANDThe framework in Queensland is equally as complex. Corelegislation includes:
* Environment Protection Act 1984 (QLD)
* Mineral Resources Act 1989 (QLD)
* Petroleum and Gas (Production and Safety) Act 2004 (QLD)
* Strategic Cropping Land Act 2011 (QLD)
A mining company must apply for and successfully obtain both a mining lease under the Mineral Resources Act 1989 (QLD)and an environmental authority (containing the environmentalconditions) under the Environmental Protection Act 1989 (QLD).The company must publicly notify the application and thecommunity can object on a variety of grounds including any type of public interest matter or social, economic orecological matters.
To lawfully extract coal seam gas, a resource company mustapply for and successfully obtain both a resource authority underthe Petroleum and Gas (Production and Safety) Act 2004 (QLD)and an environmental authority (containing the environmentalconditions) under the Environmental Protection Act 1994 (QLD).Other permits may also be needed.
Coal Seam Gas has seen unlikely alliances formed between the Greens, community and agriculture
Coal Seam Gas has seen unlikely alliances formed between the Greens, community and agriculture
LEGISLATIVE AND POLICY FRAMEWORK (cont)GCOMMONWEALTHAt Federal level, all activities that affect matters of nationalenvironmental significance are regulated by the EnvironmentProtection Biodiversity Conservation Act 1999 (Cth). Anyproject affecting Matters of National EnvironmentalSignificance require approval from the Federal EnvironmentMinister. This includes world heritage sites, nationally protected wetlands, nationally listed threatened species andecological communities
To determine if the Act is triggered on your property please seethe ‘Protect Matters’ search tool on the Department of Sustainability,Environment, Water, Population and Communities website at:http://www.environment.gov.au/epbc/pmst/index.html.
An Independent Expert Scientific Committee on Coal Seam Gasand Coal Mining has been established to ensure that futuredecisions about potential water-related impacts of coal seamgas and large coal mining activities are informed by substantiallyimproved science and independent expert advice. The committeehas three key roles:
* Provide advice to governments on coal seam gas and coalmining projects
* Oversee bioregional assessments in areas where coal seam gasand/or large coal mining developments are underway or planned
* Oversee research on potential water-related impacts of coalseam gas and/or large coal mining developments.
Like NSW, Queensland is also experiencing changes to itsregulatory framework:
* Commencement of two new statutory regional plans forCentral Queensland and the Darling Downs. The plans inpart and where necessary, plan for urban growth and resolveland use conflicts such as those arising between agriculturaland mining activities. (For further information please visithttp://www.dlg.qld.gov.au/regional-planning/)
* Formation of a Gasfields Commission that will aim tomanage the coexistence of rural landholders, regionalcommunities and the CSG industry
* Development of a best practice Land Access Code
* Development of a “Royalties for the Regions’ program
* Revised Draft CSG Water Management Policy has beenreleased for comment. Cotton Australia has recentlyprovided a submission to this review process.
The Surat Basin Underground Water Impact Report has beendeveloped by the Queensland Water Commission. The report showsthat at least 528 of the 21,000 registered bores in the studiedarea will experience such water loss that legal provisions for ‘makegood’ compensation will be triggered under petroleum and gaslegislation. The modelling also shows the possibility that somebores will suffer a drop of more than 500m. The Surat UWIR hasbeen been conditionally approved (For further information pleasevisit: http://www.qwc.qld.gov.au/csg/water-impact-report.html.)
On the left Stuart Hayllor and brother Ian Hayllor. Ian is a Gasfields Commissioner in Qld, member of the CA Mining and CSG Taskforce and a very involved local cotton grower
Coal seam gas well on Darling Downs
MINING AND COAL SEAM GAS POLICY OFFICER As part of Cotton Australia’s recognition and response to themining and CSG issue Sahil Prasad has been employed asMining and Coal Seam Gas Policy Officer. Sahil contributes toand facilitates Cotton Australia’s policy formulation andadvocacy in relation to mining and coal seam gas at State andFederal level. He is jointly responsible for advocating theindustry’s policy positions to government, government agencies,NGO’s and other key public stakeholders as well as supportinggrowers in dealing with these issues.
MINING AND COAL SEAM GAS ADVISORY COMMITTEECotton Australia formed its Mining and Coal Seam Gas AdvisoryCommittee in June 2012. The committee commenced its firstmeeting with a tour of the Darling Downs and discussions withseveral growers. A second meeting in the New England/NorthWest Region of NSW was used to speak to NSW growers andobtain local grower perspectives, understand health impacts ofmining and CSG in the region and aid the development ofCotton Australia’s Coal Seam Gas Policy which is in its finalstage of development. The committee will continue to developCA’s Mining Policy and act as a sounding board for local growerissues and perspectives.
LOBBYING AND ADVOCACYCotton Australia is responding to grower concerns by formallyand informally lobbying decision makers to minimise the potentialimplications of legislation and policy whilst providing advice onhow to strengthen current frameworks at State and Federal levels.For example, Cotton Australia has successfully negotiated asubstantial increase in the Biophysical Strategic AgriculturalLand Mapping in NSW and continues to work with other peakorganisations and decision makers to address the gaps in thecurrent Gateway process and Aquifer Interference Policy.
Cotton Australia is also negotiating a template access arrangementfor landholders in NSW with the Australian Petroleum ProducersAssociation (APPEA), NSW Farmers Association, NSW IrrigatorsCouncil and the Department of Trade and Investment RegionalInfrastructure and Services (DTIRIS).
In Queensland, several Cotton Australia staff and Directors sit on Statutory Regional Planning Committees, Cotton Australiahas met on a number of occasions with the newly formedGasfields Commission and has also had some dialogue withindividual mining companies.
Cotton Australia has recently written several submissionsrelating to the Mining and Coal Seam Gas Debate at State andFederal Level including:
* QLD Land Access Framework
* NSW Aquifer Interference Policy
* NSW Planning Review
* Role of Regional Funding Models in NSW
* Surat Underground Water Impact Report
* Arrow Energy Environmental Impact Statement
* Just Terms Compensation Legislation NSW
* Draft Strategic Regional Land Use Plans
* Strategic Cropping Land Bill.
HOW IS COTTON AUSTRALIA ADDRESSING THIS ISSUE?
WHAT CAN YOU DO ABOUT IT? There are a number of avenues for cotton growerswho wish to participate in this debate:
> Contact your Cotton Australia Regional Manager
> Contact Cotton Australia’s Mining and Coal SeamGas Policy Officer – Sahil Prasad
> Raise the issue at your next Cotton GrowerAssociation Meeting
> Keep an eye out in your local or state newspaper forany advertisements for a mining or CSG project andwrite a submission.
RESOURCES> The Environmental Defenders Office NSW is set to
release a new free book entitled “Mining and the Law” for rural landholders
> The EDO NSW also operates a free legal advice line duringbusiness hours. For further information or to order the bookplease email [email protected]
> The EDO QLD is preparing a similar publication. For further information please seehttp://www.csgmininghandbook.com/.
> Both organisations are available for booking free legalseminars, for more information please see their individualwebsites (in the useful links section).
> Legal Aid Toowoomba has provided a solicitor for legalinquires related to Mining and Coal Seam Gas. For further information please call: 1300-651-188.
F O R M O R E I N F O R M AT I O N
www.cottonaustralia.com.auPhone: 02 9669 5222 · Fax: 02 9669 5511 · Email: [email protected]: www.facebook.com/cottonaustralia · Twitter: Follow us @cottonaustralia
9247
766
7
WHAT’S NEXT?Cotton Australia is continuing to work to support growers onthis important issue as well as applying pressure togovernments. Key areas of work in the near future are:
• Distribute Cotton Australia's recently endorsed Coal SeamGas Extraction Policy
• Finalise Cotton Australia’s Coal Seam Gas and Mining Policyposition
• Lobby to refine elements of the current Strategic RegionalLand Use Plans including the controversial gateway processand status of the Aquifer Interference Policy in NSW
• Continue development of a Land Access template forPetroleum Activities which will be a valuable resource forNSW growers
• Contribute throughout the proposed NSW Planning reviewprocess
• Continue writing submissions as appropriate
• Work closely on the development of Statutory Regional Plansfor Central Queensland and the Darling Downs
• Work to ensure the powers of the recently establishedGasfields Commission are reasonable and necessary
• Discuss landholder concerns with major gas companies (e.g. Arrow Energy, Santos, Queensland Gas Company)
USEFUL LINKS AND FURTHER INFORMATION• Cotton Australia- http://cottonaustralia.com.au/
• NSW Department of Planning- http://www.planning.nsw.gov.au/
• NSW Department of Primary Industries (Minerals andResources)- http://www.resources.nsw.gov.au/
• NSW Department of Primary Industries- TasMaps-http://www.resources.nsw.gov.au/titles/online-services/tasmap
• NSW Planning Review- http://planningreview.nsw.gov.au/
• NSW Environmental Defenders Office-http://www.edo.org.au/edonsw/
• QLD Department of Natural Resources and Mines-http://www.derm.qld.gov.au/
• QLD Department of Natural Resources and Mines- InteractiveResource Tenements Map- http://mines.industry.qld.gov.au/geoscience/interactive-resource-tenure-maps.htm
• QLD Department of State Development, Infrastructure andPlanning- http://www.dsdip.qld.gov.au/
• QLD Gasfields Commission-http://www.gasfieldscommissionqld.org.au/gasfields
• QLD Environmental Defenders Office-http://www.edo.org.au/edoqld/
• QLD Landholder information website–http://mines.industry.qld.gov.au/mining/landholder-information.htm
• QLD The CSG/LNG Hotline on 13 25 23 or visitwww.lng.industry.qld.gov.au
• Federal Interim Independent Expert Scientific Committee onCoal Seam Gas and Coal Mining-http://www.environment.gov.au/coal-seam-gas-mining/index.html
Cotton Australia's Mining and CSG AdvisoryCommittee touring the Darling Downs
