The Northern Territory government has lifted a near two-year moratorium on hydraulic fracturing in the Australian state, barely three weeks after a scientific report gave the technology the all clear and said it could be performed safely if regulated responsibly.
Northern Territory Chief Minister, Michael Gunner, made the surprise announcement, saying that he had taken his cue from the recent review, led by Justice Rachel Pepper from the Land and Environmental Court of New South Wales, that hydraulic fracturing could be done safely. Pepper’s reported listed 135 recommendations to mitigate risks associated with onshore shale drilling.
Mr Gunner said his government hoped to expedite exploration activities, subscribing to a 30-point framework, for the next drilling season starting in April next year.
“We promised an independent, scientific inquiry after which we would either ban fracking or allow it in highly regulated circumstances in tightly prescribed areas,” Mr Gunner said.
“We have kept our promise. We have accepted the key finding of the report – that if all the recommendations are implemented the risk from fracking can be reduced to an acceptable level.”
The Australian Petroleum Production & Exploration Association (APPEA) welcomed the announcement and said the decision would help create thousands of jobs in the Territory, billions of dollars of government revenue and the delivery of much-needed energy supply for Australia and the NT.
APPEA NT Director Matthew Doman embraced the decision to support development of the NT’s abundant gas resources – estimated at up to 260Tcf by Santos chief executive Tom Gallagher – but warned that the manner and timeframe in which it implemented the Inquiry’s 135 recommendations would be critical in determining the commercial viability of the industry.
In particular, government’s 30 recommendations brought into effect before exploration activity can resume would be critical, APPEA said.
“If they (30 key recommendations) are to be implemented they must be addressed within the next six months to ensure the industry can be on the ground exploring in the 2019 dry season,” Mr Doman said.
“Businesses, contractors and workers in the Territory are counting on the quick ramp up of the gas industry to get the Territory moving again. Explorers are ready to resume their activities as soon as the Government gives the green light.
“As soon we can get back to work, we will again employ local people, engage local companies and resume royalty payments to host Traditional Owners. Our exploration activity will build our knowledge of the gas resources, groundwater and the environment that contains them — and enable informed decisions about future development.
“APPEA’s member companies stand ready to invest billions of dollars in new projects in the Territory. We are determined to do this in a safe and sustainable manner, and to generate real benefits for all Territorians.”
