Lift fracking ban
THE path forward for the Gunner Government on the issue of hydraulic fracturing is a lot easier if they approach it in a pragmatic way rather than their current manner.
It will also be a lot better for the Territory economy and therefore Territorians.
Chief Minister Michael Gunner is on holidays at the moment taking his total annual leave for the 12 months to seven and a half weeks. He had four weeks at the start of the year and now three weeks to celebrate his marriage. No one begrudges the time off but it hasn’t gone unnoticed by industry while grumbling about the state of the economy.
It is obvious to all there is a leadership and decision making vacuum at present which has to be plugged.
His return in January and that of his chief of staff Alf Leonardi which the NT News identified as the most powerful person in a list of 120 is an opportunity to do what we all voted them to do — lead.
The release of the final draft report of the independent inquiry into hydraulic fracturing gives the government enough to lift the moratorium on fracking as it applies to exploration and start the ball rolling on developing shale onshore gas without jeopardising the final report, its standing or his election commitments.
Exploration is the key to unlocking the real potential of the industry. Hydraulic fracturing features in exploration and hundreds of millions of dollars was shelved the moment Territory Labor announced it as its policy and then subsequently enacted it.
No oil and gas company was going to start serious exploration if they were forced — midstream — to stop with the potential they may never be able to finish.
Remember the moratorium was a reaction to the efforts of southern lobbyists and activists whose primary interest is disruption and not the Territory.
Lock the Gate has been exceptional in scaring Territorians, as they have in other jurisdictions as well, presenting themselves as a community based group when really they are slick, well-funded, professional campaigners leveraging fear of the unknown to fulfil their agendas. The draft final report dealt with the issue of risk, one of the phrases used by the anti-fracking fraternity designed to engender fear this way:
“What this report does is provide recommendations to mitigate to acceptable levels the identified risks associated with any onshore shale gas development in the NT if the moratorium is lifted.
“These risks have been analysed having regard to the current available scientific evidence, which includes the evidence received during the consultation process.
“Where insufficient data exists to analyse those risks or to recommend appropriate miti- gation measures, the panel has had no hesitation in stating this and in recommending that this information be obtained.
“The overall conclusion of the report is that risk is inherent in all development and that an onshore shale gas industry is no exception.
“However, if the recommendations made in this draft report are adopted and implemented in full, those risks may be mitigated or reduced — and in many cases eliminated alto- gether — to acceptable levels having regard to the totality of the evidence.”
And then further in, the draft report had this to say:
“Based on the evidence from the US, the panel finds that there is significant potential for accidental releases, leaks and spills of hydraulic fracturing chemicals and fluids, flowback and produced water.
“However, while there have been more than one million fracture stimulations (fracturing) treatments in North America and more than 1300 in South Australia’s Cooper Basin, there has been no reported evidence of fracturing fluid moving from the fractures to near surface aquifers.” That’s a pretty solid statement from Justice Pepper and her panel who have demonstrated they are not swayed by much, let alone emotion.
The panel went on to make 120 recommendations. Most are targeted at production including baseline studies which is why I again say the lifting of the moratorium as it relates to exploration is both critical and beneficial.
Should the Gunner Government allow exploration with fracking to start in January 2018 then more than $500 million of private investment is back on the table. Pangaea Resources ($152 million), Origin Energy ($162 million) and Hancock Prospecting ($200 million) have said they will spend those exploration dollars.
A $500 million private investment injection with three companies and there are another three who will more than likely expend millions more.
The flow on to business will be substantial as they source the materials and expertise locally and we haven’t even got to production. We must also not forget landholders and traditional owners who allow access will be compensated with royalties. Some negotiated those accesses before the moratorium came into place just for exploration but have missed out on the revenue due to the ban.
But the importance of exploration means other aspects of the Pepper Inquiry’s recommendations can then be fleshed out.
The panel has found that the present financial assurance system in the NT is “inadequate and opaque”. The panel has proposed that the Government develop a leading practice financial assurance regime, that comprises trans-
“The government needs to lift its head out of the sand and the ban on fracking with it”