Inquiry backs fracking

THE Northern Territory Government will soon make a decision on whether to lift a moratorium on hydraulic fracking, following the release of a 15-month independent inquiry that determined risks can be managed through effective regulation. Hydraulic fracking — which is currently prohibited in Victoria and the subject of a moratorium in Tasmania, NSW and WA — has been an issue of contention in the NT for some time, with the last three Governments commissioning reviews and inquiries into the matter. In September 2016, Northern Territory chief minister Michael Gunner introduced a moratorium on fracking and appointed the independent inquiry, led by NSW Land and Environment Court judge Justice Rachel Pepper. Justice Pepper said the report put forward 135 recommendations to mitigate identified risks if the Government lifts the moratorium. “No industry is without risk, and any onshore shale gas industry is no exception, however, it is the panel’s opinion that if all of the recommendations are implemented, the identified risks associated with any onshore shale gas industry can be mitigated or reduced to an acceptable level, and in some cases, the risks can be eliminated,” Justice Pepper said. “The decision whether or not to retain the ban on hydraulic fracturing in the Northern Territory is a political decision that rests with the Government alone.” Justice Pepper said the inquiry’s scope was much broader than previous reports, and included 52 community forums, 151 public hearings, 31 community updates and 1257 written submissions. Mr Gunner said the Government will now “carefully consider the report’s recommendations and take as long as is needed to make the right decision” for the Territory. “Once the final report has been carefully considered we will do what we have always promised Territorians - either ban fracking in the Northern Territory or allow it in highly regulated circumstances in tightly prescribed areas,” Mr Gunner said. “We will not put at risk existing fishing, farming, tourism and cattle jobs for the possibility of jobs from fracking.” Australian Petroleum Production & Exploration Association (APPEA) Northern Territory director Matthew Doman said the final report “debunked many of the myths spread by activists opposed to onshore gas development”. “There is no reason the Territory cannot manage the safe, sustainable development of its considerable natural gas resources,” Mr Doman said. “APPEA’S member companies stand ready to invest billions of dollars in new projects in the Territory if the industry is allowed to resume exploration activity.” Jemena, was one of the companies ready to push forward new developments in the Territory. In a February submission to the Fracking Inquiry, Jemena executive general manager corporate development Antoon Boey said the company had already invested significantly in its Northern Gas Pipeline (NGP) under construction, but was prepared to “invest significantly more capital” in extending and expanding the NGP if onshore gas can be commercialised. “The project is estimated to cost around $3-4 billion and could create around 4000 new jobs across Northern Australia,” Mr Boey said. “Any delay to progressing the exploration of [the Territory’s] onshore gas resources increases the risk that the NT will be unable to capitalise on the need for new gas supply in the east coast market.”

“The decision whether or not to retain the ban on hydraulic fracturing in the Northern Territory is a political decision that rests with the Government alone.”

Image: APPEA.