One stop shop for Environmental Approvals

Environment Ministers sign a Draft MOU

The Queensland and Federal Governments have signed a Draft memorandum of understanding (MOU) giving the state more powers to conduct environmental assessments and approvals for major projects.

In March 2013, a senate committee (under the former Labor Government) confirmed the Federal Department of Environment was backing away from handing over responsibilities for biodiversity approvals to the States.

The Draft MOU (which has not been publically released) addresses ''the key principles of maintaining environmental standards, streamlining processes, the removal of duplication and the offer of federal staff to be embedded with the state if required''.

The Draft MOU is being review by Prime Minister Tony Abbott for approval and the changes will need to be passed through Federal Parliament and the Senate. The aim is to achieve a one-stop shop to reduce red tape and provide certainty to business while maintaining the rigorous federal environmental standards.

This would include:

·           Creation of a single approvals process for environmental assessment and approvals under the Environmental Protection and Biodiversity Conservation Act via the state system, as part of long-term agreements with each state and territory.

·           Development of the ability and incentive for local government to be part of the one-stop-shop single assessment process.

·           Creation of a single lodgement and documentation process. The single documentation and assessment process could also be expanded to make a single entry point and one-stop-shop for all government approvals across portfolios.

State Environment Minister Andrew Powell says there will be less duplication and quicker decisions - but Commonwealth oversight will not disappear.

Some of the things proposed include embedding Commonwealth officers into the Qld Co-ordinator General's Department.

Approval Processes for Coal and Mineral Exploration

There have been recent changes to the approvals process for coal and mineral exploration allowing for earlier engagement and faster approvals.

Minister for Natural Resources and Mines Andrew Cripps said the new process had the potential to halve the time taken for companies to be granted exploration permits, while maintaining rigorous environmental, native title and land access assessments.

Mining companies no longer need to wait until an exploration permit is granted before engaging with landholders about their proposed exploration activities.

Exploration activities still cannot begin in an area prior to a permit being granted.

Applications to explore will still be subject to the same stringent assessment process to ensure they meet strict environmental, technical and commercial viability, community interest, native title and land access requirements.

A granted exploration permit is not a right to mine, and the Queensland Resources Council estimates that approximately only one in every 200 granted exploration permits ever goes on to become a mine.

Under the new process:

·       companies will now be formally advised within 90 days of lodgement whether their proposed exploration works program for a project has been approved or rejected.

·       For successful applications not subject to native title, once a work program has been approved and an environmental authority has been issued, a permit can be granted after annual rent has been paid.

·       For applications subject to native title, it means companies can start required native title processes and engage landholders about conduct and compensation arrangements a lot sooner.

·       These permit applications can then be finalised within 30 days of the native title process being concluded.

More information about exploration in Qld is available at www.dnrm.qld.gov.au or at www.mines.industry.qld.gov.au

Fees for Petroleum and Gas

In another example of the Qld Government’s approach to regulation and fees: The Qld Government will amend the Petroleum and Gas (Production and Safety) Regulation 2004.

Key changes include:

·       Replacement of the requirement for industry to report quarterly with a new annual reporting requirement

·       A capping mechanism for upstream operators to ensure revenue collected from some fee categories is not in excess of the calculated costs to conduct compliance activities

·       Amending the Category 10 fee to three-tiers and applied based on the size of the LPG delivery network. Small and medium sized operators will have a flat fee relative to their size and larger operators will remain at a fee per unit basis with a maximum charge retained

·       Abolition of the Category 9 fee category for the LPG delivery network

·       Removal of the fee for biogas users and exemptions for some biogas producers

More information is available at: www.mines.industry.qld.gov.au/safety-and-health/petroleum-gas-safety-health-fee.htm

oil and gas Safety and Health Fee

I note a trend in State Governments where administrative costs are extracted from the industry sectors they oversee.

I am interested in your views on the changes in the oil and gas industry with the new fee structure.  What are the implications for your industry?

Will the proposed changes make environmental compliance simpler? Will fees provide a stable funding base to deliver critical safety and health functions?

The Petroleum and Gas Safety and Health Fee was introduced on 1 July 2010.

The fee system was designed to cover the cost of the State Government’s activities carried out for the purpose of safety and health for petroleum and gas operations in Qld.

There was a revision of the way the Petroleum and Gas Inspectorate was funded.

Since then, there has been a restructure the State Government departments.  Depending on where one is operating and what one is doing, Petroleum and Gas operators will also be subject to laws for:

·        environmental protection,

·        land protection,

·        native title,

·        strategic cropping land.

A discussion paper was circulated to stakeholders in early 2012 to allow industry to provide comment on whether there were any unintended overlaps in the fees, whether the fee system covered all industry sectors effectively and whether the fees could be more efficiently applied or administered. As a result of that consultation it is proposed to further amend the fee system.

The unprecedented growth in the size and complexity of Qld's onshore petroleum industry required the regulator to extend its regulatory operation to keep pace.

Now, Industry is encouraged to provide comment on a discussion paper, ‘Petroleum and Gas Safety and Health Fee - Post Implementation Review and Regulatory Impact Statement.’

The consultation process is being used to assess the impacts of recommended amendments to regulations for the Petroleum and Gas Safety and Health Fee.  The adjustments to the Petroleum and Gas Safety and Health Fee were designed to better reflect the range and level of compliance checks required for various industry activities.

The Department of Natural Resources and Mines inspectorate carries out audits, inspections and investigations of petroleum exploration and production, pipelines, automotive LPG, gas users, and licensing for the installation and servicing of domestic, commercial and industrial gas devices. The following permits are governed by the Petroleum and Gas (Production and Safety) Act 2004 and Petroleum and Gas (Production and Safety) Regulation 2004:

·        authority to prospect,

·     petroleum lease (this lease is also governed by the Petroleum Act 1923 and Petroleum Regulation 2004),

·        petroleum potential commercial area,

·        petroleum survey licence,

·        petroleum pipeline licence,

·        petroleum facility licence,

·        data acquisition authority,

·        water monitoring authority.

So why has such new fees been introduced?  In brief: to cover revenue and allocation shortfalls.  The downside in this approach is if that industry sector shrinks, will the scale of the administration also shrink too?

The Petroleum and Gas Safety and Health Fee is expected to raise about $7.1 million next financial year.

The Qld Government’s proposed fee restructure aims to recover costs in proportion to the supervision & intervention required by the inspectorate in areas such as exploration, production and distribution. 

The fee restructure also aims to assist the industry to cover the full cost of running the specialist inspectorate as the Qld Government attempts to reduce the industry’s compliance costs.

The fee goes towards the employment of additional inspectors, continuous staff training and administration of the compliance services.

Inspectors conducted almost 3,500 audits and inspections last financial year.  Petroleum and gas inspectors investigated almost 530 accidents and incidents in 2011-12, involving more than 50 injuries but no fatalities.

Proposed measures include annual returns instead of quarterly reports and a better explanation of the 15 fee categories used to determine companies’ fees.

These changes are based on feedback to the Qld Government through consultation with industry operators.

For more information visit the Department of Natural Resources and Mines website

Bowen CSG pipeline project EIS receives approval

Media Statements

Minister for Environment and Heritage Protection
The Honourable Andrew Powell

Monday, March 25, 2013

Bowen pipeline project EIS receives approval

A proposed billion dollar coal seam gas pipeline has been given the go-ahead by the Department of Environment and Heritage Protection (EHP).

Minister for Environment and Heritage Protection Andrew Powell said the department had completed its assessment of the Environmental Impact Statement (EIS) for the Arrow Energy Bowen Pipeline Project.

“The project would involve the construction and operation of a 580 kilometre high-pressure gas pipeline to deliver coal seam gas from gas fields in the Bowen Basin to a proposed LNG plant at Gladstone,” Mr Powell said.

“The department considered the EIS documentation, as well as public submissions, before deciding it was satisfied the environmental impacts of the pipeline would not be unacceptable.

“The buried pipeline route would cross private land, roads, railway lines, watercourses and wetlands. 

“Arrow Energy has outlined a range of practices in the EIS to ensure that activities conducted across various types of terrain and land uses would deliver an acceptable environmental outcome.

“The pipeline will also require an Environmental Authority from the department which will set out enforceable environmental performance requirements during the construction and operation of the pipeline.

“These conditions would ensure commitments made in the EIS are fully implemented.” 

Mr Powell said the pipeline would involve a capital investment of approximately $1 billion and generate around 700 new jobs.

“Over the past twelve months we have consistently said we would work with industry to deliver sustainable economic development while upholding strong environmental standards and this project is a great example of that,” he said.

“While the EIS process is now finalised, Arrow Energy will need to obtain some final approvals from EHP and other government agencies. This project will also require Federal Government approval before construction can commence.”

“The Newman Government is confident we can work with industry to deliver positive economic outcomes for Queensland while protecting our environment.”

[ENDS] 25 March 2013

Media contact: Brooke Hargraves 0458 689 043

cuts to Qld energy sector red tape

I find it curious that the Qld State Government is using the introduction of the carbon tax as the justification for removing funding for renewable energy, gas and energy efficiency programs etc.....

....when the Federal opposition is adamant that it will remove the carbon tax:

Read the following statement from the Member for Caloundra:

Minister for Energy and Water Supply
The Honourable Mark McArdle

Friday, March 08, 2013

Further cuts to Queensland energy sector red tape

The Newman Government continues to cut red tape from the State’s energy sector, including closing a program which forces businesses to report their electricity use to government.

Energy Minister Mark McArdle said the State Government was closing  the Queensland Gas Scheme and the Smart Energy Savings Program (SESP) and repealing standards for new coal-fired power stations.

“These schemes, introduced by the previous State Government, have largely achieved what they set out to do and are no longer required,” Mr McArdle said.

“The Queensland Gas Scheme requires electricity retailers to source 15 per cent of their electricity from Gas Fired Generators, to encourage investment in gas fired electricity generation and boost gas production across the state.

“The scheme has served its purpose, with nearly 20 per cent of electricity currently being sourced from gas generators.

“Since Carbon Pricing, introduced  in July 2012,  is achieving similar outcomes, now is an appropriate time to remove duplication and cease the Scheme.

The Smart Energy Savings Program (SESP), requiring businesses using a certain amount of electricity,  to report their energy use to government, will also be closed.

Mr McArdle said Queensland businesses should identify energy savings to boost their bottom lines and not be forced to report these savings to Government.

“This requirement was adding red tape for no reason and the Government will not undertake any compliance activity for outstanding obligations under the SESP.”

Mr McArdle said standards for new coal-fired power stations would be abolished as they had been replaced by the introduction of carbon pricing and  no additional environmental benefit would be achieved by continuing the policy.

“The repeal of these standards will strip away the administrative burden and complexity for investors. It will allow them to select  the most appropriate technology for their needs and brings Queensland into line with all other states and the Federal Government,” he said.

”Also, based on current demand,  it is unlikely there will be a need for an additional coal-fired base load generator in Queensland within the next decade.

The Department of Energy and Water Supply will provide guidance to participants as they transition out of the two closing schemes and help energy providers understand any changes as a result of the repeal of standards on new coal-fired power stations.”

[ENDS] 8 March, 2013

Energy Assets - not for sale

Energy Assets

Energy Minister Mark McArdle has responded to the Prime Minister’s call for the State Government’s energy assets to be sold.

This may be because the Qld Government’s energy generation asset would be difficult to sell in the current political and economic climate.

Asset sales proved to be quite unpopular for the previous Qld Government.  The wholesale electricity market is over-supplied and newer gas fired assets can produce electricity more efficiently.  Domestic gas prices are artificially low, as the coal seam gas industry ramps up.  This paradigm may change when the liquefied natural gas industry matures and opens up to international export markets.

Mr McArdle said, in the Executive Summary of a submission to the Senate Select Committee on Electricity Pricing, compiled by the Department for Resources, Energy and Tourism in conjunction with the Department of Prime Minister and Cabinet and Treasury, the Federal Labor Government stated that:

“The Australian Government has a clear path for better-functioning energy markets through the progression of a set of critical reform issues. These include: … privatising government-owned energy assets – continued government ownership of energy businesses is impeding greater competition and efficiency, and reduces market confidence by creating uncertainty and risk for private sector investors.”

The Qld Department of Energy and Water Supply is in the process of developing a 30 year energy plan.

The terms of reference for an Inter-Departmental Committee and Independent Review Panel for Energy have been released.

The objectives of the Inter-Departmental Committee (IDC) on Electricity Sector Reform are to ensure:

1.   Electricity in Queensland is delivered in a cost-effective manner for consumers;

2.   Queensland has a viable, sustainable and competitive electricity industry; and

3.   Electricity is delivered in a financially sustainable manner from the Queensland Government’s perspective.

Sustainable Procurement, Qld Election, DERM, Gas

Sustainable Procurement

There are a couple of imminent developments which will have significant impacts on the process of implementing sustainable procurement:

The Australian Green Infrastructure Council (AGIC) is market testing a sustainability rating tool in preparation for a national launch in Parliament House Canberra in February 2012.

AGIC has a whole category on sustainable procurement recognising its importance. Aurecon Pty Ltd and Net Balance Pty Ltd were the authors of this category and it was based on the British Standard BS8903:2010 which is recognised as probably the leading edge worldwide.

The Australian Water Association (AWA) has developed a Water Sector Sustainability Framework to assist AWA's Corporate Members embed sustainability principles and practices within their business activities, and encourage organisations to assess their progress. The AWA Framework consists of a Sustainability Charter for the water sector, providing a set of Sustainability Principles by which participants can guide their business activities.

The AWA Framework also provides a Business Case for participation and a Toolkit which will in time be developed into an online 'Sustainability Knowledge Point'. AWA is now ready for Corporate Members to sign-up to their AWA Water Sector Sustainability Framework and Charter.

Qld State Election

The Election date has not been announced but Qld is definitely in election mode.

ASBG’s will be writing to major & minor political parties to clarify their policies on issues that impact Environmental Management & Sustainability in the lead up to the Qld State Election.

Earlier today the Qld Premier met with Commissioner Cate Holmes.

The Commissioner advised she would be holding further hearings and therefore would require an extension to the Inquiry's reporting date. The Premier advised she would be prepared to grant an extension.

She also advised the Commissioner the granting of such an extension could have implications for the timing of elections and this would require me to seek urgent legal advice on a number of options.

The Premier awaiting this advice and will she make a further public statement once she has received and considered it.

DERM

The State Opposition have been critical of the Qld Labor Government’s environment credentials indicating that the Department of Environment and Resource Management (DERM)’s poor management was responsible for its ineffectiveness in administering and enforcing legislation.

A LNP Government would repeal the Waste Reduction & Recycling Act & would probably disassemble DERM. Shadow Minister for the Environment Andrew Powell said there’s no proper rigour & reporting in the management of waste in Qld. He cites Auditor-General reports accusing DERM of focusing on outputs then outcomes when it came to mitigating risks to the environment.

Regional Queensland was subjected to inconsistent monitoring and compliance from the department, and there was appalling and limited oversight to assist regions plan effectively.

Stradbroke Island

Last year the Qld Premier announced a timetable to phase out sand mining on Stradbroke Island with a view to boosting the national park area on the Island to 80% by 2027. The Government believes North Straddie has enormous potential to grow a thriving, eco-tourism industry. It has legislated to ensure a phasing out of mining by 2027. A joint management process for land use is proposed with the Traditional Owners - the Quandamooka people.

Sand mining has occurred on Stradbroke Island for more than 50 years & could continue sustainable for at least another 200 years. However, the Qld Government is determined to make Straddie a political football & form the basis of it Environmental credentials. The LNP opposition believe that the extended national park now incorporates un-rehabilitated areas (including a tailings dam) which responsibility the Government will have to restore.

Gas Powered Pork Barrels

The availability & potential of gas reserves in Qld had outstripped existing & potential demand in the greater east coast Australian Gas market.

Qld Coal Seam Gas (CSG) producers want to access international gas markets via Liquefied Natural Gas (LNG). The first CSG-based LNG project was announced in May 2007 & since then a further nine have followed, of which 4 have achieved ‘significant project’ status & 3 have all the necessary approvals for the projects to proceed.

The Government wants to use the profits of the next resources boom, before they have calculated or demonstrated an understanding of costs of the Environmental impacts.

The Qld State Government is trying to link the modernisation of the education to the resources sector. The Qld Premier announced last year, that the Government will establish an Education Trust with the royalties from LNG. The Trust will be funded directly through 50% of LNG royalties. The Government is counting (& spending) chickens before they hatch relying on Treasury projections that indicate this will mean more than $1.8b will enter the Trust over the next 10 years.

The Government is also spending multi-billion dollars with TRUenergy, to provide 2 new gas fired power stations for Qld. The stations in Ipswich & Gladstone will be powered with CSG. In all of the propaganda from the Government & the Gas Industry, they quote the figure that gas will emit up to 50% less CO2 than coal-fired stations. There is no data to verify this claim & it is being brought into question by the proponents of renewable energy industry.

TRUenergy has already commenced the application process for development of both gas-fired power stations, which will occur over the next 12 months, with construction to begin as early as 2013.