Transcript Slide 1
Coal Seam Gas
VPELA Forum 16 April 2013
Pierre Andipatin Earth Resources Development Division
Agenda
• Gas in Victoria • Current Regulatory Framework • National Initiatives – National Partnership Agreement – – – National Harmonised Regulatory Framework Multiple Land Use Framework EPBC amendments
Why does Victoria need gas?
• Secure and affordable gas is important for the community and industry and for a low emissions energy future • Natural gas is a cheap, reliable and safe source of energy • Electricity produced from natural gas has lower carbon dioxide emissions than coal • The consumption of gas in Victoria is expected to double by 2030 • Victoria may need to source gas from other states, if demand can’t be met
The current focus in Victoria is understanding the potential for unconventional gas (tight/shale and coal seam gas)
Gas in Victoria
Without significant additional gas demand exceeds supply from 2017 Demand
What are the options?
Agenda
• Gas in Victoria • Current Regulatory Framework • National Initiatives – National Partnership Agreement – – – National Harmonised Regulatory Framework Multiple Land Use Framework EPBC amendments
Current framework for CSG
Science work
- IESC Bioregional Assessments - IESC strategic projects - National reference group - Victorian scientific work
General prohibitions against pollution (EP Act, Water Act) State Environment Protection Policies
Well integrity & fraccing Enviro & water management on site/at surface Land access, consent, compensation (Mineral Resources (Sustainable Development) Act 1990) Licensing of dam and bore construction (Water Act) Licensing of emmissions and discharges (EP Act) Licensing of water extraction (Water Act)
Environment Effects Statement (EE Act) Planning approvals (P&E Act)
Native title Native vegetation Heritage (Aboriginal & European)
Exploration Activities
Low Impact Exploration Office studies Surface / underground mapping Geological & Geochemical sampling Use of ‘non-mechanical’ hand tools: • e.g. rock chip sampling Ground Disturbing Exploration Work Plan Required Drilling Flow testing
CSG Production
• Commercial production • Large number of wells. • Pipelines & other infrastructure • Wells operate for 10 to 20 years • Rehabilitation • Upon completion wells are plugged with concrete and abandoned • • Infrastructure is removed Land is returned to original or agreed state
Recent Victorian CSG response
The Government announced reforms in August 2012 to current policy for onshore gas exploration: • Hold on approvals to undertake hydraulic fracturing ('fraccing') • Hold on the issuing of new exploration licenses for CSG • Ban on the use of BTEX chemicals in hydraulic fracturing • Strengthen resource policy and legislation to ensure better consideration of mixed land use issues • Use of impact statements at the exploration stage where there is potential for a significant impact on the environment
Land Use
Coexistence between
Agriculture and Mining
Prior to commencing work, a licensee must: • Obtain landowner consent (informed verbal or written), or • Make and register a compensation agreement • For exploration impact statements are required
Water
• Allocation/cap • Water management at surface • Connectivity between aquifers (scientific understanding) • Chemical contamination
Hydraulic Fracturing
• Injecting a mix of water, sand & chemicals to create a fracture to allow gas to flow • Commonly used technique in Oil & Gas sector • BTEX Chemicals banned and hold on approvals in place
Environmental Impacts
• Essential to consider & understand any environmental impacts • Bioregional Assessments • EES
Engagement & Consultation
• • • • Fact Sheets Briefings to Key Stakeholders (eg. Local Government) Community Information Sessions Earth Resources Ministerial Advisory Council
We are committed to ensuring that our community and stakeholders are informed and engaged in the conversation regarding Coal Seam Gas.
Agenda
• Gas in Victoria • Current Regulatory Framework • National Initiatives • • • • National Partnership Agreement National Harmonised Regulatory Framework Multiple Land Use Framework EPBC amendments
National Initiatives
• • •
National Partnership Agreement
Independent Expert Scientific Committee $10.13M Funding
• • • •
National Harmonisation Framework
A regulatory guidance document
Consultation Dec ‘12 – Feb ‘13
Expected to be presented to SCER Ministers mid ‘13 • • •
Multiple Land-Use Framework
Sets out best practice multiple land use principles In further development in consultation with land use, regional and planning agencies •
EPBC Amendments
National Partnership Agreement
Improved scientific knowledge to inform decision makers • Bioregional assessments • Strategic projects • National reference group • Project level referrals to IESC • Funding for Victorian specific scientific work
National Harmonised Regulatory Framework
Regulatory guidance document Key areas of community and scientific concern: 18 leading practices / 19 outcomes
Multiple Land Use Framework
Developed by SCER (energy and resource Ministers) Aims to ensure multiple / sequential land use is part of dialogue / toolbox for decision makers when considering resource development Contains best practice principles for land use
EPBC Act amendments
Makes water a MNES and projects subject to assessment against controlled action criteria / requirements Provides an additional layer of environmental assessment and approval Duplication of existing processes?
Summary
• Gas is important for meeting Victoria’s energy demand • CSG is one possible source of gas for Victoria’s future • CSG has numerous issues which government is considering • A range of national initiatives are supporting improved understanding of water resources and best practice regulation