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Australian Energy and Resources Update: June 2013 1 Australian energy and resources update: June 2013 1 Briefing note July 2013 Australian energy and resources update: June 2013 Welcome to our monthly update of Australian energy and resources-related legal developments. This update is intended as a snapshot and not specific legal advice (nor an exhaustive coverage of all relevant issues). In this issue Changes in Australian There has been speculation that the Changes in Australian Government new leadership will consider a Government draft report suggests over- number of policy changes, among Following a change in leadership of regulation is affecting them a change to the pricing of the ruling Australian Labor Party, Julia Australian resource carbon including an immediate move Gillard resigned as Prime Minister on exploration productivity to an emissions trading scheme. 26 June, and Australia's Governor- Media articles also suggest the Prime Government revives General appointed the new Labor Minister is reviewing the date of the competitive cash bidding for leader, Kevin Rudd, to the office of next Australian General Election, offshore petroleum Prime Minister the following day. previously set for 14 September 2013. exploration acreage At the same time, Anthony Albanese new bill seeks to ban coal was formally appointed as the Deputy Draft report suggests over- seam gas exploration in Prime Minister and Chris Bowen was regulation is affecting Queensland farm country appointed Treasurer. Australian resource three States sign up to water Prime Minister Rudd announced a exploration productivity plan new Cabinet in full on 1 July. Among amendment extends key appointments: A new report, published in draft by the environment assessments to Australian Productivity Commission, coal seam gas and coal Anthony Albanese has assumed shows the productivity of Australia's mining projects the role of Minister for resource exploration industry is falling. gold exploration licence Infrastructure and Transport The draft report, "Mineral and Energy renewal refused after process Gary Gray has retained the Resource Exploration" finds that error Energy and Resources portfolio operating costs are rising, rates of new EPA draft guidelines in Mark Butler has assumed the discovery are falling, and Australia is the Northern Territory role of Minister for Environment, becoming relatively less attractive to Queensland ends favoured Water and Heritage and the international firms as an exploration treatment for power from gas- Minister for Climate Change destination. fired sources the former Minister for the Tasmania's forests, national Environment, Tony Burke, is the The draft report focuses particularly parks and reserves win new Minister for Immigration and on whether there is unnecessary heritage protection will take responsibility for the new regulatory burden and duplication rules on the use of 457 visas, between the various levels of new report recommends fossil which were passed through Australian government and how the fuels stay in the ground to halt Parliament on 28 June. regulatory framework could be climate change. improved. 2 Australian energy and resources update: June 2013 In particular, the Commission acreage for release through a introduced into the Queensland analyses and proposes competitive cash bidding process. Parliament on 7 June 2013. The bill recommendations for: seeks to prohibit all coal seam gas Nominations for the 2014 Offshore and exploration mining activities on the exploration licensing and Petroleum acreage release areas land east of the Condamine River approvals regulatory framework have begun. Stakeholders have until from Chinchilla to the New South and its governance 31 July 2013 to nominate vacant Wales border and from the offshore areas to be considered by land access to different types of longitudinal line running directly the Government for next year‟s land tenure by explorers through the Chinchilla Post Office acreage release. heritage protection east to the coast and protect any land Under the new scheme, applicants highly suitable for cropping under the environmental impacts and risks can bid cash for the right to explore Strategic Cropping Land Act 2011 and related regulation within the release area. The cash (Qld). the provision of pre-competitive bidding process may be used for The bill has been referred to the geoscience information by the mature offshore areas or in areas with State's Agriculture, Resource and Australian Government and known petroleum accumulations. Environment Committee, which is due various workforce issues, Since 1992, acreage has been to provide its final report by 9 including skills shortages, allocated through "work-programme December 2013. workplace health and safety bidding", with acreage going to the regulation and workplace applicant proposing the most amount Three States sign up to relations. of work to explore the petroleum water plan The release of the draft report is potential of a release area, subject to notable because the Commission‟s applicants having the technical and Victoria, South Australia and the reports are often used to inform the financial competence to meet work Australian Capital Territory (ACT) design of future reforms intended to commitments. Unlike work have signed up to the Murray-Darling rectify issues identified by the programme bid releases, releases Basin Plan, the statutory plan under Commission. under the cash bidding process will the Water Act 2007 (Cth) that dictates not be subject to work programme future use and management of the The Commission has invited commitments. Murray-Darling River system. submissions on the draft report no later than 15 July 2013, with its final New bill seeks to ban coal The Murray-Darling is Australia's largest river system. It supplies report issued by the end of seam gas exploration in September 2013. Further information Australia‟s prime agricultural areas, Queensland farm country is available on the Commission‟s which produce some A$15 billion in website at: produce each year. A new bill has been introduced to www.pc.gov.au/projects/inquiry/resour protect prime agricultural land from The Basin Plan is an ce-exploration/draft. coal seam gas exploration and mining Intergovernmental Agreement that Government revives in certain areas of Queensland. provides a coordinated approach to water use across Victoria, New South competitive cash bidding for The bill aims to ensure the Wales, Queensland, South Australia offshore petroleum sustainability of the agricultural and the ACT. exploration acreage industry and food security in Queensland. It also aims to protect As the first state to agree to the plan, Victoria will receive A$14.3 million For the first time since 1992, and for underground water that may be over three years to develop new the first time under the Offshore affected by coal seam gas exploration projects (for example, projects to Petroleum and Greenhouse Gas and mining. water floodplains) to offset the Storage Act 2006 (Cth), the Australian The Protection of Prime Agricultural amount of water that has been taken Government will next year consider Land and Other Land from Coal from farmers‟ water entitlements. some areas of offshore petroleum Seam Gas Mining Bill 2013 was Australian energy and resources update: June 2013 3 Victoria will also receive A$47.5 Gold exploration licence was able to prove that the Minister‟s million over eight years to implement renewal refused after delegate had in fact considered the the Basin Plan. South Australia will „satisfaction of the special receive A$445 million for process error circumstances‟ requirement when environmental infrastructure and The Land and Environment Court of making the decision in March 2011, industry diversification measures. New South Wales has invalidated the renewal of the licence was not Details of the ACT‟s agreement have Newcrest Mining Ltd‟s seventh valid. Further, the Court held that not yet been released. renewal of an exploration licence for without consideration of the special circumstances requirement there was Amendment extends an area near the Cadia goldmine in the Cadia Valley in New South Wales. an absolute bar under the Mining Act environment assessments to on the renewal being granted for the coal seam gas and coal The applicant, Gold and Copper whole area. Resources Pty Limited, successfully mining projects argued that the Minister‟s delegate This case highlights the need for had not formed the requisite level of government departments and Commonwealth assessment and satisfaction of special circumstances corporations to carefully check that approval under Part 9 of the required to renew the licence under the renewal decision making process Environment Protection and the Mining Act 1992 (NSW). complies strictly with the applicable Biodiversity Conservation Act (Cth) legislation. You can access the (EPBC Act) are now required for coal Under that Act, a renewal of an judgment at: seam gas developments and large exploration licence over more than www.caselaw.nsw.gov.au/action/PJU coal mining developments that half the area covered by the licence is DG?jgmtid=164806. significantly impact water resources. not permitted unless the decision- maker is satisfied that special New EPA draft guidelines in The changes follow an amendment to circumstances exist justifying the the EPBC Act that came into force on the Northern Territory larger number of units. 22 June 2013. The Northern Territory Environment Cadia is the biggest underground The new amendments will not affect Protection
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