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Environment and Communications References Committee The Senate Environment and Communications References Committee Oil or gas production in the Great Australian Bight May 2017 © Commonwealth of Australia 2016 ISBN 978-1-76010-536-5 Committee contact details PO Box 6100 Parliament House Canberra ACT 2600 Tel: 02 6277 3526 Fax: 02 6277 5818 Email: [email protected] Internet: www.aph.gov.au/senate_ec This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/. This document was printed by the Senate Printing Unit, Parliament House, Canberra Committee membership Committee members in the 45th Parliament Senator Sarah Hanson-Young, Chair (from 13 October 2016) AG, TAS Senator Linda Reynolds CSC, Deputy Chair (from 15 February 2017) LP, WA Senator Anthony Chisholm ALP, QLD Senator Sam Dastyari ALP, NSW Senator Jonathon Duniam LP, TAS Senator Anne Urquhart ALP, TAS Substitute members for this inquiry Senator David Fawcett (LP, SA) for Senator David Bushby (LP, TAS) on 16 November 2016 Senator Chris Back (LP, WA) for Senator Jonathon Duniam (LP, TAS) on 16 November 2016 and from 8 February 2017 Senator Alex Gallacher (ALP, WA) for Senator Sam Dastyari (ALP, NSW) from 8 November 2016 Senator Sarah Hanson-Young (AG, SA) for Senator Larissa Waters (AG, QLD) from 10 October 2016 to 7 February 2017 Senator Sarah Hanson-Young (AG, SA) for Senator Peter Whish-Wilson (AG, TAS) from 7 February 2017 Participating members for this inquiry Senator Nick Xenophon NXT, SA Senator Skye Kakoschke-Moore NXT, SA Senator Stirling Griff NXT, WA Senator Glenn Sterle ALP, WA Former members Senator David Bushby (to 5 December 2016) LP, TAS Senator James Paterson (5 December 2016 to 15 February 2017) LP, VIC Senator Larissa Waters (to 7 February 2017) AG, QLD Committee members in the 44th Parliament Senator Anne Urquhart, Chair ALP, TAS Senator Linda Reynolds CSC, Deputy Chair LP, WA Senator Chris Back LP, WA Senator Anne McEwen (from 18 April 2016) ALP, SA Senator the Hon Lisa Singh ALP, TAS Senator Larissa Waters AG, QLD iii Substitute members for this inquiry Senator Sean Edwards (LP, SA) for Senator Linda Reynolds (LP, WA) from 29 February 2016 Senator Glenn Sterle (ALP, WA) for Senator Joe Bullock (ALP, WA) from 3 March 2016 to 13 April 2016 Senator Alex Gallacher (ALP, WA) for Senator the Hon Lisa Singh (ALP, TAS) from 23 February 2016 Senator Robert Simms (AG, SA) for Senator Larissa Waters (AG, QLD) from 24 February 2016 Participating members for this inquiry Senator Nick Xenophon IND, SA Former members Senator the Hon Anne Ruston, Deputy Chair (to 12 October 2015) LP, SA Senator the Hon James McGrath (to 12 October 2015) LP, QLD Senator Joe Bullock (to 13 April 2016) ALP, WA Committee secretariat Ms Christine McDonald, Committee Secretary Mr Colby Hannan, Principal Research Officer Ms Fattimah Imtoual, Senior Research Officer Ms Michelle Macarthur-King, Administration Officer iv Table of contents Committee membership ................................................................................... iii List of abbreviations .......................................................................................... ix Chapter 1: Introduction ..................................................................................... 1 Referral and terms of reference .............................................................................. 1 Conduct of the inquiry ............................................................................................ 2 Termination of BP's proposed exploratory program .............................................. 2 Acknowledgement .................................................................................................. 3 Structure of the report ............................................................................................. 3 Oil and gas production and use in Australia ........................................................... 4 Prospectivity of the Great Australian Bight ........................................................... 5 Overview of the Great Australian Bight ................................................................. 7 Great Australian Bight Commonwealth Marine Reserve....................................... 9 Great Australian Bight marine environment ........................................................ 12 Regional population and industry profile ............................................................. 15 Current research and scientific knowledge .......................................................... 18 Chapter 2: Regulatory framework for oil and gas exploration and production .................................................................................................. 23 Offshore oil and gas approval and regulatory regime .......................................... 23 Regulatory responsibilities ................................................................................... 25 BP's proposed venture – process and status ......................................................... 37 Chapter 3: Regulatory issues ........................................................................... 45 Ministerial oversight and decision-making expertise ........................................... 45 NOPSEMA's environmental standards ................................................................ 48 Adequacy of consultation processes ..................................................................... 51 Transparency of decision making ......................................................................... 59 Enhancements to the regulatory framework ......................................................... 60 v Chapter 4: Effects of oil and gas exploration and production in the Great Australian Bight .......................................................................... 63 Economic impacts of oil and gas production ....................................................... 63 Environmental impacts ......................................................................................... 71 Chapter 5: Environmental and economic impacts in the event of an oil spill ....................................................................................................... 79 Oil spill modelling ................................................................................................ 79 Economic impact in the event of an oil spill ........................................................ 82 Impact on Indigenous communities ..................................................................... 84 Impact on the marine environment in the event of an oil spill ............................. 86 Chapter 6: Capacity to prevent, and mitigate the effect of an oil spill ........ 99 Regulatory requirements ...................................................................................... 99 Titleholder strategies and response organisations .............................................. 102 Concerns with the adequacy of oil spill response strategies .............................. 107 Concerns with the ability of proponents to prevent an oil spill ......................... 112 Lessons learnt from Deepwater Horizon ............................................................ 114 Additional comments from the Australian Greens ...................................... 117 Additional comments from Senators Back, Gallacher and Reynolds........ 129 Additional comments from Senators Chisholm and Urquhart .................. 151 Additional comments from Senator Nick Xenophon .................................. 155 Appendix 1: Submissions, additional information, tabled documents and answers to questions on notice ............................................................... 157 Appendix 2: Public hearings .......................................................................... 161 vi List of abbreviations AIP Australian Institute of Petroleum ALARP As Low as Reasonably Practicable AMCS Australian Marine Conservation Society AMOSC Australian Marine Oil Spill Centre AMOU Australian Maritime Officers Union AMSA Australian Maritime Safety Authority APPEA Australian Petroleum Production and Exploration Association BIA Biologically Important Area CBAA Clean Bight Alliance Australia CMR Commonwealth Marine Reserve EPBC Act Environment Protection and Biodiversity Conservation Act 1999 EPLGA Eyre Peninsula Local Government Association FTE Full-time Equivalent GAB Great Australian Bight GDP Gross Domestic Product HOB Head of the Bight HSI Humane Society International IFAW International Fund for Animal Welfare IMO International Maritime Organisation IUCN International Union for Conservation of Nature IWC International Whaling Commission JPDA Joint Petroleum Development Area LNG Liquid Natural Gas LPG Liquid Petroleum Gas MODU Mobile offshore drilling unit vii NOPSA National Offshore Safety Authority NOPSEMA National Petroleum Safety and Environmental Management Authority NOPTA National Offshore Petroleum Titles Administrator NWS North West Shelf OPEP Oil Pollution Emergency Plans OPGGS Act Offshore Petroleum and Greenhouse Gas Storage Act 2006 OPP Offshore Project Proposal OPRC Convention International Convention on Oil Pollution Preparedness, Response and Co-operation OPRC-HNS Protocol on Preparedness, Response and Co-operation to Pollution Protocol Incidents by Hazardous and Noxious Substances 2000 OSRL Oil Spill Response Limited PAH Polycyclic aromatic hydrocarbons PRRT
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