Coal Seam Gas Mining - Dairy Australia - Victorian overview presentation poowong
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Information on the practices and technologies used, legislative control measures and landholder considerations.
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Coal Seam Gas Mining - Dairy Australia - Victorian overview presentation poowong
- 1. Unconventional Gas Mining Communication Sessions VictorianDairy&unconventionalgasmining- CommunicationSessions Provide dairy farmers with a trusted and unbiased source of information on the practices and technologies used, legislative control measures and landholder considerations. • Important to note that many factors are shared with other agricultural sectors and therefore require a collaborative approach. Only a few are unique to the dairy industry. • Dairy specific- Impacts/ reforms relate to quality assurance programs (direct & indirect) & consideration of farm activities in a more intensive farm environment.
- 2. VictorianDairy&unconventionalgasmining- CommunicationSessions Victoria & CSG Licencing Minerals Resources (Sustainable Development) Act 1990 Exploration Licence (EL) Enables the holder to carry out exploration activities on the land covered by the licence for five years.
- 3. Cancellingof Petroleum Applications Bye-back of Petroleum (onshore) Titles VictorianDairy&unconventionalgasmining- CommunicationSessions NSW Reforms (NSW Gas Plan)
- 4. Australian regulatory frameworks VictorianDairy&unconventionalgasmining- CommunicationSessions • The States are largely responsible for regulating this industry. • Responsibilities include: • licensing exploration and development • setting licence conditions • assessing environmental impacts • monitoring and enforcing industry adherence to regulation; and • collecting royalties.
- 5. What is CSG Mining? VictorianDairy&unconventionalgasmining- CommunicationSessions Unconventional gas requires the use of extraction technologies to release the gas from complex geological systems. While aquifers are located 100-200m below ground, the three types of unconventional gas are further below: • Coal Seam Gas (CSG) 300 – 1000m • Shale Gas 1000-2000m • Tight Gas >1000m CSG mainly consists of methane accessed by drilling wells to depressurise coal seams, allowing water and gas to flow to the surface through a fully encased well. At the surface, water is separated from the gas and both are piped elsewhere for further processing.
- 7. CSG Infrastructure VictorianDairy&unconventionalgasmining- CommunicationSessions • CSG Well Integrity- mandatory codes of practice in place in NSW & QLD. • Well Pads • 5m2 & 100m2 during a 2 to 3 week construction period • 5m2 to 30m2 during the gas production period lasting 15 to 25 years. • Gas & water gathering systems • Buried at least 1m underground to transport gas and water • Surfaces rehabilitated back to agreed condition once in place. • May include in-field gas compressors • Centralised gas processing facilities • Waste Water Treatment Processing Facilities • Gas Transmission Pipeline (Bass Gas) • LNG Facilities 18cm diameter Steel & pressure cemented casing between pipe and rock to isolate formations and aquifers. Gas & water pipe
- 8. Construction VictorianDairy&unconventionalgasmining- CommunicationSessions Contractors will require access to the well pad using existing or newly built laneways. During construction, traffic may include large earthmoving and drilling equipment.
- 9. Operational VictorianDairy&unconventionalgasmining- CommunicationSessions Once commissioned, traffic is reduced to vehicles associated with periodic maintenance and monitoring. • Field based infrastructure is considered to be self-sufficient using remote operations & sensors. • Maintenance (approx. monthly) of the well and pad site is undertaken by field staff. • A “Work-over rig” can be anticipated by a landowner aprox. every 1-3 years.
- 10. Hydraulic Fracturing • Process of injecting fluids containing sand or small ceramic grains (a ‘proppant’) under pressure to fracture a rock and enhance its permeability to improve the ability for water and gas to flow to the well. • The depressurisation of the CSG seam induces a pressure gradient towards the well, which means that water held in the immediate cleats and fractures flows towards the well. This is called “Flow-back Water”. VictorianDairy&unconventionalgasmining- CommunicationSessions
- 11. Hydraulic Fracturing Additives CSIRO outlines: • Guar gum (a food thickening agent used in ice-cream) • Sodium Hypocholorite (used in pool chlorine) and sodium hydroxide (used to make soap) • Ammonium persulphate (used in hair bleach) • Surfactants such as ethanol and the cleaning agent orange oil (used in toothpastes) • Acetic acid (vinegar) and sodium carbonate (washing soda) • The use of additives containing BTEX compounds (benzene, toluene, ethyl benzene and xylenes) is banned. All of the above are also used in some way in the dairy industry Refer to Fact Sheet “Unconventional Gas Mining: Dairy Industry Frequently Asked Questions” VictorianDairy&unconventionalgasmining- CommunicationSessions
- 12. Water Potential effects on water quality and quantity are central to dairy industry discussions on unconventional gas mining. • Effects to groundwater systems raise concern as gas extraction involves the removal of water from gas-bearing geological formations to the ground surface, called ‘Produced water” that most often needs treatment prior to reuse. • Quality concerns centre on the salinity levels and possible chemical concentrations in the produced water, including any traces of fracking fluid constituents. • As treated produced water may potentially be reused in agriculture, research and on-farm trials are underway. Refer to Fact Sheet “Unconventional Gas Mining: Water quality and quantity” VictorianDairy&unconventionalgasmining- CommunicationSessions
- 13. AddressingWater Issues-Fracture StimulationCodes of Practice(NSW& QLD) • “Flow-back Water” must be tested by a National Association of Testing Authorities (NATA)-certified laboratory to demonstrate compliance with the Australian Drinking Water Guidelines (ADWG). • The ADWG stipulates acceptable water property concentration parameters for both human health and aesthetic use (i.e. swimming and water sports). • Samples may be taken at any time by regulatory authorities to verify compliance with environmental conditions, EPA licences and the relevant Codes of practice. • Additives used in extraction must be disclosed as part of environmental assessment processes and Fracturing Stimulation Management Plans (FSMP) so that the safety of the chemicals for both the community and environment can be determined. All FSMP are publically available and must be provided and fully explained to the landholder where any fracturing is to take place. VictorianDairy&unconventionalgasmining- CommunicationSessions
- 14. Treatment & Re-use ADWG and the Australian and New Zealand Guidelines for Fresh and Marine Water Quality (ANZECC Guidelines) are the main reference guides for parameters and allowable limits. • Final intended use determines the water quality parameters for Produced Water in environmental approval conditions determined by the State agencies. • CSG water quality varies across regions- 3000-7000 mg/L TDS and can be alkaline due to high levels of bicarbonate. • Sea water is between 36,000 and 38,000 mg/L. • Good quality drinking water <500 mg/L • Tolerance levels for dairy cattle without loss of production <4000 mg/L (ANZECC Guidelines) or <3500 mg/L for lactating dairy cows (converted from EC levels in DPI NSW Prime Fact 533). • Produced water has contained naturally occurring concentrations of metals, dissolved or dispersed oil compounds (that may include naturally occurring BTEX compounds), dissolved gases and naturally occurring radioactive materials (NORM). Treatment of some kind is therefore necessary VictorianDairy&unconventionalgasmining- CommunicationSessions
- 15. Dairy related treatment & re-use options A number of beneficial re-use and brine management research projects and trials are being undertaken in the agricultural sector . Irrigation • Blending with freshwater and settlement of suspended solids. • Precipitation of Metals to remove the metal ions (for pasture and feed crops only). • Dissolved solids removal using reverse osmosis (RO), if blending alone is not adequate. • Filtration pre-RO to remove suspended solids (both organic and inorganic, including hydrocarbons). Livestock • Alkalinity correction such as dosing with hydrochloric or sulphuric acid (species- dependent). • Precipitation of Metals to remove the metal ions. • Filtration and/or Adsorption to remove hydrocarbons. • Disinfection (chlorine or irradiating with ultra violet light), most effective once suspended and dissolved solids are removed. VictorianDairy&unconventionalgasmining- CommunicationSessions
- 16. Water Quantity Central to the discussion on groundwater resources is whether current and future demand is sustainable across all industry sectors (including our own). • NSW and Queensland will now have centralised web portals established, to more accurately inform cumulative studies. These portals are relevant to all groundwater users. • Companies must make their water data freely available, now in real- time- http://www.agl.com.au/about-agl/how-we-source-energy/natural-gas/water-portal • Groundwater modelling and mapping assists to indicate whether coal seams are connected to aquifers, and to predict whether drawing water from one can impact levels and water quality in the other. • Information can be used to build computer models of sites that can be used to predict the impacts of gas production on groundwater systems, and therefore the suitability of the proposed well site. • Although absolute guarantees are not possible, existing knowledge from research on aquifers and groundwater models make it possible to estimate the risks and uncertainties of adverse impacts. VictorianDairy&unconventionalgasmining- CommunicationSessions
- 17. Health • Importance of locational characteristics (geology, hydrogeology) in attempting to determine likelihood & consequence (severity)- impact assessments are based on this. • Dosage is critical in consideration of any effects (exposure= concentration & duration) • Many pathways can result in dilution, decreasing exposure. • Potential risk requires effective controls & regulation. • Published peer-reviewed health studies (epidemiological- measurable) are limited due to insufficient statistical populations. • Recent study of 43 wells in QLD & NSW by CSIRO can compare methane exposure to: • Median- 2-3 lactating cows on pasture • Average- 14 lactating cows on pasture No leaks at all were detected from around the well casings themselves, but from other sources at the well pad. VictorianDairy&unconventionalgasmining- CommunicationSessions
- 18. Legislative Control Measures VictorianDairy&unconventionalgasmining- CommunicationSessions Commonwealth • Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) seeks to protect nationally significant environmental assets. • Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Developments (IESC) provides scientific advice to decision-makers on the impacts that projects may have on Australia’s water resources. • Bioregional Assessments- Gippsland bioregional assessment is being undertaken by the Victorian Government and is due for completion in late 2016.
- 19. Legislative Control Measures VictorianDairy&unconventionalgasmining- CommunicationSessions Victoria • Less mature and coherent legislative framework compared to NSW & Qld. • CSG dealt with under the Mineral Resources (Sustainable Development) Act 1990 (MRSD) • Tight & Shale Gas dealt with under the Petroleum Act 1998 • Administered by the Earth Resources Regulation Branch in the Corporate Planning and Compliance Services Division of the Department of Economic Development, jobs, transport and resources. • The relevant decision maker is the Minister for Energy and Resources.
- 20. Legislative Control Measures VictorianDairy&unconventionalgasmining- CommunicationSessions Victoria • Exploration Licences are granted with conditions based upon draft Work Plans or Operations Plans (relevant to the Act under which the licence is to be granted). • These address considerations relating to land rehabilitation; environmental protection; groundwater protection; proposed works; licensee expenditure; reporting requirements; payment of fees, bonds, levies and royalties and land access. • Planning and Environment Act 1987- relevant to production only • Environmental Protection Act 1970- referral only for both stages • Environmental Effects Act 1978- determination by Planning Minister whether an Environmental Effects Statement (EES) is required • It is possible that several departments and agencies can have responsibility for enforcing approval conditions.
- 21. NSW reformed Control Measures VictorianDairy&unconventionalgasmining- CommunicationSessions
- 22. Land Access Generally, at present, companies in all States are working under principles of land access- both formal and informal. VictorianDairy&unconventionalgasmining- CommunicationSessions Relevant State Mineral, Mining or Petroleum Onshore Acts State relevant Court Proceedings Gas mining companies must provide notification to enter private land, but notification periods and how the notification is communicated to a farmer differs from state to state.
- 23. Victoria Exploration Land Access • Gas companies must obtain the consent of the owners and occupiers of the land affected • Make and register a compensation agreement. • Obtain a compensation determination from VCAT; or • Purchase the land. • For ‘low impact exploration work’, an informal verbal consent from the owner or occupier will suffice; this requirement can be waived where all ‘reasonable efforts’ have been undertaken to find the owner or occupier. No Land Access Agreement/ Arrangement needs to be in place Compensation • A compensation agreement must be in place before any mining activity can take place. • Compensation can be sought in relation to any “direct, natural and reasonable consequence of the exploration or mining activity”. VictorianDairy&unconventionalgasmining- CommunicationSessions
- 24. NSW Land and Water Commissioner • Provide guidance to the community and landholders • Oversee land access agreements • Provide advice to government on applications for exploration or production activities • Increased openness in compensation process. New compensation reforms • NSW Gas Plan- Gas companies are to negotiate a land access arrangements for both exploration and mining of which compensation will be mandatory (fixed rate and economic considerations over the expected life of the wells). • Independent Pricing and Regulatory Tribunal to benchmark annually. Refer to Fact Sheet “Unconventional Gas Mining- a dairy farmer’s ability to produce food” VictorianDairy&unconventionalgasmining- CommunicationSessions
- 25. Landholder Considerations VictorianDairy&unconventionalgasmining- CommunicationSessions • Before Negotiations Begin • Initial Approach • What to Cover • Baseline Assessments • Access to property • Location of infrastructure • Protections • Communication • Rehabilitation Refer to the Fact Sheet “Unconventional Gas Mining- Planning and managing in a coexistence scenario”
- 26. Broader Dairy Industry Considerations • Clear Policy Position & Principles • Confident pathways forward • Keeping abreast of legislative frameworks and input opportunities • Suite of projects underway- assess outcomes against dairy considerations incl. Bioregional Assessments • Stakeholder in greater agricultural sector response (ie. irrigation, land access) • Facilitate collaborative dairy sector approach on dairy specifics- ie. food safety authorities, AFIA (commodity vendor declarations (CVD)). • Potential for QA program reform based upon peer reviewed, scientifically evidenced investigations. • Coexistence- especially technology & innovation advancements in “gas farm design”. Dairy&unconventionalgas mining-BriefingReport
Editor's Notes
- A little bit about me: Worked in Gippsland for 12 years working directly with landholders, many directly in the dairy industry. Was Research & Development Management for Murray Goulburn Field Services for 4 years where my main focus was upon environmental, food safety and animal welfare compliance Last four years, since leaving Poowong, have been working as an environmental planner and found myself involved in a number of Queensland’s CSG projects in the environmental permitting stages- Santos GLNG Pipeline project, Santos GLNG Gas field project (including Wallambilla Gas Plant) and also in the environmental management stages where I was involved in compliance auditing. Last year, being one of the only people around to have experience in both the dairy and CSG arenas, I was approached to prepare a report for Dairy Australia on Cooexistence.
- Largely, the potential of the coal seams associated with Victoria’s brown coal deposits is lesser known than Queensland and New South Wale’s black coal deposits. It may also be the case that if there is CSG in Victoria’s brown coal deposits, it may be harder to extract and hence more costly to produce than CSG from black coal deposits. There is also argument that low permeability in the onshore Gippsland basin would require deep horizontal drilling and fracking in order to develop the target sections, resulting in expensive well costs that we are now seeing many of the companies are reluctant to invest in. Twenty-two mining exploration licences have identified CSG as a target resource in their applications under the Mineral Resources Sustainable Development Act 1990 (MRSD Act). Eighteen of these licences are in Gippsland. “Minerals” licencing does not only refer to CSG, but all extractive mineral industries. Licences are subjected to conditions imposed by the Minister for Energy and Resources. Of importance here is that exploration does not necessarily lead to mining. Retention licences – Can enable the holder to retain the rights to a mineral resource that is not currently economically viable to mine, but may be in the future. It is normally expected that an ‘inferred standard’ of a JORC mineral resource is demonstrated. The JORC Code provides a mandatory system for the classification of minerals Exploration Results, Mineral Resources and Ore Reserves according to the levels of confidence in geological knowledge and technical and economic considerations in Public Reports. Retention licences are limited to 10 years and may be renewed twice, the second only in “exceptional” circumstances.
- Very recently in NSW we have seen the release of the NSW Gas Plan which was based upon the recommendations provided in a report (developed over two years) by the Chief Scientist and Engineer. Certain Petroleum exploration licences have been cancelled or bought back by the NSW government. This means, that from now on, exploration and production licencing will be subject to the more rigorous reforms that have recently been instated, or are earmarked for NSW. These will be further explained later in the presentation.
- Understanding the complex legislative and approvals process can be extremely difficult. Each State’s regulatory framework is at different stages of maturity in its capacity to rigorously safeguard agriculture, communities and the environment.
- You’ve probably all seem a diagram like this before, but just to go over…
- This diagram provides a good overview of the interactions of CSG mining with the underground systems. The aquifers on which agriculture relies in many areas are located between in the first 100-200 metres below the ground. It is this portion which is passed by the drilled wells, separated by steel and cement pressured encasing. I’ll go into more detail on this shortly. Until exploration investigations are undertaken, it is usually how these are potentially connected to the coal seams further below that is not known. On the right here we also have a diagram of the Fracture Stimulation process. This is most likely the biggest elephant in the room but we will also address this further in a moment.
- CSG Wells are regulated in both NSW and Queensland by regulated Codes of Practice which outlined how the well is to drilled, structured and managed longer-term. The hole is drilled using drilling fluids to lubricate and cool the drill rods and drill bit, remove the rock cuttings, maintain pressure control of the well, and stabilise the hole. (*only if required ) Drilling fluid is generally a mixture of water, clays, and additives such as bentonite, cellulose, polymer, barite and guar gum that control fluid loss, density and viscosity (*only if required ) When the depth is reached, the well is cased with steel and the gap between steel and the rock is pressure cemented from the coal seam to the ground surface. This is to ensure that all the formations overlaying the coal seam are isolated from fluid and gas passing from the inside of the well. Water is then pumped from the coal seam and this reduction in water pressure releases the gas from the coal. When the water and gas are brought to the surface, a separator directs the gas (which consists mainly of methane) to a central compressor station through a pipeline gathering system. The water, commonly referred to as ‘Produced Water’, is piped elsewhere for further use or treatment. Sometimes gas compressors are required in the field to assist the gas to be pushed further onwards to the Gas Processing Facilities which can be located some distance away. These facilities are usually located in a more industrial setting and can be located on existing sites. The footprint may be 5-10acres. They can also be co-located with WWTP. LNG facilities can be located hundreds of kilometres away. Lang, Lang, whilst an LPG facility, therefore requiring more height than the infrastructure of an LNG facility, provides a small insight into what this may look like. Pipelines are dealt with under the Pipeline Act, but would require progressive installation and rehabilitation along a ROW.
- Under approval conditions, the vehicles are required to follow strict weed quarantine controls to minimise the spread and proliferation of weeds across agricultural lands, and are also subject to a traffic management plans which dictate the manner in which vehicles are operated. A “Work-over rig” is a major maintenance program required to provide a clean-out of the well to reduce the likelihood of clogging. Larger trucks and tankers are usually used.
- Most of the injected fluid is bought back to the surface over the following days and treated before being used again or disposed. This process has been used in about 5% of wells to date in the country.
- Additives are added to the fluid to improve the effectiveness of the fracturing; these constitute between 1-2% of the fracking fluid. In Australia they are required to be selected and managed to minimise potential impacts on the environment. Some examples include:
- The FSMP must identify: All additives to be injected as part of the fracture stimulation process; The Chemical Abstract Service (CAS) registry number for those additives; The volumes and concentrations of those additives; Potential risks to human health arising from exposure to those additives; The risk, likelihood and consequence of surface spills of these additives; Whether concentrations at the point of injection will exceed any required specifications outlined in the Code such as affects to groundwater, surface water use, drinking water and toxicity trigger levels, including reference to guidelines for testing methodology; The risk, likelihood and consequence of the injected chemicals affecting the beneficial use class of the target aquifer or any other aquifer; and How those additives will be stored and managed on site. This Plan must also identify how the water recovered from the CSG well after hydraulic fracturing is to be managed to ensure that the risks to health, safety and the environment are acceptable.
- Queensland and NSW have centralised responsibility for ongoing compliance monitoring of environmental approval conditions to a single agency. Many of these environmental conditions relate to the management of water to meet statutory enforceable quality parameters.
- Regulation- engineering solutions, monitoring & modelling, risk assessment, best management practices and regulation which encompasses planning to control issues of concern Generally the rates were very low, especially when compared to the volume of gas produced from the wells. O Other sources at the well pad including: · exhaust from engines used to power dewatering pumps; · vents and the operation of pneumatic devices; and, · equipment leaks. Emissions measured from these other sources were much lower than those reported for US gas production, and with concentrations considerably lower than regarded as reportable. It was suggested that these leaks were manageable through appropriate equipment maintenance.
- Under the EPBC Act Under the Government assesses and conditions actions which may affect the nine Matters of National Environmental Significance (MNES). For Example MNES 9- “a water resource, in relation to CSG and large coal mining developments (‘the water trigger’)”. States now have Assessment and Approval Bilateral Agreements with the Federal Government to consider the EPBC Act under State process. Under the EPBC Act, States and Territories are to request advice from the IESC when considering the “water trigger”. Each state has different policies and guidelines to prompt referral to the IESC, such as the Aquifer Interference Policy of NSW or the Underground Water Framework of Queensland. One of the jobs of the IESC is to set research priorities and advise the government on the bioregional assessments being undertaken. The Australian Government is undertaking a programme of bioregional assessments in order to better understand the potential impacts of coal seam gas and large coal mining developments on water resources and water-related assets. There are currently six bioregional assessments underway, one of these being for Gippsland.
- Both Queensland and NSW have dealt with CSG mining with underdeveloped legislative frameworks and clear “chains of commands”. They have had to adapt and develop “on the run” through lessons learnt. Now the three major projects of Queensland are almost fully in production stage and it is a little late to turn back the clock when it comes to conditioning under certain licencing, they are, however, implementing tighter management regulation and compliance. NSW is taking an approach of “wiping the slate clean” where they can and subjecting further exploration and development to a more mature and coherent legislative framework. Victoria has an opportunity to learn from both NSW and Queensland, and take time to develop a full, comprehensive and less complicated legislative environment which MAY allow for co-existence scenarios. Importantly, it also has an opportunity to make clear the communication lines and “chains of command” by identifying a single responsible agency for compliance and spokes person for landholders (ie. Land & Water Commissioner in NSW and Gas Commissioner in Queensland.
- Exploration under the MRSD Act or Petroleum Act does not require a planning permit under the Planning and Environment Act 1987. Planning permission, from the Planning Minister, is however required under the Act for production, unless assessed and approved under the Environmental Effects Act 1978, requiring preparation of an Environmental Effects Statement (EES). Exploration and production projects are exempt from requiring separate approval under the Environmental Protection Act 1970. These exemptions are based on the premise that these matters will be dealt with through Work Plans submitted to the Department of Economic Development, jobs, transport and resources. As a referral agency for the Work Plans and EES, however, the Environmental Protection Agency (EPA) assesses and advises on environmental management, monitoring and compliance of waste acceptance and treatment, air and water discharge, and noise and odour in accordance with the Act. Projects that could significantly affect beneficial uses of water resources in a regional or State context must be referred to the Minister for Planning, to determine if an Environmental Effects Statement (EES) is needed. This is not an approval process in itself, as in NSW and Queensland; rather it enables decision-makers to decide whether a project with potentially significant environmental effects should proceed. After the EES is completed and public comment received, the Planning Minister provides an assessment to the Minister for Energy and Resources
- NSW- a story of lessons learnt with reforms that include a tightening of legislative measures to protect agriculture. NSW has been mapped to identify “Biophysical Strategic Agricultural Land (BSAL)” and “Critical Industry Clusters” (CIC) – These are a localised concentration of interrelated productive industries based on an agricultural product that provides significant employment opportunities and contributes to the identity of the region (Equine & Viticulture primarily in the Hunter) They also have CSG Exclusion Zones Development of a State Significant Development (SSD) on any of the above will trigger the “Gateway Process” The Gateway Process Provide(s) an early, independent, scientific assessment of how a mining or CSG proposal will impact on the agricultural values of the land. Panel must assess the project against the Aquifer Interference Policy and consult with the Commonwealth’s IESC. Cannot stop development but can issue a “Gateway Certificate” with or without Conditions. NSW Agricultural Impact statements Risk-based assessment of impacts on agricultural land Required at exploration and production stages for certain developments Generally – Impacts on agricultural land and industries – Impacts on water – Social and economic impacts Compliance Under new reforms, a single agency (EPA ) in NSW is responsible for all compliance monitoring, auditing and applying penalties.
- There are now Landholder Access Codes of Practice in NSW and Queensland. In NSW and Queensland a written Landholder Access Arrangement must be in place for both exploration and mining activities. The company must cover any legal costs associated with this. In Victoria, however, this is not the case.
- By law, companies must pay landholders for ‘reasonable’ legal costs in obtaining initial advice about an LAA and compensation. There is no overarching capped compensation rate. Compensation can be negotiated for baseline assessments and any independent expert advice sought in this process. Landowners are entitled to compensation for the activity on their land and any loss experienced as a result of these activities, including payments to offset the inconvenience of noise, dust and deprivation of access to land. No State has a formula to calculate compensation. Guidelines for compensation outline a ‘good faith’ approach to a level that recognises the impact of exploration and production activities on the landholder. For anticipated loss, damage or inconvenience, an agreed amount if a certain event occurs can be negotiated; for example, where milk may have to be disposed of due to an untreated produced water overspill and possible contamination. This formula may be linked to the milk price at the time of the possible incident rather than milk price at the time of negotiating the agreement. Other considerations may include: Damage to land surface, crops, trees and other vegetation, and buildings and structures; Deprivation of the use of surface land, or blocked access; Loss of right of way or easement; Destruction, injury or disturbance to stock; and, Damage which is a consequence of any of the above. The landholder and company must sign an agreement that specifies the payable compensation. In-kind support from the gas company can also be written into any agreement. For example, additional earthworks for an effluent pond, laneways or silage pit, while the equipment is on site.
- NSW and Queensland now have independent spokes people in place to advocate and negotiate on behalf of landholders. These positions are also supported by independent statutory authorities, governed by boards.
- Before Negotiations Begin • Find out as much information as possible: – Exploration Licence Conditions – Any environmental assessments – Check necessary approvals – More information on what activities are planned – Speak to neighbours and community. Initial Approach Use it as a starting point for negotiations. • Use entitlement to legal advice. • Can attempt to negotiate for whatever landholder wants, but ... • Test = reasonableness • Potential for arbitration if no agreement. What to cover Baseline Assessments- Existing asset conditions (natural, infrastructure, stock) Insurances, securities & OH&S Access to property- time and seasonal restrictions, access routes, behaviours, areas to avoid (biosecurity) Location of Infrastructure- Use a farm map to plan how you can possibly gain some infrastructure positives from the siting of the well- for example, wells to be placed on the most unproductive areas of the farm, gathering systems located to follow tracks and fences, new access tracks to assist your farm operation, get them to put some dams in while the machinery is there etc. Protections- Environmental, Bio-security (ie. Food Safety QA requirements), Emergency Management, Reporting Incidents Communication- Point of contact for the company, Reporting of incidents, Documentation of chemicals, Documentation of activities and mitigations in place, compliance records