Action item 14.14

Progress

50%

50% complete.
Government approval for consultation on draft policy, guideline, framework, Bill.

That prior to the grant of any further production approvals, the Government imposes a non-refundable levy for the long-term monitoring, management and remediation of abandoned onshore shale gas wells in the NT.

Target completion date

Stage 3.
To be completed by November 2022.

Reform area
Ensuring accountable industry practice
Project action
Developing cost recovery arrangements
Lead agency
Department of Environment, Parks and Water Security
Department of Industry, Tourism and Trade
Department of Treasury and Finance

Action item update

Implementation progress

The NT Government will consult with industry and scientific experts to determine appropriate monitoring and remediation activities for abandoned wells, and to cost these accordingly.

In conjunction with the development and implementation of comprehensive financial assurance framework (refer to Recommendation 14.13), the government will amend the legislation to establish and administer a non-refundable levy prior to the grant of any further production approvals.

Government procured the services of ACIL Allen in September 2021 to provide advice on a financial assurance framework, which includes engagement with industry, environmental groups and other key stakeholders. This advice will be provided to government for consideration of an appropriate framework. This framework will be legislated in 2022.