Eleventh Hydraulic Fracturing Implementation progress update

Issued 06 Dec 2022

Hydraulic Fracturing Implementation progress update May to November 2022

The Inquiry made 135 recommendations, three of which were separated to assist implementation planning, resulting in 138 recommendations to be reported on.

This progress update provides detail on the status of implementation from 1 May 2022 to 11 November 2022.

As at 11 November 2022, 103 of the 138 recommendations are completed. Updates to the implementation status of individual recommendations can be found on the Onshore Gas website by clicking on the relevant recommendations.

Highlights from the progress achieved in this reporting period are summarised below:

  • The SREBA is a set of extensive studies over an area of 86 353.6 km2 to address knowledge gaps and establish appropriate baselines against which the potential impacts of proposed onshore gas activities may be assessed.

    A SREBA data management platform has been developed to ensure relevant results, reports and information are publicly available.

    The SREBA consists of six study domains: water quality and quantity; aquatic ecosystems; terrestrial ecosystems; methane and greenhouse gas; environmental health; and social, cultural and economic.

    Study updates:

    1. Water

      Water quality and quantity studies to further develop the modelling, and a detailed gap analysis of water-related information for the Beetaloo Sub-basin were completed. New water monitoring bores were established during 2021 and drilling for bores to fill information gaps in other parts of the basin is now complete. An extensive array of existing bores were tested for water quality during 2021 and 2022.

    2. Terrestrial ecosystems

      Mapping of regional ecosystems is complete. Targeted surveys for some threatened species were undertaken in cooperation with the Commonwealth Government’s Geological and Bioregional Assessment program, which funded additional ecological studies. Field work wrapped up in July 2022, and data collation and analysis is now complete. The baseline report will define areas of high conservation value in the Beetaloo Sub-basin.

    3. Aquatic ecosystems

      Field work finished with a final targeted survey of the Gulf Snapping Turtle completed in September 2022. Mapping and classification of aquatic ecosystems is complete, along with data analysis and the baseline report. Stygofauna studies have been completed and the baseline report and data are also complete. Stygofauna were sampled from 26 bores and two springs in the region during 2019. 87 sites were sampled during 2021 and 2022 to ensure a comprehensive geographic and sampling depth coverage across the study region.

    4. Environmental Health

      Desktop studies analysing existing data on water quality and soils are complete along with baseline reports. Air quality and dust monitoring devices have been installed across the region at five locations: Daly Waters airstrip, Mataranka area, Elliot, Bulwaddy Conservation Reserve and Manbulloo station, with data collection ongoing. The population health study has established relevant indicators and a framework for future monitoring.

    5. Greenhouse gas

      All field work is complete, with CSIRO undertaking on-ground sampling through 2021 and 2022. Data analysis is completed and baseline reports are being finalised.

    6. Social Cultural and Economic

      During 2021, University of Queensland (UQ) developed a Scope of Works approved by the UQ Human Research Ethics Committee and endorsed by the Minister for Environment in early 2022. Approximately 40 key stakeholder groups, including land councils, Aboriginal Areas Protection Authority, NT Government departments, regional councils, industry and business organisations, Native Title holders, pastoralists, interest and environment groups were engaged in the study. Completed in September 2022, this work included participatory workshops to co-design local relevant indicators and targeted stakeholder engagement to contribute to the data collection and build community profiles in the Beetaloo region. UQ is finalising the data analysis and its baseline report.

    Beetaloo Regional Reference Group

    The Beetaloo Regional Reference Group (the Reference Group) is a community consultative forum for the SREBA studies within the Beetaloo Region. The Reference Group met in November 2022 to discuss preliminary findings with the SREBA study teams, communication approaches and appropriate dissemination methods.

  • Agencies continue to regulate the onshore petroleum activities while progressing recommendations.

    Petroleum Act 1984 amendments

    Amendments to Petroleum Act 1984 will significantly improve the regulatory framework for the onshore petroleum industry and the ability to manage environmental impacts and risks to acceptable levels in a manner contemplated by the Inquiry. Amendments passed during November 2022 Sittings include:

    • adopting the Commonwealth framework on human health risk assessment (Recommendations 7.4 and 10.1).
    • new charges to recover the cost of undertaking the SREBA studies, including the Strategic Regional Assessment (Recommendation 12.2);
    • new charges to recover the cost of regulating the onshore gas industry (Recommendation 14.1);
    • a financial assurance framework to improve securities for onshore petroleum operations (Recommendation 14.13);
    • an orphan well levy and fund for government to monitor and secure the integrity of any orphan wells (Recommendation 14.14);
    • repeal of Schedule of Onshore Petroleum Exploration and Production (Recommendation 14.17);
    • a merits review for decisions (Recommendation 14.24);
    • cost rules changes so that litigation brought forward genuinely in the public interest may not be subject to a costs order (Recommendation 14.25);
    • increased sanction powers available to the regulators (Recommendation 14.29);
    • introduction of a civil enforcement proceedings (Recommendation 14.31);
    • reversing the onus of proof and creating rebuttable presumptions for pollution and environmental harm offences (Recommendation 14.32);
    • increased penalties and offences to modernise criminal offences (part of Recommendation 14.33).

    Environment Protection Act 2019 amendments

    Amendments to the Environment Protection Act 2019, include establishing an environmental chain of responsibility framework for gas companies and related parties to ensure compliance with environmental obligations.

    Amending legislation was passed in November 2022 Sittings, following consultation.

    Water Allocation

    The declaration of the (extended) Daly Roper Beetaloo Water Control District (WCD) to encapsulate the Beetaloo resources has been completed, along with the Gulf WCD declaration and Beneficial Uses declaration. Water allocation plans are being prepared for the Beetaloo Sub-basin to enable the onshore gas industry to access groundwater for gas production within sustainable limits.

  • A number of other implementation priorities were the focus for this reporting period.

    Emissions (Recommendation 9.8)

    The NT Government’s final position on implementation of Recommendation 9.8 will continue to evolve as new information comes to hand, noting the Department of Environment, Parks and Water Security has consulted with the onshore petroleum industry on the management of greenhouse gas emissions during exploration and production during this reporting period to inform a final policy position.

    The Northern Territory has negotiated a 10-year energy and emissions bilateral agreement with the Commonwealth Government to provide an agreed framework to partner on delivering emissions reductions through investment in renewables and low emissions technologies. This agreement specifically commits to working together on addressing Recommendation 9.8.

    Infrastructure and Planning

    A series of studies were completed on infrastructure and logistical requirements for the exploration and development stages in the Beetaloo Sub-Basin under a range of supply and demand development scenarios. The studies engaged extensively with key stakeholders to test assessments and analysis, and provide critical feedback.

    The Northern Territory and Commonwealth governments have jointly funded $367 million in road upgrades to the Carpentaria Highway, sections of Stuart Highway, Buchanan Highway, Western Creek Road and Gorrie/Dry Creek Road with the ‘Roads of Strategic Importance, Northern Territory Gas Industry Road Upgrade Program’ established to deliver these priority road upgrades throughout the Beetaloo Sub-basin.

    In February 2022, Government released an independent review of land development requirements in Darwin, Alice Springs, Katherine and Tennant Creek, Bringing Land to Market by Mr Dick Guit OAM, which considers the long term impacts to and requirements for housing in Tennant Creek and Katherine, the major regional centres expected to service development of the Beetaloo Sub-basin.

Independent Oversight progress update

The Independent Overseer continues to provide the Chief Minister and NT Government with independent advice on how the implementation of the recommendations from the Inquiry is progressing and being managed. The nature of this role requires the Independent Overseer to remain at arms-length from day-to-day decisions and processes relating to implementation.

Dr David Ritchie, has provided comment on the progress of implementation outlined in the latest progress update.

Read Dr Ritchie’s full advice PDF (367.8 KB)

What’s next?

All remaining recommendations are in progress and expected to be implemented by the end of year. In early 2023, the NT Government will carefully consider the actions taken to implement all Inquiry recommendations and will need to be satisfied that the risks identified by the Inquiry have been sufficiently mitigated.

Want to find out more?

To keep up to date with the status of implementation of each recommendation, sign up for regular updates on the website hydraulicfracturing.nt.gov.au/contact or by email hydraulic.fracturing@nt.gov.au