Structural reform and petroleum (environment) regulations in the Northern Territory

The opportunity for onshore oil and gas development in the Northern Territory (NT) has grown exponentially in recent years, driven by the NT’s expansive shale gas resources in the McArthur Basin and elsewhere. Such resources provide many potential benefits to the territory’s economy, including job creation and clean, cost-effective energy generation opportunities. Critical to the successful development of the industry is a legitimate social licence to operate with the community, for which strong environmental regulation is a key enabling factor. Communities must be assured that oil and gas activities can provide ecologically sustainable development, and a transparent, evidence- and risk-based framework is the best way to achieve this. Following the NT Inquiry into Hydraulic Fracturing by Dr Allan Hawke in November 2014, and further review of the environmental assessment and approval processes in May 2015, the NT Government has implemented structural reform and developed contemporary outcome-focused Petroleum (Environment) Regulations to balance environmental protection with the economic development benefits offered by the onshore gas industry. Those objectives include that petroleum development in the NT: is consistent with the principles of ecologically sustainable development; reduces risks and impacts to levels that are as low as reasonably practicable and acceptable; ensures meaningful engagement with stakeholder; and, provides for transparency of decision-making and publication of approved environment management plans in full. This extended abstract provides an update of the reform of the regulatory framework, the regulatory objectives, the regulations by which they’re achieved, and the consultation process followed to gain wide stakeholder support. It will also highlight that strong regulations alone do not provide a robust regulatory framework, and the steps the NT Government is taking to achieve its objective. The regulations are planned to come into force in the third quarter of 2016. Meanwhile, a full review of the NT Petroleum Act and development of Petroleum (Resource Management) Regulations that takes into consideration the recommendations from the Hawke Inquiry into Hydraulic Fracturing in the NT is underway.