Queensland Minister for Natural Resources and Mines Andrew Cripps confirmed that the Newman Government was determined to reduce “˜red’ and “˜green’ tape by 20 per cent by 2018, as well as announcing a call for tenders via a non-cash competitive system in the release of 8,700 sq km of greenfield acreage. Tender applications will close Friday 22 November 2013.
Mr Cripps added that he had seen improvements with the way the CSG industry has engaged with communities, but reiterated the importance of having appropriate regulatory framework.
Mr Cripps also confirmed that the Government had no plans to reserve acreage for domestic gas supply, nor move to a domestic gas supply policy.
NSW Minister for Resources and Energy Chris Hartcher followed on from Mr Cripps, emphasising that “There is enormous lack of faith in NSW” from the community in relation to the NSW CSG industry.
“There is a sense in the community that they were being taken for a ride with certain companies,” Mr Hartcher said.
Mr Hartcher continued saying that this lack of faith was due to the “previous government tainting the licensing process” and that the “industry did not engage in debate” when it was needed.
Referring to the current review of CSG-related activities by NSW Chief Scientist and Engineer Professor Mary O’Kane, Mr Hartcher said “I hope that the Chief Scientist’s report will give an intellectual and rational framework for proper debate in NSW so that people will be able to see exactly what is at stake, where the risks are, and how those risks can be managed.”
Professor O’Kane will report on her findings at the end of July 2013.
“The Government acknowledges that its restrictions are not easy for industry to live with, but the restrictions are necessary,” Mr Hartcher said. “We are well aware of the challenges, but well aware of the importance of social licence to operate in NSW.”
Speaking about the future gas supply in NSW, Mr Hartcher said that there was no argument for gas reservation in NSW, when “NSW is only producing 5 per cent of its own gas”, but was still confident that NSW could meet the supply challenge that is expected in 2016-17.
Mr Hartcher said his government was determined to co-operate with the Federal, Victorian and Queensland governments on gas supply, but that they “must work towards it within regulatory framework and with community support”.
“Gas is not an optional extra – it is fundamental and we need an affordable supply,” he said.