These notes from the meeting have been sent to me for posting at HotCopper.
SMEDG 28th April 2016
The Rugby Club, Sydney
`Our Social Licence to Operate'
Visiting speaker- Kylie Hargreaves, Deputy Secretary, Department of Industry, Resources and Energy (DRE) -
Questions from the floor.
[1] From SMEDG - Opened by saying that they'd invited Kylie here as explorers are frustrated and would like to know why there is increased regulations which is increasing the burden on them.
[2] KH - The DRE's vision is to facilitate safe and sustainable management and use of our resources and energy for all the people of NSW.
[3] Previously the PM never wanted advice from DRE, the public were saying that no one trusts the mining industry (industry) and that we don't add any value and the compliance record was terrible.
[4] I know that mining is the major contributor to the economy but who are the DRE's stakeholders - Industry, Greenies, NGO's-shut the gate, NSW Farmers etc, energy consumers, LGA's, landholders, farmers.
[5] When SMEDG came to collect me I was answering a tweet because someone was raging about DRE is not meeting the rehabilitation requirements in NSW!
[6] The regulations framework has not been updated for many years and needed an overhaul for the benefit of all stakeholders, e.g. the well integrity regs and the water bore drilling regs are like chalk and cheese- they needed updating.
[7] In 300 mining/exploration titles held there were 900 none compliances-so whats the community going to say about that!!!
[8] Industry asked for longer licence periods so we increased it to 6 yrs-
[9] We have decrease reporting by creating the work program and combining all required annual reports into one.
[10] Fees and levees will be the next issue to tackle. There are currently 74 different fees and levees on the books.
[11] The thing is that there are so many bigger issues that need dealing with at the moment to gain our social licence to operate. I need to focus on the big issues rather than the small ones.
[12] Question - Glad about the 6yr licence period, but I have a problem with the new rules-they are so black and white and no licence issues are that straight forward.
[13] KH - I agree that very few cases are black and white and dealing with the grey areas has not changed.
[14] Question - Sovereign Risk - we need to make NSW competitive. Many examples in the world - esp in Canada and Asia where risk is low.
[15] KH - We need a Social Licence for the whole of NSW, we might have a low risk in places like Cobar but I am looking at the whole state.
[16] Question - Why do your KPI's (key performance indicators) only cover from title application to offer, when it should go from application to granting - there are 100's EL's that are sitting waiting to be granted.
[17] KH - We need to achieve our current KPI's before we can amend them. The KPI's are being reviewed, but they have to be met. She asked ------ about previous dealing about this - ------ said they asked for a review of the KPI for Title Application to Granting in July 2014 and are still awaiting a response.
[18] Question from a lawyer - What is DRE doing to cap costs for Land access? There is currently no cap for appeals to court. A landholder could keep going and the explorer wears all the cost.
[19] KH - This is still not finalised - it should get into the system in July.
[20] Question - It is a huge challenge that people don't understand coal seam gas.
[21] KH - I go to work every day because I think I can make a difference. The gas situation keeps me awake at night. If Santos doesn't come on line we will have to buy gas from overseas. We are trying to get the information out there - CSIRO, Minerals Council, so many organisations are advertising information about gas. It doesn't seem to be working - I cant seem to find a silver bullet.
[22] Question - What does good Social Licence look like to you?
[23] KH - `North Parkes' its such a great place, so many people in different parts of the community are so supportive. The company have made a huge effort over a long period of time and the current climate has been a long time coming.
[24] Question - How can you assess Social Licence to Operate in NSW?
[25] KH - We have a clear environmental framework, but social is a bit fuzzy. The Coal PAC (Planning Assessment Commission) had 83% support from community but still got knocked out - what can you do??
[26] Question - ------- Australia is missing the point. There is no political continuity. Until the government has the will to do the right thing, its not going to work! The Fraser Institute says Australia is the best place to explore in the world - not NSW.
[27] KH - What the Govt think is the right thing may not be the same as what industry thinks.
