Fracking Inquiry Update, page-2

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NT frac inquiry in final stages
THE Northern Territory government expects to begin deliberation into the future of fraccing in the Top End soon, with the independent scientific inquiry into unconventional developments flagging it will deliver its final report in March.

The news comes following the submission of draft social impact assessment, which had been delayed and not included in the draft final report that was published last month due to issues with the work of one of the contractors that led to a delay.

The social impact assessment framework was delayed when the inquiry discovered that Coffey Services' sub-contractor, Cross Cultural Consulting, had compromised its community engagement work, which was then rejected.

The summary findings of the SIA are based on a case study of a conceptual development in the Beetaloo sub-basin are that the social impacts can be managed with appropriate strategies and programs.

The SIA has made 12 recommendations to help inform decisions on the social, economic and cultural impacts of an unconventional gas development including adoption of the SIA framework proposed by the University of Queensland Centre for Social Responsibility in Mining.

Inquiry chair Justice Rachel Pepper said Coffey was asked to use the Beetaloo Sub-basin as a case study to show how the proposed framework might operate.

"The Beetaloo Sub-basin is an area of the Northern Territory where exploration for onshore shale gas is most advanced, and includes towns and communities typical of urban, rural and remote areas of the Northern Territory, "Justice Pepper said.

"This made it the most appropriate case study to test to efficacy of the proposed framework.

"The case study sought to demonstrate how the framework could operate, including how risks are to be identified, assessed and managed."

The final report is due to be completed pending the final round of public hearings being held in early February.

The draft report found the risks of fraccing can be reduced to "acceptable" levels, and suggested some 120 recommendations to land, water, and to protect Aboriginal heritage and culture.

The recommendations include requirements for regional environmental and baseline assessments before any production licences are granted, which could delay approvals of production licences by years.
RBC Capital Markets believes, assuming there are no major changes between the draft report and the final report, it could pave the way for the NT government to lift the moratorium from mid-2018 assuming the government finds the political will.

The full or partial lifting of the moratorium would likely be accompanied by a recommendation for additional legislation.

While enactment of legislation may be an additional hurdle for unconventional developers in the Territory, including Origin Energy and Santos, RBC anticipates transitional arrangements would be put in place to allow a resumption of fraccing on a limited scale during this process.

Origin successfully fracced one well before the ban came in over the territory.

That work suggested the Beetaloo Basin is attractive for unconventional developments, however work over several years has suggested the NT basins offer early stage indications of promise, including the Greater MacArthur Basin.

The NT moratorium was a pledge in the 2016 election made by Chief Minister Michael Gunner.