Plan to cool CSG heat

It could pave the way for fair compensation for landholders and restrict development to land approved for safe production.

The government's Gas Plan comes in the lead-up to the State election in March, as it looks for a circuit breaker to growing opposition, especially to existing exploration in Narrabri and Gloucester.

However, staunch scepticism from some quarters is set to remain (see story above right).

Resources and Energy Minister Anthony Roberts told The Land, "good science is back in the driving seat".

"The Gas Plan is all about government taking control, allowing the industry to develop on our terms," he said.

"This is a bold move for us to make."

Two key reforms will be of greatest interest to landholders:

l Creation of laws to guarantee the right to compensation for landholders hosting CSG, with the rate of reparation set by the Independent Pricing and Regulatory Tribunal (IPART); and

l Restriction of exploration to permitted areas, designated under a 'strategic release framework'. Titles would be issued following assessment against a triple-bottom line of economic, social and environmental factors.

Mr Roberts said the Gas Plan would adopt all 16 measures recommended by NSW's Chief Scientist Mary O'Kane, in her review of CSG (The Land, October 9, p1, 24-25).

Mr Roberts has already kicked the plan into action.

A Bill to expunge the 16 existing CSG exploration licence applications has passed the Upper House and is expected to be ushered through the Lower House this week.

A freeze on new exploration licences (established in March) will remain in place until the Gas Plan's strategic release framework is established.

Mr Roberts said the "next legislative step" when parliament resumed in 2015 would establish the strategic release framework.

It would include a ban on CSG in National Parks, a "use it or lose it" law for companies holding tenements, and require community consultation prior to development.

"Never again will a farmer find out about a (a CSG) licence when a company officer or lawyer knocks on their door," Mr Roberts said.

In her report, Professor O'Kane said CSG would have "unintended consequences", as a result of accidents, human error and natural disasters.

Mr Roberts said a new insurance regime for CSG would be developed.

"We are looking at adopting a three-layered policy of security deposits from companies, insurance coverage for individuals and environment rehabilitation funds."

Existing projects operated by Santos at Narrabri and AGL at Gloucester will continue to work through the approvals process as the government seeks to implement the Gas Plan.

"Projects already on foot will have to meet any new regulations," Mr Roberts said.

"As they go through approvals, at each point we will apply the new standards to them."

A process to streamline petroleum and mining Acts into one piece of legislation would begin next year, "but that could take one to two years", Mr Roberts said.

NSW Farmers president Fiona Simson has campaigned long and loud for stricter CSG regulation.

She was instrumental in gaining a pledge from Santos and AGL to only step onto private land with the landholder's consent.

Mrs Simson said the government's new policy provided her the most hope of any government document she had seen on the issue.

"It is a seismic shift in policy," she said.

"The Gas Plan is a not a panacea or a silver bullet to solve the issues of CSG.

"But it changes the paradigm that sets an expectation of a partnership and creates a pathway to a (system similar to) royalty payments."

NSW Farmers will push for the government to lock in a definite deadline for implementation.

"The devil is in the detail and (we) are yet to see the detail on the timeline," Mrs Simson said.