ENVIRONMENTAL REGULATION OF THE UPSTREAM GAS INDUSTRY IN QUEENSLAND: A NEW APPROACH

Abstract

The environmental regulation of the upstream gas industry in Queensland is based on the principles of ecologically sustainable development. There is an increasing emphasis on meeting the expectations of the general community with respect to impact assessment, the environmental performance of the industry and the ability of government to provide effective regulation. In Australian States, regulation of the industry is generally characterised by a combination of industry self-regulation and government licensing and co-regulation policies.Environmental administration and regulation in Queensland, that is, impact assessment, planning and monitoring of performance, is undertaken by the Department of Mines and Energy, primarily through Regional Offices. Direction is provided principally by Department policy and the Environmental Protection Act.Case studies are presented which illustrate the impact assessment processes for three different types of gas development projects: gas field development in southwest Queensland; construction of a gas pipeline; and development of a coal seam methane project.The Queensland Government is currently developing an Environmental Protection Policy for the upstream petroleum industry (the EPP (Petroleum)). The process of developing the EPP has involved considerable community and stakeholder input to encourage acceptance of the Policy by all parties. The process has identified several key issues for industry including: the need for multiple land use; the incremental nature of petroleum development (including the gas industry); the need to strengthen the impact assessment process; the need for an integrated, single agency regulatory regime; the need for greater accountability of both industry and government; and the need for adequate resourcing of environmental regulation.A possible new regulatory regime for the industry in Queensland, based on the co-regulation model, may include a two-tier system of impact assessment and a combination of compliance for operations with Codes of Practice or a project specific Environmental Management Plan and licences for emissions and certain high impact activities.The administrative framework would be provided by the Petroleum Act which is currently undergoing a major review.