Harmonisation of unconventional gas resources (UGR) regulatory frameworks in Australia: is there a will or a way?

Abstract

This thesis aims to determine whether harmonisation of underground water regulatory frameworks, within the context of unconventional gas resources (‘UGR’), is possible. This is particularly important given that UGR regulatory frameworks between the states differ. Economic theory considerations provide the lens through which harmonisation is viewed and also lend support to the thesis argument of a legislative framework that optimises these considerations.There are two fundamental principles that form the basis for the arguments advanced within the thesis. First, the balance between economic profit and environmental sustainability can be achieved if the efficiency criterion is fully realised within the principles of ecologically sustainable development (‘ESD’). By adopting the neoclassical approach to economics, the argument is advanced that harmonisation between the states could occur through standardised accounting methods, market approaches and similar, if not identical, governance frameworks. A states’ only intergovernmental agreement is suggested as a means to achieve this. It is against this backdrop that the second principle is advanced: for harmonisation to truly occur between the states, an adaptive governance framework must be embedded within states’ water planning instruments.To determine the effectiveness of these two propositions, the Cooper Basin (‘the Basin’), which overlaps the states of South Australia and Queensland, is used as a case study. Within the Basin’s parameters, a comparative analysis of states’ legislative objectives, baseline assessment framework and statutory water plans is undertaken to determine key indicators for harmonisation.This conjunction of economic theory and law frames the subsequent arguments in this thesis, the first of which is the utilisation of the fourth principle of ESD – improved valuation and pricing – to achieve harmonisation. It is determined that through a standardised approach to economic accounting within economic assessments of UGR projects, a coherent legislative framework could be realised. Subsequently, the role that institutions play in achieving efficient baseline data markets is examined. Here, two options are presented: ‘free trading’ and ‘regulated trading’ within a market. The thesis proposes the method of ‘regulated trading’ to best attain efficient results within the Basin based on the economic principles of NewInstitutional Economics. Lastly, the concept of adaptive governance is introduced within states’ water planning frameworks. It is reasoned that through the application of an evidence-based approach, adaptive governance framework and proposed regulatory methods, harmonisation could be achieved within the Basin through a states’ only intergovernmental agreement.This consolidation of economic theory and law is undertaken and interwoven throughout the thesis. In doing so, it is suggested that harmonisation between the states is possible, provided that economic principles that frame the legislative frameworks are substantively considered in the assessment process of a UGR project.