Keys to successful negotiation of indigenous land use agreements and building consent for the development of natural resources, The Great Sandy Desert Project, a case study

Abstract

Theia Energy Pty Ltd discovered a substantial hydrocarbon resource in the Canning Basin, NW in Western Australia, just 150-km SE of Broome. Since 2014, Theia Energy has built a robust working relationship with the traditional owners of the land that hold native title over their permits. This relationship has developed through negotiation meetings, on-country cultural heritage surveys and cultural awareness training. The relationship has culminated in the negotiation of indigenous land use agreements (ILUA) with the Karajarri People that manage the impacts of potential development of the resource including the impacts of hydraulic fracture stimulation, and provide significant economic development opportunities. The consistent exchange of information and views has developed mutual understanding and respect allowing for the effective and pragmatic treatment of risks to allow for the exploration, and if successful the development, of the onshore Canning Basin. The Great Sandy Desert Project has the potential to bring substantial benefits to regional communities and is significant for economic development of the West Kimberley, state revenue and national liquid fuel security. This study discusses important lessons learned in building trust with traditional owners and custodians of the land and how cultural values can be protected while providing social and economic opportunities for Indigenous Australians in a sustainable and culturally appropriate way. It reflects on the outcomes of the many scientific inquiries into hydraulic fracture stimulation and the perception of risks and impacts of traditional owners which must be addressed in a genuine, meaningful and effective way. It also sets out how traditional owners have, through the negotiation of the ILUA with Theia Energy and in the absence of clear policy from Government, chosen to establish their own system of regulation and economic participation in the project to address and manage risks and impacts from the development of resources on their country.