Australian governments require petroleum companies to conduct their activities to a high standard of environmental protection.
The petroleum industry's environmental record in Australia, particularly in offshore areas, has been exemplary. The objective based Environment Regulations (outlined below) provide companies with flexibility in managing environmental protection requirements.
Current Australian Government legislation relevant to environmental management of offshore petroleum exploration and development activities includes:
Petroleum exploration and development activities in Australia's offshore areas are subject to the environmental requirements specified in the Petroleum (Submerged Lands) Act (PSLA) and associated Regulations.
The PSLA contains a broad requirement for titleholders to operate in accordance with "good oil-field practice". Specific environmental provisions relating to work practices essentially require operators to control and prevent the escape of wastes and petroleum.
The Act also requires that activities are carried out in a manner that does not unduly interfere with other rights or interests, including the conservation of the resources of the sea and sea-bed, such as fishing or shipping. In some cases, where there are particular environmental sensitivities or multiple use issues it may be necessary to apply special conditions to an exploration permit area. The holder of a petroleum title must maintain adequate insurance against expenses or liabilities arising from activities in the title, including expenses relating to clean-up or other remedying of the effects of the escape of petroleum.
The Management of Environment (MoE) Regulations provide an objective based regime for the management of environmental performance for Australian offshore petroleum exploration and production activities in areas of Australian Government jurisdiction. Key objectives of the Regulations include:
A key feature of the Regulations is the requirement that an operator submit an Environment Plan to the relevant State/NT Designated Authority before commencing any petroleum activity. An accepted Environment Plan will establish the legally binding environmental management conditions that must be met by the operator of an offshore petroleum activity. An Environment Plan must:
The Environment Regulations and Guidelines on the preparation and submission of an Environment Plan can be accessed on the petroleum environment website at www.ret.gov.au/petenviron
While the MoE Regulations under the PSLA manage day to day petroleum activities and apply to any activity that may have an impact on the environment, the EPBC Act (Chapter 4) regulates assessment and approval of proposed actions that are likely to have a significant impact on a matter of National Environmental Significance (NES). Actions that are likely to have a significant impact on a matter of National Environmental Significance require approval by the Australian Government Environment Minister; the assessment process is administered by the Department of the Environment, Water, Heritage and the Arts. The EPBC Act does not replace the need for an Environment Plan to be approved under the PSLA (Management of Environment) Regulations before an action can proceed.
The EPBC Act places the onus on the proponent for ensuring an action is either approved or is unlikely to have a significant impact on a matter of NES. If a person is unsure whether approval is required, they should refer the action to the Australian Government Environment Minister for clarification as to whether the action would be a 'controlled action' under the EPBC Act. If an activity is not judged to be a controlled action, the proponent is free to carry out the activity, provided it is done within the parameters specified in the original referral.
Matters of NES protected by the EPBC Act are:
A range of EPBC Act Policy Statements are available which provide guidance on the practical application of the EPBC Act. The Significant Impact Guidelines 1.1 - Matters of National Environmental Significance is the primary source of guidance as to whether an action is likely to have a significant impact on a matter of national environmental significance. Details of the environment legislation and the steps to gain environment approval can be found on the EPBC Act website (http://www.environment.gov.au/epbc/index.html) or by calling the Department of the Environment, Water, Heritage and the Arts' Community Information Unit on 1800 803 772.
Potential proponents are encouraged to speak to the Department of the Environment, Water, Heritage and the Arts and the Department of Resources, Energy and Tourism at an early stage of their project planning.
Please note: In circumstances where multiple approvals are required under separate provisions of the EPBC Act the Department of the Environment, Water, Heritage and the Arts will endeavour to coordinate all approvals through a single application process.
The Department of the Environment, Water, Heritage and the Arts has developed seismic guidelines (EPBC Act Policy Statement 2.1 - Interactions between offshore seismic operations and larger cetaceans) to address the potential for interaction between offshore seismic exploration activities and whales and other cetaceans. The document outlines standards and procedures to be followed when undertaking seismic surveys, as well as advising operators conducting seismic surveys on their legal responsibilities.
Additionally, a general environmental approval or clearance from the NES triggers under the EPBC Act does not necessarily cover all interactions with cetaceans. A separate permit may be required from the Department of the Environment, Water, Heritage and the Arts when an action may interfere with cetaceans. 'Interference' involves causing a significant change in behaviour, including a significant deviation from their migratory path, or a substantial change in respiration or swimming pattern.
If a proposed seismic survey has the potential to result in a significant impact or interference with whales, the seismic guidelines will assist operators in preparing a referral and/or permit application under the EPBC Act.
The seismic guidelines can be found at: http://www.environment.gov.au/epbc/publications/seismic/index.html
A separate EPBC Act approval may also be required if an action is to be undertaken within any Marine Protected Areas (MPA). There are currently 26 MPA's in Australian Commonwealth waters in a diverse range of locations. This number includes 14 new reserves declared in 2007, being the Cod Grounds Commonwealth Marine Reserve off the NSW north coast and 13 new Commonwealth Marine Reserves declared in the South-east Marine Region.
Refer: http://www.environment.gov.au/coasts/mpa/index.html
Management Plans are required to be developed and implemented for each Commonwealth MPA. A management plan, among other things, establishes zoning arrangements and sets out how each zone within a reserve is to be managed, including specifying if mining operations (including petroleum) can be carried out in the reserve and the conditions that under which it may be carried out. Mining operations in Commonwealth reserves that are authorised by a prior usage right relating to the seabed that predates the proclamation of the reserve are not subject to the Commonwealth reserve provisions of the EPBC Act. Information on undertaking activities within a Reserve can be found in the individual Management Plan for each Reserve. Plans of management for current reserves can be found at:
http://www.environment.gov.au/coasts/mpa/index.html
Where a management plan does not exist for a Commonwealth reserve, including the South-east Commonwealth Marine Reserve Network, mining operations (including petroleum activities) can only be carried out under an approval by the Director of National Parks (DNP) issued under section 359B of the EPBC Act. Two classes of approval have been established for the process as outlined below:
Further information on interim management arrangements and the requirements for an approval can be found at:
http://www.environment.gov.au/coasts/mpa/southeast/interim.html
The South-east Commonwealth Marine Reserve Network is one of the key outcomes of large scale regional marine planning. Marine Bioregional Plans will be developed under the EPBC Act across the Commonwealth's five marine regions. The plans aim to provide greater guidance about marine environment conservation priorities and will assist in understanding the impacts of actions on the Commonwealth marine environment and determining the circumstances under which actions can take place. The process includes the identification and establishment of marine protected areas in the Commonwealth managed waters of Australia. Further information on the Marine Bioregional Planning can be found at:
http://www.environment.gov.au/coasts/mbp/index.html
Development of the draft legislation for the geological storage of CO2 has now been substantively completed with work under way on the drafting of the associated regulatory regime. Amendments to the Offshore Petroleum Act (OPA) were identified as the most effective means of implementing the new legislation, as petroleum and CO2 injection and storage industries will apply similar technology relating to access to the sub-surface pore space, often in overlapping areas. Following a period of stakeholder consultation, it is anticipated the legislation will be considered by Parliament and if passed allow for initial acreage release in 2008. The acreage release process is likely to be similar to the release process for petroleum acreage, including a period for submission of nominations of areas by interested parties.
For further information on offshore petroleum environmental assessment processes contact:
Manager
Environment Safety and Security Section
Resources Division
Department of Resources, Energy and Tourism
GPO BOX 1564
CANBERRA ACT 2601
AUSTRALIA
Telephone: +61 2 6213 7934
Facsimile: +61 2 6213 7818
E-mail: petr_envr@ret.gov.au