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Category: Oil and Gas / Government and Politics

Fracking moratorium takes effect in NT

Wednesday, 14 Sep 2016 09:34:14 | Avani Dias

NT Chief Minister Michael Gunner announces the fracking moratorium. (ABC News: Avani Dias)

A moratorium on hydraulic fracturing, or fracking, begins today, with Northern Territory Chief Minister Michael Gunner announcing the move at an oil and gas summit in Darwin.

"I announce that the Government will as of today implement this election commitment to introduce a moratorium of hydraulic fracturing of the Territory's unconventional gas resources," Mr Gunner told the South East Asia Australia Offshore and Onshore Conference.

Mr Gunner, however, did not give land owners an assurance that the moratorium would stop mining companies from accessing their land to explore for gas.

"There'll still be exploration in the Northern Territory on a whole range of different permits from mining to other things and we do want mapping to happen for example or other activities in the general exploration field," he said.

"The moratorium includes exploration - you cannot hydraulically frack unconventional gas reserves for exploration - but general exploration activities which a lot of people do, not just onshore gas companies for unconventional gas reserves, that's all fine, you can explore the Northern Territory."

Draft terms of reference released

A draft terms of reference on the scientific investigation into the potential impacts of fracking were also launched today and Mr Gunner urged the public and industry to comment.

"You know better than anyone that our continued ability to expand the resources industry is completely dependent on the social approval and license of the people of the Northern Territory," he told those at the oil and gas summit.

External Link: Shale gas resources in NT (Source: NT Department of Mines and Energy)

"If we do not gain and keep the trust of Territorians we will not be able to progress our economic agenda."

Mr Gunner said a panel of experts would investigate fracking in the NT and they would decide how long the moratorium would last and if it would result in a permanent ban.

"This body of work can be done in less than a term [four years] ... but we've tasked the independent inquiry to provide advice as one of its first acts about how long that independent inquiry will take," he said.

According to the terms of reference, the panel undertaking the inquiry would assess the scientific evidence to determine its potential effects on groundwater, surface water, geology, ecosystems, human health, current and future land uses, emissions and ecotoxicology.

The panel will also try to ensure the industry meets best practice in relation to fracking.

Federal government 'does not support blanket bans'

But the Federal Minister for Northern Australia, Senator Matthew Canavan, said he did not support blanket bans in states and territories.

"Recently the Australian Corruption and Consumer Commission did a big report on gas markets and they concluded that these blanket bans aren't the right approach and primarily it's because we really should be looking at projects on a specific basis," he said.

"It would be strange to adopt a one-size-fits-all approach to this industry where there'll be different circumstances in different areas."

The peak gas industry body questioned the need for another inquiry into fracking.

"We believe the science has been investigated many times and we're very confident that any robust independent analysis of the industry will prove that it can be conducted safely and sustainably," Matt Doman from the Australian Petroleum Production and Exploration Association said.

Mr Doman called for the moratorium not to be delayed.

"Our industry will deliver substantial jobs into the NT, a report by Deloitte identified 6,300 jobs in a likely scenario of onshore gas development here," he said.

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