1. Coal Seam Gas VPELA Forum 16 April 2013 Pierre Andipatin Earth Resources Development Division

2. Agenda Gas in Victoria Current Regulatory Framework National Initiatives –National Partnership Agreement –National Harmonised Regulatory Framework –Multiple Land Use Framework –EPBC amendments

3. Why does Victoria need gas? Secure and affordable gas is important for the community and industry and for a low emissions energy future Natural gas is a cheap, reliable and safe source of energy Electricity produced from natural gas has lower carbon dioxide emissions than coal The consumption of gas in Victoria is expected to double by 2030 Victoria may need to source gas from other states, if demand can’t be met The current focus in Victoria is understanding the potential for unconventional gas (tight/shale and coal seam gas)

4. Gas in Victoria Without significant additional gas demand exceeds supply from 2017 Demand

5. What are the options?

6. Agenda Gas in Victoria Current Regulatory Framework National Initiatives –National Partnership Agreement –National Harmonised Regulatory Framework –Multiple Land Use Framework –EPBC amendments

7. Current framework for CSG General prohibitions against pollution (EP Act, Water Act) State Environment Protection Policies Well integrity & fraccing Enviro & water management on site/at surface Land access, consent, compensation (Mineral Resources (Sustainable Development) Act 1990) Licensing of dam and bore construction (Water Act) Licensing of emmissions and discharges (EP Act) Licensing of water extraction (Water Act) Native title Native vegetation Heritage (Aboriginal & European) Environment Effects Statement (EE Act) Planning approvals (P&E Act) Science work - IESC Bioregional Assessments - IESC strategic projects - National reference group - Victorian scientific work

8. Exploration Activities Low Impact Exploration Ground Disturbing Exploration Use of ‘non-mechanical’ hand tools: e.g. rock chip sampling Surface / underground mapping Drilling Flow testing Office studies Geological & Geochemical sampling Work Plan Required

9. CSG Production Commercial production Large number of wells. Pipelines & other infrastructure Wells operate for 10 to 20 years Rehabilitation Upon completion wells are plugged with concrete and abandoned Infrastructure is removed Land is returned to original or agreed state

10. Recent Victorian CSG response The Government announced reforms in August 2012 to current policy for onshore gas exploration: Hold on approvals to undertake hydraulic fracturing ('fraccing') Hold on the issuing of new exploration licenses for CSG Ban on the use of BTEX chemicals in hydraulic fracturing Strengthen resource policy and legislation to ensure better consideration of mixed land use issues Use of impact statements at the exploration stage where there is potential for a significant impact on the environment

11. Land Use Coexistence between Agriculture and Mining Prior to commencing work, a licensee must: Obtain landowner consent (informed verbal or written), or Make and register a compensation agreement For exploration impact statements are required

12. Water Allocation/cap Water management at surface Connectivity between aquifers (scientific understanding) Chemical contamination

13. Hydraulic Fracturing Injecting a mix of water, sand & chemicals to create a fracture to allow gas to flow Commonly used technique in Oil & Gas sector BTEX Chemicals banned and hold on approvals in place

14. Environmental Impacts Essential to consider & understand any environmental impacts Bioregional Assessments EES

15. Engagement & Consultation Fact Sheets Briefings to Key Stakeholders (eg. Local Government) Community Information Sessions Earth Resources Ministerial Advisory Council We are committed to ensuring that our community and stakeholders are informed and engaged in the conversation regarding Coal Seam Gas.

16. Agenda Gas in Victoria Current Regulatory Framework National Initiatives National Partnership Agreement National Harmonised Regulatory Framework Multiple Land Use Framework EPBC amendments

17. National Initiatives National Partnership Agreement Independent Expert Scientific Committee $10.13M Funding National Harmonisation Framework A regulatory guidance document Consultation Dec ‘12 – Feb ‘13 Expected to be presented to SCER Ministers mid ‘13 Multiple Land-Use Framework Sets out best practice multiple land use principles In further development in consultation with land use, regional and planning agencies EPBC Amendments

18. National Partnership Agreement Improved scientific knowledge to inform decision makers Bioregional assessments Strategic projects National reference group Project level referrals to IESC Funding for Victorian specific scientific work

19. National Harmonised Regulatory Framework Regulatory guidance document Key areas of community and scientific concern: 18 leading practices / 19 outcomes

20. Multiple Land Use Framework Developed by SCER (energy and resource Ministers) Aims to ensure multiple / sequential land use is part of dialogue / toolbox for decision makers when considering resource development Contains best practice principles for land use

21. EPBC Act amendments Makes water a MNES and projects subject to assessment against controlled action criteria / requirements Provides an additional layer of environmental assessment and approval Duplication of existing processes?

22. Summary Gas is important for meeting Victoria’s energy demand CSG is one possible source of gas for Victoria’s future CSG has numerous issues which government is considering A range of national initiatives are supporting improved understanding of water resources and best practice regulation

23. Thank you www.dpi.vic.gov.au/ earth-resources www.dpi.vic.gov.au/ earth-resources