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Coal Seam Gas:

Why all the fuss?

Warwick Giblin FEIANZ

Engineers Australia Symposium

10th July 2012

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1. Lack of adoption of the precautionary principle

2. Technological change - internet3. Farmer – company interaction4. Proponent assumed having law & govt

policy on its side was enough to win the day

5. Traditional measure of ‘wealth’ hides environmental & social costs & benefits: not suitable now

Why the Fuss?

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My farm is my ‘castle’ & home (ambience, spirit) My land is everything/more than a workplace A stranger appears Stranger is big, strong & from a different world Little time to build a trusting relationship Farmer unsure, lots of unanswered questions

eg who can we trust about groundwater impacts?What is fair compensation?Is the access agreement fair?

Stranger ‘throws his weight around’ Farmer digs his toes in - CONFLICT

The Farmer’s View

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We have followed due process; have a licence to explore/produce. Done what Govt asked.

The law to enter farmland is on our side We have commercial pressures to develop the

project; get on-stream & produce revenue Production will lift Co value & share price We’ve offered compensation, farmers not

playing fair Royalties & jobs for the State – surely a winner! Green energy source Company dig its toes in - CONFLICT

Gas Company’s View

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The usual view of the World…

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Farmers have the internet & smartphones! Technology has enabled bottom-up

communication ie farmers linked up to form a critical massYou Tube = Filmmaker Mobile phone= Paparazzi Twitter/Blog= Reporter Companies thought complying with the law

& $$ promises was enough Biggest flaw: Precautionary Principle ignored

Why has the impasse happened?

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If an action or policy has a suspected risk of causing harm to the public or to the environment, in the absence of scientific consensus that the action or policy is harmful, the burden of proof that it is not harmful falls on those taking the action.

Definition: Precautionary Principle

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FIRST: Determine capacity of the natural systems especially the hydrogeology

Goal: maintain long term sustainable resource use:a) Water resources/aquatic ecosystemsb) Agric land c) Biodiversity – veg management

THEN - regional land use planning based on values & risks of ALL the resources

Apply Precautionary Principle in Assessing Natural Resources

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Defn: A measure of socio-political sentiment towards a project, company or industry

Co-ownership: high trust & active support

Approval: support

Acceptance: listen & consider; wait & see

Withheld/withdrawn: opposition

‘Social Licence to Operate’

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Embrace Precautionary Principle

Independent baseline, catchment wide studies, with stakeholders involved, to determine risks of serious damage to g/water & s/water quantity & quality

Cumulative impact assessment

landholders/farmers entitlements need legislative protection

Community engagement before devel concept locked in

True sustainability – price environ costs & benefits

Trust & Transparency – Needs Proponent Leadership

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A better way to see the world

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GDP ignores costs of environmental damage & resource depletion

‘defensive expenditures’ such as pollution clean-up costs & vehicle accident repairs increase value of GDP

Build social wellbeing & ecological health measures into ‘progress’ mix

GDP/”wealth” not = Quality of life

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GDP wrong metric, short term focus Measure for both today and future Tax ‘bads’ (pollution), not the

‘goods’(income) Need metrics for social wellbeing + healthy

ecosystems + long term economics, eg:

• UN & UK Green Economy Initiatives• UN Human Development Index• Genuine Progress Indicator (US think tank)

Measures to assess ‘true’ progress

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NSW Upper House Inquiry Code of Practice for CSG exploration Applications for CSG exploration licences on public exhibition Agric Impact Statement req’d for new CSG extraction applications Aquifer Interference Policy Ban on toxic chemicals (BTEX) in fraccing process Ban on use of evaporation ponds for production waters New well design specs Strategic Regional Land Use Plans - Upper Hunter & Liverpool Plains: Panel to

assess proposals in high value agric areas before DA submitted No more major cash payments for exploration licences Guideline for community consultation re exploration End to the 5 yr 10% royalty holiday Land & Water Commissioner –vet CSG activities on prime ag land Standardised land access agreements Regional Community Funds: Co’s fund local projects

State Govt responses as debate rolled on

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Senate Inquiry

EPBC Act: Expert Scientific Cttee – bioregional/catchment-wide cumulative impact assessment re CSG & mining projects

Feds: Plan a national regulatory approach re CSG (end 2012)

Fed Govt response as debate rolled on

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Warwick Giblin

wgiblin@bigpond.net.au

Ph 0419 271 819

www.ozenvironmental.com.au