Empire Energy, Minerals Council backs NTG Merit plan

NTG plans to scrap a controversial block on business activity has won widespread praise.

The Northern Territory’s energy sector has resoundingly endorsed the NT Government’s plan to eliminate merit reviews, with one key-player describing the Territory’s regime as among the most demanding in the world.

Chief Minister Lia Finocchiaro has pledged to scrap the merit system - a recommendation from the 2018 Pepper Review into the Territory’s emerging onshore gas industry - because of its capacity to invite green legal intervention.

Empire Energy managing director Alex Underwood said resources projects in the Territory were only approved after robust, independent and expert environmental review processes.

“These processes are more demanding than any other state or territory regulatory regime in Australia and arguably in the world,” Mr Underwood said.

Empire Energy chief executive Alex Underwood.

“Only after completing this review process do regulators make a recommendation to the minister.”

He said project Environmental Management Plans were already subject to a rigorous review and third-party involvement, and the public accountability of the Mining and Energy Minister making a decision to approve and condition an EMP.

“A third party merits review provides an inappropriate opportunity for those who are philosophically opposed to natural gas development to seek to add costs, uncertainty and delay to the development of the Territory’s natural resources,” he said.

“In Empire’s view this is to the detriment of the Territory.

“A merits review is not focused on legal issues. Third parties retain the opportunity for judicial review if they believe the law is not being complied with.

Executive Director NT Mineral Council at the NT News Aviation Access Forum. Picture: Pema Tamang Pakhrin.

“In Empire’s view NTCAT is not the appropriate forum to deal with the scientific and environmental issues that arise from an EMP. The responsible Minister, advised by a skilled department and accountable to Territorians, is the appropriate decision maker.

“As they are currently being used, merits reviews on major projects are little more than tactical toys for groups who will never take yes for an answer.”

The Territory Government is expected to introduce the Petroleum, Planning and Water Legislation Amendment Bill into parliament this week to put an end to merit-based objections.

Minerals Council NT chief executive Cathryn Tilmouth said industries looking to invest in the NT had long been critical of third-party merit reviews.

“The minerals sector is a cornerstone of the Territory economy, contributing $4.32bn to the economy and accounting for around 13 per cent of the gross state product,” she said.

Australian Energy Producers NT manager David Slama.

“Mining provides around 4000 jobs, as well as community investment and other frontline and emergency services to remote NT.

“However, with several key mining operations set to reach the end of their lifespan by the end of this decade, timely approvals of new projects will be critical to sustaining jobs, royalties, and long-term economic growth.

“Delays caused by third-party reviews not only increase project costs — potentially reducing the value of a major mining investment by up to 13 per cent for each year of delay — but also disrupt the economic benefits that these projects provide to Territorians.”

Australian Energy Producers NT Director David Slama said the amendment would clamp down on lawfare and boost investment and energy security.

He said a long list of “vexatious” cases had “exposed the extreme tactics of activists who are more interested in delaying projects than genuinely representing the interests of Territory communities”.

“Removing the Merits Review process is a significant step towards streamlining approval processes to enable new gas supply to be brought online sooner,” he said.

Originally published as Empire Energy, Minerals Council backs NTG Merit plan