NT government passes 'chain of responsibility’ laws for onshore gas companies

Almost five years after a landmark inquiry into gas fracking, the NT government has ensured taxpayers do not inherit bills for environmental damage. Here's what that means.

The landmark Pepper Inquiry has been in the spotlight in parliament this week as the NT government moves to capitalise on the Beetaloo Basin. Picture: Supplied

Taxpayers will no longer inherit the bill for environment damage caused by onshore gas production by defunct companies, after ‘chain of responsibility’ laws were passed in NT parliament.

The reform, which passed on Wednesday, mandates that if a petroleum entity responsible for environmental damage becomes insolvent, the cost will be passed on to a parent company or director.

It acts on the landmark Pepper Inquiry, which has been in the spotlight during parliament’s last sittings week of the year.

The Gunner government endorsed all 135 recommendations of the inquiry in 2018.

Environment, Climate Change and Water Security Minister Lauren Moss has brought forward legislation to introduce ‘chain of responsibility’ laws for onshore gas companies. Picture: (A)manda Parkinson

Environment, Climate Change and Water Security Minister Lauren Moss said it was important the Territory’s environment was preserved for future generations.

“We can do this while providing for the sustainable economic development that is essential to grow our economy, provide future jobs, and support the wellbeing of those who call the NT home,” Ms Moss said.

“We believe in the science, we believe in protecting our cultural and ecological values, and we believe in creating compliance frameworks that will work to protect the interests of all Territorians.”

Mining and Industry Minister Nicole Manison said the Bill acted on responsible development of the Beetaloo Basin.

“Environmental incident management is costly,” Ms Manison said.

“When proceedings are brought by a regulator it is problematic if that entity is insolvent and has no way to pay for remediation or rehabilitation.

“We are firm that a related entity should foot this bill, not Territorians.”

The Bill passed with bipartisan support.

The reform only applies to the onshore petroleum industry but the government is expected to strengthen the laws to include any activity capable of harming the environment.