Traditional owners' right to veto hydraulic fracturing projects will not apply to exploration applications, the WA Department of Mines, Industry Regulation and Safety has confirmed.
On Friday the WA government released an 18-month 'implementation plan' that would see the ban on fracking on existing onshore petroleum titles lifted in the state next month.
The fracking ban will be lifted next month.Credit: Bloomberg
Fracking is the controversial practice of fracturing rocks with pressurised liquid to unlock gas and petroleum.
In WA, most fracking activities would target gas between two to three kilometres underground in tight and shale rocks.
The lifting of the ban will apply to about 2 per cent of the state.
The plan also outlined the heavy regulations companies must meet before they can begin fracking.
Companies will need consent from traditional owners and private landowners before production is permitted, but Wilderness Society WA acting state director Kit Sainsbury is worried this would not apply to exploration applications.
“The government made a lot of noise about the traditional owner veto, however, the devil is in the detail with these matters and the implementation plan doesn’t effectively review this point,” he said.
“The suggestion that they will need to consent solely to ‘production wells’ indicates that companies can come and frack freely during exploration. This will have no community support and must be clarified.”
Department of Mines, Industry Regulation and Safety deputy director-general Phil Gorey conceded exploration would not require traditional owner consent, saying it involved a different, less intensive, process.
“It is low impact and temporary in nature. Exploration data enables landowners to make informed decisions about potential developments,” he said.
“However, applications for both exploration and production for onshore oil and gas involving hydraulic fracturing will be referred to the WA Environmental Protection Authority for assessment first.
"This assessment process may take between 12 and 18 months to complete."
Mr Gorey said a steering group would determine the appropriate mechanisms to give effect to the state government’s policy for the right of consent for traditional owners.
In addition to traditional owner consent and EPA approval companies would also need to adhere to a 2km buffer zone around public drinking water sources.
The royalty discount on tight gas projects will be removed and funds will go to a ‘clean energy future fund’ that will fund clean energy projects.
Junior player Whitebark Energy (ASX:WBE) owns the undeveloped Warro gas project 200km north of Perth, which had been locked up under the fracking ban.
In a statement to the ASX it welcomed the release of the WA Government’s plan, which would allow Warro to progress.
“This marks the end of the ban on onshore [hydraulic fracturing] and companies may now submit applications to the EPA for review,” the company said.
“The Warro Project can now anticipate a time frame when further work at the field can be considered.”
Australian Petroleum Production and Exploration Association chief executive Andrew McConville said the plan highlighted there were robust regulations in place for fracking.
“Hydraulic fracturing has been used safely in Western Australia for more than 60 years and the independent scientific inquiry confirmed that properly regulated, hydraulic fracturing is a safe practice,” he said.
He said the industry needed a stable policy framework to ensure confidence for companies to continue to invest in oil and gas projects in WA.