NT gives the nod to fracking

THE Northern Territory has flagged plans to allow fracking to proceed while the government fixes inadequate regulatory oversight.

Territory Mines and Energy Minister Dave Tollner, above, says the government has broadly accepted a report’s fracking recommendations. Picture: Helen Orr

THE Northern Territory has flagged plans to allow fracking to proceed while the government fixes inadequate regulatory oversight, as it seeks to strike a balance between developing the nascent industry and averting a NSW-style public backlash.

The report of an independent inquiry into hydraulic fracturing — a crucial part of unconventional shale, coal seam and tight gas development — found there was “no justification whatsoever” for imposing a moratorium on the practice.

However, the report found the NT’s regulatory regime was well below the necessary standards, highlighting the need for better water and air-quality monitoring, baseline measurements and information about the longevity of decommissioned wells.

The inquiry, conducted by former diplomat Allan Hawke, was commissioned to provide a foundation for industrial development and to address a growing anti-fracking campaign that has seen two local councils ban the practice and some Aborigines express vocal opposition to gas exploration on their land. The inquiry received more than 260 public submissions, most opposing fracking.

The government wants to ramp up the industry that potentially is worth $365 million between now and 2018, based on granted exploration permits ­and including building a gas pipeline to connect the Territory to the east coast gas grid. That plan has won federal support as a means of helping combat rising gas prices.

Territory Mines and Energy Minister Dave Tollner said the government broadly accepted the report’s six recommendations.

“The key finding is that fracking can take place safely in the Northern Territory, provided the appropriate regulatory and monitoring regime is in place to allay community concern,” he said.

He pledged to seek feedback on proposals to ban fracking around major towns, and launched a second review to establish a regulatory framework.

NT director of the Australian Petroleum Production and Exploration Association, Steven Gerhardy, welcomed the report.

“Over the past 40 years, more than 30 wells in the NT and over 1000 wells in northern South Australia have been hydraulically fractured without any recorded cases of aquifer contamination,” he said.

Environmental Defenders Office NT executive director David Morris said the regulatory problems the report identified showed why a moratorium was needed until the system of oversight was remedied. “The absence of a requirement for baseline testing and post-operative testing is something that needs to be fixed very quickly,” he said.

Santos spokesman Matthew Doman said the main recommendation, that environmental risks associated with fracking could be managed with robust regulation, was consistent with other reviews.