Funds for NT gas search ‘invalid’, lawyers say

The failure of Keith Pitt to consider the climate implications of a $21m government grant for NT oil and gas exploration means the commitment is invalid, lawyers say.

Resources Minister Keith Pitt. Picture: Gary Ramage

The failure of federal Resources Minister Keith Pitt to consider the climate implications of a $21m government grant for oil and gas exploration in the Northern Territory means the commitment is invalid, lawyers for an environmental group say.

Lawyers representing the ­Environment Centre NT told the Federal Court on Tuesday there was no indication Mr Pitt or his department weighed up what the exploration and development of the Beetaloo Basin could mean for climate change when they awarded the funding to Imperial Oil and Gas – a subsidiary of ASX-listed Empire ­Energy – this year.

Perry Herzfeld SC, representing the Environment Centre, said Mr Pitt had an obligation under the Public Governance, Performance and Accountability Act to ensure any approved expenditure was “efficient, effective, economical and ethical”.

The court case is potentially a landmark legal challenge, given a win by the Environment Centre would put a greater onus on ministers and departments to consider the climate implications of their funding decisions.

Mr Herzfeld said that under the act, Mr Pitt was required to make reasonable inquiries ­before approving expenditure. There was no sign, he said, that the minister had looked at the climate implications of unlocking the Beetaloo Basin.

Tom Howe QC, representing the minister and the commonwealth, said the relevant section of the act cited by the plaintiffs was not relevant to Mr Pitt’s decision to support the grant. He said the grant approval was not an administrative decision so did not fall under the PGPA Act.

The trial continues.