CSG Regulation
DERM Legislation
The Department of Environment and Resource Management has the ability to impose significant penalties on companies that breach their authorities, licences and permits, and can even revoke their environmental authority.
DERM has implemented a wide range of legislation that CSG and LNG companies must comply with.
Environmental Protection Act 1994
The framework includes amendments to the Environmental Protection Act 1994 (EPA) that:
- require operators of CSG activities to submit an Environmental Management Plan (PDF, 352K)* that includes a CSG Water Management Plan outlining how CSG water will be managed
- banned the use of evaporation dams as the primary means of CSG water disposal and required that existing evaporation dam sites be rehabilitated
- regulate the use of BTEX (benzene, toluene, ethyl-benzene and xylene) in stimulation fluids (including hydraulic fracturing fluids) by CSG operators above a maximum standard that will be set by regulation
- require notification to the department, and affected owners and occupiers of land, if:
- an activity has or may cause environmental harm,
- has negatively affected the water quality of an aquifer
- has caused the connection of two or more aquifers.
A stringent environmental regulatory framework sets out requirements of CSG and LNG operators. Included within this framework is the requirement that:
- CSG operators conduct a risk assessment and provide detailed information to the department about any chemicals that are proposed to be used in the fraccing process
- the injection of treated CSG water (preferably to stressed aquifers) be assessed by DERM as part of the adaptive management regime
- CSG and LNG operators to progressively rehabilitate the land over the life of CSG projects, as part of their environmental authority.
To support the environmental regulatory framework there are a suite of guidelines and factsheets available, including
- the Coal Seam Gas Water Management Policy which establishes guidelines for water management options including management of salt and brine (PDF, 142K)*
- the new guidelines for the preparation of environmental management plans (PDF, 352K)* for petroleum industry to ensure provision of better information to support the application for an environmental authority
- model environmental authority conditions for CSG activities including conditions relating to water quality (available upon request to DERM by telephone on (07) 3330 5715 during business hours).
Water Act 2000
The framework also includes amendments to the Water Act 2000 (PDF, 42K)* that:
- require CSG producers to undertake baseline assessment (PDF, 40K)* of landowners water bores—an Outcome of Baseline Assessment Form (Word, 510K)‡ is used when submitting the outcome of a baseline assessment for a water bore(s) by petroleum tenure holders
- require the development of underground water impact reports that include a water monitoring strategy and a spring impact management strategy
- introduce groundwater trigger thresholds for predicting impacts on private bores affected by CSG extraction activities
- establish clear legal obligations for CSG producers to make good impacts on bores capacity to supply water for its intended purpose
- provide for the declaring and regulating of cumulative management areas (CMAs) where the impacts of different CSG producers overlap
- independent management and monitoring of CMAs by the Queensland Water Commission (QWC).
Water Supply (Safety and Reliability) Act 2008
The primary aim of the Water Supply (Safety and Reliability) Act 2008 (PDF)* in relation to CSG recycled water is to protect public health.
Recent amendments made to the Water Supply (Safety and Reliability) Act 2008 now incorporate the regulation of CSG recycled water released to a water source, used by a drinking water service provider. The amendments require CSG proponents:
- to have either an Exclusion Decision or Recycled Water Management Plan (RWMP) approved by the regulator before release of CSG recycled water to a water source commences
- to undertake a water quality monitoring program before the release of CSG water to a water source
- to undertake on-going water quality monitoring after the release of CSG water to a water source
- to apply for an exclusion decision to demonstrate to the regulator that they have no material impact on a water supply, used by a drinking water service provider
- with no exclusion decision, to develop a RWMP. This is a risk management document that describes the CSG recycled water scheme from source, through the treatment process to the release point and includes an incident and emergency response plan
- to use the regulatory guideline (Coal Seam Gas Recycled Water Management Plan and Validation Guideline including Exclusion Decision Application Guideline) being developed by the regulator to prepare the relevant application
- to make public a report (including the water quality monitoring) for a reporting period
- to comply with all conditions of an approved application.
Additional amendments to the Water Supply (Safety and Reliability) Act 2008 focus specifically on CSG (aquifer) recycled water schemes and include:
- post supply obligations to ensure continued monitoring of the water within the aquifer even after the CSG operations have stopped, being suspended or cancelled
- requirements for a baseline aquifer monitoring program to be conducted to develop an understanding of the groundwater in the aquifer before any release of CSG recycled water commences.
Vegetation Management Act
The clearing of native vegetation in Queensland is regulated by the Vegetation Management Act 1999. The Act sets down the rules and regulations that guide what clearing can be done, and how it must be done to meet the requirements of the law.
Clearing that will require approval (development permit or Area Management Plan) from the department can only occur for certain ‘relevant purposes’. Included in the list of where clearing is ‘for a relevant purpose’ is if it is:
- a project declared to be a significant project under section 26 of the State Development and Public Works Organisation Act 1971.
Nature Conservation Act
The Nature Conservation Act 1992 (NCA) also regulates the environmental impacts of the CSG to LNG industry through the use of industry clearing permits and Species Management Programs.
The NCA protects native plants indigenous to Australia (protected plants) and regulates the clearing of individual protected plants. A clearing permit is required to clear protected plants unless an exemption applies. In general, exemptions will only apply to the clearing of least concern protected plant species. Clearing of endangered, vulnerable, rare or near threatened protected plants will require a clearing permit. Clearing permit applications received by DERM will be assessed on a case by case basis and approvals will be subject to conditions.
Where CSG activities involve tampering with animal breeding places, the tampering may be authorised by application to DERM for an approved species management program.
Holders of relevant resource authorities are able to apply to DERM to operate under the protected plant class exemption and in accordance with an approved Species Management Program.
Forestry Act
The Forestry Act 1959 (Forestry Act) is the regulatory framework to ensure that the use of State owned quarry materials are appropriate and that payment of royalty for the quarry materials is received.
CSG and LNG activities that are carried out in State Forests must comply with requirements of the Forestry Act about matters including occupying the land and the liability to pay stumpage to the State for any timber cut or interfered with.
Environmental Licences
Environmental Authorities
Under Queensland laws, all coal seam gas (CSG) operators are subject to rigorous environmental assessment processes and must be issued an environmental authority (EA) from DERM before they can commence operations.
During the environmental authority application process, potential environmental risks or impacts may be identified. Where this occurs, conditions are included within the EA to ensure that the activity is properly managed to minimise the potential for environmental harm. Regular monitoring of the environmental area noted within the EA occurs to ensure that EA conditions are being met by the CSG operators.
View the current projects subject to public notification, or search the public register of environmental authorities.
Environmental Impact Statements
As part of the assessment process for EA applications, Environmental Impact Statement (EIS) processes are required for large-scale or significant developments (such as large-scale CSG fields, gas pipelines and LNG processing plants).
The EIS process, undertaken by the Coordinator-General or DERM, includes an extensive public consultation and review process.
The EIS report describes and evaluates:
- the environmental values (including social and economic)
- the impacts of a proposed development on these values
- proposed avoidance, mitigation and offset measures to be used.
The EA process will only continue after an EIS has been finalised.
Environmental management plans
As part of the environmental assessment process, level 1 CSG activities are required to develop an environmental management plan (EM plan). This plan identifies the potential impacts on the surrounding environment and how these will be managed.
The EM plan must provide sufficient information for DERM to evaluate a project in relation to each of the regulatory requirements.
More detail on DERM’s environmental assessment framework for coal seam gas developments (PDF, 103K)*.
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Last updated 20 December 2011