LANDOWNERS will get the final say on whether hydraulic fracture stimulation (fracking) will be allowed on their properties after the State government announced it will permit the practice on two per cent of WA land.
In its announcement last week the government also said it would lift the fracking moratorium on existing onshore petroleum titles only after an independent scientific inquiry found the risk to people and the environment was low.
The decision came on the back of a 12-month independent inquiry by Environmental Protection Authority chairperson Dr Tom Hatton, who made 44 recommendations, which the government will implement before any fracking production approvals are granted.
Royalties from any unconventional onshore oil and gas projects will be used to support new renewable energy projects via the Clean Energy Future Fund with a $9 million seed allocation.
The royalty rate for unconventional oil and gas will increase to 10 per cent, the same rate that applies to conventional petroleum production.
Environment Minister Stephen Dawson said the State government was embarking on renewed action on greenhouse gas emissions and this decision was part of that.
“Gas is part of the transition to a clean energy future, with emissions from gas much lower than other baseload power production,” Mr Dawson said.
“With the new strict controls in place and the establishment of a Clean Energy Future Fund, we’re setting up our State for the long term and a transition to renewables.”
Mines and Petroleum Minister Bill Johnston said the government respected “the outcome of the scientific inquiry, and it shows that jobs and investment can be allowed with proper regulation and enforcement”.
“WA has a long history of safe and responsible oil and gas operations and is a world-class industry regulator,” Mr Johnston said.
“The report demonstrates that the risks associated with fracking are minimal and can be safely managed under this balanced policy.”
Premier Mark McGowan said Labor had delivered on its election promise and was introducing “new world-class strict controls to regulate the industry in other parts of the State”, following the findings of the inquiry.
“This is a balanced and responsible policy that supports economic opportunity, new jobs, environmental protection and landowner rights,” Mr McGowan said.
“Banning fracking on existing petroleum titles after the scientific inquiry found the risk from fracking is low, would undermine WA’s reputation as a safe place to invest and do business.
“At the same time, it is crucial that the industry demonstrates that it has the support of landowners who, for the first time, will be able to say yes or no to any fracking production on their land.”
Fracking will continue to be banned in the Perth, Peel and the South West regions, while existing and proposed national parks, the Dampier Peninsula in the Kimberley and Public Drinking Water Source Areas will also be declared off limits.
The specific boundaries covering the Dampier Peninsula plan will be developed in consultation with the local community.
There will be a need for all fracking projects, including exploration and production wells, to require an EPA assessment and the government will also develop an enforceable code of practice to ensure high standards of health, safety and environmental protection.
No fracking will be allowed within two kilometres of towns, settlements or residents or public drinking water source areas.
While the Pastoralists and Graziers Association of WA (PGA) supports the science and technology behind fracking, it said the announcement lacked clarity.
The PGA has written to government ministers seeking policy clarity and what it meant for multiple owners of land who may not share the same position, with property rights being one of the core and guiding principles.
The Nationals WA Moore MP Shane Love MLA expressed dismay at a “hypocritical decision to allow fracking in the Mid West, while banning it in the South West, Peel and Metropolitan areas”.
He said it was an extreme case of “not in my backyard” and residents in the Mid West would justifiably feel second-class.
Mr Love said the vegetable production from the Gingin and Lancelin area, which has been valued at $500 million could be impacted by the decision.
“Aside from horticultural production, the Mid West is a huge exporter of grain and meat products and it’s an industry founded on WA’s clean and green image,” Mr Love said.
“We have had two fracking inquiries and neither of them have been able to demonstrate that unconventional gas production will deliver an economic benefit to the community.
“Why would we risk the status of our export food production?”
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Mr Love was critical of the fracking inquiry terms of reference which were strictly limited and did not consider social and environmental impacts.
“I note Labor’s adoption of The Nationals WA policy to allow farmers the right to say no before fracking can proceed on their land, however the details of this will need to be explored before I can endorse this measure,” he said.
“Mr McGowan needs to understand that Mid West residents have consistently called for fracking to be banned in their towns and communities.”
Lock the Gate Alliance regional spokesperson Jarrad Thomas said there was widespread opposition to fracking.
“Over 20 communities across WA have made ‘gasfield free’ declarations and they have made it very clear that they won’t be changing their minds to allow fracking just because the WA Government decides it is OK,” Mr Thomas said.
He said the government and fracking companies would have a long and difficult fight ahead of them because “everywhere that unconventional gas fracking developments have been proposed across Australia, farming communities and traditional owners have fought them every step of the way – and that is what will occur here in WA”.
Shooters, Fishers and Farmers Party Agricultural Region MLC Rick Mazza welcomed the announcement and said while the petroleum and mineral resource industries were crucial to the State, it was a major duty of government to protect private property rights.
“The right to deny entry is one of the most fundamental of all property rights,” Mr Mazza said.
“It is important that farmers of private land have the ability to allow access to the land, or not, depending on their own inclinations.”
As per the final report, concerns were raised by property owners in WA regarding the autonomy they have over their land and potential conflicts over land use.
Earlier this year Mr Mazza introduced the Petroleum and Geothermal Energy Resources Amendment (Veto Powers) Bill 2017 to give the power of veto for the owner of private land that is subject to petroleum and geothermal permitted activities.
During his second reading speech Mr Mazza said hydraulic fracturing in WA would be dependent on negotiation, which would give farmers certainty and confidence in being able to manage their land.
