Get to know the shale gas business, pastoralists told

This from chairman of the GasFields Commission Queensland, beef producer John Cotter, who has 30 years of rural advocacy under his belt.

He said the ‘barbecue test’ – what people were saying about the gas industry while enjoying a prime steak on their gas-fired barbie with family and friends - was applicable the country over and was crucial for an industry looking to gain a social licence to operate.

Mr Cotter spoke at the 2016 Northern Territory Cattlemen’s Association conference about the lessons learned in Queensland on resolving conflict when the newer, onshore gas industry came to town.

With the NT on the cusp of developing a shale gas industry, his ‘takeaway points’ resounded with cattle producers concerned about the sustainability of natural resources, their enterprises and their reputation for producing clean, green beef.

His other key message - this time as much to the pastoral industry as gas explorers - was that while robust regulatory framework was a must, commonsense and a business-to-business approach was just as important.

Mr Cotter said landowners were the key to enabling resources to be developed on behalf of their communities.

“Treat the relationship like any other business relationship. Get to know each other’s business,” he said.

“Constant attention and goodwill from all parties is required. Problems will not disappear altogether but if the relationship is sound most can be resolved.”

Queensland had travelled some distance since the early conflict-riddled days when coal seam gas companies first started arriving in force in the Surat Basin.

As of June 2015, approximately 2,200 Queensland landholders with CSG infrastructure on their property had negotiated about 5,000 conduct and compensation agreements.

Compensation paid under these agreements is estimated to total $238 million.

Other types of compensation, such as new fencing, roads, grids and other property improvements, had also been negotiated and in some areas, landowners gained access to treated CSG water.

“While the major construction phase is now finished, the CSG industry will continue to drill and maintain wells to produce sufficient quantities of gas to fill the pipelines and LNG boats,” Mr Cotter said.

“Anecdotally, we have seen encouraging trends. Unemployment in the Darling Downs-Maranoa region was just 2.5 percent in December 2015, one of the best regions in Australia.”

It had been a hard road, Mr Cotter said.

There were a host of challenges.

“No land access code or adequate regulatory framework was in place for the gas industry, limited information was available from gas companies about their proposed activities and little information was available on the science of environmental impacts, especially critical issues such as groundwater,” Mr Cotter said.

“Trust levels were low between gas companies and landowners, made worse by the companies simply turning up at landowners gates and demanding entry.”

Tensions reached breaking point and protest rallies were held around 2010.

“At that time, Queensland’s rural towns had been going through a steady decline in population and job opportunities,” Mr Cotter said.

“This new industry provided a possible opportunity to help rebuild those towns but it was going nowhere unless the conflict could be resolved.”

The government established the GasFields Commission Queensland and, in an unprecedented move, had it draw up the regulation.

What has been learnt?

The regulatory framework must cover all aspects including tenure requirements, project approvals, land access, environmental management and groundwater and health, safety and social impacts, Mr Cotter said.

The gas industry needed to understand all impacts on the community.

Trusted science on geology and water should be the basis for discussion, effective communication and engagement was critical and local communities needed to leverage legacy opportunities.

“It’s also important local governments engage early with the industry,” he said.

“The immediate impacts on the landscape are very obvious - wells, pipelines and other infrastructure.

“But for local communities, the issues are much broader - dust, noise, roads, traffic, privacy, security, drains on community infrastructure such as the town water supply and waste and sewerage management.

“Councils working through the issues with the industry can reap benefits for their communities.

“For example, in the heart of the Surat Basin CSG industry, the Western Downs and Maranoa Councils have seen the industry contribute hundreds of millions of dollars in upgrades to their roads and other community infrastructure over recent years.”