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SUPPORTING RESOURCE SECTOR GROWTH<br />

INDUSTRY PROPOSALS FOR STREAMLINING QUEENSLAND’S APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW OF QUEENSLAND’S EXPLORATION AND<br />

DEVELOPMENT APPROVAL PROCESSES<br />

30 April 2010


ACKNOWLEDGEMENTS<br />

I wish to extend my thanks to my fellow Industry Working Group members (listed at Appendix 2)<br />

for their input <strong>and</strong> counsel over the past five months. They all have busy day jobs but all<br />

realised that an invitation from the Premier to industry to advise on streamlining project approval<br />

processes does not come along very often.<br />

Thanks also to the broader QRC membership, which took advantage of the invitation to provide<br />

submissions to the working group. I must also acknowledge the enormous extra workload taken<br />

on by members of the QRC Secretariat (Andrew Barger, Archana Mishra, Russell Silver-<br />

Thomas <strong>and</strong> Frances Hayter) who provided the working group’s policy secretariat, ably assisted<br />

by Connie Stanley from the Department of Employment, Economic Development <strong>and</strong><br />

Innovation, who provided excellent administrative support.<br />

Finally, I acknowledge the trust placed in me <strong>and</strong> the QRC’s wider membership by the Premier<br />

<strong>and</strong> her government to undertake this review.<br />

Michael Roche<br />

Chair<br />

INDUSTRY WORKING GROUP<br />

REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES


contents<br />

EXECUTIVE SUMMARY ........................................................................................................................ i<br />

KEY RECOMMENDATIONS ................................................................................................................ iii<br />

INTRODUCTION .................................................................................................................................... 1<br />

<strong>Queensl<strong>and</strong></strong>’s trade exposed administration 1<br />

The role of <strong>resource</strong>s in <strong>Queensl<strong>and</strong></strong> 1<br />

Review objectives 2<br />

Overview of working group processes 2<br />

CERTAINTY OF PACE .......................................................................................................................... 3<br />

Certainty of pace – the need for fast, predictable processes 3<br />

Reviewing <strong>and</strong> awarding tenure 6<br />

Native Title <strong>and</strong> Cultural Heritage issues 8<br />

Environment <strong>and</strong> related approval issues 9<br />

CERTAINTY OF SCOPE ..................................................................................................................... 15<br />

Certainty of scope – a review of relevant criteria rather than exhaustively all encompassing<br />

criteria 15<br />

Reviewing <strong>and</strong> awarding tenure 16<br />

Native Title <strong>and</strong> Cultural Heritage issues 18<br />

Environment <strong>and</strong> related approval issues 20<br />

REGULATORY CONTINUITY ............................................................................................................. 22<br />

Regulatory continuity – authorities <strong>and</strong> other negotiated regulatory instruments are only<br />

reopened under extreme (<strong>and</strong> well defined) circumstances. 22<br />

Reviewing <strong>and</strong> awarding tenure 23<br />

Native Title <strong>and</strong> Cultural Heritage issues 25<br />

Environment <strong>and</strong> related approval issues 25<br />

IMPLEMENTATION SCHEDULE ........................................................................................................ 28<br />

CONCLUSION ..................................................................................................................................... 35<br />

APPENDIX 1: Terms of Reference for the Review 36<br />

APPENDIX 2: Members of the Working Group 39<br />

APPENDIX 3: Industry proposed amendments to PGA received by DEEDI 41


EXECUTIVE SUMMARY<br />

In November 2009, the <strong>Queensl<strong>and</strong></strong> Premier<br />

appointed Michael Roche, Chief Executive of<br />

the <strong>Queensl<strong>and</strong></strong> Resources Council (QRC), to<br />

chair an industry-led review of <strong>Queensl<strong>and</strong></strong>’s<br />

exploration <strong>and</strong> development approvals<br />

processes. Announcing the review at the<br />

QRC’s annual lunch, the Premier said:<br />

‘Exploration expenditure in<br />

<strong>Queensl<strong>and</strong></strong> increased more than<br />

80 percent last year. It was $354<br />

million in 2005-06 <strong>and</strong> this was up<br />

to $640 million in 2008-09. Three<br />

years ago there were 432<br />

applications for exploration - <strong>and</strong><br />

925 applications have already<br />

been received this year.<br />

‘That’s why we need to work with<br />

industry to deliver a better system<br />

to assess applications. So today<br />

we announce there will be an<br />

industry working group chaired by<br />

Michael Roche. They will be<br />

tasked with reporting back to<br />

government by April next year on<br />

best practice process to support<br />

future industry <strong>growth</strong>. A key<br />

outcome will be to determine how<br />

we can improve approvals<br />

processes; reduce assessment<br />

times; <strong>and</strong> increase transparency<br />

in the system.’<br />

Premier Anna Bligh, 25<br />

November 2009<br />

An experienced cross-section of industry<br />

representatives joined the Industry Working<br />

Group (IWG). This report would not have been<br />

possible without ready access to industry<br />

commitment, enthusiasm <strong>and</strong> expertise.<br />

Industry’s perspective is that the existing<br />

exploration <strong>and</strong> development approvals<br />

processes have been mired in unnecessary<br />

delays, creating real costs for <strong>Queensl<strong>and</strong></strong> by<br />

delaying or deterring capital investment <strong>and</strong><br />

consequently public benefits such as <strong>growth</strong> in<br />

employment <strong>and</strong> state royalties. Importantly,<br />

uncertainties <strong>and</strong> delays are not delivering<br />

better decisions. Each component of these<br />

complex decision-making processes needs to<br />

be systematically considered <strong>and</strong> potentially<br />

reviewed so that time savings can be achieved<br />

<strong>and</strong> investment can occur without undue<br />

delay.<br />

The size of the prize:<br />

A hypothetical new mine with production delayed by 12 months results in a substantial set of<br />

economic opportunities forgone for <strong>Queensl<strong>and</strong></strong>, including:<br />

• 700-800 construction jobs<br />

• 650 permanent on-site operational jobs<br />

• around 2200 new (indirect) jobs throughout <strong>Queensl<strong>and</strong></strong><br />

• around $580 million in value added<br />

• around $340 million in wages <strong>and</strong> salaries<br />

• around $170 million in state royalties Export revenues of around $2000 million.<br />

While these estimates are significant they cannot quantify the damage done to <strong>Queensl<strong>and</strong></strong>’s<br />

reputation from a system that results in projects running behind schedule. This hidden reputational<br />

cost has two dimensions—to <strong>Queensl<strong>and</strong></strong>’s reputation as a reliable supplier of commodities <strong>and</strong> to<br />

<strong>Queensl<strong>and</strong></strong>’s reputation as a jurisdiction that is a safe <strong>and</strong> appealing investment destination.<br />

NB: The above estimates, (2007 dollar terms) are based on the then Department of Mines <strong>and</strong><br />

Energy’s 2007 study of the central <strong>Queensl<strong>and</strong></strong> mining <strong>and</strong> minerals processing industries. It<br />

assumes a new 10Mmtpa open-cut coking coal mine exporting at a spot price of AUD $200/tonne.<br />

page i


A world-class approvals system would have<br />

the capacity to provide a more rigorous<br />

assessment process using fewer government<br />

<strong>resource</strong>s. Such an approval system would<br />

deliver better social, environmental <strong>and</strong><br />

economic outcomes. Key opportunities to<br />

accelerate decision-making processes that are<br />

highlighted in this report include:<br />

the elimination of unnecessary<br />

steps <strong>and</strong> parallel sequencing of<br />

steps without a reduction in<br />

assessment rigour<br />

giving full effect to the<br />

appointment of the Department of<br />

Employment, Economic<br />

Development <strong>and</strong> Innovation<br />

(DEEDI) as a lead agency by<br />

establishing dedicated project<br />

case managers to oversee key<br />

<strong>resource</strong> projects through<br />

approval processes, upgrading to<br />

a modern work management<br />

system <strong>and</strong> ensuring that all<br />

concurrence agencies have the<br />

<strong>resource</strong>s <strong>and</strong> delegations they<br />

need to be effective<br />

automatic increases in<br />

departmental resourcing as<br />

industry activity grows, through a<br />

balanced system of fees <strong>and</strong><br />

charges, incorporating the best<br />

elements of user-pays <strong>and</strong> public<br />

benefit<br />

improved accountability for<br />

approval timelines by providing<br />

targets for each stage of the<br />

approval process<br />

investigating a new legislative<br />

framework expressly designed for<br />

major <strong>resource</strong> projects.<br />

It is apparent from industry submissions to the<br />

review that the root of the problem is the<br />

complexity inherent in a system that has<br />

grown incrementally in response to the<br />

dem<strong>and</strong>s of the day, rather than to an<br />

overarching master plan. Successive<br />

governments have added new steps <strong>and</strong><br />

approval requirements through legislation or<br />

departmental policies without fully considering<br />

how all the new elements fit together. The<br />

cumulative impact of these additional<br />

requirements has seen significant increases in<br />

approval times. When dealing with a multistep<br />

complex process, there is a real risk that the<br />

project uncertainty <strong>and</strong> delays will compound.<br />

There could be 45 separate steps in an<br />

approval process for granting a mining lease<br />

for example, <strong>and</strong> a one to two-week<br />

uncertainty around each of these steps can<br />

add between 45-90 weeks to the project’s<br />

critical path.<br />

Application process Circa 2005 April 2010 Increase<br />

Simple mining lease application ~ 6 months ~ 12 – 15 months Up to 150%<br />

<strong>Mining</strong> lease with native title ~ 9 – 12 months ~ 15 – 18 months Up to 66%<br />

<strong>Mining</strong> lease with native title <strong>and</strong><br />

environmental impact statement<br />

Sources: Industry feedback <strong>and</strong> IRTM.<br />

Almost all industry submissions made mention<br />

of <strong>resource</strong> constraints, staff churn <strong>and</strong><br />

inconsistencies between regional offices <strong>and</strong><br />

an individual officer’s interpretation of their<br />

task. It is clear to industry that a major part of<br />

the uncertainty of the pace of approval <strong>and</strong><br />

tenure processes stems from a shortfall of<br />

people <strong>and</strong> expertise within government to<br />

~ 18 months ~ 24 – 36 months Up to 100%<br />

administer the system. A world-class<br />

approvals <strong>and</strong> tenure system should be<br />

properly <strong>resource</strong>d with the people, processes<br />

<strong>and</strong> expertise to make decisions in a timely<br />

manner. Given the variations in workload<br />

through the cycle, industry is attracted to a<br />

model which provides a direct link between<br />

industry activity <strong>and</strong> departmental <strong>resource</strong>s.<br />

page i


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

In this report, a range of recommendations<br />

have been made with the aim of better<br />

integration of approvals processes between<br />

Commonwealth <strong>and</strong> <strong>Queensl<strong>and</strong></strong> agencies,<br />

among the different state agencies<br />

themselves, <strong>and</strong> between the proponent, state<br />

agencies <strong>and</strong> the community.<br />

Industry proposes a more streamlined <strong>and</strong><br />

seamless system. It is one that can deliver<br />

necessary approval decisions within a<br />

reasonable timeframe <strong>and</strong> at reasonable cost<br />

<strong>and</strong> one that offers greater certainty to the<br />

proponent, without compromising st<strong>and</strong>ards of<br />

scrutiny of environmental performance <strong>and</strong><br />

opportunities for the community to articulate<br />

their expectations.<br />

The recently released 2010 Fraser Institute<br />

<strong>Mining</strong> Survey of 72 global jurisdictions places<br />

<strong>Queensl<strong>and</strong></strong> in 10 th position for minerals<br />

prospectivity.<br />

However, on the all-important ‘policy potential<br />

index’, which factors into this rating the overall<br />

quality of our minerals <strong>sector</strong> regulation <strong>and</strong><br />

administration, <strong>Queensl<strong>and</strong></strong> drops back to a<br />

disappointing 24 th ranking.<br />

The Industry Working Group is of the view that<br />

the adoption by government of this report’s<br />

recommendations will set <strong>Queensl<strong>and</strong></strong> on the<br />

path towards a closer match between our<br />

prospectivity <strong>and</strong> our reputation for having<br />

exploration <strong>and</strong> development approval<br />

processes geared to <strong>supporting</strong> <strong>resource</strong><br />

<strong>sector</strong> <strong>growth</strong>.<br />

I commend this report to the government.<br />

Michael Roche<br />

Chair<br />

INDUSTRY WORKING GROUP<br />

REVIEW OF QUEENSLAND’S EXPLORATION AND<br />

DEVELOPMENT APPROVAL PROCESSES<br />

page ii


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

KEY RECOMMENDATIONS<br />

The Review Report highlights opportunities for<br />

improvement in individual parts of the<br />

approvals system with an overarching theme<br />

of delivering clarity <strong>and</strong> certainty in<br />

government processes. As such the issues<br />

raised have been grouped into three<br />

categories:<br />

1. Certainty of pace ~ improving<br />

the speed <strong>and</strong> predictability of<br />

approvals;<br />

2. Certainty of scope ~ regulation<br />

based on criteria which are<br />

relevant to the project rather than<br />

all encompassing<br />

3. Regulatory certainty ~ at any<br />

stage the ‘regulatory rules’ which<br />

have been so painstakingly<br />

developed, for example, in an<br />

environmental authority can be<br />

revisited, revised <strong>and</strong> updated.<br />

1. Certainty of pace<br />

Industry’s recommendations to improve the<br />

speed <strong>and</strong> predictability of approval processes<br />

include:<br />

a urgently <strong>resource</strong> <strong>and</strong> implement<br />

the recommendations of the state<br />

government’s internal review,<br />

Streamlining Approvals Project:<br />

<strong>Mining</strong> <strong>and</strong> Petroleum Tenure<br />

Approval Process, November<br />

2009, (or the ‘Grundy Report’)<br />

b a shift towards parallel rather<br />

than sequential approval<br />

processes wherever possible,<br />

particularly in regard to public<br />

notification processes<br />

c improve accountability for<br />

approval timeframes by providing<br />

for targets at each stage of the<br />

approvals process through some<br />

combination of:<br />

• Setting target times for<br />

approval—eg an<br />

environmental impact<br />

statement process<br />

(the components within the<br />

control of the government)<br />

should take no more than<br />

16 months<br />

• a clear process of agreeing<br />

a series of target project<br />

milestones (perhaps with<br />

the case manager) at the<br />

beginning of a project<br />

(having regard to<br />

departmental m<strong>and</strong>atory<br />

deadlines <strong>and</strong><br />

benchmarked timeframes<br />

for action)<br />

• Setting deadlines with a<br />

‘deemed as approved’<br />

clause (ie if the decision<br />

has not been made by the<br />

deadline, then the<br />

applications / licence /<br />

project is deemed to have<br />

been approved)<br />

• the opportunity to have a<br />

process or outcome<br />

independently certified (for<br />

example having l<strong>and</strong><br />

rehabilitation signed off by<br />

a properly accredited<br />

consultant).<br />

d to improve the transparency of<br />

<strong>Queensl<strong>and</strong></strong>’s approval<br />

processes, publish a scorecard<br />

that tracks average time to make<br />

a decision for each category of<br />

application as well as the number<br />

of applications received <strong>and</strong><br />

processed each quarter.<br />

e examine the feasibility of bringing<br />

Indigenous L<strong>and</strong> Use Agreement<br />

(ILUA) negotiating cost with<br />

native title parties in line with<br />

compensation negotiations<br />

page iii


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

involving non-native title parties<br />

to ensure both indigenous <strong>and</strong><br />

non-indigenous compensation<br />

issues are addressed in a<br />

consistent manner.<br />

f enable the project proponents to<br />

opt for either ILUA or the right to<br />

negotiate using the s.29 process<br />

for all the elements of the right to<br />

mine <strong>and</strong> future acts associated<br />

with the right to mine, such as rail<br />

loops, pipelines <strong>and</strong> other directly<br />

associated infrastructure<br />

g automatically increase<br />

department resourcing as<br />

industry activity grows, through a<br />

balanced system of fees <strong>and</strong><br />

charges, with the right elements<br />

of user pays <strong>and</strong> public benefit<br />

h move to a virtual model of a one<br />

stop shop, through the<br />

confirmation of the role of DEEDI<br />

as the lead agency that is<br />

responsible for managing the<br />

overall project approval process<br />

from end to end. To realise the<br />

benefits of this lead agency<br />

model also requires:<br />

• the appointment of a<br />

dedicated case manager for<br />

each project to act as an<br />

important coordination point<br />

within government, as a<br />

contact point for proponents<br />

<strong>and</strong> to be responsible for<br />

stewarding the project<br />

through the application<br />

processes<br />

• the implementation of a<br />

modern work-flow system to<br />

provide seamless<br />

management of all aspects<br />

of the assessment <strong>and</strong><br />

granting of tenure, including<br />

environmental <strong>and</strong> native<br />

title processes<br />

• appropriate <strong>resource</strong>s <strong>and</strong><br />

delegations are available<br />

within key concurrence<br />

agencies including<br />

<strong>resource</strong>s for native title<br />

<strong>and</strong> the appointment of<br />

specialist officers within<br />

DERM to focus on mining<br />

projects.<br />

i eliminate the need for mining<br />

leases <strong>and</strong> renewals to be signed<br />

off by Governor in Council<br />

j engage with the prospecting <strong>and</strong><br />

small mining <strong>sector</strong>s in the<br />

development of a regulatory<br />

framework which is appropriate to<br />

the scale of that industry’s<br />

operation rather than treating<br />

them to the same degree of<br />

scrutiny as major mines.<br />

2. Certainty of scope<br />

Industry’s recommendations to address the<br />

growing complexity of approval processes as<br />

new issues continue to be added to the list of<br />

elements to be considered:<br />

k Publish guidelines <strong>and</strong> templates<br />

to clarify departmental intent –<br />

further, industry recommends the<br />

development of a clear<br />

notification process to avoid<br />

confusion when these documents<br />

are being developed or updated.<br />

l Progress industry’s proposed<br />

technical amendments to the<br />

Mineral Resources Act including<br />

provisions under sections 129,<br />

181, 238, 239,279, <strong>and</strong> 318CN.<br />

m Finalise the review of Aboriginal<br />

Cultural Heritage Act 2003 <strong>and</strong><br />

the Torres Strait Isl<strong>and</strong>er Cultural<br />

Heritage Act 2004 with timely <strong>and</strong><br />

appropriate consultation with<br />

industry <strong>and</strong> all relevant<br />

stakeholders.<br />

page iv


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

n Investigate the process to enable<br />

a project proponent to issue a<br />

notice under section 29 of native<br />

title Act (NTA) similar to their right<br />

to commence ILUA negotiations.<br />

o Revisit the preliminary findings<br />

from the review of Native Title<br />

Protection Conditions <strong>and</strong><br />

implement relevant improvement<br />

measures suggested by the<br />

industry.<br />

p Establish a government-industry<br />

taskforce to investigate feasibility<br />

of new purpose-built legislation<br />

for assessment <strong>and</strong> approval<br />

processes, incorporating all<br />

current processes, ensuring no<br />

duplication of assessment, public<br />

notification or approval –<br />

including on-<strong>and</strong> off-lease<br />

approvals <strong>and</strong> provision for<br />

declaration of ‘significant<br />

projects’.<br />

q Ensure that assessment<br />

processes under state <strong>and</strong><br />

Commonwealth environmental<br />

legislation can again occur<br />

concurrently.<br />

r Develop a risk-based assessment<br />

process, particularly in<br />

establishing the terms of<br />

reference for an Environmental<br />

Impact Statement <strong>and</strong> the<br />

conditions of an Environmental<br />

Authority, so both reflect the<br />

likelihood of significant impacts.<br />

3. Regulatory certainty<br />

Recommendations to address industry<br />

concern that the ‘regulatory rules’ can be<br />

revisited, revised <strong>and</strong> updated:<br />

s Amend the current petroleum <strong>and</strong><br />

gas legislation (which was<br />

designed for conventional<br />

petroleum operations) in a<br />

consultative <strong>and</strong> timely manner<br />

as a result of the significant<br />

<strong>growth</strong> of the coal-seam gas<br />

industry in <strong>Queensl<strong>and</strong></strong>.<br />

t Develop a capability certification<br />

process for applying for<br />

exploration tenures so that a<br />

company is not required to<br />

separately justify their bona fides<br />

with each new application.<br />

u Undertake an urgent <strong>and</strong><br />

consultative review of DERM’s<br />

Guideline 4 for deciding the level<br />

of impact assessment for the<br />

mining industry <strong>and</strong> options for<br />

streamlining the EIS trigger<br />

criteria.<br />

v Recommencement of the review<br />

of model mining conditions for<br />

environmental authorities (EA),<br />

with a firm deadline for the<br />

satisfactory completion of this<br />

review during 2010<br />

w Examine the feasibility of greater<br />

consistency between the<br />

Petroleum <strong>and</strong> Gas Act <strong>and</strong><br />

Mineral Resources Act for<br />

exploration tenements where<br />

applicable, while recognising the<br />

different nature of mineral <strong>and</strong><br />

petroleum exploration (especially<br />

Coal Seam Gas)<br />

x Ensure that there is a genuine<br />

imperative for commercial<br />

negotiations to proceed in the<br />

development of coordination<br />

agreements when tenures<br />

overlap by developing a process<br />

for one party to instigate a formal<br />

request for a ministerial<br />

preference decision after a fixed<br />

period of perhaps six months.<br />

page v


SUPPORTING RESOURCE SECTOR GROWTH<br />

INDUSTRY PROPOSALS FOR STREAMLINING QUEENSLAND’S<br />

APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW OF QUEENSLAND’S EXPLORATION<br />

AND DEVELOPMENT APPROVAL PROCESSES<br />

INTRODUCTION<br />

<strong>Queensl<strong>and</strong></strong>’s trade-exposed<br />

administration<br />

It is difficult to overstate the importance of a<br />

world-class project approval <strong>and</strong> tenure<br />

system to the <strong>Queensl<strong>and</strong></strong> economy. The<br />

administrative scaffolding around approvals<br />

<strong>and</strong> tenure fundamentally shapes<br />

<strong>Queensl<strong>and</strong></strong>’s competitiveness on global<br />

commodity markets. As such, the<br />

effectiveness of these processes needs to be<br />

continuously improved, streamlined <strong>and</strong> finetuned<br />

to ensure that <strong>Queensl<strong>and</strong></strong>’s systems<br />

remain in touch with the best in the world.<br />

Why are approvals so important? The<br />

industry’s perception of the relative speed <strong>and</strong><br />

complexity of an approval process in a<br />

<strong>resource</strong> jurisdiction like <strong>Queensl<strong>and</strong></strong> is key to<br />

informing the investment decisions that the<br />

industry makes in <strong>resource</strong> projects. A system<br />

that is fast, predictable <strong>and</strong> makes it easy to<br />

track progress means that companies can<br />

invest with some confidence that necessary<br />

decisions will be delivered in reasonable time<br />

<strong>and</strong> with certainty.<br />

While <strong>Queensl<strong>and</strong></strong>’s <strong>resource</strong> endowments<br />

are fixed, <strong>Queensl<strong>and</strong></strong> exports into global<br />

commodity markets <strong>and</strong> <strong>Queensl<strong>and</strong></strong>’s<br />

operations are increasingly funded from global<br />

finance markets. As a result, <strong>resource</strong><br />

opportunities have to compete on a global<br />

basis, so opportunities are highly mobile. The<br />

role of approval systems in <strong>Queensl<strong>and</strong></strong>’s<br />

competitiveness is essential to underst<strong>and</strong>, as<br />

it is rare to have an area of public<br />

administration where performance is so starkly<br />

trade exposed.<br />

The recently released 2010 Fraser Institute<br />

<strong>Mining</strong> Survey of 72 global jurisdictions places<br />

<strong>Queensl<strong>and</strong></strong> at number ten for our minerals<br />

prospectivity. However, on the all-important<br />

‘policy potential index’, which factors into this<br />

rating the overall quality of our minerals <strong>sector</strong><br />

regulation <strong>and</strong> administration, <strong>Queensl<strong>and</strong></strong><br />

drops back to a disappointing 24 th ranking.<br />

The Industry Working Group is of the view that<br />

government adoption of this report’s<br />

recommendations will set <strong>Queensl<strong>and</strong></strong> on the<br />

path towards a closer match between our<br />

prospectivity <strong>and</strong> our reputation for having<br />

exploration <strong>and</strong> development approval<br />

processes geared to <strong>supporting</strong> <strong>resource</strong><br />

<strong>sector</strong> <strong>growth</strong>.<br />

The role of <strong>resource</strong>s in <strong>Queensl<strong>and</strong></strong><br />

The <strong>Queensl<strong>and</strong></strong> <strong>resource</strong> <strong>sector</strong>’s value of<br />

production was $50.8 billion in 2008/09 with<br />

thermal <strong>and</strong> metallurgical coal exports<br />

accounting for approximately 60 percent of<br />

this value. In order, the <strong>sector</strong>’s largest trading<br />

partners are Japan, India, Korea, Taiwan,<br />

Germany, United Kingdom, Brazil, France <strong>and</strong><br />

China.<br />

In 2008/09, the <strong>sector</strong> directly <strong>and</strong> indirectly<br />

employed some 12 percent of the <strong>Queensl<strong>and</strong></strong><br />

workforce <strong>and</strong> accounted for approximately 20<br />

percent of the <strong>Queensl<strong>and</strong></strong> economy.<br />

The reward for Australia <strong>and</strong> <strong>Queensl<strong>and</strong></strong> in<br />

pursuing progressive reforms that allow the<br />

<strong>sector</strong> to build upon its comparative advantage<br />

in <strong>resource</strong> exports in increasingly competitive<br />

global markets is profound.<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

The <strong>Queensl<strong>and</strong></strong> Resources Council (QRC) 1<br />

estimates that an approximate 60 percent<br />

increase in the value of production from $50.8<br />

billion on 2008/09 to more than $78 billion by<br />

2019/20 is feasible 2 . This would substantially<br />

increase the <strong>sector</strong>’s employment, gross state<br />

product, <strong>and</strong> tax <strong>and</strong> community contributions<br />

resulting in significant additional socioeconomic<br />

benefits. The <strong>sector</strong>’s <strong>growth</strong> has<br />

the potential to far exceed all other <strong>sector</strong>s of<br />

the <strong>Queensl<strong>and</strong></strong> economy.<br />

Review objectives<br />

The Premier appointed Michael Roche, Chief<br />

Executive of QRC, to chair an independent<br />

industry review to set out industry’s<br />

perspectives on reforming exploration <strong>and</strong><br />

development approval processes.<br />

The government has set an ambitious target of<br />

creating 100,000 new jobs in <strong>Queensl<strong>and</strong></strong>. As<br />

the <strong>resource</strong> industry generates one fifth of all<br />

economic activity in <strong>Queensl<strong>and</strong></strong> <strong>and</strong> has good<br />

prospects for <strong>growth</strong>, the government has<br />

focussed on how to maximise the <strong>resource</strong><br />

industry’s job creation potential. To put the<br />

<strong>sector</strong>’s role as an engine of job generation<br />

into context, the successful development of<br />

the LNG industry has been forecast to create<br />

some 18,000 new jobs in <strong>Queensl<strong>and</strong></strong>.<br />

1 QRC is a non-government organisation representing the<br />

interests of companies involved in exploration, mining,<br />

minerals processing <strong>and</strong> energy production in<br />

<strong>Queensl<strong>and</strong></strong>. The QRC works with governments,<br />

community groups <strong>and</strong> non-government organisations to<br />

ensure that the state's <strong>resource</strong>s are developed profitably<br />

<strong>and</strong> competitively, in a socially <strong>and</strong> environmentally<br />

responsible way.<br />

QRC's mission is to secure an environment conducive to<br />

the long-term sustainability of the mineral <strong>and</strong> energy<br />

<strong>resource</strong>s <strong>sector</strong> in <strong>Queensl<strong>and</strong></strong>. The QRC has a strong<br />

track record of providing governments with prompt,<br />

representative <strong>and</strong> strategic advice on policies <strong>and</strong><br />

programs affecting the <strong>resource</strong>s <strong>sector</strong>.<br />

2 <strong>Queensl<strong>and</strong></strong> Resources Council pre budget submission<br />

‘The policy agenda for a sustainable <strong>resource</strong>s <strong>sector</strong>’,<br />

URL :<br />

http://www.qrc.org.au/_dbase_upl/Final%20Submission%<br />

20Qld%20Pre-Budget%20Submission%20-<br />

%20March2010.pdf<br />

One of these strategies has been to minimise<br />

delays in reaching decisions on <strong>resource</strong><br />

project proposals. In delivering this world-class<br />

assessment process, it is essential to focus on<br />

(a) the performance <strong>and</strong> <strong>resource</strong>s of each of<br />

the government agencies involved <strong>and</strong> (b) the<br />

coordination between these agencies.<br />

Overview of working group processes<br />

The Premier announced the Review at QRC’s<br />

annual lunch in November 2009. During the<br />

development of this report, the working group<br />

met regularly to advise, comment <strong>and</strong> oversee<br />

a process of calling for submissions from<br />

industry, the collection <strong>and</strong> collation of the<br />

common themes <strong>and</strong> also the successive<br />

refinement of a draft report.<br />

While the time was short, <strong>and</strong> the commercial<br />

expertise required for the process is in high<br />

dem<strong>and</strong>, the extent <strong>and</strong> depth of the industry<br />

engagement in these processes reflects the<br />

seriousness of the task. A full listing of the<br />

working group members is at appendix 2.<br />

Companies have been willing to be c<strong>and</strong>id in<br />

discussing their regulatory experiences, which<br />

has allowed the common themes <strong>and</strong><br />

consequent recommendations to be identified.<br />

However, the QRC Secretariat was surprised<br />

at the industry’s consistent reticence to be<br />

identifiable in case studies or any public<br />

documents. There is an opportunity to address<br />

industry’s adverse perceptions of elements of<br />

<strong>Queensl<strong>and</strong></strong>’s regulatory culture by identifying<br />

<strong>and</strong> delivering a sustained stream of process<br />

improvements. Collaborating on identifying<br />

reform opportunities will build great confidence<br />

in the objectivity of regulatory processes.<br />

Across all these disparate discussions, the<br />

overarching concern from industry was the<br />

need for certainty. While there were lots of<br />

variations around this common theme, the<br />

issues raised by industry can be grouped into<br />

three broad categories:<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

1 certainty of pace – improving<br />

processes to increase the speed<br />

<strong>and</strong> predictability of approvals<br />

2 certainty of scope – industry’s<br />

concern that approval processes<br />

get progressively more complex<br />

as new issues continue to be<br />

added to the list of elements to be<br />

considered<br />

3 regulatory continuity – industry<br />

fears that at any stage the ‘rules’<br />

which have been so painstakingly<br />

developed, for example in an<br />

environmental authority, can be<br />

revisited, revised <strong>and</strong> updated.<br />

Developing a process to measure, manage<br />

<strong>and</strong> benchmark the overall time taken to reach<br />

decisions is seen as essential to wrestle back<br />

some of the causes of unnecessary delays<br />

which have seen significant increases in<br />

approval times (below).<br />

Application process Circa 2005 April 2010 Increase<br />

Simple mining lease application ~ 6 months ~ 12 – 15 months Up to 150%<br />

<strong>Mining</strong> lease with native title ~ 9 – 12 months ~ 15 – 18 months Up to 66%<br />

<strong>Mining</strong> lease with native title <strong>and</strong><br />

environmental impact statement<br />

Source: Industry feedback <strong>and</strong> IRTM.<br />

CERTAINTY OF PACE<br />

Certainty of pace – the need for fast,<br />

predictable processes<br />

A number of industry submissions called out<br />

the need for a new approach to tenure <strong>and</strong><br />

approval processes. Industry submissions<br />

variously described the current system as:<br />

onerous, cumbersome, disjointed, riddled with<br />

significant <strong>and</strong> unexpected delays, requiring<br />

multiple authorities from multiple agencies,<br />

inconsistent, slow, <strong>and</strong> confused.<br />

Certainty of pace relates to two key parts of an<br />

approval/tenure process. The first is the likely<br />

time taken to make the decision <strong>and</strong> the<br />

second is the variability around the time<br />

elapsed. A good process should have a fairly<br />

quick timeline to a decision <strong>and</strong> little variability<br />

around that timing.<br />

~ 18 months ~ 24 – 36 months Up to 100%<br />

When dealing with a multistep complex<br />

process, there is a real risk that the project<br />

uncertainty <strong>and</strong> delays will compound. There<br />

could be 45 separate steps in an approval<br />

process for granting a mining lease for<br />

example, <strong>and</strong> a 1-2 week uncertainty around<br />

each of these steps can add between 45-90<br />

weeks to the project’s critical path.<br />

Slow, stagnant approval processes, for<br />

example where a renewal for an exploration<br />

lease might take longer to secure than the<br />

actual two-year renewal period, have real<br />

costs to a <strong>resource</strong> business. Various<br />

submissions have identified that frequently,<br />

the endorsements for relinquishment,<br />

expenditure <strong>and</strong> renewals occur well after the<br />

date they are legislatively required to be in<br />

effect, <strong>and</strong> are backdated on the permit<br />

documents. The acceptance or not of a<br />

relinquishment variation often takes nearly a<br />

year to be received, at which time the<br />

companies are preparing the relinquished<br />

proposal for the subsequent year, causing<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

issues for companies’ exploration <strong>and</strong><br />

relinquishment strategies.<br />

If there is a question mark over a company’s<br />

tenure, then investors are going to think twice<br />

before investing in that company. More<br />

importantly, if those issues are systemic in a<br />

jurisdiction, then investors may be reluctant to<br />

invest in that jurisdiction. A good approval<br />

process should not stymie investment by<br />

creating regulatory uncertainty.<br />

Streamlining Approvals Project<br />

On 27 January 2009, the then Department of<br />

Mines <strong>and</strong> Energy, now within the Department<br />

of, Employment, Economic Development <strong>and</strong><br />

Innovation (DEEDI), at the direction of the<br />

Premier, announced an initiative to streamline<br />

exploration <strong>and</strong> development approvals<br />

processes as they relate to the mining <strong>and</strong><br />

petroleum industries in <strong>Queensl<strong>and</strong></strong>.<br />

The Streamlining Approvals Project<br />

recommended efficiency improvements to<br />

regulatory <strong>and</strong> other approval processes for<br />

mining <strong>and</strong> petroleum projects while<br />

maintaining strict environmental <strong>and</strong> l<strong>and</strong> use<br />

approval processes. The project reviewed the<br />

legislative requirements <strong>and</strong> administrative<br />

systems for environmental, native title, <strong>and</strong><br />

l<strong>and</strong> use assessments.<br />

A key finding was that the assessment<br />

process is heavily reliant on paper files <strong>and</strong><br />

hard-copy documentation that constrains the<br />

flow of information between proponents <strong>and</strong><br />

regulatory agencies <strong>and</strong> between agencies. A<br />

paper based approvals system also limits the<br />

ability of agencies to maximise the pool of<br />

processing officers by reallocating work across<br />

its regional offices.<br />

An electronic document management <strong>and</strong><br />

work flow system presents an opportunity to<br />

transform the administration of mining,<br />

petroleum <strong>and</strong> gas tenures in <strong>Queensl<strong>and</strong></strong> to<br />

best practice technologies <strong>and</strong> information<br />

solutions.<br />

Industry Working Group recommendation<br />

a. Urgently <strong>resource</strong> <strong>and</strong> implement the<br />

recommendations of the state<br />

government’s internal review,<br />

Streamlining Approvals Project: <strong>Mining</strong><br />

<strong>and</strong> Petroleum Tenure Approval<br />

Process, November 2009, (the ‘Grundy<br />

Report’).<br />

Approval <strong>and</strong> tenure processes determine how<br />

far into the future the state’s pipeline of<br />

developments extend. Slow, inefficient<br />

approval processes can mean that the<br />

commencement of projects can be pushed<br />

back one to two years, which in some cases<br />

will mean that the market opportunity has<br />

passed. It increases the uncertainty for the<br />

company looking to invest.<br />

‘The uncertainty of the length of<br />

time an application may take to be<br />

approved means there is a<br />

fundamental inability for effective<br />

project planning for any related<br />

mining activities <strong>and</strong> an ability to<br />

reach specific project goals in any<br />

anticipated timeframe. Not only<br />

does this affect the applicant’s<br />

business but leads to slower or<br />

halted state development <strong>and</strong><br />

economic <strong>growth</strong>. This also<br />

threatens a future ability to supply<br />

product <strong>and</strong> maintain a<br />

competitive edge in the<br />

marketplace’.<br />

Industry submission<br />

Unexpected regulatory delays bring an<br />

additional layer of uncertainty to the process.<br />

Surprises, which cause unforeseen delays –<br />

or push out approval timeframes, also bring an<br />

additional set of costs <strong>and</strong> frustrations for the<br />

industry.<br />

While it is expected that highly complex, large<br />

or technical proposals will take longer to be<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

assessed, this complexity should be able to be<br />

reasonably anticipated. A good approval or<br />

tenure process should be characterised by few<br />

surprises <strong>and</strong> a low st<strong>and</strong>ard deviation of<br />

approval times around a benchmark.<br />

Industry’s feedback has been that a small<br />

mine project with no complex environmental<br />

approvals <strong>and</strong> no additional mining tenements<br />

required can take 18 months from the<br />

beginning of the EIS process to EIS approval<br />

<strong>and</strong> then a further two to three months for the<br />

grant of an amended Environment Authority<br />

((EA) (if no objections are made to the draft<br />

EA)). In many cases, this two-year delay rivals<br />

the construction time to actually have the mine<br />

up <strong>and</strong> operating.<br />

The slow approval process (<strong>and</strong> this in the<br />

best case small mine scenario) is particularly<br />

trying for industry as the EIS process cannot<br />

begin until project <strong>and</strong> engineering detail is at<br />

or about the end of pre-feasibility engineering<br />

st<strong>and</strong>ard. As a result, the EIS process comes<br />

after serious investments have been made in<br />

the pre-feasibility work, yet causes<br />

engineering progress to be paused while the<br />

regulatory processes play out.<br />

‘An approval timeframe of up to<br />

(or potentially exceeding) four<br />

years does not provide a firm<br />

foundation for capital investment<br />

in the <strong>resource</strong>s <strong>sector</strong>, nor<br />

provide a timeframe which allows<br />

a rapid response to favourable<br />

market conditions’.<br />

Industry submission<br />

A good approval process shouldn’t have these<br />

‘regulatory dead-spots’ where no other<br />

progress can be progressed in parallel.<br />

Industry Working Group recommendation<br />

b. A shift towards parallel rather than<br />

sequential approval processes wherever<br />

possible, particularly in regard to<br />

notification processes.<br />

Case study ~ unnecessary delay<br />

A company had applied simultaneously for a number of mineral exploration permits in October 2006. One of the<br />

applications was proposing to explore in areas of Endangered Regional Ecosystems, which triggered a level 1 noncompliant<br />

EA.<br />

The Department of Environment <strong>and</strong> Resource Management (DERM) had written to the company, unfortunately at<br />

the wrong address, to request an amendment to the application. <strong>Queensl<strong>and</strong></strong> Mines <strong>and</strong> Energy (QME), not knowing<br />

anything about the error, was waiting for the environmental authority to be issued. Then DERM misplaced the<br />

application so neither QME nor DERM were taking care of the application.<br />

After following up with QME a few times <strong>and</strong> being told that they were still waiting for DERM, the company managed<br />

to find out what was happening, amended the EA application <strong>and</strong> provided the additional information required.<br />

During this time DERM changed the case manager several times, which meant that negotiations had to start over<br />

each time. The exploration permit was finally granted in November 2009.<br />

The application took 38 months to be granted.<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

Reviewing <strong>and</strong> awarding tenure<br />

QRC members operating on petroleum<br />

tenures have consistently identified concerns<br />

with the protracted times to have applications<br />

acknowledged or granted. Under this<br />

legislation, companies tendered for l<strong>and</strong><br />

releases <strong>and</strong> submit competitive bids for<br />

exploration authorities. The last of these<br />

tender rounds finished in October 2009 <strong>and</strong> as<br />

at mid-March 2010, the industry was yet to<br />

hear of the outcome.<br />

A five-month wait carries real business costs.<br />

If companies have not heard whether their<br />

bids have been successful, it is difficult for<br />

them to know whether (<strong>and</strong> how much) to<br />

tender for other tenures – both in <strong>Queensl<strong>and</strong></strong><br />

<strong>and</strong> other jurisdictions.<br />

‘For companies with multiple<br />

licences <strong>and</strong>/or approvals being<br />

delayed, they may think twice<br />

about investing in <strong>Queensl<strong>and</strong></strong><br />

when similar opportunities exist in<br />

other states where such delays do<br />

not occur’.<br />

Industry submission<br />

<strong>Queensl<strong>and</strong></strong>’s performance compares poorly<br />

to South Australia with respect to petroleum<br />

exploration tenders. One industry submission<br />

emphasized that a recent South Australian<br />

tender for exploration acreage was announced<br />

after 10 weeks. Moreover, the SA government<br />

had active Indigenous L<strong>and</strong> Lse agreements<br />

(ILUAs) in place over the gazettal areas so<br />

that the successful companies could<br />

immediately commence work.<br />

Compounding the industry’s frustration on this<br />

issue is the fact that until an application for an<br />

exploration permit has been acknowledged,<br />

the DEEDI tenure system does not generate a<br />

tenure number. This tenure number is needed<br />

before an application can be made to DERM<br />

for an environmental authority.<br />

Case study ~ unnecessary delays due to parallel<br />

processes <strong>and</strong> conflicting regulatory interpretation<br />

A proponent sought to supply mining tailings materials to<br />

the construction industry for use as fill or bedding<br />

material. Under the Mineral Resources Act 1989 (MRA)<br />

<strong>and</strong> Environmental Protection Act 1994 all relevant<br />

approvals were granted <strong>and</strong> tenures were in place to<br />

conduct those mining activities. However, due to the<br />

distinction between minerals <strong>and</strong> quarry materials<br />

parallel approvals were necessary under the then<br />

Integrated Planning Act 1997 <strong>and</strong> now the Sustainable<br />

Planning Act 2009. Moreover, different regulatory<br />

systems exist under both Acts <strong>and</strong> different approval<br />

agencies are required (state <strong>and</strong> local government<br />

jurisdictions).<br />

Despite approval by the then Environmental Protection<br />

Agencies, the local government denied its approval on<br />

grounds that were already addressed by EPA for the<br />

mining activity.<br />

The project’s progress was also stalled due to the issue<br />

with the distinction between minerals <strong>and</strong> construction<br />

materials <strong>and</strong> despite working in good faith with the<br />

regulatory authority, part of the operations were<br />

suspended indefinitely since December 2008. This not<br />

only impacted on the organisation’s profit but also<br />

severely damaged its reputation. In addition, local<br />

employment was reduced <strong>and</strong> independent contracting<br />

firms put out of business pending the outcome of legal<br />

action by the state.<br />

The proponent believes much opportunity is lost through<br />

the disjointed approvals process <strong>and</strong> regulatory conflict<br />

created by the distinction between mineral <strong>and</strong> quarry<br />

material.<br />

One company referred to their experience of<br />

having a mine survey plan for a mining lease<br />

that was submitted in 2005, which still has not<br />

been registered. They also had a renewal for a<br />

mineral development licence, which had been<br />

lodged in 2008, but still no decision made <strong>and</strong><br />

renewals of exploration tenures, which were<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

taking 18 months to approve. They suggested<br />

that to avoid such protracted delays that<br />

additional <strong>resource</strong>s would allow approval<br />

agencies could work to fixed deadlines.<br />

Several company submissions sought to<br />

reform the requirement to lodge lease<br />

applications in person at the nearest regional<br />

office, preferring to post them in within a given<br />

timeframe after pegging. The submissions<br />

also suggested consistencies between<br />

regional offices in this regard. Currently, some<br />

offices deal with applications over the counter,<br />

whereas others require a formal appointment.<br />

Another company cited an example where it<br />

applied to renew a tenement for three years,<br />

had no response or acknowledgement of any<br />

kind from DEEDI for over a year, only to find<br />

out the renewal had been approved, but for<br />

only two years. The tenement is now due to be<br />

renewed again without having had the<br />

opportunity to comply with tenement<br />

conditions. DEEDI’s response to the<br />

proponent was that it should assume that its<br />

tenements will be renewed <strong>and</strong> should<br />

continue to commit funds to exploration, even<br />

if the tenement is not guaranteed to be<br />

renewed.<br />

‘Although DEEDI accepts financial<br />

assurances <strong>and</strong> tenement rent in<br />

advance, DEEDI still takes<br />

significant time to grant the<br />

tenement. In addition, the<br />

tenement applicant may need to<br />

negotiate compensation with the<br />

l<strong>and</strong>owner prior to conducting<br />

exploration activities, but will have<br />

no idea when the tenement will<br />

actually be granted <strong>and</strong> activity<br />

commence.’<br />

Industry submission<br />

For a seasonal industry like agriculture, the<br />

timing of when industry activity commences<br />

will have a major bearing on the impact on<br />

production <strong>and</strong> hence compensation. The<br />

uncertainty of when <strong>resource</strong> activity might<br />

start is an unnecessary source of friction with<br />

l<strong>and</strong>holders.<br />

Industry Working Group recommendations<br />

c. Improve accountability for approval<br />

timeframes by providing for targets at<br />

each stage of the approvals process<br />

through some combination of:<br />

• Setting target times for approval –<br />

eg an environmental impact<br />

statement process (the<br />

components within the control of<br />

the government) should take 16<br />

months.<br />

• A clear process of agreeing a<br />

series of target project milestones<br />

(perhaps with the case manager)<br />

at the beginning of a project<br />

(having regard to departmental<br />

m<strong>and</strong>atory deadlines <strong>and</strong><br />

benchmarked timeframes for<br />

action).<br />

• Setting deadlines with a ‘deemed<br />

as approved’ clause (ie if the<br />

decision has not been made by<br />

the deadline, then the<br />

applications / licence / project is<br />

deemed to have been approved.<br />

• The opportunity to have a<br />

process or outcome<br />

independently certified (for<br />

example having l<strong>and</strong><br />

rehabilitation signed off by a<br />

properly accredited consultant).<br />

How can reform progress be measured?<br />

Western Australia produces a quarterly<br />

scorecard, which sets out an aggregate<br />

picture of the process of renewing <strong>and</strong><br />

awarding tenure. They have set targets for<br />

each process that are measured in weeks, not<br />

years. For example, the Western Australian<br />

Government aims to have a decision made on<br />

mineral exploration licence in 65 days.<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

The WA scorecard reports the total activity<br />

levels in terms of new applications received,<br />

decisions made, decisions carried over <strong>and</strong><br />

against a percentage of approvals secured<br />

within time targets. The <strong>Queensl<strong>and</strong></strong> <strong>resource</strong>s<br />

<strong>sector</strong> commends the transparency that such<br />

a reporting initiative provides to the<br />

government.<br />

Industry Working Group recommendation<br />

d. To improve the transparency of<br />

<strong>Queensl<strong>and</strong></strong>’s approval processes,<br />

publish a scorecard that tracks the<br />

average time to make a decision for<br />

each category of application as well as<br />

the number of applications received <strong>and</strong><br />

processed each quarter.<br />

Native title <strong>and</strong> cultural heritage issues<br />

Native title issues continue to be a risk to<br />

projects by virtue of time, cost <strong>and</strong> uncertainty.<br />

Industry submissions note that this may be a<br />

relevant time to seek to resolve some<br />

significant issues in this area as it is<br />

understood that the federal government is<br />

currently looking at possible amendments to<br />

the Native Title Act 1993 (NTA).<br />

An example was cited in submissions of a<br />

<strong>resource</strong> company that spent in excess of $2m<br />

seeking to negotiate an ILUA with their native<br />

title parties. Negotiations are still continuing. It<br />

is acknowledged that there are a range of<br />

reasons that make it difficult to cap the cost of<br />

these negotiations. Industry suggests the<br />

same procedures be put in place to bring an<br />

ILUA to a conclusion as apply to failed<br />

compensation negotiations with non-<br />

Indigenous l<strong>and</strong> holders. It is recommended<br />

that industry <strong>and</strong> DERM put together a joint<br />

submission for discussion with the<br />

Commonwealth Government addressing this<br />

issue to ensure that both Indigenous <strong>and</strong> nonindigenous<br />

compensation issues are<br />

addressed in a consistent manner.<br />

Another example was provided where a<br />

company negotiated a Cultural Heritage<br />

Management Plan (CHMP) <strong>and</strong> it took a long<br />

time to get the parties to agree. At present the<br />

company has a CHMP which has been signed<br />

by all signatories except one who seems to<br />

have disappeared <strong>and</strong> the company has not<br />

been able to locate that person. After all the<br />

efforts, the company still does not have a<br />

CHMP which is m<strong>and</strong>atory if a project is<br />

required to go through the EIS process. This<br />

could be a cause of significant unnecessary<br />

delay to a project.<br />

There are also well documented concerns<br />

over the difficulties in giving effect to<br />

government policies <strong>and</strong> regulation in the<br />

absence of a well organised <strong>and</strong> coherent<br />

native title party. A number of submissions<br />

mentioned industry’s frustration at delays<br />

caused by infighting <strong>and</strong> politics from native<br />

title parties.<br />

Industry Working Group recommendation<br />

e. Examine the feasibility of bringing<br />

indigenous L<strong>and</strong> Use Agreement<br />

negotiating cost with native title parties<br />

in line with compensation negotiations<br />

involving non-native title parties to<br />

ensure both indigenous <strong>and</strong> nonindigenous<br />

compensation issues are<br />

addressed in a consistent manner.<br />

Current processes require a mining lease<br />

application to be deferred until native title<br />

matters are resolved. Industry suggests that<br />

these mining lease processes should be able<br />

to continue in parallel with native title, so that<br />

as soon as native title is resolved, the mining<br />

lease can be granted immediately.<br />

‘Grants of new exploration permits are<br />

taking significant amounts of time, even<br />

where native title is extinguished <strong>and</strong><br />

there is no requirement for advertising.<br />

We currently have three applications<br />

lodged in December 2008, June 2009<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

<strong>and</strong> November 2009 awaiting<br />

decisions’.<br />

Industry submission<br />

One submission cited the example of an<br />

application for an authority to prospect (ATP)<br />

under Section 31 of NTA where the delay in<br />

public notification allowed an indigenous group<br />

to lodge a new claim beyond the otherwise<br />

prescribed period <strong>and</strong> hence put the company<br />

back into negotiation <strong>and</strong> further delayed the<br />

project.<br />

A number of submissions have noted the<br />

issues relating to the current requirement for<br />

an ILUA to be negotiated for mining<br />

infrastructure, such as rail loops servicing a<br />

mine. Whereas there are strict timeframes<br />

associated with the right to negotiate, no such<br />

timeframes exist for the negotiation of an<br />

ILUA. Industry recommends that provision for<br />

the right to negotiate using the s.29 process<br />

also applies to the right to mine <strong>and</strong> future<br />

acts associated with the right to mine, such as<br />

rail loops, pipelines <strong>and</strong> other directly<br />

associated infrastructure. This will ensure that<br />

all these issues can be dealt with as part of<br />

the same negotiation.<br />

Industry Working Group recommendation<br />

f. Enable the project proponents to opt for<br />

either Indigenous L<strong>and</strong> Use Agreement<br />

or the right to negotiate using the s.29<br />

process for all the elements of the right<br />

to mine <strong>and</strong> future acts associated with<br />

the right to mine, such as rail loops,<br />

pipelines <strong>and</strong> other directly associated<br />

infrastructure.<br />

Environment <strong>and</strong> related approval issues<br />

Currently there is a requirement to advertise<br />

an Environmental Management Plan (EMP) or<br />

amendment that has already been advertised<br />

as part of an EIS process. This requirement<br />

seems unnecessary <strong>and</strong> only adds to delay<br />

without achieving any environmental outcome.<br />

A number of submissions identified concerns<br />

with the multiple public notification periods,<br />

each of which has a minimum period for<br />

comment of at least 20 business days, which<br />

is often extended. In some cases, these<br />

multiple notifications do not engage additional<br />

stakeholders but rather allow the same parties<br />

to lodge increasingly shrill <strong>and</strong> vexatious<br />

objections.<br />

Submissions have identified unnecessary<br />

delays in EIS <strong>and</strong> EA revision approvals<br />

process as a significant project (business) risk.<br />

This is because the project value is time<br />

sensitive <strong>and</strong> project value will be eroded if<br />

commencement is unnecessarily delayed due<br />

to approvals process.<br />

‘Whilst we endeavour to allow sufficient<br />

‘float’ in approvals timelines for DERM<br />

delays (acknowledging that occasional<br />

delays are reasonable) there has been<br />

at least one occasion where contractors<br />

were directed to alternative work (at a<br />

significant cost) as approvals were<br />

unreasonably delayed.’.<br />

Industry submission<br />

The charts below set out part of the reason<br />

that the <strong>resource</strong> industry is so interested in a<br />

timely approval process. The stylised <strong>resource</strong><br />

project below moves through three distinct<br />

phases.<br />

The first phase is the advanced exploration<br />

phase – in figure 1 that is around five years of<br />

exploring <strong>and</strong> proving up a target <strong>resource</strong>.<br />

The second phase is securing approval to<br />

move into operation <strong>and</strong> commissioning the<br />

project. In figure 1, this second phase also<br />

lasts around five years <strong>and</strong> is marked by major<br />

investments (<strong>and</strong> a corresponding fall in<br />

cashflow). The third <strong>and</strong> final stage is the<br />

operational stage, where the project is in<br />

production <strong>and</strong> cashflow is positive. In figure<br />

1, this phase lasts for around 20 years.<br />

page 9


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

Figure 1: Indicative <strong>resource</strong> project –<br />

cashflows <strong>and</strong> net present value (NPV)<br />

through time.<br />

The red line in figure 1, maps the change in<br />

the net present value (NPV) of the project<br />

during the different operational stages as<br />

cashflow changes.<br />

Figure 2: Delays destroy project value.<br />

Figure 2 provides a comparision between the<br />

economics of the original project (as described<br />

in figure 1) <strong>and</strong> the same project with a twoyear<br />

delay in securing approvals. The blue net<br />

present value (NPV) line describes the original<br />

project, with a final NPV of around $1.8 billion;<br />

whereas the red line describes the NPV of the<br />

delayed project, where the<br />

final NPV is $1.5 billion. The<br />

difference is around 21<br />

percent, a dramatic<br />

destruction of value. The<br />

graphs clearly demonstrate<br />

significant devaluation of a<br />

project’s NPV <strong>and</strong> due to<br />

delayed approvals, which<br />

then translates into delayed<br />

<strong>and</strong> diminished royalty<br />

returns for the state.<br />

Approvals delay have an<br />

even larger impact on the<br />

NPV of smaller shorter duration projects. A 12month<br />

delay to a project that has a 15-year<br />

development <strong>and</strong> production life is a major<br />

issue that impacts significantly on the project’s<br />

profitability.<br />

The situation is exacerbated by the fact that<br />

market cycles invariably<br />

impact on the success of new<br />

start-ups <strong>and</strong> forward planning<br />

is difficult with the current<br />

approvals situation.<br />

One submission cited an<br />

example where<br />

supplementary EIS (SEIS)<br />

responses were due in early<br />

November 2004. All were<br />

received except EPA which<br />

was received just before<br />

Christmas but a meeting<br />

could not be held until<br />

January 2005 as EPA staff<br />

was on leave. In the meeting<br />

when the opening point was<br />

discussed, it was noted that<br />

the response to EPA’s query<br />

was in the EIS, but the EPA<br />

officer said that he was requested to review<br />

the SEIS not the EIS. The meeting closed<br />

immediately <strong>and</strong> EPA took nearly four months<br />

to provide an updated response <strong>and</strong> the<br />

Coordinator General’s response was received<br />

in late March 2005. In another case, EPAs<br />

page 10


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

response to the EIS was four weeks late <strong>and</strong><br />

its response to the SEIS was still not received<br />

15 weeks later.<br />

One company submission detailed a case<br />

where it was involved in a competing<br />

application with another company <strong>and</strong> the<br />

department informed them that due to the rewriting<br />

of departmental guidelines for<br />

assessing competing applications, all<br />

competing applications have been postponed<br />

since 2008. Lack of <strong>resource</strong>s was cited for<br />

this delay. It is understood that once the policy<br />

has been finalised, assessment of the<br />

applications will commence.<br />

Resourced for industry <strong>growth</strong>. Almost all<br />

industry submissions made mention of<br />

<strong>resource</strong> constraints, staff churn <strong>and</strong><br />

inconsistencies between regional offices <strong>and</strong><br />

individual officers’ interpretation of their task. It<br />

is clear to industry that a major part of the<br />

uncertainty of the pace of approval <strong>and</strong> tenure<br />

processes stems from a shortfall of people<br />

<strong>and</strong> expertise within government to administer<br />

the system. A world-class approvals <strong>and</strong><br />

tenure system should be properly <strong>resource</strong>d<br />

with the appropriately trained people,<br />

delegations, processes <strong>and</strong> expertise to make<br />

decisions in a timely manner.<br />

A perennial issue for the administration of<br />

exploration <strong>and</strong> development approval<br />

processes is that industry activities are<br />

strongly cyclic. For departments which<br />

manage these processes their workload is<br />

largest at the time when industry’s imperative<br />

for prompt decisions is greatest. This is<br />

inconsistent with a system of fixed<br />

departmental <strong>resource</strong>s.<br />

Industry can see the benefits of setting fees at<br />

a level where they provide a degree of ‘price<br />

signal’ to the department to secure additional<br />

<strong>resource</strong>s. Any revenue raised needs to be<br />

applied to securing additional <strong>resource</strong>s in<br />

order to maintain the timeliness of decisions<br />

being made. These revenues should<br />

supplement, not replace, the base level of<br />

public funding for administration to avoid<br />

theoretical debates over the efficiency of<br />

government processes <strong>and</strong> the degree of<br />

public good generated by the administration.<br />

The calibration of a system of fees <strong>and</strong><br />

charges needs to be developed in close<br />

consultation with industry. Given the diversity<br />

of <strong>resource</strong> <strong>sector</strong> activity in <strong>Queensl<strong>and</strong></strong><br />

across companies ranging from start-up to<br />

major global commodity producers, the system<br />

of industry contributions needs to be<br />

constructed so as not to distort industry<br />

structure or unfairly disadvantage one <strong>sector</strong>.<br />

Furthermore, industry’s willingness to consider<br />

a move towards a greater degree of industry<br />

funding would be contingent on securing<br />

government support for the whole set of<br />

reforms proposed in this report.<br />

Industry Working Group recommendations<br />

g. Automatically increase department<br />

resourcing as industry activity grows,<br />

through a balanced<br />

system of fees <strong>and</strong> charges, with the<br />

right elements of user pays <strong>and</strong> public<br />

benefit.<br />

Several industry submissions raised the issue<br />

of lack of accessibility for the proponents to<br />

discuss any change of scope with the relevant<br />

department, especially DERM. On a number<br />

of occasions, it is alleged that DERM has<br />

refused to meet with a project proponent to<br />

clarify or discuss the need or objective for<br />

such changes.<br />

‘DERM could benefit by adopting a<br />

policy of working with the project<br />

proponent to achieve the best<br />

environmental outcomes <strong>and</strong><br />

particularly the best TOR for a project.<br />

Unfortunately their current approach<br />

seems to be to distance themselves<br />

from the proponent as much as<br />

page 11


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

possible, perhaps to maintain the public<br />

perception of impartiality.’<br />

Industry submission<br />

Industry submissions expressed frustration at<br />

the complexity of a multi-layered approval<br />

process, conducted by multiple agencies who<br />

fail to communicate effectively, so that<br />

proponents are answering repeated <strong>and</strong><br />

overlapping information requests. The risk of<br />

such a complex process is that there is no one<br />

except the proponent with an interest in<br />

managing the time taken <strong>and</strong> monitoring how<br />

long each stage of the process has taken.<br />

Industry saw the solution to this complexity as<br />

a package of reforms which would deliver (a) a<br />

lead agency tasked with ‘owning’ the approval<br />

process, (b) the establishment within that<br />

agency of a pool of experienced case<br />

managers who would provide a consistent first<br />

point of contact for the project <strong>and</strong> also (c)<br />

system changes to deliver a 21 st century work<br />

flow system which would allow agencies to<br />

move from shuffling hard copies to a seamless<br />

electronic management system which would<br />

encompass all the processes surrounding the<br />

assessment <strong>and</strong> grant of tenure including<br />

environment, <strong>and</strong> native title processes.<br />

The Premier announced on 28 January 2009<br />

that the (then) Department of Mines <strong>and</strong><br />

Energy would ‘...become the lead agency<br />

responsible for the coordination of timely<br />

assessments for Environmental Impact<br />

Statements that relate to mining exploration<br />

development <strong>and</strong> approval...’.<br />

Submissions made it very clear that industry<br />

saw real value in this approach of establishing<br />

a lead agency to ‘...guide projects through all<br />

parts of the approval process across all<br />

relevant agencies, particularly the Department<br />

of Infrastructure <strong>and</strong> Planning (DIP); the<br />

Environment Protection Agency (EPA) <strong>and</strong><br />

Department of Natural Resources <strong>and</strong> Water<br />

(NRW).’ 3 Given the subsequent machinery of<br />

government changes, industry supports<br />

DEEDI continuing to play this critical role of<br />

lead agency.<br />

The industry is attracted to the model of<br />

having a case manager – an experienced<br />

official who is responsible for overseeing a<br />

project <strong>and</strong> its stewardship through the<br />

labyrinth of agencies, officials <strong>and</strong> offices.<br />

Further, industry recommends that these case<br />

officers should be empowered to suggest<br />

process refinements based on their<br />

accumulated experience in negotiating the<br />

whole process. As this process evolves, the<br />

case manager could be allocated relevant<br />

decision making powers.<br />

‘There is no single point of contact<br />

within a department with assigned<br />

responsibility for taking an application<br />

from submission to conclusion. Whilst<br />

departmental staff are helpful when<br />

contacted in relation to the progress of<br />

an application or a given query,<br />

information first has to be requested by<br />

the applicant, <strong>and</strong> there are often<br />

several people that will need to be<br />

spoken with depending on the nature of<br />

the application.’<br />

Industry submission<br />

3 Deputy Premier Paul Lucas, <strong>Queensl<strong>and</strong></strong><br />

Government’s response to the <strong>Queensl<strong>and</strong></strong> Resources<br />

Council’s 2009 Election Policy Agenda, page 1, March<br />

2009.<br />

page 12


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

Case study ~ benefits of case management<br />

As part of the call for case studies <strong>and</strong> submissions, a number of companies who had been allocated a DEEDI case<br />

manager wanted to acknowledge the value that this approach had delivered for their project. None of the companies were<br />

able to quantify the time <strong>and</strong> money saved, but a typical comment was, ‘if you don’t fall down a hole, you don’t know how<br />

much damage it would have done to you.’ The common sentiment was that it saved projects from wasting time, money<br />

<strong>and</strong> effort on processes which were unnecessary.<br />

Clearly the experience of having a case manager had not only saved time for the project proponents, but that it had also<br />

greatly increased the transparency of the process. One company commented, ‘it was reliable as clockwork, every week<br />

we got a call from our case manager, just to update us on progress <strong>and</strong> to see if we had any concerns – that’s fantastic<br />

service’.<br />

Another said, ‘taking a project through an approvals process is hard work, but this is a really smart way for the<br />

government to acknowledge the importance of my project. It’s good PR for <strong>Queensl<strong>and</strong></strong> <strong>and</strong> it made me more confident of<br />

meeting my project deadline.’<br />

The issues that industry submissions called out varied – some saved time, some appreciated the clear communications,<br />

others saw the value in the confidence of having someone in their corner.<br />

‘Every single <strong>resource</strong> project in <strong>Queensl<strong>and</strong></strong> should have a case manager – simple as that. It’s a great idea.’<br />

Industry submission<br />

Another important aspect of the reforms which<br />

industry sees as necessary to give full effect to<br />

the lead agency concept is to move to a<br />

modern work-flow system which would allow<br />

government to work electronically <strong>and</strong> online.<br />

The current paper-based system is thoroughly<br />

outmoded <strong>and</strong> must be complex, difficult <strong>and</strong><br />

expensive to manage. A paper-based system<br />

lacks transparency <strong>and</strong> makes it difficult to<br />

track progress, whereas industry would like to<br />

see a modern customer-focused system<br />

whereby the progress of an application can be<br />

tracked online.<br />

The final aspect of the lead agency concept is<br />

to ensure the appropriate <strong>resource</strong>s are<br />

available to administer the system. This<br />

requires not just more h<strong>and</strong>s, but more<br />

experienced h<strong>and</strong>s. The development of a<br />

lead agency will require more delegations to<br />

provide officers with the confidence to make<br />

decisions. Good examples of where industry<br />

can see the need for additional appropriate<br />

<strong>resource</strong>s include in the native title area <strong>and</strong> to<br />

provide DERM with a pool of specialist mining<br />

officers to mirror the specialist capability which<br />

has been developed in petroleum <strong>and</strong> gas.<br />

Industry Working Group recommendation<br />

h. Move to a virtual model of a one stop<br />

shop, through the confirmation of<br />

DEEDI as the lead agency that is<br />

responsible for managing the overall<br />

project approval process from end to<br />

end. To realise the benefits of this lead<br />

agency model also requires:<br />

• the appointment of a dedicated<br />

case manager for each project to<br />

act as an important coordination<br />

point within government, as a<br />

contact point for proponents <strong>and</strong><br />

to be responsible for stewarding<br />

the project through the application<br />

processes<br />

• the implementation of a modern<br />

work-flow system to provide<br />

seamless management of all<br />

aspects of the assessment <strong>and</strong><br />

granting of tenure, including<br />

environmental <strong>and</strong> native title<br />

processes<br />

• appropriate <strong>resource</strong>s <strong>and</strong><br />

delegations are available within<br />

key concurrence agencies<br />

including <strong>resource</strong>s for native title<br />

page 13


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

<strong>and</strong> the appointment of specialist<br />

officers within DERM to focus on<br />

mining projects.<br />

The requirement for the grant of mining leases<br />

to be approved by Governor in Council adds<br />

two to three months to the granting of an<br />

(exhaustively reviewed) mining lease.<br />

Similarly, the renewal of a mining lease is also<br />

required to be approved by Governor in<br />

Council. As the grant <strong>and</strong> renewal of<br />

production leases under the PGA does not<br />

require such a high level of sign off, it is<br />

difficult to underst<strong>and</strong> why this power is not<br />

delegated to the chief executive.<br />

Industry Working Group recommendation<br />

i. Eliminate the need for mining leases<br />

<strong>and</strong> renewals to be signed off by<br />

Governor in Council.<br />

The inclusion of statutory timeframes for<br />

decisions under the Environmental Protection<br />

Act was strongly supported by Industry. This<br />

benefit is being eroded by the issuing of<br />

multiple Notices of Extension, often seeking<br />

minor points of additional information or<br />

seeking more time to complete the<br />

assessment. Consideration should be given to<br />

limiting the number of extension notices, or<br />

refining the grounds upon which they can be<br />

issued. The root cause appears to relate to<br />

resourcing levels <strong>and</strong> skills within DERM.<br />

Case study ~ lengthy delay due to several preapproval<br />

requirements<br />

A proponent proposes to establish a greenfield mine<br />

development. In order for the project to be executed,<br />

the following key approvals must be secured:<br />

• Coordinator General’s approval of the EIS<br />

• EA for <strong>Mining</strong> Activities<br />

• <strong>Mining</strong> Lease (ML) granted under the<br />

Mineral Resources Act 1989 (MRA).<br />

Whilst the EIS process is nearing completion, the<br />

project has experienced significant delays during the<br />

course of the process resulting from:<br />

• resourcing constraints within government<br />

agencies, including over-stretched project<br />

managers within DERM <strong>and</strong> the<br />

Department of Infrastructure <strong>and</strong> Planning<br />

(DIP)<br />

• insufficient coordination among government<br />

agencies. Until recently, when DEEDI<br />

appointed a case manager, no one within<br />

DEEDI was responsible for driving the<br />

process <strong>and</strong> ensuring that government<br />

agencies are performing their tasks or<br />

review in a timely fashion<br />

• government agencies not meeting<br />

reasonable timeframes<br />

• increased level of Social Impact<br />

Assessment in the absence of agreed<br />

guidelines or structure for Social Impact<br />

Management Plans.<br />

It is estimated that the project has experienced a two to<br />

four month delay as a result of the issues set out above<br />

which led to the lost market opportunity the company<br />

was targeting. It is expected that the remaining steps in<br />

the process will further delay the execution of the<br />

project. The process of reaching a decision on the<br />

application for a mining lease is expected to take<br />

longer than three years.<br />

The driver for this delay is the unnecessarily lengthy<br />

EA <strong>and</strong> ML processes (which follows what has already<br />

been a 20 month process of developing an EIS).<br />

Specifically:<br />

• draft EA <strong>and</strong> advertising of draft EA<br />

• referral to the L<strong>and</strong> Court for any objections<br />

to the grant of the ML (current schedule<br />

based on a lengthy L<strong>and</strong> Court process<br />

hearing multiple objections <strong>and</strong> the L<strong>and</strong><br />

Court’s overcrowded docket)<br />

• grant process of ML (DEEDI briefing,<br />

ministerial recommendation, Governor in<br />

Council grant).<br />

An elapse of 20 months following the approval of the<br />

project EIS until grant of the EA <strong>and</strong> ML present a<br />

considerable lost opportunity to deliver the project<br />

earlier.<br />

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<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

The <strong>resource</strong> <strong>sector</strong> is a diverse set of<br />

industries <strong>and</strong> even within the mining industry,<br />

there are a wide range of operations<br />

encompassing prospecting for gems, small<br />

mines <strong>and</strong> the extractive industries. These<br />

smaller scale industries make a valuable<br />

contribution to the <strong>Queensl<strong>and</strong></strong> economy, yet<br />

the development of exploration <strong>and</strong><br />

development approval processes tend to be<br />

designed with an eye to the large-scale highvolume<br />

commodities like coal, bauxite, copper<br />

<strong>and</strong> zinc.<br />

While members of the North <strong>Queensl<strong>and</strong></strong><br />

Miners’ Association (NQMA), the <strong>Queensl<strong>and</strong></strong><br />

Sapphire Producer’s Association (QSPA) <strong>and</strong><br />

the <strong>Queensl<strong>and</strong></strong> Small Miners’ Council<br />

(QSMC) all made submissions to the industry<br />

review, they did not have the <strong>resource</strong>s to<br />

participate as members of the industry working<br />

group. All three submissions raised similar<br />

concerns about the applicability <strong>and</strong><br />

associated compliance costs of an approvals<br />

system which was developed for major mines<br />

being applied to these smaller operations.<br />

While it is likely that many of the<br />

recommendations in this review will resonate<br />

with the small mining <strong>sector</strong>, as neither QRC’s<br />

membership, nor the membership of the<br />

industry working group was sufficiently<br />

representative of these smaller mining<br />

operations, it is appropriate that these groups<br />

be consulted separately as to how their <strong>sector</strong><br />

should be best regulated.<br />

Industry Working Group recommendation<br />

j. Engage with the prospecting <strong>and</strong> small<br />

mining <strong>sector</strong>s in the development of a<br />

regulatory framework which is<br />

appropriate to the scale of that<br />

industry’s operation rather than treating<br />

them to the same degree of scrutiny as<br />

large-scale mines.<br />

CERTAINTY OF SCOPE<br />

Certainty of scope – a review of relevant<br />

criteria rather accumulate an exhaustive set of<br />

all encompassing criteria<br />

A number of industry submissions have<br />

highlighted concerns with changing<br />

departmental policies <strong>and</strong> rules without<br />

<strong>supporting</strong> information. Even worse, these<br />

new rules are being applied in the middle of an<br />

approval process for projects.<br />

Cases have been raised where the proponent<br />

was working on the basis of advice provided<br />

by the department only to later discover that<br />

such advice no longer applied or was<br />

changed. As a result, many companies find<br />

out that their painstakingly prepared<br />

application is dismissed out of h<strong>and</strong> because it<br />

refers to yesterday’s template. A good<br />

approval process should be characterised by a<br />

clear communication of expectations from<br />

regulatory authorities.<br />

A lack of industry-wide st<strong>and</strong>ards <strong>and</strong>/or<br />

guidelines for the provision of information adds<br />

to the ever-changing scope for providing<br />

information. This can be onerous on<br />

departmental staff when determining if an<br />

application is compliant (thus delaying<br />

acceptance). The development of<br />

departmental templates would help address<br />

this issue.<br />

Industry has expressed its appetite for clarity<br />

on departmental information requirements so<br />

that it is aware of exactly what information the<br />

department needs in order to assess an<br />

application. This will minimise the ‘to-ing <strong>and</strong><br />

fro-ing’ between the applicant <strong>and</strong> the<br />

department for either further or additional<br />

information. Greater use of transitional<br />

provisions ensuring companies already<br />

committed to a course of action are not<br />

affected by changed procedures, <strong>and</strong>/or a<br />

process where companies could seek<br />

authoritative decisions on interpretations could<br />

assist in mitigating this issue.<br />

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INDUSTRY WORKING GROUP REVIEW<br />

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One company provided an example where it<br />

sought an amendment to an EA to allow the<br />

discharge of permeate from a reverse osmosis<br />

plant into a river. The amendment application<br />

was submitted in August 2009 on which the<br />

public review period closed in October 2009<br />

<strong>and</strong> no comments were received. DERM<br />

requested the company to address a draft<br />

hierarchy of assessment of discharge in<br />

January 2010, which was submitted in March<br />

2010. The company later learnt that the<br />

hierarchy was developed after the public<br />

review period was closed. To this date, DERM<br />

is still considering the application. Clearly, the<br />

assessment is delayed because the rules<br />

changed while the application progressed.<br />

Lack of coherent <strong>and</strong> sustainable guidelines<br />

for rehabilitation of exploration sites <strong>and</strong> other<br />

low-impact ground disturbances has been<br />

cited in submissions as a significant<br />

impediment for companies to ascertain what is<br />

required. One company recently experienced<br />

difficulty in dealing with DERM over<br />

rehabilitation of low impact disturbances in dry<br />

climates. According to the company’s<br />

submission, department-m<strong>and</strong>ated criteria are<br />

suited to cooler, wetter climates <strong>and</strong> are not<br />

best practice or appropriate for all climates.<br />

The conditions imposed should reflect climatic<br />

suitability, resulting in better environmental<br />

outcomes.<br />

Examples were also cited of incidents where<br />

departmental guidelines became binding<br />

policies without prior knowledge of the project<br />

proponents. This practice erodes the inherent<br />

flexibility provided by guidelines to suit<br />

different projects based on their respective<br />

size, nature of operation, surrounding<br />

environment <strong>and</strong> other variability.<br />

‘Where <strong>Queensl<strong>and</strong></strong> guidelines for<br />

perceived issues are not available (for<br />

example ‘neutral mine drainage’ or<br />

‘radioactivity’) DERM appears to<br />

expect industry to develop the<br />

guidelines on a trial <strong>and</strong> error basis.<br />

This results in delays <strong>and</strong> significant<br />

costs to those companies that are at<br />

the forefront of those issues (or<br />

perceived issues). Should new<br />

st<strong>and</strong>ards/guidelines be required,<br />

DERM should commit <strong>resource</strong>s to<br />

their development prior to ‘enforcing’<br />

quantification <strong>and</strong> remediation of such<br />

issues on industry.’<br />

Industry submission<br />

Certainty of applicable regulation <strong>and</strong> policy is<br />

critical for making investment decisions. Any<br />

later addition of new scope has the risk of<br />

delay <strong>and</strong> confusion, adding expense <strong>and</strong><br />

uncertainty to the process.<br />

‘DERM should not be able to change<br />

processes without some negotiation or<br />

at the very least notification to relevant<br />

operators. It is extremely embarrassing<br />

<strong>and</strong> potentially damaging from a<br />

business perspective, to advise a client<br />

a certain process will be accepted<br />

(based on what has been accepted in<br />

previous projects) then to have that<br />

client’s project delayed due to DERM<br />

changing that process without any<br />

notification.’<br />

Industry submission<br />

Industry Working Group recommendation<br />

k. Publish guidelines <strong>and</strong> templates to<br />

clarify departmental intent – further,<br />

industry recommends the development<br />

of a clear notification process to avoid<br />

confusion when these documents are<br />

being developed or updated.<br />

Reviewing <strong>and</strong> awarding tenure<br />

During the then Department of Mines <strong>and</strong><br />

Energy proposed technical amendments to<br />

MRA in early 2009, a number of issues were<br />

raised by the industry through the <strong>Queensl<strong>and</strong></strong><br />

Resources Council to address inconsistencies<br />

in the legislation <strong>and</strong> allow for more certainty<br />

for both the industry <strong>and</strong> relevant<br />

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stakeholders. Some of those issues are still<br />

unresolved <strong>and</strong> were raised again during this<br />

review, including:<br />

1. S 237 Drilling <strong>and</strong> other activities on<br />

l<strong>and</strong> not included in surface area:<br />

a. M<strong>and</strong>atory l<strong>and</strong>owner consent for<br />

‘drilling <strong>and</strong> other activities’ on<br />

l<strong>and</strong> not included in surface area<br />

Currently any ‘drilling <strong>and</strong> other<br />

activities’ undertaken on a mining<br />

lease (ML), but outside of surface<br />

area, are required to have prior<br />

written consent of l<strong>and</strong>owners.<br />

Given that the MRA does not<br />

provide a framework to address any<br />

rejection from a l<strong>and</strong>owner, this<br />

provides an effective right of veto to<br />

what are exploration related<br />

activities on a higher form of tenure.<br />

The current framework is<br />

inconsistent with exploration tenure<br />

rights. Regrettably this creates an<br />

adversarial approach to commercial<br />

discussions on access to l<strong>and</strong><br />

already covered by a ML. In effect, a<br />

ML holder has fewer rights to<br />

conduct such activities in those parts<br />

of a ML than if they held a lesser<br />

exploration tenure.<br />

It is recommended that rights to<br />

conduct exploration type activities,<br />

commensurate with the perquisite<br />

tenure, over l<strong>and</strong> covered by a ML<br />

be enabled. This could be achieved<br />

through a transparent process to<br />

ensure that S 237 cannot be used<br />

as a right of veto over exploration<br />

activities undertaken on an ML.<br />

b. Greater flexibility for transfer of<br />

tenure<br />

Industry seeks a statutory process to<br />

enable the subdivision of exploration<br />

permits for coal. While currently<br />

there is a convoluted process to<br />

achieve this outcome through the<br />

use of conditional surrender<br />

processes, a transparent statutory<br />

process would be more practical <strong>and</strong><br />

would use less administrative<br />

<strong>resource</strong>s.<br />

c. Assignment of applications<br />

When applications for EPs are<br />

approaching grant there are<br />

circumstances that give rise to the<br />

ability to assign applications. For<br />

example, in certain situations where<br />

the progress of an application<br />

towards grant has taken a<br />

considerable period of time, there<br />

may be practical issues where the<br />

original parties no longer exist.<br />

Industry is willing to initiate further<br />

discussions with DEEDI to resolve<br />

this matter either through a set of<br />

policy guidelines or legislative<br />

amendments, if required.<br />

2. S 279 Clarification of renewals of MLs<br />

<strong>and</strong> Compensation Agreements<br />

Industry supports greater clarification<br />

surrounding the circumstances where the<br />

l<strong>and</strong>owners may have changed <strong>and</strong>/or the<br />

process by which l<strong>and</strong>owners are made fully<br />

aware of tenure processes. Industry could<br />

benefit from:<br />

a greater clarity on the effect of<br />

compensation (eg the extent to which<br />

the agreement is binding on<br />

subsequent parties)<br />

b Appropriate notification process - for<br />

example, Notation on L<strong>and</strong> Title - to<br />

inform new or potential l<strong>and</strong>owners of<br />

the circumstances surrounding<br />

previous agreements.<br />

3. S 318CN Incidental coal-seam gasroyalty<br />

obligations<br />

Amendments contained in the Mines <strong>and</strong><br />

Energy Legislation Amendment Bill 2008,<br />

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provided for the holder of a mining lease to<br />

provide incidental coal-seam gas to a<br />

petroleum lease holder. This has created the<br />

need for clarification regarding royalty<br />

obligations on MRA tenure holder for<br />

incidental coal-seam gas. While the policy<br />

intention of the amendment was to encourage<br />

the MRA tenure holder to avoid flaring or<br />

venting <strong>and</strong> maximise the <strong>resource</strong>s benefit of<br />

the state, it is now unclear if the MRA tenure<br />

holder is responsible for the royalty payment<br />

on incidental coal-seam gas.<br />

Industry seeks further discussion regarding<br />

the point of royalty collection <strong>and</strong> the ability to<br />

release, or assign or transfer the obligation.<br />

4. S 129, S 181 <strong>and</strong> S 238 - Restricted l<strong>and</strong><br />

<strong>and</strong> tenure<br />

The current restricted l<strong>and</strong> provisions which<br />

impact on production tenure are inconsistent<br />

with the overall policy framework provided by<br />

the MRA. There are already a range of<br />

protections within the policy framework to<br />

address issues relating to specific tenure for<br />

example, the ability of a minister to impose<br />

conditions at grant. Rather than providing<br />

certainty to industry <strong>and</strong> l<strong>and</strong>owners, restricted<br />

l<strong>and</strong> provision currently operate a strict veto<br />

power <strong>and</strong> also acts as a constraint for the<br />

minister.<br />

Industry working group recommendation<br />

l. Progress technical amendments to the<br />

outst<strong>and</strong>ing issues under Mineral<br />

Resources Act (MRA) including<br />

provisions under sections 239, 279,<br />

318CN, 129, 181 <strong>and</strong> 238.<br />

Native Title <strong>and</strong> Cultural Heritage issues<br />

The introduction of the Aboriginal Cultural<br />

Heritage Act 2003 <strong>and</strong> the Torres Strait<br />

Isl<strong>and</strong>er Cultural Heritage Act 2003 in 2004 is<br />

considered by industry to be a significant<br />

improvement on the previous Cultural Records<br />

(L<strong>and</strong>scapes <strong>Queensl<strong>and</strong></strong> <strong>and</strong> <strong>Queensl<strong>and</strong></strong><br />

Estate) Act 1987. At the time, the new<br />

legislation was promoted on the basis that the<br />

assessment <strong>and</strong> management of Aboriginal<br />

<strong>and</strong> Torres Strait Isl<strong>and</strong>er cultural heritage<br />

would be able to be addressed ‘with certainty<br />

in a timely <strong>and</strong> cost effective manner’ <strong>and</strong><br />

most critically directly negotiated between the<br />

proponent <strong>and</strong> the Aboriginal party owning the<br />

cultural heritage.<br />

Industry supported the legislation on this basis<br />

as well as on the basis that the legislation<br />

would be reviewed after five years with a view<br />

to improving on, or adjusting, mechanisms<br />

within the legislation that aimed to achieve<br />

these outcomes. The current review of the Act<br />

by DERM is therefore acknowledged <strong>and</strong><br />

supported by the industry.<br />

Various submissions urged the need for the<br />

review to be finalised as a matter of urgency<br />

<strong>and</strong> through a genuine <strong>and</strong> timely consultation<br />

with the industry <strong>and</strong> all relevant stakeholders.<br />

One company suggested that provisions be<br />

made to empower the Cultural Heritage<br />

Coordination Unit (CHCU) with compulsory<br />

mediation meeting power when negotiations<br />

are not progressing. Currently the only avenue<br />

for resolution is the L<strong>and</strong> Court, which should<br />

be the avenue for last resort <strong>and</strong> not the only<br />

option.<br />

The same company also noted that, recently,<br />

an amendment to the Cultural Heritage Act<br />

was introduced <strong>and</strong> passed by the parliament<br />

without Industry consultation. This created<br />

issues for the company in finalising a Cultural<br />

Heritage Management Plan for two significant<br />

projects because the amendment directly<br />

contradicted advice received from the<br />

minister’s office the week before the<br />

introduction of these amendments.<br />

This is not the only example of government<br />

making changes of significance to legislation<br />

without consultation with industry. This leads<br />

to significant issues where companies are<br />

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‘mid-race’ <strong>and</strong> the rules are changed without<br />

warning.<br />

Case study ~ uncertainty due to conflicting<br />

advice<br />

Two distinctive Aboriginal groups had ‘Aboriginal<br />

party’ status under the cultural heritage legislation.<br />

In seeking to meet the duty of care, the l<strong>and</strong> user<br />

sought the agreement of both Aboriginal party<br />

groups. One Aboriginal party group was happy to<br />

engage with the l<strong>and</strong> user at reasonable cost. The<br />

other Aboriginal party group sought excessively<br />

costly mitigation measures. The l<strong>and</strong> user was<br />

unable to negotiate a reduction in these costs to a<br />

more reasonable level.<br />

On advice from CHCU the l<strong>and</strong> user proceeded<br />

with the agreement of one of the Aboriginal party<br />

groups as is apparently allowed under section 23 of<br />

the cultural heritage legislation.<br />

The other Aboriginal party group sought an<br />

injunction in the L<strong>and</strong> Court. Although not granting<br />

an injunction, the L<strong>and</strong> Court member indicated<br />

that in order to meet the duty of care under Section<br />

23 of the cultural heritage legislation a l<strong>and</strong> user<br />

required the agreement of all Aboriginal parties for<br />

the area. On this basis the L<strong>and</strong> Court advised that<br />

mediation was the right way forward.<br />

Mediation resulted in the l<strong>and</strong> user being required<br />

to involve the other Aboriginal party in excessive<br />

<strong>and</strong> costly cultural heritage management<br />

arrangements for the project.<br />

Every l<strong>and</strong> user in <strong>Queensl<strong>and</strong></strong> has proceeded to<br />

meet the duty of care on the underst<strong>and</strong>ing that the<br />

agreement of an Aboriginal party was sufficient for<br />

this purpose. Advice from CHCU indicates that this<br />

is no longer clear.<br />

The implications of this flawed interpretation, <strong>and</strong><br />

the uncertainty surrounding it, are serious not only<br />

for future attempts to meet the duty of care but also<br />

in relation to previous duty of care agreements.<br />

Industry Working Group recommendation<br />

m. Finalise the review of Aboriginal Cultural<br />

Heritage Act 2003 <strong>and</strong> the Torres Strait<br />

Isl<strong>and</strong>er Cultural Heritage Act 2004 with<br />

timely <strong>and</strong> appropriate consultation with<br />

industry <strong>and</strong> all relevant stakeholders.<br />

Industry submissions highlighted the issues<br />

arising due to the current arrangement where<br />

only the state can issue notices under Section<br />

29 of NTA, effectively giving control over the<br />

starting point of a projects’ timeframe to the<br />

state.<br />

The NTA also requires the state to be party to<br />

the negotiation even though the state could<br />

not provide any material contribution to the<br />

process. The state’s participation in the right to<br />

negotiate process is costly <strong>and</strong> utilises<br />

valuable <strong>resource</strong>s that could be used<br />

elsewhere particularly in case managing<br />

mining tenement applications.<br />

In much the same way as a proponent can<br />

commence ILUA negotiations or initiate a<br />

cultural heritage management plan<br />

negotiation, there seems little reason why a<br />

proponent cannot issue a notice under section<br />

29 of the NTA themselves. The state should<br />

not be required to be party to a right to<br />

negotiate matter in much the same way as the<br />

state is not required to be party to an<br />

Indigenous L<strong>and</strong> Use Agreement or a cultural<br />

heritage management plan). There should be<br />

provision for the state to have the option of<br />

opting in or opting out of the right to negotiate<br />

process.<br />

Industry working group recommendation<br />

n. Investigate the process to enable a<br />

project proponent to issue a notice<br />

under section 29 of the native title Act<br />

similar to their right to commence ILUA<br />

negotiations.<br />

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The Native Title Protection Conditions (NTPC)<br />

were put in place as the tool for government to<br />

utilise the NTA’s Expedited Procedure<br />

process.<br />

In 2006, the industry contributed to the review<br />

of the NTPCs <strong>and</strong> various consistencies <strong>and</strong><br />

other relevant improvements were suggested<br />

in several QRC submissions. One of the<br />

review issues was aligning the NTPCs with the<br />

Aboriginal Cultural Heritage Duty of Care<br />

Guidelines to provide better cultural heritage<br />

protection <strong>and</strong> more consistent guidelines<br />

across different tenures. QRC supported the<br />

measure provided it does not introduce any<br />

more onerous <strong>and</strong>/or unnecessary conditions<br />

than the current requirements.<br />

A number of other improvements were<br />

proposed <strong>and</strong> industry provided relevant<br />

feedback for their implementation during the<br />

review. However, it is disappointing to note<br />

that the review has not made any further<br />

progress <strong>and</strong> it is relevant <strong>and</strong> timely for the<br />

process to be revisited <strong>and</strong> improvement<br />

measures implemented as appropriate.<br />

Industry working group recommendation<br />

o. Revisit the preliminary findings from the<br />

native title Protection Conditions Review<br />

<strong>and</strong> implement relevant improvement<br />

measures suggested by the industry.<br />

Environment <strong>and</strong> related approval issues<br />

Presently, in <strong>Queensl<strong>and</strong></strong> there is no<br />

legislation that provides for ‘whole of project’<br />

approvals. Rather, a new mining project will<br />

require a range of approvals issued under<br />

various pieces of legislation, administered by<br />

different government departments.<br />

Whilst the MRA does provide exemptions from<br />

the requirement to obtain some approvals<br />

(such as most development approvals<br />

otherwise required under the Integrated<br />

Planning Act), no such relief is provided in<br />

respect of activities which occur outside the<br />

mining lease boundaries.<br />

A number of submissions point out that the<br />

current approvals process only provides an<br />

approval for ‘on-lease’ infrastructure <strong>and</strong><br />

activities. In most cases, the development of a<br />

large <strong>resource</strong> project will also require<br />

approval for the construction of ‘off-lease’<br />

infrastructure such as roads, power lines,<br />

fences <strong>and</strong> pipelines.<br />

Under the current system, ‘off-lease’<br />

infrastructure must be approved under the<br />

Sustainable Planning Act (SPA). Having to<br />

separately seek approvals for ‘off-lease’<br />

infrastructure under separate legislation can<br />

significantly delay major developments in<br />

<strong>Queensl<strong>and</strong></strong>. A ‘whole of project’ approval<br />

should also assess the subordinate approval<br />

requirements, such that they are not an<br />

impediment to the project proceeding.<br />

Industry working group recommendation<br />

p. Establish a government-industry<br />

taskforce to investigate feasibility of new<br />

purpose-built legislation for assessment<br />

<strong>and</strong> approval processes, incorporating<br />

all current processes, ensuring no<br />

duplication of assessment, public<br />

notification or approval – including on-<br />

<strong>and</strong> off-lease approvals <strong>and</strong> provision<br />

for declaration of ‘significant projects’.<br />

Some companies have had recent<br />

disappointing experiences where the terms of<br />

reference for the <strong>Queensl<strong>and</strong></strong> approval have<br />

not been aligned with the Commonwealth<br />

approvals under the Commonwealth<br />

Environment Protection <strong>and</strong> Biodiversity<br />

Conservation Act (EPBC).<br />

Proponents could previously proceed under<br />

both state <strong>and</strong> federal regulations at the same<br />

time, thereby reducing the approval timeframe.<br />

Projects now have to undergo sequential<br />

approval requirements. For example,<br />

submission of draft Terms of Reference (TOR)<br />

under the <strong>Queensl<strong>and</strong></strong> Environmental<br />

Protection Act <strong>and</strong> EPBC Act were done<br />

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concurrently but companies have been<br />

advised by DERM that it could no longer do<br />

so.<br />

Industry working group recommendation<br />

q. Ensure that assessment processes<br />

under state <strong>and</strong> Commonwealth<br />

environmental legislation can again<br />

occur concurrently.<br />

Submissions have also reported that DERM<br />

has started requiring proponents to make<br />

technical changes to the draft TOR prior to<br />

their release, which previously was not the<br />

case. DERM has effectively now given<br />

themselves three opportunities to change the<br />

TOR, as opposed to their previous two. This<br />

change of scope does not seem to achieve<br />

any benefit for either party but can result in a<br />

delay of several weeks/months to a project.<br />

A number of consistent concerns have been<br />

raised about the power of interpretation that is<br />

vested in individuals within the granting of<br />

environmental approvals. Examples were cited<br />

whereby a change in the case officer, or a key<br />

decision maker within the regulatory authority,<br />

lead to a very different interpretation of the<br />

legislation. In some areas, there are only one<br />

or two officials in the whole state who have the<br />

experience to make technical decisions.<br />

Leave, illness or a surge in workload for these<br />

officials all translate into unforeseen delays.<br />

Whilst the need for detailed assessments is<br />

recognised, the TOR should focus on<br />

environmental risk. For example, where a site<br />

has experienced extensive clearing <strong>and</strong><br />

grazing <strong>and</strong> has limited remaining vegetation<br />

of ecological significance, it should not be<br />

necessary to undertake extensive<br />

seasonal/temporal flora investigations but<br />

rather the investigations should be more<br />

limited in their nature.<br />

Further, if noise/vibration presents a low<br />

environmental risk due to the absence of<br />

nearby sensitive receptors then modelling of<br />

the potential impacts should be of a lower<br />

level compared to projects with numerous<br />

nearby sensitive receptors. More often,<br />

despite preliminary assessments confirming<br />

that the environmental risk may be low,<br />

departmental staff insists on detailed<br />

assessments being completed to prove the<br />

same. This exhaustive coverage of all issues<br />

frustrates the intent of the EIS process, by<br />

making the report too long <strong>and</strong> complex for<br />

many stakeholders to digest. When EIS<br />

reports are running to tens of thous<strong>and</strong>s of<br />

pages <strong>and</strong> take upwards of three days to print,<br />

the relevant information is difficult to access.<br />

‘We strongly advocate that additional<br />

time should be spent in making the TOR<br />

more specific <strong>and</strong> relevant for the<br />

projects they are covering.<br />

Inconceivable amounts of time <strong>and</strong><br />

money are wasted covering topics that<br />

have very little relevance to the project<br />

that could much better be spent on the<br />

issues that have most potential to<br />

impact on the environment, thereby<br />

making the EIS documents smaller in<br />

size, but more relevant <strong>and</strong> focused on<br />

significant impacts – rather than having<br />

to include details of every issue that has<br />

ever been required for some project<br />

somewhere in the country.<br />

‘This could also help prevent the<br />

situation whereby DERM indicate an<br />

EIS is too large to assess in their<br />

legislated timeframes - based on the<br />

TOR they have enforced as being<br />

necessary.<br />

‘We strongly support the EIS process<br />

<strong>and</strong> the underlying aims of the state <strong>and</strong><br />

federal governments to minimise<br />

environmental impacts from proposed<br />

developments, however some logic <strong>and</strong><br />

relevance criteria should be applied to<br />

the project’s TOR <strong>and</strong> the approval<br />

process.’<br />

Industry submission<br />

page 21


Case Study ~ unforeseen change in scope<br />

In July 2008, the (then) Environmental Protection Agency conducted a st<strong>and</strong>ard inspection of a mine <strong>and</strong> recommended<br />

three ‘small <strong>and</strong> straightforward’ changes to the EA. In February 2009, DERM’s regional office provided a redrafted EA. The<br />

draft contained significant variations to the original EA. These included changes through every schedule including the<br />

insertion of whole new schedules. This appeared to be an attempt to implement new ‘st<strong>and</strong>ard’ EA conditions for a mining<br />

operation.<br />

These unforeseen amendments created a period of uncertainty for the project while conditions were negotiated (another<br />

three drafts were provided by DERM for review before finalising the amendment in November 2009). The draft conditions<br />

contained significant implications for capital investment <strong>and</strong> mine <strong>resource</strong>s that would be needed to meet the additional<br />

reporting <strong>and</strong> compliance requirements. It also affected the mine’s ability to implement existing conditions that were due to<br />

be superseded or removed by the draft conditions.<br />

Industry is concerned that any amendment,<br />

however minor, to an EA is used as an<br />

opportunity to refresh <strong>and</strong> update the entire<br />

document. Some of these changes involve<br />

dramatic new compliance <strong>and</strong> reporting<br />

responsibilities. Industry’s suggestion is that<br />

EAs should be left to st<strong>and</strong>, with operational<br />

amendments given effect (if necessary)<br />

through the environmental management plans<br />

(EMP).<br />

A more structured risk-focused approach<br />

would help to shift assessment effort into key<br />

areas of concern, <strong>and</strong> provide a formal <strong>and</strong><br />

transparent mechanism for matching the<br />

assessment investment against areas of need.<br />

Industry Working Group recommendation<br />

r. Develop a risk-based assessment process,<br />

particularly in establishing the terms of<br />

reference for an Environmental Impact<br />

Statement <strong>and</strong> the conditions of an<br />

Environmental Authority, so both reflect the<br />

likelihood of significant impacts.<br />

REGULATORY CONTINUITY<br />

Regulatory continuity – authorities <strong>and</strong> other<br />

negotiated regulatory instruments are only<br />

reopened under extreme (<strong>and</strong> well defined)<br />

circumstances.<br />

A recent DEEDI workshop on legislative<br />

reforms for the coal-seam gas industry<br />

identified a set of 53 reforms (appendix 3). A<br />

number of submissions from CSG companies<br />

expressed some concern with the progress of<br />

these reforms <strong>and</strong> suggested that these<br />

issues should be reinforced in this report.<br />

Given the commodity specific nature of these<br />

reforms, it would seem appropriate that the<br />

peak coal-seam gas industry group –<br />

Australian Petroleum Production <strong>and</strong><br />

Exploration Association (APPEA) - be<br />

responsible for reviewing these reforms <strong>and</strong><br />

developing an agreed industry approach.<br />

However, as there are a number of other<br />

<strong>sector</strong>s who will be impacted by these reforms<br />

– including oil shale <strong>and</strong> underground coal<br />

gasification – this initial set of industryproposed<br />

reforms should then form the basis<br />

of a formal government consultation process.<br />

Following issues under Petroleum <strong>and</strong> Gas<br />

(Production <strong>and</strong> <strong>Safety</strong>) Act 2004 (PGA) were<br />

identified by submissions from CSG industry<br />

members. APPEA may initially wish to<br />

consider those issues including:<br />

Petroleum Facilities Licence (PFL)<br />

There is a proposal to remove the<br />

requirement to have a Petroleum<br />

Facilities Licence (PFL) under the PGA<br />

in order to construct a Liquid Natural<br />

Gas (LNG) facility. A couple of<br />

companies have proceeded to invest in<br />

the development of the LNG projects in<br />

<strong>Queensl<strong>and</strong></strong> on the basis of regulatory<br />

certainty, including the requirement to<br />

hold a PFL. Unless a transition can be<br />

mapped out, industry will continue to be<br />

wary of the risks that such an<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

amendment would have for some LNG<br />

projects.<br />

Lack of retention tenure<br />

Ministerial discretion is currently<br />

provided under the PGA to declare<br />

Potential Commercial Areas. However,<br />

implementation of formal retention<br />

tenure, equivalent to a mineral<br />

development lease (MDL) issued under<br />

MRA, would acknowledge the need to<br />

retain areas as a matter of routine rather<br />

than as a special case requiring<br />

intervention by the minister. Further,<br />

tenures administered under the<br />

Petroleum Act 1923 have no such<br />

provision, which is inequitable in<br />

comparison to both the PGA <strong>and</strong> MRA<br />

Relinquishment regime<br />

There is a requirement in the PGA for a<br />

rapid relinquishment timeframe, with<br />

33.3 percent reduction in area required<br />

each four years. It is clear that this<br />

approach is designed to ensure that<br />

ground is turned over quickly <strong>and</strong><br />

thereby promote rapid exploration <strong>and</strong><br />

development. This regulation has<br />

proven well suited to conventional<br />

petroleum exploration, where a<br />

discovery is either made or not made.<br />

However, the concept of discovery does<br />

not readily translate to CSG, since the<br />

delineation of production fairways,<br />

trialling of appropriate techniques <strong>and</strong><br />

pilot production testing is the focus of<br />

exploration works. These activities<br />

require significant time.<br />

Statutory period for commencement<br />

of production<br />

Production leases are granted on<br />

condition that production commences<br />

within two years. The requirement to<br />

commence production is a short time<br />

period which does not recognise the<br />

industry’s needs to aggregate reserves<br />

to underpin supply arrangements that<br />

may cover a period of up to 25 years<br />

<strong>and</strong> the consequent need for staged<br />

production.<br />

Size of petroleum leases <strong>and</strong> inability<br />

to work as a project<br />

The petroleum legislation appears<br />

geared towards small scale <strong>and</strong><br />

separate development, with a relatively<br />

modest size limit applied to PL<br />

applications <strong>and</strong> an inability to apply a<br />

‘project’ consideration that may<br />

encompass multiple PL’s operating<br />

together or sharing infrastructure.<br />

Overlapping tenure issues<br />

The lack of clarity around overlapping<br />

tenure under the current petroleum<br />

legislation does not provide a high level<br />

of security of tenure, which adds<br />

significant difficulty in providing the<br />

necessary investment confidence<br />

required to underwrite large scale<br />

projects.<br />

The tender process for authorities to<br />

prospect (ATP)<br />

The ATP assessment <strong>and</strong> award<br />

process is geared towards the size <strong>and</strong><br />

value of proposed work <strong>and</strong> expenditure<br />

programs, with 85 percent weighting in<br />

determining the successful applicant.<br />

This has created a speculative<br />

environment, where winning bids can be<br />

ramped up to an unrealistic level simply<br />

to obtain tenure.<br />

CSG industry submissions also supported<br />

inclusion of water issues in this review. Water<br />

issues sit across different departments <strong>and</strong><br />

pieces of legislation (PGA, Water Act <strong>and</strong> EP<br />

Act). This requires departments to work<br />

together but there seems to be a mismatch<br />

between the custody of the legislation <strong>and</strong><br />

availability of expertise on this issue.<br />

One of the key issues around water remains<br />

the restrictions on transporting CSG water<br />

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REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

between PLs that have different ownerships.<br />

The water rules don’t mirror the gas pipeline<br />

rules. The current drafting of the PGA imposes<br />

different requirements upon petroleum lease<br />

holders when transporting gas <strong>and</strong> water<br />

across neighbouring tenures. This issue arises<br />

where ownership of neighbouring tenures is<br />

not identical - a common occurrence in an<br />

industry with numerous different joint venture<br />

arrangements <strong>and</strong> in a commercial<br />

environment of acquisitions causing<br />

companies to hold tenures in different<br />

company names.<br />

The asymmetry allows for transportation of<br />

gas across tenure boundaries without undue<br />

regulatory hurdles, whilst the transportation of<br />

associated water is heavily regulated,<br />

cumbersome <strong>and</strong> creates delays <strong>and</strong><br />

uncertainty for petroleum operators. The<br />

heavy regulatory burden on the transportation<br />

of water is contrary to the government’s policy<br />

intent to assist the aggregation <strong>and</strong> beneficial<br />

re-use of water.<br />

The process of aggregating associated water<br />

across a project is an integral part of the<br />

petroleum operation <strong>and</strong> should therefore be<br />

defined as a ‘petroleum activity’ under the<br />

PGA. This will ensure a streamlined approval<br />

process <strong>and</strong> single regulatory requirement <strong>and</strong><br />

l<strong>and</strong> easement for both industry <strong>and</strong><br />

l<strong>and</strong>owners. Like gas, this process should<br />

apply to the point of distribution regardless of<br />

whether it is in a treated or untreated form.<br />

Minor amendments to PGA to allow the water<br />

transportation regulatory regime to mirror that<br />

in place for gas transportation would remove<br />

the problem <strong>and</strong> facilitate more efficient<br />

development of associated water<br />

management facilities.<br />

The length of time which elapses between<br />

announcements of a new policy’s<br />

implementation can be problematic for<br />

industry. For example, a proposed CSG water<br />

policy was first announced in October 2008.<br />

However, it has taken more than 18 months<br />

for the detail to be worked through <strong>and</strong> for<br />

policy positions to be finalised on issues such<br />

as dam design <strong>and</strong> performance <strong>and</strong><br />

transitional arrangements for evaporation<br />

dams. Whilst the CSG industry has<br />

appreciated the opportunity to have input into<br />

the formulation of such policy, it is concerning<br />

that CSG to LNG proponents are attempting to<br />

finalise EIS <strong>and</strong> make Final Investment<br />

Decisions against such a backdrop of policy<br />

uncertainty.<br />

Industry Working Group recommendation<br />

s. Amend the current petroleum <strong>and</strong> gas<br />

legislation (which was designed for<br />

conventional petroleum operations) in a<br />

consultative <strong>and</strong> timely manner as a result of<br />

the significant <strong>growth</strong> of the coal-seam gas<br />

industry in <strong>Queensl<strong>and</strong></strong>.<br />

Reviewing <strong>and</strong> awarding tenure<br />

One of the cases highlighted in submissions<br />

was the duplication of the provision of<br />

information identifying the applicant <strong>and</strong><br />

detailing the applicant’s financial <strong>and</strong> technical<br />

<strong>resource</strong>s <strong>and</strong> abilities. This requirement<br />

becomes onerous when it has to be provided<br />

with each <strong>and</strong> every application <strong>and</strong> in most<br />

instances, to multiple agencies:<br />

‘It took DEEDI 17 months to determine<br />

they needed further information, which<br />

they already had - as it was previously<br />

supplied to government with multiple<br />

earlier applications. The renewal is still<br />

outst<strong>and</strong>ing.’<br />

Industry submission<br />

Under the petroleum legislation, with each<br />

application, the applicant must prove it<br />

complies with the ‘capability criteria’. The<br />

technical staff must assess this on each<br />

occasion <strong>and</strong> then the minister must consider<br />

the capability criteria <strong>and</strong> make a<br />

determination. This is not only onerous on<br />

industry, it is also onerous on departmental<br />

page 24


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

staff to have to assess this each <strong>and</strong> every<br />

time <strong>and</strong> then refer it to the minister.<br />

It seems the legislation allows an applicant to<br />

satisfy the capability criteria only once<br />

(determined by the minister) <strong>and</strong> have this<br />

recorded on the tenures database. However,<br />

this provision is not being used. Implementing<br />

this opportunity to recognise an applicant as<br />

Native title <strong>and</strong> cultural heritage issues<br />

‘capable’ would reduce the time to accept <strong>and</strong><br />

assess an application.<br />

Industry Working Group recommendation<br />

t. Develop a capability certification process for<br />

applying for exploration tenures so that a<br />

company is not required to justify their bona<br />

fides with each new application.<br />

Case study native title approvals ~ ability to apply the expedited procedures of the Native Title Act (NTA) to a<br />

specific ML activity<br />

A proponent sought to use the Expedited Procedure when making an application under s237 of MRA to conduct an<br />

exploration drilling program on a portion of a ML where surface rights had not been granted. Following legal advice <strong>and</strong><br />

initial consultation with the regional <strong>Mining</strong> Registrar <strong>and</strong> Native Title Services, it was confirmed that Expedited Procedure<br />

could also apply.<br />

Native title Services assessment of the s29 submission was delayed while advice was sought from Crown Law. Crown<br />

Law provided verbal advice that the NTA s237 <strong>and</strong> Expedited Procedure did not apply on a ML where surface rights had<br />

not been granted.<br />

The elapsed period of time from lodgement of the original s29 submission to grant of the MRA s237 application was about<br />

15 months. Had the original advice that the Expedited Procedure applied the lapsed period from lodgement to grant would<br />

have been in the order of four months.<br />

Approval <strong>and</strong> process delays prevented the proponent from assessing a potential mineral <strong>resource</strong> enabling it to be<br />

factored into investment decisions with commensurate lost value opportunities.<br />

contained within Appendix C of this document,<br />

which outlines the trigger criteria <strong>and</strong><br />

thresholds for requiring an EIS. At this time, a<br />

number of changes were proposed to the<br />

trigger criteria.<br />

Environment <strong>and</strong> related approval issues<br />

Currently a proponent of a mining project will<br />

be required to prepare an EIS under the<br />

Environmental Protection Act 1994 if advised<br />

by DERM, or the minister determines, based<br />

on criteria in ‘Guideline 4 - Deciding the level<br />

of impact assessment for the mining industry’.<br />

In addition, if a proponent feels an EIS may be<br />

required, they may apply to DERM to prepare<br />

a voluntary EIS. Finally, should no EIS be<br />

determined to be necessary, the proponent<br />

may proceed in seeking project approval<br />

through preparation <strong>and</strong> submission of an<br />

EMP.<br />

In April 2008 government began a review of<br />

Guideline 4, <strong>and</strong> specifically the criteria<br />

However the review process appears to have<br />

stalled, with little progress seen over the past<br />

18 months. As a result, none of the anticipated<br />

improvements in streamlining of the original<br />

Guideline 4 EIS trigger criteria have occurred.<br />

This has created confusion due to a process<br />

which has commenced, but been left<br />

unresolved. When assessing the potential<br />

need for an EIS, project proponents are now<br />

unclear as to the criteria that should be<br />

considered, <strong>and</strong> are therefore uncertain as to<br />

page 25


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

which avenue for project approvals may be<br />

most suitable.<br />

Industry supports finalising the review of<br />

Guideline 4 <strong>and</strong> streamlining of the EIS trigger<br />

criteria <strong>and</strong> seeks the urgent<br />

recommencement of a consultative process to<br />

complete this activity.<br />

Industry Working Group recommendation<br />

u. Undertake an urgent <strong>and</strong> consultative<br />

review of DERM’s Guideline 4 for deciding the<br />

level of impact assessment for the mining<br />

industry <strong>and</strong> options for streamlining the<br />

environmental impact statement (EIS) trigger<br />

criteria.<br />

DERM Guideline 8 provides direction to<br />

industry in preparing an EMP, <strong>and</strong> proposing<br />

conditions for an EA. A key component of this<br />

guideline are the EA model conditions<br />

(originally for mining), developed between<br />

industry <strong>and</strong> DERM as streamlined conditions<br />

to provide a set of st<strong>and</strong>ard conditions for an<br />

EA, which can then be used as a starting<br />

point, <strong>and</strong> applied <strong>and</strong> negotiated as<br />

appropriate for each site.<br />

In 2007 DERM commenced a review of these<br />

model conditions, to ensure they remain<br />

current <strong>and</strong> provide accurate guidance to<br />

industry as to the st<strong>and</strong>ard conditions desired<br />

by the regulator. Industry <strong>and</strong> DERM agreed<br />

to review the conditions through a consultative<br />

process, similar to that undertaken in the<br />

development of the original conditions.<br />

However due to a range of reasons, the<br />

review process has become protracted <strong>and</strong><br />

remains incomplete.<br />

In the interim, EA conditions being issued to<br />

companies are reflecting less <strong>and</strong> less the<br />

previous streamlined conditions, resulting in<br />

greater uncertainty for new <strong>and</strong> continuing<br />

operations.<br />

Industry seeks urgent recommencement of the<br />

model conditions review process as soon as<br />

possible, <strong>and</strong> encourages government to<br />

identify <strong>and</strong> commit to timeframes for the<br />

completion of this review in 2010.<br />

Industry Working Group recommendation<br />

v. Resumption of the review of model mining<br />

conditions for environmental authorities, with a<br />

deadline for the satisfactory completion of this<br />

review in 2010.<br />

Submissions noted that the petroleum <strong>and</strong> gas<br />

industries are regulated by two separate<br />

pieces of legislation <strong>and</strong> the approving officer<br />

for an approval under one Act may not be the<br />

same as for the other Act, ie Extended<br />

Production Testing under the 1923 Act is<br />

approved by the minister <strong>and</strong> under the 2004<br />

Act, the approval is delegated. This<br />

inconsistency should be resolved <strong>and</strong> industry<br />

suggests a delegation is the most appropriate<br />

approach.<br />

Further inconsistencies have been noted<br />

between the MRA <strong>and</strong> PGA. Applications for<br />

exploration permits lodged under the MRA are<br />

accepted <strong>and</strong> acknowledged, in most<br />

instances, on the date of lodgement (or soon<br />

thereafter). An application for a petroleum<br />

lease or pipeline licence or any other type of<br />

application under the petroleum legislation<br />

lodged with DEEDI can take weeks to be<br />

assessed, accepted, entered onto the register<br />

(for a tenure number to be generated) <strong>and</strong><br />

acknowledged by the department. This delays<br />

the ability to apply for the required EA<br />

because a tenure number is needed in order<br />

to complete the DERM paperwork.<br />

Industry Working Group recommendation<br />

w. Examine the feasibility of greater<br />

consistency between PGA <strong>and</strong> MRA for<br />

exploration tenements where applicable, while<br />

recognising the different nature of mineral <strong>and</strong><br />

petroleum exploration (especially coal-seam<br />

gas).<br />

page 26


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

Overlapping tenures across a number of<br />

different Acts continues to be an issue with<br />

which the industry grapples. The general<br />

principle has been that the industry supports<br />

overlapping tenures as the best means of<br />

ensuring that exploration proceeds in order<br />

that the Crown gains the best underst<strong>and</strong>ing<br />

of the <strong>resource</strong> endowment of the state.<br />

However, this general principle is tested in<br />

specific areas where there are operational<br />

concerns about the sequencing of activities or<br />

on the possible adverse impact (including<br />

sterilisation of <strong>resource</strong>s) of multiple or<br />

sequential <strong>resource</strong> activities. Industry’s<br />

preference in these matters has always been<br />

for commercial negotiations between parties to<br />

be the first recourse for mapping out a<br />

satisfactory solution.<br />

In order for these commercial negotiations to<br />

succeed, they need to occur in a clear<br />

framework of property rights (so that it is clear<br />

which tenures convey which property rights)<br />

<strong>and</strong> also a clear framework for resolution of<br />

negotiations. While a number of submissions<br />

called out concerns about areas where the<br />

allocation of property rights is still evolving<br />

(such as for underground coal gasification),<br />

most industry comment focussed on<br />

frustrations with the framework for negotiation.<br />

The issue identified in submissions was that<br />

there was no imperative to conclude<br />

negotiations, nor to conduct negotiations in<br />

good faith. Submissions from right across the<br />

spectrum of working group members called<br />

out frustrations at dealing with a party that had<br />

less imperative to resolve the negotiation. In a<br />

number of cases, submissions identified that<br />

this lack of a spur was being ‘gamed’ for<br />

commercial advantage whereby a lack of<br />

imperative was becoming a de-facto power of<br />

veto.<br />

The working group has suggested that the<br />

best mechanism would be to provide recourse<br />

for either party to a negotiation for a<br />

coordination agreement under Sections 318<br />

AT <strong>and</strong> 318 AX of MRA to be able to formally<br />

seek a preference decision from the minister.<br />

This recourse would only be available after<br />

negotiations had been under way for sufficient<br />

time to allow a commercial resolution, perhaps<br />

six months. Part of the application for a<br />

preference decision could be making a case<br />

that the other party was not negotiating in<br />

good faith.<br />

Industry working group recommendation<br />

x. Ensure that there is a genuine imperative<br />

for commercial negotiations to proceed in the<br />

development of coordination agreements<br />

when tenures overlap by developing a process<br />

for one party to instigate a formal request for a<br />

ministerial preference decision after a fixed<br />

period of perhaps six months.<br />

page 27


IMPLEMENTATION SCHEDULE: Phase 1 – Fast reforms<br />

PHASE 1: ‘Fast reforms’<br />

Recommendations<br />

Urgently <strong>resource</strong> <strong>and</strong> implement the recommendations of the state<br />

government’s internal review, Streamlining Approvals Project: <strong>Mining</strong><br />

<strong>and</strong> Petroleum Tenure Approval Process, November 2009, (the ‘Grundy<br />

Report’);<br />

Industry working group recommendation a<br />

Improve accountability for approval timeframes by providing for targets<br />

at each stage of the approvals process through some combination of:<br />

I. setting target times for approval – eg an environmental impact<br />

statement process (the components within the control of the<br />

government) should take 16 months;<br />

II. a clear process of agreeing a series of target project milestones<br />

(perhaps with the case manager) at the beginning of a project<br />

(having regard to departmental m<strong>and</strong>atory deadlines <strong>and</strong><br />

benchmarked timeframes for action);<br />

III. setting deadlines with a ‘deemed as approved’ clause (ie if the<br />

decision has not been made by the deadline, then the<br />

application’s licence/project is deemed approved)<br />

IV. the opportunity to have a process or outcome independently<br />

certified (for example having l<strong>and</strong> rehabilitation signed off by a<br />

properly accredited consultant).<br />

Industry working group recommendation c<br />

Lead: DEEDI<br />

Who When KPI<br />

Consult: DERM,<br />

QRC, APPEA<br />

Lead: DEEDI<br />

Consult: DERM,<br />

QRC, APPEA<br />

page 28<br />

Now ~ six months<br />

With funding package<br />

announced in the<br />

budget<br />

A progress report on implementing<br />

each of the recommendations back<br />

to industry.<br />

Now ~ six months A draft framework prepared for<br />

discussion.<br />

A final version agreed <strong>and</strong><br />

implemented.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

PHASE 1: ‘Fast reforms’<br />

Recommendations<br />

To improve the transparency of <strong>Queensl<strong>and</strong></strong>’s approval processes,<br />

publish a scorecard which tracks average time to make a decision for<br />

each category of application as well as the number of applications<br />

received <strong>and</strong> processed each quarter.<br />

Industry working group recommendation d<br />

Move to a virtual model of a one-stop shop, through the confirmation of<br />

DEEDI as the lead agency that is responsible for managing the overall<br />

project approval process from end to end. To realise the benefits of this<br />

lead agency model also requires:<br />

• the appointment of a dedicated case manager for each project to<br />

act as an important coordination point within government, as a<br />

contact point for proponents <strong>and</strong> to be responsible for stewarding<br />

the project through the application processes<br />

• the implementation of a modern work-management system to<br />

provide seamless management of all aspects of the assessment<br />

<strong>and</strong> granting of tenure, including environmental <strong>and</strong> native title<br />

processes<br />

• appropriate <strong>resource</strong>s <strong>and</strong> delegations are available within key<br />

concurrence agencies including <strong>resource</strong>s for native title <strong>and</strong> the<br />

appointment of specialist officers within DERM to focus on mining<br />

projects.<br />

Industry working group recommendation h<br />

Lead: DEEDI<br />

Who When KPI<br />

Consult: DERM<br />

Lead: DEEDI<br />

Consult: QRC,<br />

DERM<br />

page 29<br />

Now-six months Publication of <strong>Queensl<strong>and</strong></strong><br />

scorecard of approvals.<br />

Now, with <strong>resource</strong>s<br />

announced in the<br />

budget<br />

Recruitment of a sufficient pool of<br />

experienced case managers.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

PHASE 1: ‘Fast reforms’<br />

Recommendations<br />

Eliminate the need for mining leases <strong>and</strong> renewals to be signed off by<br />

Governor in Council.<br />

Industry working group recommendation i<br />

Publish guidelines <strong>and</strong> templates to clarify departmental intent <strong>and</strong> a<br />

clear review <strong>and</strong> notification process when these documents are being<br />

developed.<br />

Industry working group recommendation k<br />

Develop a capability certification process so that a company is not<br />

required to justify their bona fides with each new application.<br />

Industry working group recommendation t<br />

Undertake an urgent <strong>and</strong> consultative review of DERM’s Guideline 4 for<br />

deciding the level of impact assessment for the mining industry <strong>and</strong><br />

options for streamlining the EIS trigger criteria.<br />

Industry working group recommendation u<br />

Recommencements of the model mining conditions for EAs review<br />

process, with a deadline for the satisfactory completion of this review in<br />

2010.<br />

Industry working group recommendation v<br />

Who When KPI<br />

Lead: DEEDI Now Next set of legislative amendments<br />

include this new provision.<br />

Lead: DERM,<br />

DEEDI<br />

Lead: DEEDI<br />

Consult: DERM<br />

Lead: DERM<br />

Consult: QRC,<br />

APPEA<br />

Lead: DERM<br />

Consult: QRC,<br />

APPEA<br />

page 30<br />

Ongoing All existing guidelines online with an<br />

ongoing six-monthly review to<br />

ensure that that set of published<br />

guidelines remains current.<br />

Now - three months Capability Certification process<br />

implemented<br />

Now Announcement of the review<br />

completion date <strong>and</strong> key milestones.<br />

Now ~end 2010 Announcement of the review<br />

completion date <strong>and</strong> key milestones.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

IMPLEMENTATION SCHEDULE: Phase 2 – Structural reforms<br />

PHASE 2: ‘Structural reforms’<br />

Recommendations<br />

A shift towards parallel rather than sequential approval processes –<br />

particularly in regards to public notification processes.<br />

Industry working group recommendation b<br />

Examine the feasibility of bringing ILUA negotiating cost with native title<br />

parties in line with compensation negotiations involving non-native title<br />

parties to ensure both indigenous <strong>and</strong> non-indigenous compensation<br />

issues are addressed in a consistent manner.<br />

Industry working group recommendation e<br />

Enable the project proponents to opt for either ILUA or the right to<br />

negotiate using the s29 process for all the elements of the right to mine<br />

<strong>and</strong> future acts associated with the right to mine, such as rail loops,<br />

pipelines <strong>and</strong> other directly associated infrastructure.<br />

Industry working group recommendation f<br />

Lead: DEEDI<br />

Who When KPI<br />

Consult: QME,<br />

DERM, APPEA,<br />

QRC<br />

Lead: DEEDI<br />

Consult: DERM,<br />

QRC<br />

Lead: DEEDI<br />

Consult: DERM,<br />

QRC<br />

page 31<br />

Three to six months DEEDI to consult with industry in<br />

mapping <strong>and</strong> identifying suitable<br />

processes.<br />

Amend regulatory framework to give<br />

effect to change.<br />

Three to 12 months ILUA negotiation costs as par with<br />

non-native title negotiations.<br />

Three to six months Proponents have the right to opt for<br />

either ILUA or the right to negotiate<br />

using the s29 process.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

PHASE 2: ‘Structural reforms’<br />

Recommendations<br />

Automatically increase department resourcing as industry activity grows,<br />

through a balanced system of fees <strong>and</strong> charges, with the right elements<br />

of user-pays <strong>and</strong> public benefit.<br />

Industry working group recommendation g<br />

Engage with the prospecting <strong>and</strong> small mining <strong>sector</strong>s in the<br />

development of a regulatory framework which is appropriate to the scale<br />

of that industry’s operation rather than treating them to the same degree<br />

of scrutiny as large-scale mines.<br />

Industry working group recommendation j<br />

Progress industry proposed technical amendments to the issues under<br />

MRA including provisions under sections 129, 181, 238, 239,279, <strong>and</strong><br />

318CN.<br />

Industry working group recommendation l<br />

Finalise the review of Aboriginal Cultural Heritage Act 2003 <strong>and</strong> the<br />

Torres Strait Isl<strong>and</strong>er Cultural Heritage Act 2004 with timely <strong>and</strong><br />

appropriate consultation with industry <strong>and</strong> all relevant stakeholders.<br />

Industry working group recommendation m<br />

Lead: DEEDI<br />

Who When KPI<br />

Consult: DERM,<br />

QRC, APPEA<br />

Lead: DEEDI<br />

Consult: QSMC,<br />

NQMA,QSPA<br />

Lead: DEEDI<br />

Consult: QRC,<br />

APPEA<br />

Lead: DERM<br />

Consult: DEEDI,<br />

QRC, APPEA<br />

page 32<br />

Three to18 months Department resourcing matches<br />

industry activity<br />

Three to12 months Develop in conjunction with general<br />

industry recommendations, working<br />

to the same deadlines.<br />

Three to18 months Amendments implemented.<br />

Three to12 months Implementation of the review<br />

findings.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

PHASE 2: ‘Structural reforms’<br />

Recommendations<br />

Investigate the process to enable a project proponent to issue a notice<br />

under s29 of Native Title Act similar to their right to commence<br />

Indigenous l<strong>and</strong> Use Agreement negotiations.<br />

Industry working group recommendation n<br />

Revisit the Native Title Protection Conditions review preliminary findings<br />

<strong>and</strong> implement relevant improvement measures suggested by the<br />

industry.<br />

Industry working group recommendation o<br />

Establish a government-industry taskforce to investigate feasibility of<br />

new purpose-built legislation for assessment <strong>and</strong> approval processes,<br />

incorporating all current processes, ensuring no duplication of<br />

assessment, public notification or approval – including on- <strong>and</strong> off-lease<br />

approvals <strong>and</strong> provision for declaration of ‘significant’ projects.<br />

Industry working group recommendation p<br />

Ensure that assessment processes under state <strong>and</strong> Commonwealth<br />

environmental legislation can again occur concurrently.<br />

Industry working group recommendation q<br />

Lead: DEEDI<br />

Who When KPI<br />

Consult: QRC<br />

Lead: DEEDI<br />

Consult: QRC<br />

Lead: DEEDI<br />

Consult: DERM,<br />

APPEA, QRC<br />

Lead: DERM<br />

Consult:<br />

DEEDI, DIP<br />

page 33<br />

Three to eight months Provision for project proponent to<br />

issue notice under section 29 of<br />

NTA introduced.<br />

Three to18 months Improvement measures<br />

implemented.<br />

Three to12 months Formation of an industrygovernment<br />

working group working<br />

to implement new approvals<br />

legislation.<br />

Three to12 months DERM to ensure that EP Act <strong>and</strong><br />

EPBC Act processes are once again<br />

aligned.<br />

DIP to consider the role of the<br />

SDPWOA Act.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

PHASE 2: ‘Structural reforms’<br />

Recommendations<br />

Develop a risk-based assessment process, particularly in establishing<br />

the terms of reference for an environmental impact statement <strong>and</strong> the<br />

conditions of an environmental authority, so both focus on the likelihood<br />

of significant impacts.<br />

Industry working group recommendation r<br />

Amend the current petroleum <strong>and</strong> gas legislation (which was designed<br />

for conventional petroleum operations) in a consultative <strong>and</strong> timely<br />

manner as a result of the significant <strong>growth</strong> of the CSG industry in<br />

<strong>Queensl<strong>and</strong></strong>.<br />

Industry working group recommendation s<br />

Examine the feasibility of greater consistency between PGA <strong>and</strong> MRA<br />

for exploration tenements where applicable, while recognising the<br />

different nature of mineral <strong>and</strong> petroleum exploration (especially coalseam<br />

gas).<br />

Industry working group recommendation w<br />

Ensure that there is a genuine imperative for commercial negotiations to<br />

proceed in the development of coordination agreements under Sections<br />

318 AT <strong>and</strong> 318 AX of MRA by developing a process for one party to<br />

instigate a formal request for a ministerial preference decision after a<br />

fixed period of perhaps six months.<br />

Industry working recommendation x<br />

Lead: DERM<br />

Who When KPI<br />

Consult:<br />

DEEDI, APPEA,<br />

QRC<br />

Lead: DEEDI<br />

Consult:<br />

QRC,APPEA<br />

Lead: DEEDI<br />

Consult:<br />

QRC,APPEA<br />

Lead: DEEDI<br />

Consult: QRC,<br />

APPEA<br />

page 34<br />

Three to 12 months DERM to lead a consultative<br />

exercise of developing a risk-based<br />

assessment tool for informing terms<br />

of reference.<br />

Three to24 months Initially an APPEA-lead process to<br />

bring forward an agreed set of<br />

proposals to government. A DEEDI<br />

led process of negotiating the<br />

changes <strong>and</strong> drafting the<br />

amendments.<br />

Three to 24 months Develop in parallel with<br />

recommendation m (above), working<br />

to the same deadlines.<br />

Three to12 months Implementation of a process for<br />

instigating a formal request for a<br />

ministerial preference.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

CONCLUSION<br />

During a five-month review of <strong>Queensl<strong>and</strong></strong>’s exploration <strong>and</strong> development approvals processes through<br />

various industry submissions, case studies <strong>and</strong> face-to-face interviews, industry has identified a range of<br />

opportunities for the state to deliver a world-class system of exploration <strong>and</strong> development approval<br />

processes.<br />

In this report, industry has proposed a more streamlined <strong>and</strong> seamless system that could result in the<br />

delivery of necessary approval decisions within reasonable timeframes, at reasonable cost <strong>and</strong> with<br />

reasonable certainty while ensuring the highest st<strong>and</strong>ards of environmental <strong>and</strong> social performance. This<br />

report provides recommendations that aim to achieve better integration of approvals processes between<br />

Commonwealth <strong>and</strong> <strong>Queensl<strong>and</strong></strong> agencies, amongst the different state agencies themselves, <strong>and</strong><br />

between the proponent, state agencies, <strong>and</strong> the community.<br />

The recommendations are categorised under either (a) fast or (b) structural reforms depending on the<br />

need for legislative amendments. Industry’s intent, reinforced in the implementation schedule, is to<br />

provide opportunities for some ‘quick wins’ for the government to streamline the existing system. The<br />

structural reforms also signal industry’s interest in a more fundamental overhaul of the relevant legislation.<br />

Industry is confident that the adoption of this report’s recommendations will set <strong>Queensl<strong>and</strong></strong> on the path to<br />

having a quality of approval process recognised as being of the same world-class calibre as befits our<br />

<strong>resource</strong> endowment.<br />

30 April 2010<br />

page 35


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

TERMS OF REFERENCE FOR THE REVIEW<br />

APPENDIX ONE:<br />

1. Timing<br />

Final Report – the working group will provide a final report to the minister by end April 2010.<br />

2. Scope<br />

The working group will consider all relevant government policies <strong>and</strong> administrative processes<br />

– this includes individual agencies actual <strong>and</strong> documented processes, the current level of<br />

agency co-ordination <strong>and</strong> communication <strong>and</strong> relevant key performance measures.<br />

The working group will consider the level of <strong>resource</strong>s <strong>and</strong> expertise appropriate to deliver a<br />

world-class approvals system in <strong>Queensl<strong>and</strong></strong> with an eye to how other leading jurisdictions<br />

fund <strong>and</strong> <strong>resource</strong> their equivalent systems.<br />

It is not proposed to review the fundamental legislative regimes, rather only make agreed<br />

changes to legislation or regulations that are minor <strong>and</strong>/or universally accepted by the Working<br />

Group as necessary.<br />

3. Key objectives <strong>and</strong> deliverables of the working group<br />

Underst<strong>and</strong>ing existing approvals processes (environmental, tenure, planning, native title <strong>and</strong><br />

Aboriginal heritage) necessary for mining <strong>and</strong> petroleum activity to occur in <strong>Queensl<strong>and</strong></strong>.<br />

Consider the state government’s internal review <strong>and</strong> provide industry’s views on the proposals<br />

identified.<br />

Identifying which impediments can be addressed through changes to government policies <strong>and</strong><br />

administrative processes.<br />

Developing a framework to ensure better co-ordination across agencies to achieve quicker<br />

approvals. Underst<strong>and</strong>ing the benefits of the declaration by the Coordinator-General of<br />

‘significant projects’ <strong>and</strong> application to other <strong>resource</strong> project approval processes will be<br />

examined.<br />

Delivering a schedule of implementation actions required to address identified inefficiencies<br />

<strong>and</strong> potential improvements.<br />

Identifying <strong>and</strong> analysing the key issues that stakeholders have with the approvals processes<br />

<strong>and</strong> developing policies to improve <strong>Queensl<strong>and</strong></strong>’s reputation as the preferred destination for<br />

mineral <strong>and</strong> petroleum industries.<br />

Assessing the level of resourcing for regulatory agencies to perform current obligations <strong>and</strong><br />

consider funding <strong>and</strong> service delivery options to improve operational processes <strong>and</strong> promote<br />

greater administrative efficiencies.<br />

4. Required activities of the working group<br />

Underst<strong>and</strong>ing existing approvals processes (environmental, tenure, planning, native title <strong>and</strong><br />

cultural heritage) necessary for mining <strong>and</strong> petroleum activity to occur in <strong>Queensl<strong>and</strong></strong>,<br />

including:<br />

indicative timelines associated with these processes<br />

impediments, overlap <strong>and</strong> duplication by state <strong>and</strong> Commonwealth agencies<br />

mechanisms for review of decisions<br />

page 36


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

benchmarks against selected jurisdictions in Australia <strong>and</strong> relevant comparators.<br />

Consider the state government’s internal review <strong>and</strong> provide industry’s views on the proposals<br />

identified, including:<br />

proposed system <strong>and</strong> administrative improvements<br />

roles <strong>and</strong> responsibilities of regulatory agencies<br />

legislative amendments to improve approval processes<br />

Resourcing constraints <strong>and</strong> funding options.<br />

Identifying which impediments can be addressed through changes to government policies <strong>and</strong><br />

administrative processes.<br />

It is not proposed to review the fundamental legislative regimes, rather only make<br />

agreed changes to legislation or regulations that are minor <strong>and</strong>/or universally accepted<br />

by the Working Group as necessary.<br />

Developing a framework to ensure better co-ordination across agencies to achieve quicker<br />

approvals.<br />

Consideration of the benefits associated with declaration as a ‘significant project’ <strong>and</strong><br />

similar application to mineral <strong>and</strong> petroleum projects which are not subject to these<br />

legislative provisions.<br />

Reviewing decision-making <strong>and</strong> co-ordination processes within government.<br />

Reviewing the linkages between government agencies in terms of communication with<br />

project proponents <strong>and</strong> the relationship with agencies reporting <strong>and</strong> key performance<br />

measures.<br />

Providing a schedule for implementation of:<br />

administrative changes – which could be implemented as soon as possible<br />

a mechanism for ongoing review of implementation, with direct input from industry<br />

agreed changes to legislation or regulations that are universally accepted by the<br />

Working Group as necessary to overcome project delays.<br />

Identifying <strong>and</strong> analysing the key issues that stakeholders have with the approvals processes<br />

<strong>and</strong> developing policies to improve <strong>Queensl<strong>and</strong></strong>’s reputation as the preferred destination of<br />

choice for mineral <strong>and</strong> petroleum industries.<br />

It is envisaged that the working group will provide recommendations to address<br />

immediate <strong>and</strong> longer-term issues in relation to this matter.<br />

Examination of sustainable agency resourcing (including staffing <strong>and</strong> management systems)<br />

<strong>and</strong> assessing the appropriate level of resourcing for regulatory agencies.<br />

Evaluate the base-level resourcing requirements necessary for regulatory agencies to<br />

perform current statutory obligations.<br />

Identify resourcing requirements which may be necessary to implement proposed<br />

recommendations of the working group.<br />

consider a range of service delivery <strong>and</strong> funding options to improve operational<br />

processes <strong>and</strong> promote greater administrative efficiencies.<br />

page 37


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

INDUSTRY WORKING GROUP – MEMBERS AND SECRETARIAT<br />

Name Position/Organisation<br />

Mr Michael Roche (Chair) Chief Executive<br />

<strong>Queensl<strong>and</strong></strong> Resources Council<br />

Mr John Briggs Partner<br />

Blake Dawson<br />

Ms Kylie Gomez Gane Development <strong>and</strong> External Relations Manager<br />

Cougar Energy<br />

Mr Brian Martin Manager<br />

Hetherington Exploration <strong>and</strong> <strong>Mining</strong><br />

Mr Matthew Paull Director - <strong>Queensl<strong>and</strong></strong> <strong>and</strong> NSW<br />

Australian Petroleum Production <strong>and</strong> Exploration<br />

Association Limited (APPEA)<br />

Ms Sue Sara General Manager<br />

Corporate Affairs <strong>Queensl<strong>and</strong></strong><br />

Xstrata Copper<br />

Mr Ross Willims VP, External Relations<br />

BHP Billiton Metallurgical Coal<br />

Mr Paul Travers Associate Director<br />

Maunsell AECOM<br />

Mr Ross Bannerman Manager Legal<br />

Xstrata Coal<br />

Mr Dennis Brown-Kenyon Deputy General Manager<br />

New Hope Coal<br />

Mr Ben Zillmann Partner<br />

Allens Arthur Robinson<br />

APPENDIX TWO:<br />

page 38


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

Name Position/Organisation<br />

Mr Dominic McGann Partner Infrastructure<br />

McCullough Robertson<br />

Mr Geoff Laing General Manager, Corporate <strong>and</strong> Project Development<br />

Exco Resources<br />

Mr Ross Evans Manager Commercial & Systems Development<br />

Origin Energy<br />

Mr Rod Cameron Manager Environmental Services<br />

Rio Tinto Coal Australia<br />

Mr Andrew Kozak Lead tenures Advisor<br />

QGC Group<br />

Ms Carolyn Collins<br />

Environment Manager<br />

Arrow Energy Limited<br />

Mr James Purtill Strategic Adviser<br />

Santos<br />

IWG SECRETARIAT<br />

Mr Andrew Barger Director Industry Policy <strong>Queensl<strong>and</strong></strong> Resources Council<br />

Ms Archana Mishra Industry Policy Adviser <strong>Queensl<strong>and</strong></strong> Resources Council<br />

Mr Russell Silver-Thomas Industry Policy Adviser <strong>Queensl<strong>and</strong></strong> Resources Council<br />

Ms Frances Hayter Director – Environment & Social Policy <strong>Queensl<strong>and</strong></strong> Resources Council<br />

Ms Connie Stanley Senior Advisor to the Deputy Director-General Department of<br />

Employment, Economic Development <strong>and</strong> Innovation (DEEDI)<br />

page 39


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

Industry proposed PGA amendments received by DEEDI<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

1. P&G Act Exploration Exploration authority imposes a rapid<br />

relinquishment timeframe with 33.3 percent<br />

reduction in area required each four years. It is<br />

clear that this approach is designed to ensure that<br />

ground [block] is turned over quickly <strong>and</strong> thereby<br />

rapid exploration <strong>and</strong> development is promoted<br />

which has proven well suited to conventional<br />

petroleum exploration, where a discovery is either<br />

made or not made. However, the concept of<br />

discovery does not readily translate to CSG, since<br />

discovering coal in a coal basin is not difficult.<br />

Instead, it is the delineation of production<br />

fairways, trialling of appropriate techniques <strong>and</strong><br />

pilot production testing that is the focus of<br />

exploration works. These activities require<br />

significant time.<br />

2. P&G Act Exploration The 33.3 percent reduction upon each four year<br />

renewal period imposes a pace of reduction that<br />

exceeds the practical ability of companies to<br />

complete appraisal work, as well as put in place<br />

the necessary infrastructure <strong>and</strong> commercial<br />

arrangements needed to secure prospective area<br />

under long term tenure.<br />

3. P&G Act Exploration The rate of relinquishment of Authority to Prospect<br />

(ATP) area is accelerated by provisions that count<br />

relinquishment in sub-blocks, but also dem<strong>and</strong><br />

page 40<br />

APPENDIX THREE:<br />

Proposed changes<br />

Supporting information<br />

Review the four-year renewal period <strong>and</strong> 33.3<br />

percent relinquishment requirement, with<br />

recommendation to both increase the renewal<br />

period <strong>and</strong> allow for ministerial discretion to vary<br />

relinquishment conditions.<br />

Remove the duplication of relinquishment<br />

requirements currently imposed by need to<br />

relinquish both sub-blocks <strong>and</strong> blocks.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

that whole graticular blocks be relinquished.<br />

Example: if an ATP condition imposed a 26 subblock<br />

relinquishment, given that a graticular block<br />

is comprised of 25 sub-blocks, then two graticular<br />

blocks (comprising 50 sub-blocks) would need to<br />

be relinquished.<br />

4. P&G Act Retention There is no formal system of retention tenure. It is<br />

acknowledged that ministerial discretion is<br />

provided, under the P&G Act only, to declare<br />

Potential Commercial Area’s (PCA). However,<br />

implementation of a formal retention tenure<br />

(equivalent to Mineral Development Licence’s<br />

(MDL) issued under the Mineral Resources Act<br />

would acknowledge the need to retain areas as a<br />

matter of routine rather than as a special case<br />

requiring intervention by the minister. Further,<br />

tenures administered under the Petroleum Act<br />

1923 (eg ATP364) have no provision for PCA<br />

declaration, which is inequitable in comparison to<br />

both the P&G Act <strong>and</strong> the Mineral Resources Act.<br />

5. P&G Act Production Production leases are granted on condition that<br />

production commence within two years. The<br />

requirement to commence production is a short<br />

time period which does not recognise the<br />

industry’s needs to aggregate reserves to<br />

underpin supply arrangements that may cover a<br />

period of up to 25 years <strong>and</strong> need for a staged<br />

page 41<br />

Proposed changes<br />

Supporting information<br />

Establish a formal retention tenure in petroleum<br />

legislation (both the Petroleum Act 1923 <strong>and</strong> the<br />

Petroleum <strong>and</strong> Gas Act 2004)<br />

Review the criteria for a PL application to be<br />

consistent with the timeframes <strong>and</strong> commercial<br />

reality of CSG <strong>and</strong> LNG projects (this is<br />

proposed particularly as a short term resolution<br />

to retaining tenure for CSG/LNG projects).<br />

Review requirement to commence production


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

6. P&G Act Petroleum Lease<br />

application <strong>and</strong><br />

assessment<br />

Current situation/<br />

Problem<br />

page 42<br />

Proposed changes<br />

Supporting information<br />

production methodology. within two years (may be unnecessary if<br />

retention tenure become available).<br />

The petroleum legislation appears geared towards<br />

small scale <strong>and</strong> separate development, with a<br />

relatively modest size limit applied to PL<br />

applications <strong>and</strong> inability to apply a ‘project’<br />

consideration that may encompass multiple PL’s<br />

operating together or sharing infrastructure.<br />

7. P&G Act The changing nature of data capture, storage <strong>and</strong><br />

communication may allow for some aspects of the<br />

petroleum legislation to be reviewed, with a view<br />

of removal.<br />

8. P&G Act Timeframe for Notification<br />

of discovery <strong>and</strong><br />

For example, petroleum companies are required<br />

to submit cutting samples (Reg 48) <strong>and</strong> cores<br />

(Reg 49) to government. This requirement is<br />

unnecessary in that electronic data (eg wireline<br />

logs, photographs etc) has drastically reduced the<br />

need for original samples.<br />

Discovery <strong>and</strong> proving of CSG production takes<br />

longer than conventional petroleum discovery,<br />

Either increase the maximum size of PL<br />

application, or else allow for consideration of<br />

multiple <strong>and</strong> contiguous PL applications as a<br />

‘project’.<br />

Remove requirement to supply cuttings <strong>and</strong> core<br />

samples <strong>and</strong> place greater emphasis on<br />

electronic data capture <strong>and</strong> reporting.<br />

Facilitate data acquisition in frontier area <strong>and</strong><br />

allow titleholders with 1923 tenure to acquire<br />

data outside their areas. DAAs under the P&G<br />

Act to allow granting without other titling<br />

requirements.<br />

Extend timeframe for notification of discovery<br />

<strong>and</strong> evaluation.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

9. P&G Act, Mineral<br />

Resource Act 1989,<br />

evaluation<br />

Title<br />

Overlapping tenure<br />

matters<br />

Current situation/<br />

Problem<br />

therefore three days is not long enough.<br />

The petroleum legislation does not provide a high<br />

level of security of tenure, which adds significant<br />

difficulty in providing the necessary investment<br />

confidence required to underwrite large scale<br />

projects.<br />

Eg Mineral Resource Act 1989 (MRA) tenement<br />

holders are able to apply for petroleum leases<br />

within the area of ATPs held by petroleum<br />

companies. Under the MRA provisions, the<br />

requirements for making <strong>and</strong> justifying an<br />

application by the tenement holders are not as<br />

strict in terms of technical <strong>and</strong> economic<br />

justification <strong>and</strong> are not subject to the same size<br />

limitations.<br />

The provision for MRA tenure holders to be<br />

granted petroleum leases over petroleum tenures<br />

presents significant disadvantage, inequity <strong>and</strong><br />

threat for CSG companies including:<br />

- Economic loss: gas <strong>resource</strong>s <strong>and</strong> reserves<br />

estimates are the economic foundation of the<br />

CSG industry <strong>and</strong> are clearly factored into<br />

company market valuations. Therefore, loss<br />

of access to gas <strong>resource</strong>s via grant of an<br />

exclusive petroleum lease to mining<br />

proponents within the area of a granted ATP<br />

page 43<br />

Proposed changes<br />

Supporting information<br />

Requirements of consent from overlapping<br />

tenure holders who have no incentive to grant or<br />

no recourse for not engaging or giving consent<br />

generates lengthy delays.<br />

Amend legislation to provide timeframes by<br />

negotiation whereby the consenting party either<br />

gives reasons for objection, or if it fails to<br />

respond, then the application proceeds.<br />

Implement <strong>and</strong> communicate how the<br />

overlapping tenure policy for CSG <strong>and</strong><br />

underground coal gasification (UCG) affects the<br />

requirement to give consent during the pilot<br />

period to 2011.<br />

Act on government policy regarding<br />

management of overlap with UCG proponents to<br />

provide for grant of PL applications held up by<br />

this matter.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

represents a significant economic loss.<br />

- Sterilisation of <strong>resource</strong>s: CSG companies<br />

can extract full value from a petroleum lease<br />

area by accessing <strong>resource</strong>s contained in all<br />

coal formations. On the contrary, gas<br />

production associated with mining operations<br />

is constrained to the mining seam (in<br />

underground mining) or seams in open-cut<br />

mining. In current mining districts such as the<br />

Bowen Basin, grant of exclusive rights to<br />

petroleum to a mining proponent will result in<br />

sterilisation of gas <strong>resource</strong>s contained in<br />

non-mining coals seams or formations.<br />

- Ability for coordination of coal mining <strong>and</strong><br />

CSG activities: mutually beneficial <strong>and</strong><br />

cooperative arrangements between coal<br />

mining <strong>and</strong> CSG proponents have been<br />

demonstrated to work <strong>and</strong> provide the best<br />

option for maximising value from both<br />

petroleum <strong>and</strong> mining activities. Petroleum<br />

companies operate on the principle that CSG<br />

activities should be complementary to mining.<br />

There are proven examples of this operation<br />

which work without need for the mining<br />

proponent to hold exclusive rights to gas.<br />

10. P&G Act, Mineral Delay in application for There is disparity between the MRA <strong>and</strong><br />

page 44<br />

Proposed changes<br />

Supporting information


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

Resource Act 1989 exploration area petroleum legislation, whereby petroleum<br />

companies are unable to apply for exploration<br />

tenements as opportunities arise, whereas, under<br />

the MRA coal mining proponents can immediately<br />

apply for available l<strong>and</strong>.<br />

11. P&G Act ATP Award of ATPs: the ATP assessment <strong>and</strong> award<br />

process is biased towards the size <strong>and</strong> value of<br />

proposed work <strong>and</strong> expenditure programs, with 85<br />

percent weighting in determining the successful<br />

applicant. This has created a speculative<br />

environment, where winning bids can be ramped<br />

up to unrealistic level simply to obtain tenure<br />

12. P&G Act, Sustainable<br />

Planning Act 2009<br />

Pipeline <strong>and</strong> associated<br />

water management<br />

network<br />

Currently, the associated water produced on a<br />

tenure can only be transported by pipeline:<br />

- within the tenure area;<br />

- across contiguous petroleum leases where the<br />

title holder is the same;<br />

- across contiguous petroleum leases with<br />

different title holders providing a coordination<br />

agreement is in place.<br />

All remaining pipelines transporting associated<br />

water must be approved under the Sustainable<br />

Planning Act 2009, which results in significantly<br />

different approval processes <strong>and</strong> timeframes. This<br />

complicates the planning <strong>and</strong> approvals process<br />

page 45<br />

Proposed changes<br />

Supporting information<br />

Tender process must be transparent - work<br />

programs for winning tenders for acreage<br />

release should be published.<br />

Review of the weighting system used to decide<br />

ATP applications, with recommendation to adjust<br />

weightings to 50 percent on proposed work <strong>and</strong><br />

expenditure program, <strong>and</strong> 50 percent on<br />

applicant’s ability or credentials to complete.<br />

Amend petroleum legislation to clarify that<br />

aggregation of associated water within a project<br />

is defined as a ‘petroleum activity’ <strong>and</strong> to provide<br />

for transport of associated water across tenure<br />

boundaries with approvals as per gas pipelines<br />

for the purpose of aggregation.<br />

It should be clear that the transport of associated<br />

water is a ‘petroleum activity’ only to the point of<br />

aggregation, whether that is in a treated or<br />

untreated form.<br />

Once the water enters a pipeline to deliver to the<br />

customer or for beneficial use, the provisions of<br />

the planning <strong>and</strong> water legislation should


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

13. P&G Act Registration of Easements<br />

for Infrastructure prior to<br />

grant of pipeline licence<br />

under P&G Act<br />

Current situation/<br />

Problem<br />

for management of associated water across a<br />

project.<br />

Associated water management facilities are being<br />

installed to treat <strong>and</strong> transport water for a project<br />

which requires transport across multiple tenures,<br />

including ATPs, mining leases <strong>and</strong> agricultural<br />

tenures. Some of these stakeholders are subject<br />

to approval requests under both the petroleum<br />

<strong>and</strong> planning legislation due to the fact that the<br />

petroleum lease boundary finishes within their<br />

tenure area.<br />

Under current titles office practice, easements are<br />

not able to be registered until PLs are granted to<br />

proponents.<br />

To register easements over freehold <strong>and</strong><br />

leasehold tenure in advance of the grant of<br />

pipeline licences to secure rights granted by<br />

l<strong>and</strong>owners under option agreements. The early<br />

registration of these easements will allow protect<br />

proponents’ rights under the option agreement<br />

against any subsequent arrangements or dealing<br />

with the l<strong>and</strong>.<br />

Easements are the preferred tenure required for<br />

the construction <strong>and</strong> operation of the gas<br />

transmission pipeline, water supply pipelines <strong>and</strong><br />

page 46<br />

continue to apply.<br />

Proposed changes<br />

Supporting information<br />

If this change is not acceptable to government,<br />

would seek to have the L<strong>and</strong> Title Act 1994<br />

amended to allow the registration of caveats<br />

protecting pipeline proponents’ rights under<br />

easement options. An alternative would be to<br />

allow an administrative dealing notice to be<br />

placed on the l<strong>and</strong> title the subject of the option<br />

agreement.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

14. P&G Act,<br />

L<strong>and</strong> Act 1994<br />

Title<br />

Registration of easements<br />

in gross for linear<br />

infrastructure under P&G<br />

Act<br />

Current situation/<br />

Problem<br />

underground power <strong>and</strong> data cables.<br />

Due to the length of petroleum pipelines <strong>and</strong> other<br />

associated infrastructure, the corridors for this<br />

infrastructure are generally held under easementin-gross.<br />

Traditional dominant – servient<br />

easements are not practical for linear<br />

infrastructure <strong>and</strong> generally conflict with titles<br />

office practice for this type of infrastructure.<br />

Under the L<strong>and</strong> Act 1994, easement-in-gross can<br />

only be registered for public utility easements. A<br />

public utility easement means an easement in<br />

favour of a public utility provider <strong>and</strong> defined<br />

under the L<strong>and</strong> Act 1994 as the state or an entity<br />

represent the state, the Commonwealth, a local<br />

authority, a person authorised by law to provide a<br />

public utility service, a person approved by the<br />

minister as suitable to provide a particular public<br />

utility service, a mill owner but not for the purpose<br />

of registration of a cane railway easement. For<br />

fully integrated LNG projects there is a potential<br />

argument that company X may not be categorised<br />

as a public utility provider within the meaning of<br />

the L<strong>and</strong> Act 1994.<br />

This would impose significant constraints on the<br />

project to the point that delays could be incurred<br />

or that l<strong>and</strong> for linear infrastructure may not be<br />

secured<br />

15. P&G Act Service of notice under Statutory fallbacks will be necessary to ensure<br />

page 47<br />

Proposed changes<br />

Supporting information<br />

Section 125A of the SDPWO Act may assist in<br />

the resolution of at least one of the issues noted<br />

#13 <strong>and</strong> #14, as this provision provides the CG<br />

with power to take a public utility easement.<br />

However, this doesn’t cover those easements<br />

taken by agreement with l<strong>and</strong>owners which is<br />

the preferred acquisition process.<br />

Company X seeks amendments to the L<strong>and</strong> Act<br />

1994 to clarify that a holder of a petroleum<br />

licence is able to hold <strong>and</strong> register easement-ingross<br />

for linear infrastructure associated with the<br />

production <strong>and</strong> transportation of petroleum <strong>and</strong><br />

associated water.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

16. P&G Act Compensation payable to<br />

l<strong>and</strong>owners for directional<br />

drilling under the surface<br />

of their l<strong>and</strong> (without<br />

entering upon or<br />

disturbing the surface)<br />

Current situation/<br />

Problem<br />

P&G Act access to l<strong>and</strong> where company X has been unable<br />

to reach agreement with l<strong>and</strong> holders after a<br />

reasonable period of good faith negotiations.<br />

Issues - where company X has been unable to<br />

agree on compensation with owners of l<strong>and</strong> where<br />

ATP or PL activities are being conducted,<br />

company X may apply to the L<strong>and</strong> Court to<br />

determine the compensation payable. Company X<br />

is able to access the l<strong>and</strong> to compensate activities<br />

once it has served the L<strong>and</strong> Court application on<br />

each owner <strong>and</strong> occupier of the l<strong>and</strong>. There<br />

doesn’t appear to be any provision in the P&G Act<br />

which deal with service in overseas jurisdictions or<br />

where l<strong>and</strong>owners are unable to be located or<br />

contacted.<br />

Company X is currently trialling directional drilling<br />

as a way of decreasing the surface impact of the<br />

activities on l<strong>and</strong>owners. In some circumstances,<br />

this may involve locating the well pad <strong>and</strong> surface<br />

infrastructure on one property <strong>and</strong> drilling through<br />

coal seam located under another property.<br />

Under the P&G Act, it is likely that company X will<br />

be required to give an entry notice <strong>and</strong> agree on<br />

compensation prior to undertaking the activity.<br />

As a result, company X is in a situation where it is<br />

page 48<br />

Proposed changes<br />

Supporting information<br />

Amendments to the P&G Act to remove the need<br />

to agree on compensation in this situation.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

required to agree compensation with a l<strong>and</strong>owner<br />

for no conceivable disturbance to the surface of<br />

the l<strong>and</strong>.<br />

17. P&G Act, Water Act Water transportation The <strong>Queensl<strong>and</strong></strong> Government has indicated its<br />

desire for associated water from petroleum<br />

activities to be reinjected back into suitable<br />

aquifers or beneficially reused.<br />

There is currently no statutory right under the P&G<br />

Act which allows petroleum tenement holders to<br />

transport water in order to achieve these stated<br />

objectives of the government (for example,<br />

transporting water outside of company X tenement<br />

area to an end user or to a suitable re-injection<br />

site). These rights should be created under the<br />

P&G Act <strong>and</strong> preferably through a pipeline<br />

licence.<br />

18. P&G Act, Water Act Associated water Exp<strong>and</strong> the scope for consideration <strong>and</strong> facilitation<br />

of beneficial uses of produced water, including<br />

surface water release rather than consideration as<br />

regulated waste.<br />

Clarification that supply of produced water does<br />

not trigger classification as a water service<br />

provider.<br />

19. P&G Act Petroleum tenure Reducing the number of approvals required after<br />

assessment of the EIS.<br />

page 49<br />

Proposed changes<br />

Supporting information<br />

Amendments to the P&G Act <strong>and</strong> the Water Act<br />

to transport CSG associated water.<br />

Amendment of the P&G Act to place a petroleum<br />

tenure on the same basis as mining


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

20. P&G Act, Integrated<br />

Planning Act<br />

(IPA )<br />

Title<br />

Current situation/<br />

Problem<br />

Streamline requirement for additional approvals<br />

through the Integrated Planning Act 1997.<br />

page 50<br />

Proposed changes<br />

Supporting information<br />

Confirm ATPs, petroleum leases <strong>and</strong> pipeline<br />

licences to cover all related activities (eg STP,<br />

RO Plants, irrigation, buildings) so that activities<br />

do not also require separate the IP Act<br />

approvals, particularly where water is being<br />

transported across boundaries or is consolidated<br />

for treatment <strong>and</strong>/or disposal.<br />

21. P&G Act To facilitate early applications <strong>and</strong> approvals. Allow conversion of ATPs to PLs prior to EIS<br />

approval but subject to EIS conditions.<br />

22. P&G Act Part 6, Div 1, 2,3 Reduce number of approvals required where gas<br />

devices is not of significance.<br />

23. P&G Act<br />

Petroleum Act 1923<br />

S 110<br />

Construction <strong>and</strong><br />

operation of pipelines<br />

24. P&G Act Pipeline licence To ensure that there are not differing regulatory<br />

regimes applying to different parts of a pipeline<br />

Include threshold limits of when gas work<br />

authorisation is required, rather than a gas work<br />

authorisation being required for any type A or<br />

type B gas device.<br />

Workload saving <strong>and</strong> alignment of processes. Extend the ability to run pipelines across<br />

adjacent PLs to include the scenario where the<br />

adjacent PLs are both Petroleum Act 1923 PLs<br />

(noting however that this may trigger native title<br />

issues).<br />

Provides alignment with process for pipeline<br />

between adjacent PLs where both are the P&G<br />

Act <strong>and</strong> the Petroleum Act 1923/or one P&G Act<br />

PL <strong>and</strong> one Petroleum Act 1923 PL.<br />

Extend application of the P&G Act to the<br />

‘offshore’ component of the pipeline so that a


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

particularly in a case where the offshore<br />

component is in the middle of two onshore<br />

components<br />

25. P&G Act Pipeline testing To reduce transportation impacts <strong>and</strong> elimination<br />

of reduction in localised water supply due to<br />

returning water.<br />

26. P&G Act - Policy To reduce application processing time once CG<br />

Report issued. Reduction in processing time<br />

through parallel development, with additional<br />

information of development provided at EMP level.<br />

This will result in reduced review times.<br />

27. EPBC Act s. 74AA To facilitate early works, which are not likely to<br />

have a significant impact, to allow the minister<br />

greater flexibility to authorise works in advance of<br />

the EPBC approval<br />

page 51<br />

Proposed changes<br />

Supporting information<br />

proponent doesn’t have two different pipeline<br />

licences with differing regulatory regimes (ie one<br />

pipeline licence under the P&G Act for the<br />

onshore component <strong>and</strong> one pipeline licence<br />

under the Petroleum (Submerged L<strong>and</strong>s) Act for<br />

the offshore component).<br />

Permit water to be extracted for testing (for<br />

example, hydrostatic testing of the pipeline),<br />

then treat <strong>and</strong> return the water to its <strong>resource</strong>.<br />

Enable access to water for testing purposes.<br />

Enable consideration of petroleum authority<br />

applications in parallel to CG report.<br />

28. EP Act Legislation Avoid duplication of advertisement process. Remove requirement to advertise Environmental<br />

Authority or Environmental Authority<br />

amendments that have been advertised as part<br />

of the EIS process.<br />

29. EP Act approvals Timely approval process. Legislation to simplify phased approach to<br />

approvals. Additional information would be


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

30. EP Act - Policy CSG water classification as a regulated waste has<br />

amplifications on dam design policies.<br />

page 52<br />

Proposed changes<br />

Supporting information<br />

available to DERM at the time of approval due to<br />

phased approach enabling better definition to<br />

assist approval process.<br />

Implementation a threshold for classification of<br />

CSG water as a regulated waste where water<br />

has a lower salinity level.<br />

Better fit for purpose infrastructure based on risk<br />

level.<br />

31. EP Act - Policy Whole-of-government consistent regulatory<br />

timeframes to provide timely approvals <strong>and</strong><br />

certainty of process for projects of state<br />

significance. Enable DERM to monitor <strong>and</strong><br />

manage workload <strong>and</strong> allow industry to plan<br />

projects more efficiently.<br />

32. EP Act - Policy Noise Noise limits have implications for project design. Noise limits to be reviewed to be aligned with a<br />

manageable target.<br />

33. Water Act approvals To reduce the number of approvals required for<br />

various water uses outside of the stock <strong>and</strong><br />

domestic purposes exemption.<br />

Extend water licensing exemptions to situations<br />

where the stock <strong>and</strong> domestic purposes<br />

exemption doesn’t apply. For example, where<br />

water is shipped to a central hub, fully or partially<br />

treated <strong>and</strong> distributed to various l<strong>and</strong>owners.<br />

34. Water Act To reduce the number of approvals required Allow water to be moved to adjacent PLs within


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Title<br />

Current situation/<br />

Problem<br />

35. Water Act To reduce the need to transport treated<br />

associated water.<br />

36. Water Act Inconsistent policy position in relation to brine<br />

(DERM).<br />

37. SDPWO Act To reduce the potential for duplication of EIS<br />

processes where seeking development approval<br />

for a MCU in SDAs.<br />

38.<br />

SDPWO Act EIS process To allow changes to the project during the EIS<br />

assessment or staging of the assessment.<br />

39. Nature Conservation To allow for removal of least-concern plants held<br />

page 53<br />

Proposed changes<br />

Supporting information<br />

where water is to be transported across PLs. the project area without requiring a development<br />

approval or water licence (as is the case where<br />

water is moved within a PL).<br />

Allow treated associated water to be recharged<br />

to aquifer instead of piping elsewhere.<br />

It will be a potential to recharge aquifers as the<br />

medium to distribute water <strong>resource</strong> enabling<br />

water balance through natural means.<br />

Allow concentrated brine to be injected into nonuseable<br />

saline aquifers to improve<br />

environmental outcomes compared to<br />

encapsulated salt at l<strong>and</strong> surface.<br />

Identify <strong>and</strong> progress policy <strong>and</strong>/or regulation<br />

changes not specific to the EIS process, but<br />

impacting on the delivery of a project in parallel.<br />

(ie camp on Curtis Isl<strong>and</strong>, material change of<br />

use issues).


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

Act 1992 or Nature<br />

Conservation<br />

(Protected Plants)<br />

Plan 2000<br />

40. Nature Conservation<br />

Act 1992<br />

41. Integrated Planning<br />

Act/Sustainable<br />

Planning Act<br />

42. Integrated Planning<br />

Act/Sustainable<br />

Planning Act<br />

43. Integrated Planning<br />

Act, <strong>and</strong> Sustainable<br />

Planning Act 2009<br />

Title<br />

Current situation/<br />

Problem<br />

under a petroleum tenure or where otherwise<br />

authorised under an Environmental Authority.<br />

page 54<br />

Proposed changes<br />

Supporting information<br />

Approval process To reduce approvals duplication. Streamline approval regime for dealing with<br />

protected plants <strong>and</strong> animals from the Nature<br />

Conservation Act 1992 to avoid duplication with<br />

approval regime under the Environmental<br />

Protection Act 1994.<br />

To reduce the number of approvals required when<br />

conducting activities under petroleum tenure.<br />

To provide certainty that current exemption will<br />

continue to apply.<br />

Reducing the number of approvals required after<br />

assessment of the EIS.<br />

Currently, DERM require tenure to be held before<br />

such a <strong>resource</strong> allocation can be granted.<br />

Broaden exemptions under planning laws where<br />

related to petroleum tenure activities so those<br />

exemptions are consistent with exemptions<br />

applicable to mining tenures.<br />

Will ensure consistency of approvals required<br />

across differing types of tenures.<br />

Ensure, at a minimum, all existing exemptions<br />

under planning laws for petroleum tenure<br />

activities are retained in new regulations for the<br />

Sustainable Planning Act 2009.<br />

Amendments of the IP Act <strong>and</strong> the Sustainable<br />

Planning Act 2009 to become law to remove the<br />

requirement for a <strong>resource</strong> allocation from a<br />

state agency before an application such as tidal<br />

works is made over state l<strong>and</strong> or waters.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

44. Integrated Planning<br />

Act, Sch 8.<br />

Title<br />

Current situation/<br />

Problem<br />

Reducing the number of approvals required after<br />

assessment of the EIS under the IPA eg tidal<br />

works, development in water courses etc.<br />

45. P&G Act Improvement in workload management <strong>and</strong> ability<br />

to deliver projects enabling DEEDI to monitor <strong>and</strong><br />

manage workload <strong>and</strong> allow industry to plan<br />

projects more efficiently.<br />

46. P&G Act Policy Reduced contact with industry to provide low level<br />

feedback on progress.<br />

47. P&G Act Streamline the need for multiple approvals where<br />

particular activities the subject of those all from<br />

part of the one project. Also recognises the<br />

complexity of multiple ownership <strong>and</strong> operator<br />

models within the LNG industry.<br />

page 55<br />

Proposed changes<br />

Supporting information<br />

Make petroleum tenures exempt from the<br />

requirement of the multiple ‘schedule 8’<br />

approvals where the development has already<br />

been assessed by the EIS.<br />

Whole-of-government consistent regulatory<br />

timeframes to provide timely approvals <strong>and</strong><br />

certainty of process for projects of state<br />

significance (DEEDI, DERM, DIP).<br />

Improve access to DEEDI’s electronic systems<br />

to allow industry to track the progress of<br />

approvals rather than making phone calls<br />

regularly or meeting with DEEDI.<br />

Tenure amendment approvals.<br />

48. P&G Act As above Later Development Plans.<br />

49. P&G Act As above Infrastructure approvals (eg dam design plan).<br />

50. AP Act As above Approvals to conduct environmentally relevant<br />

activities within an environmentally sensitive<br />

area or buffer area.<br />

51. AP Act As above Beneficial reuse approvals.


REVIEW OF QUEENSLAND’S EXPLORATION AND DEVELOPMENT APPROVAL PROCESSES<br />

INDUSTRY WORKING GROUP REVIEW<br />

<strong>supporting</strong> <strong>resource</strong> <strong>sector</strong> <strong>growth</strong> 30 April 2010<br />

No.<br />

Legislation,<br />

Section<br />

52. Nature Conservation<br />

Act<br />

Title<br />

Current situation/<br />

Problem<br />

page 56<br />

Proposed changes<br />

Supporting information<br />

As above Approval for temporary <strong>and</strong>/or permanent<br />

clearing of remnant vegetation.<br />

53. Water Act As above Riverine Protection Permit.<br />

54. Water Act As above Water Licence.<br />

55. Forestry Act As above Permit to traverse.


INDUSTRY WORKING GROUP REVIEW OF QUEENSLAND’S EXPLORATION AND<br />

DEVELOPMENT APPROVAL PROCESSES 30 April 2010

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