THE controversial PEP-11 project may yet see the light of day after confirmation the new Labor federal government has agreed to settle a Federal Court case with the holders of the offshore coastal lease, paving the way for it to be reconsidered by the licensing tribunal.
The development was originally announced to the stock exchange yesterday and reconfirmed today in a statement by the Labor government's Resources Minister Madeleine King.
"The Australian Government and Asset Energy have reached an agreement to end ongoing litigation relating to PEP-11 and have filed proposed consent orders with the Federal Court of Australia," Ms King said.
"Should the Federal Court of Australia accept the proposed consent orders, the PEP-11 decision will be returned to the Commonwealth-New South Wales Offshore Petroleum Joint Authority for consideration."
PEP-11 had been sensationally stopped late in 2021 when Scott Morrison intervened directly to override the resources minister of the day, Keith Pitt, in the one decision the then prime minister made after secretly making himself a co-minister in various portfolios in the early days of the COVID pandemic.
The Federal Court case was brought on the grounds that Mr Morrison had made his decision in a way that it was "infected by actual bias".
The government had initially denied the claim.
Based on the history of the proposal, widespread opposition can be expected to counter any renewed effort to explore and possibly produce gas from the PEP-11 lease.
David Breeze, whose company BPH Energy has a substantial stake in the PEP-11 project, said he could not comment on the proceedings in the Federal Court because the judge was yet to sign the orders.
But he confirmed this was the expectation, which is in line with statements released to the stock exchange by BPH and a minority shareholder Bounty Oil and Gas.
Mr Breeze also pointed to the increasing difficulties in finding solutions to what he said was a national gas "crisis", with news today also that a proposal for an LPG import terminal in Newcastle had been shelved because it had found to be uneconomic.
Mr Breeze reconfirmed a previous pledge to dedicate any gas produced from PEP-11 would go to the domestic gas market, hopefully easing pressure on Australian energy prices.
In their statements to the stock exchange, BPH and Bounty Oil and Gas said they and the federal government had "filed proposed consent orders " in the Federal Court.
"The proposed consent orders seek to end the ongoing litigation concerning PEP-11 without the need for a trial," the statements say.
"The consent orders will only be made if (the court) considers it appropriate and the parties await further direction by the court.
"The consent orders, if granted, will set aside the decision made in March 2022 by the Commonwealth-NSW Offshore Petroleum Joint Authority to refuse Asset Energy's application for a variation and suspension of the conditions to which PEP-11 is subject, and a related refusal to grant an extension of term.
"If the decision of the joint authority is set aside, then it will need to be re-made according to law.
"In the meantime, PEP-11 continues in force and the joint venture is in compliance with the contractual terms of PEP-11 with respect to such matters as reporting, payment of rents and the various provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006."
Founder and director Save Our Coast Natasha Deen coordinated a petition against PEP-11, which attracted 87,000 signatures.
Dr Deen said she was extremely disappointed at the latest development.
"Tens of thousands of voices, including that of the current prime minister and all MPs in the PEP-11 zone, have been vocal in condemning PEP-11 as an outrageous plan that risks harm to our communities, environment, climate and way of life," she said.
"Today's decision based on a technicality is devastating as it condemns communities to once again live in the uncertainty of whether or not our precious coast that we depend on for our wellbeing and livelihoods, is once again subject to risk of harm, however we have faith that the Albanese government will honour their election commitment to end the dangerous and flawed plan that is PEP-11."
Each of the seven federal MPs between Port Stephens and Sydney also publicly denounced PEP-11 in the lead-up to the May 2022 federal election.
Newcastle MP Sharon Claydon said on Friday she shared the community's outrage about Morrison's mishandling of the PEP-11 issue.
"Our community's message has been loud, clear and consistent - PEP-11 is NOT welcome. Not in Sydney, Not in the Central Coast. And certainly Not in Newcastle," she said.
"We are in this mess because of Scott Morrison and his complete disregard for proper governance. Unlike the previous government, the Labor Resources Minister will methodically follow due process. This is the only way we can deliver certainty for our community."
Crucial coastal decision pending: PEP-11 about politics, not public interest
Greens spokesperson for healthy oceans, Senator Peter Whish-Wilson called on the government to immediately rule out granting an extension permit to the fossil fuel project.
"Disregarding the way in which he went about it, which was typically shocking, stopping PEP-11 was potentially the only good thing Scott Morrison ever did during his time in office," Senator Whish-Wilson said.
"This project is toxic. The community doesn't accept it, the NSW government doesn't want it, and even Scott Morrison proved he'd go to extraordinary lengths to kill it.
"During last year's election campaign Anthony Albanese publicly opposed PEP-11, but talk is cheap. Now his government has the power to stop it, he should put a proper end to this destructive project.
"When parliament was last in session I introduced the Offshore Petroleum and Greenhouse Gas Storage Amendment (Fight for Australia's Coastline) Bill to the Senate. If passed, this legislation would set a precedent for permanently stopping destructive offshore oil and gas exploration in our oceans.
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