Queensland's independent GasFields Commission is calling on the state government and a Shell-owned gas company to "urgently act" amid an investigation into alleged unlawful development.
Arrow Energy is a coal seam gas (CSG) company owned by Shell and Petrochina and is building its $10 billion Surat gas project on Queensland's Darling Downs, a rich agricultural region.
Some farmers are alleging that Arrow Energy has been wrongly claiming exemption from laws specifically set up to protect prime agricultural land from resources development.
There is an ongoing government investigation into the matter.
However, the GasFields Commission, a legislated statutory body charged with facilitating coexistence, is calling for the government to urgently release its findings to "resolve ongoing" issues between the gas company and landholders.
"This will provide much needed community assurance that the state’s regulatory framework requirements are being enforced”.
Investigation continues
Dalby farmer Zena Ronnfeldt has five deviated Arrow Energy gas wells drilled underneath her grain and cotton property, about 230 kilometres west of Brisbane.
Arrow Energy has been drilling deviated gas wells in order to reduce its impact on farmland.
The Ronnfeldts's farm is in an area designated as a priority agricultural area under the Regional Planning and Interests Act 2014, which is designed to "manage the impact of resource activities" on prime farming land.
In addition to regular state approvals and environmental authority, to develop a petroleum lease on a Priority Agricultural Area (PAA) a gas company needs to comply with the RPI Act 2014. To be compliant it either has to have an "exemption," or a Regional Interest Development Approval (RIDA).
Ms Ronnfeldt said she lodged a complaint with the Queensland government nine months ago, alleging that the gas wells around her property needed regional interest development approval, because they did not meet the “pre-existing activity exemption.”
"There's two exemptions available that might be applicable in the circumstance of farms such as ours, and one is the exemption due to pre-existing activities like as an activity existing, when the Regional Planning Interest (RPI) Act was passed through Parliament in 2014. And the other one is actually an agreement with landholder exemption," she said.
Ms Ronnfeldt claims neither scenario applies to her situation.
However, an Arrow Energy spokesperson said "the RPI Act 2014 provides an exemption for resource activities that were approved prior to the commencement of the act in 2014."
"This is the case for much of the Arrow’s Surat gas project.
"Arrow’s view is that it is operating within these exemptions."
But nine months on from the issue first being raised by Ms Ronnfeldt, the government is still investigating.
'Mistakes were made'
A spokesperson for Arrow Energy said it was committed to improving engagement and transparency.
"We know we made mistakes in the early implementation of the multi-well pad and deviated wells model and have previously acknowledged that we need to do better," they said.
In Queensland there are multiple pieces of legislation in place that gas companies must comply with. There are also about 8,600 coal seam gas wells operating, many with the cooperation of private landholders who welcome the income provided by the compensation.
"Our goal remains to build and maintain long-term positive landholder relationships based on openness and trust," the Arrow Energy spokesperson said.
However, whether a landholder want gas development on their land or not, under Queensland law they are obliged to deal with gas companies or risk being taken to court.
Government 'supports' reform
After a scathing report on the regulation of the coal seam gas industry from the Queensland Audit Office in 2019, it was recommended the GasFields Commission "review the assessment processes associated with the Regional Planning Interests Act 2014."
In 2021 the GasFields Commission released its review and recommendations, most of which centred around a new self-assessment process for gas companies against a proposed new code "that clearly articulates acceptable development outcomes."
The recommendations proposed that gas companies would then notify regulators of their assessment and for those notifications to be placed on a public register.
“Yesterday the commission received confirmation that the government has now considered our seven recommendations and 'supports four of the recommendations and supports in principle the remaining three recommendations'," the commission's Mr Squire said.
Ms Ronnfeldt wants the state regulators to take more serious action.
