A traditional owner is elated after successfully challenging Woodside Energy's plan to begin seismic blasting off Western Australia as part of its Scarborough gas project.
But the head of Australian Energy Producers has called on governments to develop better regulations that provide clarity and certainty for industry.
Traditional custodian Raelene Cooper, a Mardudhunera woman, filed for a judicial review in August of the regulator's decision to approve Woodside's blasting plan.
The challenge argued the National Offshore Petroleum Safety and Environmental Management Authority made a legal error.
Federal Court Justice Craig Colvin agreed.
Despite finding Woodside's legally-required consultation with First Nations stakeholders was inadequate, NOPSEMA gave approval on July 31 for the seismic testing to begin, with a condition for further consultation.
Justice Colvin on Thursday set aside the regulator's decision, finding it had erred because it couldn't approve the environmental plan before consultation was finalised.
Ms Cooper said she was elated by the decision.
"This is bigger than me, it's about my people and our history," she said.
"I want the old people to remember we are warriors, I'm a warrior and my family are warriors."
Australian Energy Producers chief executive Samantha McCulloch said energy projects were being impacted by unclear regulations and their application.
"More obstacles are being put in the way of critical energy developments, risking the new supply needed to deliver domestic energy security, emissions reductions and substantial economic returns for Australians," she said.
"Regulations which provide clarity and certainty for industry while maintaining consultation obligations are desperately needed.
"Investors in Australia's resources sector face increasing approvals uncertainty after today's court decision, compounding the uncertainty stemming from last year's decision against a regulatory approval for the Santos Barossa Project."
In December a full bench of the Federal Court found Tiwi traditional owners were not properly consulted when Santos was given approval for drilling in its Barossa gas project 285km offshore from Darwin.
Woodside's project is offshore of the Burrup peninsula in northwest WA, known as Murujuga, which is nominated for UNESCO World Heritage listing as it contains the world's largest collection of Aboriginal rock art.
Ms Cooper said the company hadn't properly heard from traditional custodians about the full impacts of their Burrup Hub operations on culture and sacred songlines.
"No one is more relevant to consult about the threat posed by Woodside's Burrup Hub than traditional custodians of Murujuga with cultural, spiritual and family connections to our sacred ngurra (land)," she said.
Woodside said it would continue to work with the the National Offshore Petroleum Safety and Environmental Management Authority and stakeholders to have an accepted environmental plan in place before starting the seismic survey.
"The decision did not in any way criticise any action by Woodside," a spokesperson said.
"We have consulted extensively on our environment plans, dedicating time and effort so our approach to environmental management and environmental plan consultation meets our current understanding of regulatory requirements and standards."
Seismic testing involves ships towing special airguns that blast compressed air, creating pulses of sound.
This sound energy is directed at the sea floor and penetrates underlying rock layers, with the recorded sound patterns used to build a picture of geological layers and oil and gas reserves.
According to the Environmental Defender's Office, which represented Ms Cooper, the impacts of seismic blasting on marine animals such as whales can include damage to their hearing and ability to communicate, stress, displacement from habitat, physical injuries and death.
The massive Scarborough field is about 375km off WA's northwest coast.
The project's development phase will include the installation of a floating production unit with eight wells drilled initially and 13 wells across the life of the gas field.
Woodside expects to process about five to eight million tonnes of gas a year.
The judge awarded costs to Ms Cooper.
