MG/DM/GG22046
12 August 2022
Dean Raihman, Director
Environmental Services & Regulation
Department of Environment and Science
BRISBANE QLD 4001
By Email: rrs.consultation@des.qld.gov.au
Dear Dean
Re: AgForce Feedback on Draft Proposed Updates to the Transferring Petroleum Infrastructure to Landowners Guideline
AgForce is a peak organisation representing Queensland’s cane, cattle, grain and sheep & wool producers. The cane, beef, broadacre cropping and sheep & wool industries in Queensland generated around $8.4 billion in on-farm value of production in 2020-21. AgForce’s purpose is to advance sustainable agribusiness and strives to ensure the long-term growth, viability, competitiveness and profitability of these industries. Over 6,400 farmers, individuals and businesses provide support to AgForce through membership. Queensland producers provide high-quality food and fibre to Australian and overseas consumers and contribute significantly to the social fabric of regional, rural and remote communities.
Thank you for the opportunity to provide feedback on the proposed updates to the Transferring Petroleum Infrastructure to Landowners Guideline (the Guideline) to clarify the requirements for the transfer of coal seam gas (CSG) infrastructure, including access tracks, gates and water dams that will continue to receive inflows of CSG water.
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Water Infrastructure
In AgForce’s submission to the draft Coal Seam Gas Water Management Policy on 19 November 2012 we were supportive of the Government’s direction with the Policy and in consultation with a range of other agricultural representative groups, developed a set of principles concerning management of CSG-associated water. Key amongst these was that treated CSG water is a valuable resource that must be managed to achieve the greatest value for the environment, industry and the community.
Supporting this outcome is the ability for landowners to access and beneficially use treated CSG associated water, which can be facilitated by the safe and effective ‘goodwill’ transfer of P&G assets that contain or are proposed to contain associated water. Such transfers can also assist the comprehensive ‘make good’ process for any impacts to the landholder’s property, assets or activities and so support more effective co-location of agricultural and extractive resource industries.
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Landowner Awareness of Risk
A key element in the success of the transfer of petroleum infrastructure is that the landowner fully understands any risks that they are also accepting along with the infrastructure.
To that end, in the updated Appendix D, AgForce proposes the following amendment:
‘Confirmation that the landowner has received the information in items 2 – 6 inclusive, prior to providing the written consent specified in Item 2 and with sufficient time and independent advice such that any risks associated with the transfer are understood by the landowner’.
Whilst not wanting to include a disincentive to gas companies to undertake transfers, it is important to avoid situations where a landowner is unreasonably burdened with future obligations for an infrastructure failure or environmental impact.
We support including the following elements in the guideline:
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Written consent for the transfer from the landholder including details of the specific structure and when the transfer is anticipated to take effect.
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A written statement demonstrating that the structure is adequate for the identified intended on-going use and can be appropriately managed by the landholder.
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An inspection report for the structure prepared by a suitably qualified and experienced person within the previous 6 months which:
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assesses the condition and adequacy of all components of the structure; and
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includes a declaration that the structure is safe and stable
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A written statement demonstrating how the requirements of the End of Waste Codes are met.
AgForce supports definitional and operational clarity in the management of treated CSG related water as a resource when supplied to a landowner, as opposed to a waste and associated conditioning including producer registration, water quality criteria and the conditions of use.
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Residual Risk Recording
AgForce’s involvement in the consultation process around the draft Residual Risk Assessment Guideline in 2021 saw the inclusion of the requirement for residual risks to be recorded on a public register at the time of surrender. This included requirement for linkage of residual risks of a mining operation against the Queensland Government’s environmental management register and the contaminated land register. One question is why this large consultation process and agreed draft guideline are not available on the DES website, with only an interim version listed? See:
AgForce is very supportive of the requirement for proponents to record infrastructure against the environmental risk register at time of surrender and would suggest that if infrastructure is to be transferred prior to the actual surrender of the EA that these transferred assets also be recorded against the relevant registers when assets are transferred, not just at the time of surrender. In the approved Post-surrender management report. See:
AgForce is very supportive that records of residual risk infrastructure and other concerns are kept on the public register under section 540 of the Environmental Protection Act 1994 and that when the post-surrender management report includes a risk management plan for the land, a residual risks administrative note is included on the relevant land title as per section 275B of the Environmental Protection Act 1994.
AgForce suggests that the Queensland Government’s Residual Risk Framework and proposed Residual Risk Fund are critical inclusions in agreements for transfer of infrastructure.
The above-mentioned inclusion of transferred infrastructure on the public register and recognition of potential risk against the Residual Risks Framework and Fund will help clarify the onus on the State for management of potential risk through time as well as improving understanding of the role of farm pack insurance and public indemnity provisions.
AgForce would suggest that further work is required to ensure that the linkages between the Residual Risk Framework and the farm insurance requirement are explicit within agreements to transfer infrastructure prior to EA surrender.
For any inquiries in relation to this submission please contact Senior Policy Officer, Dr Greg Leach – phone: (07) 3236 3100 or email: leachg@agforceqld.org.au
Yours sincerely
Michael Guerin
Chief Executive Officer