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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales Coal Seam and Other Unconventional Gas Moratorium Bill 2015 Explanatory note This explanatory note relates to this Bill as introduced into Parliament. Overview of Bill The object of this Bill is to place a moratorium on prospecting for, or the mining of, coal seam gas or other unconventional gas. Outline of provisions Part 1 Preliminary Clause 1 sets out the name (also called the short title) of the proposed Act. Clause 2 provides for the commencement of the proposed Act on the date of assent to the proposed Act. Clause 3 defines certain words and expressions used in the proposed Act. Words and expressions used in the proposed Act that are defined in the Petroleum (Onshore) Act 1991 have the same meaning as in that Act, except in so far as they are defined differently in the proposed Act or the context or subject-matter otherwise indicates or requires. Part 2 Moratorium on coal seam or other unconventional gas prospecting or mining Clause 4 prohibits prospecting for or mining of coal seam or other unconventional gas in an onshore area from the commencement of the proposed Act until the day, if any, specified in a moratorium lifting order published by the Minister in the Gazette (the moratorium period) for the area. Any petroleum title (other than an existing production lease) relating to coal seam or b2015-084.d05 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Explanatory note other unconventional gas ceases to have effect during the moratorium period for an area and the Minister must not grant or renew any such title. The proposed section makes it clear that any person who prospects or mines coal seam or other unconventional gas during the moratorium period for an area has committed an offence under section 7 of the Petroleum (Onshore) Act 1991. Clause 5 provides for no go zones for coal seam or other unconventional gas to be those areas listed in Schedule 1. Clause 6 provides that the Minister may make a moratorium lifting order, by order published in the Gazette, to specify a day (being a day that is no earlier than 21 days after the order is published) on which the moratorium period for a specified onshore area is to end. The Minister may only make an order if: (a) the Minister is satisfied that no part of the area is within the no go zone for coal seam or other unconventional gas, and (b) the Standing Expert Advisory Body on Coal Seam Gas or Other Unconventional Gas (the Standing Expert Advisory Body) has provided the Minister with a certificate to the effect that, in its opinion, the moratorium regulatory framework under proposed section 8 is in effect and being complied with, and (c) the Minister has published a certificate in the Gazette, prepared by the NSW Chief Scientist and Engineer and the Standing Expert Advisory Body, to the effect that any extraction of coal seam gas or other unconventional gas would be safe and not cause permanent harm to water sources and the environment and would not result in an increase of the net greenhouse gas emissions for the State during the life of the proposed petroleum title or titles for the area. Clause 7 provides that the Minister is to establish the Standing Expert Advisory Body. The proposed section establishes the functions of the body, which include making recommendations to the Minister, providing an annual report to the Minister and designating areas for the purposes of proposed Schedule 1. Clause 8 provides that the regulations may make provision for or with respect to the creation, administration and enforcement of the moratorium regulatory framework. The moratorium regulatory framework is to provide for the regulation of petroleum mining operations that are conducted under the authority of an existing production lease or a petroleum title granted over a part of an onshore area for which a moratorium period has ended. Part 3 Miscellaneous Clause 9 provides that any person may bring proceedings in the Land and Environment Court for an order to remedy or restrain a convention of the proposed Act. Clause 10 provides that the State is not required to pay compensation in connection with the enactment or operation of the proposed Act, but may nevertheless voluntarily choose to do so. Clause 11 provides that the proposed Act operates despite the Petroleum (Onshore) Act 1991 or any other law. Clause 12 enables the Governor to make regulations for the purposes of the proposed Act. Schedule 1 No go zones for coal seam or other unconventional gas extraction Schedule 1 lists the areas that are no go zones for coal seam or other unconventional gas and are excluded from the making of moratorium lifting orders under proposed section 6. These areas include certain local government areas, core drinking water catchment areas, the recharge zone of the Great Artesian Basin, certain reserved land and other significant areas, certain residential areas and areas within 2 kilometres of a critical industry cluster or prime agricultural land, as designated by the Standing Expert Advisory Body. Page 2 Introduced by the Hon. Adam Searle First print New South Wales Coal Seam and Other Unconventional Gas Moratorium Bill 2015 Contents Page Part 1 Preliminary 1 Name of Act 2 2 Commencement 2 3 Interpretation 2 Part 2 Moratorium on coal seam or other unconventional gas prospecting or mining 4 Moratorium on coal seam or other unconventional gas prospecting or mining 3 5 No go zones for coal seam or other unconventional gas extraction 3 6 Moratorium lifting orders 3 7 Standing Expert Advisory Body on Coal Seam or Other Unconventional Gas 4 8 Moratorium regulatory framework 6 Part 3 Miscellaneous 9 Restraint of contraventions of this Act and regulations 7 10 Compensation not payable 7 11 Relationship of Act with other laws 7 12 Regulations 8 Schedule 1 No go zones for coal seam or other unconventional gas extraction 9 b2015-084.d05 New South Wales Coal Seam and Other Unconventional Gas Moratorium Bill 2015 No , 2015 A Bill for An Act to place a moratorium on prospecting for, or the mining of, coal seam gas or other unconventional gas. Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 1 Preliminary The Legislature of New South Wales enacts: 1 Part 1 Preliminary 2 1 Name of Act 3 This Act is the Coal Seam and Other Unconventional Gas Moratorium Act 2015. 4 2 Commencement 5 This Act commences on the date of assent to this Act. 6 3 Interpretation 7 (1) In this Act: 8 coal seam or other unconventional gas means any petroleum in a gaseous state that 9 is extracted (whether by drilling, hydraulic fracturing or other means) from: 10 (a) coal seams or beds, or 11 (b) layers of shale rock, or 12 (c) tight sands such as sandstone or limestone. 13 existing production lease means a production lease that was in force immediately 14 before the day on which this Act commenced. 15 greenhouse gas emissions means emissions of carbon dioxide, methane, nitrous 16 oxide, a perfluorocarbon gas or any other gas prescribed by the regulations for the 17 purposes of this definition. 18 moratorium lifting order--see section 6. 19 moratorium period for an onshore area of the State is the period: 20 (a) commencing at the start of the day on which this Act commenced, and 21 (b) ending at the start of the day (if any) specified in a moratorium lifting order as 22 the day on which the moratorium period for the area ends. 23 Note. All onshore areas will have a moratorium period on the commencement of this Act. 24 no go zone for coal seam or other unconventional gas extraction--see section 5. 25 petroleum title relating to coal seam or other unconventional gas means any of the 26 following: 27 (a) an exploration licence granting the holder the exclusive right to prospect for 28 coal seam or other unconventional gas on the land comprised in the licence, 29 (b) an assessment lease granting the holder the exclusive right to prospect for coal 30 seam or other unconventional gas and to assess any coal seam gas deposit on 31 the land comprised in the lease, 32 (c) a production lease granting the holder the exclusive right to conduct petroleum 33 mining operations for coal seam or other unconventional gas in and on the land 34 included in the lease, 35 (d) a special prospecting authority granting the holder the exclusive right to 36 conduct speculative geological, geophysical or geochemical surveys or 37 scientific investigations in relation to coal seam or other unconventional gas 38 on and in respect of the land comprised in the authority. 39 Standing Expert Advisory Body--see section 7. 40 (2) Words and expressions used in this Act that are defined in the Petroleum (Onshore) 41 Act 1991 have the same meaning as in that Act, except in so far as they are defined 42 differently in this Act or the context or subject-matter otherwise indicates or requires. 43 (3) Notes included in this Act do not form part of this Act. 44 Page 2 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 2 Moratorium on coal seam or other unconventional gas prospecting or mining Part 2 Moratorium on coal seam or other unconventional gas 1 prospecting or mining 2 4 Moratorium on coal seam or other unconventional gas prospecting or mining 3 (1) The following provisions apply during the moratorium period for each onshore area: 4 (a) prospecting for or mining coal seam or other unconventional gas is prohibited 5 in the area except in accordance with an existing production lease (as modified 6 by subsection (2)), 7 (b) any petroleum title (other than an existing production lease) relating to coal 8 seam or other unconventional gas that is in force immediately before the 9 commencement of this Act ceases to have effect to the extent to which it 10 authorises prospecting for or mining coal seam or other unconventional gas in 11 the area, 12 (c) the Minister must not (and cannot) grant or renew any petroleum title relating 13 to coal seam or other unconventional gas for the area. 14 (2) An existing production lease that is a petroleum title relating to coal seam or other 15 unconventional gas is taken, during the moratorium period for an onshore area, not 16 to authorise its holder to conduct petroleum mining operations involving drilling or 17 hydraulic fracturing for the purpose of increasing or extending the holder's capacity 18 to produce coal seam or other unconventional gas in the area. 19 (3) To avoid doubt, section 7 (Offence of prospecting or mining without authority) of the 20 Petroleum (Onshore) Act 1991 extends to a person who prospects or mines coal seam 21 or other unconventional gas in an onshore area during the moratorium period for the 22 area except in accordance with an existing production lease (as modified by 23 subsection (2)). 24 5 No go zones for coal seam or other unconventional gas extraction 25 (1) Each of the areas listed in Schedule 1 is a no go zone for coal seam or other 26 unconventional gas extraction. 27 (2) A reference in Schedule 1 to an area designated by the Standing Expert Advisory 28 Body is a reference to an area that is identified by the Advisory Body (whether by 29 means of a description or maps, or both) from time to time. 30 Note. The Minister must ensure that any descriptions or maps (or both) for areas designated 31 by the Standing Expert Advisory Body from time to time for the purposes of Schedule 1 are 32 published and publicly accessible on the website of the Department--see section 7 (5). 33 (3) The Minister may, by order published on the NSW legislation website, amend 34 Schedule 1 to add descriptions of additional areas, but only if the Standing Expert 35 Advisory Body has recommended that the area be added to the Schedule. 36 (4) An area may be added to Schedule 1 by an order under subsection (3) even if a part 37 of the additional area already falls within a description of another area listed in the 38 Schedule. 39 (5) Sections 40 and 41 of the Interpretation Act 1987 apply to an order under this section 40 in the same way as they apply to a statutory rule. 41 6 Moratorium lifting orders 42 (1) The Minister may, by order published in the Gazette (a moratorium lifting order), 43 specify a day (being a day that is no earlier than 21 days after the order is published) 44 on which the moratorium period for a specified onshore area is to end. 45 Page 3 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 2 Moratorium on coal seam or other unconventional gas prospecting or mining (2) The Minister may make a moratorium lifting order for a specified onshore area only 1 if: 2 (a) the Minister is satisfied on reasonable grounds that no part of the area is within 3 any of the no go zones for coal seam or other unconventional gas extraction, 4 and 5 (b) the Standing Expert Advisory Body has provided the Minister with a 6 certificate to the effect that, in its opinion, the moratorium regulatory 7 framework referred to in section 8 is in force and any applicable requirements 8 of the framework are being (or are capable of being) complied with within the 9 area by holders (or proposed holders) of petroleum titles, and 10 (c) the Minister has published in the Gazette a certificate prepared by both the 11 NSW Chief Scientist and Engineer and the Standing Expert Advisory Body to 12 the effect that the extraction of coal seam or other unconventional gas, if 13 carried out in accordance with the Petroleum (Onshore) Act 1991 and this Act 14 (and any licence conditions of a kind specified in the certificate): 15 (i) would be safe and not cause permanent harm to water sources in the area 16 or any other part of the area's environment, and 17 (ii) would not result in an increase of the net greenhouse gas emissions for 18 the State during the life of the proposed petroleum title or titles for the 19 area. 20 (3) The end of the moratorium period for an onshore area does not operate to revive any 21 petroleum title to the extent to which that title ceased to have effect because of the 22 operation of section 4. 23 (4) Sections 40 and 41 of the Interpretation Act 1987 apply to a moratorium lifting order 24 published in the Gazette in the same way as they apply to a statutory rule published 25 on the NSW legislation website. 26 7 Standing Expert Advisory Body on Coal Seam or Other Unconventional Gas 27 (1) The Minister is to establish the Standing Expert Advisory Body on Coal Seam or 28 Other Unconventional Gas (the Standing Expert Advisory Body). 29 (2) The Standing Expert Advisory Body: 30 (a) is to consist of at least the following 3 members: 31 (i) one member who, in the opinion of the Minister, has qualifications and 32 expertise in an earth, environmental or biological science, 33 (ii) one member who, in the opinion of the Minister, has engineering 34 qualifications and expertise concerning the conduct of petroleum 35 mining operations, 36 (iii) one member who, in the opinion of the Minister, has qualifications and 37 expertise in relation to water management, and 38 (b) may include no more than 2 additional members who, in the opinion of the 39 Minister, have qualifications and expertise in medicine or the social sciences. 40 (3) The regulations may make provision for or with respect to the following: 41 (a) terms of office of members of the Standing Expert Advisory Body, 42 (b) the appointment of a Chairperson of the Standing Expert Advisory Body and 43 the appointment of deputies for members, 44 (c) vacation of office of members (including by removal), 45 (d) remuneration of members, 46 (e) the procedure for meetings and decisions of the Standing Expert Advisory 47 Body (including quorum requirements). 48 Page 4 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 2 Moratorium on coal seam or other unconventional gas prospecting or mining (4) The Standing Expert Advisory Body has each of the following functions: 1 (a) to advise, and provide recommendations to, the Minister in connection with 2 the following: 3 (i) whether petroleum mining operations for coal seam or other 4 unconventional gas should be permitted in any onshore area and, if so, 5 the regulatory system that should apply to the area (including conditions 6 that should be imposed on petroleum titles relating to coal seam or other 7 unconventional gas granted for the area), 8 (ii) the establishment and contents of, and analysis of the data held in, the 9 Whole of Environment Data Repository referred to in section 8 (2) (d), 10 (iii) the development and updating of a risk management and prediction tool 11 with respect to the effects of petroleum mining operations for coal seam 12 or other unconventional gas and its use in connection with the lifting of 13 the moratorium period for an onshore area and the granting of 14 petroleum titles relating to such gas, 15 (iv) the processes for characterising and modelling the sedimentary basis of 16 the State, 17 (v) the planning implications for the State if petroleum mining operations 18 for coal seam or other unconventional gas are permitted to be conducted 19 in an onshore area, 20 (vi) any scientific and technological developments concerning the conduct 21 of petroleum mining operations for coal seam or other unconventional 22 gas (including whether such developments should be incorporated into 23 the regulatory system for such operations), 24 (vii) research that should be undertaken with respect to the conduct of 25 petroleum mining operations for coal seam or other unconventional gas 26 in the State, 27 (viii) the development with the private sector and public sector bodies (both 28 national and international) of joint or harmonised approaches to 29 research, data collection, modelling and scale issues (such as 30 subsidence) in connection with petroleum mining operations for coal 31 seam or other unconventional gas, 32 (b) to designate areas for the purposes of the provisions of Schedule 1 that provide 33 for designation by the Standing Expert Advisory Body (including the 34 preparation of descriptions or maps, or both, to assist in the identification of 35 such areas), 36 (c) to provide an annual report to the Minister, based on data contained in the 37 Whole of Environment Data Repository referred to in section 8 (2) (d), on the 38 environmental impacts on the State during the year concerned of coal seam or 39 other unconventional gas, 40 (d) such other functions as may be imposed or conferred on it by or under this or 41 any other Act. 42 (5) The Minister must ensure that the following are published and publicly accessible on 43 the website of the Department: 44 (a) any descriptions or maps (or both) for areas designated by the Standing Expert 45 Advisory Body from time to time for the purposes of Schedule 1, 46 (b) any annual report referred to in subsection (4) (c) that is provided to the 47 Minister by the Standing Expert Advisory Body. 48 Page 5 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 2 Moratorium on coal seam or other unconventional gas prospecting or mining 8 Moratorium regulatory framework 1 (1) The regulations may make provision for or with respect to the creation, 2 administration and enforcement of the moratorium regulatory framework. 3 Note. The Minister cannot begin to make moratorium lifting orders until the Standing Expert 4 Advisory Body has certified certain matters concerning the establishment and operation of the 5 moratorium regulatory framework--see section 6 (2). 6 (2) The moratorium regulatory framework is to provide for the following: 7 (a) the establishment of an accreditation or certification system for workers 8 conducting permissible petroleum mining operations for coal seam or other 9 unconventional gas (including mandatory training requirements for such 10 workers), 11 (b) the inspection and auditing of permissible petroleum mining operations for 12 coal seam or other unconventional gas to determine compliance with 13 requirements of this Act and the regulations and conditions of petroleum titles, 14 (c) the reporting, collection and publication of data concerning the conduct of 15 permissible petroleum mining operations for coal seam or other 16 unconventional gas, 17 (d) the establishment of a publicly accessible repository of data (to be called the 18 "Whole of Environment Data Repository") containing data that has been 19 collected under legislation of the State concerning activities involving water 20 management, gas extraction, mining, manufacturing and chemical processing 21 in the State, 22 (e) the manner in which permissible petroleum mining operations for coal seam 23 or other unconventional gas are to be conducted, 24 (f) the provision to the Minister by a holder of a petroleum title relating to coal 25 seam or other unconventional gas of information concerning potential impacts 26 (and the likelihood of potential impacts) on water sources in the area as a 27 precondition to commencing to conduct permissible petroleum mining 28 operations under the authority of that title. 29 (3) It is sufficient compliance with subsection (2) if a requirement referred to in that 30 subsection that is or can be applicable to the holder of a petroleum title relating to 31 coal seam or other unconventional gas is imposed by way of a condition of the title 32 prescribed by the regulations. 33 (4) In this section: 34 permissible petroleum mining operations for coal seam or other unconventional gas 35 means petroleum mining operations that are conducted under the authority of: 36 (a) an existing production lease, or 37 (b) a petroleum title granted over a part of an onshore area for which the 38 moratorium period has ended. 39 Page 6 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 3 Miscellaneous Part 3 Miscellaneous 1 9 Restraint of contraventions of this Act and regulations 2 (1) In this section, contravention includes threatened or apprehended contravention. 3 (2) Any person may bring proceedings in the Land and Environment Court for an order 4 to remedy or restrain a contravention of this Act (or regulations made under this Act), 5 whether or not any right of that person has been or may be infringed by or as a 6 consequence of that contravention. 7 (3) Proceedings under this section may be brought by a person on the person's own 8 behalf or on behalf of that person and on behalf of other persons (with their consent), 9 or a body corporate or unincorporate (with the consent of its committee or other 10 controlling or governing body), having like or common interests in those 11 proceedings. 12 (4) Any person on whose behalf proceedings are brought is entitled to contribute to or 13 provide for the payment of the legal costs and expenses incurred by the person 14 bringing the proceedings. 15 (5) If the Court is satisfied that a contravention has occurred, or that a contravention will, 16 unless restrained by order of the Court, be committed, it may make such order as it 17 thinks fit to remedy or restrain the contravention. 18 10 Compensation not payable 19 (1) Compensation is not payable by or on behalf of the State: 20 (a) because of the enactment or operation of this Act or any Act that amends this 21 Act (or any regulations made under this Act), or 22 (b) because of any direct or indirect consequence of any such enactment or 23 operation (including any conduct under the authority of any such enactment), 24 or 25 (c) because of any conduct relating to any such enactment or operation. 26 (2) This section extends to conduct and any other matter occurring before the 27 commencement of this section. 28 (3) To avoid doubt, nothing in this section prevents the State from voluntarily providing 29 compensation, in such circumstances as it considers appropriate, for any conduct or 30 other matter of a kind referred to in subsection (1) (a), (b) or (c). 31 (4) In this section: 32 compensation includes damages or any other form of compensation. 33 conduct includes any statement, or any act or omission: 34 (a) whether unconscionable, negligent, false, misleading, deceptive or otherwise, 35 and 36 (b) whether constituting an offence, tort, breach of contract, breach of statute or 37 otherwise. 38 statement includes a representation of any kind, whether made orally or in writing. 39 the State means the Crown within the meaning of the Crown Proceedings Act 1988 40 or an officer, employee or agent of the Crown. 41 11 Relationship of Act with other laws 42 This Act has effect despite the Petroleum (Onshore) Act 1991 or any other law. 43 Page 7 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Part 3 Miscellaneous 12 Regulations 1 The Governor may make regulations, not inconsistent with this Act, for or with 2 respect to any matter that by this Act is required or permitted to be prescribed or that 3 is necessary or convenient to be prescribed for carrying out or giving effect to this 4 Act. 5 Page 8 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Schedule 1 No go zones for coal seam or other unconventional gas extraction Schedule 1 No go zones for coal seam or other 1 unconventional gas extraction 2 (Sections 5 and 7 (4) (b)) 3 1 Northern rivers of New South Wales 4 Each of the following local government areas: 5 (a) Ballina, 6 (b) Byron, 7 (c) Clarence Valley, 8 (d) Kyogle, 9 (e) Lismore, 10 (f) Richmond Valley, 11 (g) Tweed. 12 2 Core drinking water catchment areas 13 Each of the following areas: 14 (a) a special area under the Water NSW Act 2014, but only to the extent that it is 15 located in the Sydney catchment area within the meaning of that Act, 16 (b) an area identified as a water catchment area (however described) under an 17 environmental planning instrument (within the meaning of the Environmental 18 Planning and Assessment Act 1979), 19 (c) each catchment area referred to in clause 4 of the Hunter Water Regulation 20 2015, 21 (d) without limiting paragraph (a), (b) or (c), the Mangrove Creek water 22 catchment area or any other water catchment area (as designated by the 23 Standing Expert Advisory Body), including for each of the following dams: 24 (i) Avon, 25 (ii) Cordeaux, 26 (iii) Warragamba, 27 (iv) Woronora. 28 3 Recharge zone of the Great Artesian Basin 29 An area that is within the recharge zone of the Great Artesian Basin (as designated 30 by the Standing Expert Advisory Body). 31 4 National parks and other environmentally significant areas 32 Each of the following areas (or any area within 2 kilometres of each of the following 33 areas): 34 (a) land declared as a wilderness area under the Wilderness Act 1987 or the 35 National Parks and Wildlife Act 1974, 36 (b) land reserved under the National Parks and Wildlife Act 1974, 37 (c) an area listed as a wetland under the Convention on Wetlands of International 38 Importance done at Ramsar, Iran on 2 February 1971, 39 (d) the Greater Blue Mountains World Heritage Area. 40 Page 9 Coal Seam and Other Unconventional Gas Moratorium Bill 2015 [NSW] Schedule 1 No go zones for coal seam or other unconventional gas extraction 5 Residential areas 1 Land that is zoned or otherwise designated for use under an environmental planning 2 instrument (within the meaning of the Environmental Planning and Assessment Act 3 1979) for, or principally for, residential purposes (or land within 2 kilometres of such 4 land). 5 6 Critical industry clusters 6 An area designated by the Standing Expert Advisory Body to be a critical industry 7 cluster (or an area within 2 kilometres of such an area). 8 7 Prime agricultural land 9 An area designated by the Standing Expert Advisory Body to be prime agricultural 10 land (or an area within 2 kilometres of such an area). 11 Page 10
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