Coal Seam Gas Water Management

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1 Coal Seam Gas Water Management Response to 2012 Draft Policy 30 November 2012 AgForce Queensland Industrial Union of Employers ABN First Floor, 183 North Quay, Brisbane, Qld, 4000 PO Box 13186, North Bank Plaza, cnr Ann & George Sts, Brisbane Qld 4003 Ph: (07) Fax: (07) Web:

2 Introduction AgForce is the peak lobby group representing the majority of beef, sheep & wool, and grain producers in Queensland. AgForce exists to ensure the long term growth, viability, competitiveness and profitability of these industries. AgForce Queensland (we) has a keen interest in the development of an effective Government policy to guide the management and use of Coal Seam Gas (CSG) associated water. It should be noted that this submission is not intended to address broader questions regarding development of the CSG industry, but just how CSG associated water should be managed. As a fundamental principle we recognise the intrinsic value of the water associated with CSG extraction; water is a valuable resource not a waste product and must be recognised for its environmental, social and economic value. AgForce (we) are broadly supportive of the Government s proposed Coal Seam Gas Water Management Policy Draft (draft policy) as currently drafted. Planning for the use of treated CSG water must demonstrate a balance between the social, economic and environmental outcomes such that one outcome is not realised at the significant detriment of another. Achieving this balance requires closer partnerships between communities, landholders and CSG operators and a stake-holder inclusive planning process to guide the treatment and use of this water. Such stakeholder involvement should be effective, ensuring companies act on reasonable stakeholder feedback about the management and use of CSG associated water. AgForce has been involved in recent discussions between CSG proponents and agricultural stakeholder groups (See Appendix) on the management and use of CSG water. This has been a constructive exchange to date and we recommend the Government hold a joint meeting with these two key sets of stakeholders before finalising their CSG water management policy. It is hoped that a range of policy issues can continue to be worked through in this forum and more efficient solutions developed that will find greater acceptance within the community in the longer term. Separate to this process and in consultation with a range of other agricultural representative groups, AgForce has developed a set of principles by which we recommend CSG-associated water be managed. Briefly, these are as follows: 1. Adoption of a proactive risk management approach to the use of CSG-associated water 2. Treated CSG water is a valuable resource that must be managed to achieve the greatest value for the environment, industry and the community 3. Management of treated CSG water should be planned for based on multi-stakeholder involvement 4. A priority consideration for the use of the water should be a focus on alleviating any depletion or deterioration that may have been caused on the existing water resources in the region of extraction and to ensure no negative impacts occur in relation to existing water rights or entitlements, now and into the future 5. CSG associated water must be treated by the CSG companies to the appropriate quality for its intended use and to avoid negative environmental impacts 6. Where impacts are understood and manageable, we would support reinjection, substitution, and other efficient beneficial uses for the water 7. Generally we do not support disposal of treated CSG water to surface waters unless under exceptional circumstances 8. We oppose use of unsustainable methods, such as evaporation, to dispose of CSG water. There may be limited circumstances such as during exploration and appraisal activities where AgForce Queensland Draft CSG Management Policy submission - 2 -

3 other beneficial uses are not available and evaporation is the only feasible option for small quantities of water. In these circumstances and only where environmental risks are negligible and the site is fully remediated after the exploration phase is completed, may there be a limited role for evaporation dams. The management of CSG water is a critical component to the overall success of the CSG industry in Queensland. The LNP s policy on the development of a sustainable CSG industry has made it clear that the Government will: not allow any CSG activity on strategic cropping land if it is likely to have a significant, adverse impact on the productive capacity of that land to produce food and fibre reflect community expectations in setting clear performance and environmental standards aim to ensure all landholders end up better off from their coexistence with the CSG industry 1. In achieving these outcomes, AgForce recommends a precautionary, risk management approach be adopted to the administration of CSG associated water and inclusion of a comprehensive water management plan under the environmental approvals process. Role of the policy AgForce are very supportive of the development of a policy that clearly and unambiguously sets out the Government s position on the management and use of CSG water and provides certainty to all stakeholders. In this it is important that the interaction of the policy with the range of legislative instruments relating to this area is stated clearly. While not wanting to see unnecessary duplication of Government administration, consistent with the need for certainty it is important that CSG companies can demonstrate in their water management plans that they have considered their potential impacts on the environment and other water users and have a robust and strategic plan for the amelioration of these environmental impacts and to deliver on their make good provisions into the future, including providing an ongoing supply of an equivalent amount of water of a suitable quality 2 where that is required. The policy must adopt a proactive risk management approach to authorising water use in order to deal with the uncertainty in potential impacts and the timing and amount of water and to increase rural community confidence that the water will be used effectively and ensure no net negative impact occurs. Relationship to CSG Water Management Policy 2010 AgForce support CSG water management options that minimise risks to the environment and maximise the value of the resource to the community and so we were not supportive of the adaptive management philosophy adopted by the previous State Government. We accept that CSG companies have secured approvals for some water management practices under the Environmental 1 accessed 14 November Chapter 3 of the Water Act 2000 AgForce Queensland Draft CSG Management Policy submission - 3 -

4 Protection Act 1994 (EP Act) under that approach. However, a continuation of those approvals should only occur where CSG water is being managed effectively, to best practice principles and in a way that maximises the value of the water resource to the community. Such approvals should therefore be regularly re-evaluated as part of annual auditing and reporting processes. AgForce largely supports the Government s 2010 policy position on evaporation dams, the ongoing decommissioning and conversion of existing evaporation dams, and their banning as a future primary management option for CSG water. We do not see that there is any suitable justification for evaporation as a method of management in the production phase. As per the 2010 policy, there may be limited circumstances such as during exploration and appraisal activities where other beneficial uses are not available and evaporation is the only feasible option for small quantities of water. In these circumstances and only where environmental risks are negligible and the site is fully remediated after the exploration phase is completed, may there be a limited role for evaporation dams. The circumstances for this should be regularly reviewed, for example as CSG extraction technology progresses and alternative management options become feasible. Future Government Actions As a policy relevant to a wide range of Government functions it is important that its principles guide the implementation of the suite of regulation that applies to the management of CSG water. AgForce are supportive of a review of the legislation that facilitates the management of CSG water as a resource, while ensuring that this does not reduce the environmental protections around dealing with untreated CSG water as a waste. A review may also help to reduce any duplication across legislation and Departmental administration while providing greater clarity and transparency to the community about the management of CSG associated water. AgForce recommends the development of a water accounting framework that would assist in ensuring that a sustainable regional water balance could be achieved, given variable production volumes from tenures across time. As the policy identifies this would be particularly applicable for reinjection and substitution systems and in relation to proactive make good and environmental remediation arrangements. Such an accounting framework would also facilitate improved cumulative water management across time and tenures and assist CSG companies in demonstrating their make good obligations are capable of being met for the period after water production has ceased. Where reinjection into non-source aquifers occurs and companies seek to retain an interest in that reinjected water, consideration must be given by the Government as to how this may impact on the rights of existing users of water from the receiving aquifer. Purpose of the policy AgForce are generally supportive of the strategic use of CSG water by firstly using it as a resource for preventing and minimising impacts on existing users and the environment and secondly looking to maximise the beneficial and productive use of treated water. The policy should seek to minimise unsustainable or wasteful disposal of CSG water. This is consistent with the LNP policy 3 towards the 3 accessed 14 November 2012 AgForce Queensland Draft CSG Management Policy submission - 4 -

5 protection of existing underground water user s rights to an undiminished quantity and quality of water supply and the absolute protection of the Great Artesian Basin as a matter of highest priority given its great importance to Queensland landholders and rural communities. Robust and effective stakeholder consultation Given the importance of groundwater resources to current and future rural communities, in any consideration of CSG water use planning it is vital that there be transparent and effective regional stakeholder and local landowner consultation in the ongoing process of making decisions about how CSG associated water is managed and used. The ultimate determination as to the correct balance of environmental, social and economic outcomes resides with the Government. AgForce does not want to see water use decisions being made in isolation by the CSG proponents. Indeed, CSG proponents already have community reference groups in relation to this issue which is a positive development. Such a process, if effective in achieving well-informed and agreed support for a suite of options, could largely negate the need for an exhaustive examination by proponents of every beneficial use option before achieving DEHP approvals of a water management plan. AgForce recommends that a consultation process should be developed by DEHP and included in the Government s draft policy and clearly define how relevant regional stakeholders and local landowners will be identified and their role in the process of examining water use options to ensure stakeholder views are appropriately included on an ongoing basis into water management plans. Greater community support for CSG proponent activity will be secured if stakeholders have some influence in local and regional CSG water use and can understand the feasibility or otherwise of various water use options in that locality. Prioritisation hierarchy for managing and using CSG water Priority 1: Offset any negative impacts AgForce are supportive of the proposed tiered approach to the examination of the use of CSG associated water whereby the strategic use of the water must firstly address any negative impacts on existing water users and the environment before looking to beneficial use options. AgForce currently does not have sufficient confidence that the CSG industry can make good over the longer term to ensure multi-generational access to an ongoing supply of a quantity and quality of water in line with what current groundwater resources have provided and what properties have been capitalised and developed on. CSG proponents must be able to plan for and assure other stakeholders that they have the capability to address these concerns. AgForce understands that the provisions around make good for impacts sit within the Water Act 2000 and that the process for addressing environmental impacts from CSG activities sits within the EP Act. Where the reassurance the rural community needs about the management of long-term impacts can be secured, there may be potential for the policy to achieve its first priority make good focus by reference to these legislated processes and for companies to provide evidence to DEHP for its assessment that these priority outcomes have been appropriately planned for and effectively met. This evidence could be provided as required from other relevant Government Departments in order to minimise administrative duplication and analysis requirements. In distinction to make good at the bore head, DEHP should continue to have the lead oversight role in ensuring that actual AgForce Queensland Draft CSG Management Policy submission - 5 -

6 and potential environmental impacts are managed for effectively and that CSG water is available as required for that purpose. However, such community confidence in current make good provisions within an adaptive management framework does not currently exist and achieving this assurance will require greater community and landowner engagement and education by the Government and proponents around the make good provisions so that stakeholders can confidently move their attention to other beneficial use applications for the water. Until that confidence is achieved AgForce are supportive of a rigorous application of the proposed prioritisation tiers within the draft policy and a riskmanagement based approach to CSG associated water. Priority 2: Maximising the productive use of water for beneficial uses AgForce accepts that the best design and selection of beneficial use options will vary between individual tenures, as a result of the different range of feasible options available and varying stakeholder agreement as to desirable water use. As a result we are not supportive of a prescriptive hierarchy within the beneficial use priority tier beyond protecting the existing security and reliability of pre-existing water rights, allocations and entitlements. CSG companies exhaustively examining all potential options on a list will be costly and, if done in isolation, will be unlikely to find the optimum balance of water use options that delivers the outcomes of greatest benefit to the local community and other water users. As a result, it is important that CSG companies undertake an effective engagement process with regional stakeholders and local landowners. As the representative body for broadacre primary producers, AgForce would like to see opportunities for food and natural fibre production by existing or new users from treated CSG water maximised. In planning for how beneficial use is undertaken the final complement of uses must demonstrate an acceptable balance between the social, economic and environmental outcomes achieved, such that one outcome is not realised at the significant detriment of another. For example, using CSG water for dust suppression may achieve a least cost outcome and environmental benefit but does not maximise the potential economic or social values. AgForce considers that beneficial use of treated CSG water should occur in the areas of extraction, where possible, in order to achieve a water balance at a local and regional level that is sustainable in the long-term. All CSG associated water must be treated at the CSG operators cost to the appropriate quality for its intended use and to avoid negative environmental impacts, including during storage in holding ponds. AgForce are sceptical that release to the environment in a way that improves local environmental values is an appropriate use for treated CSG water, particularly given the relatively short term nature of CSG water availability. In such cases, the local environmental value improvement resulting from any such release should be independently scientifically assessed and reported. AgForce agrees that treating and disposing to the environment of CSG associated water in a way that protects the environmental values after beneficial use options are found to be not viable should be the last option considered and support this as the lowest priority tier in the draft policy. We agree that this should rarely be appropriate due to the value of water as a resource. Prioritisation hierarchy for managing saline waste Given the potential for environmental harm, it is important that saline waste use and disposal is addressed in the policy as part of a comprehensive approach to the management of CSG associated water. AgForce s preferred option for salt and brine recovery is beneficial use for commercial purposes, which is the production of useable and/or saleable products, as identified in the draft AgForce Queensland Draft CSG Management Policy submission - 6 -

7 policy. Remaining brine waste must be disposed of using best-practice, environmentally-sustainable methods. This could include reinjection of brine waste where robust risk assessment shows that this will not result in potential environmental harm or any damage to aquifers. Alternatively, greater control and hence lower risk to the environment may be delivered through hazardous waste disposal methodologies at or near ground level. These should not disadvantage other land users. Strategically managing CSG water Management strategies for plan variations Within their strategic water management plan the CSG company should indicate the range of water production and quality volumes that can be managed effectively under their plan, while still ensuring the capacity to deliver remediation of environmental and existing water user impacts. AgForce are supportive of a proactive, risk management approach and the regular review of Water Management Plans in light of the inherent uncertainty in predicted water production volumes and the potential for impact on the environment and other water users. Stakeholders should be informed of the reasons for any change and be involved in this review process where water management and use plans will be changed significantly. Exceptional discharges to streams AgForce supports the requirement that the CSG proponent has to proactively demonstrate that their water management plan has the capacity to manage an exceptional circumstances rainfall event. Treated water discharge into passing natural water flows must occur in accordance with clearly defined, science-based conditions that relate to natural water quality and flow, treated CSG water quality and discharge rates, and suitable start and cease release trigger points 4 to ensure the environmental values and interests of downstream stakeholders will not be adversely impacted. Disposal of untreated CSG water to surface waters is not supported as a management option, even in unusual weather events, unless a greater environmental hazard from uncontrolled release can be demonstrated to exist. In such a case, release must require approvals from DEHP and be managed to minimise the risk of harm to the environment and other stakeholders in the area. Cumulative impacts from multiple release sites must be managed. Glossary There appear to be some definitions that are apparently not included in the current version of the draft policy and these should be removed. The CSG Evaporation dam definition needs clarification. AgForce does not agree that a dam where evaporation occurs up to the same amount of water as being actively treated should not be classified as an evaporation dam. This may not be the intent of this wording and if so it should be reworded for clarity. For example, on page 4 of the current 2010 CSG water management policy a figure of less than 15% evaporation is implied within a 30-day period. The principle of maximising water available for beneficial uses should be applied. 4 accessed 14 November 2012 AgForce Queensland Draft CSG Management Policy submission - 7 -

8 Conclusion As a fundamental principle, AgForce recognise the intrinsic value as a resource of the water associated with CSG extraction, not as a waste product. Planning for the use of treated CSG water must demonstrate a balance between the social, economic and environmental outcomes such that one outcome is not realised at the significant detriment of another. Effective stakeholder consultation is vital in finding this balance and their views must be effectively considered when developing water management plans. AgForce wants to see an appropriate risk-based process applied to the management of CSG associated water. As part of this we support a policy approach that has as priority considerations the offsetting of environmental impacts and delivering on any make good provisions within a strategic and comprehensive approach to water use. This will assist in providing confidence to the community that they will have ongoing access to an effective supply of a quantity and quality of underground water for generations to come. Following this beneficial uses should be maximised and wastes requiring disposal minimised as per the priority tiers within the draft policy. AgForce has been involved in recent discussions between CSG proponents and agricultural stakeholder groups about the management and use of CSG water. This has been a constructive exchange to date and we recommend the Government to hold a joint meeting with these two key sets of stakeholders before finalising their CSG water management policy. It is hoped that a range of policy issues can continue to be worked through in this forum and more efficient solutions developed that will find greater acceptance within the community in the longer term. Appendix List of stakeholder groups currently in discussion (in alphabetical order): AgForce Queensland Arrow Energy Australian Lot Feeders Association Australian Petroleum Production and Exploration Association Basin Sustainability Alliance Central Downs Irrigators Cotton Australia Origin Queensland Farmers Federation QGC Santos. Submission ends AgForce Queensland Draft CSG Management Policy submission - 8 -

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