Scoping Study Mining and Coal Seam Gas Development

Transcription

1 Scoping Study Mining and Coal Seam Gas Development October 2011 Regional Development Australia: Darling Downs and South West Queensland Parsons Brinckerhoff Australia Pty Limited ABN Level 4, Northbank Plaza 69 Ann Street Brisbane QLD 4000 GPO Box 2907 Brisbane QLD 4001 Australia Telephone Facsimile brisbane@pb.com.au A-RTP001-A:cw Certified to ISO 9001, ISO 14001, AS/NZS 4801 A+ GRI Rating: Sustainability Report 2009

2 Contents Page number Glossary iii 1. Introduction Overview Purpose Methodology Research process Limitations of research 2 2. Context Description of region Key issues associated with mining and CSG 4 3. Addressing resource industry impact: New regulatory actions in Queensland Surat Basin Future Directions Strategy Surat Basin Regional Planning Framework Strategic Cropping Land policy framework Coal Seam Gas Water Management Policy Land Access Policy framework Sustainable Resource Communities Policy 7 4. Approval process for resource tenure and authorities Mining lease approval process Exploration permit Mineral development licence Mining lease Environmental Authority under the Environmental Protection Act Petroleum licence approval process Authority to prospect Petroleum lease Environmental impact statement process General EIS guidelines Specific impacts Relevance to granting of tenure Summary of key matters Resource allocation and social infrastructure 27 PARSONS BRINCKERHOFF A-RTP001-A:cw Page i

3 5.1 Royalty payments and tax revenues Royalty payments Taxation payments Resource generation Resource allocation Corporate social investment Legislative requirements Case studies Western Australia Canada Summary Conclusion Reference list 39 List of tables Table 4.1 Details of the application requirements: mining lease 13 Table 5.1 Summary of royalty revenue ($M) 28 Table 7.1 Matters to be addressed by an initial work program as part of an application for an Authority to Prospect C-2 Table 7.2 Guide to content requirements for typical initial development plans lodged under the Petroleum and Gas (Production and Safety) Act 2004 D-2 Table 7.3 Guide to content requirements for a CSG statement lodged under the Petroleum and Gas (Production and Safety) Act 2004 E-2 List of figures Figure 2.1 RDA Darling Downs and Southwest region 3 Figure 4.1 Mining Lease Approval Flowchart 9 Figure 4.2 Petroleum licence approval flowchart 18 Figure 5.1 Queensland royalties by local government area ( ) 30 Figure 5.2 Queensland royalties by local government area ( ) 31 Appendices Appendix A Extent of petroleum licences and mining leases - Darling Downs and South West Queensland region Appendix B Lock the Gate Alliance member groups Appendix C Matters to be addressed by an initial work program as part of an application for an Authority to Prospect Appendix D Guide to content requirements for typical initial development plans Appendix E Guide to content requirements for a CSG statement Appendix F Regional Budget Statement Darling Downs and West Moreton region PARSONS BRINCKERHOFF A-RTP001-A:cw Page ii

4 Glossary Term Description ATP Authority to Prospect BSA Basin Sustainability Alliance CPN Certificate of Public Notice CSG Coal Seam Gas DEEDI Department of Employment, Economic Development and Innovation DERM Department of Environment and Resource Management DNRM Department of Natural resources and Minerals EA Environmental Authority EIS Environmental Impact Statement EM Plan Environmental Management Plan EP Exploration Permit EPBC Act Environment Protection and Biodiversity Conservation Act 1999 EPC Exploration Permit for Coal EPM Exploration Permit for Minerals GAB Great Artesian Basin HSEC Health, Safety, Environment and Community IDP Initial Development Plan LNG Liquefied Natural Gas MDL Mineral Development Licence ML Mineral Lease MRA Mineral Resources Act 1989 P&G Act Petroleum and Gas (Production and Safety) Act 2004 PL Petroleum Lease RDA Regional Development Authority SBFDS Surat Basin Future Directions Statement SBRPF Surat Basin Regional Planning Framework SCL Strategic Cropping Land SDPWO Act State Development and Public Works Organisation Act 1971 SIMP Social Impact Management Plan SPP State Planning Policy TOR Terms of Reference PARSONS BRINCKERHOFF A-RTP001-A:cw Page iii

5 1. Introduction 1.1 Overview Regional Development Australia (RDA) is a partnership between the Australian, State, Territory and Local Governments to develop and strengthen the regional communities of Australia. The initiative plays a pivotal role in ensuring the long-term sustainability of Australia's regions. A key focus is on the economic, social and environmental issues that affect local communities. The Regional Development Australia Darling Downs and South West Committee (RDA-DD and SW) is tasked to consult with communities, business, non-profit organisations and all levels of government to articulate local priorities, identify and align resources, engage stakeholders and promote solutions that support the growth and development of our regional community. The Queensland Government has initiated a series of actions to improve the sustainability and quality of life in Queensland's resource communities. Key actions that seek to address social impacts associated with mining and coal seam gas (CSG) development in Queensland's resource communities include: development of the Surat Basin Future Directions Strategy to provide a strategic framework to shape future planning and growth in the Surat Basin region to 2030 the release of a draft State Planning Policy (SPP) to protect Queensland s strategic cropping land (SCL) and development of a CSG Water Management Policy introducing guidelines and amendments to legislation to consider landowner rights, consultation and communication with landowners and residents introduction of the Sustainable Resource Communities Policy and associated Social Impact Management Plans (SIMP) to strengthen social impact assessment processes in proposed resource developments. 1.2 Purpose The following study has been prepared by Parsons Brinckerhoff on behalf of the RDA-DD and SW Committee. It examines the regulatory and planning frameworks described above to inform resource development decision making processes at the State and Commonwealth level, particularly where competing land use activities of agriculture and mining exist. This purpose will be explored through two parts: 1. the identification of key issues considered in the granting of exploration and development licences for coal and CSG over new areas 2. exploration of the current processes used to fund and provide regional social infrastructure requirements, including the allocation of royalties by government and voluntary funding contributions by current and future private development proponents. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 1

6 Recommendations to address current gaps identified by this study are presented. In doing so, the paper draws attention to the following areas of policy concern: the limited statutory opportunity for land owners and stakeholder groups to comment on mining and CSG exploration licenses before the approval is issued the need for greater consideration of agricultural impacts during project assessment the current processes used to inform the allocation of royalties and voluntary funding contributions made by mining and gas companies the potential for a targeted regional development funding model to be developed and implemented to complement existing State and Local government resource community strategies. 1.3 Methodology Research process This study was undertaken using a mixed method approach. In total, the research for this study ran for a period of four weeks. The initial stage of research involved a policy and legislation document review, examination of relevant media reports, analysis of secondary statistical data reports and an Australian and international literature review. Primary data was then collected through semi-structured interviews with relevant Parsons Brinckerhoff personnel who hold long standing experience in resource industries. This latter information was also used to substantiate the research findings and provide an informed understanding of its context Limitations of research Originally, the research was designed to be supported through qualitative data collection drawn from a multiple of interviewees using semi-structured interviews. Time constraints and access to resources however served to limit the sample size involved in the study. Primarily, difficulty in accessing mining and petroleum company personnel, who had had specific involvement within the DD-SW region, limited the diversity of opinions available to be included in the discussion. Another factor exacerbating this difficulty was the reluctance of identified mining companies to participate because they felt the narrow focus of the research areas would single out the operations of the company and require the sharing of information which was essentially commercial in confidence. This limitation to data collection was overcome by the supplementary use of secondary data documents. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 2

7 Scoping Study Mining and d Coal Seam Gas Development 2. Context Description of region The Darling Downs and Southwest Queensland region iss located at the southwest corner of Queensland bordering New South Wales, Northern Territory and South Australia. The region covers a total area of 397,240.8 square kilometres (22.9%% of Queensland s total area). The region comprises 10 local government shires and regions of Balonne, Bulloo, Goondiwindi, Maranoa, Murweh, Paroo, Quilpie, Southern Downs, Toowoomba and Western Downs (Figure 1). Source: (RDA-DD & SW Inc 2011) Figure 2.1 RDA Darling Downs and Southwest region The region is largely known for the agricultural production of beef, cotton and grain delivered to the domestic and international markets. The region also includes the Surat Basin, which is a major 8,000 square kilometress CSG deposit, the largest in Queensland stretching over the Central West region and the Darling Downs and Southwest region. The total value of agricultural production in the Surat Basin for was $ billion (for Toowoomba, Western Downs and Maranoa Regional Council areas). Energy resource depositss in the region have beenn estimated at over 6 billion tonnes off thermal coal resources and petajoules of CSG reserves as at 30 June At present, there are several coal and CSG projects in the Darling Downs and South West Queensland region with applications to significantly expand both industries. Mapping demonstrating the extent of petroleum licences and mining leases over the Darling Downs and South West Queensland region is provided in Appendix A. PARSONSS BRINCKERHOFF A-RTP001-A:cw Page 3

8 2.1.2 Key issues associated with mining and CSG The scale and growth of the coal mining and CSG in the Surat Basin has created growing public concern over the amenity, health, environmental and land use impacts of the energy resource industries, particularly that of CSG. A representative group the Basin Sustainability Alliance (BSA) - was established in early 2010 to represent landholder, community groups and individuals concerns in relation to the CSG industry across Queensland (BSA 2010). Within the Darling Downs and South West Queensland region specifically, there are a number of community action groups that have also emerged which, under the Lock the Gate Alliance, campaign against the social and environmental impacts of open cut coal mining (Appendix B). In March 2011, the BSA released the document, Not at any cost: A blueprint for sustainable CSG operations, as a means to articulate the key concerns of its members to State and federal Government. The key concerns are as follows (BSA 2011): over exploitation of water in the Great Artesian Basin (GAB) and impacts on the sub artesian aquifers, including water depletion and contamination land impacts contamination, loss of productivity, loss of amenity and reduction in land value land access and compensation unfair rights of entry and compensation, inadequate make good arrangements for groundwater impacts and uncertainty about the extent of future CSG developments social impacts uncertainty, increased costs of living to sections of the community and increased demand on community resources such as roads and health services. In the Darling Downs and South West Queensland region, recent State and Federal Government approval for several major CSG projects has manifested in dispute between mining and food production farming in areas such as Cecil Plains, where over 500 farmers attended an anti-mining rally in May Subsequent events have borne out of this, including the protest by several rural action groups at the Roma Community Cabinet in July 2010, the rally of farmers and environmentalists outside Parliament House (Brisbane) in August 2010 and on 4 August 2011, an anti-mining rally attended by over 600 people in Oakey. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 4

9 3. Addressing resource industry impact: New regulatory actions in Queensland The Queensland Government has introduced a suite of new initiatives designed to address key issues around land use conflicts in regional areas, particularly where there is an interface between the coal mining and CSG industries and agricultural industries. Most of the new initiatives are staged over time and include a number of immediate transitional arrangements in response to issues occurring now. The following is an overview of the key major mechanisms introduced to address the opportunities and challenges arising from rapid growth of the mining and extraction industry in the Surat Basin. The extent to which these initiatives apply to respective tenures or authorities granted under the Mineral Resources Act 1989 (MRA) and the Petroleum and Gas (Production and Safety) Act 2004 (P&G Act) is examined in Section 4 of this report. 3.1 Surat Basin Future Directions Strategy The Surat Basin Future Directions Statement (SBFDS) was launched by the Queensland Government on 4 March The Statement sets out the planning framework to guide sustainable growth in the Surat Basin region to It identifies the major issues facing the region and provides a series of headline initiatives to address those issues. It also establishes a mechanism to coordinate the work of the Queensland Government and Surat Basin stakeholders (DEEDI 2010). The final SBFDS report provides detail on implementation of the headline initiatives and other activities from the Statement. Key initiatives relevant to addressing land use conflicts include (DEEDI 2011): developing a regional planning framework covering the Surat Basin region, including a regional vision, strategic directions and regional land use patterns continuing to develop and implement the land access policy framework to address land access issues between agricultural and resource sector stakeholders developing a policy and planning framework to manage strategic cropping land to strike a balance between the competing land use interests of agriculture and mining developing guidelines to improve the consistency and quality of social impact management plans. 3.2 Surat Basin Regional Planning Framework The Surat Basin Regional Planning Framework (SBRPF) is a regional planning instrument which, developed as an initiative of the SBFDS, articulates the state s interests in developing a regional planning framework for the Surat Basin region (DEEDI 2011b). The SBRPF includes a regional vision, strategic directions and regional land use patterns. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 5

10 While not a statutory instrument, the SBRPF is to inform the review and preparation of existing and future statutory regional plans and other planning policy. It is also to be used by the Queensland Government in the review of local and regional issues that effect, or may in the future effect, the local government area and for the assessment of environmental impact statements for major projects in the area (DEEDI 2011b). 3.3 Strategic Cropping Land policy framework In August 2010, the State Government released a policy framework for protecting strategic cropping land (SCL). The SCL policy will be implemented through (DEEDI 2011): 1. a new Act specifically for SCL resources 2. a new State Planning Policy under the Sustainable Planning Act amendments to existing resources legislation. Under transitional arrangements, from 31 May 2011, resource development projects that have not met certain milestones in the assessment process will be subject to the full extent of the new SCL legislation. 3.4 Coal Seam Gas Water Management Policy The CSG Water Management Policy was released in June 2010 and forms governments key initiative relating to the management of CSG water. The Policy aims to prevent salt produced through CSG activities from contaminating the environment and encourages the beneficial use of treated CSG water (DERM 2010). The CSG Water Management Policy introduces amendments to the Environmental Protection Act 1994 and includes: guidelines for performance standards an adaptive approvals regime, adopted in July The CSG Water Management Policy deals with: use of CSG water evaporation dams design standards for CSG water aggregation and brine dams transitional arrangements for existing dams management of saline effluent and solid salt wastes from water treatment and evaporation processes. CSG water extraction remains authorised under the P&G Act or the Petroleum Act PARSONS BRINCKERHOFF A-RTP001-A:cw Page 6

11 3.5 Land Access Policy framework The Surat Basin Future Directions Statement identifies the need for a Land Access Policy Framework to address land access issues between agricultural and resource sectors stakeholders (DEEDI 2011c). The Land Access Policy Framework came into effect on the 29 October The Framework sets new land access and compensation laws through reforms to the MRA and P&G Act 3.6 Sustainable Resource Communities Policy The Sustainable Resource Communities Policy (2008) establishes Social Impact Management Plans (SIMP), which are a legislative mechanism to strengthen the identification and appraisal of the social impacts of proposed resource developments (DTRDI 2008). Previously, the findings of social impact assessment have been reported in the Environmental Impact Statement (EIS) for a project however, the DEEDI now requires that project proponents prepare a separate SIMP for all new or expanded major resource development projects. The purpose of the SIMP is to outline how the issues identified in the impact assessment process will be addressed and by whom throughout the life of the project (DTRDI 2008). PARSONS BRINCKERHOFF A-RTP001-A:cw Page 7

12 4. Approval process for resource tenure and authorities The following section provides overview of the legislative procedures for the grant of exploration, development and production tenure in relation to mineral (coal) and CSG resources in Queensland, Australia. Key issues considered during the approvals process for the differing tenures are highlighted throughout this section and summarised in Section 4.4, with particular focus on the significance given to landholder access rights, the protection of strategic cropping land and the assessment of proposed impacts from resource exploration and development activities on landholders, business and agricultural land use activities. Tenure types explored include; Exploration Permits (EP), Mineral Development Licences (MDL), Mining Leases (ML), Authority to Prospect (ATP) and Petroleum Leases (PL). An understanding of the EIS process and the grant of an environmental authority (EA) is further outlined. Two flow chart diagrams summarising the stages involved in the granting of tenure for development associated with both coal and CSG is provided for reference purposes (Figure 2 and Figure 3). This section should be read in conjunction with the MRA, P&G Act and Petroleum Act Mining lease approval process In Queensland, all minerals are the property of the State (Section 8 of the MRA). In light of this ownership, a person must receive authorisation by the State to enter upon land and extract the minerals where a mineral resource exists. The MRA provides a system of mining tenure, separate to that of land tenure, to facilitate the exploration and extraction of minerals in Queensland. Under the MRA, a mining tenement is a permit, claim, licence or lease that may be granted by a Mining Registrar, the Minister for Mines and Energy or by the Governor in Council. There are three main coal tenements that are granted under the MRA. These are: an Exploration Permit (EP) a Mineral Development Licence (MDL) a Mining Lease (ML). The interaction of this tenure approvals process is summarised in Figure 4.1. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 8

13 Figure 4.1 Mining Lease Approval Flowchart PARSONS BRINCKERHOFF A-RTP001-A:cw Page 9

14 4.1.1 Exploration permit An EP is a tenure issued principally for the purpose of exploration. An EP allows the holder to undertake broad scale activities to determine the existence, quality and quantity of minerals in the area of the EP (DEEDI 2011d) Requirements for an application for exploration permit Any eligible person, defined under the MRA as an adult, a company, a local government authority, an educational institution and others, is able to apply for an EP. In lodging an EP application, the applicant must specify the mineral or minerals for which the EP is sought. This will determine whether an EPC (Exploration Permit for Coal) or Exploration Permit for Minerals (EPM) is awarded. An application must be accompanied by a statement which addresses: the program of work proposed to be carried out under the authority of the EP permit (if granted) the estimated human, technical and financial resources proposed to be committed to exploration work during each year of the EP (if granted) the exploration data captured by the applicant prior to the application. In considering whether to grant the EP, the MRA states that the Minister must only consider the extent of the proposed activities and when and where the applicant proposes to carry out exploration activities in the proposed area. The MRA does not contain requirements to ensure that SCL and other matters of State interest (as identified by the Surat Basin Future Directions Strategy) are a relevant consideration for the Minister in assessing EPC tenements Entry notice for preliminary activities Schedule 1, Division 1 of the MRA brings into effect the entry notice for preliminary activities as defined by the Land Access Policy Framework. Under Section 5, the EP holder must not enter private land in an exploration tenement s area to conduct authorised activities unless a written notice of the entry has been given to each owner and occupier of the land. The entry notice must be given generally at least 10 business days before the entry. The written notice of entry must state (Section 6 of the MRA): the land proposed to be entered the period during which the land will be entered (the entry period) the activities proposed to be carried out on the land when and where the activities are proposed to be carried out. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 10

15 The first entry notice from the exploration tenement holder to a particular owner or occupier must include a copy of the: exploration tenement land access code (e.g. the code of conduct for activities under the EP) relevant EA documentation. In the event a condition of an exploration permit has not been complied with, the permit holder may be required to take the steps necessary to stop the noncompliance and repair damage to the landowner Compensation to eligible claimants Schedule 1, Part 3 of the MRA implements the Land Access Policy Framework s requirement that a Conduct and Compensation agreement is negotiated prior to an EP holder enters a landholder's property to undertake advanced exploration activities. Under section 13 of the MRA, the holder of an EP is liable to compensate the owner or occupier of private land or public land for any cost, damage or loss arising from the carrying out of activities under the exploration tenement on the land. In relation to the owner s land, this compensatable effect includes: deprivation of possession of its surface diminution of its value diminution of the use made (or that may be made) of the land severance of any part of the land from other parts of the land any accounting, legal or valuation costs the claimant incurs as a result. The compensation that is payable may be agreed between the EP holder and the landowner. Failing an agreement, the compensation amount may be determined by the Queensland Land and Resources Tribunal. This reflects the graduated negotiation and dispute resolution processed introduced set out in the Land Access Policy Framework which allows parties to access independent assistance to resolve disputes Mineral development licence A Mineral Development Licence (MDL) provides greater security of tenure for its holder than the existence of an EP. It authorises more specific activities including geoscientific programs (e.g. drilling, seismic surveys), mining feasibility studies, metallurgical testing, as well as environmental, engineering and design studies to evaluate the development potential of the resource (DEEDI 2011d). A MDL does not authorise its holder to undertake commercial production of minerals. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 11

16 Requirements for an Mineral Development Licence application A MDL may only be applied for by an eligible person over land which, at the time of the application for the grant is made, is covered by an EP or other MDL (where the holder is the applicant). MDLs are granted for a period of up to five years (Section 192 of the MRA). Key details to be addressed in an MDL application include: a description of the parcels of land which are the subject of the application and specify the current use of the land and the names and addresses of the owner or owners of the land and of land which is to be used as access thereto the identification of the boundaries of the land applied for specification of the mineral or minerals in respect of which the MDL is sought reasons why the MDL should be granted in respect of the area and shape of the land described in the application. Details of the proposed work must also be submitted with the application. This includes a: detailed description, including technical particulars, of the mineral occurrence for which the mineral development licence is sought together with any necessary supporting documents description of the activities proposed to be carried out under the mineral development licence statement of the estimated human, technical and financial resources proposed to be committed to authorised activities for the MDL during each year of the licence. In deciding whether to grant the MDL, the Minister will consider whether a significant mineral occurrence of possible economic potential exists on or in the land, and whether the applicant has the financial and technical capability to comply with the conditions of the MDL (Section 186(6) of the MRA). The MRA does not contain requirements to ensure that Strategic Cropping Land and other matters of State interest (as identified by the Surat Basin Future Directions Strategy) are a relevant consideration for the Minister in assessing MDL tenements. As a MDL authorises a greater intensity of exploration activities to be undertaken and involves consideration to the economic merits of potential development, it is considered that the process assesses the possible impacts of mining appropriately in terms of land or property matters Obligation to consult with owners and occupiers A MDL holder must consult, or use reasonable endeavour to consult, with each owner and occupier of private or public land on which the authorised activities for the licence are proposed to be carried out. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 12

17 Section 193A of the MRA states the key issues to be addressed by consultation are to include: access the carrying out of authorised activities for the MDL (e.g. crossing access land for the licence) to the extent they relate to the owners and occupiers the MDL holder s compensation liability to the owners or occupiers. Like the holder of an EP, the entry notice for preliminary activities, as defined by the Land Access Policy Framework, are applicable. That is, a MDL holder is required to give landowners written notice of entry before entering upon the land for the first time under the MDL (Section 211 of the MRA) Compensation to eligible claimants Similar to the holder of an EP, MDL holders must also pay compensation for any damage, injury suffered or loss incurred by the landowner (Section 191 of the MRA). There is no variation between the compensatable effect criteria for a MDL related compensation agreement Mining lease A ML is granted for mining operations. It entitles the holder the right to enter upon land to extract specified minerals for commercial use and carry out activities associated with mining, or promoting the activity of mining (DEEDI 2011d). There is no maximum term limit to which the length of the lease is restricted. Rather, the term is determined in accordance with the amount of mineral reserves identified and the projected mine life Application requirements for grant of mining lease In recognising the significant rights granted to a ML holder in addition to the potential impacts (both of a positive and negative nature) on the local area, the application process for a ML is onerous on the applicant. Key details to be provided and satisfied by an applicant for a ML are presented in Table 4.1. Table 4.1 Reference in Act Details of the application requirements: mining lease Key issues to be addressed in application Section 245 Application for grant of mining (Mineral Resources Act 1989) (1) An application for the grant of a mining lease shall: (d) describe all parcels of land the whole or part of which are the subject of the application specify the current use of the land and whether it is subject to erosion control works (specify) the names and addresses of the owner or owners of the land and of land which is to be used as access thereto PARSONS BRINCKERHOFF A-RTP001-A:cw Page 13

18 Reference in Act Key issues to be addressed in application (e) identify in the prescribed manner the boundaries of the land applied for (f) specify the purpose for which that area is to be used (i) give reasons why the mining lease should be granted in respect of the area and shape of the land described in the application (k) identify the mineral or minerals or purpose in respect of which the mining lease is sought (l) nominate the term of the mining lease sought and give reasons (o)(iii) a statement, acceptable to the mining register: (A) outline the mining program proposed outline its method of operation, and provide an indication of when operations are expected to start or, (if a mining program is not proposed), outline the use proposed for the land providing an indication of when the proposed use is to start (B) of infrastructure requirements necessary to enable the mining program to proceed, or additional activities to be carried on to work out the infrastructure requirements (C) specify the estimated human, technical and financial resources proposed to be committed to authorised activities for the mining lease during the term of the lease, if granted. Source: (MRA) Applications for mining tenements are made to DEEDI and are lodged with the Mining Registrar of the District in which the land is situated. Each application also includes an application for an EA. The Mining Registrar assesses applications for compliance with the MRA, and forwards the applications to the Department of Environment and Resource Management (DERM) for assessment under the Environmental Protection Act Grant of mining lease In considering an application, the Minister must take into account several issues including (Section 271 of the MRA): whether the area of land applied for is mineralised or the other purposes for which the lease is sought are appropriate whether there will be an acceptable level of development and utilisation of the mineral resources in the area applied for the application the type and location of the activities proposed to be carried out under the lease and their likely impact on the surface of the land whether the operations to be carried on under the authority of the proposed ML will conform with sound land use management whether there will be any adverse environmental impact caused by those operations and, if so, the extent thereof PARSONS BRINCKERHOFF A-RTP001-A:cw Page 14

19 the public right and interest, including whether any good reason has been shown for a refusal to grant the ML. These considerations extend beyond an examination of actual mine workings - which are typically the focus of EPC and MDL assessment and incorporate an assessment of risk to existing surface development. Under the MRA however, there is no reference to specific impacts required to be examined as explicit impact assessments and key concerns to be addressed are conditioned in the Terms of Reference (TOR) for an EIS Opportunity for public comment Section 252A of the MRA allows members of the public to make objections to an endorsed mining lease application. Once DERM has decided to issue an EA, the Mining Registrar issues a Certificate of Public Notice (CPN) which identifies the mining lease application and sets a period during which objections may be lodged. Affected landowners and the relevant Regional Council are notified directly, and the CPN is advertised in appropriate newspapers. An objector who lodges a properly made objection to an ML application will become a party to the LRT s hearings regarding whether to recommend the grant of the ML (Section 268 of the MRA). Upon hearing any objections to the grant of the ML, the LRT will make a recommendation to the Minister regarding whether to grant the ML (Section 269 MRA). However, if the assessment by DERM determines that an EIS is required, then the objection process will be delayed until the EIS process has been completed (see Section of this report). An EIS process provides an opportunity for at least two opportunities for public submissions. It is considered that the process for public comment on a project being assessed under the MRA provides sufficient opportunity for submissions as a result of the notification to those directly affected by the project and newspaper advertisements for the public. This process is similar to the requirements under other State legislation (i.e. Sustainable Planning Act 2009) Liability to compensate eligible claimants Schedule 1, Part 3 of the MRA implements the Land Access Policy Framework s requirement that a Conduct and Compensation agreement is negotiated prior to an EP holder enters a landholder's property to undertake advanced exploration activities. Prior to the grant of a ML, the applicant must either agree compensation with the owners of land in the area of the ML or apply to the LRT to determine compensation (Section 279 MRA). The criteria for is set out in Section 281 of the MRA. An owner of land is entitled to compensation where as a consequence of the grant of a mining lease, the following issues have occurred: deprivation of possession of the surface of land of the owner diminution of the value of the land of the owner or any improvements thereon diminution of the use made or which may be made of the land of the owner or any improvements thereon PARSONS BRINCKERHOFF A-RTP001-A:cw Page 15

20 severance of any part of the land from other parts thereof or from other land of the owner any surface rights of access all loss or expense that arises. The nature and structure of a compensation agreement is not prescribed in the legislation. A template to assist resource companies and landholders in compensation and land access negotiations is set out in the Standard Conduct and Compensation Agreement released in August 2010 by the State Government (DEEDI 2010e). The template outlines important terms to be developed and included in a contract by a resource company before it enters a landholder s property. The agreement covers; compensation arrangements, land access rules, dispute processes, apportioning of legal costs, expected conduct of company staff or agents and landholder obligations Environmental Authority under the Environmental Protection Act 1994 Environmental management and regulation of the mining industry in Queensland is administered by DERM through the provisions of the Environmental Protection Act 1994 (EP Act). The EP Act provides for the assessment, decision-making and the issuing of environmental authorities for mining activities and enforcement of the conditions of the authority. Environmentally relevant activities (ERAs) are defined in the EP Regulation as those activities that have the potential to impact negatively on the environment. An EA is required to carry out certain ERAs. Typically, mining projects will involve the following types of mining activities, as defined in Section 147 of the EP Act: mining under the MRA processing mined materials (i.e. coal) a number of activities directly associated with, or facilitating or supporting, the mining and processing activities (which, if they were not mining activities, would have been ERAs listed in the EP Regulation) rehabilitation/remediation actions taken to prevent environmental harm. An Environmental Management Plan (EMP) is required under Section 201 of the EP Act as part of the application for an EA (mining activities) process. Key criteria and issues to be demonstrated in an EMP include: performance criteria and objectives in relation to environmental and social impacts details of the proposed monitoring of the effectiveness of remedial measures against the agreed performance criteria PARSONS BRINCKERHOFF A-RTP001-A:cw Page 16

21 details of implementation responsibilities for environmental management. In deciding whether to grant or refuse an application for an EA, DERM must consider the Standard Criteria of the EP Act, which includes the information prepared as any applicable EIS, assessment or report (see Section 4.3 of this report). 4.2 Petroleum licence approval process All CSG development projects in Queensland are undertaken subject to and controlled by Authorities issued under the P&G Act. Projects involving CSG activities are also governed by provisions in the EP Act relating to Level 1 and Level 2 environmental activities. The P&G Act identifies the following two types of petroleum authorities: Authority to Prospect (ATP) used for exploration activities that involve Level 2 environmental activities undertaken under an approved Code of Environmental Management. Authorises the holder to carry out exploration and testing of petroleum reserves. Petroleum Lease (PL) used for the development and commercialisation of a proven gas field that usually has licenced Level 1 and 2 environmental activities and are controlled by EMPs. The interaction of this tenure approvals process is summarised in Figure Authority to prospect To explore for petroleum (oil, CSG, natural gas) in Queensland, an eligible company or individual must have been granted an Authority to Prospect (ATP) by the Minister for DEEDI. An application for an ATP is made in response to the Minister publishing a gazette notice, or a 'call for tenders', over an area of the State. An ATP tender application must be accompanied by a proposed initial work program for the period stated in the gazette notice. Section 48 of the P&G Act and Section 13 of the Petroleum and Gas (Production and Safety) Regulation 2004 set out the general requirements of an initial work program (DNRM 2009). General matters to be addressed by applicants in their proposed initial work program are detailed in Appendix C. These matters typically relate to the description of exploration operations, including the type of activities to be undertaken and the potential for petroleum discovery in the area. No specific criteria is listed which entails an assessment of potential impacts to existing surface development or environmental values as a result of exploration activities. The gazette notice may list additional special criteria to be addressed by the initial work program; however these generally relate to the nature and timing of activity/activities to be conducted under the ATP (DNRM 2009). In granting the ATP, the Minister must decide whether to approve the applicant s proposed initial work program. DEEDI is ultimately responsible however, for specifying the conditions under which exploration drilling and other investigative procedures are to be carried out. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 17

22 Figure 4.2 Petroleum licence approval flowchart PARSONS BRINCKERHOFF A-RTP001-A:cw Page 18

23 Landholder consultation Prior to undertaking exploration activities, an ATP holder must consult with each owner and occupier of private or public land on which the authorised activities are granted, as required by Section 74 of the P&G Act. In addition, Section 24A of the P&G Act provides for the making of the Land Access Code by regulation. The provision requires that all resource authority holders, regardless of which resource Act the authority is granted under, comply with a single Land Access Code. Released in November 2010, the Land Access Code provides best practice guidelines for communication between the holders of authorities and owners and occupiers of private land (DEEDI 2010b). Part 3 of the document imposes mandatory conditions concerning the conduct of authorised activities on private land on both petroleum authorities under the P&G Act and exploration permits and mineral development licences under the MRA. Under the Code, a resource authority must: give notice to a landholder ensure each person acting for the holder receives information and training for authorised activities that will be carried out by the person on a landholder s land use an existing access point, road or track to enter a landholder s land use a landholder s land in a way that minimises disturbance to people, livestock and property take all reasonable steps to ensure that, in carrying out authorised activities, the person does not spread the reproductive material of a declared pest after using a gate, return the gate to its original position unless advised otherwise by the landholder. Full specification of these conditions are provided in Part 3 Mandatory conditions for resource Authorities under the Land access Code (DEEDI 2010b, p.7) Entry to private lands Under Section 497 of the P&G Act, a person acting under the authority of an ATP must not enter private land unless each owner and occupier of the land has been given a notice of entry 10 business days before the proposed by the ATP holder enters the land (an entry notice ). The entry notice must provide details of: the land proposed to be entered the period of entry the activities proposed to be carried out on the land when and what activities are proposed to be carried out the contact details for the authority holder. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 19

24 The period during which the land can be entered cannot be longer than six months. If the entry notice is the first entry notice given to the owner or occupier, the authority holder must provide an information statement about the rights and obligations of holders, owners and occupiers relating to the entry of land under a petroleum authority. In some circumstances, an entry notice is not required to be given by the authority. Under Section 497 of the P&G Act, these include: where each owner and occupier of the land has agreed that an entry notice is not required ( waiver of entry notice ) when the entry is needed to preserve life or property because of a dangerous situation or emergency when a compensation agreement is in place Liability to compensation An ATP holder is liable to compensate each relevant owner or occupier of land or access land that is in the ATP, for any compensatable effect suffered due to authorised activities conducted under the authority of the ATP (Section 531, P&G Act 2004) Petroleum lease The granting of a PL gives its holder the right to explore for, test for production and produce petroleum within the area of the petroleum lease (Section 109 P&G Act 2004). Activities carried out under a petroleum lease are regulated by conditions attached to the petroleum lease and the associated EA issued under the EP Act (refer to Section ). Following creation of the Initial Development Plan (IDP), an application for a petroleum lease is able to be lodged to DEEDI and referral agencies, including DERM Initial development plan All PL applications to the Minister must be accompanied by a proposed 'initial development plan'. The development plan for a petroleum lease or proposed petroleum lease gives detailed information about the nature and extent of activities to be carried out under the relevant lease. The purpose of a development plan is to (DNRM 2009b): provide a better understanding of the nature and extent of the proposed development and production of the petroleum reserves from the lease provide a better understanding of the nature and extent of the proposed storage of petroleum or prescribed storage gas allow an assessment of the proposed development. Section 138 of the P&G Act sets out the general requirements of an initial development plan. An overview of these content requirements and the expected scope for typical initial development plans (petroleum lease) lodged under the P&G Act is set out in Appendix D. The requirements for petroleum lease IDPs are substantially more prescriptive than that set out for Authority to Prospect IDPs. These requirements generally relate to the description of PARSONS BRINCKERHOFF A-RTP001-A:cw Page 20

25 proposed drilling and associated activities, including the type, location and scope of activities to be undertaken in the lease area. No specific criteria is listed which entails an assessment of potential impacts to existing surface development or environmental values as a result of exploration activities Coal seam gas statement There are additional specific CSG provisions for proposed initial development plans. A CSG Statement is required to accompany a proposed petroleum lease application that overlaps the area of a coal or oil shale mining tenement (both exploration and production tenements) (DNRM 2009b). The principal objectives of the CSG statement are to enable the decision maker to determine: whether to grant a coal or oil shale mining lease the conditioning/provisions of any grant the acceptability of the development plan. Section 306 of the P&G Act sets out the issues required to be addressed in a CSG Statement. An overview of these issues is provided in Appendix E. The CSG Statement requires that the proponent assess the likely effect of proposed petroleum production on the future development of coal or oil shale resources from the land. Issues of timing of resource development are required to be discussed in terms of the technical and commercial feasibility of coordinated petroleum production and coal or oil shale mining from the land. Impacts to other matters as a result of the proposed activity (e.g. environmental values) are not required to be provided in the statement document Environmental Authority under the Environmental Protection Act 1994 Petroleum (including CSG and conventional oil and gas) is a Chapter 5A activity under the EP Act (Section 309A) and requires an EA to be issued prior to commencement of the activity. The type of EA (Level 1 or Level 2) to be applied for will be triggered by the type and level of activity proposed based on trigger thresholds set out in the EP Regulation: Chapter 5A activities stated in schedule 5, column 1 of the EP Regulation are Level 1 Chapter 5A activities and require an environmental authority. Level 2 Chapter 5A activities are considered to represent a low risk of causing serious environmental harm, and require either a code compliant EA 1 or a non-code compliant environmental authority. CSG production projects are considered as a Level 1 petroleum activities. After consideration of all project aspects by DME, an application for a petroleum licence is referred to and assessed by DERM, who sets the type of environmental authority. Petroleum tenure can only be granted after the relevant EA has been approved by DERM. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 21

26 Environmental management plan An application for Level 1 petroleum activities involving CSG exploration or production is required to be accompanied by an EMP under Section 310C of the EP Act. The purpose of the EMP is to propose environmental protection commitments to help DERM decide the conditions of the EA (DERM 2011). In accordance with the guideline, Preparing an environmental management plan for coal seam gas activities (DERM 2011, p.3), the EMP for CSG activities must describe 1 : all relevant petroleum activities the subject of the application the land on which the activities are to be carried out the environmental values likely to be affected by the activities the potential adverse and beneficial impacts of the activities on the environmental values. Further, the application must: state the environmental protection commitments the applicant proposes for the activities to protect or enhance the environmental values include a rehabilitation program for land proposed to be disturbed under each relevant resource authority state a proposed amount of financial assurance for the EA as part of the rehabilitation program contain a CSG water management plan (CWMP). A brief overview of the anticipated scope, nature and likelihood of relevant impacts of the proposed activities is required by an EMP. Greater focus is to be provided on the description of strategies proposed to mitigate or offset those impacts described in the EIS. The level of detail to be provided in the proposed strategies will reflect the scale and intensity of expected impacts. An EMP is required to address all relevant impacts. Where an EMP is provided as part of an EIS, the Coordinator General will typically set the structure and issues to be addressed, providing greater certainty that all key issues of significance to the public (e.g. impacts to groundwater, salinity and soil etc.) are mitigated. Based on the environmental protection commitments proposed in the EMP, DERM will prepare a draft EA for the petroleum project in consultation with the applicant. When the EA is granted, the EMP becomes the primary regulatory document for a Level 1 petroleum activity that DERM uses to assess environmental compliance of the project (DERM 2011) Public notification Under Section 310G of the EP Act, the applicant is required to publish an application notice in a newspaper circulating generally in the area where the relevant CSG production project 1 The content required in an EMP for a level 1 petroleum activity is detailed in Section 310D of the EP Act. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 22

27 (Chapter 5A activity) is proposed within two business days after the application date. The application notice must state: that anyone may make a submission to the administering authority about the application the submission period during which submissions may be made how to make a properly made submission. Under Section 310K of the EP Act, a person is able to make a submission to the administering authority about an application for approval of a Level 1 Petroleum Activity. Submissions must be made within eight business days after publication of the notice. The EP Act prescribes that a submission must: be in writing to the administering authority be signed by or for each person who made the submission state the name and address of each signatory be received on or before the last day of the submission period. Under Section 309J of the EP Act however, a submission cannot be made about any relevant Chapter 5A activity Landholder access As required for an ATP holder, a PL holder must consult with each owner and occupier of private or public land on which the authorised activities are granted prior to undertaking gas field development. The Land Access Code sets out the conditions for interactions with landowners and access arrangements and compensation agreements (refer to Section ). 4.3 Environmental impact statement process In considering an EA application for the authorisation of either a ML or PL, the DERM may decide that a project with the potential for high environmental impact or a high level of uncertainty to cause possible environmental impacts may require an EIS. Major projects can be required to undergo an EIS process preceding, and additional to, the draft EA stage. The EIS requirement may be made under either of the following Acts: Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) (Commonwealth), if the proposed Chapter 5A activities trigger a matter of national environmental significance State Development and Public Works Organisation Act 1971 (SDPWO Act) (Queensland), if the project is declared to be a significant project under Section 26 of that Act. The Coordinator-General s conditions, which are derived as an outcome of the EIS process under the SDPWO Act, become conditions of the EA (Chapter 5A activities) PARSONS BRINCKERHOFF A-RTP001-A:cw Page 23

28 In the case where an EIS has not been required for a project under the EP Act or another Act, the proponent may volunteer to prepare an EIS under Section 72 of the EP Act. The content and issues to be addressed by the proponent in an EIS is ultimately set by the Coordinator General in the TOR (Section 30 of the SDPWO Act). The TOR set out the requirements, both general and specific, that the proponent should address in preparing the EIS. In developing the draft TOR, the document is available for public and advisory agency comment. In finalising the finalising these TOR the must consider all properly made submissions. The EIS prepared by the proponent then must, for the whole project, address the terms of reference to the satisfaction of the Coordinator-General (Section 32 of the SDPWO Act) General EIS guidelines The objective of the EIS is to ensure that all potential environmental, social and economic impacts of the project are identified and assessed and, where possible, identify how any adverse impacts would be avoided or mitigated (DEEDI 2011f). At the beginning of the TOR (Part A), the Coordinator General sets out the General EIS Guidelines, which details information to be provided that is mandatory to all significant declared projects for which an EIS is required Specific impacts Specific types of relevant impacts requiring investigation are set out in Part B of the TOR. For example, in the case of a CSG project, the Coordinator General may request that the potential impacts of the project on agricultural productivity in the relevant area should be assessed. These TOR are not exhaustive and the EIS is required to address other issues or aspects that may emerge during the investigations and preparation of the EIS. Ultimately, it is the proponent s responsibility to identify all the relevant matters to be addressed and to ensure that adequate studies are undertaken and reported (DEEDI 2011f). The level of analysis and detail in the EIS will reflect the level of significance of the expected impacts on the environment Relevance to granting of tenure The EIS is an important factor in the Government s decision to either grant tenure or reject the application. The information presented in an EIS will influence the scope of recommendations to be attached to any approvals, environmental authorities, permits and tenures for a proposed major new or expanded mining and petroleum development. For example, under this system, the impacts of CSG water on aquifers and groundwater is covered by the standard requirement that a proponent assess the likely impact of the project on local and regional groundwater. An assessment of the associated waste water typically falls under water supply and management. This section has been the focus of much high level analysis in recent EIS documentation, with all recently approved CSG projects required to develop an Associated Water Management Plan as part of the EMP. These conditions reflect the impact of recently PARSONS BRINCKERHOFF A-RTP001-A:cw Page 24

29 enacted policy initiatives, including the former DIP Policy Queensland Coal Seam Gas Water Management Policy (now succeeded by DEEDI s CSG Water Management Policy ). In contrast, the identification and mitigation of land impacts is not contained in a single section. Rather, differing issues, such as contamination, loss of productivity, loss of amenity and reduction in land value, are identified and assessed throughout the EIS. Considerations relating to cropping land are typically assessed as part of the geology, soils, and economic impact components of an EIS with information presented according to the standards required in the Planning Guidelines: the Identification of Good Quality Agricultural Land (DPI & DHLGP 1993), and the State Planning Policy 1/92: Development and the Conservation of Agricultural Land (DHLGP 1993). There are often limited conditions for significant coal and petroleum projects to address other impacts to agriculture, such as impact to productivity and industry, beyond this scope. Legislative amendment is proposed to address this limitation. Under transitional arrangements, from 31 May 2011, resource development projects that have not met certain milestones in the EIS process will be required to address the full extent of new Strategic Cropping Land (SCL) legislation introduced by the Protecting Queensland s strategic cropping land: Draft State Planning Policy (DEEDI 2011g). The Policy prescribes the factors to be considered in other instruments, such as EIS and resources legislation, when assessing tenure applications on strategic cropping land. These amendments are proposed to include: establishing processes for consideration of strategic cropping land in decision-making requiring proponents to demonstrate how the development will avoid permanent alienation imposing conditions on activities to ensure they do not permanently alienate strategic cropping land resources or diminish the productivity of strategic cropping land resources. The introduction of these amendments is intended to provide a more consistent process for assessing land impacts associated with development on strategic cropping land in the EIS process (DEEDI 2011g). 4.4 Summary of key matters This section outlined key matters considered during the legislative approval process for the grant of exploration, development and production tenure in relation to mineral (coal) and CSG resources in Queensland. The information provided should be used to assist decision making in relation to the development of an improved regulatory framework for both industries. In particular, it should be considered where pursuing legislative review of the environmental authorities, permits and tenures approval process for mining and petroleum developments. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 25

30 Key matters drawn from this section are as follows: Recent changes to Queensland legislation have strengthened the landholder access regime to ensure that landholders rights are protected, while allowing for coal/gas exploration and production. Companies are required to comply with a Land Access Code that sets requirements in relation to communication, consultation and behaviour when entering private property. In particular, landholders must be provided with 10 days of notice of the relevant activities and compensation is to be agreed prior to significant activities being undertaken. There is limited scope for the examination of land impacts, particularly impacts to productive agricultural land and the associated economic, environmental and social implications, within the existing tenure approvals process. The granting of exploration licences for coal and CSG over new areas is based on the ability of the proponent to demonstrate the technical and commercial feasibility of petroleum production and coal mining from the land. There is scope to improve criteria and information requirements in the approval phase to ensure the early identification of issues at the exploration licence phase before moving to the planning approval and EIS phase. The exception to this finding is the identification of strategic cropping land (below). Consideration paid to strategic cropping land ahead of the granting of an EP will occur through a suite of initiatives set under the recent released policy framework, Protecting Queensland's strategic cropping land. The protection of SCL from development will occur through new SCL legislation, amendments to existing resources legislation and draft trigger mapping. Where previously the findings of the impact of a project on SCL have been reported in the EIS, the new legislation will require a separate assessment to be undertaken by applicants at the exploration licence phase in order to identify land use priorities early in planning approval process. The recently introduced CSG Water Management Policy provides a guideline for use of CSG water. The policy establishes defined environmental standards for the management of saline wastes during operations and relates to amendments to the EP Act. Issues surrounding CSG water are therefore primarily management focused and are addressed by proponents in the EIS process, specifically in the EMP. There are no criteria defined in the P&G Act which requires matters relating to CSG water to be identified prior to the PL approval phase. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 26

31 5. Resource allocation and social infrastructure Rapid expansion of the resource industry and accompanying population growth has placed significant pressure on social infrastructure existing in regional communities of the Surat Basin. Consequently, the RDA DD & SW Committee expresses concern that the benefits generated by mining and petroleum operations should be focused more clearly on assisting regional communities to mitigate these impacts experienced. The process by which revenue is redistributed back to regional areas however is poorly understood and demands greater transparency and accountability by government to this issue. The following section describes the resource allocation processes used to fund regional social infrastructure requirements. This is examined in terms of: rent tax made to the Commonwealth and the return of royalties to the Crown, as well as then the quantum of resource allocation returned by government to regional areas and how this is decided the voluntary social investment initiatives undertaken by mining and CSG companies the impact of the Sustainable Resource Communities Policy on the responsibility of various parties to resource and social infrastructure investment. Two case studies are presented to provide a broader understanding of alterative mining taxation structure and their conduciveness to support regional funding and development. 5.1 Royalty payments and tax revenues Increased activity in the resources sector generates direct impacts on regional and metropolitan areas in a number of ways, the primary being increased royalties and tax revenues to State and Federal Government Royalty payments A royalty represents a payment to the owners of a resource for the right to sell, dispose of or use the resources. In Queensland, royalty is paid on the basis that the State owns all minerals located on or below the surface of land and all petroleum produced to the surface of land or in a natural underground reservoir (OSR 2011). Royalties are generally paid on an ad valorem (value) basis and are calculated as a percentage of the value of the mineral or petroleum. The rates of royalty payable are prescribed by the Mineral Resources Regulation 2003 and the Petroleum and Gas (Production and Safety) Regulation At present, the commodity rate for coal is 7% of PARSONS BRINCKERHOFF A-RTP001-A:cw Page 27

32 the value up to A$100 per tonne and 10% of the value thereafter (OSR 2011). For petroleum and gas, the commodity rate is 10% of the wellhead value Mining Under the MRA and the Mineral Resources Regulation 2003, the holder of a mining lease, mining claim or other authority is required to periodically lodge royalty returns and pay any royalty payable in respect of minerals sold, used or disposed of during the relevant period (OSR 2011). Larger commodity producers are required to lodge a return with the Commissioner and pay royalty on a quarterly basis. Small commodity producers ordinarily lodge a return and pay royalty on an annual basis. As of 1 January 2012, new arrangements will be introduced requiring most royalties to be paid on a monthly basis (rather than quarterly) Petroleum The P&G Act and Petroleum and Gas (Production and Safety) Regulation 2004 require that petroleum producers lodge royalty returns and pay royalty on a quarterly and annual basis. A petroleum producer (including the holder of an ATP) is required to lodge a quarterly and an annual return with the Commissioner for any period in which petroleum is produced, disposed of or stored (in a natural underground reservoir) (OSR 2011). As of 1 January 2012, new arrangements will be introduced requiring most royalties to be paid on a monthly basis (rather than quarterly) Total revenue Table 5.1 sets out the total royalties paid to the State for the previous five financial years, according to each commodity type. The annual royalties generated by the coal industry are significant in comparison to all other resources. In , the coal sector contributed $1,786.3 million and the petroleum sector, $47.9 million. In , all resources operations are forecast to contribute approximately $3.2 billion in royalties which per capita, is approximately the return to each Queenslander of $700 (QRC 2010). Table 5.1 Summary of royalty revenue ($M) Year ended Coal ($M) Base and precious metals ($M) Petroleum ($M) Other minerals ($M) Total ($M) 30 Jun , Jun , Jun , Jun , Jun ,450.0 Source: (OSR 2011) 2 *The wellhead value is a measure for determining the amount of royalties to be paid. It is derived by subtracting the cost of transportation and processing involved in bringing the raw products from the wellhead to a point at which marketable products are sold, from the sales value of all petroleum products sourced from the well (APPEA 2011). PARSONS BRINCKERHOFF A-RTP001-A:cw Page 28

33 5.1.2 Taxation payments From , two of the largest tax-related costs for resource companies will become company income tax and the impending revised resource tax arrangements including the federal Minerals Resource Rent Tax (MRRT) and expanded Petroleum Resource Rent Tax (PRRT) Company income tax All companies are taxed at the rate of 30% of their net profit by the Federal Government. Queensland resources companies are estimated to have paid more than $3.8 billion in income tax in (QRC 2010) Revised resource tax arrangements From 1 July 2012, the coal, iron ore and onshore oil and gas industries will pay an additional federal tax via revised resource taxation arrangements. Under the new framework, the following tax arrangements will be introduced (DRET 2011): a new Minerals Resource Rent Tax (MRRT) regime will apply to the mining of iron ore and coal in Australia the current Petroleum Resource Rent Tax (PRRT) regime will be extended to all onshore and offshore oil and gas projects in Australia, including the North West Shelf. These taxes replace the proposed Resource Super Profits. Affected coal companies will pay a resource rent tax of 22.5% on their profits on current and future projects. Onshore petroleum and gas projects will be caught by the existing PRRT regime, and will pay the present PRRT levied rate of 40% of a project's taxable profit. The Government estimates that the taxes will generate around $7.4 billion in revenue during the first two years alone (QRC 2010) Resource generation Based on current resources operations, Figure 5.1 shows the estimated royalties by local government area in The top two highest-earning LGAs were Isaac and Central Highlands, providing more than $60 million both respectively. The Western Downs and Toowoomba LGA generated between $16 million $20 million in royalties respectively. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 29

34 Scoping Study Mining and d Coal Seam Gas Development Source: (QRC 2010) Figure 5.1 Queensland royalties by local government area ( ) Figure 5.2 demonstrates how thee composition outlined inn Figure 5.1 is forecast to change by as future investments, such as the proposed coal projects for the Galilee Basin and coal-seam gas-liquefied natural gas projects (CSG-LNG)) in the Suratt Basin, come on line. The Western Downs and Toowoomba LGA regions, along with Maranoa, Gladstone and Barcaldine, are forecast to generate more than $60 million in royalties, on par with the Central Highlands and Isaac LGA regions. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 30

35 Scoping Study Mining and d Coal Seam Gas Development Source: (QRC 2010) Figure 5.2 Queensland royalties by local government area ( ) Resource allocation Capital investment decisions aree primarily driven by the policy p priorities of Government and factors such as demographic changes and planning requirements which impact upon service delivery requirements (Queensland Treasury 2011). Analysis of Statee Government functional spending can therefore provide some indication of whether Government priorities reflect community priorities. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 31

36 The Charter of Fiscal Responsibility outlines the Government s fiscal principles. It is an integral part of the Government s commitment to the community. The fiscal principles of the Queensland Government are broadly based around three themes: fiscal sustainability; a competitive tax regime; and managing the State s balance sheet (Queensland Treasury, 2011b). The fiscal principles recognise the importance of a strong financial position for the State. At the same time, State Governments have a responsibility to provide continuity of services, such as health, public safety and education. The Government has a range of mechanisms available to deliver the capital needed to support its priorities. These mechanisms include the Government directly funding and constructing infrastructure and providing capital grants to local governments, the private sector as well as profit and not-for-profit organisations to deliver capital projects and provide services on behalf of the Government (Queensland Treasury 2011b). At present, there is no specific policy or legislative mechanism in place that ensures royalties and taxes collected by government are reinvested dollar for dollar - in the areas where resources originate. Some transparency on monetary returned to regional areas is provided by the Regional Budget Statements, which outline the Government's key service and infrastructure commitments in the regions for Key highlights from the Regional Budget Statement for the Darling Downs and West Moreton region are as follows (Queensland Treasury 2011c): $5.5 million for new job creation programs and to grow a skilled workforce $80 million for vocational education and training, including apprenticeships and traineeships $2 million to commence refurbishment of Dalby State High School $5.5 million of $27.5 million to replace turnouts and recondition the Dalby to Rosewood rail line $981,000 of $2 million for faster emergency care at Toowoomba Hospital, in partnership with the Australian Government $500,000 annual funding to support the new National Carriage Factory at the Cobb and Co Museum in Toowoomba $39.1 million of $84 million in disaster response funding to restore transport connections between Brisbane and Southern Queensland, by repairing erosion and major land slips to the Toowoomba Range Road and Cunningham s Gap. Further detail of these budget allocations is provided in Appendix F. 5.2 Corporate social investment The issue of resource allocation and social investment is not limited to royalty distribution. Academic literature generally agrees that there has been a concerted move globally by leading mining companies to position their companies and the industry more generally as socially responsible and committed to sustainable development (CSRM 2007). PARSONS BRINCKERHOFF A-RTP001-A:cw Page 32

37 Within Australia, while relatively new, this notion of corporate-community investment has been endorsed with the release of Enduring Value: the Australian Minerals Industry Framework for Sustainable Development, a policy document which serves to provide guidance on implementing international principles relating to social, economic and institutional development (MCA 2005). As a result, the majority of larger resource companies have moved to institutionalise corporate responsibility through the adoption of policies that recognise their projects have a responsibility to mitigate negative social impacts and contribute to the development of communities in and near where they operate. At the operational level, a project will typically have in place a company-specific management system designed to ensure responsible social and environmental practices at in operation across all sites. These systems vary in detail, but the basic elements include (CSRM 2007): 1. a set of formal policy documents, such as a Code of Conduct and policies and standards addressing Health, Safety, Environment and Community (HSEC) issues 2. designated specialist positions responsible for providing support to these areas 3. a process for assessing social and environmental, as well as economic and technical, risks and impacts when approving new projects (refer to Section 5.3) 4. an auditing regime for monitoring site level compliance with corporate policies. Most companies have, in parallel, developed policies, standards and procedures relating specifically to their investment contributions to the communities in which they operate. In addition to providing for the direct needs of their workers, mining companies have become involved in broader community matters and will typically invest in community development initiatives through some form of sponsorship or donation program. A prominent example is the BMA Community Partnerships Program, which has been in operation since 2002 and provides funding to a targeted set of activities and projects through partnership arrangements (BHP 2003). In addition to an overarching company funding program, each project will generally have its own specific community investment requirements, the details of which are typically set out in the Coordinator General s Report that is prepared in response to the EIS or agreed to in the SIMP (see Section 5.3 of this report). It is difficult to compare the amount of money invested in community programs by different operations, due to different accounting practices, as well as differences in the size, location and impact of operations themselves. For example, in 2010, BMA s community investment program in Moranbah totalled $14.2 million including the supply of more than 80 per cent of Moranbah s water (BMA 2011). This has increased by an additional $56 million, with $13 million committed for the Moranbah Community Support Package and $46 million to the upgrade of the Moranbah Airport. In contrast, QGC Pty Limited has committed a $150 million rural community health project to manage social impacts associated with the Queensland Curtis LNG (QCLNG) Project (QGC 2011). QGC also has in operation a $6 million Sustainable Communities Fund, which provides funds to eligible not-for-profit and local government organisations for short-term, one-off projects. Under this fund, twelve community projects from the Western Downs region will receive more than $394,000 (QGC 2011b) while nine community projects around Banana and North Burnett will receive approximately $220,000 (QGC 2011c). PARSONS BRINCKERHOFF A-RTP001-A:cw Page 33

38 Both these examples highlight that the amounts committed towards community investment by the resource industry are substantial, but the community priority areas where community spend is targeted remains largely a company decision. Recent legislative introductions however, is providing that State and local government and the community have greater input into the decision making process in relation to the social commitments made by major mining and petroleum developments. 5.3 Legislative requirements Introduced in 2008, the Sustainable Resource Communities Policy establishes Social Impact Management Plans (SIMP), which is a legislative mechanism to strengthen the identification and appraisal of the social impacts in proposed resource developments (DTRDI 2008). Previously, the findings of social impact assessment have been reported in the EIS for a project; however DEEDI (formerly the Department of Infrastructure and Planning) now requires that project proponents prepare a separate SIMP for all new or expanded major resource development projects. The purpose of the SIMP is to outline how the issues identified in the impact assessment process will be addressed and by whom - throughout the life of the project. In this way, SIMPs are deemed by the government to provide more certainty for industry regarding its obligations and responsibilities to address the social impacts of resource developments (DTRDI 2008). Following a social impact assessment, a SIMP should (DIP 2010): reflect the findings and recommendations of the project s social impact assessment, including consideration of the results of engagement with stakeholders present only a concise summary of the findings of the social impact assessment summarise for all stakeholders the potential positive and negative impacts of the project, proposed mitigation and management strategies, and implementation actions be developed for the life of the project detail the active and ongoing role for communities, local authorities and all levels of government through construction, operation and decommissioning. In order to attain the stated objectives and outcomes of the SIMP, the project proponent must also monitor, review and report on the project s progress, and the key stages should be stated in the SIMP. The plan outlines the identified impact, how the management of the impact will be monitored, who will be responsible for the implementation of the management measure and how often the monitoring will take place. These will be reported against the identified Performance Measures articulated in the SIMP. A SIMP only covers the period from project approval onwards. It does not cover the management of social impacts that may occur during the feasibility and exploration stages of a project (DIP 2010). The SIMP should give consideration to the full life cycle of the development including exploration, establishment, and operation through to closure. This is exacerbated by the fact that the impacts arising from the exploration or mineral development phases of project development are not currently subject to an impact assessment process. While this may not be popular with the proponent, there are distinctive impacts associated with each of these phases that must be identified to ensure increased transparency and accountability to stakeholders. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 34

39 5.4 Case studies Western Australia Mining makes a considerable economic contribution in Western Australia through annual royalty payments to State Government, as well as through tax payments to the State and Federal Governments. In 2010, the Department of Mines and Petroleum collected more than $2.8 billion in royalties (as opposed to taxation of company income) from mineral and petroleum producers in Western Australia (DMP 2011). At the 2008 State election, the issue of regional development and the need for mining regions to receive back their fair share of royalties was a key election issue. In an effort to stimulate regional economic development, the Western Australian government established at the end of 2008 the Royalties for Region initiative, which involves the redirection of government spending from the major population centres into rural areas of the state. This spending is funded by the return of 25 per cent of the State s mining and onshore petroleum royalties revenue to regional Western Australia each year as investment in projects, infrastructure and community services (DRDL 2011, p.4). In the , $619 million (equalling approximately 3.8% of the State Government s budget) was provided to regional communities through Royalties for Regions (DRDL 2011). The overall aim of the Royalties for Region program is to focus on building communities in regional areas of the whole of Western Australia. It does this through six policy objectives: building capacity in regional communities retaining benefits in regional communities improving services to regional communities attaining sustainability expanding opportunity growing prosperity. The program distributes benefits to regional communities through three funds - the Country Local Government Fund, the Regional Community Services Fund and the Regional Infrastructure and Headworks Fund. An important feature of Royalties for Regions initiative is that it has been established to supplement not supplant the existing provision of basic, essential infrastructure and services provided by Government throughout regional Western Australia. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 35

40 5.4.2 Canada Canadian oil and gas businesses pay taxes and royalties to all levels of government. This structure of mining taxation is as follows. The Federal Government imposes (Consiglier et al. 2004, p.6): corporate income taxes capital tax GST (7% of purchases). Provincial governments and territorial governments impose: income taxes varying from 9.4% to 15% based on value of production mining tax varying from 5 to 14% on defined mining profits capital tax of less than 1%. In 2009, corporate income taxes were levied on resource profits at a rate of 19% at the federal level (scheduled to decline to 15% by 2012) and at provincial rates of 10% (Alberta and British Columbia), 12% (Saskatchewan), 14% (Newfoundland and Labrador), and 16% (Nova Scotia) (Mintz and Chen 2010). Deductions from income are provided for depreciation, inventory, borrowing, and other costs incurred to extract resources, including provincial royalty payments. Exploration and development costs are also deducted from profits (written off at a 30% declining balance rate for development costs). At the provincial level, the royalty rate on a well varies with the price of oil and natural gas. In the offshore Atlantic region, royalties on oil and gas production are considerably more complex than that in onshore State regions, with different rates applying to net profits (Mintz and Chen 2010). In contrast to Australia, most provincial mining tax in Canada is typically based on profits. That is, taxes that are linked to ability to pay. For example, an unprofitable mine in the Province of Ontario would not have to pay provincial mining tax or royalty, because that jurisdiction s economic rent is a form of net profits interest. In contrast, the system of royalties based on production, as used in Queensland, ensures that the State is compensated for the extraction of its non-renewable resources. Further to this, conventional oil and gas investments in Canada bear a lower tax and royalty burden than do resource investments in Australia as a result of provincial and federal tax structures that provides for excessive deductibility (Mintz and Chen 2010). While this taxation framework supports Canada s international competitiveness as an attractive resource investment location, it does not ensure an appropriate return of long-term profits for the community. The resource tax and royalties collected through oil and gas investments are filtered through to the general government revenue and therefore cannot be tracked accurately. Hence the tax and royalties generally provide the community with necessary upgrades to social infrastructure. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 36

41 5.5 Summary This section has examined the process by which mining and petroleum royalties and tax revenue are redistributed by the government amongst regions in Queensland. The information provided in this section should be used in future discussion pertaining to the provision of regional funding and social infrastructure investment in resource regions. At present, there is no specific policy or legislative mechanism in place that ensures royalties and taxes collected by State Government in Queensland are reinvested in the areas where resources originate. Rather, the Government plays a more indirect role in infrastructure delivery by using a range of alternative mechanisms to deliver capital to regional areas including, direct funding and the provision of capital grants. While this current arrangement provides returns to regional areas, the amount provided is not static and is subject to the digression of government. The recent introduction of Social Impact Management Plans will provide some surety by outlining the infrastructure and services commitments of proponents and government in mitigating social impacts of a major resource development project. The case studies presented demonstrate the nature of mining taxation and royalty policy responses by government in the Western Australian and Canadian context. Social infrastructure problems in regional areas are accepted as a legitimate public policy concern is Western Australia, reflected by the implementation of the Royalties for Regions policy. While this significant intervention policy is contextually specific to Western Australia, it highlights the importance of enhancing life in royalty-generating regions through secured and targeted funding for key infrastructure. Similarly, the Canada case study demonstrates the importance of a royalty and funding model premised on equity considerations as well as promoting regional social and economic development. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 37

42 6. Conclusion The study has examined the regulatory and planning frameworks used to inform resource development decision making at the State level, particularly where competing land use activities of agriculture and mining exist. This has been considered in terms of examining key issues considered in the granting of exploration and development licences for coal and CSG, as well the processes used to fund and provide regional social infrastructure requirements, including the allocation of royalties by government and voluntary funding contributions by proponents. Resource development projects have significant social and economic impacts for local towns and regional areas, as currently experienced by communities in the Darling Downs and South West region. This paper argues that a holistic appreciation by industry and government of the importance of impact assessment processes at each stage of the exploration and tenure approval process for resource projects has been lacking in Queensland. This is evident, for example, in the limited attention paid to land access and agricultural productivity issues in planning assessment processes, a concern now acknowledged by the Queensland government in its recently released Land Access Policy Framework and Strategic Cropping Land Framework. While increased activity in the resources sector has generated increased royalties and tax revenues to State and Federal Government, communities need to consider whether there will be sufficient Government funding to develop and sustain regional areas. The current Regional Budget Statements provided by State Government delivers some transparency on monetary return to be invested in regions, however there is potential for a more targeted regional development funding model to be developed to complement existing strategies. The Royalties for Regions policy in Western Australia provides an example model which could be adapted and applied to the Queensland context. Ultimately, sustainable regional development and continuing growth of the resources sector is a key priority for governments, communities and the mining industry. The success of an option relating to resource royalties and taxation opportunities in the development of effective infrastructure development relies on the commitment from State Government to achieve a positive long-term future for communities in regions. It is critically important that government acts to ensure current proposed initiatives to address land use conflicts and infrastructure inadequacies in regional areas are addressed as a priority. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 38

43 7. Reference list Australian Petroleum Production and Exploration Association (APPEA) 2011, Petroleum royalties in Tax and commercial policy, accessed 18 October 2011, Arrow Energy 2010, Coal seam gas project development guidelines, accessed 18 th July 2011, s_ pdf Basin Sustainability Alliance (BSA) 2010, Role of BSA, accessed 10 th August 2011, Basin Sustainability Alliance (BSA) 2011, Not at any cost: A blueprint for sustainable CSG operations, accessed 9 th August 2011, bsablueprint.pdf BHP Billiton 2003, BMA Community Partnerships, accessed 16 th August 2011, BHP Billiton Mitsubishi Alliance (BMA) 2011, Caval Ridge Mine Project Question and Answers, accessed 16 th August 2011, / _Caval%20Ridge%20fact%20sheet%20QA%20revised8.pdf Centre for Social Responsibility in Mining (CSRM) 2007, Assessing and Managing the Socio-Economic Impacts of Projects: A Review of Current Mining Industry Practice, paper prepared for Queensland Government Department of State Development, October 2007, CSRM, The University of Queensland: Brisbane. Consiglieri, Kuyek and Pizarro 2004, Mining Royalties, Mining Policy Research Initiative, International Development Research Centre: Avenida, Brasil. Department of Employment, Economic Development and Innovation (DEEDI) 2010, Surat Basin Future Directions Statement, accessed 2 nd August 2011, chments/surat%20basin%20future%20directions%20statement.pdf 2010b, Land Access Code, accessed 26 July 2011, Department of Employment, Economic Development and Innovation (DEEDI) 2011, Surat Basin Future Directions Statement: Final Report, accessed 2 nd August 2011, b, Surat Basin Regional Planning Framework, accessed August 3 rd 2011, c, Land access policy framework, accessed 3 rd August 2011, PARSONS BRINCKERHOFF A-RTP001-A:cw Page 39

44 2011d, Minerals, tenure types and forms, accessed 25 th July 2011, e, A Standard Conduct and Compensation Agreement, accessed 25 th July 2011, f, Environmental Impact Statement in Step-by-step guide to significant project declaration and the EIS process, accessed 23 rd July 2011, g, Protecting Queensland s strategic cropping land: Draft State Planning Policy, accessed 23 rd July 2011, Department of Environment and Natural Resource (DERM) 2010, Coal Seam Gas Water Management Policy, accessed 4 th August 2011, Department of Environment and Natural Resource (DERM) 2011, Guideline - Preparing an environmental management plan for coal seam gas activities, accessed 26 th July 2011, Department of Housing, Local Government and Planning (DHLGP) 1993, State Planning Policy 1/92: Development and the Conservation of Agricultural Land, Queensland Government; Brisbane. Department of Infrastructure and Planning (DIP) 2010, Social impacts assessment: Preparing a social impact management plan draft guideline, accessed 16 th August 2011, Department of Mining and Petroleum (DMP) 2011, Mineral Royalties in Royalties, accessed 14 th August 2011, Department of Natural Resources and Mines (DNRM) 2009, Guidelines for preparing initial and later work programs under the Petroleum and Gas (Production and Safety) Act 2004 and the Petroleum Act 1923, accessed 24 th July 2011, b, Guidelines for preparing initial and later development plans under the Petroleum and Gas (Production and Safety) Act 2004 and the Petroleum Act 1923, accessed 24 th July 2011, Department of Primary Industries (DPI) and Department of Housing, Local Government and Planning (DHLGP) 1993, Planning Guidelines: the Identification of Good Quality Agricultural Land, Queensland Government; Brisbane. Department of Regional Development and Lands (DRDL) 2011, Royalties for Regions: Progress Report , Government of Western Australia: Perth. PARSONS BRINCKERHOFF A-RTP001-A:cw Page 40

45 Department of Resources, Energy and Tourism (DRET) 2011, Revised Resource Tax Arrangements, accessed 16 th August 2011, Department of Tourism Regional Development and Industry (DTRDI) 2008, Sustainable Resource Communities Policy: Social Impact Assessment in the Mining and Petroleum Industries, Queensland Government: Brisbane. Minerals Council of Australia (MCA) 2005, Enduring Value: Guidance for Implementation, Minerals Council of Australia: Canberra. Mintz, J and Chen, J 2010, Taxing Canada s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments, SPP Briefing Papers, Vol.3, No.3, pp Office of State Revenue (OSR) 2011, Mining and petroleum royalties, accessed 17 th August 2011, Queensland Gas Company (QGC) 2011, Surat Basin social impacts targeted as part of $150m program, accessed 17 th August 2011, b, QGC provides $394,000 to Western Downs community groups, accessed 17 th August 2011, c, QGC provides $220,000 to Banana and North Burnett community groups, accessed 17 th August 2011, Queensland Resource Council (QRC) 2010, What are Queensland resources worth to me, accessed 17 th August 2011, Queensland Treasury 2011, Budget Paper 3 - Capital Statement, State Budget , accessed 18 th August 2011, b, Budget Paper 2 - Budget Strategy and Outlook, State Budget , accessed 18 th August 2011, c, Regional Budget Statement - Darling Downs and West Moreton, accessed 18 th August 2011, Regional Development Australia Darling Downs and South West INC (RDA-DD & SW Inc) 2011, Regional Development Australia, accessed 18th August 2011, PARSONS BRINCKERHOFF A-RTP001-A:cw Page 41

46 Appendix A Extent of petroleum licences and mining leases Darling Downs and South West Queensland region Appendix A Extent of petroleum licences and mining leases - Darling Downs and South West Queensland region PARSONS BRINCKERHOFF A-RTP001-A:cw Page A-1

47 Appendix A Extent of petroleumm licences and mining leases Darling Downs and South West Queensland region South Central Queensland Extent of Petroleum Leases South Central Queensland Extent of Mining Leases (Coal) PARSONSS BRINCKERHOFF A-RTP001-A:cw Page A-2

48 Appendix A Extent of petroleumm licences and mining leases Darling Downs and South West Queensland region South West Queensland Extent of Petroleum Leases South West Queensland Extent of Mining Leases (Coal) PARSONSS BRINCKERHOFF A-RTP001-A:cw Page A-3

49 Appendix B Lock the Gate Alliance member groups Appendix B Lock the Gate Alliance member groups PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-1

50 Appendix B Lock the Gate Alliance member groups Lock the Gate Alliance member groups Group Location Key concerns Website Active Companies Aldershot and District Against Mining Australian Water Campaigners Alliance for sustainable well-being Australians for Animals (NSW) South-east Qld Negative impacts on rivers, valuable farming land, environmentally sensitive areas, residential areas and people s health. NSW Impacts on animals. Northern Energy Corporation Barrington Gloucenster Stroud Preservation Alliance Barrington Gloucenster Stroud, NSW Loss of farmland and landscape values, impacts on tourism, water, human health, local economy. Bimblebox Nature Refuge Central western Qld Loss of biodiversity, impacts on threatened species. Bimboola Group Gloucester Coal, Gloucester Resources Ltd Coal and AGL s CSG project. Waratah /Galilee / China First open cut coal mine Blue Mountains Conservation Society Caldera Environment Centre Blue Mountains, NSW Unique biodiversity and scenic values. Coalpac Pty Ltd open cut and high wall mine NSW Northern Rivers Natural scenic and cultural values, impacts on water, protection of National Parks. e.org/calderaenvironmentcentre.org/ Welcome.html CSG Capertree Valley Alliance Central Western NSW t.com/ Coal mining and CSG Caroona Coal Action Group Liverpool Plains, NSW Loss of prime farming land; contamination of ground and surface water, damage to recharge processes, food security, impacts on tourism; loss of biodiversity in the Pilliga forests; geosequestration; water quality in the MDB. Coal mines (BHP, Shenhua) and CSG (Eastern Star Gas) Pipelines Climate Action Central Coast Central Coast NSW Greenhouse emissions of mining and CSG and impacts on climate change. p?gid= Climate Action Newcastle Newcastle, NSW Greenhouse emissions of mining and CSG and PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-2

51 Appendix B Lock the Gate Alliance member groups Group Location Key concerns Website Active Companies impacts on climate change. Climate Action Newtown Sydney NSW Greenhouse emissions of mining and CSG and impacts on climate change. Climate Change Australia Incorporated Greenhouse emissions of mining and CSG and impacts on climate change. Coal Seam Gas News Impacts on water, inequitable laws, safety, lack of accountability, human health, biodiversity and climate change impacts, fracking. Community Law Resource Group Conservation Council of WA National Infringements of constitutional and common law rights. Perth, WA Loss of natural values, greenhouse impacts. Kimberly gas hub; SW WA coal mines and CSG projects. Earthb4worth Methane emissions, groundwater contamination from Fracking. Earthrace Conservation - Australia hv1.htm Deception Bay, Qld Biodiversity conservation. eaustralia Equal Share Inc. Victoria Fair Water use Australia Australia's water future, the Murray-Darling Basin and the sustainable environmental, community and economic benefits that would flow from its recovery. ponent/option,com_frontpage/itemid,1/ Food Connect Friends of Felton Brisbane, Sydney, Adelaide Toowoomba- Pittsworth Cambooya, Qld Food security, food miles, local food producers. Loss of prime farming land; contamination of ground and surface water, damage to recharge processes, water quality in the MDB. Friends of the Earth National Greenhouse emissions of mining and CSG and impacts on climate change; loss of agricultural land; biodiversity and local community impacts. G.A.G. - Kyogle (Group Amre Energy mine and CTL plant X-strata PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-3

52 Appendix B Lock the Gate Alliance member groups Against Gas) Group Location Key concerns Website Active Companies Gold Coast and Hinterland Environment Council Gold Coast, Qld Biodiversity, climate change. Gloucester Environment Group Gloucester, NSW Threats to water quality and availability, air quality, health, food production and other productive industries. Impacts on natural systems - vegetation clearing, land degradation, biodiversity fragmentation, loss of groundwater - dependent ecosystems and the breakdown of communities. s/mining-and-gas Gloucester residents partnership Inc. Gloucester, NSW The removal of Gloucester Resources Limited (GRL) coal exploration licences due to its close proximity to the town of Gloucester and potential health impacts on residents. Gloucester Resources Limited Great Artesian Basin Protection Group Inc Impacts on the water and other resources of the Great Artesian Basin. Greater Taree City Council Taree, NSW Greater Wollomi Community Alliance Upper Hunter valley, NSW Impacts on scenic, cultural and environmental values, existing agricultural and horticultural industries. Hands Off Our Coast Port Stephens, Newcastle, NSW Offshore oil and gas exploration, seismic testing. ands-off-our-coast- HOOC/ Bounty Gas and Oil, Advent and Asset Energy Hunter Valley Protection Alliance Hunter Valley, NSW Impacts of coal mining and coal seam gas on local landscapes, farming activities, vineyards and wineries, restaurants, and tourism related businesses com/ AGL Ironstone Community Action Group Newcastle Gloucester area of NSW Impacts on rivers, other environmental values, other businesses and community health. Johnsons Ck Conservation Committee Threats to water quality and availability, air quality, health, food production and other productive industries. Impacts on natural systems - vegetation clearing, land degradation, biodiversity fragmentation, loss of groundwater - dependent ecosystems and the breakdown of communities. hnsons-creek-conservationcommittee-inc PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-4

53 Appendix B Lock the Gate Alliance member groups Group Location Key concerns Website Active Companies Keerrong Gas Squad Northern Rivers and Border Ranges, NSW Fracking, impacts on water quality and availability, biodiversity, food supplies, air quality. Metgasco Kingaroy Concerned Citizens Group Kingaroy, Qld Loss of good agricultural land, impacts on ground and surface water, human health. Cougar Energy (UGC), Bauxite, Kurri Kurri Landcare Group Leeuwin Environment Margaret River Augusta, Western Australia Lovedale Chamber of Commerce Local coal and offshore oil developments. uwinenvironment/ Macarthur Bushwalkers SW Sydney, NSW Impacts on water environmental flows and dependent aquatic species, groundwater impacts. Mackay Community Garden Mackay, Qld Sustainable food / BHP Billiton Illawarra Coal Mackay Conservation Group Mackay, Qld Maitland Greens Maitland, NSW n/index.php/maitland_greens Manning Clean Water Action Group Merriwa Healthy Environment Group Maules Creek Community Council Mullaley Gas & Pipeline Accord Inc Manning, NSW Impacts of fracking on water quality anwateractiongroup/ Northern Gunnedah basin, inland NSW Impacts and extent of existing and new coal, and new coal seam gas developments. Dart / Apollo, AGL, ESG, Santos Nature Conservation Council of NSW NSW Threats to water quality and availability, air quality, health, food production and other productive industries. Impacts on natural systems - vegetation clearing, land degradation, biodiversity fragmentation, loss of groundwater - dependent ecosystems and the breakdown of communities. Limiting of safe and sustainable jobs and reducing s/mining-and-gas PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-5

54 Appendix B Lock the Gate Alliance member groups Nerang Community Association Inc Group Location Key concerns Website Active Companies revenue from other more sustainable industries. The short- term profits and substantial state revenue delivered from mining does not justify the harm to natural resources and ecosystems that provide essential services to our growing communities, such as safe clean drinking water and productive agricultural land. No COALition Impacts of coal mining on water, landscape values, agriculture/horticulture and tourism. Northern Rivers Arabian Horse Association Inc Northern Rivers Guardians NSW northern Rivers Appropriate development, sustainable water management, impacts of fracking. Nowra Hill Landcare Group com/ Vasse Coal NSW Artesian Bore Water Users Association Great Artesian Basin mplates/aa_content.aspx?pageid=1 Otford Protection Society Illawarra, NSW Impacts on catchments and water supplies, greenhouse impacts. Pine Rivers Climate Action Network Protect Jerrys Plains SE Qld Impacts on greenhouse emissions and uptake of renewable energy technology. mgasexploration.html Apex Energy, Peabody Pacific's Metropolitan Mine, Helensburgh Qld Rural and Regional Greens Inland Qld from NSW border to Cape York. Human health and safety; impacts on water quantity and quality, biodiversity including threatened marine species; protection of good agricultural land, greenhouse emissions, subsides to fossil fuel sector etc. Residents Action Association Inc, Bowen Bowen, Qld Impacts of heavy industry on the amenity and health of Bowen and its residents. Loss of wetlands and their flora and fauna. Impacts on Barrier Reef and its lagoon, greenhouse emissions, dust and noise. u/bowen-raa.shtml Aluminium Corporation of China (Chalco) PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-6

55 Appendix B Lock the Gate Alliance member groups Group Location Key concerns Website Active Companies Rivers SOS NSW Protecting water courses from the impacts of mining Running Stream Water Users Association Save Bunnon vers-sos/ Mudgee, NSW Water security, wider environmental impacts. om/ Save Our Recharge Environment. Narrabri, NSW Impacts on southern recharge areas of Great Artesian Basin. ESG SavetheDrip Mudgee, NSW Impacts of mining on the Goulburn and Hunter rivers and groundwater resources. Cultural and environmental values. Scenic Hills Association Sydney NSW Impacts of CSG on the water resources and heritage values of the Sydney basin; health and economic impacts Singleton Shire Healthy Environment Group Six Degrees Queensland Impacts of coal and coal seam gas emissions on climate change X-strata AGL Xstrata Sustainable Living Solutions Queensland Sustainable food production, food miles, energy efficiency. Sutherland Shire Environment Centre Inc Sutherland, NSW Impacts on bushland, waterways, air quality. Stop CSG-Illawarra Illawarra, NSW Protection of drinking water and food, the environment and human health. Illawarra escarpment is an intake area for Sydney s water supplies, high scenic and tourism value. Sydney Residents Against Coal Seam Gas Sydney, NSW Impacts of CSG on residents health, amenity and quality of life; property values, air quality, water pollution. p?sk=group_ Dart Energy Three Rivers Greens Tooraweenah Coal Seam Gas Group Tooraweenah, NSW PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-7

56 Appendix B Lock the Gate Alliance member groups Group Location Key concerns Website Active Companies Toowoomba Coal Mine Action Group Toowoomba, Qld Impacts of open cut coal mining on the doorstep of well-established communities on the Darling Downs. Transition Sunshine Coast Sunshine Coast, Qld Sustainable energy and food production. org/ Transition Kurilpa Unite to Fight - Rural View Qld Valley Watch Inc Clarence Valley, NSW Climate change, nature conservation. Western Downs Alliance Western Darling Downs, Qld Impacts of fracking and CSG developments on ground and surface water, bushland, air quality, human health, property values, lifestyle, protection of prime agricultural land, settled areas. QGC Wide Bay Burnett Environment Council Wide Bay, Qld Wollumbi Valley Against Gas Extraction Upper Hunter Valley, NSW Fracking, impacts of CSG developments on water resources, cultural and heritage values, tourism sector etc. AGL Wooyung Action Group Northern Rivers, NSW Wybong Action Group Hunter Valley, NSW Impacts of coal mining on water and environmental resources; existing agricultural and horticultural business, tourism Yarra Climate Action Now Melbourne, Vic Climate change, renewable energy uptake. PARSONS BRINCKERHOFF A-RTP001-A:cw Page B-8

57 Appendix C Matters to be addressed by an initial work program as part of an application for an Authority to Prospect Appendix C Matters to be addressed by an initial work program as part of an application for an Authority to Prospect PARSONS BRINCKERHOFF A-RTP001-A:cw Page C-1

58 Appendix C Matters to be addressed by an initial work program as part of an application for an Authority to Prospect Table 7.1 Matters to be addressed by an initial work program as part of an application for an Authority to Prospect Legislative requirement Information to be provided Section 48 (1) The proposed program must provide for each of the following (Petroleum and Gas (Production and Safety) Act 2004) (a) an overview of the activities proposed to be carried out under the authority or proposed authority during all of its term A written summary covering all of the term of the ATP, detailing the proposed timing of the key activities and the general location where these activities are to be conducted. (b) for each year of the program period: (i) the extent and nature of petroleum exploration and testing for petroleum production proposed to be carried out during the year The proposed extent and nature of activities should be adequate to explore the petroleum potential of the area of the ATP. The type of activities to be undertaken must be identified. For example, detail the number and types of: geological reviews and assessments seismic data reprocessing surveys, including their type (2D seismic, 3D seismic, airborne geophysical, geochemical) and their linear or area coverage wells (drilled on a dry hole basis) or water bores and their drilling method, estimated depth and stratigraphic targets any production testing proposed as a result of petroleum discoveries made by these wells; and any monitoring activities, especially location of water observation bores. This information must be provided on a yearly basis in a tabular form. (ii) generally where the activities are proposed to be carried out A broad statement about where the proposed drilling or survey activities are to be conducted, to ensure an investigation of the proposed targets within the ATP. (iii) the estimated cost of the activities A summary of the estimated costs of each individual exploration activity should be provided. This cost will be used for statistical purposes to ascertain the future expenditure on petroleum exploration in the State. Work program compliance will only be based on whether the proposed activities have been completed and not whether the estimated expenditure of these activities has been met. (c) maps that show where the activities are proposed to be carried out The map is to show where all authorised activities are proposed to occur on the ATP. The map should include known well locations, pipelines and other infrastructure, and access roads, as well as the locations of proposed wells and surveys. More than one map may be provided, and each map can show the location of proposed activities on a year by year basis. PARSONS BRINCKERHOFF A-RTP001-A:cw Page C-2

59 Appendix C Matters to be addressed by an initial work program as part of an application for an Authority to Prospect Legislative requirement Information to be provided Section 48 (1) The proposed program must provide for each of the following (Petroleum and Gas (Production and Safety) Act 2004) (d) any other information relevant to the matters mentioned in section 49 (e) reasons why the program is considered appropriate (f) another matter prescribed under a regulation. A statement on why the extent and nature of the proposed work program adequately tests the potential for petroleum discovery. When considering the potential of an area, regard may also be made to the exploration rationale and a number of other factors including the: period of the work program size of the area perceived prospectivity of the area, (determined by considering the geology of the area and comparing exploration activities and work programs for ATPs with similar geological targets) exploration maturity of the area (amount of previous petroleum exploration and development activities). For example, one of the reasons may address why the proposed program s field activity is considered appropriate. Section 13 Proposed authority to prospect proposed initial work program (Petroleum and Gas (Production and Safety) Regulation 2004) For section 48(1)(f) of the Act, the matters are each of the following: (a) a description of the geological model for the area of the proposed authority (b) an assessment of the potential for petroleum discovery in the area (c) the rationale, in relation to the geological model for the area, for the activities proposed to be carried out under the proposed authority. The work program must contain a geological model (including proposed targets) and a rationale for the proposed activities. The rationale should also include: an outline and technical assessment of available data about the proposed area, and maps or plans showing the extent of the stratigraphic units included in the geological model. The details relating to the potential for petroleum discovery may have already been provided in response to section 48(1)(d). Source: (DNRM 2009) PARSONS BRINCKERHOFF A-RTP001-A:cw Page C-3

60 Appendix D Guide to content requirements for typical initial development plans Appendix D Guide to content requirements for typical initial development plans PARSONS BRINCKERHOFF A-RTP001-A:cw Page D-1

61 Appendix D Guide to content requirements for typical initial development plans Table 7.2 Guide to content requirements for typical initial development plans lodged under the Petroleum and Gas (Production and Safety) Act 2004 Legislative requirement Information to be provided Section 48 (1) The proposed program must provide for each of the following (Petroleum and Gas (Production and Safety) Act 2004) (1)(a) an overview of the activities proposed to be carried out under the lease or proposed lease during all of its term A written summary covering the proposed term of the lease, the timing and amount of petroleum to be extracted and the area from which it is to be extracted, related infrastructure such as water disposal infrastructure, central compressor stations. Include a detailed map at an appropriate scale showing all of above in relation to mining lease boundaries. Any proposed partial recovery of petroleum resources is to be described. Key milestones must be highlighted (e.g. production from a different reservoir). (1)(b) for each year of the plan period: (i) the nature and extent of activities proposed to be carried out under the lease or proposed lease during the year Identify the type of activities to be undertaken, e.g. estimated number and types of wells and their drilling method and depth, pipelines, processing plants, water production and management activities, reservoirs to be drilled, monitoring activities especially location of water observation bores. This information can be provided on a yearly basis in a tabular form. (ii) where the activities are proposed to be carried out Identify on a map where all authorised activities are proposed to occur on the lease. The map should include well locations, pipelines, other transport facilities, storage facilities, access roads, infrastructure, exploration drilling, etc. The level of detail should be general where appropriate, that is, a general statement could be made about the extent and nature of the proposed drilling activities, an indication of the number of wells or bores, the proposed spacing and the indicative well or bore type. A map, or series of maps if more than one natural underground reservoirs are to be involved, must be provided. (iii) the estimated cost of the activities A summary of estimated costs. For example, $5 million for compressors, $10 million for production wells etc. 1(c) for each natural underground reservoir in the area of the lease of which the applicant is aware, each of the following: (i) the location and a verifiable estimate of the amount of petroleum in the reservoir A map for each reservoir showing the reserve and resource limiting parameters (e.g. lowest closing contour, oil-water contact, area of influence of a well) for each natural underground reservoir. Where mining method varies, the reserve/resource information should be provided for each distinct area. An estimate of the volume of petroleum by confidence category (proved, probable and possible) in PARSONS BRINCKERHOFF A-RTP001-A:cw Page D-2

62 Appendix D Guide to content requirements for typical initial development plans Legislative requirement Information to be provided Section 48 (1) The proposed program must provide for each of the following (Petroleum and Gas (Production and Safety) Act 2004) each natural underground reservoir. (ii) the standards and procedures used to make the estimate Resources and reserves estimates by confidence category, e.g. proved, probable and possible. This may have already been provided above in response to 1(c)(i). Reference could also be made to petroleum in place as well as recoverable petroleum. Procedures used to make the estimate. Sufficient information to validate the estimate. This could be a summary of key parameters, e.g. porosity, permeability, reservoir pressure. For petroleum, the level of information and the preparation of the estimate should be undertaken in accordance with section 152 of the Petroleum and Gas (Production and Safety) Regulation Tabulated information with corresponding maps will suffice in most cases. This may have already been provided above in response to 1(c)(i). (iii) the rate and amount of production proposed from the reservoir An estimate of the volume of petroleum and water expected to be produced from each reservoir for each year of the plan. (Note: section 42 of the Petroleum and Gas (Production and Safety) Regulation 2004 specifies how volumes must be stated in reports). Volume should include produced and sales gas. Comments should be provided in relation to resource extraction efficiency and best practice. Tabulated information will suffice in most cases. (iv) approximately when the proposed production is to start (v) a schedule for the proposed production during the plan period 1(e) any other information relevant to the criteria mentioned in section 141 (and 383B if coal seam gas regime is applicable) Date and rationale (brief explanation if any extended delay owing to a relevant arrangement). A map showing the staged development of the proposed production. This may have already been provided above in response to 1(c)(iii). Matters only need to be addressed if applicable. For instance, information on the CSG assessment criteria only applies if there is an overlap with a coal or oil shale mining tenement. The amount of detail required will depend on the nature of any overlap and the extent of identified coal or oil shale resources. The possibility of any coordination arrangement for the production of petroleum should be mentioned. In summary, most of the requirements of this section including the CSG criteria are intended to identify the possibility for coordinated development of the petroleum and coal resources, the impact of development of one resource on the other, the relative value of each resource and the benefit of development of each resource for the State. PARSONS BRINCKERHOFF A-RTP001-A:cw Page D-3

63 Appendix D Guide to content requirements for typical initial development plans Legislative requirement Information to be provided Section 48 (1) The proposed program must provide for each of the following (Petroleum and Gas (Production and Safety) Act 2004) Note: the public interest is defined in schedule 2 of the Petroleum and Gas (Production and Safety) Act (f) reasons why the plan is considered appropriate The reasons are to include (but not limited to): 1(g) another matter prescribed under a regulation: Reasons why petroleum is recovered in the most efficient and economically viable way Information in support of the proposed production commencement day The development is not adversely impacting on the future development of the State s coal and oil shale resources. Regulation 14: Provide for the area limit of the natural underground reservoir. Regulation 14: Details, including the location, type and size, of any planned infrastructure intended to be located within the area of the proposed lease. Section 140 Storage A map for each reservoir showing the reserve and resource limiting parameters (e.g. lowest closing contour, oil-water contact, area of influence of a well) for each natural underground reservoir. This may have already been provided in response to s.138(1)(c)(i). If the estimate is determined in a way other than in complying with the requirements of SPE code, which is acceptable to the Chief Executive, the details of the other way must be provided. Details to include a list of the infrastructure and a map showing the proposed location. This may have already been provided in response to s.138(1)(b)(ii). If natural underground reservoir storage is proposed, the proposed plan must include the following: A program for evaluating, developing and using the reservoir A verifiable estimate of its storage capacity Include: Quantity of buffer gas necessary to maintain the reservoir for future storage of petroleum or prescribed storage gas The proposed monitoring program associated with injection and withdrawal to monitor the ongoing status of the storage gas in the reservoir with respect to pressure and any escape of storage gas Installed equipment and operating procedures Proposed injection and withdrawal rates. Include: Thickness of the natural underground reservoir Porosity PARSONS BRINCKERHOFF A-RTP001-A:cw Page D-4

64 Appendix D Guide to content requirements for typical initial development plans Legislative requirement Information to be provided Section 48 (1) The proposed program must provide for each of the following (Petroleum and Gas (Production and Safety) Act 2004) Permeability Volume. The standards and procedures used to make the estimate A schedule for the storage injection and withdrawal Another matter prescribed under a regulation. As appropriate. If known, include injection and withdrawal rates as part of the schedule. If not known, it is sufficient to state on demand. Source: (DNRM 2009b) PARSONS BRINCKERHOFF A-RTP001-A:cw Page D-5

65 Appendix E Guide to content requirements for a CSG statement Appendix E Guide to content requirements for a CSG statement PARSONS BRINCKERHOFF A-RTP001-A:cw Page E-1

66 Appendix E Guide to content requirements for a CSG statement Table 7.3 Guide to content requirements for a CSG statement lodged under the Petroleum and Gas (Production and Safety) Act 2004 Legislative requirement Information to be provided Section 306 Content requirements for CSG statement 306(1)(a)(i) A CSG statement must assess the likely effect of proposed petroleum production on the future development of coal or oil shale resources from the land 306(1)(a)(ii) the technical and commercial feasibility of coordinated petroleum production and coal or oil shale mining from the land 306(1)(b) include a proposed safety management plan for all operating plant, or proposed operating plant, for proposed petroleum production under the lease that may affect possible future safe and efficient mining under the coal or oil shale mining lease. (See sections 388 and 675 of the Petroleum and Gas (Production and Safety) Act 2004) Source: (DNRM 2009b) Detail the likely interaction with, and its impact on, coal seams (seams to be intersected and where completion or production is proposed, scope and extent of proposed activities relative to the extent of the coal seam) If future coal development is considered unlikely this can be stated along with the reasons for making such a statement How any impact is going to be minimised (e.g. proposed operational procedures including well abandonment). Extent and outcome of any negotiations with relevant coal or oil shale mining tenement holders, particularly regarding a possible coordination arrangement If no negotiation has been undertaken nor agreement reached, details on the potential for coordinated petroleum production with coal or oil shale mining should be outlined (e.g. discussions may be continuing; draft agreement may be in place but not signed) Issues of timing of development of both resources should be discussed. Only the information in the safety management plan (SMP) for relevant operating plant that may impact on future safe and efficient mining has to be provided. This may include extracts from, or relevant sections of, the operator s SMP The requirement for risk assessment under section 675(e) should address potential impacts of activities on future safe and efficient coal or oil shale mining. Reference should be made to Petroleum and Gas (Production and Safety) Regulation 2004 Schedule 4 (Coal seam gas potential hazard guide) The requirement under section 675(f) should address matters related to coal and oil shale tenement holders (where relevant). Other matters in section 675 that may be relevant include subsections: (a); (b); (c); (g); (i); (m); (n); (o); and (q); A Principal Hazard Management Plan (PHMP) forms part of the SMP (section 674(5)). The obligations on the applicant for the petroleum lease relating to the PHMP (section D) are directly relevant to any overlapping coal or oil shale mining tenement holder. While the PHMP may not have been developed at the time of making the petroleum lease application, some discussion should be provided about how such a plan may be developed and the issues it may address. PARSONS BRINCKERHOFF A-RTP001-A:cw Page E-2

67 Appendix F Regional Budget Statement Darling Downs and West Moreton region Appendix F Regional Budget Statement Darling Downs and West Moreton region PARSONS BRINCKERHOFF A-RTP001-A:cw Page F-1

68 Queensland State Budget Regional Budget Statement Darling Downs and West Moreton Over the 2011 summer, Queensland experienced State-wide devastation from natural disasters. The floods and Cyclone Yasi saw 100 per cent of Queensland local government areas declared disaster affected and triggered the largest rebuilding and recovery operation ever undertaken in this state. The Budget fosters that recovery, while also providing relief for families. My Government s decision to abolish the ambulance levy will provide immediate relief for families doing it tough. There is also a new $140 million Queensland Building Boost, to stimulate the housing sector and make it more attractive for people to purchase their first home. We will also implement reforms to our education system by moving Year 7 into high school, enabling our children to get full benefit from the new Australian Curriculum. This Budget invests a record amount in events funding - an $85.8 million boost over five years - to help Queensland attract major events and drive up tourism numbers. This is a Budget built on strength of spirit that will restore long-term social and economic prosperity to the Darling Downs-West Moreton region and right across the State. Anna Bligh MP Premier and Minister for Reconstruction On track for recovery from the global financial crisis, Queensland s economy was instead faced with the worst floods in 100 years and Cyclone Yasi. Mines were flooded, crops destroyed and communities were isolated. Some of our key export partners, too, were hit by natural disasters. The State Budget faces those challenges head-on, reprioritising our needs and maintaining our sights on prosperity and a return to surplus. It will also chart our course back to the front of the economic pack, with growth in to outpace the other states and the nation. Our prosperity is in our regions - our mineral-rich centres, our tourism and heritage hotspots, and our business, industry and agriculture hubs. This Government will maintain its focus on economic reform and jobs generation. Our infrastructure investment will clock in at $15 billion - more than Western Australia and more than Victoria. The program will support almost 93,000 jobs. The State Budget will strengthen Queensland s economy and deliver on our commitment to protect Queensland jobs. Andrew Fraser MP Treasurer and Minister for State Development and Trade Government services in Darling Downs and West Moreton Smart Service Queensland State Emergency Service Telephone: Health Telephone: Every Dollar Counts concessions website For Government services call or visit State-wide Highlights Helping Queenslanders into new homes Massive stimulus package for building new homes $10,000 grant for a new home contracted between 1 August 2011 and 31 January 2012 Zero stamp duty for first home buyers under $500,000 First home owners can now receive up to $17,000 Kick-starting the housing market, generating jobs and construction Rebuilding Queensland $6.8 billion in State and federal disaster funding, including $2.9 billion on roads, $2.75 billion for local governments and $656 million for small business, non-profit organisations and primary producers Supporting jobs and investing in the future $100 million over three years in new Smart State initiatives $85.8 million over five years to attract new events to support tourism Capital program of $15 billion in , supporting 93,000 jobs A better education system for our children $328 million over four years for State schools for building works to move Year 7 to secondary school in 2015 $50 million in for the State School Investment Program Investing in services A record health budget of $11.05 billion More police, to meet our commitment to deliver 600 officers this term, and 50 new ambulance officers A greener Queensland $75 million to support investment in solar power energy generation $60 million to the end of next year for ClimateSmart Home Services reducing households bills and carbon emissions Capital expenditure per capita Investment per capita $3,250 $3,000 $2,750 $2,500 $2,250 $2,000 $1,750 $1,500 Brisbane, Sunshine Coast and Gold Coast Darling Downs and West Moreton For more information about the State Budget:

69 Photo courtesy of Michael Marston Photo courtesy of MWA Viewfinder Regional Budget Statement Darling Downs and West Moreton For more information about Government initiatives in your region, visit $4.4 million for the Surat Basin resources trade infrastructure project at Miles State High School. $100,000 to commence early works to replace the ambulance station and relief quarters at Tara. $3.7 million to widen and seal a section of the New England Highway from Munro Road to Pioneer Road. $3.2 million for kindergartens at Crows Nest, Gabbinbar and Hatton Vale State Schools. $70,000 to relocate the Dandabah workshop and compound to the Conservation Park adjacent to the Bunya Mountains National Park. Funds to start the $1.3 million replacement auxiliary fire and rescue station at Clifton. $5.5 million for new job creation programs and to grow a skilled workforce. $80 million for vocational education and training, including apprenticeships and traineeships. $2 million to commence refurbishment of Dalby State High School. $5.5 million of $27.5 million to replace turnouts and recondition the Dalby to Rosewood rail line. $981,000 of $2 million for faster emergency care at Toowoomba Hospital, in partnership with the Australian Government. $500,000 annual funding to support the new National Carriage Factory at the Cobb+Co Museum in Toowoomba. $8 million to upgrade the Gatton-Esk Road between the Warrego Highway and the former Esk Shire boundary. Cost of living support for Queenslanders $4.4 million to complete rehabilitation of the Lockyer Creek Bridge and culverts on the Warrego Highway at Helidon. $8 million of $96 million to duplicate lanes from Nugents Pinch Road to west of Charlton, on the Warrego Highway. $33.7 million to complete stage one of the southern Queensland Correctional Centre Precinct at Gatton due to open in Disaster response funding $202.6 million to local governments for recovery and reconstruction projects, in partnership with the Australian Government, including to repair the Jellicoe Street Bridge in Toowoomba and to reconstruct Flagstone Creek Road and Lefthand Branch Road in the Lockyer Valley. $10.9 million to reconstruct the Mt Sylvia Road in the Lockyer Valley. $2.1 million to support community recovery and rebuild community cohesion. Supporting our State s regions by improving access to and affordability of a range of services: Key Health Education Law and order Infrastructure Economic Development Community Disaster response $39.1 million of $84 million to restore transport connections between Brisbane and Southern Queensland, by repairing erosion and major land slips to the Toowoomba Range Road, rail crossings and Cunninghams Gap. $25 million to reconstruct sections of the Warrego Highway between Macalister and Warra. $140 million to reduce the cost of electricity bills by abolishing the Community Ambulance Cover levy. $411 million to ensure that regardless of where they live, all Queensland electricity customers of a similar type pay a similar price for electricity. $165.9 million for cost of living concessions, to improve affordability of council rates for pensioners and electricity for pensioners and seniors. $337.8 million for regional freight and passenger transport subsidies, including air services in Toowoomba and bus services in Toowoomba and Warwick. $54.6 million for the Patient Travel Subsidy Scheme which assists patients accessing specialist medical services not available within their local area. $146.7 million for the School Transport Assistance Scheme to assist students who have to travel long distances to their nearest school.