JOHANNESBURG (miningweekly.com) – The Northern Territory Parliament has passed the Petroleum Amendment Bill, which the government and industry say will enhance the level of regulation of onshore gas drilling.

However, Labor voted against the Bill, having previously said that supporting the legislation would be tantamount to signing a blank cheque on regulating hydraulic fracturing in the Northern Territory.

“If this amendment had not passed, then these regulations could still have been introduced as a schedule to the act,” Northern Territory Mines and Energy Minister David Tollner said this week, criticising Labor for opposing the Bill.

Schedules were weaker forms of regulations with less Parliamentary and Cabinet oversight, and did not need to be drafted by Parliamentary counsel. Ministers could change schedules easily and with the ability to make regulations, greater rigour and enforceability could be brought to bear on the onshore gas drilling process.

“It is bizarre that this amendment was opposed by the Labor party,” Tollner said.

The new regulations, which were available for public consultation, aimed to address recommendations and findings by independent experts Dr Allan Hawke AC and Dr Tina Hunter.

“The draft regulations require that approved environment management plans must be in place for all onshore oil and gas activities that have an environmental impact,” said Tollner.

“Further regulations will be drafted with public consultation and expert input to regulate other aspects such as drilling,” he added.

The Australian Petroleum Production and Exploration Association (Appea) director for South Australia and Northern Territory Matthew Doman said on Friday that the new regulations should enhance public confidence in onshore gas activities.

“The new regulations will improve transparency and enforcement and address many of the concerns Labor and others have expressed about the current regulatory regime,” Doman said.

“It’s disappointing, therefore, that Labor voted against the enabling legislation. Both major parties have committed to reform of the Territory’s regulatory regime for onshore gas and the industry has supported that process. So, it is bewildering that Labor would refuse to engage on something that is critical to an industry willing to invest billions and generate thousands of jobs and other benefits for the Territory,” he commented in a statement.

“Appea urges all Territorians to consider the science, the industry’s strong track record in the Northern Territory and around Australia, and the economic opportunities at hand when making decisions about onshore gas development."

Doman said earlier that the Northern Territory Budget, handed down on Tuesday, highlighted the need for new investment in onshore gas projects to arrest a forecast decline in taxation and royalty revenues.

He stated that the Northern Territory had experienced strong economic growth in recent years, owing to construction activity associated with Inpex’s Ichthys liquefied natural gas project in Darwin. However, as the project transitioned from construction to production, new projects were needed to support the Northern Territory economy.

“While Ichthys will deliver ongoing benefits to the Territory for decades to come, it’s clear that the Northern Territory economy needs the new jobs and investment that onshore gas can deliver,” Doman said.

Citing research by Deloitte Access Economics, he said that developing the Northern Territory’s shale gas resource had the potential to create up to 6 300 new long-term jobs and generate up to $460-million a year in additional revenue.