Streamline, standardise, or specialise? Frameworks for regulation of unconventional resources in Australia

Abstract

The growth in domestic and global demand for energy has encouraged the development of new and innovative sources of energy.

In Australia, the coal seam gas (CSG) industry has been in the vanguard of these advances with significant investment already in place to develop major CSG projects in Queensland. This rapid rise has highlighted the potential for other unconventional resources with proponents now exploring for new resources, such as shale gas, across Australia.

Governments have generally attempted to support the development of these new industries. Regulatory reform has addressed the bespoke regulatory issues presented by unconventional gas production particularly in respect of water, land access and co-existence with other industries.

Despite this the onshore gas industry continues to face political uncertainty, community division and divergent regulatory responses. Industry has consistently called for regulatory reforms to address duplication, remove unnecessary costs and improve approval processes to speed project delivery and enhance project returns while maintaining robust environmental protection obligations.

State and Federal governments have responded to these calls for action in varying ways. While there is much to approve of in each of these processes each presents specific issues and risks that must be considered before they are implemented or more broadly adopted. Therefore, the question arises: What is the best long-term regulatory approach for the sustainable development of Australia’s unconventional resources?

This paper reviews existing Australian regulatory approaches and analyses how regulators, industry and the community can work together to develop and implement a regulatory framework that achieves their respective objectives.