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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Structural reform and petroleum (environment) regulations in the Northern Territory

Jop van Hattum A and Victoria Jackson A
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Department of Mines and Energy, Northern Territory Government.

The APPEA Journal 56(2) 565-565 https://doi.org/10.1071/AJ15071
Published: 2016

Abstract

The opportunity for onshore oil and gas development in the Northern Territory (NT) has grown exponentially in recent years, driven by the NT’s expansive shale gas resources in the McArthur Basin and elsewhere. Such resources provide many potential benefits to the territory’s economy, including job creation and clean, cost-effective energy generation opportunities. Critical to the successful development of the industry is a legitimate social licence to operate with the community, for which strong environmental regulation is a key enabling factor. Communities must be assured that oil and gas activities can provide ecologically sustainable development, and a transparent, evidence- and risk-based framework is the best way to achieve this.

Following the NT Inquiry into Hydraulic Fracturing by Dr Allan Hawke in November 2014, and further review of the environmental assessment and approval processes in May 2015, the NT Government has implemented structural reform and developed contemporary outcome-focused Petroleum (Environment) Regulations to balance environmental protection with the economic development benefits offered by the onshore gas industry. Those objectives include that petroleum development in the NT: is consistent with the principles of ecologically sustainable development; reduces risks and impacts to levels that are as low as reasonably practicable and acceptable; ensures meaningful engagement with stakeholder; and, provides for transparency of decision-making and publication of approved environment management plans in full.

This extended abstract provides an update of the reform of the regulatory framework, the regulatory objectives, the regulations by which they’re achieved, and the consultation process followed to gain wide stakeholder support. It will also highlight that strong regulations alone do not provide a robust regulatory framework, and the steps the NT Government is taking to achieve its objective.

The regulations are planned to come into force in the third quarter of 2016. Meanwhile, a full review of the NT Petroleum Act and development of Petroleum (Resource Management) Regulations that takes into consideration the recommendations from the Hawke Inquiry into Hydraulic Fracturing in the NT is underway.

Jop van Hattum joined the Department of Mines and Energy (DME) in May 2015 to lead the onshore oil and gas operations team responsible for assessments, compliance and enforcement, and the development of effective regulation of petroleum activities in the NT.

Prior to joining the DME, Jop held senior roles in projects and operations for multi-national and independent oil companies. He performed in-depth project readiness reviews for more than 100 upstream development projects around the world while serving as a senior consultant at IPA Global.

Jop started his career in in the oil and gas industry working in hands-on roles in the North Sea and Australia while completing a MSc in petroleum engineering at Delft University, The Netherlands. He also holds an MBA from Melbourne Business School and a Graduate Diploma in Resource Law from Melbourne Law School.

Victoria Jackson manages exploration and development of the territory’s energy resources. A present focus of her role is to steer the government’s regulatory reform agenda to move towards a well-designed environmental regulation that is rigorous, flexible, and outcomes focused.

Previously, Victoria was Government Relations Advisor for the oil and gas industry where she supported company business delivery through communicating with government, the community, and industry stakeholders.

Victoria also worked as a Director in the Western Australian Government’s resource development agency. Facilitating government approvals for major projects, she was responsible for the provision of strategic leadership and policy direction across the department to deliver approvals for several key LNG and iron ore project developments.

Having graduated with a BSc in geology and a Diploma in cartography, she ran a consultancy for 10 years, providing technical services across the oil and gas and minerals sectors.


References

Hawke, A., 2014—Report of the Independent Inquiry into hydraulic fracturing in the Northern Territory. 28 November 2014. Darwin: Hydraulic Fracturing Inquiry.