That is how the cookie crumbles A.F.

Fracking ban leaves Forrest looking at court

Fracking bans leave Forrest eyeing court

Andrew Henry Forrest. Picture: Colin Murty

• ANDREW BURRELL

  WA CHIEF REPORTER

  @AndrewBurrell7

  
• 11:00PM DECEMBER 2, 2018
• 2 COMMENTS

Andrew Forrest has been barred from gas fracking in Western Australia’s Kimberley region in a move that could prompt the mining magnate to consider legal action against the McGowan government.

A spokeswoman for Mines and Petroleum Minister Bill Johnston told The Australian that none of the eight onshore licences held by Mr Forrest’s Squadron Energy in the Kimberley could be fracked under new regulations being put in place.

This appears to have killed off Mr Forrest’s ambition to spearhead the development of an onshore gas industry in the Canning Basin, which holds Australia’s biggest reserves of shale gas.

The Perth businessman could follow in the footsteps of fellow WA billionaire Gina Rinehart, who sued the Victorian government over its statewide moratorium on exploring for unconventional gas.

Mrs Rinehart’s part-owned Lakes Oil sought $2.6 billion in lost future earnings, arguing that the ban prevented it from using six permits to explore for gas in Gippsland and Victoria’s southeast. It lost the Supreme Court case in September.

Mr Forrest’s privately owned Squadron Energy and its 20 per cent partner, Goshawk Energy, have been issued eight exploration licences covering more than 75,000sq km of the Canning Basin.

Five are special prospecting authorities that allow initial exploration activities over an area not under title. The other three are exploration permit authorities, also a lesser form of title.

Premier Mark McGowan announced last week that fracking would be permitted in some parts of WA, including in the Kimberley, but only on land where full exploration or production licences had been granted.

Since the changes were unveiled last week, sources close to Mr Forrest have maintained that three of the joint venture’s titles could be fracked, but the government says that is incorrect.

“The Squadron/Goshawk JV doesn’t hold any titles where fracking will be allowed,” said a spokeswoman for Mr Johnston.

A Squadron Energy spokeswoman said yesterday the joint venture “looks forward to continuing to engage with the minister and the department to better understand the breadth of the proposed policy and how it will be implemented”.

Goshawk general manager Andrew Kirk said the joint venture had been building a presence in the Canning Basin since 2012.

“We are working with the WA government to understand how its decision to lift the fracking moratorium in respect of certain areas will be implemented, and how this will impact the SGJV’s work plans,” he said.

Mr McGowan said last week that a 12-month inquiry by an expert panel had found fracking for unconventional gas could be done safely if it was accompanied by strict regulation.