the real test... redp, page-17

SA staying at the top of the pack
Friday, 17 July 2009
Bevis Yeo

SOUTH Australia has passed amendments to its petroleum legislation that should see it maintain its position as Australia’s most efficient legislative framework.

The passage of the Petroleum (Miscellaneous) Amendment Bill 2009 late Wednesday is aimed at streamlining the processes involved with the petroleum, gas storage and geothermal industries.

The renamed Petroleum and Geothermal Energy Act also takes coal gasification under its purview with the definition of petroleum extended to cover it.

Stakeholders consulted during the consultation process for the bill include all licensees operating in South Australia at the time, the Environmental Protection Authority and non-industry groups such as the Natural Resources Management Boards and various peak environmental groups.

South Australia Minister for Mineral Resources Development Paul Holloway noted that the discussion of carbon capture and storage at last week’s Ministerial Council on Mineral Petroleum Resources had underlined the fact that other states were also moving to change their legislation to facilitate CCS.

Opposition spokesman Adrian Pederick – the member for Hammond – said the bill brought the coal gasification, petroleum, energy and geothermal industries forward and also embraced the technology of capturing gas.

The Australian Petroleum Production and Exploration Association praised the amendment, saying that it provides greater certainty for investment in exploring and developing oil and gas projects in South Australia and establishes an effective legislative regime for greenhouse gas storage for the onshore oil and gas industry in South Australia.

“This is important legislation because it enshrines the sovereign rights of pre-existing oil and gas title holders, thus providing business certainty for continued investment in one of Australia’s largest onshore oil producing provinces, the Cooper-Eromanga Basin,” APPEA chief executive Belinda Robinson said.

She added that South Australia is recognised by both the petroleum industry and the Productivity Commission as having the country’s most efficient legislative framework and approvals process that minimised red tape and unnecessary delays.

“South Australia is the benchmark for constructive consultation processes, regulatory efficiency and policy action directed at maximising the ability of the oil and gas sector to deliver economic returns to the community, without compromising community and environmental standards.”

The state had last month emerged as the top Australian state in a global survey on the world’s oil and gas jurisdictions placing 17 out of 143 countries and states with respondents noting that its progressive mines department and low total royalties made it an attractive place for investment.