the galilee basin story & what needs to change in queensland’s water act. tom crothers –...

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LEGACY OR TRAVESTY PROPERTY RIGHTS AUSTRALIA – 2015 CONFERENCE. The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services.

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Page 1: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

LEGACY OR TRAVESTYPROPERTY RIGHTS AUSTRALIA – 2015 CONFERENCE.

The Galilee Basin Story & What Needs to Change in Queensland’s Water Act.

Tom Crothers – Director – Stellar Advisory Services.

Page 2: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

How the Galilee Basin Story Unfolded:

In 2013 - report released on potential impacts of proposed Galilee Basin mega-coal mines on the Region’s water resources.

The “Draining the Lifeblood Report” looked at the potential impacts of all 9 mine proposals.

The Report partially addressed the Bligh and Newman Government’s inaction on the cumulative water impacts of these mining proposals.

The Report used publicly available information for 5 mines and also included projected impacts for the 4 additional mine proposals.

 

Page 3: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.What the Draining the Lifeblood Report found:

> 34 mine pits and >11 underground mines - if all 9 mines go ahead.

Dewatering of 4 approved mines could extract 1,375 GL of groundwater over their mine life - 2.75 Sydney harbours or > 700 years of stock and domestic supplies for the grazing industry.

Subsequent assessment reports has upgraded this extraction to 1,770GL.

Dewatering all 9 mines over their mine life could extract between 1523 - 2007 GL of groundwater (3.0 – 4.0 Sydney Harbours).

Alpha Mine Pit, Galilee Basin

 

Page 4: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What the Draining the Lifeblood Report found - Cont’d:

Freshwater use by initial 5 mines is 50 – 70 GL/annum.

Groundwater levels lowered across a 30kms X 100kms area by mine dewatering .

Groundwater levels to decrease an estimated 5 – 70 metres.

Groundwater supplies for 39 properties & 168 land parcels potentially impacted.

 

Page 5: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What the Draining the Lifeblood Report found - Cont’d:

> 500 bores (200 in mine lease areas) potentially impacted – this is the lifeblood of local landholders. 

Still a wide diversity of views on whether these mines will impact the Great Artesian Basin.

Page 6: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Recent Developments: Since Alpha Land Court Decision - approval given to Adani’s –

Carmichael mine – the biggest mine proposed for the Galilee Basin.

Carmichael Mine’s potential impacts include:o 750 GL of groundwater extracted by dewatering operations.

o 36 landholders bores affected.

o Groundwater Dependent Ecosystems in Doongmabulla Springs and Mellaluka Springs Complex impacted.

o Reduced riparian flows in the Carmichael River.

Page 7: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Recent Developments Cont’d: Predicted impacts on Mellaluka Springs Complex are: o 1 – 26 m drawdowns for Mellaluka, Stories and Lignum Springs. o Mellaluka Springs Complex will cease to flow and dry up.

Adani propose to do nothing about these impacts.

Predicted impacts on the Carmichael River are:o At least 65 springs – providing base flows to Carmichael River impacted.o 1 - 4m groundwater drawdowns near Carmichael River.o Reduced base flows in Carmichael River.

Page 8: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Recent Developments Cont’d:o Carmichael River - zero flow periods to increase 30 - 60%.

- base flows decreased by 1000ML/an.o Carmichael mine impacts to extend 10kms upstream and 25kms

downstream.

o River red gums and paperbarks may show dieback from hydrology changes.

Page 9: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What are the Key Water Related Concerns with the Galilee Basin Mines?:

Coordinator-General: - 5 mines approved without fully considering their

cumulative water impacts . - called for development of a Regional water balance model and assessment program – nothing has been done.

Federal Environment Minister - requires Galilee Coal to develop a Water Monitoring/Management Plan and Connectivity Research Plan for the GAB - aquifers. This is still a work in progress.

Undertaking these actions after the granting of environmental approvals - is akin to shutting the gate after the horse has bolted.

Page 10: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Key Concerns with the Galilee Basin Mines – Cont’d:

A Regional groundwater hydrology model – an essential tool in assessing cumulative impacts of these proposed Galilee Basin mines.

To date - no action on a Regional groundwater hydrology model for the Galilee Basin.

The Queensland Government still promotes its unqualified endorsement of the sustainability of the Galilee Basin mines and asserts:-

“The rigorous independent assessment processes undertaken by the Coordinator General has ensured that the Galilee Basin growth will occur in an environmentally responsible manner” and that “Queensland has world class standards when it comes to environmental approvals.

This is not true.

Page 11: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Key Concerns with the Galilee Basin Mines Cont’d:

dewatering licences for new coal mines

will require mine operators to sign “make good agreements”(MGAs) with landholders to remediate or compensate for any loss of groundwater caused by mining.

MGAs being offered to Galilee Basin landholders are totally unacceptable. GVK/Hancock’s MGAs do not comply with the Coordinator-General’s conditions for the identification of “unduly affected bores” or standard dispute resolution procedures.

Page 12: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Key Concerns with the Galilee Basin Mines - Cont’d:

MGAs invariably contain one-sided provisions that:

a) include insufficient baseline data requirements.b) impose compulsory confidentiality clauses.c) include “force majeure” waivers. b) allow the mining company the sole right to determine bore impacts;

andd) contain no provisions for water supplies post mining.

The Queensland Government has not ensured Galilee Basin landholders are getting a “fair go” when dealing with huge mining corporations in negotiating equitable “make good” agreements.

Page 13: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Landholder’s actions and Government’s reactions:

2013 – 3 landholders and the EDO appealed the GVK/Hancock Alpha Coal Mine draft Environmental Authority.

April 2014 - Land Court found a “more cautious approach” is needed to the approval of new mines in the Galilee Basin.

Land Court - recommended to Mines Minister that Alpha Mining lease be either: a) rejected, or b) be granted - subject to GVK/Hancock meeting certain conditions.

Page 14: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Landholder’s actions and Government’s reactions Cont’d:

Land Court also recommended the construction of additional groundwater monitoring bores and negotiation of “make good agreements” with impacted landholders.

Queensland Government’s response to the Land Court’s findings was :

the granting of conditional approval to another mega coal mine in the Galilee Basin - Adani’s Carmichael Mine.

Page 15: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

 Landholder’s actions and Government’s reactions Cont’d:

the passing the Mineral and Energy Resources (Common Provisions) Act.

progressing amendments to the Water & Mineral Resources Acts to grant miners a “statutory right” to take or interfere with “associated groundwater”.

Minister Cripps outlined the Alpha Coal Land Court decision supported his Water & Mineral Resources Acts amendments to grant miners a “statutory right to take groundwater”!!!!

Page 16: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Landholder’s actions and Government’s reactions Cont’d:

Palaszczuk Government – has stopped the proclamation of these legislative amendments.

Palaszczuk Government – has established a Water Engagement Forum for stakeholder consultation on proposed changes to the Newman Government’s water legislation.

Palaszczuk Government - has restored third party objection rights.

Page 17: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What Legislative Changes Need to be made to Queensland’s Water Management Frameworks:

removal of “statutory right to access and/or interfere with Associated Groundwater” for mining tenements.

removal of “statutory right to access and/or interfere with Associated Groundwater” for gas and petroleum tenements.

all water associated with Resources Industry operations dealt with under the Water Act.

reinstate landholder’s Water Act objection and appeal rights to the take of or interference with water, by anyone.

Page 18: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What Legislative Changes Need to be made to Queensland’s Water Management Frameworks Cont’d:

retain and strengthen the “Make Good Requirements” framework for the Resources Industry which:

o removes the “onus of proof” from landholders to demonstrate impacts.

o requires high integrity baseline assessments and data

monitoring operations can start.

o is equitable and fair to impacted landholders.

Page 19: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What Legislative Changes Need to be made to Queensland’s Water Management Frameworks Cont’d:

o includes “pre-determined triggers” for remedial action.

o requires the Resources sector to meet all professional costs for technical and legal support to landholders; and

o provides post operations protection of landholder’s water supplies.

These are all matters that need to be urgently addressed in a new MGA Framework.

Page 20: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What changes is the Palaszczuk Government proposing to make to WROLA and other legislation that impacts on water management:

Recent consultation with the Water Engagement Forum indicates the following changes are proposed:

o reinstating the ESD Principle to the Water Act. o removing the Water Development Option provisions,o replacement with a Strategic Water Infrastructure

Commitment; ando reinstating landholder’s and third party objection rights in

the SD&PWO Act.

No other changes of any consequence are proposed .

Page 21: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What changes is the Palaszczuk Government proposing to make to WROLA and other legislation that impacts on water management cont’d:

What does this mean for the Galilee Basin’s landholders? - consistent groundwater rights and obligations for future mining and CSG projects.

- statutory rights to take groundwater for coal mine dewatering or release of CSG are automatically granted.

- landholder’s will have no Water Act objection rights to the granting of Associated Water rights.

Page 22: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

What changes is the Palaszczuk Government proposing to make to WROLA and other legislation that impacts on water management cont’d:

- take of groundwater for fracking or coal washing (Non Associated Water) will require a Water Act authorisation.

- exemptions for low impact activities and 2 year transition period for P&G tenure holders to secure water authorisations - are proposed.

- some references to “Make Good Arrangements” but no proposals to address current deficiencies in the MGA framework.

Page 23: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

Other Potential Risks to Galilee Basin Landholders:

Potential for Galilee Basin coal mines to withdraw their mine lease applications and resubmit under new legislation.

This would allow them a “statutory right to take groundwater” and to sidestep the need to:

a) secure a Water Act authorisation, or

b) deal with landholder objections to their take of groundwater.

Page 24: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

In Summary: The Galilee Basin mega-coal mine - initiated by Bligh

Government, progressed by Newman Government and still being endorsed by Palasczcuk Government.

Both sides of the political fence are culpable for what has and will happen in the Galilee Basin.

The need for Queensland to develop its natural resources to sustain the quality of living that Queenslanders enjoy is acknowledged.

Page 25: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

In Summary Cont’d:

Balance between the social and economic benefits from the development of these resources and the social, economic and environmental costs of their development, is needed.

The lack of transparency, integrity and independent scientific rigor in assessing the impacts of the Galilee Basin coal mines, should not be discounted or forgotten.

The Queensland Government’s and Mining sectors’ lack of respect for, or equitable treatment of, Galilee Basin landholder’s should not be ignored and should not be allowed to continue.

Page 26: The Galilee Basin Story & What Needs to Change in Queensland’s Water Act. Tom Crothers – Director – Stellar Advisory Services

The Galilee Basin Story.

I will defer to your wise judgement to decide whether the Queensland Government’s assessments of the impacts of the mega coal mines and its dealings with the Galilee Basin landholders, are either : a Travesty or a Legacy!!!