petroleum reserved block...

Petroleum Reserved Block

Policy

July 2019

Petroleum Reserved Block Policy

1 BACKGROUND

In April 2018 the Northern Territory Government accepted and committed to implement 135 recommendations made by the Scientific Inquiry into Hydraulic Fracturing of Unconventional Reservoirs in the Northern Territory (the Inquiry).

Recommendation 14.4 of the Inquiry’s Final Report requires that the following areas be declared reserved blocks under s 9 of the Petroleum Act, each with an appropriate buffer zone: (a) towns and residential areas (b) national parks (c) conservation reserves (d) areas of high ecological value (e) areas of cultural significance (f) Indigenous Protected Areas and (g) areas of high tourism value.

This document sets out the assessment criteria that will determine whether an area falls into one of the above categories and the process for declaring an area a reserved block.

A map of all the areas to be declared is at Attachment A. 49% of the Northern Territory will be covered by a reserved block.

2 CATEGORIES OF RESERVED BLOCKS

Category 1 – Parks and Reserves

An area falls in this category if:

(a) it has been declared by the Administrator under ss 12 or 24 of the Territory Parks and Wildlife Conservation Act 1978 (NT) (TPWCA);

(b) the Parks and Wildlife Commission has entered into an agreement in connection with s 74 of the TWPCA relating to the area;

(c) it is land described in s 5 of the TPWCA;

(d) it is land declared under the Cobourg Peninsula Aboriginal Land, Sanctuary and Marine Park Act 1981 (NT);

(e) it is land held by the Conservation Land Corporation;

(f) it is land established as a national park under the Nitmiluk (Katherine Gorge) National Park Act 1989 (NT);

(g) it is Tjuwaliyn (Douglas) Hot Springs Nature Park; or

(h) it is Kakadu National Park or Uluru-Kata Tjuta National Park.

The parks and reserves listed in Category 1 at Attachment B fall within this definition. Buffer zones will be identified following an environmental assessment of the area, which must occur prior to the commencement of any petroleum activity.

Category 2 – Towns and residential areas

An area falls in this category if it is (a) within a 2km buffer of any gazetted town, (b) the Katherine or Alice Springs municipality, including current and future bore fields and the Alice Springs airport; or (d) a community on Aboriginal land under the Aboriginal Land Rights Act (ALRA) that the Land Councils recommend becomes a reserved block.

The areas listed in Category 2 at Attachment B will be declared. Towns and buffers that have already been declared are not listed.

Individual residences outside gazetted towns, including small outstations and pastoral homesteads, are protected by the Code of Practice: Onshore Petroleum Activities in the Northern Territory (the Code). The Code states that there must be no petroleum infrastructure (including wells and pipes)


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within 2 km of a “habitable dwelling”, which was defined by the Inquiry and is included in the Code to mean “all buildings or premises where people reside or work, schools and associated playgrounds, permanent sporting facilities and hospitals or other community medical facilities”. The Code is legally enforceable via the Petroleum Act.

Category 3 - High conservation value

An area falls in this category if it is a site of conservation significance (SOCS). 67 SOCS have been identified to date by NT Government scientists. These are listed in Category 3 at Attachment B. Those sites were selected following work done by the Biodiversity Conservation Unit in the Department of Natural Resources, Environment, The Arts and Sport in 2008. The Department released a comprehensive report entitled Recognising sites of conservation significance for biodiversity values in the Northern Territory. The sites protect the following biodiversity values: threatened species, wildlife aggregations, wetlands, endemic species, and botanical significance. The report explains the scientific methodology that was used to select the sites. A 2km boundary was included in the designation of the site area to ensure all conservation values were taken into account. No additional buffer zone is included.

There may be other sites of high ecological value in the Northern Territory. Government will undertake a SREBA in the Beetaloo sub-basin before any production activities are approved. The SREBA will involve the identification of areas to protect similar biodiversity values that are protected by the existing SOCS. Those SOCS will be fully protected.

Category 4 - Indigenous Protected Areas (IPAs)

An area falls into this category if it is subject to an agreement between Traditional Owners and the Commonwealth Government to promote biodiversity and cultural resource conservation. The area will become a proposed reserved block only when it has been officially dedicated as an IPA by the Commonwealth Government. Areas that are proposed to be dedicated do not fall in this category. The areas to be granted under this category are listed in Category 4 at Attachment B.

Category 5 - Areas of cultural significance

Commonwealth legislation (the Native Title Act and ALRA) requires that Traditional Owners and petroleum companies reach an agreement before an exploration permit can be granted. Those agreements may identify culturally significant areas where petroleum activities cannot occur. At the request of the relevant Land Council or native title group, the Minister will declare those areas. It is important to note that areas of cultural significance are already protected by the current legislation, including the Northern Territory Aboriginal Sacred Sites Act, the Heritage Act, the Native Title Act and the ALRA.

Category 6 - High tourism value

The Inquiry did not define the phrase “areas of high tourism value”. Areas of high tourism value often fall within categories 1 - 5. For example, areas that tourists like to visit are often within towns, are parks or reserves, or sites of ecological significance.

Areas of “high tourism value” will be determined on a case by case basis. A person may make a submission to the Minister for Resources that an area is of “high tourism value” at any time. The Minister for Resources, acting on advice from the Minister for Tourism, will consider whether the area should be classified as such and will provide reasons for the decision.

Category 7 – No petroleum potential

The Inquiry recommended that Government not approve any application for an exploration permit in relation to areas that are not prospective for onshore shale gas. The NT Geological Survey in the


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Department of Primary Industry and Resources has identified areas that are not prospective using geological data. Those areas will be declared reserved blocks.

Exempted areas

This policy does not apply to existing operating and production licences and retention licences, which are over conventional resources that have been operating for decades and provide an energy source to Alice Springs.

3 A STAGED DECLARATION PROCESS

The areas in Attachment A will be declared in tranches. The point at which an area will be declared depends on (a) the category of the area (b) whether the area overlaps a granted exploration permit (EP), and (c) whether the area is on ALRA land. The decision tree at Attachment C shows how the tranche for each area was determined. The table at Attachment B shows the tranche each area falls in to.

The areas in Tranche 1 are from Categories 1, 2, 3 and 7. They do not overlap any granted EPs and, except for Tjuwaliyn (Douglas) Hot Springs Nature Park, are not on ALRA land. Stage 1 areas will be declared in the near future.

Tranche 2 comprises jointly managed parks and reserves on and off ALRA land. These parks and reserves will be declared as soon as the relevant Board of Management for the park or reserve has been notified of the proposed declaration.

Tranche 3 comprises areas that overlap granted exploration permits. Government will negotiate with the relevant petroleum companies regarding the relinquishment of these areas and declare reserved blocks accordingly.

Tranche 4 will occur when the Land Councils advise the Minister for Resources that either:

(a) they support the declaration of proposed reserved blocks on ALRA land; or

(b) they have not consented to the grant of an EP under s42(1) of the ALRA.

The areas to be granted in Tranche 4 comprise approximately 60% of the total area to be declared.


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ATTACHMENT A

This map is available in greater resolution at https://nt.gov.au/industry/mining-and-petroleum/land-tenure-and-availability/petroleum-reserved-blocks


ATTACHMENT B

Category Tranche 1 Immediate declaration

Tranche 2 Declare after notice to park board

Tranche 3 Declare after negotiation

Tranche 4 Consult with relevant Land Council

1 - Parks and Reserves

1. Adelaide River Foreshore Conservation Area 2. Alice Springs Desert Park 3. Anna’s Reservoir Conservation Reserve 4. Attack Creek Historical Reserve 5. Barrow Creek Telegraph Station Historical

Reserve 6. Berry Springs Nature Park 7. Blackmore River Conservation Reserve 8. Buffalo Creek Management Area 9. Butterfly Gorge Nature Park 10. Central Mount Stuart Historical Reserve 11. Channel Island Conservation Reserve 12. Channel Point Coastal Reserve 13. Charles Darwin National Park 14. Connells Lagoon Conservation Reserve 15. Cutta Cutta Caves Nature Park 16. Daly River (Mt Nancar) Conservation Area 17. Douglas River/Daly River Esplanade

Conservation Area 18. Dulcie Range National Park (RB57) 19. Elsey National Park (RB66) 20. Fish River Gorge 21. George Brown Darwin Botanic Gardens 22. Heavitree Gap Police Station Historical

Reserve 23. Holmes Jungle Nature Park 24. Howard Springs Hunting Reserve 25. Howard Springs Nature Park 26. John Flynn Historical Reserve 27. John Flynn’s Grave Historical Reserve 28. Keep River National Park 29. Keep River National Park Proposed (part not

subject to a granted EP) 30. Kintore Caves Conservation Reserve 31. Knuckey Lagoons Conservation Reserve 32. Leaning Tree Lagoon Nature Park 33. Limmen Bight Marine Park 34. Limmen National Park (part not subject to a

granted EP) 35. Litchfield National Park 36. Mac and Rose Chalmers Conservation

Reserve 37. Newry Station Gouldian Finch Conservation

Covenant 38. Nitmiluk (Katherine Gorge) National Park

(RB67) 39. Oolloo Crossing Conservation Area 40. Ryan Well Historical Reserve 41. St Vidgeon Management Area (part not

subject to a granted EP) 42. Stray Creek Conservation Area

1. Alice Springs Telegraph Station Historical Reserve

2. Arltunga Historical Reserve 3. Barranyi (North Island) National Park 4. Black Jungle/ Lambells Lagoon

Conservation Reserve 5. Chamber’s Pillar Historical Reserve 6. Djukbinj National Park (comprises

various parks) 7. Finke Gorge National Park (the area

outside OL3 only) 8. Fogg Dam Conservation Reserve 9. Garig Gunak Barlu National Park

(Cobourg Marine Park) 10. Garig Gunak Barlu National Park (Gurig

National Park) 11. Giwining/Flora River Nature Park 12. Gregory’s Tree Historical Reserve 13. Harrison Dam Conservation Reserve 14. Ilytwelepenty/Davenport Ranges

National Park (including proposed park) 15. Judbarra/Gregory National Park 16. Kakadu National Park 17. Karlu Karlu/Devil’s Marbles

Conservation Reserve 18. Kuyunba Conservation Reserve 19. Mac Clark (Acacia peuce) Conservation

Reserve 20. Mary River National Park 21. Melacca Swamp Conservation Area 22. N’dhala Gorge Nature Park 23. Napwerte/Ewaninga Rock Carvings

Conservation Reserve 24. Native Gap Conservation Reserve 25. Ruby Gap Nature Park 26. Tnorala (Gosse Bluff) Conservation

Reserve 27. Trephina Gorge Nature Park 28. Uluru-Kata Tjuta National Park 29. Yperenye/Emily and Jessie Gaps

Nature Park

1. Bullwaddy Conservation Reserve 2. Caranbirini Conservation Reserve 3. Corroboree Rock Conservation

Reserve 4. Henbury Meteorites Conservation

Reserve 5. Illamurta Springs Conservation

Reserve 6. Keep River National Park Proposed

(part subject to a granted EP) 7. Lake Woods Conservation Covenant 8. Limmen National Park (part subject to

a granted EP) 9. Longreach Waterhole Protected Area 10. Owen Springs Reserve 11. Rainbow Valley Conservation

Reserve 12. St Vidgeon Management Area (part

subject to a granted EP)

Nil.


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43. Tennant Creek Telegraph Station Historical Reserve

44. Territory Wildlife Park 45. Tjoritja/West MacDonnell National Park (RB2) 46. Tjuwaliyn (Douglas) Hot Springs Nature Park 47. Tree Point Conservation Area 48. Umbrawarra Gorge Nature Park 49. Victoria River Depot Historical Reserve 50. Watarrka National Park (RB69) 51. Windows on the Wetlands Visitors Centre 52. Woodgreen Conservation Reserve

2 – Towns and Residential Areas* Towns and buffers that are already covered by reserved blocks are not listed

1. 2km buffer around Nightcliff 2. Adelaide River 3. Alice Springs Airport 4. Alice Springs municipality 5. Batchelor 6. Borroloola 7. Brocks Creek (including 2km buffer) 8. Burrundie (including 2km buffer) 9. Finke 10. Fleming (including 2km buffer) 11. Hart Range (including 2km buffer) 12. Hatches Creek 13. Jabiru 14. Kalkarindji 15. Katherine municipality (all areas except where

EP167 is granted) (no buffer) 16. Maranunga 17. Mataranka 18. Newcastle Waters 19. Pine Creek (including 2km buffer) 20. Rocky Hill Bore Field (overlapping granted

EP) 21. Roe Creek Bore Field 22. Ti Tree 23. Timber Creek 24. Union Town (including 2km buffer) 25. Urapunga 26. Yulara

Nil. 1. 2km buffer around Newcastle Waters 2. Daly Waters (including 2km buffer) 3. Elliott (including 2km buffer) 4. Katherine municipality (where granted

EP167 overlaps) (no buffer) 5. Larrimah (including 2km buffer) 6. Top Springs (including 2km buffer)

1. 2km buffer around Alice Springs 2. 2km buffer around Tennant Creek 3. 2km buffer around Mataranka 4. 2km buffer around Kalkarindji 5. 2km buffer around Timber Creek 6. 2km buffer around Finke 7. 2km buffer around Urapunga 8. 2km buffer around Jabiru 9. 2km buffer around Hatches Creek 10. 2km buffer around Maranunga 11. 2km buffer around Borroloola 12. 2km buffer around Ti Tree 13. 2km buffer around Batchelor 14. 2km buffer around Adelaide River 15. 2km buffer around Yulara 16. Towns on Aboriginal land (to be discussed

with Land Councils)

3 – High Conservation Value (SOCS)

1. Chambers bay 2. Elkedra River floodout swamps 3. Frew River floodout swamps 4. Howard Sand Plains 5. Lake Sylvester System 6. Mary River Coastal floodplain 7. Mud Hut Swamp 8. Shoal bay 9. Wood Duck Swamp

Nil. 1. Andado and Snake Creek Lakes 2. Beddome Range and Wilyunpa

Tablelands 3. Birrindudu wetlands 4. Borroloola area 5. Cleland Hills and surrounds 6. Dulcie Range and surrounds 7. Eva Downs Swamp 8. George Gill Range and surrounds 9. Greater MacDonnell Ranges 10. Karina Creek paleodrainage system 11. Keep River Area

1. Adelaide River coastal floodplain 2. Alligator Rivers coastal floodplains 3. Anmatyerr North 4. Anson Bay and associated coastal

floodplains 5. Arafura Swamp 6. Blue Mud Bay and associated coastal

floodplains 7. Boucaut Bay and associated coastal

floodplains 8. Buckingham Bay and associated coastal

floodplains


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12. Lake Woods 13. Legune coastal floodplain 14. Limmen Bight and associated coastal

floodplain 15. McArthur River coastal floodplain 16. Mount Conner and surrounds 17. Nongra Lake 18. Rodinga Range and adjacent ranges 19. Tarrabool lake 20. Victoria River middle reaches and

Gregory Area 21. Waterhouse Range 22. Western Arnhem Plateau 23. Wollogorang and China Wall

sandstone ranges

9. Castlereagh Bay and associated islands 10. Cobourg Peninsula 11. Croker Island group 12. Daly River middle reaches 13. Darwin Harbour 14. Davenport and Murchinson Ranges 15. Elcho Island group 16. Finnis River coastal floodplain 17. Fog Bay 18. Gove Peninsula and north-east Arnhem

coast 19. Groote Eylandt group 20. Hyland Bay and associated coastal

floodplains 21. Lake Amadeus and Lake Neale 22. Lake Lewis and surrounds 23. Lake MacKay 24. Lake Surprise and the Lander River floodout

swamps 25. Maningrida coastal habitats 26. Mataranka thermal pools 27. Mount Liebig and surrounds 28. Newhaven Lakes 29. Petermann Ranges and surrounds 30. Sir Edward Pellew islands group 31. South-west Tanami Desert 32. Tiwi Islands 33. Uluru and surrounds 34. Wessel and English Company island groups 35. Yinberrie Hills

4 - IPAs Nil. Nil. 1. Angas Downs 2. Katiti Petermann 3. Yanyuwa (Barni - Wardimantha

Awara)

1. Anindilyakwa 2. Anindilyakwa – Stage 1 3. Dhimurru 4. Dhimurru – Stage 2 5. Djelk 6. Ganalanga-Mindibirrina 7. Laynhapuy - Stage 1 8. Marri-Jabin (Thamurrurr - Stage 1) 9. Marthakal 10. Northern Tanami 11. South-East Arnhem Land 12. Southern Tanami 13. Wardaman 14. Warddeken

7 – no petroleum potential

Areas that are not prospective where that (a) do not overlap a granted EP, and (b) are not on ALRA land.

Nil. Areas that are not prospective that overlap a granted EP.

Areas that are not prospective that are on ALRA land.


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ATTACHMENT C

Does the area satisfy the assessment criteria for one of the categories of

reserved block?

No

Do not declare

Yes

Is the area a park or reserve?

Yes

Does it overlap a

granted EP?

Yes

Negotiate

If the park or reserve is jointly managed, notify the Board of

Management.

Declare Reserved Block

(Tranche 3)

No

Is the park or reserve jointly managed?

Yes

Notify the Board of Management


(Tranche 2)

No


(Tranche 1)

No

Does the area overlap a granted EP?

Yes

Negotiate

Declare Reserved Blocks

(Tranche 3)

No

Does the area overlap Aboriginal land?

No


(Tranche 1)

Yes

Does the Land Council support declaration of the area?

Yes


(Tranche 4)

No

Did the Land Council consent to the grant of an EP under s42(1) of ALRA?

Yes

Minister considers application on the merits under the Petroleum Act

No


(Tranche 4)

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