Australia: Ongoing greentape reduction reforms for resource activities in Queensland

Overview

As part of the ongoing reforms introduced by the Environmental Protection (Greentape Reduction) and Other Legislation Amendment Act 2012 (the Greentape Reduction Act), the Queensland Government has introduced further changes to the Environmental Protection Regulations 2008 (the EP Regulations) to standardise financial assurances for ERAs and streamline assessment of low risk petroleum activities.

The Environmental Protection Amendment Regulation (No. 1) 2013 implements the following changes:

• Introduction of the Financial Assurance under the Environmental Protection Act 1994 Guidelines (the Guidelines) which is intended to outline when financial assurance is to be required for resource activities and some prescribed ERAs, the amount and form of financial assurance and how the requirement can be discharged; and
• Introduction of Eligibility Criteria for petroleum activities to operate under Standard Conditions developed by the Department of Environmental and Heritage Protection (DEHP).

Financial assurances

The holder of an environmental authority (EA) for resource activities must pay financial assurance to the administering authority to take account of the potential cost of taking action to prevent or minimise environmental harm or to rehabilitate the environment, should the holder fail to meet their environmental obligations under the EA.

Financial assurance may also be required for some prescribed ERAs.

The requirement to provide financial assurance is included as a condition of an EA.

The amount of financial assurance required is based on the risk of environmental harm, the likelihood that rehabilitation or restoration will be required once the activity ceases and the environmental record of the person carrying out the activity.

The new Guidelines are intended to more clearly outline the circumstances in which financial assurance may be required and set criteria to be used to determine the amount and form of financial assurance.

Eligibility Criteria and Standard Conditions for petroleum activities

The reforms under the Greentape Reduction Act provide for the introduction of Eligibility Criteria and Standard Conditions by DEHP for certain activities. Where an operator is able to verify that the activity will meet the Eligibility Criteria and Standard Conditions, the Standard Conditions will automatically apply without the need for an assessment of the proposed activity (Standard Application).

DEHP have introduced Eligibility Criteria and Standard Conditions for petroleum activities. Where the Eligibility Criteria is met, but one or more of the Standard Conditions require variation, an application to vary the Standard Conditions can be made to DEHP (Variation Application). The assessment of a Variation Application is limited to the change being sought, and does not require any public notification.

Activities that do not meet the Eligibility Criteria require an application to be made which will be subject to a full assessment by DEHP, public notification and submission processes (Site Specific Application).

It is intended that the Eligibility Criteria and Standard Conditions for petroleum activities will reduce the regulatory burden and associated costs on the petroleum industry and the administering authorities.

Release of Eligibility Criteria and Standard Conditions for other ERAs

Public consultation for Eligibility Criteria and Standard Conditions yet to be released for ERAs other than resource activities is intended to occur over the coming months.

We encourage industry to consider and make submissions regarding relevant Eligibility Criteria and Standard Conditions before they are formally adopted by DEHP.

We will provide further updates regarding draft Eligibility Criteria and Standard Conditions as they are released.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.