The ruling could also have ramifications for other projects.
Lawyer Patrick Pearlman says other decisions made by the EPA could be called into question.
"My understanding is that there are a number of other EPA proceedings in which questions about section 12 interests arose and I've got a number, something like 40 running around in my head, where that question applies," he said. "Whether or not it has any fallout from that, I suppose, is probably something for Parliament."
The Wilderness Society hopes the court ruling will be the end of any development at James Price Point, and says it will fight any further development applications.
The Greens have also called on the Government to abandon any future attempts to industrialise the site but Mr Barnett says the government will most likely re-submit its plans to the EPA.
The Premier is confident the original approval will stand.
"Most fair-minded people would acknowledge that the environmental decision itself is correct, what was invalid is the actual process," he said.
The State Government has been pushing ahead with plans to compulsorily acquire the land.
It plans to secure almost 3,500 hectares of land on the coast north of Broome in case other companies would like to pursue the development.
Woodside, with its partner Shell, is believed to be pursuing floating LNG technology for its Browse Basin gas, an offshore processing option.
Photo Damian Kelly
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Woodside to use floating LNG technology to process Browse Basin gas
ReplyDeleteWoodside has announced it will proceed with plans to use floating LNG technology to process gas from the Kimberley's Browse Basin.
The oil and gas giant has told the Australian Stock Exchange it plans to use Shell's floating LNG technology.
In April, Woodside abandoned plans to process gas onshore at a proposed gas hub at James Price Point north of Broome, saying it would not be commercially viable.
Today's FLNG decision requires approval from Woodside's Browse joint venture partners - Shell, BP, MMI and PetroChina.
The West Australian Treasurer Troy Buswell says it is extremely disappointing that Woodside has decided to develop its gas offshore.
Mr Buswell says he understands the company's decision, but he is not happy about it.
"Make no mistake, this is not a win for Western Australia, and it's certainly not a win for those in WA who now will have lost the opportunity to supply goods and services into a shore-based LNG facility," he said.
The WA Premier Colin Barnett has been pushing for the gas to be brought onshore.
But, he has run into further problems after the state's Chief Justice yesterday ruled the environmental approvals process for the proposed $40 billion gas hub was 'unlawful' and invalid.
Earlier this year, the Premier warned Woodside's joint venture partners that the environmental assessment would be different if the gas was processed offshore.
"One third of that gas is [in] Western Australia, the atoll out there, the islands, they are West Australian," he said.
"The whole environmental assessment is going to be totally different.
"Also, it should not be assumed that the retention of Commonwealth leases automatically means the same treatment of state leases.
"We will look at this project, if it goes offshore, if that's what the proponents want, entirely from square one."
'Vital to process gas'
Federal Resources Minister Gary Gray, a former Woodside executive, says while it is unfortunate the gas will not be processed on West Australian shores, it is vital it is extracted.
"It's 40 years ago almost exactly since these gas fields were discovered and both governments, Commonwealth and State, have been enthusiastic to see it developed," he said.
"I think that the State Government did everything right to encourage it to come onshore but unfortunately the project partners - the joint venture - determined they didn't want to invest in an onshore option so I think it's good that it now goes forward on this next idea."
Mr Gray says the technology, which is is being developed by Shell for its Prelude and Concerto gas fields off the North West coast of WA, is essential to enable companies to remain cost competitive.
"We need the productivity step change that comes from this technology," he said.
"We need the capital efficiency that comes from this technology.
"Our LNG markets in northern Asia are under threat from pipeline gas from Russia and from LNG out of East Africa and North America."
Mr Gray says he is not sure if the gas will get to market any quicker as a result of the technology but it will be at the right price.
He says he also believes it is still worthwhile for the West Australian government to push with its plans to make James Prices Point a supply base for oil and gas companies.
'Protection needed'
Environmental advocacy group Environs Kimberley says it has been a momentous couple of days for those campaigning against the gas hub.
Director Martin Pritchard says he is confident James Price Point has been saved from industrialisation.
"We're very glad that we can now move on to protecting that area of the coast and making sure that all the values that are there like the humpback whale calving grounds, the bilbies and the monsoon vine thickets are protected into the future," he said.
Greens use 'unlawful' gas hub approval to oppose handing more environmental power to states
ReplyDeleteThe Greens are using the court ruling that the approval process for the controversial Kimberley gas hub was unlawful, to argue against handing more environmental power to the states and territories.
Yesterday, Western Australia's Chief Justice Wayne Martin found three of the board members of the state's Environmental Protection Authority (EPA) participated in the approval process despite declaring conflicts of interest.
The $40 billion gas hub project, north of Broome, was given the go ahead in the final stage by the EPA's chairman alone.
In the ruling, the environmental approval was found 'unlawful' and invalid.
The Coalition's policy would give states and territories more power to make grant environmental approvals without federal involvement.
The Greens leader Christine Milne says the gas hub ruling shows that should not happen.
"I think everybody should go and read the judgement on James Price Point and just see how Colin Barnett oversaw a process which allowed conflicts of interest with shareholders in Woodside, with people directly involved in this business, to be able to make decisions," she said.
"They were allowed to input to the decision after their conflicts of interest were known."
The spokeswoman for the Broome Community No Gas Campaign, Nik Wevers welcomed the court decision but says the ruling brings other decisions into doubt.
"We were delighted because it justified or validated every concern that we'd raised over the last couple of years," she said.
"We had grave concerns over the EPA decision making.
"We'd certainly be asking, well how many decisions have been made by the EPA where the board members have had a conflict of interest?
"I'm certain that there will be a number of projects that will go back to the drawing board to make some assessment about any approvals or even knock backs that have been made."
New blow to Western Australia's plans for onshore gas hub in the Kimberley
ReplyDeleteWEST Australian Premier Colin Barnett's push to keep the Browse gas project onshore has suffered another blow, with lead proponent Woodside recommending a floating offshore project to its joint venture partners.
The Perth-based oil and gas giant earlier this year indefinitely shelved plans to build a multi-user gas processing hub at James Price Point, north of Broome - despite having already cleared state environmental approval hurdles - saying it would consider other development scenarios including floating LNG.
WA's Supreme Court yesterday ruled that environmental approval “unlawful”.
Today, Woodside said it had resolved to recommend to its Browse joint venture participants - Japan's Mitsui, PetroChina, Shell and BP - to use floating LNG (FLNG) technology to commercialise the project's three gas fields.
“This concept would involve using Shell's FLNG technology and Woodside's offshore development expertise for the Browse LNG development,” the company said in a statement.
“The selection of FLNG as the development concept requires the approval of the Browse joint venture participants before progressing through to the basis of design phase.”
Mr Barnett has repeatedly said he favoured an onshore project to floating LNG because it would bring more benefits to the state, including jobs.
He also has concerns about the safety of FLNG, specifically the logistics of evacuating the big purpose-built vessels far off the coast when cyclones hit.
Woodside's recommendation comes after WA's Chief Justice Wayne Martin yesterday ruled that the state's environmental approval for the gas processing hub was unlawful.
The Wilderness Society, and Goolarabooloo elder Richard Hunter, had argued conflicts of interest in the Environmental Protection Authority (EPA) assessment process resulted in just one EPA board member - chairman Paul Vogel - making the final decision.
They also said the state's then-environment minister Bill Marmion had erred by granting his approval despite the conflicts. Chief Justice Martin agreed with both arguments.
Woodside said today it had evaluated alternative development concepts for Browse, including a pipeline to existing facilities in the Pilbara and a smaller onshore project in the Kimberley.
Chief executive Peter Coleman said it was pleasing that Woodside had been able to complete the evaluation of alternative development concepts quickly.
“Through this review, a compelling case has emerged for floating LNG as the best option for early commercialisation of the world-class Browse resource,” Mr Coleman said.
Another step closer to Browse FLNG
ReplyDeleteWest Australian Premier Colin Barnett's push to keep the Browse gas project onshore has suffered another blow, with lead proponent Woodside recommending a floating offshore project to its joint venture partners.
The Perth-based oil and gas giant earlier this year indefinitely shelved plans to build a multi-user gas processing hub at James Price Point, north of Broome - despite having already cleared state environmental approval hurdles - saying it would consider other development scenarios including floating LNG.
On Monday, WA's Chief Justice Wayne Martin handed down his finding in a Supreme Court challenge to the environmental approval, deeming it unlawful.
The Wilderness Society, and Goolarabooloo elder Richard Hunter, had argued conflicts of interest in the Environmental Protection Authority (EPA) assessment process resulted in just one EPA board member - chairman Paul Vogel - making the final decision.
They also said the state's then-environment minister Bill Marmion had erred by granting his approval despite the conflicts. Chief Justice Martin agreed with both arguments.
And on Tuesday, Woodside said it had resolved to recommend to its Browse joint venture participants - Japan's Mitsui, PetroChina, Shell and BP - to use floating LNG (FLNG) technology to commercialise the project's three gas fields.
"This concept would involve using Shell's FLNG technology and Woodside's offshore development expertise for the Browse LNG development," the company said in a statement.
"The selection of FLNG as the development concept requires the approval of the Browse joint venture participants before progressing through to the basis of design phase."
Shell is a leader in FLNG and is using the technology to develop its Prelude and Concerto gas fields off the coast of Western Australia.
Woodside said it had evaluated alternative development concepts for Browse, including a pipeline to existing facilities in the Pilbara and a smaller onshore project in the Kimberley.
Chief executive Peter Coleman said it was pleasing that Woodside had been able to complete the evaluation of alternative development concepts quickly.
"Through this review, a compelling case has emerged for floating LNG as the best option for early commercialisation of the world-class Browse resource," Mr Coleman said.
Mr Barnett has repeatedly said he favoured an onshore project to floating LNG because it would bring more benefits to the state, including jobs.
He also has concerns about the safety of FLNG, specifically the logistics of evacuating the big purpose-built vessels far off the coast when cyclones hit.
Warren Mundine doesn't understand NT issues, says Central Land Council chair Maurie Ryan
ReplyDeleteTHE chair of one of the nation's biggest land councils has attacked Tony Abbott's plan to appoint Warren Mundine as the head of a prime ministerial indigenous council if the Coalition wins the next election.
Central Land Council chair Maurie Ryan said the members of the land council found it “unacceptable that policy affecting them may be dictated by somebody who doesn't understand the issues affecting them”.
“Unfortunately Mr Mundine seems to be unaware of the significant changes made in recent years and he needs to update his knowledge of the current situation in the Northern Territory,” Mr Ryan said.
Mr Ryan said the former ALP president's four fundamental principles of governance, land ownership, social stability and openness provided nothing new.
“These are issues that we have all been working on for a long time, not in city board rooms but out on the ground in the bush,” he said.
“And things have moved on. For instance, in the last few years, hundreds and hundreds of leases have been executed on Aboriginal land.
“For the first time in history, governments and other organisations pay rent for land. And a resident can apply for a lease to build a house any time they like. They always could, but nobody has that sort of money to build a nice new house unfortunately.
“Yes, there is dysfunction. It's closely related to alcohol abuse and poverty.
“Alcohol abuse is a problem for many Aboriginal people and is certainly not confined to Aboriginal land. Tackling alcohol supply and providing some decent rehabilitation services and other concrete assistance might help us rather than this constant rhetoric about social dysfunction.
“We have good working relationships with both the current Minister for Aboriginal Affairs, Jenny Macklin and the shadow minister Nigel Scullion,” Mr Ryan said.
“We might not always agree with them but we do know they understand the realities of our situation in the Northern Territory.
“Regardless of the outcome of the election, I would like to invite Warren Mundine to come up and be properly briefed about the issues.”