Overview of the Water Provisions in Queensland's Petroleum Legislation

The emerging coal seam gas (CSG) industry has the potential to provide a large-scale energy province for Queensland. Aquifer impacts and management of associated by-product water, both in terms of quantity and quality, are pivotal considerations for the development of a sustainable CSG industry.Legislative changes have been introduced to ensure that the CSG industry manages potential groundwater impacts and beneficial reuse of the by-product water to a level acceptable to both government and the community.The relevant new pieces of legislation covering petroleum and coal seam gas activities include the Petroleum and Gas (Production and Safety) Act 2004 (P&G Act), Petroleum and Other Legislation Amendment Act 2004 (POLA Act), the Petroleum and Gas (Production and Safety) Regulation 2004 and the Petroleum Regulation 2004. Other relevant legislation includes the Petroleum Act 1923 (Petroleum Act) and Part 7AA of the Mineral Resources Act 1989 (Coal Seam Gas Regime). The P&G Act introduces a full regime for managing water rights. This includes provisions for monitoring and reporting on the effects that the taking of underground water under petroleum tenure has on other bores in the area. The P&G Act also imposes a æmake good obligationÆ on petroleum tenure holders, which requires the restoration of bores affected by the taking of water or the payment of compensation. These provisions represent a significant departure from the Petroleum Act, which says very little about water rights and does not specify restrictions on the taking of water under petroleum tenure. This paper attempts to outline the requirements and obligations of the P&G Act for the CSG industry in terms of underground water rights, development impact assessments, aquifer trigger thresholds, monitoring and reporting requirements, as well as the make good obligations.