Today Resources Minister Madeleine King released the Federal Government’s “Roadmap for Establishing a Decommissioning Industry” which outlines a plan for recycling Australia’s offshore oil and gas infrastructure.
Friends of the Earth Melbourne (FoEM) welcomes the release of the Roadmap and is encouraged to see a plan in development after decades of inaction. However, despite some heartening elements, the Roadmap contains significant omissions and weaknesses.
The most urgent of these are:
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A lack of commitment to meaningful regulatory reform. Australian regulations governing decommissioning are not consistent with international best practice. The Roadmap does not make concrete commitments to rectify this.
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A realistic financial mechanism to raise funds for decommissioning. The Roadmap acknowledges that the cost must be borne by the industry but offers no detail on how this will be managed.
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Dedicated, purpose built decommissioning facilities for the recycling of offshore infrastructure. The Roadmap acknowledges the need for infrastructure investment but claims there is no Australian port with capacity for all decommissioning requirements.
FoEM believes that if the Resources Minister is serious about protecting Australian communities and ecosystems she should:
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Commit to regulatory reform that brings Australia in line with international best practice, and a regulator empowered and encouraged to fine and prosecute bad actors. Australia is the only developed petrostate with no minimum well plugging and abandonment requirements. The statutes and regulations governing decommissioning are permissive and require strengthening.
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An extension of the offshore petroleum cleanup levy to pay for standardised industry requirements like specialised facilities. Additionally, the introduction of bonds - similar to those already required from offshore wind projects - would ensure money is set aside for decommissioning.
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Specialised decommissioning facilities in well developed port areas. For South East Australia a facility in Geelong would service the decommissioning requirements of all fossil fuel companies operating in the Bass Strait.
Quotes attributable to Stan Woodhouse, FoEM Offshore Gas Campaigner:
“ExxonMobil proposes to use Barry Beach Marine Terminal in Corner Inlet - an ecologically and culturally significant area containing Ramsar listed wetlands - to break down topsides contaminated with hydrocarbons, radioactive materials, industrial solvents and asbestos. In the absence of clear regulation we can expect cowboy activity from one of the most polluting industries in the world. Holding them to a low environmental standard sets a dangerous precedent for the future of the Australian decommissioning industry.”
“In South Eastern Australia where rigs are due for decommissioning neither Government nor Industry are prepared for the job. A Roadmap without clear detail and set dates merely serves to kick the can further down the road.”
“Decommissioning is expensive and offers no return on investment. Companies catering to shareholder value will naturally try to cut corners. By extending the offshore clean up levy, the Australian Government can ensure the right thing gets done”
Key Facts:
The Federal Resources Minister today released the "Roadmap for Establishing a Decommissioning Industry"
The roadmap does not establish global best practice for Australia.
Australia needs purpose built decommissioning facilities and strong regulation to ensure that rigs are fully removed and recycled at the end of their life.
About us:
Friends of the Earth Melbourne has a 50 year history campaigning for climate and social justice issues.
The No More Gas campaign has a proud track record of securing powerful policy outcomes that benefit the planet and people.
Contact details:
Stanley Woodhouse 0484 608 625