Federal Resources Minister’s grant to fracking company invalid
Local NewsThe Echo -December 29, 2021
Did not need to consider the risks of climate change
However, the court found that in this particular case, Federal Resources Minister Keith Pitt did not need to consider the risks of climate change when deciding to grant the public money to private company Imperial Oil & Gas to pursue limited exploration in the Beetaloo Basin.
It was found that the greenhouse gas emissions from the seven wells for which the grant was awarded were not significant, due to being solely for exploration for fracking.
Co-Director of the Environment Centre NT, Kirsty Howey, said this doesn’t close the door on the scrutiny of fossil fuel grants. ‘Fossil fuel subsidies are not a reasonable use of public money. Under Australia’s commitment to the global Glasgow Climate Pact, we need to phase out funding of new oil, gas and coal projects.
NT suffering significantly from the impacts of climate change
Ms Howey said the Northern Territory is already suffering significantly from the impacts of climate change, and this will only worsen unless we take drastic action. ‘Our own Environment Minister recently said that the Northern Territory may become uninhabitable for humans due to climate change. The public has an expectation that taxpayer money will not be used to accelerate climate catastrophe by funding projects that will release vast amounts of emissions, without due consideration of these risks.
‘Unfortunately, we’re being left behind in the global renewables transition by our government, which insists on propping up polluting fossil fuel projects with taxpayers’ funds.’
On 29 July 2021, the Environment Centre NT (ECNT), represented by the Environmental Defenders Office (EDO), commenced judicial review proceedings in the Federal Court challenging the lawfulness of the Beetaloo Cooperative Drilling Program and the grants to Imperial.
A critically important case
Director of Legal Strategy at EDO Elaine Johnson, said this case was critically important and put fossil fuel subsidies in the spotlight. ‘The findings reinforced that Federal Ministers have a legal obligation to make reasonable enquiries about the proper use of public money when making funding decisions of this nature.
‘In this case, the court found those reasonable enquiries didn’t extend to climate risk given the project does not involve extensive gas extraction and production.
‘Importantly, the door has been left open for climate risks to be considered in other decisions around the use of public funds for fossil fuel projects.
The Court heard in November that fracking the Beetaloo Basin could lead to a 13 per cent increase in Australia’s annual greenhouse gas emissions on 2020 levels, and fail to generate any economic benefit.
EDO argued on behalf of ECNT that the Minister was required to make reasonable inquiries into a range of matters before giving Imperial a large amount of taxpayer money, including how exploitation of the Beetaloo sub-basin would impact climate change and Australia’s ability to meet its Paris Agreement obligations.
Fracking the Beetaloo Basin would see a significant increase in global emissions
Ms Johnson said fracking in the Beetaloo Basin would see a significant increase in global emissions, so it is critically important that the government is held accountable for any decisions to use public funds for new gas in the Beetaloo.
‘This decision underscored the primacy of the rule of law, highlighting the need for the Federal Government to act appropriately and respectfully when litigation is on foot.’
Grants under this program are subject to the Public Governance, Performance and Accountability Act 2013 (Cth) which requires that the Minister not approve the expenditure unless he is reasonably satisfied that it is an efficient, effective, economical, and ethical use of public money.
Local NewsThe Echo -December 29, 2021
Sunrise in NT. Photo Max Christian via EDO.
In July 2021, Minister Keith Pitt announced that the first grants from the $50 million Beetaloo Cooperative Drilling Program would go to private company Imperial Oil and Gas to support three new exploration wells to help accelerate the development of gas projects in the Northern Territory.
The Federal Court has found that Mr Pitt’s decision to grant $21 million of public money to Imperial Oil & Gas to pursue fracking was invalid.
Federal Court Justice Griffiths found it was ‘legally unreasonable’ for the Minister to enter into contracts over the grants while they were the subject of court proceedings, an action which breached model litigation obligations.
In July 2021, Minister Keith Pitt announced that the first grants from the $50 million Beetaloo Cooperative Drilling Program would go to private company Imperial Oil and Gas to support three new exploration wells to help accelerate the development of gas projects in the Northern Territory.
The Federal Court has found that Mr Pitt’s decision to grant $21 million of public money to Imperial Oil & Gas to pursue fracking was invalid.
Federal Court Justice Griffiths found it was ‘legally unreasonable’ for the Minister to enter into contracts over the grants while they were the subject of court proceedings, an action which breached model litigation obligations.
Did not need to consider the risks of climate change
However, the court found that in this particular case, Federal Resources Minister Keith Pitt did not need to consider the risks of climate change when deciding to grant the public money to private company Imperial Oil & Gas to pursue limited exploration in the Beetaloo Basin.
It was found that the greenhouse gas emissions from the seven wells for which the grant was awarded were not significant, due to being solely for exploration for fracking.
Co-Director of the Environment Centre NT, Kirsty Howey, said this doesn’t close the door on the scrutiny of fossil fuel grants. ‘Fossil fuel subsidies are not a reasonable use of public money. Under Australia’s commitment to the global Glasgow Climate Pact, we need to phase out funding of new oil, gas and coal projects.
NT suffering significantly from the impacts of climate change
Ms Howey said the Northern Territory is already suffering significantly from the impacts of climate change, and this will only worsen unless we take drastic action. ‘Our own Environment Minister recently said that the Northern Territory may become uninhabitable for humans due to climate change. The public has an expectation that taxpayer money will not be used to accelerate climate catastrophe by funding projects that will release vast amounts of emissions, without due consideration of these risks.
‘Unfortunately, we’re being left behind in the global renewables transition by our government, which insists on propping up polluting fossil fuel projects with taxpayers’ funds.’
On 29 July 2021, the Environment Centre NT (ECNT), represented by the Environmental Defenders Office (EDO), commenced judicial review proceedings in the Federal Court challenging the lawfulness of the Beetaloo Cooperative Drilling Program and the grants to Imperial.
A critically important case
Director of Legal Strategy at EDO Elaine Johnson, said this case was critically important and put fossil fuel subsidies in the spotlight. ‘The findings reinforced that Federal Ministers have a legal obligation to make reasonable enquiries about the proper use of public money when making funding decisions of this nature.
‘In this case, the court found those reasonable enquiries didn’t extend to climate risk given the project does not involve extensive gas extraction and production.
‘Importantly, the door has been left open for climate risks to be considered in other decisions around the use of public funds for fossil fuel projects.
The Court heard in November that fracking the Beetaloo Basin could lead to a 13 per cent increase in Australia’s annual greenhouse gas emissions on 2020 levels, and fail to generate any economic benefit.
EDO argued on behalf of ECNT that the Minister was required to make reasonable inquiries into a range of matters before giving Imperial a large amount of taxpayer money, including how exploitation of the Beetaloo sub-basin would impact climate change and Australia’s ability to meet its Paris Agreement obligations.
Fracking the Beetaloo Basin would see a significant increase in global emissions
Ms Johnson said fracking in the Beetaloo Basin would see a significant increase in global emissions, so it is critically important that the government is held accountable for any decisions to use public funds for new gas in the Beetaloo.
‘This decision underscored the primacy of the rule of law, highlighting the need for the Federal Government to act appropriately and respectfully when litigation is on foot.’
Grants under this program are subject to the Public Governance, Performance and Accountability Act 2013 (Cth) which requires that the Minister not approve the expenditure unless he is reasonably satisfied that it is an efficient, effective, economical, and ethical use of public money.
The Government Is Handing Out $50 Million To Fund A Fracking Project—Here's What That Means
We explain what fracking is and why people are (rightfully) alarmed. -
We explain what fracking is and why people are (rightfully) alarmed. -
by Jess Pullar
01 DEC2021
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The Morrison Government will move forward with a $50 million cash injection which will go towards a controversial fracking project in Beetaloo and wider McArthur River Basins, an area where an estimated 60 Indigenous groups live.
It comes after a motion calling to halt funding for the Northern Territory based fracking project fell through—Labor ended up voting with the Liberals to approve the cash boost.
The decision was met with anger from the Greens Party and other environmental groups after months of campaigning against it when the grant was first announced in August. Per AAP, Greens Senator Lidia Thorpe claimed the alignment from both major parties was because they were beholden to donations from fossil fuel companies.
"If you really really care, you would listen to the traditional owners of the NT who don't want their country fracked... and to protect sacred sites and the environment," she told parliament this week.
The Greens Party reports the fracking project could add up to 13 per cent to Australia's total carbon emissions each year.
Getty
Social change organisation Get Up also commented on the controversial project.
"Traditional Owners across the Territory have united in the fight against fracking, making it abundantly clear that they do not consent to these fracking projects in the Beetaloo," GetUp First Nations Justice Director Larissa Baldwin said in a statement.
"Decision-makers should be acting to phase out fossil fuels, not handing out public money to prop them up."
To add, Protect Country Alliance Spokesperson Graeme Sawyer said the fracking project had the potential to unleash up to 1.4 billion tonnes of greenhouse gasses.
"That’s two and a half times the amount of Australia’s annual carbon emissions. It's an absolute outrage the Morrison Government is subsidising this industry with public money," he said.
What exactly is fracking?
Fracking, which is short for hydraulic fracturing, is where a mixture of water, sand and chemicals are injected into the ground in order to open cracks in underground rock. From the cracks, natural oils, gasses and geothermal energy are extracted by miners. Ultimately it boosts oil production in countries, subsequently keeping gas prices low.
But the negatives far outweigh the positives given its impact on the environment. Fracking requires large amounts of water, in turn reducing water quality in surrounding areas. To add, environmentalists say carcinogenic chemicals can escape during the drilling, which leads to contamination of groundwater at the fracking site.
It also effects people who live close to fracking sites—it causes reduced air quality, night sky pollution and a lot of noise.
Why is fracking happening in Australia?
As mentioned, fracking can be a lucrative operation given it ultimately boosts oil production. To add, the Morrison government has commited to what it calls a "gas-led" economy, meaning it plans to utilise the country's gas resources for electricity generation, heating and select manufacturing industries.
Despite the detrimental nature of fracking to the environment, it's clear Scott Morrison is all for it and will continue to do it.
Fracking projects like the one at the Beetaloo Basin also suggests more gas projects will be given the green light—per Climate News Australia, work on the Amadeus to Moomba Gas Pipeline (set to begin next year) will see gas transported from the NT all the way to the East Coast.
The organisation reiterates that this could have a negative impact on the ecosystems the pipeline runs through, in turn, posing a threat to the traditional owners of the land.
Why is fracking bad?
The natural gas produced via fracking is responsible for around 19 per cent of Australia's greenhouse gas emissions—the pollution that is causing the Earth's temperature to rise.
This statistic is an alarmingly large chunk considering the country is one of the world's biggest contributors to greenhouse gas emissions. In fact, 2019 data from the UN National Inventory Report revealed per capita, it produced 21 tons of the stuff—that's three times the global average.
As outlined above, fracking also reduces water and air quality, particularly in the areas it takes place. Distressingly, fracking sites like Beetaloo are located on First Nations land.
![]()
What can I do to stop fracking in Australia?
The best way to make a change is to educate yourself, share information and sign petitions or write a letter to your local MP who can escalate the matter to local government.
Get Up has a petition which you can sign here, and an open letter you can sign here.
![]()
Jess PullarJess Pullar is the Culture Editor (digital) of marie claire and ELLE. When she's not gazing at sunsets, she enjoys tucking into a green tea and re-watching 'Sex And The City'.
01 DEC2021
The Morrison Government will move forward with a $50 million cash injection which will go towards a controversial fracking project in Beetaloo and wider McArthur River Basins, an area where an estimated 60 Indigenous groups live.
It comes after a motion calling to halt funding for the Northern Territory based fracking project fell through—Labor ended up voting with the Liberals to approve the cash boost.
The decision was met with anger from the Greens Party and other environmental groups after months of campaigning against it when the grant was first announced in August. Per AAP, Greens Senator Lidia Thorpe claimed the alignment from both major parties was because they were beholden to donations from fossil fuel companies.
"If you really really care, you would listen to the traditional owners of the NT who don't want their country fracked... and to protect sacred sites and the environment," she told parliament this week.
The Greens Party reports the fracking project could add up to 13 per cent to Australia's total carbon emissions each year.
Getty
Social change organisation Get Up also commented on the controversial project.
"Traditional Owners across the Territory have united in the fight against fracking, making it abundantly clear that they do not consent to these fracking projects in the Beetaloo," GetUp First Nations Justice Director Larissa Baldwin said in a statement.
"Decision-makers should be acting to phase out fossil fuels, not handing out public money to prop them up."
To add, Protect Country Alliance Spokesperson Graeme Sawyer said the fracking project had the potential to unleash up to 1.4 billion tonnes of greenhouse gasses.
"That’s two and a half times the amount of Australia’s annual carbon emissions. It's an absolute outrage the Morrison Government is subsidising this industry with public money," he said.
What exactly is fracking?
Fracking, which is short for hydraulic fracturing, is where a mixture of water, sand and chemicals are injected into the ground in order to open cracks in underground rock. From the cracks, natural oils, gasses and geothermal energy are extracted by miners. Ultimately it boosts oil production in countries, subsequently keeping gas prices low.
But the negatives far outweigh the positives given its impact on the environment. Fracking requires large amounts of water, in turn reducing water quality in surrounding areas. To add, environmentalists say carcinogenic chemicals can escape during the drilling, which leads to contamination of groundwater at the fracking site.
It also effects people who live close to fracking sites—it causes reduced air quality, night sky pollution and a lot of noise.
Why is fracking happening in Australia?
As mentioned, fracking can be a lucrative operation given it ultimately boosts oil production. To add, the Morrison government has commited to what it calls a "gas-led" economy, meaning it plans to utilise the country's gas resources for electricity generation, heating and select manufacturing industries.
Despite the detrimental nature of fracking to the environment, it's clear Scott Morrison is all for it and will continue to do it.
Fracking projects like the one at the Beetaloo Basin also suggests more gas projects will be given the green light—per Climate News Australia, work on the Amadeus to Moomba Gas Pipeline (set to begin next year) will see gas transported from the NT all the way to the East Coast.
The organisation reiterates that this could have a negative impact on the ecosystems the pipeline runs through, in turn, posing a threat to the traditional owners of the land.
Why is fracking bad?
The natural gas produced via fracking is responsible for around 19 per cent of Australia's greenhouse gas emissions—the pollution that is causing the Earth's temperature to rise.
This statistic is an alarmingly large chunk considering the country is one of the world's biggest contributors to greenhouse gas emissions. In fact, 2019 data from the UN National Inventory Report revealed per capita, it produced 21 tons of the stuff—that's three times the global average.
As outlined above, fracking also reduces water and air quality, particularly in the areas it takes place. Distressingly, fracking sites like Beetaloo are located on First Nations land.
What can I do to stop fracking in Australia?
The best way to make a change is to educate yourself, share information and sign petitions or write a letter to your local MP who can escalate the matter to local government.
Get Up has a petition which you can sign here, and an open letter you can sign here.
Jess PullarJess Pullar is the Culture Editor (digital) of marie claire and ELLE. When she's not gazing at sunsets, she enjoys tucking into a green tea and re-watching 'Sex And The City'.
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