PERTH (miningweekly.com) – The Northern Territory government has approved its first environmental management plan (EMP) to allow oil and gas major Santos to undertake onshore shale gas exploration drilling.

This was the first EMP to be awarded for onshore shale gas exploration since the Northern Territory government lifted the shale gas moratorium in early 2018, and followed on from the completion of the 31 recommendations made from the Scientific Inquiry into Hydraulic Fracturing.

As part of the decision to lift the moratorium on hydraulic fracturing, new regulations require the government to publish an EMP for public comment on the Department of Environment and Natural Resources website where the activity involves the drilling of a petroleum well or hydraulic fracturing, and the outcome of the decision, including a statement of reasons.

The Santos EMP received 22 submissions as a result of the public consultation process, which resulted in the company revising the EMP, including the wastewater management plan and spill management plan, ensuring that environmental risks will be controlled and reduced to a level that is as low as reasonably practical and acceptable.

“Our environment is important and the Territory government understands that it is a large part of what makes living in the Northern Territory so special,” Environment and Natural Resources Minister Eva Lawler said.

“As a government, we are restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines on how the environment must be protected – good environment policy is smart economic policy.”

Santos MD and CEO Kevin Gallagher said approval of the drilling EMP is an important milestone that clears the way to restart onshore shale gas exploration in the resource-rich McArthur basin.

“We drilled Tanumbirini 1 in 2014 and liked what we saw, so we are delighted to be in a position to resume exploration drilling,” Gallagher said.

“Local communities desperately need the jobs, small business opportunities and the investment the onshore natural gas industry will bring, and with the new regulatory regime in place to ensure that the environment and water resources are protected, we’ll be moving as quickly as possible and doing our best to beat the approaching wet season.”

The Australian Petroleum Production and Exploration Association (Appea) has meanwhile welcomed the confirmation of the EMP, with Appea’s Northern Territory director Keld Knudsen saying that it signalled the strong decision by the government to support the development of the Northern Territory’s abundant gas resources.

“The industry will play a crucial role in growing the Territory’s economy and promoting regional development through further investment in developing the Northern Territory’s natural resources,” Knudsen said.

“The sector remains committed to working with the Territory government and local business community to maximise opportunities for employment, while making a meaningful low-carbon contribution to our energy needs.

“We’re determined to play our part to ensure all Territorians benefit from the development of their natural resources.”