PERTH (miningweekly.com) – The Australian Petroleum Production and Exploration Association (Appea) on Wednesday expressed its dismay over the Victorian state government’s decision to delay onshore gas exploration.

Energy and Resources Minister Russell Northe said that work plan approvals for onshore gas exploration would be placed on hold until more information was available, including evidence from a water study, community views and industry impacts.

“The Coalition government’s cautious approach to potential onshore gas activity will ensure the economic benefits of onshore natural gas development are properly balanced against the legitimate interests of local communities, landowners and the environment,” Northe said.

He noted that the former government had allocated 73 licences for coal seam, shale and tight gas exploration and approved 23 hydraulic fracturing, or fracking, operations without any community consultation.

“In stark contrast, the Coalition government is undertaking comprehensive community consultation alongside our moratorium on fracking and our hold on issuing new licences for coal seam gas exploration.

“It is clear to the government that there is community concern around prospective onshore gas exploration under currently held licences. In the spirit of the current moratorium the government will put a hold on making any decisions on the approval of current onshore gas exploration work plans,” Northe said.

Appea COO for Eastern Australia, Paul Fennelly, said that the decision raised serious questions about whether Victoria was a state that truly welcomed investment in developing onshore gas supplies and the regional economic growth and job creation that came with it. 

“It comes at the same time Queensland has made important regulatory changes to provide greater certainty of tenure to explorers and increased flexibility in planning projects. Along with South Australia, Queensland is making big strides in developing a competitive regime for development of onshore gas resources.”

Fennelly said industry would continue to support the fact-based community consultation process outlined by the Victorian government - one based on science rather than misinformation.

“However, applications for work programmes should be addressed on their merits and the gas industry’s proven record of safe operation and strong community consultation over a number of decades should be given due consideration.

“We acknowledge that consultation with the community is critical. But it is disappointing to see emotional factors overriding scientific evidence and decades of operational experience,” Fennelly said.