<< Return to the About the House home page

Report on greenhouse gas storage released

A parliamentary committee has released its report into the Draft Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008 on 15 August, which provides for carbon dioxide sequestration in offshore Commonwealth waters.

The House of Representatives Primary Industries and Resources Committee’s key report recommendations are that the Bill be amended to establish a formal process to transfer long term liability from the greenhouse gas (GHG) operator to the Government, and that the responsible Commonwealth Minister be endowed with the authority to direct parties to negotiate in good faith where there is overlapping greenhouse gas storage and petroleum titles, and to direct an outcome in such negotiations.

Committee Chair, Dick Adams (Lyons, Tas), said “Australia has some of the best sites for carbon dioxide storage in the world. This legislation provides an enabling framework to establish a commercial greenhouse gas storage industry in Australia”.

Mr Adams stressed the need for mitigation strategies for Australia’s carbon dioxide emissions. “Carbon capture and storage (CCS) could be a vital element in Australia’s response to climate change. This new technology allows for the continued exploitation of our vast coal reserves, while also making deep cuts to our CO2 emissions,” Mr Adams said.

The report’s 19 recommendations include:

• The inclusion of an objects clause within the legislation
• A transparent and systematic process for short-listing possible GHG storage acreage
• The provision for a renewal of the GHG assessment permit for a maximum of 3 years
• Delaying the passage of the legislation until such time as the supporting regulations and guidelines are released
• Offering incumbent petroleum operators a one-off opportunity to incorporate a GHG storage title over their current licence area
• Preferential consideration for GHG acreage bids with a readily available CO2 stream
• Financial incentives to promote the uptake of commercial CCS
• The publication of formal site closure criteria
• That no suitable GHG storage acreage be excluded on the grounds of pre-existing petroleum activities
• That injection and storage rights currently held by petroleum title holders under S.137 be preserved.

Copies of the report can be obtained from the committee’s website at:

http://www.aph.gov.au/house/committee/pir/exposuredraft/report.htm or by contacting the committee secretariat on (02) 6277 4500 or emailing pir.reps@aph.gov.au

Comments to: liaison.reps@aph.gov.au
Last reviewed 15 August 2008 by the House Liaison and Projects Office
© Commonwealth of Australia
Parliament of Australia Web Site Privacy Statement
Images courtesy of AUSPIC