New tenure reforms to encourage new resource projects in Queensland

1338
QCLNG Project: Pipeline pull across the Narrows, Queensland, Australia Image credit: flickr User: BG Group

The Newman Government has announced crucial tenure reforms that will boost the petroleum and gas sector, delivering a brighter future for rural and regional Queensland.

QCLNG Project: Pipeline pull across the Narrows, Queensland, Australia Image credit: flickr User: BG Group
QCLNG Project: Pipeline pull across the Narrows, Queensland, Australia
Image credit: flickr User: BG Group

According to the media statement by Minister for Natural Resources and Mines Andrew Cripps, the reforms are part of the Newman Government’s plan to encourage the next generation of projects in the sector by cutting red tape and regulation and supporting investments.

“The Newman Government committed at the 2012 election to support and grow resources as one of Queensland’s four economic pillars. Industry expressed concerns about the current regulation for petroleum and gas tenures, describing it as cumbersome, duplicative, inflexible and overly-prescriptive. Unlike the former Labour Government, we are reducing red tape and regulation to encourage industry to invest in new projects and create jobs,” said Mr Cripps.

Queensland Parliament voted on and passed immediate reforms to the Petroleum and Gas (Production and Safety) Act 2004 last week that are set to deliver significant benefits to the industry.

“We are extending the term of all current Authority to Prospect exploration work programs from four to six years, with the associated relinquishment of 33 per cent of the tenure also deferred to the end of the extended 6 year period. Industry will benefit from more flexible relinquishment arrangements and the ability to amend a work program for an Authority to Prospect,” said Mr Cripps.

Adertisement

“We will also speed up the granting of petroleum lease applications by requiring a statement about the presence of commercial quantities of gas instead of the current mandatory requirements for 20 per cent of discovered petroleum to be classified as proven and probable reserves.”

The Minister further pointed out that the reforms and the resource projects will boost Queensland economic development.

“My Department of Natural Resources and Mines is currently undertaking a broad and comprehensive review of the tenure framework, as it applies to the whole-of-life cycle for resource projects, including petroleum and gas, minerals and coal. The benefits of these reforms will allow companies to get on the ground faster with tenures that are more flexible and meet their commercial needs,” he said.

“This is good news for regional and rural communities that benefit from resource projects going ahead and don’t want economic development delayed by unnecessary red tape and regulation.”