coal seam gas
17 Aug 2011
Farmers No Match For Big Mining
Politicians love to talk up farmers but the issue of coal seam gas has revealed that the mining industry remains the favoured constituency for both major parties, writes Ben Eltham
With Parliament returning for the spring session and Tony Abbott back in the country from his European holiday, hostilities have resumed in our nation’s capital.
The Government has some big items on its agenda. None is bigger than the carbon tax, which the government plans to introduce to the House of Representatives within days. As the carbon tax inches towards law, the no-carbon tax movement has become correspondingly angrier and nuttier — as New Matilda’s Adam Brereton reports today. Dealing with the carbon tax anger is already posing difficulties, not just for Julia Gillard, but also for Tony Abbott.
But it’s not just the carbon tax: Labor has a big legislative slate for the second half of the year. There’s also the Minerals Resource Rent Tax, better known as the mining tax, as well as yet another effort to means test the private health insurance rebate. Both of these bills have a big potential impact on the budget’s bottom line, representing billions in extra revenue or foregone expenditure for a government desperate to return a surplus in 2012-13.
Abbott being Abbott, no sooner had he landed in the country than he resumed his calls of doom about the carbon price. But Abbott also made some off-the-cuff remarks about coal seam gas, an issue that is becoming increasingly divisive in the community. Coal seam gas is another issue where Abbott is finding it tough to strike a balance. That’s because the issue pits two conservative constituencies — farming and mining — directly against each other
Very briefly: coal seam gas is a form of gas mining in which coal deposits under the earth are hydraulically fractured, using a dirty mixture of water and chemicals, allowing the methane gas to bubble up and be captured. Like any hydrocarbon, methane is a potent greenhouse gas. It’s also in huge global demand. The vast potential for profit has driven an unprecedented boom in coal seam methane exploration across inland Australia. A number of energy companies such as Santos and the Queensland Gas Company have announced vast gas export projects worth tens of billions, while smaller players like Dart Energy are busy drilling exploration wells near environmentally sensitive areas such as the Wollemi National Park. According to Bond University’s Tina Hunter, there are plans to drill over 40,000 wells in Queensland over the next five years.
One of the reasons coal seam gas is such a divisive issue is because of the way Australian mining law comprehensively favours minerals exploration and extraction. In keeping with the long history of special treatment for mining extended by Australian governments of all persuasions, the states and Commonwealth have long reserved ownership of most or all the minerals in the land, which they then sell off to mining companies via a system of leases. In Queensland, for instance, where much of the coal seam exportation has been going on, the Mineral Resources Act 1989 (pdf) states quite plainly that "All minerals … on or below the surface of land in Queensland … are the property of the Crown."
Once given a lease, mining companies have broad rights to explore on freehold land, whether the land owner likes it or not. In New South Wales, for instance, under the Petroleum Onshore Act 1991, land owners simply do not have the right to stop the holder of a mining lease from drilling on their soil. Despite the vigorous campaign by farmers and land owners to "lock the gate" on mining companies wishing to explore and drill on their land, if they really want, mining companies can take land owners refusing access to their property to court. They will almost certainly win.
The environmental issues around coal seam gas are becoming better known, and they are not pretty. The recent documentary Gasland has of course had a huge impact. But perhaps of greater importance was recent testimony to a Senate inquiry into the coal seam gas boom by the National Water Commission on the potential impact of the industry on Australia’s ground water. At the inquiry, the National Water Commission gave evidence about just how much water would be used. According to the Commission’s acting CEO James Cameron, coal seam gas will extract up to 300 billion litres a year from the Great Artesian Basin.
"It’s a very significant figure," Cameron told the Senators.
The scale of the fracking required, and of the water to be used, underlines a bigger concern for many Australians: the possible threat of coal seam gas and indeed mining in general to some Australia’s most fertile arable land. This was exactly the talking point Tony Abbott was speaking to when he told Alan Jones that "if you don’t want something to happen on your land, you ought to have a right to say no" last week.
One can imagine that the phones in Abbott’s office started running hot straight away. The mining industry is one of the Liberal Party’s biggest donors and the influence of men like the Minerals Council of Australia’s Mitch Hooke runs deep. A day later, Abbott was clarifying his position — sort of — by saying that "we support the mining industry, but we don’t want to see prime agricultural land destroyed and we think that the rights of farmers should always be respected."
But the issue of coal seam gas can’t so easily be explained away. And because the conflict is so stark, it has become an interesting litmus test for Australia’s politicians over where they stand in relation to mineral exploration and the future of Australian agriculture.
On the side of agriculture and against the miners are the Greens. They are seeking to introduce a bill to force mining companies to seek written permission from land owners before exploring on their land.
On the side of the miners, with no ambiguity, stands the Government. Mining minister Martin Ferguson was out and about this week ridiculing Tony Abbott’s equivocal position. In typically blunt terms, he told the ABC’s Alexandra Kirk that "there is no right of veto for the agricultural community because in the end we all own these assets." In other words: the Government wants those mining tax revenues, and farmers need to get out of the way. Ferguson warned that "you can end up with a situation where you can have one or two dissidents wanting to hold up a multi-billion dollar project to a long-term economic worsening of our situation."
In the middle stands the Coalition, which under Tony Abbott continues to try to be all things to all people. Rejecting the approach from the Greens to work together on the issue, Abbott instead appears simply to be trying to have it both ways. Not for the first time, the Opposition Leader is finding that easy populism can be a double-edged sword.
The polarisation over coal seam gas also tells us much about the current philosophical positions of the Australian political parties. The party which appears committed to the principles of economic efficiency and neo-liberalism is in fact the Australian Labor Party. The party that believes in limiting the market for social and environmental objectives is The Greens. The Coalition, in contrast to both, has all but abandoned its belief in the power of markets for a ruthless but unprincipled opportunism.
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Posted Wednesday, 17 August 11 at 2:15PM
1.’On the side of agriculture and against the miners are the Greens. They are seeking to introduce a bill to force mining companies to seek written permission from land owners before exploring on their land. ’ Certainly, but have the farmers discussed and agreed with the greens on this ?
2. The issue is going mad this week. The Parliament is discussing the Carbon Farm Initiative (technically dodgy) and soon the CT. The green have a goo balance of power on this….will they use it to get leverage on CSG?
Posted Wednesday, 17 August 11 at 2:42PM
1) Fracking (hydraulic fracturing) is bad for local communities:
A)It contaminates the water tables- according to scary USA doco ‘Gasland’.
B)”The National Toxics Network (NTN) has released a briefing paper on the chemicals used in the drilling and extraction of coal seam gas (CSG) in Australia. NTN is calling on state and federal Governments to urgently introduce a moratorium on all drilling and fracking chemicals until they have been independently assessed by the federal regulator.
“Our investigation found that of 23 common fracking chemicals used in Australia, only 2 have ever been assessed by NICNAS, Australia’s industrial chemicals regulator. The two that were assessed, have never been assessed for use as fracking chemicals,” said lead author of the report, Dr Mariann Lloyd Smith.”
http://ntn.org.au/2011/02/21/call-for-moratorium-as-report-finds-frackin…
2) Minerals below the land should require the freeholders permission to access.
How can owners feel a real sense of ownership, if a stranger can rip up our land whenever they want, and pollute our community!?
3) So tell Parliament to quit fracking around: at http://nofracking.com.au/ or
http://www.getup.org.au/campaigns/coal-seam-gas/petition/stop-coal-seam-…
Posted Wednesday, 17 August 11 at 3:33PM
Regarding the greens initiative, which could be great:
Is the commonwealth able to take a decision on this? i thought it was a State issue and that was another reason for the mess.
Posted Wednesday, 17 August 11 at 7:01PM
We shouldn’t forget that the junior coalition partner, the Nationals are explicitly a party dedicated to the interests of the rural community.
So will we see the Nationals siding with the Greens on this one? Don’t hold your breath.
Posted Wednesday, 17 August 11 at 9:21PM
Ben,
“But the issue of coal seam gas can’t so easily be explained away. And because the conflict is so stark, it has become an interesting litmus test for Australia’s politicians over where they stand in relation to mineral exploration and the future of Australian agriculture. ”
I somehow think that mineral exploration in general terms and FRACKING for gas have very little to do with each other.
FRACKING for gas OFFENDS people.
Digging a kilometer long 250 meter hole is completely inoffensive behaviour in comparison.
Do the latter and the land owner is off and enjoying life in the cities with his/her millions.
Come onto their property and Frack the living daylights out of it, you leave them with little or no compensation and challenge the land and water quality for life.
Sorry, that quote from your article doesn’t recognise there is a serious difference between REAL mining and this FRACKING nonsense.
Also, you failed to mention the Minister for Fracking, Over Population and Screwing the Environment, Tony Burke, who looked decidedly uncomfortable talking about all the fracking he has permitted and will continue to permit, cowering behind the shelter of an “expert committee” (Q&A Monday).
The foot in mouth escapades of the Opposition Leader don’t deserve first paragraph in your article Ben, the Minister for Fracking’s Frog Creaking Silence Induced responses during Q&A was the Headline.
If you missed it, check it out and be amused at how the stacked, leftist panel was left with almost no where to go. Figgeting, looking for direction as the Big Fracker Himself painted himself as an ecological vandal. Priceless stuff!
Posted Wednesday, 17 August 11 at 10:00PM
“The Coalition has all but abandoned its belief in the power of markets for a ruthless but unprincipled opportunism”.
Agreed.
In a healthy, vibrant democracy lively debates and a diversity of opinions are essential and should be encouraged. Extremist or ill considered populist views however, once aired, need to be subjected to vigorous scrutiny. Unfortunately it is not happening.
In our current damaged social environment of widespread ignorance, intolerance and selfishness it has become extremely difficult to expose and rigorously curtail damaging practices. It is increasingly urgent to prevent the destruction of our natural resources as well as protecting what is left of our civil society.
The current opposition leader with all the above mentioned attributes is unscrupulously spreading fear and uncertainty in the public in order to gain power. A person like that is a disgrace and has no place in a position of influence. His actions are a distraction we can well do without. It creates an adversarial environment that makes it increasingly difficult to find reasonable and equitable solutions in the national interest.
Media outlets spreading these lies or misinformation are exacerbating the situation and are adversely effecting an already damaged national psyche.
Posted Thursday, 18 August 11 at 1:06PM
“The polarisation over coal seam gas also tells us much about the current philosophical positions of the Australian political parties. The party which appears committed to the principles of economic efficiency and neo-liberalism is in fact the Australian Labor Party. The party that believes in limiting the market for social and environmental objectives is The Greens. The Coalition, in contrast to both, has all but abandoned its belief in the power of markets for a ruthless but unprincipled opportunism.”
Bravo Ben, great conclusion!
Posted Thursday, 18 August 11 at 1:52PM
Mining revenue is temporary but the potential damage to the ongoing productive capacity of the land is permanent.
Calculating the economic value of the former versus the degradation of the latter is not straightforward but surely it is doable?
If people can’t support a government that stands for social and environmental issues, surely they can understand that there are economic costs to ignoring them?
Perhaps the Greens should couch more of their social and environmental agenda in economic terms?
Posted Thursday, 18 August 11 at 4:32PM
The whole project is insane. When one considers the entire process, gas is no better than coal in terms of greenhouse gas emissions. While China and Europe are dumping fossil fuels for solar, that already in Spain is providing base load power supply, and wind, here we are taking the wrong turn as usual, shambling, directionless from crisis to crisis, permanently destroying our food producing land for short term gain. ‘The stupid country’, our number plates should read.
Posted Thursday, 18 August 11 at 7:30PM
Is it just Australia or is it the same in other countries that the land owner does not own the minerals, gas or oil under the ground. There are many rags to riches stories from the USA where land owner has discovered gold or oil on their properties. I know that the Beverly Hillbillies are a fictitious family that found oil on their land and became incredibly wealthy however that scenario could not happen here in Australia. If the land owners were the beneficiaries of the CSG then there may not be the controversy that exists at this moment.
Posted Friday, 19 August 11 at 12:22PM
@LukeMR- if “the greens couch more of their social and environmental agenda in economic terms”, they will be saying ecology and community only have important value in those terms. No way! People who don’t get environmentalism or socialism need to learn the value of social and environmental conditions, instead of always assuming they should adapt to whatever the economy wants. Security forces will not alway be able to force people to do whatever the economy needs, and if we keep stabbing our planet with pollution for our economy, it will stop supplying us with the prerequisites for our precious economy.
@Elbert- 3 problems:
1) Too few AUS voters value viability/efficiency/resiliency above short-term financial profit.
2)The voting system works against those Parties that do, by requiring Parties to take electorates, rather than a % of the total vote.
(The AG got 10% of the vote, but only 1 Lower House seat.)
3)Minister for Energy Martin Ferguson legislates for the Coal, Uranium and other harmful but high-profit industries at the expense of the viable but less-profitable renewable energy and farming industries. The ALP won’t shift him, so he needs to be voted out of his Batman electorate. Then he can get a well-deserved promotion to official lobbyist for Big Coal/Nuclear/etc, and AUS can end the polluter subsidies, and more promptly transition to a viable future of energy & food security.
Posted Friday, 19 August 11 at 9:28PM
Farmers need to realize that looking to Abbott is useless he is a like a wind vane on this issue and useless. The only political party standing strong on this is the Greens.