Proposed Mining Legislation Recently Featuring in NSW Parliament

Thursday 13 March 2014 @ 10.33 a.m. | Corporate & Regulatory | Trade & Commerce

Two pieces of proposed legislation notified recently in the NSW Parliament once again bring up two controversial issues facing mining NSW. The first matter is the disputed question of Coal Seam Gas (CSG) and attempts to stop exploration in environmentally sensitive areas and the second matter is the vexed issue of integrity in the administration and development of the mining industry in NSW. Both Bills are Private Members Bills introduced by the Greens.

Central Coast Water Catchments Protection Bill 2014

The Central Coast Water Catchments Protection Bill 2014 notified in the Legislative Council on 4 March 2014 and now having reached second reading stage on 6 March 2014 is described as a Bill to prohibit the granting, renewal or modification of authorisations that permit exploration for and mining of minerals and petroleum (including CSG) in Central Coast water catchment areas.

The Bill has been introduced into the Parliament by Greens MLC Jeremy Buckingham who, in his second reading speech, has described the Bill as giving "the Premier the opportunity to show the people of New South Wales what his guarantee is worth".

By this, Mr Buckingham is referring to a speech given on 28 February 2008 by Premier O'Farrell (the then Leader of the Opposition), who, when speaking to a protest against the Wallarah 2 coal mine (a coal mine that protestors claim if approved, will allow long wall mining to undermine the drinking water catchments of the Central Coast), the Premier said:

"The next Liberal Government will ensure that mining cannot occur here. It will ensure that mining cannot occur in any water catchment area and will ensure that mining leases and mining exploration permits reflect that common sense, no ifs, no buts, a guarantee".

Essentially, the Bill proposes to prohibit any new authorities for mining or exploration, including for petroleum, in the seven critical Central Coast drinking water catchments, namely, the catchment areas of Mangrove Creek Dam, Mardi Dam, Ourimbah Creek, Wyong River, Porters Creek, Mangrove Creek Weir and Mooney Mooney Dam. The proposed law provides that the Minister must, within three months after the date of assent to the Act, recommend to the Governor the making of regulations which declare each of those catchments to be protected catchment areas and must include all land from which surface water drains to those dams, creeks or rivers.

A key element of the proposed law is that a catchment area declared under the proposed law must not be reduced in size, and a regulation declaring an area of land to be a catchment area must not be repealed, unless authorised by an Act of Parliament. Once areas are declared, the Mining Minister:

  • must not grant any mining authorisation in relation to land in a protected catchment area;
  • renew any mining authorisation in relation to land in a protected catchment area; and
  • amend, omit or impose any condition to which a mining authorisation in relation to land in a protected catchment area is subject.

Additionally, the Minister administering the Petroleum Onshore Act 1991 (NSW) may not:

  • grant any petroleum title in relation to land in a protected catchment area, or
  • renew any petroleum title in relation to land in a protected catchment area, or
  • amend, omit or impose any condition to which a petroleum title in relation to land in a protected catchment area is subject.

Mr Buckingham said further in speaking to the proposed law: "that the bill does not cancel any existing licences but does prevent the Minister from renewing or modifying them" and allows the Premier to stand by his pre-election: "No ifs, no buts, a guarantee".

Mining and Contracting with Government (Corruption Risk Reduction) Bill 2014

The Mining and Contracting with Government (Corruption Risk Reduction) Bill 2014 was notified in the Legislative Council on 4 March 2014 and has so far not moved beyond that stage according to the Parliamentary website as at 13 March 2014. The Bill was notified by Greens MLC John Kaye as  a proposed law to reduce corruption risk by prohibiting political donations from the mining industry and persons contracting with the NSW government.

Reaction to the Central Coast Water Catchments Protection Bill 2014

The Bill, which would ban mining around the NSW Central Coast water catchments, is criticised by the mining industry as putting the future of the Wallarah 2 coal mine in doubt and, because it comes less than a month after the controversial mine was  green lighted by the NSW Department of Planning and Infrastructure (DPI) who supported approval of the mine, taking the view that there is no real reason to stop it on environmental grounds. DPI executive director Chris Wilson is quoted as saying:

“the Department’s comprehensive assessment of the project, support[ed] by independent studies, was that there were no environmental or amenity reasons that prevent the project proceeding subject to strict conditions, particularly around the protection of the area’s water resources”.

The DPI decision is now heading to the Planning Assessment Commission (PAC).

What Next?

As Private Members Bills, the odds against either Bill passing into law are high. However, there is no doubt that these areas of proposed legislation, namely, CSG and the integrity of mining development in NSW, are likely to be the subject of future legislative proposals and continued debate.

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