Department of the Legislative Assembly, Northern Territory Government

Mr WOOD - 2013-08-20

I support gas exploration in the Northern Territory, but recently there was an application by MBS Oil for an exploration permit which covers a large part of the Howard East bore fill, which is the source of 10% of Darwin’s water supply and the water supply for many rural residents.

Minister, do you support this application, and do you agree this area should be exempt from exploration?

ANSWER

Madam Speaker, I thank the member for Nelson for his question. It might be useful to give a little background. The exploration permit application was lodged by MBS Oil on 11 April 2011, so it has been around for some time. The application was advertised in the NT News on 17 July 2013 and is open for objections and comments for two months, which expires on 16 September.

In answering whether I support this, it is not up to the minister one way or another. There is a process in place which allows for applications of this nature to be determined. The application before the department is for grant of tenure only over that portion of land for which the application applies.

In assessing that application for tenure, the department will take into consideration comments and objections lodged by 16 September. In making a final determination about tenure, they will also look at what areas within that exploration application area need to be excised for one reason or another. The fact that area covers part of the Howard East bore field, and the fact there are rural residential blocks which rely on that water, may well excise parts of that area from the application to begin with. That is even before an application is lodged for any form of exploration to be done; this is an application simply for tenure.

It also raises some issues around whether the department, and the government, continue to deal with these types of applications on a one-on-one basis or whether we need to consider something like a reservation over some areas of sensitive land. The department will be providing me with some advice on general reservation and whether that is appropriate under the circumstances.

I support the development of oil and gas in the Northern Territory, as does this government. This is a key economic driver for the Territory now and well into the future. However, we also recognise the requirement to get the balance right. If sensitive areas need to be protected from certain activities I am willing to look at it.
Last updated: 09 Aug 2016