COAL SEAM GAS

The Hon. M. PARNELL (15:00): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries questions regarding coal seam gas activities on farmland.

Leave granted.

The Hon. M. PARNELL: Alarm continues to grow, particularly in the Eastern States, over the encroachment on private farmland by mining companies exploring for coal seam gas. The dramatic scenes we have seen in New South Wales and Queensland, with farmers fighting to keep mining away from their land and the growth of the Lock the Gate Alliance, are set to be repeated in this state as energy companies increasingly focus on fossil fuel reserves here. The biggest clash between farming and coal seam gas is likely to occur in the state's South-East, in an area which also has significant seismic activity and where groundwater reserves are already under significant stress.

Like other members of this house, I have recently been contacted by concerned citizens in the South-East regarding old mine drilling holes in the South-East that have recently (about six months ago) opened up. The drill holes in question are on private property and were apparently drilled by Western Mining Corporation some time between 1979 and 1982, when WMC conducted exploration activities. Whilst it is quite likely that these drill holes were originally capped and sealed appropriately, they are now gaping holes in the ground. What has alarmed the landowner is the strong likelihood that methane and other greenhouse gases are leaking from these drill holes, as well as the unknown impact on groundwater.

I understand that a recent audit conducted by DMITRE at the request of a group of farmers on Lower Eyre Peninsula on the activities of mineral explorer Eyre Iron has found that 80 per cent of all inspected drill holes were noncompliant with their exploration licence. So, the state of old drill holes that are scattered across our state is a live issue. My questions of the minister, as Minister for Agriculture, Food and Fisheries as well as Minister for Regional Development, are:

1. What is the minister doing to inform the farming community, particularly in the state's South-East, about the potential impact of coal seam gas exploration and extraction on their productive lands?

2. Does the minister support the creation of no-go zones to protect productive agricultural land from coal seam gas and other unconventional gas mining?

If the minister can also take on notice (and perhaps refer to her colleague the Minister for Mineral Resources and Energy) the following questions:

1. Why has there not been an audit of old mining drill holes on farmland in South Australia?

2. How many inspections are conducted annually by DMITRE on mining drill holes in South Australia?

3. How many trucks and full-time equivalent staff are available to do this work?

4. Whose responsibility is it to manage old mining exploration drill holes on private land in South Australia: is it the landowner, the mining company or the state government?

The PRESIDENT: The Leader of the Government, representing all the ministers.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:03): Everybody! Thank you, Mr President. I thank the honourable member for his most important questions. I know that there are considerable issues of concern around the impact of the energy and mining sectors for some of our farming communities. We have seen, particularly in the Eastern States, that they have experienced considerable difficulties adjusting to encroaching interests. Some of those incidents have led to confrontations and a great deal of conflict.

Here in South Australia, we have been pretty fortunate to date that we have not been subject to the same level of conflict from the mining and energy sector. However, we are very mindful that this situation is changing as exploration activity continues to grow nationally and it comes further and further south. We have prime agricultural land, so I want to avoid the confrontation that has been characterised by some of those Eastern States. I am also, obviously, keen to see that opportunities provided by the current demand for mineral and energy resources be balanced with farming and other interests in our rural communities. Hopefully, we can get the balance right and end up with a win-win for everybody.

South Australia is fortunate, therefore, to be at the forefront of efforts to build a more open and constructive engagement between the minerals and resources sector and rural communities. This is underway through a number of initiatives involving the state government and its departments. Key to addressing these issues are a number of initiatives that I will just briefly outline.

Firstly, the South Australian government is leading work in the Council of Australian Governments (COAG) arena to develop a multiple use land use framework. The primary aim of this framework is to identify pathways to profitable and sustainable coexistence by the mining and farming sectors. DMITRE is undertaking this work on behalf of the ministerial standing committee on energy and resources. Stakeholder engagement on this initiative has started, and PIRSA is obviously participating in the process as well.

Secondly, South Australia has also joined the National Partnership Agreement (NPA) on Coal Seam Gas and Large Coal Mining Development. The NPA will lead to baseline water resource research that is relevant to the future of primary industries and regional water supplies across the state. Our involvement in the NPA is being led by DMITRE and the Department of Environment, Water and Natural Resources. Participation will provide a framework for assessing and managing the issues and impacts of future proposals for coal seam gas or large coal mining projects.

Thirdly, a roadmap for unconventional gas projects is being developed for South Australia. This project is aimed at maximising the potential of South Australia's unconventional gas resources in an environmentally sustainable way. The roadmap recognises the importance of effective and informative stakeholder consultation well ahead of land access so stakeholders can reach informed views about potential risks and the trustworthiness of risk management strategies. It also provides a pathway for South Australian stakeholders to be engaged through the establishment of a round table.

Fourthly, Rural Solutions SA is developing a concept of a landholder advisory service on behalf of DMITRE. The focus of this initiative is timely engagement, access to services, and information exchange for landholders and miners alike. It is proposed that this service be trialled on Eyre Peninsula. I am pretty sure that is the project that has been given new money in the most recent budget. If it is not that project, it is another similar project to be conducted on Eyre Peninsula, so we have actually provided some government funding in the last budget to assist in that exchange.

Fifthly, informed decision-making is a key component in addressing these issues. Mapping and datasets being developed by PIRSA will help ensure that decision-makers are fully informed about the pattern of key agricultural land resources and the costs and benefits of new projects. PIRSA proposes to see this information made widely available throughout the community in association with the Department of Planning, Transport and Infrastructure, DMITRE and DEWNR integrated into policy-making and decision-making at key points in the South Australian planning system and natural resources management system.

Finally, I recall that the government announced a range of amendments through the Mining (Miscellaneous) Amendment Act 2010 and the Mining Regulations 2011. One of the important amendments in that legislation relates to improving the information that must be supplied to landowners by explorers as part of the consultation on access and as part of the formal notification to enter their land.

The government intends that this suite of measures will see South Australian farmers treated more respectfully and equitably than appears to have been the case occurring in some of our Eastern States. In relation to the specific questions around drill holes and DMITRE's activities, I am happy to take those on notice and to bring back a response.