The state Opposition’s promise of decade-long ban on fracking in the South East of SA, if elected in 2018 has been celebrated by the 45 communities which have declared themselves ‘gasfield free’.
The announcement came after a two-year long parliamentary inquiry this week concluded a social licence “did not yet exist” to frack in the region.
The Natural Resources Committee, which received nearly 180 submissions, found fracking was unlikely to pose risks to groundwater if well managed, but there was overwhelming community opposition to it.
“This is not to say unconventional gas exploration and development should never occur in the region, but that in the committee’s view, obtaining social licence is a necessary precondition to such development occurring,” NRC presiding member Steph Key said.
But Mineral Resources Minister Tom Koutsantonis has slammed the Liberal moratorium, describing it as an “act of industrial vandalism” and a threat to investment in the oil and gas sector and up to 3000 jobs.
Limestone Coast Protection Alliance chair Merilyn Paxton says the Liberals’ moratorium on unconventional gas exploration and development in the region is an important step.
“The risks that industrial gasfields pose to our groundwater supplies and our existing ag and tourism businesses are just too great,” she said.
She called for a bipartisan approach, and said Mr Koutsantonis’s remarks showed his only concern was the welfare of mining companies, not the “ordinary people of the Limestone Coast”.
“The Labor party has lost all integrity as the people’s party,” Ms Paxton said.
Member for Mount Gambier Troy Bell said the SE community made its concerns and desire to protect the region’s clean, green image, and its valuable primary production, clear during the inquiry .
“We contribute more than a billion dollars to the state each year and it all depends on groundwater,” he said.
“In fact, the entire community depends on groundwater – if there is any risk that is too much for me to accept.”
Mr Bell says the Liberals’ proposed moratorium will provide certainty for these industries and communities, but also gives mining companies at least 10 years to convince the community fracking is a safe practice.
“It only applies to fracking, not conventional gas, which has been extracted from the Katnook Basin for 40 years. We are not saying we are anti-development or against mining, just no fracking. Unlike the Labor party, we are listening to the people of the SE.”
But Mr Koutsantonis says Opposition leader Steven Marshall is “ignoring science” with the proposed ban, which Labor says will drive up power prices.
“This announcement is a slap in the face to Santos, Beach, Senex and other companies that make an enormous contribution to the economy through royalties, jobs and investment.”
SA Chamber of Mines and Energy chief executive officer Rebecca Knol said locking up resources would limit access to reliable and affordable energy in SA.
“Political decisions such as this send a worrying precedent to the wider resources sector that regions can be ring-fenced based on little consideration for the factual evidence, by default posing a sovereign risk,” she said.
Greens MLC Mark Parnell said the moratorium was a positive step but did not go far enough.
He will seek to re-introduce legislation next year to permanently ban fracking in all farming, residential and conservation areas.
“The people of the SE want to grow premium food, fibre and wine rather than risking damage to water, soil, public health and reputation for the sake of uncertain and short-term gas profits,” he said.
Family First MLC Robert Brokenshire, a member of the NRC, also supports the moratorium but wants an economic benefit analysis to determine “go” and “no-go” zones for mining in SA.
“We support the Moomba gasfields where it is totally different geographically and agriculturally, but given there is less than 6 per cent of SA which is prime farming land the SE should be a no-go zone,” he said.
