Gas and dash fear: WA taxpayers could be forced to foot the bill for another Kimberley clean-up
A petroleum company’s attempts to offload stricken oil and gas infrastructure on an environmentally sensitive peninsula within the National Heritage-listed King Sound for a fraction of the value it was estimated to be worth should ring alarm bells for the WA Cook Government.
Environs Kimberley and Lock the Gate Alliance say the situation highlights the risks the fracking industry poses to the unique Kimberley region.
Deteriorated and inaccessible by vehicle: the causeway to the Point Torment well site. Photo: supplied.
Rey Resources is attempting to offload its Kimberley-based assets and 100%-owned subsidiary Gulliver Productions to an overseas company called China Guoxin Investment Holdings, after writing down the value of its assets from nearly $5 million to about $400,000. In response to this announcement, the ASX sent a series of questions to Rey probing the company's financial situation was sufficient to warrant its continued listing and expressing uncertainty over “the group’s ability to continue as a going concern.”
Documents obtained by Environs Kimberley under Freedom of Information reveal that in 2021, the three King Sound gas wells were a mess, with oil staining on the ground and wellhead corrosion, among 44 possible breaches departmental officials identified. It is unclear what, if any, remediation work Rey has undertaken since inspection.
Environs Kimberley and Lock the Gate Alliance fears there is a significant risk that if Rey Resources successfully offloads its assets, they will be abandoned and the hefty rehabilitation bill will fall to the WA taxpayer, as has recently occurred with New Standard Energy and Advent Energy projects in the Kimberley. The stranding of these wells resulted in multi-million cleanup bills and potentially “profound” ecological damage.
Rey Resources' cleared drill pad at Point Torment. Photo: supplied.
Shortly before announcing this planned “disposal” deal to the ASX, Rey Resources also lodged a state petroleum exploration application to clear grid lines more than 3000 km long for seismic testing across a 5058 km2 tenement near Derby and south east of its existing wells in the Kimberley. Under current WA rules, these tenements are able to be fracked, should Rey apply to do so. This tenement is included in the proposed offload deal.
Environs Kimberley recently wrote to the Foreign Investment Review Board, urging it to reject Rey’s attempts to offload its subsidiary and Kimberley assets. This followed letters to WA Mines and Petroleum Minister David Michael expressing concerns over the company's plans.
Environs Kimberley Executive Director Martin Pritchard said, “It was a reckless decision to allow drilling for oil and gas in the mangrove lined flats of King Sound in the first place. The cost of cleaning up the mess left behind in this remote and sensitive location will run to millions of dollars.
“The Department of Mines and Petroleum has let the drill sites deteriorate to the point where one of them is now inaccessible by vehicle and they’ve had to chopper in staff to investigate.
“The department seems to let these oil and gas companies get away with poor management without consequences. The Petroleum Minister David Michael needs to take charge of the situation to make sure taxpayers aren't footing the clean-up bill for another oil and gas company.
“It’s really clear that fracking in these areas would be an absolute disaster when the government departments can’t manage three wells and make companies accountable for poor practices.”
The Stokes Bay well site. Photo: supplied.
Lock the Gate WA Coordinator Claire McKinnon said, “No oil and gas company should ever have been given permission to drill in an area as environmentally significant as the National Heritage listed King Sound.
“Rey must be forced to fund the decommissioning and closure of all the wells on its tenements. The WA taxpayer must not be left to once again pick up the clean up bill for an oil and gas company.
“This concerning situation shows why it’s so important that the Cook Government ban fracking in the Kimberley.
“The high cost of unconventional gas extraction means it’s likely that if a fracking company was able to get a project going in the Kimberley, it would result in the drilling of many hundreds if not thousands of wells.
“This sorry situation shows the Cook Government is not up to the task of adequately regulating a mere three conventional wells, let alone thousands of frack wells”.
Call for Premier Cook to back claimed frack legal advice with evidence
Independent legal advice states there would be no obligation for the Western Australian Government to compensate any company that possesses a petroleum tenement, should the ban on fracking be expanded to the Kimberley.
This raises serious questions about the response from Premier Roger Cook, quoted in the media recently, suggesting there could be “legal consequences for the state”, should the ban be extended to include the Kimberley.
Environs Kimberley Executive Director Martin Pritchard said, “The Premier’s claims are unfounded — we’re yet to see any evidence that there would be legal ramifications from a fracking ban.
“In fact we have legal advice from a barrister — whose career includes many years at the State Solicitor's Office — that shows exactly the opposite.
Community protest in Broome. Photo: Alex Westover.
“The legal advice is clear — no compensation would be owed to companies who hold a petroleum license if the WA Labor Government banned fracking in the Kimberley.
“The WA Government banned fracking down south and around Perth and as far as we’re aware there was no compensation, so why won’t MPs do it for the Kimberley?
“The Premier is aware of our legal advice, and we’ve told him, if he knows something that we don’t, we’re more than happy to have it legally reviewed.
“West Australians won’t stand by while the Kimberley is sacrificed for no reason. Traditional Owners and Kimberley locals are calling for a ban. Community organisations are calling for a ban. And so are WA Labor’s voters. It’s time to act.”
Fremantle locals know fracking the Kimberley would be disastrous. Photo: John Reed.
Lock the Gate Alliance WA Coordinator Claire McKinnon said, “Voters aren’t about to be hoodwinked by Roger Cook’s claims that fracking isn’t going to expand in the Kimberley.
“The fact is, US company Black Mountain has plans to frack in the Kimberley going through state and federal approval processes right now.
“Lock the Gate Alliance and Environs Kimberley have galvanised an army of volunteers and supporters in Perth and Fremantle who are backing Kimberley communities in their call for a ban.
“If the Cook Government refuses to ban fracking in the Kimberley, then it can expect the voters of Freo and Perth to send them a strong message at the ballot box at the upcoming election.”
Warning to investors - don’t risk millions on oil and gas in the Kimberley
Oil and gas companies are on notice following Buru Energy’s latest disastrous drilling project in Western Australia’s Kimberley region.
The company revealed today that its recently drilled oil exploration well, 'Rafael Shallow', near the Manguel Creek system that flows into the National Heritage listed Martuwarra Fitzroy River, has found no oil.
Buru Energy's Rafael Shallow well site.
The announcement today that the $5 million plus well was dry, as well as no social license for oil and gas, serves as a warning that the Kimberley is too risky to invest in.
Environs Kimberley Acting CEO, Martin Pritchard said: “The time for oil and gas in the Kimberley is over, the community doesn’t want it, it’s too damaging to the environment and climate and the financial risk is not worth it.”
"The Kimberley can be powered through renewable energy, this is the future where there are guaranteed returns on investment.
This dry well serves as a warning to oil and gas companies and investors, don’t even think about bringing this polluting industry here, move to renewables, make a safe bet and don’t ruin the Kimberley."
Manguel Creek – a culturally and ecologically significant creek system with springs that flow into the National Heritage listed Martuwarra Fitzroy River.
Help tell the story of the Wattleseed Collective: media intern opportunity
Handy with a camera? Like nature? Does your dream career blend media skills with working in nature and supporting communities? You might be just the intern The Wattleseed Collective is looking for!
Wonderful wattleseed. Photo: Camera Story.
Join the team this September-November and help tell the exciting story of the wattleseed harvest. We’re seeking an intern with a passion for media including filming and photography who wants to gain hands-on experience at the intersection of media and the conservation economy.
This experience will look amazing on your resume, develop your knowledge of wild harvests, social enterprises and it will develop your media skills.
Find out more and apply here.
Discover more about the wattleseed collective here.
How fire affects small animals in the desert — a research collaboration
Environs Kimberley and Charles Darwin University have been supporting desert ranger groups since 2018 to understand how fire patterns have changed in the desert since European colonisation, how that is affecting vegetation structure and native fauna, and how rangers can inform and adapt their fire management to better protect country.
This project has recently been bolstered through an Australian Research Council Linkage Grant to bring in additional scientific research capacity. That’s how I have joined the project. Hi, I am Kristina, a CDU post-doctoral researcher who will be working on the project for the next three years.
Kristina Macdonald (CDU) holding a Pygmy Desert Monitor
The rangers use fire during the cool season to try to reduce the impacts of wildfire on Country. Fire management can reduce the size of fires, increase the number of fire ages and vegetation structure in the landscape, and help protect long unburnt vegetation.
But how do these fire regime components affect native biodiversity? In May we went out on two surveys to learn more about Country, cuddle small animals and gather data to help answer this question. The first survey was with the Karajarri Rangers and the second with the Nyangumarta Rangers.
A Lesser Hairy-footed Dunnart (Sminthopsis youngsoni).
For each survey, we had six to eight sites spread across areas with different fire histories (e.g. burnt recently, burnt over 8 years ago) where we caught animals using pitfall traps, funnel traps and camera traps.
During these surveys we caught 519 animals, which means our entire dataset now consists of over 5000 captures. We are planning to undertake more surveys later this year and in 2025 with Karajarri, Nyangumarta, Ngururrpa and Ngurrara Rangers.
Zarim (Nyangumarta) measuring a Pygmy Desert Monitor Varanus eremius
Between surveys, we are working on processing the camera trap images and analysing the data to help answer our key research questions and inform fire management in the Great Sandy Desert.
How fire affects small animals in the desert — a research collaboration The project is in collaboration with Karajarri, Ngurrara, Nyangumarta and Ngururrpa Rangers, the Indigenous Desert Alliance, Kimberley Land Council and Charles Darwin University, with funding from Western Australian NRM Program, Lotterywest, the National Environmental Science Program and the Australian Research Council.
- Kristina Macdonald (Charles Darwin University)
August 2024
In our 102nd edition, our Director of Strategy discusses the shocking new proposal to frack the Kimberley, and the community’s swift, united response, as well as the threat of the industrialisation of our region. He also stresses why Yinarra Entrance Point Reef must be protected.
Our Chair writes about the exciting potential of EK's new headquarters for expanding our efforts in protecting the nature of the Kimberley.
The Campaigns team provides an update on the rise of renewable energy in the Kimberley, critiques a dubious new fossil fuel player, and alerts to carcinogen contamination in Kimberley water from oil and gas activities. They also call on the federal government to assess the fracking proposal and recap a recent Frack Free Kimberley info session in Broome.
The KNP team highlights a National Tree Day planting event, the Threatened Species Commissioner’s visit, and how desert ranger groups are studying changing fire patterns. Plus, we recap and share great photos from our annual art auction.
We pay tribute to two remarkable Kimberley champions we’ve sadly lost and give updates on recent staff changes.
Darkest day in the 50 year history of WA environmental laws
The Environmental Protection Act Amendment Bill 2024 introduced into WA Parliament today will compromise the independence of the Environment Protection Authority and exacerbate WA’s climate and nature crises.
“The Premier’s assertion that reforms are needed due to ‘green tape strangling development’ is disingenuous in the extreme. Delays have come about due to the lack of resources and staff in the EPA and the WA government should take responsibility for that.”
“This is the darkest day in the 50 year history of environmental laws in WA,” said Environs Kimberley Director of Strategy Martin Pritchard.
“Increasing the EPA Board from 5 to 9 to stack it with mining, oil and gas and property development interests does not pass the pub test; we need environmentally-focused people whose primary interest is protecting the environment, not facilitating its destruction.”
“We understand that the government will also issue the EPA with what it calls ‘Statements of Expectation’, effectively directing the EPA to follow the government's priorities. This undermines the independence of our most important environment watchdog.”
“Removing the community’s right to appeal an EPA decision not to assess a project is a retrograde, anti-democratic step to appease industry and only benefits big business.”
The government’s changes will effectively strip the EPA of its independence at a time when we need to strengthen WA’s nature laws to defend nature and the places we love because of the unfolding climate change and extinction crisis.
“The Environmental Protection Act Amendment Bill 2024 is the Cook Labor government caving in to the mining, oil and gas and real estate industries instead of looking after WA’s nature which has a spiralling number of threatened species getting closer to extinction.”
Places like the Kimberley’s National Heritage-listed Martuwarra Fitzroy River and animals like threatened Bilbys, threatened turtles and whales, and the critically endangered Freshwater Sawfish are already at severe risk of extinction and need more protection, not less.
“We need a stronger EPA and environment laws. What is currently being proposed is exactly what Liberal Premier Colin Barnett wanted and we can’t believe the Labor Government is willing to gut our environmental laws to fast track damaging projects which will supercharge the multiple environmental crises we are facing.”
Help us protect the critically endangered freshwater sawfish!
It was revealed last month in WA Parliament that 17 critically endangered freshwater sawfish died last year in a drying floodplain upstream from irrigation infrastructure on Liveringa Station.
It is the second mass sawfish death on Liveringa Station – a pastoral lease owned by billionaire Gina Rinehart, which also has a licence to pump water from a tributary of the Martuwarra Fitzroy River.
The WA Government did not make these sawfish deaths public and have not provided any information on what caused the sawfish to become trapped and die.
We are calling on Water Minister Simone McGurk and Environment Minister Reece Whitby to take immediate action and launch an inquiry into the sawfish deaths, and to review the management of water licenses and infrastructure on the Martuwarra Fitzroy River and their impacts on the sawfish.
An independent investigation is needed to provide transparency on why the sawfish died and the implications that barriers to water flow and taking water in this creek for irrigation has on species.
The Martuwarra Fitzroy River is the last stronghold for the freshwater sawfish and is considered its most important nursery and crucial to the survival of the species – which is why immediate action must be taken!
Broome Locals Warned Town Could Become “Unliveable” If Emissions Continue To Rise
One of Australia’s most prestigious climate scientists has warned a packed town hall meeting in Broome that their town is on track to become “unliveable” if carbon emissions are not dramatically reduced soon.
IPCC report author and CEO of Climate Analytics Bill Hare told the sold out event that the world is currently on track for 2.7°C degrees of warming based on current government policies.
“The number of days over 40°C degrees across the northern land surface of Australia will increase quite rapidly. In a town like Broome, it could become too hot to work outside in parts of the year within a few decades,” warned Hare.
“Cattle also would not be able to survive once temperature and humidity reaches dangerous levels. It could become quite unlivable in several decades if we don’t dramatically reduce emissions soon and act to limit warming to 1.5°C.”
Climate scientist and IPCC report author Bill Hare briefs Broome locals.
Broome locals were briefed by Greenpeace, Conservation Council of WA and Environs Kimberley on Woodside’s new plans to drill at Scott Reef to develop the Browse field off the Kimberley coast, Australia’s largest untapped gas field.
Ten years after Woodside’s failed attempt to build an onshore gas processing plant at James Price Point, the fossil fuel giant is planning to build a 900-kilometre-long pipeline to pipe gas from the Browse field to the Karratha gas plant, as part of its wider Burrup Hub project.
Woodside’s proposal, which has been submitted for federal and state approval, would see the company drill up to 50 wells at the stunning Scott Reef, turning pristine waters into an industrial gas zone.
Broome locals packed a town hall meeting on Thursday 16 May to hear about Woodside’s plans to build a massive new fossil fuel project off the Kimberley coast.
Sitting 270 kilometres off the Kimberley coast, Scott Reef is one of Australia’s most vibrant and biodiverse standalone coral reefs, home to many threatened species including endangered green sea turtles and the endangered pygmy blue whale.
Woodside wants to drill just two kilometres from Scott Reef’s edge, risking a catastrophic oil spill. Meanwhile, the pipeline Woodside wants to build will also sit within 2 to 3 kilometres of the stunning Rowley Shoals, a diving paradise regularly visited by Broome marine tourism operators.
Broome locals had not previously been informed of the dangerous risks Woodside’s plans pose for the Kimberley coast.
“Woodside’s plans haven’t been made clear and transparent to Broome residents. People are just not aware of the risks. If something goes wrong, a well blowout could spread for hundreds of kilometres,” said Martin Pritchard, Director of Strategy at Environs Kimberley.
“Woodside’s safety record has been described by unions as ‘diabolical.’ They have had two pipeline accidents already this year off Karratha. We must place the protection of the Kimberley coast and everyone's jobs in tourism over Woodside profits.”
With the project facing possible approval within the next few months, Environs Kimberley called on Federal Environment Minister Tanya Plibersek to visit Broome and Scott Reef to see first-hand what is at stake.
“This is a massive new fossil fuel development in a critically important area for endangered pygmy blue whales and green turtles - it’s completely unacceptable. Minister Plibersek can protect our oceans and wildlife for future generations by stopping Woodside’s destructive plans. We invite Minister Plibersek to come to the Kimberley and see for herself what's at stake.”
“Scott Reef is the unknown jewel in the crown of Australia’s offshore reefs. There would be a national outcry if Woodside was drilling for oil and gas on the Great Barrier Reef, we need the same kind of response here,” said Mr Pritchard.
“Broome banded together and successfully defeated Woodside in 2013. We need the community’s support again here to protect Scott Reef and the Kimberley coast from Woodside for good.”
Broome faces “helicopter hell” if new Woodside project is approved
As Woodside seeks approval to develop the Browse offshore gas field near Broome, documents obtained by Greenpeace under FOI have revealed that the tourist hotspot was subject to “unbearable” aircraft noise during the last wave of offshore construction.
During the construction phases of the Prelude and Ichthys offshore facilities, a helicopter arrived or departed approximately every twenty minutes during the peak of the activity, with military-style choppers frequently operating outside curfew hours, even on public holidays.
If Woodside’s Browse facility gets approval, Broome can expect far worse.
“Not only is Woodside’s Browse a disaster for our climate and for WA nature, but it will create absolute helicopter hell for residents in Broome,” said Environs Kimberley Director of Strategy Martin Pritchard.
“This is just one more reason why Woodside’s Browse project can’t be allowed to go ahead. We need federal Environment Minister Tanya Plibersek to protect our beautiful Kimberley coast and Broome’s multi-million dollar tourism industry, and to stop Woodside in its tracks.”
Proprietor of the Broome Hire Centre and local tourism operator Don Bacon said Woodside’s helicopters were too damaging for tourism: “Tourists come to Broome for the relaxed holiday feel - why would they holiday here if they are going to be assaulted by a pre-dawn chorus of military style helicopters? This can’t be allowed to happen. The town’s main industry is tourism; industrial noise is not compatible with a thriving visitor economy here. We want Broome to be Broome, not to turn it into Karratha!”
BACKGROUND:
In July 2017, the Prelude FLNG arrived in WA waters, some 475 kms north of Broome. Eighteen months later, on Boxing Day 2018, it became operational. Inpex also started producing at the neighboring Ichthys facility that year.
Construction and mining workers at both of these offshore facilities need to travel there by helicopter from Broome. The initial stages of setting up these facilities are particularly labour intensive and require large numbers of helicopter movements.
“As the offshore facilities are progressively hooked-up and commissioned, the number of workers and vessels required offshore will gradually reduce,” Inpex wrote at the time. “This transition will also see an aligned reduction in the number of helicopter flights operating out of Broome.”
Over those two years, noise complaints in Broome went through the roof. Airservices Australia data, released exclusively to Greenpeace Australia Pacific, show a tenfold increase in complaints from Broome in 2017-18 compared with other years.
It is little wonder that this happened. Helicopter traffic regularly peaked at over 1000 flights per month in that period. That’s 33 per day, and if all those flights had been crammed into daylight hours, it equals one flight almost every 20 minutes. Unfortunately, much of the traffic occurred at night or early in the morning, making the noise particularly disruptive, according to complaints.
No other time has come close to matching this. Throughout much of the period, starting in June 2017, when PHI began flying its helicopters out of Broome, helicopter flights made up a third of all traffic at Broome airport.
The helicopters used are twin-engined models that are significantly larger than joyflight tourist helicopters also seen in Broome.
Greenpeace has obtained copies of complaints made in Broome during the construction period. Highlighting the extent of the issue, the complaints included the following statements:
- “It's 6 am on Saturday morning and I have been awake since about 5am this morning due to the continuous loud helicopter noise, which has also woken my small children.”
- “These aircraft fly over early every morning and then fly in and out all day.”
- “Helicopter noise from Broome airport is so loud it woke me up. It drones on and on, before sunrise, in the day and now after 11pm at night. Can't sleep at night, can't sleep in in the mornings, can't concentrate in the day with these incessant periodic noise events. Health hazard.”
- “I have had tourists telling me they won't be coming back to Broome next year if this is how it is going to be, too bloody noisy.”
- "Sick to death of living in what feels and sounds [like] a war zone."
- “The impact of these helicopters is immense and it's really unbearable to hear those blades over your house. I contacted these cowboys and the airport in the past but now they don't take my calls anymore.”
- “The helicopters are using my place as a navigational point. They should be flying somewhere else instead of right over my house.”
- “The airport is very close into the Broome township. The helicopters make unacceptable noise levels near residential areas. When is the helicopter base going to be moved?”
- “Why do the helicopters sound like they are just driving up and down for an hour, its very noisy and if its not at 7-9pm its 5.45am-6.45am its very annoying and being a shift worker either end is hard to sleep. I cant wear and shouldn't have to wear earplugs.”
- “Would like to lodge a complaint for helicopter noise last twenty minutes or so, just sitting there on the runway, also excessive noise from helicopters early in the mornings taking off and returning as well as training ones on Friday nights.”
If Woodside’s Browse facility gets approval, Broome can expect far worse.
Woodside’s proposed project will dwarf what is already in place in terms of both scale and complexity - and that will mean a sharp rise in helicopter traffic.
“The complexities of projects like Browse are myriad,” the AFR has reported, “and they stretch way beyond the technical, geological and geographic.”
Woodside’s Browse operation is massively bigger than what is already in place, and will triple local production. At 11.4 million tonnes per annum, Woodside’s Browse operation is more than double the combined capacities of Prelude and Ichthys (3.6 MTPA and 1.6 MTPA).
Woodside’s project will exist in waters as deep as 700 metres, more than twice as deep as the 250 metre waters where the existing projects operate.
This will all, of course, also require a workforce that is significantly greater than was previously used.
The airport says 45,000 per year are already transported by helicopter to work on oil and gas facilities.
Unfortunately for residents, tourists and tourism operators in Broome, the approval of Woodside’s project will mean many more helicopters - in the short term, and in the long run.