Sale of decaying petroleum wells puts taxpayers at risk of funding cleanup in iconic Kimberley bay

Community groups say the Cook Government must take urgent action to protect WA taxpayers from a multimillion dollar cleanup bill for stricken petroleum infrastructure within a heritage-listed Kimberley bay, after the responsible company was sold off for a fraction of its original value. 

For years, community groups have called on the WA Government to force Rey Resources to clean up its decaying and corroding petroleum well infrastructure on the shores of King Sound, part of the National Heritage listed West Kimberley National Heritage Place. 

Photos of the degraded and partially inaccessible wells are available here.

Point Torment. Photo: Supplied.

Rey Resources’ latest quarterly update (see page two) confirms that a $400,000 deal to “dispose” of subsidiary Gulliver Productions, which owned three petroleum tenements that included the stricken wells in and adjacent to King Sound, has been finalised. 

Rey’s December 2024 quarterly report suggested there were yet to be met conditions (Page 3) as part of the deal to sell Gulliver to little-known overseas company China Guoxin Investment Holdings. Gulliver Productions was once valued at $4.8 million.

Documents obtained from the WA Mines and Petroleum department by Environs Kimberley through freedom of information laws revealed that in 2021, the three King Sound gas wells were corroding, there was oil staining on the ground, and a blow-out preventer was incorrectly positioned. The department identified 44 possible breaches in total, however it is unclear what, if any, remediation work has occurred since inspection. The 2021 inspection report recommended issuing seven “directions notices” to Gulliver Productions, which were not issued at the time for unexplained reasons.

Media reports this morning that the department recently issued one “directions notice” requiring the company to conduct cleanup works.

Groups working to protect the Kimberley are now calling on the government to take much stronger action to protect the WA taxpayer, and King Sound itself.

Stokes Bay. Photo: Supplied.

Environs Kimberley Executive Director Martin Pritchard said, “The Minister for Mines and Petroleum David Michael needs to take charge of this before we get into a ‘Northern Endeavour’ type situation. His department has allowed an obscure overseas company to take over petroleum leases for $400,000 that have potential clean-up liabilities of millions of dollars.

“We’re calling on Minister Michael to explain how taxpayers will not become liable for the clean-up costs. His department has already said that taxpayer liabilities for onshore oil and gas well clean-ups at two abandoned sites in the Kimberley amount to $2.9 million which is a significant underestimate in our view. See background below.

“Oil and gas companies appear to have free rein in the Kimberley to undertake exploration but it looks like existing legislation is failing to ensure that industry cleans up its mess. Millions of dollars of public funds are being spent on cleaning up the damage done by onshore oil and gas companies. Minister Michael needs to take charge here and stop this waste of taxpayer funds.”

Lock the Gate Alliance WA spokesperson Simone van Hattem said, “West Australians don’t want to see oil and gas companies destroy the majestic Kimberley.

“Right now, fossil fuels including fracking threaten the Kimberley, but this is a really good opportunity for the Cook Government to begin righting the wrongs that put this iconic region at risk.

“With the stroke of a pen, the Cook Government could make sure the threat of oil and gas in the heritage-listed King Sound environment is removed forever. It could make sure oil and gas never again threatens the water, land, and communities in this part of the Kimberley. It could be an important first step to banning fracking in the Kimberley altogether. 

“The Cook Government should permanently remove these tenements. They never should have been approved in King Sound region in the first place.”

West Kora. Photo: Supplied.

Background: A $1.5 million estimate for the ex-New Standard Energy well in the southern Kimberley was made in 2021 (source here) and $1.4 million for the Vienta-1 and Waggon Creek-1 wells near Kununurra (See page 44) Given the three wells that are now owned by Guoxin are located in a sensitive and relatively inaccessible coastal environment, it’s logical to assume rehabilitation costs will be much greater.

The pristine Dunham River, located in the heart of Western Australia’s spectacular East Kimberley, is under threat from a proposed mining project by Tivan that could irreparably harm its unique ecosystem and cultural heritage. The Dunham River, flowing from the remote Durack Range to the Ord River, is one of the region’s most significant and untouched water systems, with extraordinary environmental and cultural values.

Kim Bridge, a Kimberley Traditional Owner and local businessman, is calling on the WA government to reject any plans that would destroy the river’s natural beauty and ecological integrity. The mining proposal, which targets critical minerals such as fluorite and vanadium, threatens the very heart of this pristine landscape, with the deposit located directly next to the waterway.

Dunham River Channel with Paperbark Forest. Photo: Jake Parker Imagery.

A hidden gem at risk

The Dunham River flows through some of the Kimberley’s most remote and awe-inspiring landscapes, from the rugged gorges near Halls Creek to the tranquil floodplains near Kununurra. The river, largely unknown to all but locals and a few seasoned adventurers, supports a thriving ecosystem and is a key part of the life-giving water that feeds Cambridge Gulf.

In the wet season, the region’s iconic Letterbox Gorge forms a dramatic bottleneck, with waters surging up the cliffs before spilling out onto the floodplain. These extraordinary natural features make the area a haven for biodiversity and a vital resource for local communities, including the Traditional Owners, who rely on the river for food, medicine, and recreation.

Letterbox Gorge. Photo: Jake Parker Imagery.

The ethical and environmental case against mining

While the push for minerals critical to the renewable energy transition is growing, many believe these valuable resources do not need to come at the cost of the Kimberley’s most pristine landscapes. The Dunham River’s catchment area is one such example, where mining activities could irreparably damage the land and water systems, and harm the very ecosystem that is vital to the region’s sustainability.

Kim Bridge strongly opposes the mining proposal, stating, “I’ve spent over 20 years walking this land, and I’ve seen firsthand how special this place is. The Dunham River and its surrounding landscapes are an integral part of our culture, and they must be protected for future generations. The proposed open-cut mine would be a disaster for the river and the community—it’s just too big a risk, and once the damage is done, it’s irreversible.”

Mr Bridge is also sending a strong message to potential investors that this venture cannot go ahead, it’s way too important an area, a pristine cultural and natural gem not to be damaged by mining. 

Once the public sees the proposed mine site, with its open-cut approach so close to a pristine river system, there will be an outcry. This is not the kind of business that will be supported by the community or the wider public.”

Kim Bridge, Dunham River. Photo: Jake Parker Imagery.

A call for government action

Conservationists are also speaking out against the mining proposal. Martin Pritchard, Acting CEO of Environs Kimberley, emphasised the need for sustainable development that protects the region’s globally significant landscapes. “This part of the Kimberley is one of the last truly wild places on Earth. To mine here would be completely out of step with any ethical standard of development. We need the renewable energy transition to happen, but not at the cost of destroying places like the Dunham River,” said Pritchard.

Both Bridge and Pritchard are calling on the WA government to protect the Dunham River and its catchment from destructive development. They urge Premier Roger Cook and Minister for Mines David Michael to take immediate action to rule out mining in this environmentally sensitive area.

“The Kimberley is one of the last unspoiled regions in Australia, and the government has a historic opportunity to protect it for future generations,” said Pritchard.

“We’re asking Minister for Water Simone McGurk to step up and lead the way in safeguarding these precious rivers before it’s too late.”

Martin Pritchard, Dunham River. Photo: Jake Parker Imagery.

Growing sustainable businesses not environmental destruction

The Country provides a wealth of opportunities for businesses to develop that focus on preserving and showcasing its natural beauty. “There’s enormous potential for eco-tourism, cultural experiences, and sustainable industries that respect the land,” he said. “But we must think beyond short-term profits and focus on the long-term health of this landscape. The Kimberley’s future lies in protecting places like the Dunham River, not destroying them.”

More than 120 Broome locals gathered yesterday at Entrance Point Reef to call for its protection.

As the community came together, barefoot kids delighted in discovering hermit crabs under the glowing sandstone cliffs near the opalescent water covering carpets of corals.

The Broome community standing together to protect their cherished place. Photo: Damian Kelly.

With a giant red crane looming ominously over the scene, Yawuru local Tony Lee spoke powerfully about the heritage importance of Entrance Point while Ngaire Pigram, creator of the two petitions to the WA Parliament requesting the protection of Entrance Point, called for a minute of silence to honour the place’s spirit.

“What they’re bringing here is destructive industry… you’re not going to be able to hear the reef talk any more,” they said fighting back tears.

“Don’t ever think you can’t stand up for Country. You all belong here because you’ve all felt this place and you know how special it is… let’s not give up.”

Ngaire Pigram and Kath White. Photo: Damian Kelly.

Hand-painted signs by local families asked Minister for Ports David Michael why he hasn’t answered more than 1000 letters requesting protection of the reef. Other signs questioned why there has been no study done on the more than 40 species of corals living at the site.

Amelia, Martin and Bonney. Photo: Damian Kelly.

The community also called on Hon. Peter Foster, Chair of the Standing Committee on Environment and Public Affairs whose electorate is the Mining and Pastoral Region, to respond to the signatories of the two petitions requesting the protection of Entrance Point Reef.

You can see more photos and read further coverage of the community action on ABC Kimberley’s facebook post.

Our community can still protect Entrance Point Reef - if you haven’t already, please send a letter to Minister Michael to protect the reef from industrialisation here.