Country
Assessment
“The Australian Government and state and territory governments own Australia’s mineral and petroleum resources on behalf of the community.” The ownership of subsurface minerals is vested in the state under the mineral and petroleum legislation of states and territories, for example, Section 26(2) of Queensland’s Petroleum and Gas (Production and Safety) Act, 2004 , and Section 6(1) of New South Wales’ Petroleum (Onshore) Act, 1991 . The Australian government administers taxes and royalties for projects in the Commonwealth waters and some legacy onshore production (pre-1979 leases) in Western Australia.
At the national level, flaring and venting are regulated as part of GHG emission regulations. The Clean Energy Regulator (CER) is responsible for carbon abatement in Australia and administers the relevant laws, regulations, and programs (see section 7 of this case study). The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) regulates offshore oil and gas operations in the Commonwealth waters. The Northern Territory’s Department of Environment, Parks and Water Security (DEPWS) administers the Code of Practice: Onshore Petroleum Activities in the Northern Territory, 2019 . In Queensland, the Department of Resources administers the Petroleum and Gas (Production and Safety) Act, 2004 , which restricts flaring and venting. The Petroleum and Gas Inspectorate—part of the Resources Safety and Health Queensland (RSHQ), a statutory body established by the Resources Safety and Health Queensland Act, 2020—is the key regulator. In Victoria, the Department of Energy, Environment and Climate Action (DEECA) regulates the oil and gas industry. Earth Resources, the former regulator, is now part of this department. The Department of Mines, Industry Regulation and Safety (DMIRS) regulates the oil and gas industry in Western Australia. Companies must submit their environment and safety plans to DMIRS before oil and gas production can begin. In New South Wales, several agencies are responsible for regulating the gas industry. In 2015, the Environment Protection Authority, which issues environment protection licenses, was appointed as the lead regulator for all gas activities. In South Australia, the Department of Energy and Mining, the Energy Resources Division, and the Environment Protection Authority coordinate responsibilities for regulating the oil and gas industry. Mineral Resources Tasmania regulates activities in the minerals and petroleum industries, including environmental management. The Environment Protection Authority regulates the mining industry and underground oil storage but not the upstream exploration.
At the national level, the CER administers the Safeguard Mechanism , which caps total emissions from large oil and gas facilities (see section 2 of this case study), and the NGER framework, which covers the measurement and accounting of various emission sources, including flared or vented volumes, and fugitive emissions. The CER also administers renewable energy targets and the Emissions Reduction Fund. NOPSEMA regulates the environmental as well as health, safety, and structural integrity provisions of the OPGGS Act . Each offshore oil and gas activity must have a NOPSEMA-approved environment plan, which must demonstrate that environmental impacts, including those associated with flaring, venting, and fugitive emissions, are reduced to an ALARP level and are acceptable. NOPSEMA accepts environment plans only if it determines that they meet the requirements of the OPGGS (Environment) Regulations, 2009 . The National Offshore Petroleum Titles Administrator (NOPTA) is responsible for “assisting and advising the Joint Authority and the responsible Commonwealth Minister” and managing data and title registers. The Northern Territory’s DEPWS, established in September 2020, assumed the functions of the previous Department of Environment and Natural Resources, including regulating petroleum operations and their environmental impacts. In Queensland, the Department of Resources administers the Petroleum and Gas (Production and Safety) Act, 2004 . Meanwhile, the Department of Environment and Science issues the Environmental Authority after evaluating the environmental impact statement, which is either mandatory or voluntary, as outlined in the Environmental Protection Act, 1994 . In New South Wales, the Environment Protection Authority is the lead regulator for all onshore petroleum exploration and production activities and is responsible for all compliance and enforcement activities under the Petroleum (Onshore) Act, 1991 , except for work health and safety, which is regulated by the Resources Regulator (formerly the Division of Resources and Energy within the Department of Industry). The Resources Regulator and the Environment Protection Authority collaborate when engineering standards designed for human safety contribute to environmental performance. The Department of Planning and Environment issues development consents. A memorandum of understanding outlines how different agencies collaborate to regulate the gas industry while avoiding duplication. In South Australia, the Department of Energy and Mining’s Energy Resources Division has an administrative arrangement with the Environment Protection Authority to coordinate responsibilities for regulating the oil and gas industry.
As per the OPGGS Act , NOPSEMA undertakes inspections and investigations and can enforce injunctions and civil penalties. In particular, NOPSEMA conducts compliance-monitoring activities to assess whether an operator is fulfilling the commitments under an accepted environment plan. The environment plan may include various control measures in relation to flaring, venting, and fugitive emissions. Such measures may include, for example, leak detection and repair (LDAR) programs and procedures in case of safety or emergency incidents. The focus of NOPSEMA’s inspections is to ensure the implementation of these measures and their improvement over time. In Queensland, the Petroleum & Gas Inspectorate conducts inspections, audits, and investigations at facilities across the natural gas supply chain. These activities are conducted as per the Petroleum and Gas (Safety) Regulation, 2018 , and cover all facilities across this supply chain, from production sites to distribution networks. In Western Australia, DMIRS inspectors can inspect petroleum facilities, interview people, and gather evidence to ensure compliance with regulations and submitted environment and safety plans. In New South Wales, coal seam gas and petroleum operators seeking to obtain the environment protection license mandated by the Environment Protection Authority must demonstrate that they have taken measures to minimize fugitive emissions through continuous monitoring, LDAR programs, and various assessments. Schedule 2A of the POEO Act enables the Environment Protection Authority to enforce compliance with environmental laws and license conditions and issue formal warnings, clean-up and prevention notices, penalty notices, and legally binding pollution reduction programs in case of noncompliance. For serious matters, the Environment Protection Authority can also pursue prosecution. In South Australia, the regulatory approach is similar to that of New South Wales. The Energy Resources Division pursues a monitoring and compliance policy based on the enforcement pyramid, which correlates the severity of enforcement actions with offenses. According to the Petroleum and Geothermal Energy Act, 2000 , the regulated entity, not the regulator, has the primary responsibility for detecting and rectifying noncompliance. The Environment Protection Authority follows a similar approach to monitoring and compliance. The approach ties compliance actions to the seriousness of impacts and the significance of risks. For exploration activity to commence, Mineral Resources Tasmania must approve work programs after a site inspection.
No explicit statements on flaring and venting without prior approval were identified in the documents consulted. Section 10 of this case study addresses the regulatory approach at the national and state levels.
Regulation 14 of the OPGGS (Environment) Regulations, 2009 , requires titleholders to maintain “a quantitative record of emissions and discharges (whether occurring during normal operations or otherwise).” This record is used to assess whether the environmental performance outcomes and standards outlined in the environment plan are achieved and met. According to Regulation 27 (Storage of Records), a titleholder must store the environment plan and associated reports (monitoring, audit, review), and records (detailing emissions and discharges, calibration and maintenance of monitoring devices) “in a way that makes retrieval of the environment plan reasonably practicable.” Regulation 28 outlines the titleholder’s responsibility for making records available when requested by NOPSEMA or its inspectors. The Code of Practice: Onshore Petroleum Activities in the Northern Territory, 2019 , follows the requirements of the Petroleum (Environment) Regulations, 2016 , on recording, monitoring, and reporting (Schedule 1, clause 11). In particular, the code requires maintaining inspection reports and keeping maintenance records, besides recording the volumes associated with leaks and vents and including them in mandatory reports (see section 13 of this chapter). In Queensland, measurement schemes required by the Petroleum and Gas (Production and Safety) Act, 2004 , must include a description of the records to be maintained and the minimum period for which they will be kept. Such records may include anomalies, complaints, and actions to be rectified. Records associated with the safety management system are kept for seven years (Section 678A). In New South Wales, the POEO Act, 1997 , empowers regulators to require records (Part 7.3) as part of their investigation powers. These requirements apply to all regulated activities and are not specific to flaring, venting, or methane emissions. In Victoria, operations must maintain “quantitative records of emissions and discharges into the air… that can be monitored and audited against environmental performance standards” (Section 33 of Petroleum Regulations, 2021; see footnote 22). In South Australia, the Environment Protection Act, 1993 , requires “the maintenance of a record of trends in environmental quality,” which can be used to ensure compliance with environmental requirements. In Tasmania, the Mineral Exploration Code of Practice, 2012, requires licensees to document their systems for controlling or detecting environmental, health, and safety hazards. These documents must be retained for inspection purposes.
At the national level, no evidence specific to flaring, venting, or methane methods and measurement frequency could be found in the sources consulted. Regulation 14 of the OPGGS (Environment) Regulations, 2009 , requires that the environment plan implementation strategy “provide for sufficient monitoring, recording, audit, management of nonconformance and review of the titleholder’s environmental performance.” Part D.5.1 of the Code of Practice: Onshore Petroleum Activities in the Northern Territory, 2019 , requires routine inspections for the detection of fugitive methane emissions by “properly trained and competency-assured” personnel using calibrated gas detectors. Compressor stations and pneumatic devices must be inspected every quarter, well pad equipment biannually, and all other facilities annually. Inspection after major maintenance must be conducted within 48 hours of restart. If optical gas imaging equipment is used, an annual inspection as per the United States Environmental Protection Agency (US EPA) Method 21 must be performed. In Queensland, the Code of Practice for Leak Detection, Management & Reporting for Petroleum Operating Plant, 2022 , requires operators to conduct leak surveys at least every five years. Still, the frequency depends on multiple factors, including age of the facility or equipment, characteristics of petroleum, facilities’ design, and proximity to other infrastructure. Surveys must be “conducted by trained personnel using industry-accepted gas detection instruments calibrated in accordance with the manufacturer’s requirements.” In Western Australia, according to Regulation 34 of the Petroleum and Geothermal Energy Resources (Environment) Regulations, 2012 , emissions and discharges can be monitored and reported either continuously or at specific intervals as outlined in the environment plan. Operators are responsible for testing the monitoring equipment to ensure accuracy.
NGER (Measurement) Determination, 2008, establishes calculation methods and prescribes specific methods for various sources of GHG emissions, including those associated with flaring and venting, and fugitive emissions at oil and gas facilities. Engineering formulas are based on emission factors, fuel composition shares, destruction efficiency of fuel type, and other inputs. For oil or gas exploration and development, Subdivision 3.3.2.2 provides three emission estimation methods (formulas)—one with a variant, for emissions from flaring, depending on whether carbon dioxide, methane, or nitrous oxide is released. Subdivision 3.3.2.3 provides methods for estimating fugitive emissions from process vents, system upsets, and accidents. Similarly, Division 3.3.3 provides a detailed assignment of different methods for estimating emissions from flaring and fugitive methane emissions during crude oil production; Division 3.3.4 provides the same for crude oil transport; Division 3.3.5 provides the same for crude oil refining; and several other divisions provide methods for estimating fugitive emissions from the natural gas supply chain.
The OPGGS (Resource Management and Administration) Regulations, 2011, require field development plans. However, the section on the content of the field development plan (Regulation 4.07) is not explicit regarding flaring, venting, or methane emissions, Regulation 7.19 requires petroleum production licensees to include “gaseous petroleum flared or vented” in their monthly production report. Also, Regulation 4.14 requires “details of any proposed disposal or flaring of any produced hydrocarbons” in an application to recover petroleum before the acceptance of a field development plan. This suggests that the plans will likely include flaring details. Victoria’s OPGGS Regulations, 2021 , include the same requirements as Regulations 7.19 and 4.14. In addition, Victoria’s Petroleum Act, 1998 , requires a petroleum production development plan (Division 6). NOPTA reviews field development plans. Regulation 4.18 of the OPGGS (Resource Management and Administration) Regulations, 2011, requires operators to submit to NOPTA a rate of recovery application, which must be supported by “evidence that the equipment and procedures used to determine the quantity and composition of petroleum and water have been approved.” The submission on equipment and procedures should describe the metering of flaring and additional discharge (if any) within the processing facility. If the Offshore Petroleum (Royalty) Act, 2006, applies, the equipment and procedures application should be submitted to Western Australia’s DMIRS. Once this is approved, the rate of recovery application can be submitted to NOPTA. Part D.5.1 of the Code of Practice: Onshore Petroleum Activities in the Northern Territory, 2019 , requires a Methane Emissions Management Plan (MEMP), which demonstrates operators’ plans to reduce emissions to a level that is ALARP and acceptable through active monitoring and management. The MEMP must contain the practices followed for selecting equipment, designing standards, and maintaining equipment; the methodology and frequency of monitoring; leak classification and response; and emissions reporting. In Queensland, the Code of Practice for Leak Detection, Management & Reporting for Petroleum Operating Plant, 2022 , requires operators to develop a leak management plan to ensure leaks from wells, gathering systems, and processing facilities are detected, classified, controlled, and reported. In Western Australia, Part 6 of the Petroleum and Geothermal Energy Resources (Resource Management and Administration) Regulations, 2015 , requires a field management plan (FMP) for petroleum recovery. The FMP must include detailed arrangements for petroleum disposal, venting, or flaring during production operations (Schedule 3) and must be consistent with the environment plan. The DMIRS must approve the FMP before production can begin. Regulation 58 requires submitting “details of any proposed disposal or flaring of produced petroleum” in an application to recover petroleum before the acceptance of an FMP. Part 3 of the regulations also requires a well management plan, which demonstrates that the risks of well activities will be ALARP, including those associated with flaring. In South Australia, the Petroleum and Geothermal Energy Act, 2000 , requires work programs to be submitted as part of the application for exploration, retention, and production licenses. There are no specific instructions concerning flaring, venting, or methane emissions, but “sound production practice” is expected for a royalty waiver, and the minister may consider variations to the work plan before approving it. In Tasmania, the Mineral Exploration Code of Practice, 2012, requires work programs to include details on potential environmental impacts and mitigation measures.
There are civil penalties for noncompliance with the requirements of the OPGGS Act and the associated regulations. For example, a titleholder undertaking an activity without an environment plan is fined 80 penalty units. Similarly, 30- to 80-penalty-unit fines are imposed for not complying with the environment plan, not reporting incidents, not storing records per regulations, and other violations of the OPGGS (Environment) Regulations, 2009 . Violations of the field development plan provisions of the OPGGS (Resource Management and Administration) Regulations, 2011, can attract a 60- to 80-penalty-unit fine. These penalties are enforceable under Part 4 of the Regulator Powers (Standard Provisions) Act, 2014. A penalty unit is currently set at $A 275 in the latest version of the Crimes Act, 1914. (Please note that Australia’s jurisdictions have assigned penalty units at different amounts.) In Queensland, according to the Petroleum and Gas (Production and Safety) Act, 2004 , operators are fined 500 penalty units for noncompliance with measurement obligations, including the measurement of any flared or vented petroleum (Section 801). In chapter 8, specific penalties ranging from 100 to 500 penalty units are assigned for noncompliance with various measurement requirements and regulatory notices. The penalty unit is set based on the Penalties and Sentences Act, 1992, and was increased to $A 154.80 as of July 2023. In Western Australia, the Petroleum and Geothermal Energy Resources (Environment) Regulations, 2012 , specifies a penalty of $A 10,000 for noncompliance with the environmental plan requirements (Part 2) and $A 5,500 for noncompliance with monitoring and reporting requirements (Regulation 34). In New South Wales, penalties can be imposed under various legislation governing the petroleum sector. These are referenced in Schedule 2A of the POEO Act . According to Section 78A of the Petroleum (Onshore) Act, 1991 , breach of environmental requirements can attract a 10,000-penalty-unit fine for corporations and a 2,000-penalty-unit fine for natural persons, with a 10 percent additional penalty for each day of continuing offense. In the latest edition of New South Wales’ Crimes (Sentencing Procedure) Act, 1999, the penalty unit is $A 110. In Victoria, noncompliance with various requirements of the petroleum production development plan attracts a 240-penalty-unit fine, according to Division 6 of the Petroleum Act, 1998 . As of July 2023, the penalty unit is $A 192.31. In South Australia, Part 11 of the Environment Protection Act, 1993 , allows the Environment Protection Authority to impose civil penalties. Under Part 12 (Environment Protection) of the Petroleum and Geothermal Energy Act, 2000 , a penalty of $A 120,000 is imposed for noncompliance with environmental requirements.