News Home

Sorry, this video has expired

Video Fracking Future

Louisa Rebgetz

There's growing interest in exploring the Territory's on-shore gas resources, but the surge in exploration applications has stakeholders very concerned. The controversial practice known as fracking has caused deep division in communities across the world and along Australia's eastern seaboard. So what future does fracking have here in the Northern Territory and are we ready for it?


LOUISA REBGETZ, PRESENTER: It could be worth billions of dollars to the local economy but at what cost to the Northern Territory's environment. There's growing interest in exploring the Territory's on-shore gas resources. But the surge in exploration applications has stakeholders very concerned. The controversial practice known as fracking cracks rock deep underground to tap into rich gas reserves. It's caused deep division in communities across the world and along Australia's eastern seaboard. So what future does fracking have here in the Northern Territory and are we ready for it?

LOUISA REBGETZ: These images from the United States ignited a worldwide debate about the environmental effects of a mining technique called hydraulic fracturing, more commonly known as fracking. Fracking has become big business in America and Europe. Now there's debate about whether the Northern Territory should push ahead with this controversial mining practice.

STEDMAN ELLIS, APPEA: It's very early days but the potential is very large, but it does mean that the Northern Territory has got several years to make sure we get the framework for development of this industry right and that's really important for what could be a very significant economic activity for the Northern Territory.

LOUISA REBGETZ: Fracking involves the extraction of gas from reserves deep below the surface. A well is drilled underground and a mixture of high pressure water, sand and chemicals is pushed down to break open rock. This allows the gas to be tapped.

STEDMAN ELLIS, APPEA: We're talking about an industry that's got a long track record - more than two million wells drilled and fracked so it's a well established process. It's been very important in the development of what appears to be emerging as the next generation of energy around the world, on shore natural gas.

LOUISA REBGETZ: Hydraulic fracturing for coal seam gas is already underway in Queensland - sparking widespread protests in the bush. Protesters were concerned fracking could contaminate and deplete the underground water supply.

JACINTA STANFORD, ENVIRONMENT PROTECTION AUTHORITY: Any drilling that passes through an aquifer has potential to cause damage. If those cement walls they put around the drill holes are not robust enough they can be breached and that can result in contaminants going out from the well out into the aquifers.

ROHAN SULLIVAN, PASTORALIST: We are seeing what's happening in Queensland and naturally it's raising some alarm bells that we've got a, basically you know a freight train coming at us and we've got to get ready I guess and make sure that we are prepared.

LOUISA REBGETZ: Pastoralist Rohan Sullivan runs Cave Creek Station near Mataranka, 400 kilometres south of Darwin. At the moment there's no interest from exploration companies to survey his land for potential gas resources. But Rohan Sullivan is concerned his water supplies could be contaminated if fracking occurred - even if it were hundreds of kilometres away.

ROHAN SULLIVAN, PASTORALIST: Once the all the gas has been extracted and the hole gets plugged up, the measures that are taken then have to last you know 50 or 100 years and who knows what might happen you know, as far as leakage into the aquifers.

LOUISA REBGETZ: There's no fracking currently happening on Northern Territory land. But there's increasing interest for exploration of underground gas reserves - more than 190 applications for petroleum exploration permits have been lodged in the past decade. The Northern Territory Government says any type of fracking is a long way off.

PAUL HENDERSON, CHIEF MINISTER: We don't have any applications as I understand for using that technology here in the Northern Territory.

LOUISA REBGETZ: The industry says any future fracking that could happen in the Territory will be vastly different to what's occurred in the United States or Queensland.

STEDMAN ELLIS, APPEA: The resources that are identified in the Northern Territory are largely shale gas resources. They're generally two kilometres below the ground, so very high separation, vertical separation from any ground water aquifers.

LOUISA REBGETZ: The Environment Protection Authority believes a lack of information is heightening fears.

JACINTA STANFORD, ENVIRONMENT PROTECTION AUTHORITY: There's an information void there around these new methodologies and what's happened in the eastern states is that has been filled with hysteria about this industry - not helped by the fact that there has been some fairly questionable practices in other countries in relation to this industry.

LOUISA REBGETZ: But environmentalists say the Northern Territory's track record is driving their concerns. The 2009 Montara oil spill off the north-west coast is considered one of Australia's worst oil disasters. The well failed, caught fire and as a result oil leaked into the ocean for 10 weeks. The failure to regulate the operation was laid upon the Northern Territory Resources Department.

STUART BLANCH, NT ENVIRONMENT CENTRE: If the US EPA is overwhelmed by fossil fuel industry fracking in the United States, there's no chance that our relatively small resources department with few staff, maybe half a dozen or less regulating onshore gas, will be able to adequately regulate fracking across the Territory. We're just not ready.

LOUISA REBGETZ: The Environment Centre's Stuart Blanch says even the exploration of these gas reserves has environmental impacts. He says thousands of kilometres of land has already been cleared in the Barkly region.

STUART BLANCH, NT ENVIRONMENT CENTRE: This sort of exploration is going on across the Territory right now and our mining and petroleum exploration laws are not adequate to make sure that our land is not ruined for an industry that may or may not develop.

LOUISA REBGETZ: Much of the exploration interest is on Aboriginal land. The Northern and Central Land Councils are calling for a complete halt processing any exploration permits until a proper regulatory framework is in place.

KIM HILL, NORTHERN LAND COUNCIL: I think the Territory Government is quite soft on the regulations of mines and these kind of activities. I think that they need to be a lot more harder in regards to making sure the environmental aspect is dotted, so to speak.

JACINTA STANFORD, ENVIRONMENT PROTECTION AUTHORITY: When you are doing exploration that involves drilling 1,500 metres down through aquifers you surely should be required to assess the environmental impact of that exploration.

LOUISA REBGETZ: In the United States statistics show up to 20 million litres of water is used for every well. Because fracking uses so much water, the cattle industry wants the government to ensure that any future fracking industry would face proper scrutiny.

LUKE BOWEN, NT CATTLEMEN'S ASSOCIATION: It's important that the mining industry are also subject to the Water Act which currently they are not. So any review, future review, of the Water Act we believe it's very important that the mining industry becomes part of that so that we can manage our water resources holistically.

PAUL HENDERSON, CHIEF MINISTER: In regards to a regulatory regime we will be informed by the Commonwealth inquiry that's taken place at the moment and also the Queensland inquiry so they're the ones that are doing the science, we'll take that on board in terms of any regulations for any potential for this industry in the Territory.

LOUISA REBGETZ: The Territory has a few years yet to prepare for what could be another game changer in its oil and gas history and it's being warned it's important to get the balance right.

LUKE BOWEN: There's wonderful opportunities for the Territory. I think we need to use common sense, good science and sensible policy to see that our future generations are protected.

7.30 NT