A 10 year moratorium on fracking for the production of gas in the Limestone Coast region of South East South Australia has been passed into law in the South Australian House of Assembly.
The Petroleum and Geothermal Energy (Ban on Hydraulic Fracturing) Amendment Bill 2018 was brought to parliament by Member for Mount Gambier, Troy Bell.
The South Australian Chamber of Mines and Energy (SACOME) has condemned the decision and says the resources sector now has serious concerns with the message this is sending to existing and new resource industry investors into the state, in areas where land access is an issue and raises sovereign risk concerns.
Rebecca Knol, CEO of SACOME said the decision by South Australian Government is a move that dismisses the track record of an industry, creates sovereign risk concerns, investment uncertainty and regulatory confusion with the potential to limit resources sector investment at a time when it is most needed for South Australia.
“It sends a worrying message to the resources sector that politics is more important than evidence-based industry regulation.”
“Confidence in the regulatory system is the cornerstone of investment and decisions made for political reasons undermine that confidence.”
On the other hand, Limestone Coast Protection Alliance spokesperson Angus Ralton said he is delighted that the promised 10 year fracking ban has been put into law.
“It’s a huge relief for us to have certainty that the water resources and agricultural industries of the Limestone Coast will be safe from fracking for 10 years.”