**5. Environmental assessment and approval**

The grant of a PGE Act licence does not provide an automatic entitlement to conduct opera‐ tions. Rather, regulated activities under the PGE Act (under s. 96) may not be carried out unless an approved Statement of Environmental Objectives (SEO) is in place, prepared on the basis of an Environmental Impact Report (EIR).

The EIR identifies all potential impacts and their risks relating to the activity and the proposed risk mitigation strategies. The SEO identifies the environmental objectives to be achieved to address the risks identified in the EIR and the criteria to be used to assess achievement of the objectives.

Through the consultation requirements of the PGE Act, DMITRE expects that licensees will initiate consultation with stakeholders, generally through information sessions or meetings prior to and during the development of their EIR and SEO, to describe their planned activities and the potential impacts, positive or otherwise, which may be experienced by the stakehold‐ ers. This is also an opportunity for the licensee to respond to any queries that their stakeholders may have and to understand stakeholder concerns, to ensure that they are addressed within the EIR and SEO.

**Figure 1.** of licensing and approval process for exploration, retention and production activities pursuant to South Aus‐ tralia's *Petroleum and Geothermal Energy Act 2000. (*Blue box *= initiated by proponent/Licensee and* Green box = initi‐

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*ated by DMITRE/ SA Government)*

**•** The regulator can prevent and stop operations, require restitution or rehabilitation, levy

**•** Industry compliance records are made public, so the efficacy of regulation is transparent. Clear, efficient and effective activity approval processes are fundamental for trustworthy regulation. Mapping approval processes can also elucidate scope for increased efficiency and reduced red tape. Figures 1, 2 and 3 illustrate the three-stage process for petroleum and geothermal licensing and approvals in South Australia with a one-stop-shop approach led by

The first stage (Figure 1) entails the grant of a licence authorising the licensee to carry out specific activities to which the licence relates. Environmental assessments are required in the second stage (Figure 2). Statements of Environmental Objectives (SEOs) and environmental assessment criteria for activity approvals are established in this second stage. Finally, in the third stage (Figure 3), a location-specific activity notification is submitted for assessment and

All three stages are required to be completed before regulated activities can commence. In practice, it is possible for some aspects of each stage to progress in parallel. This flexibility is most easily enabled through discussions with the regulator (DMITRE) early in the planning process. Figures 1, 2 and 3 specify relevant regulations (of the PGE Act) to help guide licensees

The proceeding sections describe stage 2 (Figure 2) and stage 3 (Figure 3). For details of license

The grant of a PGE Act licence does not provide an automatic entitlement to conduct opera‐ tions. Rather, regulated activities under the PGE Act (under s. 96) may not be carried out unless an approved Statement of Environmental Objectives (SEO) is in place, prepared on the basis

The EIR identifies all potential impacts and their risks relating to the activity and the proposed risk mitigation strategies. The SEO identifies the environmental objectives to be achieved to address the risks identified in the EIR and the criteria to be used to assess achievement of the

Through the consultation requirements of the PGE Act, DMITRE expects that licensees will initiate consultation with stakeholders, generally through information sessions or meetings prior to and during the development of their EIR and SEO, to describe their planned activities and the potential impacts, positive or otherwise, which may be experienced by the stakehold‐ ers. This is also an opportunity for the licensee to respond to any queries that their stakeholders may have and to understand stakeholder concerns, to ensure that they are addressed within

DMITRE, for exploration, retention, production and associated activities.

fines and cancel licences

246 Effective and Sustainable Hydraulic Fracturing

approval, where required.

through these stages.

objectives.

the EIR and SEO.

authorisation (stage 1) – refer to [2].

of an Environmental Impact Report (EIR).

**5. Environmental assessment and approval**

**Figure 1.** of licensing and approval process for exploration, retention and production activities pursuant to South Aus‐ tralia's *Petroleum and Geothermal Energy Act 2000. (*Blue box *= initiated by proponent/Licensee and* Green box = initi‐ *ated by DMITRE/ SA Government)*

**Figure 2.** Stage 2 of licensing and approval process for exploration, retention and production activities pursuant to South Australia's *Petroleum and Geothermal Energy Act 2000*. (Blue box = initiated by proponent/Licensee and Green box = initiated by DMITRE/ SA Government)

**Figure 3.** Stage 3 of licensing and approval process for exploration retention and production activities pursuant to the

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*Petroleum and Geothermal Energy Act 2000*.

**Figure 3.** Stage 3 of licensing and approval process for exploration retention and production activities pursuant to the *Petroleum and Geothermal Energy Act 2000*.

**Figure 2.** Stage 2 of licensing and approval process for exploration, retention and production activities pursuant to South Australia's *Petroleum and Geothermal Energy Act 2000*. (Blue box = initiated by proponent/Licensee and Green

box = initiated by DMITRE/ SA Government)

248 Effective and Sustainable Hydraulic Fracturing

Other agencies with the duty of care for ensuring the objects of the legislation that they administer are met are also consulted early to ensure their requirements are included within the objectives detailed in the SEO.

Once an SEO is approved, a licensee can apply for approval to undertake a specific activity that is described within the relevant EIR and SEO. With the activity approval application the licensee provides DMITRE with an Activity Notification (Regulation 20 of the PGE Act) which

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**•** an environmental assessment of the activity against the relevant SEO, including assessment as to whether the activity may have potential significant impacts on Matters of National

**•** an assessment of the fitness for purpose of the licensee management systems and any

**•** any further information or material as required by DMITRE to ensure that the department

Where MNES are identified, then referral to the Commonwealth Minister for Environment will be made by the licensee or the Department, for assessment and a decision as to whether the activity requires approval under the Environment Protection and Biodiversity Conserva‐

Licensees can be classified as carrying out activities requiring high or low level official surveillance. The level of official surveillance determines the information that must be provided in the notification, the level of scrutiny that DMITRE applies during review of the notification, and the period of notice prior to the proposed commencement of activities. The PGE Act outlines operator assessment factors (Regulation 16 of the PGE Act) that consider the licensees policies, procedures, management systems and track record to classify the licensee's

Mutual trust for compatible, sustainable land access for upstream petroleum operations are traditionally indemnified with formal land access agreements struck between licensees, potentially affected people and enterprises. To provide impetus for fair and sustainable land access for petroleum, geothermal energy and gas storage operation in the State, the PGE Act was amended in 2009 to expand the 'owner of land' definition to cover all persons who may be directly affected by regulated activities, entitling them to notices of entry and compensation. This amendment has proved to be a driver for mutual respect. With this incremental legislated requirement, owners of land are provided with opportunities to raise concerns prior to the

Landowners are provided with information on the nature of the activities to be carried out including any anticipated events and the management of their consequences to minimise risks

**•** landowner information (including copies of notices of entry sent to landowners)

has comprehensive information on the proposed activities.

contains detailed activity information including:

Environmental Significance (MNES)

facilities or equipment to be used **•** work area clearance details and report

**•** risk assessment documentation

tion Act 1999 (EPBC Act) [9]

level of official surveillance.

commencement of regulated activities.

**7. Notice of entry**

Once an EIR and draft SEO have been prepared and submitted for assessment, DMITRE uses the information provided in the EIR to complete an environmental significance assessment to determine the level of environmental impact of the activity. If prior consultation is not demonstrated, then DMITRE will conduct a broader consultation on the draft documents to ensure stakeholders including landholders and other government departments have been provided with opportunities to raise any issues of concern they may have with the activities as described or the level or accuracy of information provided, prior to SEO approval and well before the commencement of regulated activities.

The significance assessment is conducted based on the information provided in the EIR and in accordance with publicly documented criteria to assess the level of certainty in the predicted impacts, their potential consequences related to the proposed activities and the degree to which these consequences can be managed. The environmental significance criteria include assess‐ ment of the level of stakeholder concern. In cases where the level of stakeholder consultation is not demonstrated or the EIR documents high levels of stakeholder concern then this may indicate deficiencies in stakeholder consultation during the development of the EIR and draft SEO. Where DMITRE's assessment identifies such a deficiency, the determined level of environmental significance may be greater and likely to trigger more extensive stakeholder consultation by DMITRE. This ensures relevant stakeholders are provided with appropriate time for opinions to be considered and represented equitably in advance of SEO and subse‐ quent activity approvals.

The combination of the outcomes of the significance assessment criteria lead to the determi‐ nation of an overall level of environmental impact of the activity as low, medium or high. The level of environmental impact that is assigned to a particular activity in turn determines the consultation that DMITRE undertakes, both on the level assigned, and the content of the EIR and draft SEO documents. These consultation arrangements are outlined within the PGE Act, and within administrative arrangements between DMITRE and its co-regulatory agencies, which are all available on the DMITRE website [7].

Regardless of the determined level of environmental impact, all SEOs and associated EIRs are public documents and can be found on the DMITRE website [8] within the Activity Reports section of the Environmental Register.
