**8. Compliance and enforcement**

DMITRE continuously monitors licensee performance and compliance with the PGE Act. South Australia's approach to provide fair, predictable and trustworthy regulation has been described by Malavazos [10] and entails a publicly available compliance policy [11] which is available on the DMITRE website. South Australia's compliance policy is centred on the prevention of harmful incidents, however depending on the severity of an incident may culminate in prosecution and licence cancelation when warranted. The compliance policy is summarised as a compliance pyramid as shown below in Figure 4.

As well as information provided through the Activity Notifications, DMITRE regularly meets with licensees to discuss their activities and compliance, and conducts ongoing monitoring

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Salient findings from the Roadmap [2] and key aspects of South Australia's current regulation of unconventional gas development, including the regulation of hydraulic fracture stimula‐

**2.** Operators and regulators must act early to effectively engage and inform stakeholders so they can make informed decisions on activities. This engagement is best initiated well ahead of land access. South Australia's regulatory framework drives operators to explain their planned activities and any potential risks, seek feedback on areas of interest or concern for the community, and establish relationships and terms for land access with

stakeholders well before applying for activity approval from regulators.

and surveillance through both field and desktop studies.

**Figure 4.** South Australia's compliance enforcement policy under the PGE Act.

**1.** Trusted land access is the most valuable lead factor and outcome.

**9. Conclusions**

tion, are summarised below.

DMITRE prepares a PGE Act Annual Compliance Report for the purpose of outlining:


DMITRE's Petroleum and Geothermal Energy Act Compliance Report [12] and Company Annual Reports [13] which report on activities undertaken within each licence area are all publicly available through DMITRE's website.

**Figure 4.** South Australia's compliance enforcement policy under the PGE Act.

As well as information provided through the Activity Notifications, DMITRE regularly meets with licensees to discuss their activities and compliance, and conducts ongoing monitoring and surveillance through both field and desktop studies.

#### **9. Conclusions**

to an acceptable level, to enable the landowner to make informed decisions on whether this

Landowners are entitled to object to the licensees proposed entry by giving notice to the licensee within 14 days of the licensee notice of proposed entry and the activity cannot be undertaken until the dispute is resolved. The licensee and the landowner should attempt to reach an agreement of terms under which the licensee may enter the land, or if the risks of the activity to the landowner are too high the licensee may choose to modify the activity and reissue the Activity Notification. Landowners may also raise any issues or concerns associated with the conduct of activities with DMITRE. In rare cases where the licensee and the landowner cannot resolve the dispute, then the Minister may attempt to mediate between the parties or either party may apply to the Warden's court for resolution. To date, disputed Notices of Entry have been resolved through satisfactory negotiation and have not reached the Warden's Court.

Also, under the PGE Act, owners of land are entitled to appropriate compensation from petroleum licensees for any losses, deprivation or reasonable costs sustained during both the process of negotiating land access and for the full period of land access, right through to the

DMITRE continuously monitors licensee performance and compliance with the PGE Act. South Australia's approach to provide fair, predictable and trustworthy regulation has been described by Malavazos [10] and entails a publicly available compliance policy [11] which is available on the DMITRE website. South Australia's compliance policy is centred on the prevention of harmful incidents, however depending on the severity of an incident may culminate in prosecution and licence cancelation when warranted. The compliance policy is

DMITRE prepares a PGE Act Annual Compliance Report for the purpose of outlining:

**•** The compliance monitoring and surveillance activities carried out by DMITRE during each

**•** Providing an overview of the regulatory performance of the petroleum and geothermal

**•** Persuasive, compulsive and punitive enforcement actions that may have been taken during

DMITRE's Petroleum and Geothermal Energy Act Compliance Report [12] and Company Annual Reports [13] which report on activities undertaken within each licence area are all

summarised as a compliance pyramid as shown below in Figure 4.

industries in accordance with the requirements of the PGE Act;

**•** All serious incidents that may have occurred from the previous year; and

year for activities regulated under the PGE Act;

the year (as indicated in Figure 4)

publicly available through DMITRE's website.

would have an impact on the land.

252 Effective and Sustainable Hydraulic Fracturing

decommissioning of any facilities.

**8. Compliance and enforcement**

Salient findings from the Roadmap [2] and key aspects of South Australia's current regulation of unconventional gas development, including the regulation of hydraulic fracture stimula‐ tion, are summarised below.


**3.** Regulation for compatible, multiple use of land in Australia is undertaken with both risks and net benefits in mind. Considerable net benefits flow from community ownership of subsurface resources when development effectively manages risks to social, natural and economic environments.

**Acknowledgements**

**Author details**

**References**

Mieka Webb and Dale Wenham

are listed in Appendix 1 of the Roadmap [16].

The authors thank the participants in the Roundtable for Unconventional Gas Projects in South Australia for their valuable advice in developing the Roadmap for Unconventional Gas Projects in South Australia. Participants in the Roundtable to its publication in December 2012

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Barry Goldstein, Michael Malavazos, Alexandra Wickham, Michael Jarosz, Dominic Pepicelli,

Energy Resource Division, 'Department for Manufacturing, Innovation,Trade, Resources &

[1] Petroleum and Geothermal Energy Act (2000). South Australia http://www.legisla‐ tion.sa.gov.au/LZ/C/A/PETROLEUM%20AND%20GEOTHERMAL%20ENERGY

[2] Department for Manufacturing, Innovation, Trade, Resources and Energy. Roadmap for Unconventional Gas Projects in South Australia; December (2012). http://

[3] Goldstein, B. A, Alexander, E, Cockshell, D, Malavazos, M, & Zabrowarny, J. The Virtuous Life-Cycle for Exploration and Production (E&P): Lead and Lag Factors.

[4] Environmental Protection Act (1993). South Australia http://www.legisla‐ tion.sa.gov.au/LZ/C/A/ENVIRONMENT%20PROTECTION%20ACT%201993/

[5] Malavazos, M. A Model for Environmental and Health and Safety Regulation for the Mining and Upstream Petroleum Industries. Masters thesis. Flinders University

[6] Productivity Commission Research Report- Review of Regulatory Burden on the Up‐ stream Petroleum (Oil and Gas) Sector; (2009). www.pc.gov.au/\_\_data/assets/

www.petroleum.dmitre.sa.gov.au/SA\_Unconventional\_Gas\_roadmap

Energy (DMITRE), State Government of South Australia, Australia

%20ACT%202000/CURRENT/2000.60.UN.PDF

pdf\_file/0011/87923/upstream-petroleum.pdf

APPEA Journal; (2007). , 47

CURRENT/1993.76.UN.PDF

South Australia; (1998).

	- **•** Measure, disclose, engage;
	- **•** Watch where you drill;
	- **•** Isolate wells protect against leaks;
	- **•** Treat water responsibly;
	- **•** Eliminate venting and minimise flaring;
	- **•** Think big; and
	- **•** Consistent high environmental performance
