Onshore gas in NSW
Gas in NSW
The NSW Government supports the need for secure, reliable and affordable gas supply.
Gas is used across residential, commercial and industrial sectors in NSW, for heating, electricity and as a feedstock for chemical production.
Exploration is the first step to securing long-term domestic gas supply. Preliminary studies indicate areas of western NSW could be prospective for gas exploration, but further work is required to fully test the resource.
Where can gas exploration occur?
Exploration for gas can only be conducted under a title granted under the Petroleum (Onshore) Act 1991 (P(O) Act). Applications for new titles for exploration may only be made in areas that have been released through a competitive selection process under the P(O) Act (Strategic Release Framework).
The NSW Government is inviting applications for gas exploration in parts of the Bancannia and Pondie Range Troughs in the state’s Far West. This is the first time that new exploration licences for petroleum will be offered in NSW since 2014.
Regulation of the onshore gas industry in NSW
The NSW Environment Protection Authority (EPA) is the lead regulator responsible for compliance and enforcement of all conditions of approval for onshore gas exploration and production activities.
Work health and safety is regulated by the NSW Resources Regulator.
The regulatory framework for petroleum includes:
- Petroleum (Onshore) Act 1991 (PO Act). This governs the issuing of Petroleum Exploration Licences (PELs), Petroleum Assessment Leases (PALs) and Petroleum Production Leases (PPLs) as well as the granting of exploration activity approvals by the NSW Resources Regulator. Licences are granted subject to standard and site specific conditions to ensure effective regulation of the activity.
- Environmental Planning and Assessment Act 1979 (EP&A Act). This governs the determination of activity approvals and assessment and determination of development consents for gas exploration and production activities. Activity approvals for exploration are assessed and determined by the Resources Regulator and applications for gas production operations are assessed by the Department of Planning, Housing and Infrastructure (DPHI). Gas production operations are classified as state significant developments (SSD) under the EP&A Act. Determination of development consent includes mandatory considerations of impacts to heritage sites and the environment.
- Water Management Act 2000 (WM Act). This governs the issuing of Water Access Licences and assessment of applications for new bores by the NSW Department of Climate Change, Energy, Environment and Water (DCCEEW). Potential impacts on groundwater sources are subject to comprehensive assessment and licensing requirements across the EP&A Act, P(O) Act and WM Act.
- Protection of the Environment Operations Act 1997 (POEO Act). This governs the issuing of Environment Protection Licences (EPLs) by the NSW EPA and establishes the framework for the EPA to operate as the lead regulator for compliance matters under other environmental legislation.
Land access
Explorers must have a land access arrangement in place before entering any land to undertake exploration. Explorers must engage with landholders in good faith to establish these arrangements with dispute resolution processes available under the Petroleum (Onshore) Act 1991.
Rehabilitation
NSW Resources remains responsible for the assessment and management of the required rehabilitation security deposits. All holders of a PEL, PAL or PPL are required to lodge a security deposit with the NSW Government that covers the full rehabilitation costs to ensure the government does not incur financial liabilities in the event of a title holder defaulting on their rehabilitation obligations.