416. Hon ALISON XAMON to the minister representing the Minister for Mines and Petroleum:
My question without notice is asked on behalf of Hon Robin Chapple who is out of the Parliament on urgent parliamentary business.
I refer to the article “New Standard Energy to leave wells forsaken”, published by Energy News Bulletin on 29 April 2020.
(1) Does the minister agree that the uncapped wells represent a potential environmental catastrophe?
(2) What action is the department considering, given fiscal compensation from the proponent is improbable?
(3) What action has the department already taken to rectify the situation?
(4) Does the minister consider it equitable to use tax revenue to mitigate the shortcomings of multinational oil and gas companies?
Hon ALANNAH MacTIERNAN replied:
I thank Hon Robin Chapple for the question. The following information has been provided to me by the Minister for Mines and Petroleum.
(1) The Department of Mines, Industry Regulation and Safety continues to monitor the situation to avoid environmental threats presented by the sites.
(2) New Standard Energy remains responsible for appropriately managing the risks at the sites. DMIRS continues to consider all of the powers that exist under the Petroleum and Geothermal Energy Resources Act 1967, including penalty provisions, to ensure that New Standard Energy fulfils these obligations.
(3) As outlined in the article quoted, DMIRS has issued directions to require New Standard Energy to rectify the situation and is closely monitoring the situation.
(4) The government expects companies to adequately provide and plan for all environmental and safety obligations and has no intention to utilise tax revenues to mitigate the situation.