Santos Limited · ASX:STO
Santos — Investor Presentation (May 2012)
13 slides from Santos's investor presentation, May 22, 2012
Slide 1: CSG Regulation
CSG Regulation Santos PEL456 Scone CCC CSG Regulation – Steve Barry – Resources & Energy – 22 May 2012
Slide 2: Division of Resources & Energy
Division of Resources & Energy § NSW Trade & Investment – Division of Resources & Energy (DRE) • Resources Branch – Environment – Safety – Titles – Royalties – Geological Survey § Minister for Resources & Energy (Chris Hartcher)
Slide 3: CSG regulatory framework
CSG regulatory framework § Petroleum (Onshore) Act 1991 § Other legislation applies: – Environmental Planning and Assessment Act 1979 • Part 5 environmental assessment • Part 4 State Significant Development – Water Management Act 2000 – Protection of the Environment Operations Act 1997 – Threatened
Slide 4: Agency regulatory roles
Agency regulatory roles § DRE – titles, exploration approvals, safety, rehabilitation and enforcement § DP&I – production approvals § EPA – pollution licensing § NOW – water licensing & approvals (all the above agencies are jointly involved in environmental assessment and enforcement of CSG activiti
Slide 5: Petroleum (Onshore) Act 1991
Petroleum (Onshore) Act 1991 § Petroleum titles: – Petroleum Special Prospecting Authority (PSPA) – Petroleum Exploration Licence (PEL) – Petroleum Assessment Lease (PAL) – Petroleum Production Lease (PPL) § PEL is a prerequisite for CSG exploration § Subject to conditions § No exploration can occur
Slide 6: Landholder rights
Landholder rights § Access arrangements can cover: – the time during which the explorer is to be permitted access to the land – the parts of the land which may be explored – the means by which the explorer may gain access to those parts of the land – the kinds of exploration that may be carried out
Slide 7: Landholder rights (continued)
Landholder rights (continued) § The explorer is required to pay the reasonable legal costs of the landholder in obtaining initial advice about the making of the arrangement. § Arbitration and recourse to the Land and Environment Court are also available. § A standard access arrangement is being nego
Slide 8: Title conditions
Title conditions § Petroleum title conditions cover: – Activity approval and environmental assessment requirements – Pollution controls – Erosion controls – Rehabilitation requirements – Security bond requirements
Slide 9: Government initiatives
Government initiatives § BTEX ban § Evaporation pond ban § Codes of Practice – Exploration – Well Integrity – Fracture stimulation – Emissions detection & reporting § Gateway process/Commonwealth IESC § Aquifer interference policy / water licencing § Community consultation
Slide 10: CSG activity approval process
CSG activity approval process § Most CSG activities require approval by DRE § Comprehensive new guidelines apply: www.resources.nsw.gov.au/environment/pgf § All CSG drilling and associated activities are jointly assessed by: – Division of Resources & Energy (DRE) – Department of Planning & Infrastru
Slide 11: Compliance & enforcement
Compliance & enforcement § DRE undertakes regular audits and inspections § Responses to a compliance issue include: – Preliminary investigations to gather information about the nature of the event/incident, the seriousness and potential risks to the environment or public safety – Formal investigatio
Slide 12: Enforcement options
Enforcement options The following escalating actions aim to achieve an outcome which is proportionate to the risk and potential impacts of the non-compliance: – Remedial advice and formal communications – Auditing – Compliance investigations – Warning notices/letters – Statutory directions – Penalty
Slide 13: More information
More information § See www.resources.nsw.gov.au for: – General information – Landholder rights – New title applications (Minview) – Title conditions (DIGS) – Activity approvals – DRE enforcement actions – Making a complaint