Client update: Resources – 16 February 2007
Queensland Tribunal rules on greenhouse gas emissions
In brief: In a
landmark decision for the Queensland mining industry, the
Queensland Land and Resources Tribunal has handed down its first ruling regarding
greenhouse gas emissions. Lawyer Oliver Lawson and Partner Ben Zillmann
The Queensland Conservation Council (the QCC) and the Mackay Conservation Group (the MCG) had lodged objections to Xstrata's mining lease and environmental authority applications for its Newlands coal mining operations, based on concerns about greenhouse gas (GHG) emissions associated with the mine. In his decision1, President Koppenol recommended that Xstrata be granted the authorities it was seeking without any conditions requiring the offsetting of GHG emissions, which had been sought by the conservation groups.
The conservation groups' objections related to GHG emissions caused by the mining, transport and use of coal from the proposed mine, the effect that GHG emissions have on global warming, and the effect that global warming might have on the Queensland environment. The QCC sought to impose a condition on the mining lease that the GHG emissions caused from the mining, transport and use (ie subsequent 'downstream' burning of the coal overseas) of the coal be avoided, reduced or offset.
The basis of the QCC's objection (which was essentially mirrored by the MCG) was that, unless a condition was placed on the mining lease to avoid, reduce or offset the GHG emissions that are likely to result from the mining, transport and use of the coal, then:
- there would be an adverse impact on the environment;
- the public right and interest would be prejudiced;
- a good reason would exist to refuse the mining lease application; and
- the principles of ecologically sustainable development would not be adhered to.
The Tribunal ultimately was not satisfied that there was a demonstrated causal link between the mine's anticipated GHG emissions and any discernable harm or environmental impact caused by global warming. The Tribunal considered that, even in the event that this particular mine eliminated all of its GHG emissions, the evidence did not show that there would be any effect on global warming as a result.
The Tribunal further concluded that the imposition of a condition as sought by the QCC had the potential to drive wealth and jobs overseas and to cause serious adverse economic and social impacts on Queensland.
Finally, the Tribunal considered that in the absence of any universally applied policies for GHG reduction, requiring an individual coal mine (and no others) to limit or reduce its GHG emissions would be arbitrary and unfair.
AAR represented Xstrata in the Tribunal proceedings.
Footnotes
- Xstrata Coal Queensland Pty Ltd & Ors [2007] QLRT 33.
For further information, please contact:
- Ben ZillmannPartner,
Brisbane
Ph: +61 7 3334 3538
Ben.Zillmann@aar.com.au - Nic ToléPartner,
Perth
Ph: +61 8 9488 3762
Nic.Tole@aar.com.au - Scott LangfordPartner,
Melbourne
Ph: +61 3 9613 8926
Scott.Langford@aar.com.au - Tony WassafPartner,
Sydney
Ph: +61 2 9230 4783
Tony.Wassaf@aar.com.au - Gavin MacLarenInternational Partner,
Singapore
Ph: +65 6535 6622
Gavin.MacLaren@aar.com.au
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