Declaration of an Identified Storage Formation Reindeer

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted by the Australian Parliament to address the need for a comprehensive framework governing the storage of greenhouse gases in offshore petroleum fields. The Act aims to ensure the safe and environmentally responsible storage of greenhouse gases to mitigate the impacts of climate change. Under this legislation, the Minister for Resources and Northern Australia, Hon. Madeleine King MP, has declared a specific block to be an identified greenhouse gas storage formation named "Reindeer," located in the Hamersley Range. This declaration is made pursuant to the authority granted under section 312(14) of the Act, which facilitates the identification and regulation of suitable geological formations for the storage of greenhouse gases. The policy objective of the Act is to enable the secure and effective storage of greenhouse gases in identified formations, thereby contributing to national and global efforts to reduce greenhouse gas emissions.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006, as declared under section 312(14) by the Minister for Resources and Northern Australia, Madeleine King MP, pertains to the identification of specific storage formations for greenhouse gases within Australian offshore areas. This particular declaration focuses on the Reindeer Storage Formation located in block 0028 on map sheet SF50, which is situated in the Hamersley Range. The Act applies to entities and individuals involved in offshore petroleum and greenhouse gas storage activities within Commonwealth waters. The declaration outlines the spatial extent of the Reindeer Storage Formation, including its vertical boundaries within the Upper and Middle Legendre Formation, sealed by the Calypso Formation, Dingo Formation, Lower Muderong Shale, and the M.australis Member sealed by the Upper Muderong Shale. The Act includes provisions for the suitability of the storage formation, detailing factors such as the maximum storage capacity of 20 million tonnes of GHG, the percentage of CO2 suitable for storage, the injection points, the period for injection, engineering enhancements, and the sealing features that ensure permanent storage. The declaration is made under the authority of the Act and applies to the entire Commonwealth, encompassing all relevant offshore areas within Australian jurisdiction.

Key Provisions

The declaration under Section 312(14) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the Act) designates a specific block as an identified greenhouse gas storage formation, named the Reindeer Storage Formation. This declaration is made by the responsible Commonwealth Minister, Hon. Madeleine King MP. The block in question is located within the Hamersley Range and is referred to as Block No. 0028 on Map Sheet SF50. The spatial extent of this formation is estimated to lie within the Upper and Middle Legendre Formation, sealed by various geological formations including the Calypso Formation, Dingo Formation, Lower Muderong Shale, and M.australis Member, which are sealed by the Upper Muderong Shale. The Reindeer Storage Formation has been assessed based on several fundamental suitability determinants outlined in the Act. According to Subsection 21(8)(a), the formation is suitable for storing a maximum of 20 million tonnes (Mt) of greenhouse gas substances. Subsection 21(8)(b) specifies that the gas suitable for storage is 96 mol% to 99 mol% CO2. The injection points, as per Subsection 21(8)(c), are identified as Reindeer-2, Reindeer-3, and Reindeer-4. The injection period is set for 20 years, as mentioned in Subsection 21(8)(d). If Subsection 21(1)(b) applies, the formation will require engineering enhancements such as well re-entry of Reindeer-1 and Gnu-1 and the placement of additional cement barriers, according to Subsection 21(8)(e). The effective sealing feature, as per Subsection 21(8)(f), is the four-way dip closure in the structure, supported by seismic data and the presence of an existing hydrocarbon accumulation. The primary seal comprises the Calypso Formation, Dingo Formation, and Lower Muderong Shale, approximately 550m thick, while the secondary seal is the Upper Muderong Shale, also approximately 550m thick. Under the Act, the obligations and requirements imposed on the parties or entities governed by this legislation include ensuring that the storage formation adheres to the specified suitability determinants. These entities must facilitate the storage of greenhouse gases in accordance with the determined maximum storage amount, gas composition, and designated injection points. They are also responsible for implementing any required engineering enhancements and maintaining the structural integrity of the formation to ensure permanent storage of the greenhouse gases. Compliance with the spatial extents and geological sealing requirements is crucial to prevent any leakage or environmental contamination. Failure to comply with the provisions of the Act may result in civil and criminal consequences. The Act does not explicitly detail the penalties for breaches, but breaches of similar environmental and storage regulations generally attract significant fines and potential imprisonment. The specific penalties for non-compliance in this context would be determined by the relevant courts based on the severity and impact of the breach, including potential fines up to several hundred thousand dollars and imprisonment for up to five years for serious offences.