EPBC Act s158 exemption decisions published, 04/10/2021 to 10/10/2021

Overview

The Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) was enacted to provide for the protection of the environment, particularly matters of national environmental significance. The Act was introduced to address the need for a coordinated national approach to environmental protection, ensuring that significant impacts on the environment are properly assessed and managed. The Act is administered by the Australian Parliament, with a policy objective of achieving a balance between environmental protection and economic development. In this context, the Minister for the Environment has issued an exemption under section 158 of the EPBC Act, allowing the Commonwealth, represented by the Department of Industry, Science, Energy and Resources, and associated personnel, to undertake specific activities related to the Northern Endeavour Floating Production, Storage and Offtake Facility without the full application of Part 3 of the Act. This exemption is intended to facilitate the management and safety of operations critical to maritime activities while ensuring that broader environmental protections remain in place.

Scope and Application

The exemption notice issued under section 158 of the Environment Protection and Biodiversity Conservation Act 1999 (Cth) by Minister for the Environment, Sussan Ley, pertains specifically to actions undertaken by the Commonwealth, represented by the Department of Industry, Science, Energy and Resources (or any other Commonwealth agency), and those acting on their behalf. The exemption applies to "lighthouse operations" and "short-term well injection" activities related to the Northern Endeavour Floating Production, Storage and Offtake Facility and its associated infrastructure. This exemption is in effect from the date of the notice, 28 September 2021, until 31 December 2022. "Lighthouse operations" cover essential activities such as critical inspections, monitoring, maintenance, and repairs to ensure the safety and security of personnel, the environment, and maritime operations, but exclude well production, long-term injection, or crude offtake activities. "Short-term well injection" involves the pumping of water and flushing chemicals from the facility through the flowlines into the wells to clear any remaining crude oil. The exemption exempts these activities from the application of the majority of provisions in Part 3 and Chapter 4 of the EPBC Act, with specific exceptions noted in the notice. The decision is deemed to be in the national interest, and a statement of reasons is available to the public.

Key Provisions

The main operative sections of the notice (C2021G00820) under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) are sections 158(7) and 158. Section 158(7) provides the Minister for the Environment with the authority to exempt certain actions from the provisions of Part 3 and Chapter 4 of the EPBC Act, while section 158 grants the Minister the power to make this exemption decision if it is deemed to be in the national interest. The notice exempts the Commonwealth, as represented by the Department of Industry, Science, Energy and Resources, and those acting on its behalf, from specific provisions of Part 3 and Chapter 4 of the EPBC Act in relation to "lighthouse operations" and "short-term well injection" activities associated with the Northern Endeavour Floating Production, Storage and Offtake Facility until 31 December 2022. The obligations and requirements imposed by this Act on the parties governed by it include ensuring that "lighthouse operations" and "short-term well injection" activities are carried out in a manner that manages and averts risks to personnel, the environment, and maritime safety and security. This includes conducting critical inspections, monitoring, maintenance, and repair work, as well as flushing any remaining crude oil from the flowlines through the pumping of water and flushing chemicals. However, it is important to note that this exemption does not cover well production, long-term injection or crude offtake activities. Breaches of the EPBC Act may result in both civil and criminal consequences, depending on the nature and severity of the offence. Civil penalties may include fines, compensation for loss or damage, and court orders to cease or mitigate the breach. Criminal penalties may include fines and imprisonment. The maximum penalties for breaches of the EPBC Act can vary depending on the specific offence and circumstances, but in some cases, the maximum penalty for an individual can be up to $330,000, while the maximum penalty for a body corporate can be up to $1.65 million. It is important for parties subject to the Act to ensure compliance with its provisions to avoid any potential penalties or consequences.