Climate change consideration needed in gas project approval: Federal Court

The Federal Court has ruled that climate change should have been a consideration of the National Native Title Tribunal when it granted approval for the Narrabri gas project.

In 2022, the tribunal determined that the $3.6 billion development could go ahead, subject to one condition.

Santos will be required to take all necessary steps to ensure that cultural research – as part of the project’s Aboriginal Cultural Heritage Management Plan – be completed prior to start of phase two of the development.

The tribunal’s approval of the project was challenged by Gomeroi traditional owners, with the Federal Court handing down its determination last week.

Several different challenges to the project were appealed, however, the issue of environmental matters and public interest was the only one upheld by the court.

Two of three justices – Chief Justice Deborah Mortimer and Justice Michael O’Bryan – ruled in favour, green-lighting the appeal on this basis.

“The Gomeroi applicant’s question of law 3 relating to the mandatory consideration in s 39(1)(e) should be answered favourably to its contentions. The Tribunal’s decision and reasoning on public interest is affected by the errors alleged,” Chief Justice Mortimer said in her reasons of judgement.

Justice Darryl Rangiah agreed with the decisions to reject the other matters raised through the appeal, however, said he had reached a different conclusion regarding environmental matters and public interest.

Based on his statement of reasons, Justice Rangiah said the appeal should be dismissed.

In a statement published following the determination, Santos said it noted the decision by the Full Federal Court to allow the appeal against the determination by the National Native Title Tribunal that proposed future acts, being the grants of Petroleum Production Lease Application Numbers 13, 14, 15 and 16 for the Narrabri gas project, may be done.

“The court has determined the National Native Title Tribunal erred at law by declining to have regard to evidence on climate impacts that was tendered on behalf of the Gomeroi applicant,” the statement read.

“The court did not make any findings in relation to Santos’ conduct. Santos has at all times negotiated with the Gomeroi people in good faith. The court’s orders regarding next steps are yet to be made.

“Santos will continue to engage constructively with the Gomeroi people and work closely with them to ensure their heritage is protected and they benefit from the project development, including through training and employment, and involvement in all aspects of cultural heritage protection and management.

“Santos will also continue to work through land access, native title, pipeline licensing and remaining environmental approvals processes to get Narrabri and the Hunter Gas pipeline ready for a final investment decision.

“The Narrabri gas project is 100 per cent committed to the domestic market and could supply up to 50 per cent of New South Wales’ natural gas needs. Gas produced close to market will always have a cost advantage over gas imported from other states or overseas and will help to put downward pressure on domestic gas and energy prices for NSW customers.”