Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Resources and Energy, Senator Wong. Given the similarity in possible causes of the current disastrous oil spill in the Gulf of Mexico and the Montara oil spill in the Timor Sea, particularly the cementing process for the wells carried out by the same company, which is the second largest company carrying out this operation in Australia, and considering evidence in the US that 90 per cent of the oil spill contingency plans were the same and evidence to the Montara inquiry was that the Well Operations Management Plan was so generic as to be useless, have the government or their designated authorities completed safety checks on all the oil rigs drilling in Australian waters, and has the government completed reviews of the industry oil spill contingency plans in place to ensure their adequacy?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

I thank the senator for the question. In relation to offshore operations in Australia, I make the point that a number of the safety measures which are now being implemented in the United States have been in operation in Australia for some time. An example of that is that Australia introduced a discrete standalone safety regulator, the National Offshore Petroleum Safety Authority in 2005, a step that the United States is only now implementing following the incident in the gulf.

It is the case that the commission of inquiry has concluded its public hearings. The government is awaiting Commissioner Borthwick’s report. I am advised that the Minister for Resources and Energy is closely monitoring developments and sharing information in relation to the Montara incidents with our American counterparts. In relation to the steps the government has taken following the Montara incident, these have included, obviously, commencing the commission of inquiry to provide recommendations to government and industry in order to prevent another such incident from occurring; requesting the Northern Territory government as the delegated, designated authority to undertake a review of the status of wells suspended by PTEP at the Montara wellhead platform; moving amendments to the Offshore Petroleum and Greenhouse Gas Storage Act to enhance the safety and integrity regulation for offshore petroleum activity; commencing a review of the findings and recommendations arising from the US Department of the Interior’s report on increased safety measures for energy development on the outer continental shelf for relevance for Australian legislation regulations; and requesting all designated authorities to undertake a compliance review of existing well approvals. Senator, I think you referenced that last one in your question. (Time expired)

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I thank the minister for her answer and I ask a supplementary question. Could the minister confirm whether all the wells in Australia that have been cemented by the company that was responsible for the cementing of the well with regard to Montara and that is reported to be the same company that did the BP well in the Gulf of Mexico have been audited by the relevant authorities?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

As I was saying at the conclusion of my answer, I note that the advice provided to me is that the government has designated authorities to undertake a compliance review of existing well approvals. I do not appear to have advice about the status of that, which may be relevant to the question you have asked, so I will see whether I can obtain further information from my colleague, the minister for resources, on that issue.

I would again note that the government has taken a number of steps to improve safety in this industry. I note that the minister for resources has flagged that he will move on the Productivity Commission’s recommendations for a single national offshore petroleum regulator, and I am advised he is working with his state colleagues to get the best possible model in place. This is a model that the government will seek to ensure can provide the community as well as government industry with an assurance that exploration and development activities meet world-class safety standards— (Time expired)

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I thank the minister for her answer, and I ask a further supplementary question. The Montara commission of inquiry is reporting to the minister for resources tomorrow. When will the government be releasing the report to the public for public review?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

I believe the senator is correct that the report is due on 18 June, and the government is awaiting the provision of that report. Obviously a decision as to its release is a matter for government. I am not in a position to indicate to you at this point what the minister’s intentions are in relation to that report. I would again indicate that the minister for resources has outlined his intention to deal with a range of these issues. The government has already sought to improve the environmental and safety framework in relation to this incident. I am also advised that the Department of the Environment, Water, Heritage and the Arts has also initiated an audit of PTEP’s compliance under the EPBC Act, and Minister Ferguson has previously released an initial response to the review by the NOPSA. (Time expired)