Appendix D. Audit Act 1994 section 16—submissions and comments

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Introduction

In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or part of this report, was provided to the Department of Economic Development, Jobs, Transport & Resources and the Department of Environment, Land, Water and Planning.

The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

Appendix C. Gaps in Victoria's regulatory system

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Figure C1

Detailed assessment of Victoria's regulatory system against better practice principles and approaches for regulating unconventional gas activities

Best practice principles and practices	Coal seam gas regulatory system	Tight and shale gas regulatory system

Appendix B. Glossary

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Terms used in this report

Aftercare—managing the environmental risks that can continue to be present at unconventional gas sites for a significant period of time after activities have ceased, through works, maintenance, monitoring and reporting.

Aquifer—a naturally occurring underground source of water that is held in porous rock structures, making it easy to extract.

Appendix A. Time line of unconventional gas events

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Figure A1

Unconventional gas events in Victoria and across Australia

Figure A1 displays the unconventional gas events in Victoria and across Australia

4 The way forward

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At a glance

Background

Improved strategic and transparent risk-based decision-making around the planning, management and regulation of earth resources, including unconventional gas, can benefit all stakeholders. It can provide greater confidence and security for industry and the community and improve trust and confidence in the regulator.

3 Regulating unconventional gas activities

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At a glance

Background

An extensive body of literature has identified key leading practices and core elements that must be part of any regulatory system to ensure the effective and sustainable development and management of an unconventional gas industry. The Department of Economic Development, Jobs, Transport & Resources (DEDJTR) has the primary responsibility for this in Victoria.

2 What are the risks?

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At a glance

Background

A comprehensive body of literature and interstate and overseas experience has illustrated the potentially significant risks and impacts of unconventional gas resource development. A risk management approach is required to assess their relevance to Victoria.

1 Background

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1.1 What is unconventional gas?

Unconventional gas refers to an underground source of natural gas found in certain rock layers. Natural gas is primarily composed of methane and is used as an energy source. There are four types of rock structures that can be sources of natural gas; 'conventional' rock sources and three 'unconventional' sources—coal seams, tight rocks and shale rocks. The different sources of gas and their relative depths are shown in Figure 1A. Conventional and unconventional sources can be co-located within rock structures.