The Northern Territory government is seeking to downplay growing doubts about how it will ensure all greenhouse gas emissions from fracking in the Beetaloo Basin are offset, with the federal government appearing to rule out providing any dedicated support.
Comments by federal climate minister Chris Bowen on the ABC's Insiders program have added to uncertainty on the issue, and come as the territory government prepares to announce whether it will allow full-scale fracking to commence in the basin.
Before that happens, Territory Labor has repeatedly said it will fulfil a key climate promise to secure Commonwealth help to ensure there is no net increase in Australia's greenhouse emissions as a result of the basin's development.
But in an interview on Sunday Mr Bowen said the question of Beetaloo offsets and the idea of any federal subsidies for them "are matters for the Northern Territory government to consider."
"I'm not proposing any particular Commonwealth action in relation to the Beetaloo, no, not in relation to that," he said.
Mr Bowen was then asked to confirm that "there'll be nothing from the Commonwealth" to offset Beetaloo Basin emissions if fracking goes ahead."
"There have been no discussions between the Commonwealth and the Northern Territory government about that, no," Mr Bowen said.
The comments prompted NT Chief Minister Natasha Fyles to make contact with Mr Bowen's office on Sunday, according to territory minister Paul Kirby.
At a press conference on Monday, Mr Kirby said Ms Fyles had stressed that while the territory government expects gas companies to cover the cost of offsets, the territory was unable to deliver on its emissions commitment without federal support.
"We know that we're a tiny jurisdiction people-wise and business-wise," he said.
"To expect that we can offset a world class gas-field like we have in the Beetaloo — we won't have the opportunity to do that on our own."
He said the territory government had "absolutely" been working closely with the federal government on the issue.
"We've had written commitments previously about those offsets and we continue to work with the federal government to make sure that all comes to fruition," he said.
Mr Kirby denied that the comments suggested the territory government was still yet to secure the Commonwealth's support to implement its commitment as promised.
"I don't think it's a matter of changing their minds, I think it's a matter of getting the language right where there's an understanding from the federal government that we do work together on those emissions," he said.
Minister's office points to safeguard work
Mr Bowen's office continues to decline interview requests with local ABC reporters on the question of offsets for the Beetaloo Basin.
In a statement, the minister's office said the federal government was introducing reforms to Australia's safeguard mechanism.
A spokesperson also said the federal government had accepted in principle the recommendations from the recent Chubb review into offsets.
On Sunday Mr Bowen said it was the Commonwealth's position that all emissions from the Beetaloo should be offset. His office referred to that position as a territory government commitment.
Estimates vary about the amount of carbon pollution that could result from fracking the Beetaloo Basin.
A disputed CSIRO report recently found the emissions from a small-scale fracking industry could be offset if a number of challenges were overcome and subject to cost and policy considerations.
They include the proofing of carbon capture and storage technology at scale and the use of up to 10 per cent of the carbon credits currently available to all Australian emitters.
A spokesperson for Ms Fyles did not provide an answer when asked what support the territory is seeking from federal government.
In December the latest report by the territory government's fracking policy watchdog said the question of Commonwealth assistance with emissions offsets was still unresolved.
Environment groups said it was unacceptable for the "fundamental question" of how Beetaloo emissions will be offset to still be unanswered.
