PEP11 shareholder Asset Energy Pty Ltd has lodged a case in the Federal Court alleging former prime minister Scott Morrison was "biased" in his decision not to renew the exploration permit for the seabed area off the coast of Newcastle.
Mr Morrison held a media conference at Terrigal on December 16 last year in which he said the government - "through my own decision" - was formally rejecting the PEP-11 application having "given consideration . . . to the high levels of community opposition".
A transcript of Mr Morrison's comments along with various other documents is included in an affidavit of material lodged with the Federal Court in a case filed on June 1, and due for mention again on July 20.
The case is against Mr Morrison as the "responsible Commonwealth minister for the Commonwealth-NSW Joint Petroleum Authority".
Asset Energy's executive director, David Breeze, said yesterday that Mr Morrison "acted with bias and a lack of procedural fairness when he made the decision not to renew PEP-11 in a highly politicised process".
"The state of NSW is clearly in desperate need of more gas and we believe we have at least 20 years worth sitting out there," Mr Breeze said.
"We got caught in the middle of all of the politics when Mr Morrison took it upon himself to make this decision instead of the relevant minister at the time, Keith Pitt, who had long expressed support for our right to drill an exploration well."
With a national debate under way about a lack of domestic gas reserves while big players export record amounts of gas overseas, Mr Breeze said Asset had "committed to sell any produced gas only in the local domestic market, at prices much lower than current record prices".
Mr Breeze said that despite the claims of critics of PEP-11, Asset Energy had always followed correct procedures in seeking to retain the rights to explore for gas off the NSW coast.
He described the exploration process as "limited, safe and sustainable'.
Mr Morrison made his announcement after the WA- based joint authority also found against the renewal, for reasons that included "uncertainty as to whether the applicant has . . . adequate financial resources . . . to fulfil its obligations".
Despite this, Mr Breeze said "Asset has the technical expertise and has demonstrated the financial capacity to complete the proposed exploration program in a timely and safe manner".
He said Asset was ready to lodge an environment plan for its proposed drilling activity if the permit was extended. If exploration proved the resource, "accelerated development" could see gas delivered to the market within two years of finishing the well.
PEP-11 has been almost universally condemned but Mr Breeze said there would be no offshore activity within 15 kilometres of the coast.
