Australia’s largest energy company has surrendered 10 controversial gas tenements in Queensland’s channel country, as the state government embarks on long-delayed consultation over environmental protections for the sensitive Lake Eyre-Kati Thanda basin.
Origin Energy and the Queensland resources department confirmed the “total surrender” of 10 of the 11 production leases held by the company in the area, amid concerns about the impact of potential fracking plans on its unique waterways and floodplains.
The company says one permit area it is “seeking to surrender” is subject to “a process that gives interest holders an option at acquire”.
The Queensland government announced this month it would conduct a regulatory impact statement for the channel country – the long-delayed fulfilment of repeated promises made by Labor dating back to the 2015 election.
The potential for fracking to occur near area’s wild rivers, which snake towards Lake Eyre-Kati Thanda after periods of inland rainfall, has been the subject of longstanding tension between Queensland’s environmental and resources authorities.
In 2020, Guardian Australia revealed that an independent scientific panel had recommended a ban on fracking in the area but the report had been made secret and ultimately ignored.
The following year, environmental groups revealed the Queensland government had quietly approved applications from Origin that could lead to the extraction of fossil fuels across 225,000 hectares of the channel country.
The long-stalled push for environmental safeguards has frustrated many locals, including agricultural groups. Earlier this month, the government announced it would release draft protection options for consultation.
The announcement came less than a week after Origin finalised the handback of its leases on 26 May. The company had said last year it was reviewing its position in the area, but it was speculated at the time that it might look to sell the leases.
The state government said it would not release the areas again “during the 12-week consultation period”.
“The department will continue to work with Origin Energy on the last remaining lease,” a spokesperson said.
“As no on-ground works had been undertaken by Origin Energy in those areas, no remediation works were required.
“The Queensland government is committed to ensuring the protection of the Lake Eyre Basin’s streams and watercourses is balanced with economic development of the region.”
Nick Holliday, a grazier and spokesperson for the Lock the Gate Alliance, said the group hoped the “victory is permanent” and that the state declared a total ban on oil and gas development on the floodplains.
“More than half a million hectares of channel country flood plains remain under petroleum tenements, owned by companies like Santos,” Holliday said.
“Origin didn’t give up on these tenements out of charity – it did so because in a decarbonising world, fracking for fossil gas in a place as remote as far western Queensland makes less and less commercial sense.”
“Queensland’s unique desert river systems remain under threat until the Palaszczuk government formally bans oil and gas development on the floodplains.”
