The changing landscape of financial assurance
Recently, the Queensland Government re-introduced the Mineral and Energy Resources (Financial Provisioning) Bill to the Queensland Parliament.
The Bill addresses the regulation of financial assurance and rehabilitation in the resources sector and is similar to legislation introduced in 2017 but which lapsed due to the 2017 State election.
There is no doubt that the current Government is keen to ensure that legislation of this type is enacted.
The Mineral and Energy Resources (Financial Provisioning) Bill has been referred to the Economics and Governance Committee where there will be an opportunity for public submissions to be made about its provisions.
The Committee will report back to Parliament by 20 April and the Bill will then be debated in May sittings, with its expected enactment in time for a 1 July 2018 commencement date.
The provisions of the new legislation will apply to Environmental Authorities for resource activities authorised under the following legislation:
• Mineral Resources Act 1989
• Petroleum and Gas (Production and Safety) Act 2004
• Petroleum Act 1923
• Geothermal Act 2010
• Greenhouse Gas Storage Act 2009.
Whilst there could be some initial financial and administrative cost in implementing the new arrangements, we see the proposed changes as potentially beneficial overall and providing a real opportunity for operators to innovate and
re-strategise their rehabilitation programs and outcomes.
We would be pleased to provide technical advice and support for the management of your engagement with the Scheme Manager and the administering authority around these processes.