Santos says offshore consultation process shouldn’t allow ‘continued veto power’ after Barossa saga

Gas giant Santos wants the consultation process for offshore gas projects to be time-limited so it can’t be used as a “continued veto power” by opponents.

Santos general counsel Michael Abbott made the suggestion to a Federal parliamentary inquiry examining legislation designed to help clarify the consultation requirements blamed for holding up its $5.8 billion Barossa project.

The legislation would hand Resources Minister Madeleine King the power to clear up the rules of engagement between gas companies and landholders – including traditional owners.

The industry has been demanding greater clarity around the process after approvals for the Barossa project and Woodside’s Scarborough venture were overturned in court due to inadequate consultation with First Nations groups.

Santos has since been given the green light to start laying pipeline in the Timor Sea, after the Federal Court in January dismissed a claim that it would destroy Aboriginal “songlines” deep in the ocean.

In a scathing ruling, Justice Natalie Charlesworth found the Environmental Defenders’ Office – which represented traditional owners in the case – had made up evidence and coached witnesses.

In response to questions at Thursday’s inquiry hearing, Mr Abbott said there needed to be changes to the consultation process to avoid a repeat.

“I think the consultation process has to give the opportunity for people to be heard if they wish to be heard,” Mr Abbott said.

“But it has to have some limits around the timeframes that are involved in it so there is some actual certainty that when people are consulted … it is taken into account – but it is not a continued veto power that keeps getting applied.”

The comments reflect the position of its peak body, Australian Energy Producers, which is pushing the Federal Government to introduce specific time periods for consultation on environmental plans for offshore gas proposals.

AEP chief executive Samantha McCulloch, also speaking at Thursday’s hearing, said the “uncertainty and ambiguity” surrounding the consultation rules was responsible for delaying projects, driving up costs and creating “consultation fatigue” among traditional owner groups.

“The current arrangements are really not working for anyone at the moment,” she said.

“It’s challenging for the industry. It’s challenging for traditional owners, and it’s also challenging for the regulator.”

Ms McCulloch said the concerns were harming Australia’s international reputation as a “reliable, stable” market for investment.

The West last month revealed Santos and its Japanese and South Korean investors in the Barossa project last year wrote to Ms King pleading for urgent changes to fix the “dire” approvals regime.