Environment minister orders an urgent investigation into whether a $130m port for the oil and gas industry had appropriate assessments or approval

This article is more than 5 years old

This article is more than 5 years old

The environment minister has ordered an urgent investigation into the construction of a $130m deep sea port for the oil and gas industry off the coast of Darwin, apparently without the appropriate environmental assessment or approval from any level of government.

Greg Hunt said on Tuesday afternoon the matter would be investigated “as a matter of priority”.

The facility at Port Melville on the Tiwi Islands is in an area of “international significance” but no referral or assessment of its impact has been provided to the Northern Territory Environment Protection Authority (EPA), the NT government or the commonwealth government, the ABC revealed on Tuesday.

The islands’ unique geography and environment support “many species not recorded anywhere else in the Northern Territory (or in the world), as well as a number of range restricted species”, the NT government says.

The ABC reported the federal Department of the Environment received no referral on the project, as is required under commonwealth law for all projects likely to significantly affect areas of national environmental significance.

The EPA confirmed to the ABC that a 12-step process which must be completed before a project can proceed was at only its second stage. A spokeswoman said the EPA had sought further information from the Singaporean company behind the project, Ausgroup.

Bill Freeland, chairman of the EPA, told ABC local radio the company had not abided by legislation and the EPA was “unimpressed”.

He said no environmental approval for the project could have been given because assessments had not been completed.

The independent body could only wait for the company to return requested information after it supplied a “deficient” notice of assessment, he said, but a company could ignore the request.

He conceded even if it came through it would be difficult to conduct a proper assessment given development had started.

He said his organisation was “hamstrung” by legislation – which is under review – which did not provide proper protections. Freeland said he “honestly [didn’t] know” if the port was operational.

David Morris, executive officer and principal lawyer of the Northern Territory environmental defenders office, told Guardian Australia it was hard to believe development could have occurred without an impact assessment.

He said the company had a legal obligation to notify the federal department. The NT process did not appear to have been followed correctly either, as the approving minister is meant to notify the EPA. It is not clear if that occurred.

“The NT EPA have a power to call in developments once they become aware of them and say a notice of intention needs to be put in place,” Morris said.

The notice of intention is supposed to outline to the EPA what the project is and what its potential environmental impact may be.

The Port Melville facility, touted as an oil and gas industry support base for refuelling and maintenance, was supported by the Tiwi Islands land council, which planned to use it to export wood chips.

Port Melville is operated by an AusGroup subsidiary, Teras Australia, which has been asked for comment.

However, Ausgroup told the ABC it had “been working collaboratively with the Northern Territory government and with the Tiwi land council, addressing any environmental concerns associated with the construction or operation of Port Melville”.

The statement from Hunt’s spokesman said: “The department is currently examining a range of information acquired in relation to the proposal to determine if a contravention of the EPBC Act has, or is likely to result from the construction works to date.”

Failure to comply with the EPBC Act can result in civil penalties of up to $8.5m and criminal penalties of up to seven years’ imprisonment.

The 36-hectare-plus port, which was officially recognised as a security-regulated port by the Australian government last year, includes a wharf in waters 12 metres deep, and a 30m-litre tank farm for fuel storage and distribution.

A Tiwi land council newsletter from February 2014 reports marine works were completed in the previous October and companies were bidding to build a 120-person accommodation village.

“Bids have been received for the site grading, excavation and drainage already,” it reads. “The plan is to commence construction as the wet season draws to an end.”

Another notice thanked the chief minister, Adam Giles, and his staff “for their help as we work our way through the regulatory processes”.

Giles and local media toured Port Melville in March, where he praised the company for its partnership with the Tiwi land council.

The Northern Territory minister for environment, Gary Higgins, was unavailable for interview but said in a statement the port at Melville was “a private project being constructed with the strong backing of the Tiwi land council and Tiwi people”.

“It is an important economic development project bringing jobs and industry to the area,” he said.

Higgins confirmed the NT EPA was seeking further information from the company and was working with it to assess environmental risks.