Deputy prime minister wants bans lifted on exploration and development, and royalties paid to landholders

This article is more than 3 years old

This article is more than 3 years old

The Nationals leader, Barnaby Joyce, has called for states to lift the bans on coal seam gas and has urged them to follow South Australia’s plan to pay royalties as compensation to landholders.

The deputy prime minister, who is also the minister for agriculture, said lifting the gas bans should not occur on a carte blanche basis because of the need to protect prime agricultural land and productive aquifers. However, he did not say how prime agricultural land should be defined.

“Landholders have a right to a greater annuity from their land. By paying a royalty it means the value of a farmer’s land increases as a result of gas extraction, rather than decreasing,” Joyce said.

He said landholders with gas reserves should be viewed by the industry as potential business partners and not as obstacles who could be ridden over “roughshod”.

“We need to have a national discussion on how to give landholders a greater say and greater share in the hydrocarbon resources on their land,” Joyce said.

The comments will be explosive in some parts of his constituency, particularly around the Santos gas project in the Pilliga where some landholders have been fighting plans for an 850-well coal seam gas project.

National Farmers' Federation welcomes South Australian gas royalty plan but urges safeguards Read more

On Wednesday the chief executive of the National Farmers Federation, Tony Mahar, said the royalties would be a welcome addition but conflict over mines was not all about money.

NFF president Fiona Simson said until farmers had absolute confidence that governments could provide secure access to land and water, she supported the moratoriums remaining in place

“It’s up to the industry and government to make sure that the concerns of the community are addressed with science and evidence that clearly and categorically proves there is not going to be a negative impact on the huge growth opportunities for the farm sector,” Simson said.

“Our view is that given the states have regulatory control over this issue, the role for the commonwealth is to focus its investments on providing the quality science that’s needed to underpin a robust state-based regulatory approach.”

The South Australian government’s energy plan committed to pay farmers a 10% royalty stream to grant mining companies access for exploration and development of gas reserves. Joyce has talked about paying royalties to farmers – last month he said “talk to them where they listen most and that’s through their wallet”.

But his intervention comes after the federal government has repeatedly criticised the South Australian government for its 50% renewable target and the Victorian Labor government for a gas moratorium until 2020, which has the support of the Victorian Farmers Federation.



It also follows a heated argument between the Coalition’s energy minister, Josh Frydenberg, and the South Australian premier, Jay Weatherill, over the repeated criticism from the federal government of the state’s energy policy.

Joyce was one of the leading critics of South Australia’s renewables policy and has blamed the September blackout on the reliance on wind energy.



Farmers fear SA blackouts being used to push through 850-well coal seam gas project Read more

“I listened to premier Weatherill’s announcement and there is one issue I strongly agree with: a fair return has to go back to the farmer,” Joyce said in a statement on Friday.

“I commend his recognition of this in the discussion of a royalty return back to farmers of coal seam gas extraction.”



Joyce said prime agricultural land and productive aquifers should be protected in any resumption of coal seam gas development.

“Where these caveats are abided by in relation to gas extraction, then a strong return back to the landholder means a strong return to the town and the whole local economy; and it means a vastly better chance of a cooperative environment with landholders” he said.