Coal Seam Gas projects: Proposed policy model for compensation and benefits sharing

Abstract

Australia had reserves of over 258,888 petajoules or 6.65 trillion cubic metres of unconventional Coal Seam Gas(CSG) at the end of 2014. The exploration for this rich source of energy requires proponentfirms to negotiateaccess and compensation with landholders under the relevant state policies and regulations. In this study, asummative payment and benefits model is proposed and built using inputs to a dual pass governmental reviewinto compensation for landholders hosting CSG energy projects in New South Wales, Australia. This theoreticalmodel exposed that landholder compensation and production payments policies and regulations are inadequateand require expedited improvements and revisions. Specifically, the potential long term impacts of CSG ex-traction; landholder injurious affections in relation to personal health, loss of amenity, and diminution of currentand future land use; and further consideration of neighbour compensation and compulsory land acquisitionoptions are policy prescriptions that require deeper governmental consideration and analysis. In addition, thereplacement of monetary compensation with long term production benefits may offer landholders increasedsources of ongoing compensatory income, and thus requires more policy and regulatory exactitude. Show more