I rise this evening to support the Geothermal Energy Bill 2010. This bill amends a number of existing acts such as the Petroleum and Gas (Production and Safety) Act 2004, the Electricity Act 1994, the Mineral Resources Act 1989 and the Timber Utilisation and Marketing Act 1987. I will confine my remarks to the geothermal energy aspect of this bill.

This bill has been designed to establish a framework to encourage and facilitate the safe production of geothermal energy to accelerate the expansion of the renewable energy sector in Queensland. Geothermal energy or ‘hot rocks’ energy is a virtually CO2 emission-free energy source that has the potential to produce more baseload energy than any other single source of renewable energy. It is for this reason that we need to get the balance right. I will speak tonight about the land access provisions, as this is usually one of the most contentious parts of energy exploration and provision.

The bill contains landmark amendments to the way resource tenure and authority holders access private land and how compensation arrangements are arrived at. These amendments are essential due to the increase in interaction and conflict between rural landholders and tenure or authority holders for land use, particularly in the light of the continued strong growth in coal seam gas and coal exploration and development across the state. The new land access provisions will make it easier for private landholders and mining and petroleum companies to deal with the complexities and challenges caused by overlapping activities by providing a uniform framework for land access and compensation across all resources legislation.

The key elements of the Land Access Policy Framework reflected in the bill include: a single Land Access Code of Conduct, with all tenure and authority holders required to comply with the code; a notice of entry process for designated ‘preliminary activities’ that will have little or no impact on landholders; a requirement to make a conduct and compensation agreement prior to entry of land for advanced activities that are likely to significantly impact the landholder; graduated negotiation and dispute resolution processes to remedy disputes; and improved compliance and enforcement processes for administering the code of conduct.

The bill introduces activity thresholds that increase the level of regulation as the intensity or impact of the proposed activity increases. This is a sensible measure that balances the level of regulation with the level of impact. Early exploration activities can have nil or negligible impact on private landholders. The bill defines these as ‘preliminary activities’ which might include taking rock, water or soil samples and walking the land. For preliminary activities, resource authority or tenure holders must give each owner and occupier of land within the tenure or authority area an entry notice and a copy of the land access code at least 10 days prior to entry. Access for these activities does not require a conduct and compensation agreement.

Correspondingly, when the impacts are more significant on the private landholder or occupier, a higher level of accord is required. These activities are referred to as ‘advanced activities’. For advanced activities, tenure holders must be party to a conduct and compensation agreement with each eligible claimant for the land. Where agreement is not reached, the framework provides mediation mechanisms. To assist in the negotiation process, a standard conduct and compensation agreement template has been developed in consultation with resource and agriculture industry peak bodies, along with a negotiation tip sheet for landholders.

The land access amendments introduce an innovative new requirement for mediation to occur between parties if agreement negotiations break down. This has been included on the basis that all stakeholders have expressed a desire to keep these matters out of the Land Court and to use all means to negotiate a mutually acceptable outcome for both parties. Matters cannot be referred to the Land Court for determination until mediation has occurred. A detailed compliance and enforcement strategy will be developed to ensure that these new measures achieve their full effect on the ground, particularly with respect to the land access code. This bill is an important step in the ongoing viability of the renewable energy sector, and I therefore commend the bill to the House.