GAS AND OIL PIPELINES IN AUSTRALIA; LEGISLATIVE PROBLEMS AND SOCIAL ISSUES

Abstract

The discovery of natural gas in Australia during the 1960s and its subsequent development in several States as a highly important form of energy led to many changes in sources of supply and methods of distribution and of legislation needed to regulate these aspects.

Among the most important of these changes was the closing down of gas-making plants traditionally located close to points of consumption and their replacement for the first time in Australia by long distance, high pressure natural gas trunklines and networks of new, high pressure distribution pipelines and supply mains. As long distance pipelines in particular posed many problems and introduced new factors outside of the traditional role of gas utilities, all States in Australia except Tasmania, found it necessary to introduce special legislation to govern the laying and operation of these pipelines.

Three States-Victoria, New South Wales and Western Australia, introduced Pipelines Acts based largely on those in Canada and the United States; two States-Queensland and South Australia, amended existing petroleum enactments and in two States-Victoria and South Australia, statutory pipeline authorities were established. In one of these - Victoria, the pipeline authority has since been absorbed into a semi-government instrumentality which now controls the whole distribution of gas in the State.

The new or amending pipelines legislation varied considerably from State to State but basically all were designed to achieve the same objective -to regulate the conveyance of petroleum, particularly natural gas, from the point of discovery to the main area of consumption which varies widely in each State, e.g. from about 150 miles for Melbourne in Victoria to about 800 miles for Sydney in New South Wales.

The widely spaced location of Australia's principal gas fields and their distance from the major points of consumption also led to the Commonwealth Government in 1973 establishing a Pipeline Authority for the purpose of ultimately linking these fields together to ensure continuous, adequate and balanced long term supply to the main residential and industrial areas of the country.

Inevitably social issues which had been gaining ground overseas, particularly in the United States of America, began appearing on the Australian scene. These involved consideration for the environment in which the community lives and the preservation of the ecology, both broadly termed conservation. New legislative measures dealing with the environment and protection of public land were passed. These affected many pipeline projects. Additionally, in most States a social issue of longer standing also became a factor in the selection of routes of pipelines. This was town planning.

Thus to the original issues of protection of rights of property owners and the operators of the pipelines and of establishing standards of construction, have now been added those relating to the environment and ecology, the use of public land and of town planning. The selection of routes of hydrocarbon pipelines is now a matter of wide public concern and social issues will increasingly influence their location and operation.