Compliance, Enforcement & Emerging Risks in Environmental Law the DMIRS Perspective

Transcription

1 Compliance, Enforcement & Emerging Risks in Environmental Law the DMIRS Perspective Presented by Dr Phil Gorey A/Deputy Director General Department of Mines, Industry Regulation and Safety

2 Mining and Environment related Law in WA Department of Mines, Industry Regulation and Safety Department of Biodiversity, Conservation and Attractions Department of Water and Environmental Regulation Federal Department of the Environment and Energy Mining Act 1978 (WA) Mining Rehabilitation Fund Act 2012 (WA) Environmental Protection Act 1986 (WA) Petroleum Pipelines Act 1969 (WA) Petroleum and Geothermal Energy Resources Act 1967 (WA) Petroleum (Submerged Lands) Act 1982 (WA) Environmental Protection Act 1986 (WA) Wildlife Conservation Act 1950 (WA) Conservation and Land Management Act 1984 (WA) Biodiversity Conservation Act 2016 (WA) Environmental Protection Act 1986 (WA) Contaminated Sites Act 2003 (WA) Rights in Water and Irrigation Act 1914 (WA) Country Areas Water Supply Act 1947 (WA) Environment Protection and Biodiversity Conservation Act 1999 (Cth)

3 Legislation Administered by DMIRS Safety Land Access Environment Royalties Dangerous Goods Safety Act 2004 Mines Safety and Inspection Act 1994 Mining Act 1978 Mining Rehabilitation Fund Act 2012 Petroleum (Submerged Lands) Act 1982 Petroleum and Geothermal Energy Resources Act 1967 Petroleum Pipelines Act 1969 Petroleum Titles (Browse Basin) Act 2014 Petroleum & Geothermal Energy Safety Levies Act 2011

4 Environmental Approvals Exploration Phase (Exploration Licence) Programme of Works Rehabilitation Report Mining Phase (Mining Lease) Mining Proposal Mine Closure Plan Closure Phase (Mining Lease) Implementation of Closure Plan Relinquishment process Prescribed Form Guideline for Mining Proposals Guideline for Mine Closure Plans

5 Risk-Based Regulatory Framework DMIRS employs a risk-based approach to environmental approvals and compliance As Low As Reasonably Practicable (ALARP) principle for decision making Acceptable level of risk any risks above the top line would not be approved Risks below the bottom line would not require assessment

6 Compliance Annual environmental reporting requirements & MRF reporting Compliance risk-based principles An Annual Compliance Program is established each year consisting of high risk sites, a proportion of low/medium sites and the capacity to respond to external complaints or environmental incidents. The program incorporates inspections and desktop audits of varying degrees to ensure our resources are effectively utilised across the State and the environment is not put at risk. This includes annual desktop audits of submitted MRF disturbance data (based on random and risk-based selection).

7 Compliance: Enforcement Tools The following legislative tools are available to address non-compliance: Direction to Modify (Mining Regulations 1981, Part VIA, Division 2) Stop Work Orders (Mining Regulations 1981, Part VIA, Division 3) Forfeiture (Penalty in Lieu of Forfeiture) (Mining Act 1978, Part IV, Division 6) Prosecution for offences against the Mining Act 1978 Fines under the Mining Rehabilitation Fund Act 2012 for not providing assessment information or paying the MRF levy.

8 Case Study: Mining Rehabilitation Fund Risk: In 2012, the State Government identified that the existing mining securities system was insufficient to cover the total cost of rehabilitating abandoned mines in Western Australia. This represented significant financial liability to the State if responsibility for mine rehabilitation fell to the State. The existing securities system (bonds) was held as security to encourage tenement holders to comply with the Mining Act Bonds only covered approximately 25% of total mine closure costs Moving to full cost bonds would impose a significant financial impact upon the mining industry

9 Mining Rehabilitation Fund Key Aspects Solution: Introduction of the Mining Rehabilitation Fund (MRF), a pooled fund to which Western Australian mining operators contribute annually to secure adequate funds for the State to rehabilitate abandoned mines Mining Rehabilitation Fund Act Mining Rehabilitation Fund Regulations

10 Mining Rehabilitation Fund Key Aspects The MRF operates as a pooled fund and is administered as a special purpose account under the Financial Management Act 2006, whereby funds must be spent in accordance with the purposes stated within MRF legislation Objective: to ensure that the community of Western Australia will not be forced to pay for the rehabilitation of mining operations that may be abandoned in the future

11 Mining Rehabilitation Fund Mechanics All tenement holders under the Mining Act are required to contribute disturbance data annually for the purposes of assessing their MRF levy The MRF Levy is payable for each mining tenement in force under the Mining Act, other than tenements associated with State Agreements: Approximately 19,000 tenements throughout the State MRF receives 21,000 submissions each year

12 Mining Rehabilitation Fund Mechanics There are no provisions for exemptions from (or reductions in) the requirement to pay, however no levy is payable if the estimated rehabilitation liability for a tenement is less than $50,000 In 2016, nearly 2,900 separate groups of tenements were assessed, of which only 429 were required to pay a levy. So far in 2017, more than 3,100 groups have been assessed, with 444 required to pay a levy

13 MRF Compliance and Successes Risk Mitigation: The MRF is mitigating the State of Western Australia s potential liability for rehabilitation of abandoned mine sites The MRF has been responsible for the release of $1 billion back into the economy Incentives for increased rates of progressive rehabilitation An innovative and effective legislative solution to manage non-compliance and unplanned mine closure

14 MRF Compliance and Successes Percentage of tenements compliant with reporting obligations by 30 June for each levy period Infringement notices issued for failure to provide Mining Rehabilitation Fund assessment information

15 Abandoned Mines Program The Abandoned Mines program was established following the enactment of the MRF Act Funds from the MRF will be used to rehabilitate future abandoned mine sites, when all other avenues to ensure rehabilitation have been exhausted Ellendale Black Diamond Interest generated from the MRF can be used to rehabilitate legacy abandoned mine sites across Western Australia Pro-Force

16 Projects in the Abandoned Mines Program There are currently five projects in the Abandoned Mines Program: Ellendale Diamond Mine (Shire of Derby/West Kimberley) Black Diamond Pit Lake Pilot (Shire of Collie) Pro-Force Plant Site Pilot (Shire of Coolgardie) Bulong Tailing Storage Facility-Pilot (City of Kalgoorlie - Boulder) Elverdton Tailing Storage Facility - Pilot (Shire of Ravensthorpe) Ellendale Black Diamond Pro-Force

17 Abandoned Mines Program - Ellendale The operating company, Kimberley Diamond Company (KDC), went into administration and liquidation in July 2015, with mining activities ceasing at Ellendale DMIRS has been managing the site through the Abandoned Mines Program to ensure that it remains safe, stable and non-polluting, effectively taking the site into care and maintenance, until a new tenement holder is assigned

18 Emerging Risks DMIRS has identified mine closure and relinquishment as an area that requires a structured framework, technical guidance and clear rehabilitation standards. Developing better guidance on: Completion criteria Objectives and land use expectations Outcomes for local and regional environments Legacy/ historic site expectations and standards Relinquishment process

19 Supporting a responsible resources future. Government of Western Australia Department of Mines and Petroleum