Gorgon gas development to deliver groundbreaking environmental benefits

9/9/03
Groundbreaking environmental benefits will flow to the North-West following the signing today of the State Agreement for the $11billion Gorgon gas development.
Under the agreement, the Gorgon Joint Venture will contribute payments totalling $40million towards conservation projects to protect native plants and animals in environments similar to Barrow Island.
"This is the first time any State agreement has provided for special environmental benefits outside of the project area paid by the developers of a project," the Premier said today.
"The money will be paid to the Department of Conservation and Land Management (CALM) and allocated to major new conservation projects by the Executive Director of CALM, acting on the advice of a special advisory board.
"The money will begin to flow within a month of the Gorgon development gaining Parliamentary approval, with an initial $3million payment by the Gorgon Joint Venture to flow to major new conservation projects."
In addition to the initial $3million payment, the conservation package will include:

• $2million on Stage 1 of the development gaining approval;
• $5million on approval of Stage 2 of the project; and
• $1million per year for 30 years following the approval of Stage 1.

All payments will be indexed to protect their value against the effects of inflation.
The Premier said the $40million conservation benefits package was in addition to commitments the Government had secured for the Joint Venture to fund the monitoring of its quarantine protections on Barrow Island by officers from CALM.
Under conditions contained in the State Agreement, the Joint Venture will fund:

• seven full-time CALM officers during the construction phase to a maximum of $1million per annum; and
• five full time CALM officers during operations to a maximum of $750,000 per annum.

This would ensure that a minimum of two CALM officers would be deployed on the island at all times.
The Premier said the Government had delivered on its commitment to sustainability by securing funding by the Joint Venture for key biodiversity conservation projects and the independent monitoring of its operations on Barrow Island Nature Reserve. Monitoring would particularly focus on quarantine arrangements for the whole island to be operated by ChevronTexaco, which the Government was requiring to be above current world's best practice standards.
"The Gorgon development is a win for the environment, as well as being a win for both the State and national economies," Dr Gallop said.
State Development Minister Clive Brown said the project also had global environmental benefits.
"The global environment will benefit greatly from the Gorgon development, with LNG exports being used to produce clean energy for the world," Mr Brown said.
"In addition, the reinjection of carbon dioxide from Gorgon gas will result in the Gorgon gas development being the most greenhouse friendly LNG operation in the world."
Media contacts:
Premier's Office: 9222 9475
Minister for State Development's Office: 9222 9699