New competitive cash bidding process for exploration rights

A new competitive cash bidding process will apply to companies seeking the right to explore on highly prospective coal, petroleum and gas resources tenements in Queensland.

Minister for Natural Resources and Mines Andrew Cripps outlined the new exploration tender process in his keynote address to the 2012 Australian Petroleum Production and Exploration Association (APPEA) Coal Seam Gas Conference in Brisbane today.

“This new strategic approach will result in better stewardship of our resources, more certainty for industry and the community, and better economic returns for all Queenslanders,” Mr Cripps said.

“The new framework will involve both the controlled and competitive release of land for coal, petroleum and gas exploration and may include a cash bidding process that reflects the potential in-ground value of the resource for certain areas that are released.

“Through competitive cash bidding, companies will bid for the right to explore highly prospective land made available through tender and a ‘preferred tenderer’ will be identified through a rigorous assessment process.

“Preferred tenderers will still have to meet the same stringent environmental and tenure approval requirements before exploration tenure is granted.

“Importantly, landholder rights will not be impinged on by the new cash bidding framework. All current requirements associated with land access, conduct and compensation still apply.”

Mr Cripps said he anticipated the first round of petroleum and gas areas available under the new competitive cash bidding process would be released for tender in the near future.

“The move to a competitive process will maximise the benefits associated with these resources to all Queenslanders,” he said.

“It ensures the most appropriate explorer with a commitment to resource development secures available land for exploration.

“It will discourage exploration permits being acquired and warehoused simply so they can be marketed and on-sold to international buyers with little or no geological data to support the asking price.

“It also ensures all Queenslanders benefit appropriately from the rich resource wealth of the State.”

Mr Cripps said non-cash land releases in ‘greenfield’ and under-explored areas that promote Queensland’s attractiveness for junior explorers would continue.

“The Newman Government recognises the importance of all players in the industry and a range of cash bidding and non-cash land releases will continue to foster exploration activity in Queensland.

[ENDS] 9 October 2012

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