SPE 86618
Stakeholder Consultation and Environmental Implications for the Offshore Petroleum
Industry: An Australian Perspective
Steve Tantala Australian Government, Department of Industry, Tourism & Resources
Copyright 2004, Society of Petroleum Engineers Inc.
This paper was prepared for presentation at The Seventh SPE International Conference on
Health, Safety, and Environment in Oil and Gas Exploration and Production held in Calgary,
Alberta, Canada, 2931 March 2004.
This paper was selected for presentation by an SPE Program Committee following review of
information contained in a proposal submitted by the author(s). Contents of the paper, as
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to
correction by the author(s). The material, as presented, does not necessarily reflect any
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Introduction
The paper broadly outlines the importance of consultation as a
vehicle to assist both industry and regulators. It then examines
some practical applications of the consultation process. The
paper commences with a brief overview of the petroleum
industry in Australia.
Background
Under the United Nations Convention on the Law of the Sea,
Australia has rights and responsibilities over some 16 million
square kilometers of oceans more than twice the area of the
Australian continent. Around continential Australia, sole
Australian Government jurisdiction stretches from the external
boundaries of the Exclusive Economic Zone (EEZ) and the
continental shelf to three nautical miles from the coastal
baseline. The inshore area, that is, within the three nautical
mile zone, falls within the primary jurisdiction of State and
Territory Governments. Local Governments also play a
significant role in the planning and management of the coasts
and coastal waters.
Australias marine industries which include: fisheries;
shipping; mineral and petroleum activities; aquaculture;
tourism; and recreation, have been growing strongly over
recent years. They are major providers of jobs and are
important to the economy, contributing around $30 billion a
year or eight percent of gross domestic product. At the last
major review it was estimated that our marine industries are
valued annually at around $50 billion and are projected to be
valued at around $85 billion by the year 2020. 1
1
Commonwealth of Australia, Australias Oceans Policy, p8, May
1998
The increasing pressure from these competing uses can give
rise to potential conflicts. In addition, the interest of
communities in marine activities and their potential social,
environmental and economic impacts has grown steadily in
recent years. These two factors have resulted in public
pressure on marine industries to become more accountable.
Stakeholder consultation can play a key role in addressing
community concerns by improving collaboration between
industry, government and the community.
Australias Oceans Policy
Activities in Australias oceans and the adjacent foreshores
vary enormously. Until recently, management and decision-
making have not been integrated across the various sectoral
interests. In developing Australias Oceans Policy from 1998,
the Australian Government recognised the importance of
integrating planning and management for multiple-use of the
oceans. This includes pursuing improved co-ordination
between the States and the Australian Government to ensure
jurisdictional boundaries do not hinder effective planning and
management.2
Our Jurisdictional Boundaries
Australias oceans are divided into Commmonwealth and
State/Territory jurisdicitions. The history stems back to the
1970s, when the Australian Government enacted the Seas and
Submerged Lands Act 1973 which purported to vest all of the
territorial sea in the Commonwealth. The States disputed the
legality of the legislation. The High Court decision in New
South Wales v the Commonwealth3 however, confirmed its
validity. However, to give the states a greater role in offshore
areas, particularly in matters which history and practicalities
mark out for state jurisdiction eg port facilities, in the late
1970s, the Commonwealth Government entered into
negotiations with the States and Territories on the
administration of offshore areas. These negotiations resulted
in the Offshore Constitutional Settlement. The Settlement
confirmed that sovereignty in offshore areas is vested in the
Commonwealth, but provides jurisdiction to the States over
the sea and seabed out to three nautical miles.
Since the Offshore Constitutional Settlement came into
operation, the Commonwealth and States/Territories have
entered into arrangements to better administer all Australian
2
Commonwealth of Australia, Australias Oceans Policy, p8, May
1998
3
(1975) 135 CLR 337
2 SPE 86618
waters.4 In particular petroleum exploration activity in
Commonwealth waters is governed by Petroleum (Submerged
Lands) Act 1967. This legislation provides for the orderly
exploration and development of petroleum resources, and sets
out the rights, entitlements and responsibilities of governments
and industry. The States and Northern Territory have mirror
legislation in place governing exploration and development in
the waters out to three nautical miles. Under this legislation, a
series of regulations govern aspects of offshore petroleum
activities. These regulations cover all aspects of petroleum
operations including environment, pipelines, fee structure etc.
Offshore Legislation and Policies
There are two major pieces of legislation that govern
petroleum exploration activity in Commonwealth waters: the
Petroleum (Submerged Lands) Act 1967 (P(SL)A; and the
Environment Protection and Biodiversity Conservation Act
1999 (EPBC Act).
Environment Protection and Biodiversity Conservation Act
1999
The EPBC Act was enacted on 16 July 2000 and states that a
proponent must not undertake an activity that is likely to have
a significant impact on a matter of National Environmental
Significance (NES) without the approval of the
Commonwealth Environment Minister. The matters of NES
most relevant to the offshore petroleum industry are: listed
threatened species; listed migratory species; and the
Commonwealth marine environment.
If the proponent believes, that significant impacts on a matter
of NES are likely, the proponent is required to refer the
activity to the Environment Minister. The referral is placed on
the Department of the Enviornment and Heritage website for a
period of ten days to allow for public comment. The
Environment Minister will then consider comments and make
a decision on whether the activity is to be a controlled or non-
controlled action. Should the activity be controlled the
proponent is then required to submit preliminary information
on the activity which may be more detailed than the referral
form. The Minister then decides the most appropriate method
of assessing the potential impacts on the environment. The
possible alternatives include: accredited assessment on a case-
by case basis; preliminary documentation; public environment
report; environmental impact statement; or public inquiry. All
these assessment alternatives require a period of further public
consultation before a decision on whether to approve the
action is made by the Environment Minister.
A key element of the EPBC Act is the public consultation
process. This consulation and regulation in relation to
petroleum activity however, is limited to matters of NES. The
P(SL)A however, covers all petroleum activities. More
information is available on the Department of the
Environment and Hertiage website: http://www.deh.gov.au.
4
URS Report, Review of Environmental Impacts of Petroleum
Exploration and Appraisal Activities in Commonwealth Waters,
p21, February 2001
Petroleum (Submerged Lands) Act 1967
The P(SL)A provides a regulatory framework for the day to
day operation of all offshore petroleum exploration and
development in Commonwealth waters. Section 124 of the
Petroleum (Submerged Lands) Act 1967 requires that offshore
petroleum operations are carried out in a manner that does not
unduly interfere with other rights and interests and in
accordance with good oil field practice by all titleholders,
having due regard for matters such as:
environment protection;
navigation and maritime safety;
fishing activities;
defence activities;
submarine cables and pipelines;
insurance; and
Native Title rights and interests.
Under this legislation, a series of regulations govern aspects of
offshore petroleum activities. This includes the Petroleum
(Submerged Lands)(Management of Environment)
Regulations 1999, which require the submission of an
Environment Plan prior to any petroleum activity being
undertaken. The object of the regulations is to ensure that any
petroleum activity is carried out in away that is consistent with
the principles of ecological sustainable development. More
information is available on the Department of Industry,
Tourism and Resources website: http://www.industry.gov.au.
The Envionment Plan
The Environment Plan sets out: a description of the activity; a
description of the environment; an assessment of
environmental risks and effects; performance objectives;
standards and criteria; an Implementation Strategy; and the
focus of this paper, a consultation report.
The Guidelines for the Preparation and Submission of an
Environment Plan (the Guidelines) expand on the consultation
requirement and outline that the Environment Plan should
include a report on the consultation undertaken in the course
of developing the Environment Plan between the operator and
the relevant authority, and other interested persons and
organisations (eg, fishing cooperatives, tourism operators,
local community and environmental and other non-
government organisations). It should also include details of
the ongoing consultation arrangements to be adopted during
the operational phase with other marine users and interest
groups.
The Guidelines state that consultation arrangements should:
provide factual information about the project and its likely
environmental risks and effects where there is a genuine
requirement or request for such information, including from
the public; allow for the identification and understanding of
values, sensitivities, concerns and interests; and instil within
the community a level of confidence that the project will be
environmentally responsible.
SPE 86618
Public Participation in Managing Marine Activities
Environment can be taken to mean the physical environment
such as air, water and ecosystems; as well as people and their
community infrastructure. Communities can contribute to
environmental outcomes and the process of decision-making.
Such participation, if properly undertaken, can foster
confidence in the environmental credentials of the petroleum
industry.
Public participation in marine activities should include two-
way communication. It should be a process where
communities are given the opportunity to provide comment
and input on proposed activities and potential impacts,
consequently allowing the regulators and the proponent to
utilise that information in their decision-making processes.
For example, specific cetacean risk management concerns can
be identified and addressed through strategies that include
consultation with scientists, academics and non-government
organisations. This will enable a body of information to be
built up that may cover all aspects of petroleum activity from
preliminary exploration to decommissioning. Public
consultation also enables industry to share knowledge and
information about the activity they wish to undertake, thereby,
assisting in alleviating community concerns.
Communication can be on many levels. For example,
localised issues may be resolved by facilitating a bilateral
agreement between relevant sectors or individual groups
whilst, larger scale issues which include a broader cross
section of stakeholders may require more complex agreements
and responses.
Public participation can range from the provision of
information, to involvement in consultation, collaboration,
decision-making, implementation and monitoring.
Why the Petroleum Industry should Consult?
While activities are already subject to strict regulation
protecting communitys interests petroleum companies need to
inform the broader community as they are exploiting a
community owned resource. The community has a long term
interest in the health of the environment and people want to
know that the activity is not going to cause significant damage
to the environment around them or to the wider environment.
In Australia, fears and concerns have been expressed by a
range of stakeholders that the undertaking of a petroleum
activity could result in: a loss of biodiversity; pollution of air
and/or water; an interruption to recreational activities; the loss
of aesthetics, a decrease in enjoyment of iconic areas; a
disruption to livelihood; damage to the quality of fish and
other marine products; and conflict between people with
alternative or opposing values.
While government can provide the basis for regulating
activities, the operating framework and general mitigation
measures, industry has a key role in dealing directly with
community stakeholders.
In order to obtain a community licence to operate, the operator
must acknowledge the interests of the broader community,
3
their potential fears and possible misconceptions and deal with
them in an open and transparent manner.
To achieve the best possible environmental management
system, the petroleum industry must include consultation with
the community by talking to people about all aspects of the
proposed activities, and by listening and responding
appropriately.
The Benefits of Consultation
Ecologically sustainable development includes environmental,
social and economic considerations. The most progressive
petroleum companies want to reflect the values, expectations
and needs of the community as part of their company culture.
Good public communication which develops a track record for
companies, against which future activities can be judged, can
provide companies with the credentials to operate and is an
investment in the companys future.
The benefits that can be derived from early consultation
include:
the flow of information can be improved ensuring
that any fears and misconceptions are allayed;
it can build trust and enhance the company reputation
in the community by demonstrating to the relevant
parties its competence in achieving environmental
objectives;
it can reduce costs by minimising delays caused by
objections to projects thereby, providing economic
benefits;
it allows the company to demonstrate to the
community that it has effective internal and external
management systems and processes in place;
environmental outcomes can be improved; and
improved access to finance/insurance for future and
current activities because of a good track record in
the community.
Who to Consult?
As discussed, communities can exercise considerable
influence over decision-making authorities. The key to
effective consultation is to keep all stakeholders informed at
an early stage about proposed activities and to plan activities
based on minimising impacts on other users.
This is not consultation for consultations sake. Each proposed
activity, its location and other surrounding circumstances will
determine the appropriate level of consultation and with which
key stakeholders. For example, commercial fishing and
supporting activities may comprise a significant source of
employment and income for a community in a particular area.
In such a case just consulting with the local fishing industry is
not sufficient. Further considerations should be given to
establish broader community consultation to understand and
effectively address the potential impacts of an activity as they
relate to commercial fisheries, the community that depends on
the fishery, recreational boating and angling groups that may
utilise the area.
4 SPE 86618

Consultation should be undertaken with all stakeholders that the environmental, economic and social needs of the
may be affected by the proposed activity. These could community and the industry are met.
initially include but should not be limited to:
State and Commonwealth Fisheries Departments; Consultation Problems
State and national fishing industry councils; From time to time there is the potential for things to go wrong
National and local environmental NGOs; either before the commencement of an activity or during an
Maritime Safety Authority; activity. Sometimes consultation could stall due to parties
Shipping associations; having differing opinions and/or objectives. There are times
Local councils to identify industries and recreational however, when some aspects of an activity cannot be dealt
activities in the proposed area of a survey or with by consultation and not all of the communitys concerns
exploration and development; will be addressed. For example, whilst there is some scope for
a change in timing of a seismic activity the location of that
Local indigenous communities;
seismic activity will always be fixed. If during consultation,
Other petroleum companies operating in the region;
agreement about how to undertake the activity cannot be
and
obtained between the parties there may be the need to employ
any other Commonwealth or State agency which may
other mechanisms.
have activities in the area, such as the Department of
Defence.
Consultation Techniques
Effective community consultation is a two-way interaction
When to Consult? between the operator and the stakeholders with the operator
There is a growing expectation that petroleum operators
listening to and taking into account the interests and concerns
commence community consultation prior to planning an
of others. There are a variety of methods used frequently in
activity and continue to consult throughout the life of the
community consultation. Some of these include: arranging
project. Therefore, consultation should be encouraged at an
site visits; attitudinal surveys; use of contact points; hotlines;
early stage in the activity, preferably once the petroleum
direct mailing; displays; invited comments; liaison groups;
permit has been awarded, particularly in areas of high
media briefings; public meetings; public notices;
sensitivity or multiple-use. Consultation should continue
advertisements; and discussions with representative
throughout all phases of the activity: seismic, exploration
stakeholder groups.
drilling, and development ensuring that community concerns
are addressed prior to commitment to any activity.
Three different consultation techniques are outlined in the
following case studies.
While consultation should be required for all activities, the
level and nature of that consultation should be appropriate to
Case Study 1
the level and nature of the proposed activity. That is, the
Essos communication strategy with: the Lakes Entrance
actual or potential impacts associated with the activity that
Fishing Co-operative Limited; the Port Albert Fisheries
could pose a threat to the environment; the potential
Cooperative; and the Eden fishing industry.
consequences of those threats; the actions or measures
proposed to mitigate the consequences; the degree of
Commercial fishing and supporting activities centred in the
confidence in the accuracy of the assessment of the activity;
eastern Bass Strait comprise a significant source of
the degree of community interest; and the competing uses in
employment and income to communities in the Gippsland
the region of the activity should all be assessed and the level
region of eastern Victoria. The Bass Strait is a major source
of consultation should be aligned with the overall level of of petroleum activity in Australia. To liaise effectively with
environmental, social and economic risk.
the commercial and recreational fisheries groups prior to and
throughout the duration of the Northern Fields seismic survey,
For example, the consultation undertaken by Esso as outlined
Esso developed a Public Affairs Plan, which targeted key
in Case Study One in this paper may be considered an
stakeholders. Initial contact with these groups was established
appropriate level of consultation for an activity taking place in
by Esso with the Lakes Entrance Fishing Co-operative, the
a medium impact area, whilst the consultation which was
Port Albert Fisheries cooperative and the Eden fishing
undertaken by both Woodside and Origin Energy in Case
industry the major industry associations.
Study Two may be considered an appropriate level of
consultation for an activity taking place in an environmentally
Meetings with these groups were conducted during the
sensitive or high multiple-use area, such as the Otway Basin.
planning of the seismic survey to outline the project scope and
identify potential concerns amongst commercial fishermen in
A key aspect of tailoring consultation to the level of activity is
relation to the survey. These meetings led to an ongoing
to increase the effectiveness and efficiency of how we regulate
communication strategy between Esso, the seismic contractor,
and approve activities. That is, activities with low potential
the fishing industry and community representatives generally.
for environmental risk will be approved more efficiently and
The key strategies included:
regulators will be able to focus their efforts on activities with
Scheduling seismic operations to avoid or minimise
higher potential for environmental impact, thus, ensuring that
disruptions to the fishing operations.
SPE 86618
Establishing a register of contact details for all
commercial fishermen from ports within Victoria,
Tasmania, New South Wales and South Australia that
operate in the survey area. This register included a
profile of the local fishing vessels to facilitate
recognition and communication between vessels.
The profiles included: photos of the vessels; type of
fishing operation; equipment used; vessel description
and call sign; registration numbers; contact numbers;
frequencies; and name of master. This register was
used to assist the crew of the seismic vessel in
identifying and communicating with the individual
fishing vessel during the seismic survey.
Introducing a protocol for communication which
included defining an agreed radio channel for
contact, providing laminated maps of the survey area
and a description of the seismic survey processes for
advising vessels in a timely manner. In addition,
photographs of the seismic vessel were distributed to
the local fisherman to assist in ready identification.
Establishing a radio communication procedure to
advise the fishing boats of target locations and actual
operating times on a daily basis, to avoid or minimise
conflict.
Engaging a Lakes Entrance based fisherman to liaise
directly between the fishermen, Esso and the seismic
vessel. This ensured that fishery concerns were
identified and appropriately resolved, for example,
this resulted in significant changes to the shooting
plan to accommodate the scallop fishermen and
smaller changes to accommodate more specific
interactions. During the survey weekly updates were
provided to allow the fishermen to plan their
activities. The liaison officer also provided a
mechanism for Esso and the seismic operator to raise
matters with the fishermen ensuring effective two
way communication.
The use of a dedicated support vessel to assist in the
diverting of vessels that may have disturbed the
towed survey equipment.
Feedback sessions from the fishing community to
Esso, to discuss the success of the consultative
process and identify areas of improvement for future
surveys.
In addition, Esso ensured that the wider community was fully
informed of the seismic survey:
Early in the project, a number of commercial
fishermen and community representatives visited the
survey vessel to inspect its operations and learn more
about the seismic operations. This visit was valuable
in maintaining positive and effective dialogue
between Esso, the seismic operator and the local
fishing industry, providing an increased
understanding of Essos commitment to responsible
environmental management.
Communication with recreational fishermen, boating
users, and divers was primarily through
advertisements and bulletins in local newspapers and
5
to state and local boating, diving, and angling clubs
and associations. Information was also displayed on
signs at boat launching ramps in the Lakes Entrance
and Port Albert regions.5
The key learnings that Esso attained from their consultation
strategy in the Bass Strait were:
that adequate planning time was required to ensure
that all parties whom may be impacted are aware and
involved with the upcoming activities;
the need to involve a broad range of groups to ensure
all relevant/interested parties were involved and that
the opportunity exists for their views to be fully
expressed; and
that companies plan so they can address and follow
up issues with any group who may be missed at the
pre-survey briefings.
Case Study 2
Woodsides Management of the Thylacine and Geographe
Exploration Activities in the Otway Basin, southern Australia.
Recent research has shown that the offshore Otway Basin
contains important habitat feeding, breeding and aggregation
areas and migratory paths for several marine mammals. The
most difficult and contentious environmental issue facing
petroleum exploration in the Otway Basin is the potential
impact of noise on cetaceans and fish populations.
Noise sources in the region emanate from shipping, small
vessel traffic, some seismic and petroleum exploration and
appraisal drilling. It is estimated that 3-4 ships pass through
the region every day, and higher numbers of smaller vessels
can be expected in coastal traffic. Apart from shipping the
other major activity that takes place in the Otway Basin is
commercial fishing.
Given the complexity and sensitivity of the environmental and
multiple-use issues of the Otway Basin region, it is apparent
that any petroleum activity in the region must recognise these
issues and that a stakeholder involvement process that seeks to
address any issues in a pre-emptive way should be undertaken.
In July 1999, Woodside Energy Ltd and its joint venture
partner Origin Energy Resources Limited were awarded
petroleum permits in the offshore Otway Basin. There was to
be comprehensive ongoing petroleum activity. Prior to
undertaking any seismic and drilling activities in the region
Woodside and its joint venture partner developed a
comprehensive management strategy to address the
environmental and multiple-use issues. The key to their
management strategy was to ensure regulatory compliance,
and to facilitate a process where all stakeholders were fully
informed about proposed activities, the potential impacts of
those activities and how Woodside and Origin Energy
intended to manage those impacts. The process began as soon
5
APPEA Journal 2003, Environmental management in the Bass
Strait northern fields 3D seismic survey, S.H. Mustoe, M.C.
Greenwood and J. F. Moore, pp772-773
6 SPE 86618
as they were awarded the permits, and well before any activity
began in the Otway Basin.
In view of the ongoing nature of the activities establishing a
good reputation was central for the joint venture to manage
stakeholders expectations. Recognition of the changing
operating environment and stakeholder involvement was
identified as key to:
preventing delay or denial of the exploration program
caused by environmental, social or political risks;
identifying, and ensuring protection of, the key
environmental and social values and sensitivities;
building strong relationships with key government
and non-government stakeholders with interests in
the region;
introducing the joint venture to the community;
ensuring that Woodside and their joint venture
partner, as reflected in the media coverage, were
perceived and recognised as responsible operators
that are prepared to consider the concerns of
stakeholders; and
enhancing their reputation as credible and
experienced exploration and production companies.6
To develop stakeholder involvement in the process, Woodside
created a team, which included: experienced staff who had
previously worked on the nearby successful Minerva project
(a key ingredient for which was public acceptance), a marine
biologist with expertise in whales, and external consultants
with significant experience on projects in the southwest
Victorian region. The engagement of stakeholders with the
team assisted in identifying key environmental, social and
political issues that had the potential to either delay, or in the
worst case, result in denial of approvals for proposed
exploration activities.
The process was split into three stages with the first stage
involving: a desk-top assessment indentifying the
stakeholders; the compilation of a stakeholder database; the
preparation of a stakeholder briefing schedule and an
information package. The second stage involved actual
engagement with stakeholders and finalising of activities
planned in stage one and the third stage involved resolution of
the issues disclosed during the process.
Woodside and its joint venture partner undertook a variety of
actions within these stages, which included:
preparation of material for media briefings, news
releases, newspaper advertisements including
location maps which were placed in local papers
before and during seismic and drilling activities;
inquiry/complaint response procedures using a toll
free telephone number;
a Memorandum of Understanding with the
fishermen;
6 8
APPEA Journal 2002, Management of environmental and
stakeholder issues for offshore exploration activities in the Otway
Basin, J.G. Colman, A. Grubisa and R.S. Millhouse p705
community sponsorships and donation programs; and
regular face-to-face contact between the Otway Basin
exploration team and stakeholders.7
In a period of two years over 104 briefings were conducted on:
the proposed or ongoing seismic survey or drilling activity; the
potential environmental impacts of those activities; and how
Woodside and Origin Energy intended to manage those
impacts. Identification of the environmental issues was
largely facilitated through the development of an
environmental resource atlas for the Otway Basin. Copies of
the resource atlas were distributed to all interested
stakeholders.
In addition, fishermen were provided with maps showing the
location and details of the seismic survey, and a support vessel
was engaged to survey ahead of the seismic vessel to ensure
that fishing equipment had been removed from the pre-agreed
area. To minimise the risk of equipment loss, any equipment
found was retrieved and returned to its owner or re-deployed
after the seismic vessel had passed.
The stakeholder involvement process enabled Woodside and
Origin Energy to meet its statutory requirements with regard
to consultation, however, the benefits to Woodside and its
joint venture partner were far beyond just regulatory
compliance. These benefits included:
improved identification of critical environmental
issues;
improved environmental awareness across the project
team and deeper appreciation of the view of local
stakeholders;
timely environmental approvals for the seismic
survey and drilling activities;
increased level and effectiveness of communication;
enhanced reputation for Woodside and Origin Energy
at all levels;
effective dialogue and information-sharing with
environment and conservation groups;
positive stakeholder feedback and coverage in local
and regional newspapers; and
reduction in conflict between commercial fishermen
and the seismic survey vessel.8
Delay or denial of regulatory approvals for exploration
activities can have significant economic costs. For Woodside,
the overall cost of the initial stakeholder involvement process
in the Otway Basin was approximately A$180,000. For each
day that the seismic survey could have been delayed or denied,
as a result of environmental, social or political risks, the cost
would have been about A$100,000. Given the cost of
7
APPEA Journal 2002, Management of environmental and
stakeholder issues for offshore exploration activities in the Otway
Basin, J.G. Colman, A. Grubisa and R.S. Millhouse p705
APPEA Journal 2002, Management of environmental and
stakeholder issues for offshore exploration activities in the Otway
Basin, J.G. Colman, A. Grubisa and R.S. Millhouse p707
SPE 86618
mobilising a drilling activity the potential costs of delay or
denial could have been significantly more than this.
The stakeholder involvement process undertaken by Woodside
and Origin Energy in the Otway Basin has application across
industry generally, particularly for projects in locations with a
high level of environmental sensitivity, multiple-use and
stakeholder concern.
Case Study 3
The rock lobster fishing season in Western Australian State
waters.
The previous case studies outlined practical examples of wider
community consulation. This case study is an example of
consultation with a specific industry group and the petroleum
industry.
There was potential for conflict to occur when seismic surveys
were undertaken during the rock lobster fishing season, in
Western Australia. The key issue for the rock lobster
fishermen was the seismic streamers interfering with the rock
lobster pots. Being a key activity for the area industry,
government and community groups readily identified this as
an issue that required more than just individual company
consultation when proposing to perform seismic activity. Due
to the large area and the involvement of a number of
companies and fisheries consultation was required at a broader
level. This involved government and the peak fishing and
petroleum industry associations.
An agreed mechanism was developed by the Western
Australian Department of Industry and Resources and the
Department of Fisheries, the Western Australian Fishing
Industry Council (WAFIC), and the Australian Petroleum
Production and Exploration Association (APPEA). Petroleum
operators are now required to follow guidelines in order to
obtain approval of a seismic survey operation in Western
Australian State waters.
While the guidelines require that seismic surveys are to be
carried out, wherever possible, outside the rock lobster fishing
season, and with the agreement of the fishing association, in
some cases an agreement between the operator and the
appropriate Professional Fishermens Association cannot be
reached. At these times the operator is required to write to the
Minister for Industry and Resources to advise that agreement
could not be reached and a request is submitted to invoke the
Appeal Provision.
The Appeal Provision is as follows:
The Minister for Industry and Resources, upon being
satisfied that the operator has taken all reasonable
steps to avoid operating within the rock lobster
season and the rock lobster fishermen have taken into
consideration exceptional circumstances,9 will
9
Exceptional circumstances are: allowing for seismic surveys of
limited duration (one or two days); conducting the survey in an area
of the fishery where few pots are deployed, for example, in deep
7
request that a meeting be held in the district of the
appropriate Professional Fishermens Association, to
be chaired by an officer of the Department of
Industry and Resources, and to be attended by the
Executive of the Professional Fishermens
Association, the Executive Officer of WAFIC, a
representative from Fisheries Western Australia and
the operator.
The Chairperson will discuss any grievances at this
meeting and attempt to reach agreement on
unresolved matters between the proponent and
Professional Fishermens Association. Where
agreement is reached, the Chairperson will advise the
Minister for Industry and Resources of the terms and
conditions of the agreement. Where agreement
cannot be reached, the Chairperson and the
representative from Western Fisheries will report
separately to the Minister for Industry and Resources,
on the meeting and the factors to be taken into
account in the consideration of the appeal.
Upon consideration of the report(s), the Minister for
Industry and Resources will decide to approve or not
approve the undertaking of the seismic survey by the
proponent within the rock lobster fishing season.
The Minister for Industry and Resources will advise
in writing all appropriate parties, on the decision.
More information is available on the Western Australian
Department of Industry and Resources website
http://www.doir.wa.gov.au/safety/petroleum/lobsterfishing.ht
m.
Lessons learned
Effective consultation can only be achieved through careful
planning. Key considerations include:
1. Communication should begin early and promote a two-
way exchange of information and solutions.
2. Communication should be clear, tailoring the program of
consultation to the type and location of the activity and
level of community concern.
3. Set the objectives that will guide and shape the
community consultation program, outlining
responsibilities which are realistic and practical.
4. Determine what resources and timelines will be required
for the consultation program.
5. Companies should demonstrate to the community the role
of the activity in achieving ecologically sustainable
development, and highlight the integration of social,
economic and environmental aspects.
6. Companies should ensure government; community
leaders and groups are provided with full information by
identifying the problems and issues and generating
solutions to encourage fair and informed discussion
throughout all stages of the activity.
water at the commencement of the "whites" fishery; and allowing
the seismic survey to consist of a single line from shallow water to
deep water.
8 SPE 86618

7. Monitor the progress of the consultation program by
feedback, public comment, surveys, media monitoring
and staff debriefing.
Industry Driven Measures
There are a wide range of non-regulatory tools, such as
guidelines and codes for environmental management practices,
which can be used to obtain desirable levels of consultation.
Codes of environmental management practice emerged as a
tool of environmental policy in the late 1980s. The
transformation to codes of environmental practices has been
driven by not only a changing regulatory regime, but also by a
desire for continuous improvement of performance over and
above compliance with regulatory requirements. This
transformation also recognises the legitimacy of the
community and the environmental, social and economic
values of the community.
Consultation can vary from industry to industry and
community to community however, there are basic principles
or guidelines that should apply in most situations. It is for this
reason that the Australian Government Department of
Industry, Tourism and Resources is developing draft
Principles and Guidelines for Consultation together with
industry, conservation groups, State and Territory regulators
and other Australian Government departments. The
application of these principles and guidelines will assist the
petroleum industry in undertaking consultation in the best
possible way integrating environmental issues and community
concerns throughout all phases of petroleum activities.

Codes of Environmental Practice

Today most companies have a corporate environmental policy,
which commits the company and the employees to addressing
the needs of stakeholders. Company codes of environmental
practice are important to respect the social and economic
environment.

The petroleum industry and other industry groups have

developed codes for two purposes: to change the
environmental behaviour of participating firms; and to
increase public confidence in industry's commitment to
environmental protection. These codes have spurred
participating firms to introduce new practices, including the
institution of environmental management systems, public
environmental reporting, and community advisory panels.

Guidelines
Guidelines for community consultation reflect governments
expectations and government policy. Today some petroleum
companies incorporate community consultation guidelines into
their codes of environmental practice to give stakeholders a
clear understanding of the companys environmental values
and as a result, reflect a shared view of the communitys
environmental approach.

Conclusion
The division of Australias waters into State/Territory
Government and Australian Government control and the
number of competing uses in Australias oceans can make the
management of marine resources difficult and complex.
Whilst the offshore petroleum industry is legislatively required
to consult with interested parties, there is no room for
complacency. Our oceans systems are under increasing
pressure from many users. Planning and management for
multiple-use should ensure that decisions about resource
access or use and the allocation of benefits are equitable,
objective and transparent. Consultation helps to create a more
inclusive and equitable relationship building trust and
confidence. However, consultation is not simply about
collecting the views and opinions the community, it is a
complex and dynamic process, which benefits from best
practice and diligence.