Offshore Petroleum and Greenhouse Gas Storage Amendment (Stop PEP11 and Protect Our Coast)

Current status

This bill did not become law and is no longer proceeding.

Policy area

Climate, energy & environment

What does this bill do?

The bill would cancel the PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. offshore oil and gas exploration permit two months after the law starts, ending that project off the New South Wales coast.

Why was it introduced?

A February 2023 deal to set aside PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast.’s cancellation after intervention by the former Prime Minister restarted the permit decision and left coastal communities facing renewed uncertainty. The bill cancels PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast., stops officials considering pending or new applications, and permanently blocks oil and gas approvals anywhere in the former PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. area.

Broader context

PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. was an existing offshore gas exploration permit off the New South Wales coast that had expired in February 2021 and was then blocked by Scott Morrison in December 2021, but a February 2023 deal to set aside that cancellation after his secret ministerial intervention forced the decision process to restart. That revived the project and the uncertainty around it, so this bill was introduced to cancel PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. outright, stop officials dealing with pending or future applications in the area, and lock in a permanent ban, while later state and federal decisions also moved to shut the project down.

Key criticism

The main case against the bill is that permanently killing PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. could shut off a potential domestic gas source for New South Wales and make energy shortages during the coal exit harder to manage. That criticism appears to have come mainly from PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. proponents and business reporting around the project, while no party represented in the debate is recorded as opposing the bill.

Who supported it?

Zali Steggall MPA person elected to the House of Representatives; here it refers to Zali Steggall as the bill’s sponsor. introduced this bill. It was supported by Labor, Liberal Party, Nationals, some crossbench members; opposed by Greens, some crossbench members; and did not pass.

Introduced in House 13 Feb 2023
Failed in House 05 Sept 2023
Did not reach Senate
Did not become law

Did it become law?

No

The bill did not complete passage through Parliament.

Final passage

Did not pass

1 recorded vote before the bill stopped proceeding

Time before failure

204 days

From introduction to the final recorded step before the bill stopped proceeding

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. The bill would cancel the PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. offshore oil and gas exploration permit two months after the law starts, ending that project off the New South Wales coast.

  2. The bill would stop the New South Wales offshore decision-makers from dealing with any undecided PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. applications, including the current bids to pause permit conditions and extend the permit.

  3. The bill would block officials from even inviting new bids for offshore petroleum exploration or production licences in any block covered by PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast..

  4. The bill would permanently ban officials from granting oil and gas permits, leases, licences and related approvals anywhere that has ever been part of the PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. area, even if someone applied earlier.

Show source excerpts
  1. Subsection (1) provides that PEP11 ceases to be in force 2 months after this section commences.
    Offshore Petroleum and Greenhouse Gas Storage Amendment (Stop PEP11 and Protect Our Coast) explanatory memorandum
  2. These sections are designed to ensure that if, as at the date of commencement of the provision, the Joint Authority has not decided the titleholders’ two extant applications for suspension of conditions and extension of PEP11, then it is under no obligation to continue considering those applications. These provisions are designed to work with subsections (5)(b) and (6), which would prevent the Joint Authority from granting the aforementioned applications for suspension and extension, as well as any other applications for suspension and extension relating to PEP11.
    Offshore Petroleum and Greenhouse Gas Storage Amendment (Stop PEP11 and Protect Our Coast) explanatory memorandum
  3. the Joint Authority cannot invite applications for the grant of petroleum exploration permit or petroleum exploration license over a PEP11 block; and
    Offshore Petroleum and Greenhouse Gas Storage Amendment (Stop PEP11 and Protect Our Coast) explanatory memorandum
  4. Subsection (6) ensures that the prohibitions in subsection (5) apply notwithstanding that the titleholder may have applied for the grant, renewal, variation or suspension before the provision’s commencement.
    Offshore Petroleum and Greenhouse Gas Storage Amendment (Stop PEP11 and Protect Our Coast) explanatory memorandum

Broader context for this bill

PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. was an existing offshore gas exploration permit off the New South Wales coast that had expired in February 2021 and was then blocked by Scott Morrison in December 2021, but a February 2023 deal to set aside that cancellation after his secret ministerial intervention forced the decision process to restart. That revived the project and the uncertainty around it, so this bill was introduced to cancel PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. outright, stop officials dealing with pending or future applications in the area, and lock in a permanent ban, while later state and federal decisions also moved to shut the project down.

  1. February 2021

    PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. expires

    The explanatory memorandum says PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. had expired by February 2021, leaving its proponents reliant on applications to suspend conditions and extend the permit.

    Explanatory memorandum ↗
  2. 16 Dec 2021

    Scott Morrison blocks the PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. permit extension

    The AFR reported that Morrison said the government would reject the application to roll over PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. off the Sydney and Central Coast shoreline.

    Australian Financial Review ↗
  3. 03 Feb 2023

    Government agrees to set aside Morrison's cancellation of PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast.

    The federal government and the companies agreed to settle the case so the application would go back to ministers for reconsideration after Morrison's intervention was thrown into doubt.

    Australian Financial Review ↗
  4. 13 Feb 2023

    Stop PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. and Protect Our Coast Bill is introduced

    Zali Steggall introduced the bill after the revived decision process put the extension and variation applications for PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. back before decision-makers.

    Hansard ↗
  5. 07 Feb 2024

    NSWThe stretch of offshore waters off NSW where the PEP11 permit sits and where the bill wants to block new approvals. moves to ban offshore oil and gas exploration and mining

    The AFR reported that the Minns government introduced state legislation to prohibit offshore oil, gas and mineral mining and exploration to give coastal communities more certainty, although PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. proponents said they would keep pushing in Commonwealth waters.

    Australian Financial Review ↗
  6. 17 Jan 2025

    Joint federal and NSWThe stretch of offshore waters off NSW where the PEP11 permit sits and where the bill wants to block new approvals. panel refuses the PEP11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. applications

    The AFR reported that the panel refused the offshore exploration permit applications, with Ed Husic citing the public interest and doubts about the companies' capacity to fund the work.

    Australian Financial Review ↗

How did it move through Parliament?

House Senate
Introduced 13 Feb 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 13 Feb 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Removed from the Notice Paper in accordance with (SO 42) 05 Sept 2023

The bill reached this recorded parliamentary step.

The main case against this bill

The main case against the bill is that permanently killing PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. could shut off a potential domestic gas source for New South Wales and make energy shortages during the coal exit harder to manage. That criticism appears to have come mainly from PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. proponents and business reporting around the project, while no party represented in the debate is recorded as opposing the bill.

Criticism was limited and largely came from the project’s backers rather than parliamentary opponents.

Risk to gas supply

Project proponents argued that blocking PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. would cut off a possible source of local gas just as coal-fired power stations retire, making New South Wales more exposed to supply shortfalls and imports.

Raised by Asset Energy and Advent Energy chief executive David Breeze, as reported by the Australian Financial Review Source ↗

Politically driven intervention

The push to permanently block the project was criticised as a political move that overrode an ongoing approval process instead of letting regulators assess the permit and related applications on their merits.

Raised by Asset Energy and Advent Energy chief executive David Breeze, with reporting noting efforts to head off legal battles Source ↗

Recorded votes

How the bill itself passed

These were the main recorded votes on the bill.

Carried

House cleared second reading

Aye 47 No 14

Passed 47 to 14. Support came from Labor, Liberal Party, and Nationals. Opposition came from Greens and minor parties and independents. Minor-party and independent votes were split.

29 Mar 2023

Party Recorded votes Aye / No
Labor 33 / 0
Unknown 8 / 6
Independent 0 / 7
Liberal Party 3 / 0
Nationals 3 / 0
Greens 0 / 1

These are votes on the bill itself rather than amendment votes.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Zali Steggall

Independent • MP 13 Feb 2023

Steggall supports the bill and says it should permanently stop PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. by preventing any new licence or extension in the area.

Read in Hansard ↗
Lead non-major voice Supports

Sophie Scamps

Independent • MP 13 Feb 2023

Scamps supports the bill and says the PEP-11The offshore petroleum exploration permit that this bill aims to cancel; it covers waters off the New South Wales coast. drilling licence should be cancelled permanently to protect the coast, marine wildlife and climate.

Read in Hansard ↗

All speeches by bloc

Minor parties and independents

2 speakers · 2 support

Full record

Full chat