J, AUSTRALIA
PROME BF33NISTER PRESS STATEMENT NO. 378
22 November 1974
Joint Statement by Mr E. G. Whitlam, Prime Minister,
and Mr Bjelke-Petersen, Premier of Queensland
GREAT BARRIER REEF PETROLEUM DRILLING ROYAL COIMISSIONS
Mr Whitlam and Mr Bjelke-Petersen released today a
summary of the Report of the Great Barrier Reef Petroleum Drilling
Royal Commissions. The Report had previously been presented to the two
Governments on 1 November; however, because of the length of the
Report, 1100 pages, printed copies will not be available until
December. Both Mr Whitlam and Mr Bjelke-Petersen agreed that in
the interim it was in the public interest to make available a summary
of the recommendations contained in the Report.
They stressed that this was a summary only of what was
a long and comprehensive report and that it should be read in this
context; comments on the recommendations would be best delayed until
they could be made on an informed basis, in the context of the whole
Report, when it becomes available.
A copy of the summary is attached.
CAN3BLIRA, -A. C. T.
GREAT BARRIER REEF PETROLEUM DRIILING ROYAL COMMISSIONS
Background The Commission was appoin ted on 5 May 1970, and an
identical Commission was issued by the Governor of Queensland on
the same date. The three Commissioners were Sir Gordon Wallace
( Chairman), Dr J. E. Smith of Ply mouth,. England, and Mr V. J. Moroney
of Calgary, Canada.
The Commission presented its Report to the Governor-General
and to the Governor of Queensland on 1 November 1974. The Report
is 1098 pages long and it will be early December before the Report
is printed and copies become available.
Following is a summary of the Commission's conclusions on
its five terms of reference, Care should be exercised in using
the summary in view of its abbreviated form in relation to the total
size of the Report.
The Commission examined the " Great Barrier Reef Province"
( GBRP) which is the " Area" as defined in its terms of reference
covering approximately 105,000 square miles. Within the Province
is a reef zone whose total area is about 27,000 square miles.
The total area of all reefs within the Province is between 4,300
and 5,000 square miles.
SUMMARY Term of Reference 1.
Takin& into account existing world technology in relation to
drilling for petroleum and safety precautions relating thereto,
what risk is there of an oil or gas leak in exploratory and
production drilling for petroleum in the Area of the Great
Barrier Reef?
Conclusions In regard to blowouts, which occur through a combination of the
presence of hydrocarbons with either equipment failuro or human
failure or both, if petroleum drilling be permitted within the GBRP
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there will be and remain a real but small to very small risk
of such occurrences. As to chronic pollution, if petroleum drilling be permitted
within the GBRP it is almost certain that some measure of chronic
spills would occur ranging from small to substantial.
Term of Reference 2.
What would be the probable effects of such an oil or gas
leak and of the subsequent remedial measures on
the coral reefs themselves;
the coastline;
the ecological and biological aspects of life
in the area?
Conclusions The Commissions' conclusions are reached on the basis of
lengthy scientific evidence put before it on such subjects as the
composition and properties of crude oils, their toxicities and the
important changes in composition and toxicity which occur as the
result of migration and weathering, and consideration of overseas
spills, gas leaks and remedial measures.
In regard to freshly spilled crude ' oil, the Commission
concludes that its effects on corals and on the
many different kinds of organisms living on or.
associated with coral reefs, have not been
sufficiently studied for the direct consequences
of massive and-chronic spills to be predicted with
any degree of confidence or for the indirect
consequences to be predicted at all.
( ii) As to weathered oil, the majority of the Commission
( Dr Smith and Mr Moroney) are of the view that Oil
which has been at sea in the area of the GBRP and
subject to weathering for some 1-1i days will
probably be depleted of the toxic components originally
present in the freshly spilt crude oil to the point where
it is virtually non-toxic to marine organisms.
The Chairman ( Sir Gordon Wallace) has a dissenting opinion.
He concludes that there is inadequate scientific knowledge
of possible damage of an indirect and long-term nature.
On the basis of evidence given to the Commission, the
Chairman considers that there is imprecision on the toxic
qualities of spilt oil at the various stages of its
weathering through migration and insufficient evidence to
establish how long it takes for the oil to become non-toxic
in the waters and climatic conditions of the GBRP and
indeed whether it is completely harmless even when weathered.
( iii) In regard to gas leaks the Commission concludes there is
little hazard to the marine life of the GBRP save for
possible limited and strictly localised effects.
( iv) On the matter of remedial measures,, only two are considered
to pose significant hazards to organisms of the GBRP, these
being dispersants and sinking agents. The Commission states
these should not be used except in few special circumstances.
Term of Reference 3.
Are there localities within the Area of the Great Barrier
Reef and, if so, what are their geographical limits twherein
the effects of an oil or gas leak would cause so ii le
detriment that drilling there for petroleum might be permitted?
Conclusions All members agree that drilling should not be permitted on
any cay, island or reef or national park or marine park when
declared. However, the majority ( Dr Smith and Mr Moroney) mire of the
opinion that with certain designated buffer zones and subject to the
adoption of the safety precautions ( including contingency planning)
recommended in the answer to Term of Reference 4 drilling could be
permitted in designated areas. Dr Smith considers that areas at
least fifteen miles east of the outer Barrier would also be permitted
areas. Mr Moroney considers that permitted areas outside or seawards
of the outer Barrier should be governed by relevant buffer zones.
Areas where drilling should be excluded are also designated.
Geographic specification of these areas is necessarily complex and
details are provided in the full Report.
The Chairman's view is that all drilling throughout the GBRP
including the area east of and adjacent to the outer Barrier should
be postponed and be planned and permitted only after the results are
known of both the short and the long-term research recommended in
the Report. He has added, that whilst recognising the force of his
colleagues' views, he considers that of the various permitted drilling
localities recommended by the majority, the Capricorn Channel by
reason of its size and freedom from reefs, islands and cays would
present the least risk of detriment to shores and ecosystems if an
oil leak occurred therein provided a buffer zone of 30 miles were
adopted.
Term of Reference 4.
if exploration or drilling for petroleum in any locality
within the Area of the Great Barrier Reef is permitted,
are existing safety precautions already prescribed or
otherwise laid down for that locality regarded as
adequate and, if not, what conditions should be imposed
before such exploration or drilling could take place?
Conclusions A number of recommendations, suggestions and conclusions are
included in this section. The Commission concludes:
there are no ' existing safety precautions ( already)
prescribed or otherwise laid down" for any locality
within the GBRP whilst certain draft regulations
prepared by Australian and State authorities in 1969
inadequately and insufficiently cover the subject of
safety precautions.
amendments are required to the parallel legislation of
the Australian and Queensland Governments of 1967 known
as the Petroleum ( Submerged Lands) Acts.
the drafting instructions for a common code of regulations
compiled by Australian Government and State Authorities
in 1969 are inadequate and require extensive review.
its detailed recommendations are designed for the special
conditions of the GBRP and are not in all cases intended
to apply to the whole of the Australian Outer Continental
Shelf.
drilling should not be permitted in a marine or national
park.
Mf there must be fully co-ordinated Australian and State and
Industry contingency plans before any drilling is
permitted with appropriate stockpiling. An approved
industry plan should be a condition precedent to the
grant of permission to drill.
in view of the high cost of remedial measures successful
applicants must give appropriate assurance that they can
meet any financial commitments involved.
that human error has been invariably the sole or a major
contributing cause of all blowouts.
Term of Reference
What are the probable benefits accruing to the State of
Queensland and other parts of the Commonwealth from
exploration or drilling for petroleum in the Area of the
Great Barrier Reef and the extent of those benefits?
Conclusions The Commission states that any answer imust of necessity be
based on assumptions or hypotheses one of the principal ones being
that drilling would be commercially successful, and various degrees
of success were assumed by the-economists who contributed to the
expert evidence given to the Commission on this term of reference.
The gross benefits will includeaddition
to the national monetary wealth depending on the
size of the discovered reservoirs, the cost of finding and
the proportion of Australian ownership of the explorer and
producer;
lower prices to Australian consumers but this would depend
on a number of contingencies;
increased income tax the quantum of which appears from
various tables compiled on different assumptions;
royalties; self-sufficiency;
industrial development, decentralisation and benefits from
natural gas;
increased technological and scientific knowledge.
The potential disadvantages will beconsumption
of irreplaceable resources;
interference with the environment and its enjoyment by
mankind;
risk of damage to corals and other marine organisms and to
birds; and
hazards to the tourist industry.
Neither the gross benefits nor the potential disadvantages can
be quantified in the former case because of the varying assumptions
which must be made and in the latter because research and experiments
must be carried out before scientific knowledge will be qualified to
assess the effects of oil on corals and other marine life in the GBRP.