Documents have been lodged in the Federal Court of Australia as a company fights for former Prime Minister Scott Morrison’s decision to block a Sydney gas exploration project to be overturned.
The application seeking the decision to be overturned and for costs is listed for a one-day hearing on March 15 next year.
Asset Energy, a subsidiary of unlisted company Advent Energy, will allege that Mr Morrison “was biased and failed to afford procedural fairness” in his decision not to grant an extension of terms and a suspension and variation of the minimum work requirements under gas exploration PEP-11 (or Petroleum Exploration Permit 11).
Asset claims Mr Morrison’s decision — formally handed down in March — caused listed company BPH Energy (BPH), a stakeholder in the PEP-11 project, economic loss.
BPH traded as high as 23 cents per share in January 2021, as investors anticipated the PEP-11 drilling program would be approved. This week, shares are trading below 2.5 cents.
Advent had applied for PEP-11 to be extended and varied so it could drill Seablue-1, about 26 kilometres off the coast of Newcastle.
Asset Energy’s Federal Court Application said: “…the Prime Minister (Scott Morrison) had publicly committed to a final position of refusing the application, prior to receiving the submissions of the applicant dated 22 January 2022 in response to the Notice of Intention to Refuse, it can be inferred the Prime Minister did not properly take into account the applicant’s submissions and … the applicant was not given an opportunity to be heard”.
Mr Morrison was exercising extraordinary ministerial powers to overrule decisions to approve the licence that had been made by the National Offshore Petroleum Titles Administrator and the Minister for Resources.
The action comes amidst the furore around whether Mr Morrison acted beyond his power to appoint himself, during the COVID pandemic, to lead five additional ministerial portfolios, including Resources, under which he made the PEP-11 decision.
Mr Morrison’s decision brought joy to many climate campaigners and environmentalists, including The Greens party, which continues to pressure Prime Minister Anthony Albanese to recommit to stopping the PEP-11 project.
In a press release last December, Mr Morrison and NSW Liberal colleagues said the application was refused for several reasons: community opposition; because the government wasn’t satisfied “that the applicant is able to raise sufficient funding required to progress the work program in a timely manner”; and because the government did not agree with the applicant’s reasons for an extension.
“Gas is an important part of Australia’s current and future energy mix, but this is not the right project for these communities and pristine beaches and waters,” Mr Morrison said in December.
“From Newcastle through to Wollongong, my Government has listened to the concerns of local Liberal Members and candidates and their communities, and we’re putting our foot down.”
But power shortages have ravaged eastern Australia and exploration companies are fighting back.
Asset Energy’s action is lodged in the Federal Court against the Prime Minister as the Responsible Commonwealth Minister of the Commonwealth-New South Wales Offshore Petroleum Joint Authority, and the Minister for Regional New South Wales, as the Responsible State Minister of the Commonwealth-NSW Offshore Petroleum Joint Authority.
BPH Energy holds a 36 per cent stake in Advent Energy, which wholly owns Asset Energy. Asset Energy holds 85 per cent of the Pep-11 project in the offshore Sydney basin.
On its website, BPH said the permit contained up to 13.2 trillion cubic feet (Tcf) of prospective recoverable gas, close to Sydney and local power and port infrastructure.
BPH Energy this month raised nearly $1.2 million through a 1.8-cent placement and announced it was well-funded for the next phase of its investment in hydrogen and the proposed PEP-11 gas and carbon capture storage project.
BPH executive director David Breeze said Everblu Capital acted as lead manager for the raising.
“Advent has received a copy of the draft Environmental Plan, which is currently being reviewed prior to release to enable the Environmental Consultation Process for Pep-11, and we are hopeful of conducting drilling, subject to resolution of the judicial review application in the Federal Court of Australia in relation to the extension of the PEP-11 permit,” Mr Breeze said.
“The funding also allows BPH to accelerate the exploration programs to unlock the potential on both our hydrogen and gas projects, especially following the recent gas crisis and focus on hydrogen.”
Documents relating to the contested decision were provided to the Federal Court by the Commonwealth Minister for Resources on October 5, 2022.
Asset Energy has also made submission to the investigation by former Justice of the High Court of Australia Justice Virginia Bell into the appointment of the former Prime Minister to administer departments other than that of the Prime Minister and Cabinet.