Review of CSG-induced subsidence

Queensland’s resources and agricultural sectors are vital to our economy and the success of our regions, so it’s important that they coexist well together.

Our coexistence framework supports interactions between these sectors; however, there are still some challenges, such as the issue of coal seam gas (CSG)-induced subsidence and its potential impact on farming operations.

CSG-induced subsidence occurs where groundwater is extracted by gas companies to allow gas production to occur, leading to compaction of the coal seams and possible surface-level subsidence. This has created concerns and uncertainty for landholders in relation to impacts on their agribusiness activities.

A review of the regulatory framework for CSG-induced subsidence was undertaken by the GasFields Commission Queensland (GFCQ), resulting in a number of recommendations being made to government.

Proposed subsidence management framework

On 18 April 2024, the Queensland Government introduced the Mineral and Energy Resources and Other Legislation Amendment Bill 2024 (MEROLA) to Parliament. MEROLA proposes to implement a risk-based coal seam gas (CSG)-induced subsidence management framework.

Through this Bill, the Queensland Government will action all 8 recommendations outlined in the review of the regulatory framework for CSG-induced subsidence.

Actions to address GFCQ recommendations

Recommendation	Queensland Government response in May 2023 and action addressed in MEROLA
Implement a management framework to establish a process for the assessment and management of CSG-induced subsidence at a regional and farm scale	Recommendation supported in full A CSG-induced subsidence management framework will be implemented should MEROLA be passed
Incorporate independent assessment and alternative dispute resolution processes	Recommendation supported in full Alternative dispute resolution processes to assist parties to resolve disputes about agreements and plans within the CSG-induced subsidence management framework will be implemented should MEROLA be passed
Expand OGIA’s functions in relation to technical assessment and advice to enable further determinations relating to CSG-induced subsidence	Recommendation supported in full OGIA’s functions to provide independent scientific advice and assessment to support the CSG-induced subsidence management framework will be expanded should MEROLA be passed
Ensure costs of appropriate agronomy and irrigation specialist services can be recovered by landholders	Recommendation supported in full Recovery of landholder costs associated with negotiation and preparation of agreements and plans within the CSG-induced management framework will be implemented should MEROLA be passed
Investigate mechanisms to ensure the protection of landholders affected by CSG-induced subsidence off-tenure	Recommendation supported in full A CSG-induced subsidence management framework that will operate on and off tenure will be implemented should MEROLA be passed
Undertake analysis of potential changes to regional overland flow	Recommendation supported in principle, subject to further investigation A CSG-induced subsidence management framework that requires OGIA to undertake cumulative assessment of drainage across the subsidence management area will be implemented should MEROLA be passed
Consider the potential for critical consequences	Recommendation supported in principle, subject to further investigation A critical consequence mechanism where landholders can make an application to the minister to manage or mitigate unreasonable or intolerable impacts caused by CSG-induced subsidence will be implemented should MEROLA be passed
Provide additional information and support to landholders	Recommendation supported in full The GFCQ’s function to provide information, engagement and education services will be expanded to emerging coexistence issues, such as CSG-induced subsidence should MEROLA be passed

Next steps

MEROLA will be referred to the Clean Economy Jobs, Resources and Transport Committee for consideration.
Read MEROLA for a comprehensive outline of the proposed legislative amendments.

These actions tie in closely with the Queensland Resources Industry Development Plan and will support coexistence reforms that are underway to help build strong relationships between resources, agriculture and other land uses.

Last updated: 23 April 2024
Last reviewed: 21 February 2023