Oil Shale Mining - McFarlane Deposit

_{26 August, 2008}

Ms JARRATT (Whitsunday—ALP) (11.48 am): Last Sunday the Whitsunday community let out a
collective sigh of relief as they heard about the Premier’s announcement of a 20-year moratorium on oil
shale mining at the McFarlane deposit near Proserpine. On behalf of my community I thank the Premier,
the Minister for Mines and Energy and their cabinet colleagues for making this difficult decision and
effectively protecting our precious environment from an uncertain future.

Oil shale is nothing more than a rock which when crushed and heated to around 350 degrees
Celsius produces kerogen, as well as carbon dioxide and a few other dubious emissions. Kerogen can
be further processed to an oil like liquid and finally diesel. In a world running short of easily and cheaply
accessible oil deposits, it is not hard to understand why Queensland Energy Resources Ltd thought the
time was right to consider a commercial opportunity based on Queensland’s largest oil shale deposit
known as the McFarlane deposit. It has been estimated that the McFarlane deposit may have the
potential to yield up to 4.8 billion barrels of oil over 40 years and provide around 3,000 jobs for the local
community.

These are attractive figures for governments that are focused on regional development. For me
as a local member and parliamentary secretary for regional development, I have to say that at first I saw
potential for the Whitsunday region to diversify and secure our economic future. But of course there
would be a price to pay for this wealth. Firstly, the oil shale would be mined using an open-cut process
that would create a massive scar on the landscape adjacent to a pristine wetland area that filters water
into the reef lagoon just kilometres away. Many locals were concerned about the impact of a flood event
sweeping across the mine area and onto the wetlands because, when it rains like it did in February this
year, no containment wall would hold back the flow.

If the company had decided to build a processing plant on site we would have had a massive
multistorey structure rising out of the plains and sprawling over 1,600 hectares just 15 kilometres south
of the town of Proserpine. Many were concerned about this proximity because, while there is no direct
evidence to link oil shale emissions to health impacts, anecdotal evidence from the Gladstone
experience suggested otherwise. The concern was that prevailing winds would direct the plant’s
emissions directly across Proserpine and on to the Cannonvale and Airlie Beach areas.

In addition to all of this, local tourism representatives were adamant that an oil shale industry in
the Whitsundays would be detrimental to our aspirations as a tourism destination renown for our
beautiful and pristine environment. As parliamentary secretary for both tourism and regional
development, I had a lot to weigh up. I do not apologise for taking the time to listen to my constituents
and giving careful consideration to all points of view, including that of QER. I confess that at first I could
not see an imperative for avoiding the usual process of assessment which would include a very rigorous
EIS process and full community consultation. The problem with this position, however, soon became
clear.

Unlike coalmining or alumina refining, oil shale processing is an unproven process. What
evidence does exist is not a recommendation for the process. QER was unable to give the community
answers to questions like: what gases would be emitted from the stacks and in what quantities? How
much water would the process require and where would the water come from? What effect would the
mine have on the watertable? The answers to these questions would come out of an EIS during the
assessment of the project, and this process would take years to complete. So it would be years before
we had answers to some very specific and important questions—years during which the fear and
anxiety of the community would build and years in which bitter debate would dissolve our appeal as a
friendly holiday destination.

Ultimately, it was not Greenpeace or the organised antishale oil campaigns that swayed me; it
was conversations I had with ordinary people who were genuinely frightened by the prospect of living
with an oil shale mine on their doorstep. I was hearing from people who were making plans to leave the
area. I know that many local tourism operators felt that oil shale mining would drive the last nail into the
coffin of an industry already reeling from the economic downturn and adverse weather events. The
Whitsunday community simply would not survive a long and protracted battle to stop oil shale mining.

So with long-term benefits dubious at best, short-term impacts already taking a toll and an
application to sample up to 400,000 tonnes of oil shale imminent, it was time to speak up and I did.

Again, I thank the Premier for a most welcome reprieve for my community. A 20-year moratorium on
mining or sampling oil shale at the McFarlane deposit effectively means that we can get on with our lives
knowing that the environment is protected and the community is safe.

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