‘Biased’ decision on PEP 11 gas permit overturned for BPH Energy
The gas potential of PEP 11 was firmed up further after Advent’s review of Geoscience Australia’s reports.
BPH Energy (ASX: BPH) and Bounty Oil & Gas (ASX: BUY) have announced their victory in Federal Court proceedings against the Commonwealth to allow their offshore oil and gas permit PEP 11 to continue.
The joint venture partners released statements this week advising of the resolution of the proceedings between PEP 11 operator Asset Energy, the wholly owned subsidiary of BPH’s investee Advent Energy, and the Commonwealth Minister for Resources. The resolution follows BPH and Bounty filing consent orders to end the litigation.
The proceedings began in June and involved the decision made last March by the Commonwealth-New South Wales Offshore Petroleum Joint Authority to refuse Asset’s application for a variation and suspension of PEP 11’s conditions and a related refusal to grant an extension of the term.
Asset had alleged that then-prime minister Scott Morrison, who was later found to have ‘secretly’ appointed himself to several portfolios including resources, was biased and failed to afford procedural fairness in his decision to cancel the permit.
Mr Morrison was seen as intervening to try to save critical Liberal seats on the central coast of NSW and in inner-city Sydney.
Decision quashed as affected by “apprehended bias”
On Tuesday, presiding judge Justice Jackson agreed with the consent position reached by the parties, quashed the decision and concluded that the decision made by the Joint Authority was affected by “apprehended bias”.
Citing the Justice Jackson’s resolution, BPH said this was because a “fair minded observer would have reasonably apprehended” that Mr Morrison “did not bring a fair mind to determine Asset Energy’s application”.
BPH confirmed to the market that PEP 11 continues in force and the joint venture is “fully in compliance with the contractual terms” of the permit with respect to reporting, payment of rents and the various provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
“In light of the decision of the Federal Court of Australia, the PEP 11 joint venture sincerely hopes that the relevant applications can be re-considered in a timely manner and according to law by the ministers now comprising the Joint Authority,” BPH chief executive officer David Breeze said.
Offshore gas and carbon storage project
Exploration permit PEP 11 covers BPH’s gas and proposed carbon storage project at the Baleen prospect in offshore NSW.
Mr Breeze has described the project as having “potential national significance” as it addresses both forecast gas shortages and the objective of net zero emissions.