Minister Announces Details of Montara Commission of Inquiry 

05 November 2009

 

Minister for Resources, Energy and Tourism, the Hon Martin Ferguson AM MP today released details of a Commission of Inquiry into the uncontrolled release of oil and gas from the Montara Wellhead Platform in the Timor Sea.

Mr David Borthwick AO PSM will be the Commissioner conducting the Inquiry.

Mr Borthwick is a widely respected leader in Government and community circles and is well qualified to conduct this investigation. As the Commissioner he will have the authority to appoint experts in relevant fields to assist him in this important task. Personnel from my Department and the Department of the Environment, Water, Heritage and the Arts will also provide support to the Commissioner.

Mr Borthwick has had a distinguished career as a senior officer of the Commonwealth public service, most recently as Secretary of the Department of the Environment, Water, Heritage and the Arts, a position from which he retired earlier this year. He has also served within the Treasury, Health, and Prime Minister and Cabinet portfolios.

Minister Ferguson said, "The Montara Commission of Inquiry is established under amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 I introduced, and which received the support of all parties in the Parliament, in September."

This Inquiry possesses the powers and authority of a Royal Commission. It will have power to summon witnesses, take evidence on oath and require individuals and corporations to give the Commission documents relevant to its terms of reference. The Inquiry will also receive public submissions. The Commissioner will determine further details of how the Inquiry will be conducted.

Consistent with the proven approach taken by the Australian Transport Safety Bureau the Commission of Inquiry will receive evidence on a "no blame basis". Independent of the Commission of Inquiry, the relevant regulatory processes will determine whether any non-compliance with the law has occurred and whether any measures to seek penalties and other sanctions should be pursued.

In accordance with the Terms of Reference, Mr Borthwick will investigate and report on:

  • The likely cause(s) of the incident;
  • The adequacy and effectiveness of the regulatory regime, including approved safety, environment and resource management arrangements;
  • The performance of relevant persons in carrying out their obligations under the regulatory regime;
  • The adequacy of response requirements and the actual response to the incident;
  • The environmental impacts as a result of the incident, including reviewing environmental monitoring plans; and
  • The offshore petroleum industry's response to the incident and the provision and accessibility of information concerning the incident to stakeholders and the Australian community.

Minister Ferguson said, "I have also asked Mr Borthwick to make recommendations to Ministers, regulators and the industry, as appropriate, on measures that might mitigate against similar incidents occurring in the future and alleviate the safety, environmental and resource impacts arising from such an incident."

The Commissioner will present his report to me before the end of April 2010.

Concurrent with the Commission of Inquiry, the following investigations and reviews are being progressed by the Australian Government:

  • NOPSA is investigating all aspects of the incident concerning occupational health and safety;
  • The Northern Territory Department of Regional Development, Primary Industry, Fisheries and Resources is investigating all aspects of compliance with the regulatory regime applied under the Offshore Petroleum and Greenhouse Gas Storage Act 2006;
  • The Department of Environment, Water, Heritage and the Arts is undertaking an audit of compliance with the conditions of Environment Protection and Biodiversity Conservation Act 1999 approval relating to the drilling and other activities on the Montara wellhead platform; and
  • Under the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, the Australian Maritime Safety Authority will undertake a separate review into the effectiveness of the response to the incident.

The NATPLAN Review will be chaired by Mr Jim Starkey, an independent consultant with significant executive experience in the petroleum industry, the Australian Public Service and as a former chairman of the National Plan Management Committee responsible for oversight of Australia's oil spill preparedness and response capabilities.

The review team will involve the Australian Maritime Safety Authority, relevant Commonwealth departments, the Western Australian Government and the Australian Marine Oil Spill Centre. Public submissions will be called for and considered.

The Montara Commission of Inquiry will, to the extent practical, take into account these investigations and reviews. The outcomes will enable lessons to be learnt and improvements to be made by all stakeholders, including Government and industry.

Minister Ferguson said, "It is vital that we learn from this incident and take any necessary steps to stop it happening again."

Media Contact:

Michael Bradley - 0420 371 744