Guidelines for the economic assessment of the impacts of
NSW mining and CSG proposals are now finalised.
The NSW Department of Planning and Environment released the
final Guidelines in late December 2015 which will now need to
be used by proponents and relevant professionals employed by the
proponent in the preparation of a development application for a
mining or CSG project in NSW.
if a project involves mitigation measures to reduce
environmental, social or other costs (for example, biodiversity
offsets or subsidence prevention measures), the risk that those
measures may or may not be fully effective is to
be discussed in the economic assessment;
economic assessments are to explicitly consider whether a
project will have any significant distributional impacts (ie.
identify the most likely winners and losers from a project and
report qualitatively on the extent of any expected material
proponents must present the net producer surplus (profit) which
is attributable to NSW only;
specific techniques for estimating second round / flow-on
economic effects of a proposal in the local effects analysis (LEA)
are provided; and
costs of remediation and decommissioning of a site should be
accounted for in the analysis of all costs and benefits
attributable to the project.
The appraisal guidelines for environmental, heritage, social and
transport impacts contained in the draft version are no longer
included in the final version. However, it is understood that the
Guidelines will be supported by Technical Notes which will set out
the default methodologies, parameters and assumptions to be used as
part of the economic assessment, including guidance on how to
identify and value these impacts of the project.
How will the Guidelines and Technical Notes apply?
includes a quantitative analysis and assessment, where feasible
and reasonable, of all issues considered in the EIS;
qualitatively describes impacts that cannot be quantified;
provides the framework by which environmental, social and
economic impacts identified in the EIS are compared on a common
basis and the results are incorporated into the conclusions of the
EIS as appropriate.
Where Technical Notes are available, the proponent should
identify and quantify impacts consistent with those notes. However,
where no Technical Note is available for a particular
environmental, social or transport-related cost (or benefit),
proponents are to still quantify impacts wherever possible having
regard to good practice, including relevant research and approaches
used in other Australian and international jurisdictions for
quantifying similar impacts.
Accordingly, compliance with the Guidelines and consistency with
any Technical Notes will be necessary as part of the assessment of
any new projects and to ensure compliance with the SEARs.
What mining and CSG proponents need to do
Proponents for all new State significant development for mining
and coal seam gas proposals need to consider whether their proposal
complies with the Guidelines and, when released, are consistent
with any supporting Technical Notes.
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
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