Traditional Owners from the Beetaloo Basin have criticised the federal government after it confirmed a probe into whether millions of dollars of public funds were given to oil and gas companies through a research and development scheme that explicitly excludes fossil fuel exploration.
Oil and gas company Empire Energy was singled out in a Senate estimates hearing last Thursday over its alleged use of $28.8 million in R&D funding from the Department of Industry, Science and Resources' Research and Development Tax Incentive Scheme.
The company is exploring for gas at the Beetaloo Basin site, 500km south-east of Darwin, but the estimates hearing in Canberra saw department heads questioned over the funding given to Empire via the scheme.
"Empire's financial reports state that it accessed the scheme in relation to drilling and fracking gas exploration and appraisal wells in the Beetaloo [Basin], even though gas exploration is excluded from the R and D [Research and Development] tax incentive scheme," Queensland Greens Senator Penny Allman-Payne said.
The department has since confirmed it would investigate claims oil and gas companies were using the taxpayer-funded money for fracking through the scheme, which states funds cannot be used for "prospecting, exploring or drilling for minerals".
The R&D Tax Incentive was introduced to encourage R&D investment to support companies innovate and grow.
The Beetaloo Basin site encompasses Indigenous land, pastoral leases that co-exist with Native Title rights and interests, horticultural enterprises, cattle stations and remote Aboriginal communities.
The NT government has long held aspirations to be Australia's major gas hub, with most of the NT covered by exploration permits and Beetaloo key to its ambition.
Empire Energy was first granted $21 million in July 2021, as part of the Morrison government's 'gas-fired recovery' to explore for gas, and has recently commenced consultation on its Carpentaria pilot project, which involves 10 new fracking wells.
Djingili Elder Samuel Janama Sandy, the chair of Nurrdalinji Native Title Aboriginal Corporation that represents native title holders from the Beetaloo Basin, said Empire was putting "public money in their pocket" that was better spent on the community.
"$28.8 million could fund housing, roads, health and put solar on roofs, using the sun which is free," said Mr Sandy, who lives in a housing commission flat in Katherine, 400km from his home town of Elliott, in order to access the dialysis he needs three days a week.
"The money would build a new dialysis clinic in Elliott, helping me and other Aboriginal people who are forced to live away from family to get dialysis," he said.
"Empire is talking to the government and getting money under the table. It should be happening on the table. We need to switch the light on so we can all see what's happening.
"Communities don't see jobs or economic benefits from this gas company's drilling. It's all about company profits."
The NNTAC includes native title holders from the Amungee Mungee, Beetaloo, Hayfield, Kalala, Newcastle Waters - Murranji, Nutwood Downs, Shenandoah, Tandyidgee, Tanumbirini, Daly Waters Township, Ucharonidge native title determinations.
Empire Energy CEO Alex Underwood told National Indigenous Times on Tuesday that innovative new approaches were required to tackle unique geological challenges critical to developing the Beetaloo Basin's natural gas resources.
"The Beetaloo Basin is the world's oldest shale gas basin and commercial extraction processes are yet to be proven in the region due to its complex geology," he said.
"As such, R&D to develop innovative new processes for drilling, stimulation and completion will be required.
"It must be noted that although drilling for specifically defined purposes is excluded from being a core R&D activity, drilling may be an eligible R&D activity if it does not fall into these specific exclusions, or it is undertaken for the dominant purpose of supporting R&D activities."
He said significant volumes of high-quality gas resources at Beetaloo were identified decades ago but limited technical knowledge of its unique geological setting had restricted development and production.
R&D on gas extraction at Empire's EP187 tenement was required to leverage its substantial potential and glean knowledge for the benefit of the industry, and address gas shortfalls on the east coast.
"Should the outcomes of our R&D be successful, this will deliver substantial energy and economic benefits to Territorians, including the local communities and Traditional Owners on whose land development takes place," Mr Underwood said.
The CEO said similar points were highlighted in its submission to the Senate Inquiry last year.
In December the company accelerated its target for commercial production at Beetaloo, where it enjoyed a commanding position through its 100 per cent-owned subsidiary Imperial Oil & Gas.
Holding more than 28 million acres of highly-prospective ground, Empire is poised to be one of the major gas suppliers to the east coast, where shortfalls are forecast this year.
A spokesperson for the federal Department of Industry, Science and Resources told National Indigenous Times that "information on participation in the R&DTI is protected by the confidentiality provisions of the Industry Research and Development Act 1986 and the secrecy provisions of the Income Tax Assessment Act 1997".
"The Department of Industry, Science and Resources (DISR) is unable to comment on the participation of companies or the eligibility of their R&D activities. The department conducts a range of activities to ensure the integrity of the program, including education, guidance, and compliance activities," they said.
