Farmers left 'dumbfounded' at decision to overturn South East fracking ban

Farmers left 'dumbfounded' at decision to overturn South East fracking ban

Farmers are 'dumbfounded' at the South Australian government's announcement that it will introduce legislation next week to overturn a fracking moratorium in the South East. File pictures

South East food producers have been left 'dumbfounded' by this morning's announcement that the South Australian government intends to overturn a moratorium on fracking in the region.

Hydraulic fracture simulation, or fracking, is used to underground natural gas and oil, but has been banned in the region, with the then Liberal government imposing a 10-year moratorium on the practice in 2018.

While conventional gas extraction does occur in the region, local farmers and residents major concerns lay with the risk to the region's underground water aquifer from the process where high-pressure liquid is used to break rock for oil and gas wells.

Coonawarra vigneron Peter Balnaves described Premier Peter Malinauskas's announcement, ahead of a community cabinet in the region, as "arrogant".

Mr Malinauskas said legislation would be introduced to remove the current moratorium on hydraulic fracture stimulation in the South East, "ensuring potential future gas resources were not unnecessarily ruled out at a time when South Australia and the broader east coast faced increasing pressure on domestic gas supply".

The Energy Resources (Regulated Activities) Amendment Bill will be introduced into state parliament next week.

Mr Balnaves said while the risks of fracking may be argued as minimal, the results of something going wrong would be "catastrophic".

"The Premier will, and has, stated that there has been fracking done across the state and that's true, but the Limestone Coast has a different aquifer because it's based over limestone," he said.

"You could say risk is minimal, but should something go wrong the effect would be catastrophic, because of the ability to firstly fix the problem, and secondly the amount of the Limestone Coast, the 21,000 square kilometres of land that could be affected by contamination of the upper aquifer."

Mr Balnaves is also concerned about the region's reputation.

"The Malinauskas government seems very willing to risk not only the aquifer, but the reputation of many industries down here for a short-term gain," he said.

"If they're not careful, by trying to solve a perceived energy crisis, they'll create a food security crisis."

Coonawarra vigneron Peter Balnaves believes the state government is risking the South East's reputation for short-term gain by overturning a fracking moratorium. File picture

Mr Malinauskas has pre-emptively defended the move, saying science and economics should dictate energy policy, not politics.

"It was a folly by the former government to lock up a potential future gas supply in one part of our state, while continuing to allow fracture stimulation everywhere else," he said.

"This decision does not approve fracking. It removes a blanket ban and ensures that any future proposal must meet rigorous scientific, environmental and community scrutiny.

"Groundwater protection is non-negotiable. If those standards cannot be met, the project will not proceed."

The South East is a powerhouse of agricultural production not only in SA but the nation, renowned for its beef and cattle, potato, dairy, winegrape and timber industries, and contributing 36.7 per cent of the state's gross regional product for agriculture, forestry and fishing.

Figures from the Limestone Coast Local Government Association show 31 per cent of SA's winegrape crush, 49.2pc of dairy production by value, 45pc of SA's potatoes, and 80pc of Australia's lucerne seed come from the region, while it is also home to 900,000 sheep and 600,000 cattle.

Todd Woodard, Naracoorte farmer and chair of Limestone Coast Sustainable Futures, is a vocal opponent to strip mining.

He said sentiment from community forums held in the region had shown that there was overwhelming opposition to both fracking and rare earth mineral mining.

He said there was a feeling of concern within the community upon hearing the announcement, as well as disappointment at the lack of consultation.

Given its productive soils, underground aquifer, proximity to ports and abattoirs, Mr Woodard said the Limestone Coast and South East was the jewel in the crown of food and fibre production, not only in SA but in the nation.

He also said the risk versus reward of such a plan needed to be examined, and science overwhelming before the community would even entertain such a move.

A social research study conducted by the Department of Energy and Mining in 2024, collecting views of Limestone Coast residents about their views on mining in the region showed great opposition, with 94 per cent opposed when asked their stance on a project of interest.

Key concerns raised about mining in the region included impacts on farming and other pre-existing industries, the potential for unforeseen/irreversible damage, a lack of trust in the rehabilitation process and potential damage to soil, potential environmental impacts including risk to native flora and fauna, regional economic damage, and regional food security.

"It is apparent from the responses received through this research project that, there is insufficient trust in DEM's ability or motivation to ensure compliance with relevant legislation, or confidence or understanding of how the legislation governing on ground activities for these industries offers protection to impacted communities and environments," the study's summary stated.

Independent Member for Mount Gambier Travis Fatchen said the announcement was "deeply concerning" and would be a "major disappointment to people across our region".

"What is particularly frustrating is the lack of proper consultation before this announcement," he said.

"Community engagement should happen before a decision of this magnitude is made, not after the government has already signalled its intentions.

The SA Liberals have criticised the lack of consultation from government before announcing the decision, and say prime agricultural land should be protected, though not specifically opposing the move.

"We support increased gas production but the Coonawarra isn't Moomba," opposition spokesperson for Energy and Mining Ben Hood said.

"This is a completely different environmental and economic context, where everything hinges on our groundwater and aquifers.

"Any threat to groundwater is a threat to our food supply. The consequences could be long lasting.

"There is so much more Labor can do secure energy supplies for South Australia before turning to our prime agricultural land without consultation."

The South Australian Chamber of Mines and Energy believes the legislation "represents an important step towards restoring evidence-based policymaking and strengthening the state's long-term energy security".

"This legislation restores science-based decision making and puts South Australia back on the map as a State that welcomes responsible investment," SACOME chief executive officer Catherine Mooney said.

"Removing the moratorium would allow the South East region to participate fully in the state's economic future, while continuing to operate under some of the strongest environmental protections in the world."