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The Northern Territory government has approved US gas company Tamboran Resources' plan to significantly expand its fracking project in the Beetaloo Basin, just weeks after signing off on a controversial gas supply deal.
Tamboran now has approvals to drill 15 new gas wells at its Shenandoah South project, about 600 kilometres south of Darwin, after the government green-lit its environment management plan on Friday.
Despite Tamboran's plans to store up to 34 million litres of wastewater in open storage ponds, clear 145 hectares of land and emit more than 170,000 tonnes of greenhouse gas emissions annually, the project has not triggered further independent assessments such as an environmental impact statement.
Environment groups and experts have slammed the sign-off, describing the approvals as "an absolute disaster" for climate change and water resources.
Tamboran's is the first NT fracking project approved since national environment laws were amended last year to extend the water trigger to shale gas fracking.
The water trigger ensures that fracking projects are assessed by the Commonwealth for their impact on water supplies.
Tamboran's plan involves extracting 375 million litres of water each year, but the NT government has not referred the project to be assessed under the water trigger.
Federal Environment Minister Tanya Plibersek said: "All projects must comply with national environment law, including the expanded water trigger introduced by the Albanese government."
On Friday, NT Environment Minister Kate Worden distanced herself from the government's decisions and said the NT Environment Protection Authority (EPA) had decided Tamboran's plans did not meet the threshold for further scrutiny.
"It's not up to me as the minister for environment to decide if it requires an environmental impact assessment," she said.
Last year, Tamboran was fined over pollution violations, and whistle-blower contractors later revealed they were told to spray drill rig water despite Tamboran knowing the fluid was contaminated.
The approval does not grant the gas giant licence to move to commercial production just yet, but a spokesperson from Tamboran said the company was aiming to start selling by at least early 2026.
"Tamboran's Environmental Management Plan (EMP) addresses impacts to Matters of National Environment Significance and protection of groundwater resources associated with 15 wells. These have been reviewed and confirmed to not be significant by the independent NT EPA," the spokesperson said.
On Friday, Chief Minister Eva Lawler also defended the decision to not require further assessments, and said an environment management plan was enough.
However, she did welcome a more rigorous assessment of water impacts by the federal environment minister.
"[Tamboran has] gone through the right processes," she said.
"We already have checks and balances that are far beyond what the EPBC's [water trigger] would do."
In April, the NT government signed a nine-year deal with Tamboran to buy its fracked gas from the Beetaloo Basin.
NT Mining Minister Mark Monahan said he hoped the territory would see those benefits from next year, and dismissed claims the government was rushing approvals through.
"The territory needs certainty around its gas provision," he said.
"The regulations we have in place, which are the toughest in the world to ensure these new industries get off the ground, are being followed to the letter.
"They are not being rushed, they are being fully investigated."
Philip Scott, from Parents for Climate, said in the wake of an expanded fracking industry in the NT, he was worried about his children's future.
"This decision is leaving our kids wondering who the adults in the room are here," he said.
Environment groups are calling on Tanya Plibersek to ensure Tamboran's fracking plan is scrutinised under the new water trigger laws.
"This would ensure independent expert scrutiny that is urgently needed to properly assess the full impact of this project," Mr Scott said.
Ian Wright, an associate professor of environmental science at Western Sydney University, said the absence of further independent scrutiny was "very concerning".
He said while an environment management plan was "fantastic", it did not fully reflect the actual risks because it was a self-assessment by the company.
"I think this deserves the appropriate level of scrutiny for a new industry that is already causing heightened community concern, and a large number of unresolved environmental impacts," he said.
"There have been a number of incidents, and there is a growing gulf of concern that these have not been thoroughly addressed.
"It reminds me of when the Tasmanian government was building dams around 40 years ago and then the Commonwealth government stepped in, because [it became apparent that] no, this is actually not okay, we need more scrutiny."