New South Wales Deputy Premier and Nationals Leader Andrew Stoner has announced sweeping reforms to the state’s CSG industry, including the creation of a new Land and Water Commissioner role, the removal of the royalty reprieve for CSG producers, and implementation of incentive programs for producers to contribute funds to local projects under a new community benefits initiative.
The NSW Government will appoint a new Land and Water Commissioner to oversee the regulation of invasive exploration activity on strategic regional land before this activity occurs, and establish new Regional Community Funds, which Mr Stoner said will see local communities receive a share of their region’s assets.
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The NSW Government will refund $1 for every $2 committed by industry, and will fund its contribution by ending the royalty reprieve for CSG producers. Currently, the first five years of CSG production are royalty-free, after which royalties are imposed at an initial rate of 6 per cent per annum, rising by 1 per cent ever year until reaching the top rate of 10 per cent per annum.
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Image caption: Deputy Premier and Nationals Leader Andrew Stoner.