❓ A WA parliamentary question on notice addresses concerns regarding petroleum exploration activities in the King Sound area, specifically focusing on compliance, environmental impacts, and the financial capacity of companies involved, particularly Gulliver Productions and its parent company China Guoxin. The response indicates some action is being taken but raises questions about the thoroughness and timeliness of regulatory oversight.
AnsweredQoN 134Legislative Council
QuestionView source ↗
(1) Has the Department of Energy, Mines, Industry Regulation and Safety (DMIRS) issued any Directions Notices to Rey Resources Ltd, Gulliver Productions or China Guoxin Investment Holdings Pty Ltd (China Guoxin) in the past six months, relating to petroleum exploration activities in the King Sound area in the Kimberley? (2) If yes to (1): (a) to whom has the Directions Notice (or Notices) been issued; (b) to which petroleum lease or well site(s) does the Directions Notice (or Notices) apply; (c) what action does the Directions Notice (or Notices) require of the recipient and within what timeframe; (d) does the Directions Notice (or Notices) address all 44 non-compliances recorded in the 2021 DMIRS Site Inspection Report, 'File reference: EARS-Inspection-4834' (Inspection Report 4834); (e) if no to (d), why not; (f) of the 44 non-compliances recorded in the 2021 inspection report, referenced in (d), how many are addressed in this Directions Notice (or Notices); and (g) what does the Department intend on doing about the non-compliances not addressed in this Directions Notice (or Notices)? (3) In the 2021 DMIRS Inspection Report 4834, the Department recommended that nine Directions Notices should be issued to Gulliver Productions. Of those nine recommended Directions Notices, I ask: (a) how many Directions Notices have now been issued; (b) why has the Department not issued all nine Directions Notices; and (c) what does the Department intend on doing about each of the recommended Directions Notices which are yet to be issued? (4) Why is it that the Department was unable to issue the recommended Directions Notices to Gulliver Productions immediately following Inspection Report 4834 but now, four years later, it is able to issue at least one of the Directions Notices to Gulliver Productions? (5) Now that Gulliver Productions, formerly a subsidiary of Rey Resources Ltd, is owned by a company called China Guoxin Investment Holdings Pty Ltd, I ask: (a) how many existing petroleum wells is China Guoxin now responsible for on the petroleum leases 'EP104', 'L15' and 'R1' in King Sound; (b) has the Department carried out any due diligence to ascertain whether this company has the financial or technical capacity to fulfil its legal obligations in relation to the petroleum leases it now holds in the Kimberley; (c) if no to (b), why not; (d) does the Department believe that China Guoxin has the financial or technical capacity to address the serious environmental impacts and risks associated with the petroleum wells it now owns in the sensitive King Sound area of the Kimberley; and (e) if yes to (d), on what basis? (6) What is the Department’s estimate of the cost of decommissioning and rehabilitating the petroleum wells China Guoxin is now responsible for, including West Kora-1, Point Torment-1 and Stokes Bay-1?
AnswerView source ↗
Answered
24 June 2025
Responded by
Minister for the Environment representing the Minister for Mines and Petroleum
Response time
9 days
(1) Yes.
(2)
(a) Gulliver Productions Pty Ltd.
(b) Production Petroleum Licence L 15 – West Kora-1 well site.
(c) The directions require the following actions be complete by 30 June 2027:
a. Remove or cause to be removed from the licence area L 15 all property brought into that area by any person engaged or concerned in the operations authorised by the licence including:
i. all structures, equipment and other property that was used or was intended to be used, for or in connection with petroleum exploration and/or recovery works and operations on L 15, including but not limited to wellhead compounds, concrete pads, flow lines, pipes, metal pickets observed adjacent to the well site and black plastic observed protruding through the soil surface; and
ii. all waste produced in connection with petroleum exploration and/or recovery works and operations on L 15.
b. Make provision for the conservation and protection of the natural resources in that area, by:
i. identifying and removing weeds at the West Kora-1 well site, West Kora tank farm and access tracks; and
ii. reinstating vegetation at the West Kora-1 well site, West Kora tank farm and access tracks that will be comparable to the vegetation of adjacent areas.
c. Make good any damage to the Earth’s crust in that area caused by any person engaged or concerned in the operations permitted by the licence, including by:
i. restoring soil and rehabilitating vegetation to a state that is safe, stable, non-polluting and to a state that is consistent with the surrounding land and vegetation, including but not limited to the removal of the earthen bund at the West Kora tank farm and the recontouring of the West Kora-1 well site and surrounds;
ii. removing and disposing of contaminated soils and soil containing hydrocarbons at the West Kora-1 well site and the West Kora tank farm and soils surrounding the well site such that the sites comply with the Department of Water and Environmental Regulation Contaminated Sites’ Guidelines;
iii. removing non-native soils from the West Kora tank farm, the West Kora-1 well site and surrounds;
iv. recontouring the surface of disturbed areas at the West Kora tank farm, the West Kora-1 well site and surrounding sites to be consistent with surface contours of adjacent areas;
v. recontouring the surface of any access tracks, including but not limited to West Kora tank farm and West Kora-1 well site, to be consistent with surface contours of adjacent areas; and
vi. rip soils in compacted areas to an appropriate depth to promote establishment of native vegetation at the West Kora tank farm, the West Kora-1 well site and access tracks.
(d) No.
(e) The 2021 Site Inspection Report identified nine compliance findings supported by 44 observational dot points. It did not classify these as 44 distinct non-compliances. The direction issued relates specifically to the findings applicable to L 15.
(f) Not applicable.
(g) The Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) is continuing to consider all available regulatory actions at its disposal.
(3)
(a) One.
(b) The Inspection Report provided preliminary findings to inform DEMIRS’ regulatory approach. Recommendations to consider issuing directions do not constitute a formal decision.
(c) Refer to (2)(g).
(4) DEMIRS undertook further investigation and sought legal and operational advice, which informed the subsequent decision to issue a formal direction.
(5)
(a) Nil. The petroleum wells remain the responsibility of Gulliver Productions Pty Ltd, the current titleholder.
(b) No.
(c) Financial and technical capacity assessments are only triggered during specific statutory processes, such as title transfers. The corporate transaction involving Gulliver Productions Pty Ltd did not trigger such a process.
(d) Refer to (5)(c).
(e) Not applicable.
(6) China Guoxin Investment Holdings Pty Ltd is not the petroleum titleholder for EP104, R1 or L 15.
(2)
(a) Gulliver Productions Pty Ltd.
(b) Production Petroleum Licence L 15 – West Kora-1 well site.
(c) The directions require the following actions be complete by 30 June 2027:
a. Remove or cause to be removed from the licence area L 15 all property brought into that area by any person engaged or concerned in the operations authorised by the licence including:
i. all structures, equipment and other property that was used or was intended to be used, for or in connection with petroleum exploration and/or recovery works and operations on L 15, including but not limited to wellhead compounds, concrete pads, flow lines, pipes, metal pickets observed adjacent to the well site and black plastic observed protruding through the soil surface; and
ii. all waste produced in connection with petroleum exploration and/or recovery works and operations on L 15.
b. Make provision for the conservation and protection of the natural resources in that area, by:
i. identifying and removing weeds at the West Kora-1 well site, West Kora tank farm and access tracks; and
ii. reinstating vegetation at the West Kora-1 well site, West Kora tank farm and access tracks that will be comparable to the vegetation of adjacent areas.
c. Make good any damage to the Earth’s crust in that area caused by any person engaged or concerned in the operations permitted by the licence, including by:
i. restoring soil and rehabilitating vegetation to a state that is safe, stable, non-polluting and to a state that is consistent with the surrounding land and vegetation, including but not limited to the removal of the earthen bund at the West Kora tank farm and the recontouring of the West Kora-1 well site and surrounds;
ii. removing and disposing of contaminated soils and soil containing hydrocarbons at the West Kora-1 well site and the West Kora tank farm and soils surrounding the well site such that the sites comply with the Department of Water and Environmental Regulation Contaminated Sites’ Guidelines;
iii. removing non-native soils from the West Kora tank farm, the West Kora-1 well site and surrounds;
iv. recontouring the surface of disturbed areas at the West Kora tank farm, the West Kora-1 well site and surrounding sites to be consistent with surface contours of adjacent areas;
v. recontouring the surface of any access tracks, including but not limited to West Kora tank farm and West Kora-1 well site, to be consistent with surface contours of adjacent areas; and
vi. rip soils in compacted areas to an appropriate depth to promote establishment of native vegetation at the West Kora tank farm, the West Kora-1 well site and access tracks.
(d) No.
(e) The 2021 Site Inspection Report identified nine compliance findings supported by 44 observational dot points. It did not classify these as 44 distinct non-compliances. The direction issued relates specifically to the findings applicable to L 15.
(f) Not applicable.
(g) The Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) is continuing to consider all available regulatory actions at its disposal.
(3)
(a) One.
(b) The Inspection Report provided preliminary findings to inform DEMIRS’ regulatory approach. Recommendations to consider issuing directions do not constitute a formal decision.
(c) Refer to (2)(g).
(4) DEMIRS undertook further investigation and sought legal and operational advice, which informed the subsequent decision to issue a formal direction.
(5)
(a) Nil. The petroleum wells remain the responsibility of Gulliver Productions Pty Ltd, the current titleholder.
(b) No.
(c) Financial and technical capacity assessments are only triggered during specific statutory processes, such as title transfers. The corporate transaction involving Gulliver Productions Pty Ltd did not trigger such a process.
(d) Refer to (5)(c).
(e) Not applicable.
(6) China Guoxin Investment Holdings Pty Ltd is not the petroleum titleholder for EP104, R1 or L 15.
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