Regulator secures third significant agreement with mining company over water

2 August 2023

The Natural Resources Access Regulator (NRAR) has secured its third significant mining-related enforceable undertaking (EU) in just a few months after accepting an agreement with Tahmoor Coal Pty Ltd.

Compensation of $200,000 and a strict water monitoring and reporting regime are among the actions to be carried out by the company to compensate for allegedly taking water without an access licence.

NRAR began investigating Tahmoor Coal in 2020 after it was observed that underground longwall mining had fractured Redbank and Myrtle Creeks causing surface water to be diverted from them.

Under the enforceable undertaking, the company must:

Pay compensation of $150,000;
Pay a further $50,000 for not having adequate water licences;
Contribute $25,000 for rehabilitation work along the banks of Stonequarry Creek, near Hume Oval at Tahmoor.
Report to NRAR on its monitoring of, and impact on, current and future water take at Tahmoor Coal, including supplying six monthly water monitoring reports to NRAR;
Ensure it has sufficient water access licences and water entitlements for its mining activities by reviewing its water access licence strategy every year; by buying extra water entitlements when needed and by providing a copy to NRAR of its updated water strategy within 28 days of completion.
Provide quarterly progress reports on the remediation of Redbank and Myrtle Creeks with a final report to be provided after two years; and
Commit to ongoing consultation with Tharawal Local Aboriginal Land Council representatives about the impact the company's operations may have on waterways, and the corresponding impacts on the local Aboriginal community.

NRAR Director Investigations and Enforcement Lisa Stockley welcomed the agreement, which seeks redress for water unlawfully taken as a result of damage caused by underground mining.

“The company acknowledges the harm done to the environment and the community and has committed to a series of steps to pay for the water taken to better measure and account for water take at the site, and to ensure they remain compliant with the rules in future,” Ms Stockley said.

Ms Stockley said enforceable undertakings delivered innovative benefits to the community which were not possible through other legal channels such as prosecution.

“That is the case in the agreement with Tahmoor Coal, and similar positive outcomes were achieved by NRAR recently at Boggabri and in the Illawarra,” Ms Stockley said.

“Companies sometimes propose to NRAR that we consider accepting an enforceable undertaking to remedy significant breaches of NSW water law as an alternative to court action," she said.

“Before we accept a proposed enforceable undertaking, it must contain actions to address the rule-breaking and to acknowledge the breach of the Water Management Act 2000”.

"NRAR also considers what happened, how serious it was and whether there is a history of rule breaking.”

An EU will not be accepted unless NRAR considers it can deliver positive outcomes in the public interest in accordance with its guidelines. NRAR has previously entered into 10 EUs to date with a range of conditions.

You can read more about other enforceable undertakings on NRAR’s website.