THE Federal Court has "vacated several orders" made in preparation for a now abandoned Federal Court case brought by the shareholders in the PEP-11 project against the federal and state governments.
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The two-page orders say that various undescribed "paragraphs" of orders made in August and November last year are "vacated".
"The matter is adjourned sine die," the order states, meaning adjournment without a future date for return to the court.
In statements on Tuesday to the stock exchange, two listed companies involved with PEP-11 - BPH Energy Limited and Bounty Oil & Gas NL - summarised this week's developments.
The near-identical statements said Justice Darren Jackson "has now vacated several interlocutory orders previously made in connection with preparing for" the case brought by in the name of another company, Asset Energy Pty Ltd.
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"As a result, Bounty and BPH anticipate the Federal Court will consider the joint position - to settle the matter without a trial - taken by Asset Energy and the Minister (for Resources) and decide the matter accordingly," the statement continued.
"In the meantime, PEP-11 continues in force and the joint venture is fully in compliance with the contractual terms of PEP-11 with respect to such matters as reporting, payment of rents and the various provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006."
Last week, Labor's Resource Minister Madeleine King said that if the Federal Court accepted the settlement of the case, the PEP-11 decision would be "returned to the Commonwealth-New South Wales Offshore Petroleum Joint Authority for consideration".
"In the first instance, the Government of NSW, as the NSW member of the Joint Authority, will consider its position in relation to the project as a relevant decision-maker under the Offshore Petroleum and Greenhouse Gas Storage Act (2006).
"The Commonwealth will then consider the matter once the NSW member of the Commonwealth-New South Wales Offshore Petroleum Joint Authority has considered the matter."
David Breeze, executive chairman of BPH and the public face of the PEP-11 project, said the Commonwealth had the final say in whether to approve a time extension of the PEP-11 licence.
As the Newcastle Herald has reported, Asset Energy had taken the government to court on the grounds that an intervention by former prime minister Scott Morrison aimed at quashing the project was "infected by actual bias".
The court action sought a judicial review of the Morrison decision, in which the former PM had secretly appointed himself to various ministries with the governor general's approval.
Mr Breeze said the Commonwealth's decision not to fight the Federal Court case had generated a lot of interest.
"I have been congratulated by companies large and small as a result of this," Mr Breeze said today.
He said the Australian gas shortage was so severe that even if the Santos Narrabri project came online it would only fill about a third of the shortfall.
He said the gas shortage and the resultant high prices were driving up inflation, with the Reserve Bank of Australia lifting interest rates again by 0.25 percentage points this week.
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Ian Kirkwood
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
