23 February 2022: Climate action group 350 Australia has accused Resources Minister Keith Pitt of lining the pockets of the oil and gas billionaires by giving millions of dollars to a fracking company chaired by a Liberal party donor. 

Resources Minister Keith Pitt has today announced that the Morrison Government has re-issued $19.4 million in grants for Empire Energy’s subsidiary Imperial Oil and Gas for three fracking wells in the Northern Territory’s Beetaloo Basin. The original grants awarded to Empire under the Beetaloo Grants program were thrown out by the Federal Court in December 2021.

350.org Australia Campaigns Director Kelly Albion said: “This is an atrocious misuse of public money, given to a company with close ties to the Liberal Party for a gas project that will be a disaster for our climate.

“The International Energy Agency and the Intergovernmental Panel on Climate Change recent reports were completely clear that opening up new gas basins is incompatible with a safe future – it’s mind-boggling that our Government is actually handing public money to gas companies to accelerate fracking.

“The Morrison Government is clearly more interested in giving money to their donors in the gas industry than hearing the concerns of Traditional Owners and local communities who don’t want Empire Energy’s project to go ahead.”

Documents released under Freedom of Information to 350 Australia reveal extensive lobbying by Empire Energy of Minister for Industry, Energy and Emissions Reduction Angus Taylor. This included coordination around a party fundraiser and requests for early information about the grants scheme in January 2021. Empire Energy chair Paul Espie has made numerous, large donations to the Liberal Party, totalling close to $400,000 and chairs the Liberal-aligned Menzies Research Centre.

A settlement requiring Empire Energy to pay a civil penalty of $37,000 was reached with the US EPA in December 2020 following two significant oil spills at Empire’s Kansas facilities. The EPA alleged the company violated environmental regulations regarding harmful discharges of oil, preparation and implementation of adequate spill prevention plans and the clean water act.

“We are extremely concerned by Empire Energy’s track record, its extensive lobbying and donations to the Liberal Party, and the disastrous impact this project will have for our climate. Given the NT Government’s failure to implement the recommendations of the Pepper Inquiry into fracking, including unclear wastewater rules, proceeding with these grants is reckless.”

“Instead of scrutinising Empire Energy’s plans, Minister Taylor is giving press conferences at their drill sites, having dinner with them at party fundraisers, and the Morrison Government is doggedly committed to giving them $19.4 million of public money.”

“It’s 2022, we should be building big renewable energy with batteries that are manufactured in Australia, not digging up new sources of methane that will irreversibly warm our climate,” concluded Albion.

Background on Empire Energy (Imperial Oil and Gas) 

• Documents released under Freedom of Information to 350 Australia reveal extensive lobbying of Angus Taylor by Empire Energy. This included coordination around a party fundraiser and requests for early information about the grants scheme in January 2021.
• Empire Energy chair Paul Espie has made numerous, large donations to the Liberal Party, totalling close to $400,000 and chairs the Liberal-aligned Menzies Research Centre.
• Energy Minister Angus Taylor traveled to Empire Energy’s NT gas field in October 2020, even though he was not responsible for the resources portfolio.
• Empire Energy donated $65,000 to the major parties in 2020-21.
• Traditional Owners from the region have written an open letter to MPs saying they won’t allow fracking on their land.
• The US EPA filed a Complaint, Consent Agreement and Final Order in relation to the Kansas oil spill and the US EPA press release.