This week in brief
Parliament's last sitting fortnight delivered the week's headline: the Domestic Gas Reservation Bill 2026 cleared the House of Representatives on 29 October and now sits with the Senate.
Approvals risk moved in both directions. In Queensland, the Land Court recommended that Whitehaven's Winchester South coal mine be approved, while the State's bill narrowing who can object to mining leases went before a parliamentary committee. Federally, the Environment Minister signalled an overhaul of Aboriginal cultural heritage laws following the McPhillamys decision. In NSW, the Mount Pleasant bill had still not been introduced. Offshore, the UK kept its North Sea windfall tax until 2030.
David Walker, Principal
At a glance
| Status | Development | Jurisdiction |
|---|---|---|
| Prepare | Domestic Gas Reservation Bill 2026 passes the House; Senate next | Cth |
| Watch | Land Court recommends Winchester South coal mine be approved | Qld |
| Prepare | Mining lease objection reform bill goes to committee hearing | Qld |
| Watch | Minister flags overhaul of federal Aboriginal heritage laws | Cth |
| Watch | Mount Pleasant bill still not introduced after High Court ruling | NSW |
| Watch | UK keeps 38% Energy Profits Levy on North Sea producers to 2030 | UK |
Lead development: gas reservation scheme clears the House
Prepare Oil & gas / LNG · Commonwealth
What happened. The Domestic Gas Reservation Bill 2026 and its companion bills, including the Domestic Gas Reservation Levy Bill 2026, were introduced on 14 October 2026. They were referred to the Senate Economics Legislation Committee and passed the House on 29 October 2026. The Government has asked the Senate to pass the package without delay. The scheme requires east coast LNG exporters to make gas available to the domestic market, with the reservation capped at up to 20% of exports.
Why it matters. Based on the exposure draft, the aggregate domestic supply obligation is set by reference to the forecast domestic supply gap. Exporters must physically supply at least 90% of their minimum quantity in each regulated period, with limited deferral. Arrangements in place by 22 December 2025 are grandfathered, and State reservation schemes are recognised. Export licences, compliance plans, reporting, financial assurance and AER oversight back the obligation. Final settings may differ from the exposure draft. For producers, buyers and financiers, the scheme reshapes LNG offtake headroom, domestic gas contracting and project economics.
- LNG exporters: map existing and planned export contracts against the obligation, the grandfathering cut-off and the physical-supply test.
- Domestic buyers: prepare for new supply offers and the AER's reasonable-offer framework.
- Lenders and acquirers: add the scheme to LNG project due diligence and covenant modelling.
- Track Senate amendments and the Committee's report before finalising positions.
Questions boards and GCs should be asking
- Which of our export contracts fall inside or outside the 22 December 2025 grandfathering cut-off?
- Can we physically meet the supply test in every regulated period, given pipeline and storage constraints?
- How would a domestic supply obligation affect reserves, financing covenants and offtake renegotiations?
- Do we need to engage in the Senate process before the bill is finalised?
Sources: Business News, 29 October 2026 · Senate Economics Legislation Committee inquiry
Land Court recommends Winchester South coal mine be approved
Watch Mining · Queensland
What happened. On 30 October 2026 Member Loos of the Queensland Land Court recommended that the mining lease and environmental authority for Whitehaven Coal's Winchester South open-cut mine, about 30 km south-east of Moranbah, be granted. The Court rejected objections from the Australian Conservation Foundation and Mackay Conservation Group. It weighed very high greenhouse emissions and 6,950 ha of clearing against an estimated $696 million in State royalties. It also gave weight to the mine being mainly metallurgical coal, and it recommended strengthened rehabilitation conditions.
Why it matters. The Court treated diffuse climate harm as not directly attributable to environmental harm in Queensland and not a key consideration under the State's mining and environmental legislation. That contrasts with the NSW High Court position on Scope 3 emissions. The recommendation is not final: the Resources Minister decides, and federal EPBC Act approval is still required.
- Queensland coal proponents: note how the Court treated Scope 3 emissions and metallurgical versus thermal coal.
- Prepare rehabilitation material to the stronger standard the Court favoured.
- Watch for the Minister's decision, the federal EPBC decision and any review.
Sources: Industry Queensland, 30 October 2026 · ABC News, 30 October 2026
Queensland mining lease objection reforms reach committee hearing
Prepare Mining tenure · Queensland
What happened. The Mineral Resources and Other Legislation Amendment Bill 2026 (Qld), introduced on 15 September 2026, was the subject of a public hearing before the Primary Industries and Resources Committee on 28 October 2026. The bill would limit standing to object to a mining lease to landholders and occupiers within 125 km, infrastructure providers in the lease area, and local governments. It would also remove the general 'any good reason' ground and environmental grounds, and make referral of objections to the Land Court a matter for ministerial discretion.
Why it matters. If the bill passes, fewer applications will be contested in the Land Court, and the timing of grants will depend more on ministerial discretion. The transitional rules turn on the stage each application has reached when the law commences. The 125 km limit and the loss of automatic independent review have drawn criticism, so amendments are possible.
- Map each pending Queensland mining lease, environmental authority and PRCP application against the transitional rules.
- Consider the timing of mining lease notices around likely commencement.
Sources: InDaily Queensland, 28 October 2026 · Queensland Government statement
Minister flags overhaul of federal Aboriginal heritage laws
Watch Cultural heritage · Commonwealth
What happened. On 1 November 2026 Environment Minister Murray Watt said the Government will overhaul federal cultural heritage laws, citing a surge in applications that is slowing projects. This follows LFB Resources NL v Minister for the Environment and Water (No 3) [2026] FCA 1504 (14 October 2026). In that case the Federal Court set aside the 2024 section 10 declaration over the tailings site for Regis Resources' McPhillamys gold project, because later cultural material had not been put through the statutory reporting and consultation process. The Government will not appeal and will re-determine the application. Two further applications for the site are on foot.
Why it matters. The decision is procedural, so the merits remain open. For all proponents, the reform signals tighter process and timing for applications under the ATSIHP Act. Consultation on reform is expected before the end of 2026.
- Proponents facing section 9 or 10 applications: check whether late-emerging material was put through the statutory process.
- Prepare to make submissions when the reform consultation opens.
Sources: AAP, 1 November 2026
Mount Pleasant bill still not introduced after High Court ruling
Watch Planning & climate · New South Wales
What happened. On 7 October 2026 the High Court (3:2) confirmed that the 2022 approval for the Mount Pleasant coal mine extension was invalid. The majority held that the Independent Planning Commission had not considered conditions to minimise Scope 3 emissions as the NSW planning instrument required. On 19 October the NSW Government announced special legislation to allow production of up to 16.5 Mtpa until 2032, tied to a jobs guarantee and Scope 3 conditions. As at 2 November the bill had not been introduced.
Why it matters. NSW consent authorities must now actively consider Scope 3 conditions for resource projects. The project-specific bill has drawn rule-of-law criticism. Its passage and terms will show how far the State will go to protect approvals in the pipeline.
- NSW resource proponents: address Scope 3 conditions expressly in assessment material.
- Review existing NSW consents for exposure to challenge on the same ground.
Sources: Discovery Alert, 3 November 2026
Global watch: UK keeps North Sea windfall tax until 2030
Watch Oil & gas fiscal regime · United Kingdom
What happened. In its 28 October 2026 Budget the UK Government kept the Energy Profits Levy, currently 38%, on North Sea oil and gas producers until 1 April 2030, unless a price floor ends it earlier. A permanent price-activated mechanism will replace it.
Why it matters. The decision is relevant to Australian companies with UK North Sea interests and to M&A pricing for North Sea assets. It is also a reference point in the Australian debate on taxing gas resources.
Sources: Bloomberg Tax, 28 October 2026
On the horizon
- Gas reservation. The Senate committee report and Senate vote on the Domestic Gas Reservation package.
- Heritage reform. Consultation on reform of the federal Aboriginal heritage laws, and the Minister's re-determination of the McPhillamys application.
- Queensland objection reforms. The committee report, passage of the bill and the transitional rules.
- Mount Pleasant. Introduction and debate of the NSW bill, and any reassessment of the extension.
- Winchester South. Decisions by the Queensland Resources Minister and the federal Environment Minister.
- Safeguard Mechanism. Outcomes of the 2026–27 review of baselines and decline rates for large emitters.