Woodside's gas project extension faces court challenge over alleged ministerial bias

A landmark legal battle is unfolding in Australia's Federal Court over the 40-year extension granted to Woodside Energy's North West Shelf gas project. The approval, given by Federal Minister for the Environment and Water Murray Watt last year, is now facing intense scrutiny from environmental groups, who allege "apprehended bias" in the decision-making process.

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An extraordinary amount of engagement between Mr Watt's staff and Woodside ensured the company received a workable solution.

Lawyers representing the Friends of Australian Rock Art (FARA) and the Australian Conservation Foundation (ACF) are arguing that a significant volume of communication between Minister Watt's staff and Woodside Energy created an environment where the company received a "workable solution." ACF barrister Angus Scott KC contended that nearly 200 text messages and emails exchanged between the minister's office and the oil and gas giant could lead a reasonable observer to believe the decision was pre-judged. Justice Catherine Button noted the "chumminess or cosiness between the department and Woodside" as suggested by the ACF's claims.

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Let's wait till [the] current matter is cleared and then we'll move onto the next thing!

Evidence presented to the court includes communications where a government official discussed "environmental law reform" with a senior Woodside executive, who replied, "Let's wait till [the] current matter is cleared and then we'll move onto the next thing!" Another message from a Woodside representative celebrated the conclusion of negotiations: "Thanks Rachel! We got there!" FARA's legal team argued that Minister Watt's "closed mind" led him to "cherry-pick" economic benefits like jobs while ignoring counterarguments. Barrister Sashi Maharaj KC even suggested the minister "copy and pasted" a summary of benefits provided by Woodside consultants into his official reasons.

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Thanks Rachel! We got there!

Representing the minister, Stephen Lloyd SC defended the decision, stating that Minister Watt was unlikely to have been aware of "innocuous" messages sent by junior staff. He highlighted that the minister had indeed imposed 48 conditions on the approval, amending them after Woodside warned the initial proposal would "amount to a refusal." Woodside's barrister Damian Clothier KC argued these concessions demonstrated Woodside's persuasive efforts rather than ministerial bias. Lloyd also noted that the minister disagreed with Woodside's stance that industrial emissions do not harm sacred Indigenous rock carvings near the project site.

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Cherry-picked the North West Shelf's economic advantages, such as jobs, and neglected counterarguments.