Underground water

The extraction of underground water by resource tenure holders can result in a lowering of water levels in adjacent aquifers. This may impact upon water bores and natural springs in the surrounding area, as well as other environmental values. The level of impact will vary depending on the:

  • aquifer that each water bore is tapping
  • degree of interconnection between the aquifers and springs
  • distance from the resource activity, and
  • time since the start of resource extraction.

Resource operators have the right to take associated water under the Minerals Resource Act 1989, Petroleum and Gas (Production and Safety) Act 2004 and the Petroleum Act 1923 as a necessary activity in the process of extracting the resource.

Chapter 3 of the Water Act 2000 (Water Act) provides the framework for managing impacts on underground water that are associated with resource activities.

A Quick Guide — Make Good Obligations — ESR/2016/2681 has been prepared to explain how impacts on landholder bores are identified and addressed. It also contains information about make good measures and the process for resolving complaints and disputes.

    Underground water management framework

    The Water Act underground water management framework:

    • provides for the chief executive to declare cumulative management areas (CMAs)
    • requires resource tenure holders to undertake baseline assessments of water bores
    • requires resource tenure holders (outside of a CMA) to prepare baseline assessment plans (BAPs)
    • requires resource tenure holders to prepare underground water impact reports (UWIRs)
    • establishes make good obligations for resource tenure holders—including the requirement to undertake bore assessments and enter into make good agreements
    • establishes the Office of Groundwater Impact Assessment (OGIA) to oversee the groundwater impacts of the resource industry.

    Baseline assessments

    A baseline assessment is an assessment of a water bore undertaken by a resource tenure holder to obtain information about the bore, including:

    • the level and quality of water in the bore
    • historical water use
    • how the bore is constructed
    • the type of infrastructure used to pump water from the bore.

    Baseline assessments of water bores are required in areas where production testing, production or mining has started. They are intended to help with any potential ‘make good’ agreement requirements in the future.

    The guideline Baseline assessments—ESR/2016/1999 (formerly EM1088) provides both resource operators and bore owners with more information.

    Baseline assessment plans

    A baseline assessment plan (BAP) is prepared by resource tenure holders, to plan the undertaking of baseline assessments. A BAP must be submitted before production testing or production first starts. A BAP must include a baseline assessment timetable which outlines dates for completing all baseline assessments.

    Tenure holders within a CMA are not required to prepare a BAP, as baseline assessments within a CMA are assigned as part of a CMA UWIR. The guideline Baseline Assessment Plans ESR/2016/2004 provides resource tenure holders with more information on how to prepare a BAP.

    Underground Water Impact Report

    An Underground Water Impact Report (UWIR) is prepared to model, make predictions and manage the impacts of extraction of underground water by resource tenure holders.

    An UWIR assigns responsibility to resource tenure holders and ensures measures and programs are in place to respond to impacts on underground water.

    The key elements of an UWIR are:

    • projections of potential future water level impacts
    • a comprehensive water monitoring strategy
    • an evaluation of impacts to environmental values due to the exercise of underground water rights
    • a spring impact management strategy

    Before submitting an UWIR to the department for assessment and approval, public consultation must be undertaken on the draft UWIR. This involves publishing a notice about the proposed UWIR, and giving a copy to each bore owner located within the area to which the UWIR relates.

    You can view the UWIRs which have been approved by the chief executive under section 385 of the Water Act.

    Cumulative management area (CMA)

    Under the Water Act, a CMA can be declared if an area contains two or more resource tenures, and where there may be cumulative impacts on groundwater resulting from water extraction by the tenure holders.

    Declaring a CMA enables assessment of future impacts using a regional modelling approach and the development of management responses—such as monitoring programs—that are relevant to the potential cumulative impacts. It also enables responsibilities to be assigned, through the approved UWIR, to each tenure holder in the area for monitoring, bore and baseline assessments, and negotiating make good arrangements.

    A CMA is declared by the chief executive of the department under the Water Act.

    The rights of bore owners within a CMA are not affected by the declaration. If a private water bore has or is likely to have an impaired capacity within or outside the CMA as a result of water extraction by resource tenure holders, the resource tenure holder is obliged to make good that impairment.

    The Office of Groundwater Impact Assessment

    The management of groundwater in CMAs is overseen and coordinated by the independent Office of Groundwater Impact Assessment (OGIA).

    For each CMA, the OGIA is required to produce an UWIR which will include:

    • a prediction of impacts on water levels
    • a water monitoring program
    • a spring impact management strategy
    • a baseline assessment strategy which assigns individual resource tenure holders to undertake baseline assessments in the area
    • an assignment of responsibilities to individual resource tenure holders to undertake water management activities in the area.

    The OGIA will consult with resource tenure holders, bore owners and the public on the development of an UWIR for the CMA.

    Surat Cumulative Management Area

    The Surat Basin and the Southern Bowen Basin contain a range of resource activities. The Surat CMA was declared in 2011 (PDF, 17.8KB) after consideration of:

    • the location of petroleum and gas operations
    • the geology of the area
    • the potential for interconnectivity between aquifers in the area
    • the cumulative impacts of water extraction by petroleum tenure holders.

    In December 2016, the underground water management framework in the Water Act was expanded to include mining tenures.

    In January 2020, the Surat CMA was amended to include coal mining tenures located within the Surat and Clarence Moreton basins.

    The amended CMA was declared after consideration of:

    • the location of coal mining operations
    • the cumulative impact of water extraction by petroleum and mining tenure holders.

    Transitional provisions for existing mines no longer apply when the tenure is in a CMA.

    The current UWIR for the Surat CMA (was approved on 11 March 2026 and took effect on 1 May 2026. You can view the approved Surat UWIR.

    Additional information about the Surat UWIR can be found on the OGIA’s website.