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Western Australia Premier Colin Barnett said that while 95% of the issues had been agreed on, the plan could fall apart if the outstanding issues relating to the benefits package for the traditional owners were not settled.
"My fear is that if we cannot finalise this agreement literally over the coming days, there will be no deal, there will be no LNG precinct and there will be no benefits," he said yesterday.
He added that if the hub at James Price Point did not go ahead, Woodside, Shell, Chevron and other companies with gas in the Browse Basin could opt for floating LNG developments that would provide no benefits to the Kimberley or Western Australia.
Kimberley Land Council chief executive Wayne Bergmann said that while there had been a "change of dynamics" in the negotiations, there were still issues to be resolved, in particular with Woodside.
Barnett also appears to have ruled out compulsory acquisition of the site, despite his repeated threats to do so, saying that it had become apparent the project would have no proponent if an agreement was not reached.
He added that WA had already lost the $15 billion Ichthys gas project to Darwin and that no one would look seriously at a project in the Kimberley if an agreement could not be reached.
"The Kimberley has high levels of unemployment, limited work opportunities, issues of education, health and housing," Barnett said.
"If this project and maybe other LNG projects can be secured for the Kimberley, there is a chance to substantially and permanently improve the condition of Aboriginal people and indeed improve the wider Kimberley area."
Meanwhile, the Australian reported that federal Resources Minister Martin Ferguson was pushing for the quick approval of a single site at James Price Point despite Environment Minister Peter Garrett pushing for a full environmental strategic assessment of the region to determine an environmentally friendly location for a "gas hub".
The KLC will meet traditional owners on April 15 to work out a final agreement that is acceptable to them.
