Managing director Alex Underwood appeared alongside climate activist and progressive think tanks including The Australia Institute, the Australia Youth Climate Coalition and federal and Northern Territory environment department representatives. 

The committee noted a subsidiary of Empire, Imperial Oil and Gas, had received A$21 million in funding from the federal government to accelerate its three well development campaign in its fully-owned EP187. 

Greens senator Sarah Hanson-Young asked Underwood why the company applied for the funding when the next stage of the development was still going through Northern Territory environmental approval processes. 

Empire was awarded the funding in July as part of the Beetaloo Cooperative Drilling program, designed to ramp up drilling and development in the Northern Territory, with Underwood noting there was no requirement in the grant application process for projects to be approved to be eligible for funding. 

"These projects have very long development times, so we need to plan accordingly, which is why we applied for the funding," Underwood said. 

The inquiry also heard Empire executives met with federal energy minister Angus Taylor on March 10 in Sydney before the grant guidelines were released later that month, with Underwood flatly rejecting questions on if there was any discussion around the terms of the grant.  

"From memory, I may have told the minister that I believed it was a good policy and that it might incentivise an acceleration of activity," he said. 

"But I can assure you there was no mention of seeking any kind of influence over the process."

Taylor visited the Carpentaria-1 drill site in October last year with company chair and chair of the Liberal-aligned Menzies Research Centre Paul Espie, alongside company shareholders, with a dinner held later that night 

Underwood noted Empire had paid for the chartered flight between Darwin and the drill site, but not for Taylor's flight from Canberra or for accommodation. 

Underwood denied Espie's connection with the Liberal Party had any influence on being selected for the grant. 

"We follow due and proper process at all times," he said. 

Empire was asked about the potential job creation benefits that the company would support in the Beetaloo region, with Underwood emphasising the early-stage nature of the company's development, with the funding going towards additional seismic acquisition and the three wells to be drilled across 2021 and 2023. 

"We are a team of eight but our work programs ramp up to employ around 50-60 people," he said. 

Empire was also asked about its approval process in regard to receiving consent from traditional owners. 

Underwood noted the company was awarded EP187 years before he joined the company in 2018 but said the company had worked extensively with the Northern Land Council, which acted as a conduit between the company and traditional owners. 

He also highlighted permission was sought from traditional owners to acquire the adjacent permit, EP188, which was rejected. 

"I think it's important to draw attention to the fact that informed consent can be given, and it can not be given," he said. 

Gas development in the Beetaloo Basin has the support of the Northern Territory government and the federal Labor opposition, with shadow resources minister Madeline King telling APPEA 2021 that it would provide crucial jobs and investment in the region.  

Progressive think tank The Australia Institute argued in its submission that developing gas reserves in the Territory was unpopular and uneconomic. 

It pointed to a study commissioned by the federal Department of Industry, Science, Energy and Resources that explored producing up to 1200 petajoules a year in the region, which found field costs would need to be less than A$5 per gigajoule, while costs over A$7-10/GJ would need ongoing public subsidies. 

It also raised a study commissioned by the NT Fracking Inquiry led by Judge Rachel Pepper in 2018, which found an onshore gas industry could be implemented safely and provide jobs for the region, but only if its safeguard recommendations were fully enforced. There were 135 in total. 

The Australia Institute argued that recommendations of the Pepper Inquiry are not being implemented in the way they were intended.  

"This is of importance to the Committee, as without these recommendations in place would be contrary to the Pepper Inquiry and NT Government policy," the submission authors wrote. 

The Inquiry is expected to publish an interim report on August 24.