CSG debate - APSA conference 2013
Transcript of CSG debate - APSA conference 2013
Arjenne Plaizier – University of Sydney, Department of Media and Communications
Paper for the Australian Political Studies Association Annual Conference 2013
Coal Seam Gas and a Social License to Operate – a
transformation needed?
1. Introduction
Coal seam gas (CSG), a process where gas is extracted by drilling a
well through rock strata, has been able to attract significant attention
from politicians, the media, environmentalists and farmers. Although
the industry is relatively new to Australia1, it has quickly grown into a
controversial and emotive issue. Unanswered questions about
environmental impacts, human health, landowners’ rights and industry
regulation have further fired up the debate. Governments have
responded with new regulation, moratoriums, a national partnership
agreement and various reports. The debate about the relevance of CSG
for the Australian economy and the effects of the industry on the
environment has, however, still not settled. CSG companies have been
dealing with strong resistance from environmental groups and
communities and have, as a result, cancelled or suspended several gas
projects2.
1 From 200 cumulative existing wells in 2000 to 3780 cumulative approved wells in 2014 (ABC News Online 2012). 2 For example: AGL’s suspension of the Camden project and Santos’ cancellation of the projects in Parks and New England.
One of the ways the coal seam gas industry has tried to deal with
opposition and legitimize its operations is by negotiating a so-‐called
social license to operate (SLO) from the communities where the
extraction of the gas takes place. Unlike legally binding contracts that
come with specified obligations and conditions, a SLO is an unwritten
social contract that does not necessarily specify the precise expectations
of both sides of the contract. The idea is that the company obtains the
SLO after it has acquired the acceptance of the local community and
other stakeholders for the gas extractions to take place. There are no
specific rules about how a company should demonstrate that it has
received such acceptance. It could either refer to explicit support or to
reduced opposition.
This paper aims to explore the politics of engagement around the
SLO. It will examine the communication strategies that are currently
applied by the CSG industry and will address some of the commonly
made mistakes. The analysis falls into two categories. The first will look
at the issues that need to be addressed. The second part will be
exploring the communication tactics that are required for a meaningful
conclusion of the SLO process.
2. The content of SLO discussions
Discussions and negotiations surrounding the SLO normally cover
an array of topics. This paper aims to make recommendations for CSG
companies about the matters that should be the focus of the SLO
discussions and negotiations. These recommendations are based on the
theory of agenda setting and the concept of priming.
McCombs et al. (1997) argue that there are two levels of agenda
setting. The traditional theory of agenda setting refers to the influence
of the mass media on what the public should be thinking about; issues
that are prominent in the media become prominent for the public. By
making certain issues more salient than others, the media influences
what the public considers important (issue salience). The second level of
agenda setting refers to the fact that the media can also influence how
we look at these issues. Each issue has a number of attributes and
depending on which attributes are reported in the media, publics are
not only influenced on what to think about but also on how to think
about these issues (attribute salience). The issue of CSG has a wide
variety of attributes. CSG explorations affect rights of landowners, water
quality, human health, the local and national economy, employment,
etc. Second level agenda setting for the issue of CSG would look at what
attributes are presented in the media. It would identify the influence of
the media in telling the public how to think about CSG (see Balmas and
Sheafer, 2010). Through both levels of agenda setting, the media plays
an important role in shaping political reality.
The second level of agenda setting comes rather close to the
theory of framing. Framing theory assumes that how we will interpret
any given message will not only depend on what is being communicated
but also on how it is communicated. How the information on any issue is
understood and interpreted will depend on the frame that was used by
the communicator. Both framing and second-‐level agenda setting are
concerned with how issues are depicted in the media, both focus on
most salient aspects (see Weaver 2007). Scheufele (2007) has argued
that both theories have distinct theoretical boundaries and operate via
different cognitive processes and cannot be integrated. Scheufele &
Iyengar (2011) argue that the loose definition of framing has taken away
the focus on the presentation of the facts. Increasingly, informational
and other persuasive features of messages are brought under the
framing umbrella. By including different persuasive elements into the
concept of framing, it is no longer clear what effects are caused by the
presentation of the facts and what effects are due to the persuasive
content of the message. We believe that the influence of the media over
how the public perceives CSG can be better explained through the
theory of agenda setting than framing. The media reports about CSG
seem to focus on very different aspects/attributes of CSG. The effect of
the media reports does not so much depend on the presentation of the
issue but on what attribute of the issue was highlighted.
A concept closely related to agenda setting, is the concept of
priming. By giving more attention to certain issues the media influences
the standard by which governments, policies and politicians are judged.
In other words; the media provides the public with a benchmark by
which it is to evaluate policies and politicians. No policy or politician can
be considered favourably if the benchmark is not addressed or is not
addressed sufficiently.
In order to get a good understanding of what attributes of CSG are
most salient in the media, we conducted a Factiva search for articles
containing "coal seam gas" in either the headline or lead paragraph in
the following newspapers: The Australian, The Australian Financial
Review, The Age and the Sydney Morning Herald. We confined our
search to the period of 1 January 2011 until 1 July 2013 (i.e. a period of
two and a half years). This search query resulted in a little over 1000
articles. We randomly chose a total of 100 articles by analysing each
tenth report. This paper did not aim to compare coverage across these
different newspapers but to capture the general approach in reporting
about coal seam gas. We analysed each selected article by comparing
the content to the list of attributes we had identified earlier3. The results
are attached as Appendix 1. The two main finding are as follows. Firstly,
we can see that at the start of the selected period, the focus of the
reports was about the relevance of CSG to the Australian economy and
the employment it created (see chart 2, Appendix 1). However, at the
end of 2011, we detected a change in the media reporting with another
attribute becoming more dominant; the attribute of
environment/health. This attribute included reports on concerns about
the water supply (including possible contamination and the effect of CSG
on the available quantities of water), the effects of CSG on the
environment (including air pollution), and the closeness of CSG to dairy
farms, vineyards and agriculture land. At the end of 2011, the media
reports on the effect of CSG on the economy and employment almost
disappeared with environment/health becoming the dominant
attribute4. Secondly, the analysis shows that over the selected period of
two and a half years, environment/health was the overall dominant
attribute. It was used significantly more often than any of the other
attributes. This implies that, according to the theory of agenda setting,
people will mostly think about the environment/health when presented
3 Each attribute was coded 0 = not present, 1 = present or 2 = outstanding focus 4 This research will not aim to explain the sudden change that took place at the end of 2011. Further research should aim to confirm this change and could subsequently try to explain it. Such explanation could take into account the effect of the involvement of Alan Jones into the debate. Jones addressed the National Press club with strong anti-coal seam gas arguments on 19 October 2011; around the same time this sample of news articles shows a significant change in the dominant attribute.
with the issue of CSG. The media has made this attribute the most
salient into people’s minds. Following the concept of priming, this means
that communities will benchmark a CSG company against its arguments
and contributions to the environment/health attribute. When a CSG
company engages with a community to obtain a SLO, it will need to
present the community with compelling evidence and arguments about
the effects of CSG on human health and the environment. Companies
cannot simply address these concerns with arguments about other
attributes of CSG (for example through highlighting the economic
benefits of the explorations). This does not mean that there is no point
in presenting audiences with arguments that are linked with other
attributes. On the contrary, this can be very meaningful. However, every
communication strategy will need to have a strong focus on
environment/health. If these would be left out, CSG companies would
essentially neglect to compete in the space that matters the most.
3. SLO and tactics
The second part of this paper aims to come to recommendations
about the communication strategies before and during the process of
the SLO discussions. We will argue that the coal seam gas industry and
the individual companies need to (a) get more involved in the public
debate and (b) have to engage at a deeper level with the Australian
public and with the communities that have been or will be affected by
coal seam gas.
3.a CSG and the public debate
As we have seen above, the mainstream media predominantly
reports on the attributes of the environment/health. These reports are
generally obliging to the anti-‐coal seam gas lobby and critical of the CSG
industry. The other prevalent attributes (land owners rights, community
concerns) are also more aligned with arguments against coal seam gas
extractions. Taylor et al. (2013) came to a similar conclusion:
“The media plays a pivotal role in framing the CSG debate. On
balance, media reporting appears to be more anti-‐CSG than pro-‐
CSG, most likely because this is the side of the debate that makes
a better story and garners more interest. There is also likely to be
far more opportunities to identify negative stories, with the
widespread ‘threat’ of CSG across many communities” (Taylor et
al. 2013, p. 18)
The public debate, through the reports in the mainstream media, does
not seem to have a considerable presence of arguments that put
forward the benefits of coal seam gas. There could be a variety of
reasons for this. Firstly, it may be due to the fact that the dominant
media frame does not fit with the message of the CSG industry (see also
Taylor et al. 2013). News reports that do not resonate with dominant
frames are less likely to be published or have an impact on people’s
perspectives. Secondly, the absence of pro-‐CSG arguments in the public
debate is probably also caused by the nonappearance of the industry in
the public debate. Presidents and CEOs of CSG companies are relatively
unknown and the industry organization has not become a well-‐known,
reputable presence in the debate either. Most of the efforts of the CSG
industry seem to take place outside the public’s view and thus cannot
become part of the public debate. This strategy does not fit well with the
strategies employed by the opponents of CSG explorations. Their tactics
have been very visual, well reported and their message is affixed in the
public debate. If the CSG industry seeks to influence the public debate, it
needs to aspire a more prominent place in it. It should care about the
fact that the public debate about CSG is not complete: the arguments of
the industry are, as it stands, not sufficiently represented.
3.b CSG and engagement with communities
As mentioned above, this paper is interested in the politics of
engagement around the issue of CSG, including the engagement with
affected communities. Community engagement is currently parked in
the SLO process. Amongst academics there is some scepticism about the
concept of a SLO and the motive for engagement. Owen and Kemp
(2013) argue that although the SLO has increased the awareness that
companies need to pay attention to stakeholders, there is a link
between the idea of a social licence to operate and the industry’s
survival instinct. They are of the opinion that it is merely a company’s
response to “disguise or silence” opposition and that there is no real
intention to properly understand concerns of communities or to build
long lasting relationships. Others have taken a more positive and
constructive stance towards the concept of an SLO. Nelson and Scoble
(2006) used mining industry surveys to identify success factors for
earning a social license. These factors include maintaining a positive
corporate reputation, understanding local culture, educating
stakeholders about the project and ensuring open communication
among all stakeholders. Despite some differences in approach and
opinions amongst scholars, there is agreement that open
communication between the parties involved is beneficial for the SLO.
Either because it is essential for the SLO to succeed (Nelson and Scoble,
2006) or to get a better understanding of the expectations of the
community involved (Owen and Kemp 2013).
We will argue that open or two-‐way communication will be one of
the strategies to address the overarching concern of trust, or lack of
trust between the various stakeholders in the debate. The
Commonwealth Scientific and Industrial Research Organisation (CSIRO)
argues that trust plays a critical role in facilitating a social license to
operate. The Chief Scientists & Engineer of NSW, Professor Mary O’Kane
has given trust a central role as well. Her report identified the issue of
trust as one of the biggest concerns surrounding the CSG industry (NSW
Chief Scientist Report 2013 and ABC Lateline 2013). Taylor et al. (2013)
mention the following regarding trust:
“Trust, or lack thereof, lies at the heart of much of the CSG debate
and has the potential to thwart attempts to ease community
concerns about any issue (..). There is evidence of a severe lack of
trust from parts of the community in relation to the lack of proper
data and evidence, beliefs of biased data and a distrust of proper
regulation methods (and ‘keeping promises’), trust in the science,
in the government and politicians, trust in the operators, and
social trust.”
This paper aims to identify communication techniques that could
address the issue of lack of trust. Mayhew (1997) argues that the system
of trust between the communicator and the publics receiving the
communication can only stay intact if publics are provided the
opportunity to demand clarification, specification or evidence of claims
and arguments at two-‐sided public forums. This idea of two-‐way
communication has not been sufficiently developed by CSG companies.
The current strategies seem to be aimed at minimizing risks and less on
developing genuine, trust based relationships with its stakeholders.
Most companies rely on their (one-‐way) PR or media relations strategies
to communicate with their target publics. These one-‐sided tactics do not
give target audiences the chance to ask questions or request clarification
and evidence. The tactics used by most CSG companies do not only fail
to address concerns of target publics, they also risk fueling distrust and
can damage the reputation of the industry. Paterson (2013) makes a
similar argument where he posits that CSG companies should strive for
transparency for their own benefit. Methods that are based on denial,
defense and deflection will not be in the best interest of the company
whereas transparency builds credibility and trust.
Most CSG companies have dedicated considerable attention to
their websites. They are visually appealing and contain links to
information about the company and the industry. Their websites do not
seem to be aimed at engagement. Although websites play an important
role in the one-‐way communication tactics of organisations, they can
also serve as a starting point of discussions and conversations (for
example through links with social media or the creation of discussion
forums). However, four large CSG companies that operate in Australia
(Arrow, Santos, AGL and Origin through Australia Pacific LNG) have not
exploited that possibility sufficiently. Most parts of these websites
contain static web content with a large collection of facts, figures and
scientific research about CSG but do not aim for engagement.
Santos’ website has a section called “Community Blog”. Despite
the impression the name of this section might give, the blog is solely
used to post articles and news in favour of the industry and company.
The posts have not been able to generate any debate amongst the
visitors of the website5. AGL has a section called “Online Community”.
Participation in this section requires previous registration with AGL and
contains a similar style of posts as Santos’ “Community Blog”. None of
the posts are critical of the industry; none of the posts have been able to
generate comments. Arrow has probably made some better use of its
website. It shows how it has engaged with communities in the past. The
section on community engagement provides information on previously
held community meetings, the questions that were asked and the
responses given by Arrow. It is a good resource for communities to get a
better understanding of the process of extracting coal seam gas.
Although the company has an online engagement policy6, the website
does not have any links to spaces where such online engagement could
take place. The overall conclusion is that the websites are primarily used
5 Santos has a portal dedicated to providing up to date information (including results of sample testing of groundwater level monitoring, groundwater quality monitoring and surface water monitoring for areas close to Santos’ mining activities (http://www.santoswaterportal.com.au/water-monitoring-map.aspx [Accessed 20 September 2013]) 6 http://www.arrowenergy.com.au/__data/assets/pdf_file/0013/2326/117508_Arrow_Energy_Online_Engagement_Policy.pdf [Accessed 18 September 2013]
as one-‐way communication tactics. The lack of interest to participate or
comment (if and where possible) proves that this kind of tactic is not
able to attract visitors or interest in the content of the website. The
websites’ main function seems to be to provide information that puts
the industry and the particular company in a positive light. That alone
will not be enough to convince the Australian public and affected
communities. People, particularly those who are politically engaged,
rarely change their minds based on facts, even if they are presented by a
credible source (Keohane 2010). Paterson (2013) has made a similar
observation. He argues that CSG companies have to change their
communication strategies because “hearts and minds will not be won by
facts alone”. One-‐way communication tactics that are solely focussed on
providing information will not be able to swing opinion in the favour of
the CSG-‐industry.
Due to the mainly one-‐sided communication techniques, some
dissociation between the communication by CSG companies and the
public’s concerns has come to exist. With dissociation we mean that the
communication of the CSG companies fails to understand and address
publics’ concerns and issues. CSG companies should give more weight to
two-‐way communication like community meetings and forums7 but also
by making better use of the various online discussion forums and social
media8. CSG companies have so far taken a rather cautious approach. If
their communication tactics include online elements, these usually
7 Through the use of these tactics they can gain credibility and trust of the respective communities (see also Agyeman et al. 2007). 8 Natural Coal Seam Gas (www.naturalcoalseamgas.com.au) has a twitter feed on its website. The feed is however, dominated by tweets from the organization itself. The link “join the conversation” leads to a closed twitter account of a person who works for the Australian Production and Petroleum Association (APPEA).
mirror the ones that are deployed offline and are mostly used for
marketing purposes (see also Mullard 2010). This is understandable,
since the industry has learned that managing stakeholder relations can
be a delicate affair. The introduction of online communication tactics is
probably perceived as losing even more control of that already fragile
process. However, the public’s perception on how to use and engage
with information has changed. It has grown accustomed to the idea of
open, two-‐way communication through the use of social media, blogs
and other interactive platforms. Furthermore, the industry’s opponents
have not only used the Internet to connect and organize, it also serves as
one of their most effective communication tactics. A communication
strategy that refrains from competing in a sphere that has been so
effective for the anti-‐CSG lobby cannot be successful. We argue that CSG
companies should explore the opportunities of using the Internet for
two-‐way communication with their stakeholders. This is one of the ways
they could build trust and come to a mutual understanding of concerns
and issues.
4. Conclusion
This paper focused on the politics of engagement around the issue
of CSG. It first tried to come to recommendations about the issues that
need to be address by the CSG-‐industry. The analysis shows that the
selected media outlets reported mostly on the attribute of
environment/health. This attribute has been made most salient in
people’s minds when thinking about CSG. The Australian public and
communities will benchmark the CSG industry and its opponents against
the arguments they make about these attributes of CSG. The public
debate about CSG is currently dominated by the arguments of anti-‐CSG
lobby. The industry needs to start seeking a stronger presence in the
debate and contribute to the environment/health attribute. The industry
organization and company leaders need to become more visible. If the
industry does not seek a place in the debate, it cannot expect the public
opinion to swing in its favour. Finally, we addressed the engagement
between companies and their stakeholders. The SLO – with its
community engagement – is able to attend to community concerns and
the lack of trust between parties concerned. CSG companies should
however not assume that the SLO or the current practice around the
SLO is all it needs for its projects to succeed. As we have seen above,
many of the communication tactics employed before and during the SLO
are one-‐way communication tactics. These tactics are less effective for
the purpose of influencing public opinion or building trust. CSG
companies should further explore the use of two-‐way open forums and
the Internet to implement new possibilities of engagement. As
commented by Tim Duddy (farmer and anti-‐CSG activist) a sustainable
growth of the industry will require a “complete metamorphoses of the
practices” that have been put in place (ABC Lateline 2013). We
recommend the industry to start working on such a metamorphoses.
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