A gas company that won $21m in grants to frack in the Beetaloo Basin paid for a charter flight for the head of a Liberal party fundraising body to inspect its operations alongside the energy minister, Angus Taylor, documents handed to a Senate inquiry show.
A Senate inquiry into fracking in the Beetaloo Basin has been examining a grants scheme designed to incentivise exploratory drilling in the region as part of the Morrison government’s gas-led recovery.
Empire Energy has been one of the main beneficiaries of the scheme, last month winning three grants to explore the Beetaloo Basin.
The inquiry has heard that Empire donated to both major political parties and that its chair is Paul Espie, a frequent Liberal donor who has previously been described in parliament as a doyen of the Liberal party.
Empire’s managing director, Alex Underwood, responding to questions by Greens senator Sarah Hanson-Young, told the Senate last month that the connections between the companies, Espie, and the Liberal party played “no role whatsoever in our applications for these grants. We follow due and proper process at all times.”
In October last year, Empire Energy organised for Taylor, the member for Hume in New South Wales, to visit its first Beetaloo well in the Northern Territory, paying for a “return charter flight and hospitality” for the minister, the inquiry has heard.
Also on the flight was the chair of the Hume Forum, Ryan Arrold, according to an attendance list provided to the Senate inquiry.
The Hume Forum is a Liberal party entity designed to help raise funds, typically by hosting events, similar to the Federal Forum and the now-defunct Millennium Forum.
Sources who have attended Hume Forum events confirmed to Guardian Australia they are used to raise funds for the party, and donation records show the Hume Forum has contributed $180,000 to the federal branch, all in 2018-19.
It is still not clear why Arrold was on the flight and the Guardian does not suggest any impropriety by him.
Empire Energy told the Guardian it invited him because it had learned that he was in Darwin.
“We were aware Mr Arrold was in Darwin and we were happy to extend an invitation for him to visit our operations,” the company said.
Taylor’s office said it did not invite him.
“Ryan Arrold was a guest of Empire Energy and not invited at the request of Minister Taylor,” a spokesperson said.
Arrold could not be reached for comment.
The night before the charter flight, the Country Liberal party held a fundraising dinner in Darwin, which Empire representatives attended, but did not help organise, according to documents tendered to the Senate.
The resources minister, Keith Pitt, rather than Taylor, is the minister responsible for the grants, which were awarded through the $50m Beetaloo Cooperative Drilling Program.
But freedom of information documents obtained by environmental group 350.org Australia show that Empire, three months after the NT trip, approached Taylor’s office seeking more information about the grant program.
“Just before Christmas we discussed the Beetaloo grant program,” an unidentified staff member of Empire wrote to Taylor’s office. “Have you been able to identify the eligibility criteria and application process? Or could you please put me in touch with someone in Minister Pitt’s office who may be able to assist?”
The Senate inquiry heard that Empire executives met with Taylor again on 10 March. The grant guidelines were announced later that month. Underwood previously told a Senate inquiry that the meeting was not designed to seek “any kind of influence over the process”. Empire’s managing director also denied suggestions that the company’s connections with the Liberal party helped it obtain the grants.
“They played no role whatsoever in our applications for these grants. We follow due and proper process at all times,” he said.
The Department of Industry, Science, Energy and Resources told the inquiry it was not aware of any relationship with the Liberal party prior to media coverage. It did not advise Pitt of any conflict of interest concerns as “no grant applicants or advisory committee members declared any actual or perceived conflicts of interest”.
The department said the Empire grants met eligibility criteria and were recommended by an assessment committee.
The government insists the grant program has only given money to companies that “possess the highly specialised skills to meet the challenges of developing the basin as determined by an expert assessment panel”.
When asked about the Empire grants last month, Pitt slammed what he described as “propaganda” from activists.
“Australians should be wary of the propaganda spread by these activists and the nonsense they peddle,” he said. “Australia has a strong record when it comes to reducing emissions. They’re down 20% on 2005 levels, well ahead of New Zealand, Canada and the US, and on track to easily meet our 2030 Paris targets.”
The Greens leader, Adam Bandt, said fracking in the basin would also unleash 34bn tonnes of climate pollution.
“We’re in a critical decade for climate action and public money should not be going to big gas corporations for new projects,” he said.
Corporate transparency group Publish What You Pay Australia has been scrutinising the companies seeking to frack in the Beetaloo Basin.
Its national director, Clancy Moore, previously told a Senate inquiry that two other companies seeking to explore in the region, Sweetpea Petroleum and Falcon Oil and Gas Australia, were both linked to tax secrecy jurisdictions.
“I would strongly urge the commonwealth not to be giving public money to companies with opaque ownership and worrying concerns around the ultimate owners, such as Falcon Oil and Gas,” he said.