Coca Cola and Corporate Water Extraction and Abstraction Issues in Western Australia

Written and researched by Martine Shepherd for the Hon. Sophia Moermond

Coca Cola Europacific Partners obtained approval from the City of Armadale in 1992 for Water Extraction from ‘unproclaimed’ fissure bores (spring water) on a private property on the Perth escarpment at Karragullen.

Private bores on agricultural land are classified as ‘water extraction’, as excess / over watering of fruit trees and vegetable crops which provides self replenishment by water seepage into direct substrate layers. ‘Water abstraction’ is the means of partial or total removal or diversion of water from its original natural environment, thus leaving a measurable decrease in water availability in the natural water systems, possible water table lowering and the consequential impact on the surrounding environment. Water is also classified as ‘Green Water’ - direct Rainfall and ‘Blue Water’ - ground water and aquifers traditionally used to water crops and used in Agriculture and small (managed) usage in rural and remote communities. An online article identified this most precious resource, “Blue water is much more susceptible to overuse; in particular, groundwater, according to one study, is effectively nonrenewable, because it can take centuries for aquifers to replenish once they are depleted, particularly in arid areas without significant rainfall.”

The WA State Government defines Proclaimed Water as;

“A legal process that allows the Department of Water and Environmental Regulation to regulate the taking of water in certain areas under the Rights in Water and Irrigation Act 1914.

Proclamation is a legal process that makes managing water resources the Department of Water and Environmental Regulation’s responsibility. In proclaimed areas, under the Rights in Water and Irrigation Act 1914, it is illegal to take water from a watercourse or groundwater aquifer without a licence or a conferred right (e.g. exemption, riparian right).”

Unproclaimed Water is not defined on the WA State Government Department of Water and Environmental Regulation, nor is monitoring outlined or required.

There are three types of ‘Groundwater’;

‘Unconfined aquifer’ (also referred to as a 'superficial' or ‘non-artesian’ aquifer) is the aquifer nearest the surface, having no overlying confining layer.”

‘Confined aquifer is an aquifer lying between confining layers (such as clay, coal or rock) containing water under pressure.’

‘Artesian aquifer is a confined aquifer under hydraulic pressure that causes water levels to rise naturally to the ground surface. In all areas of the State, the use of artesian water is only permitted by the approval of a groundwater licence.”

Reviewing this information it seems the numerous locations that Coca Cola and other companies are ’abstracting’ not ‘extracting’ from unconfined spring water bores (fissures that are unproclaimed) are on rural blocks in predominantly agricultural zones where water usage can not be monitored and measured.

The issue of permanent removal of water from the Perth Hills areas has been raised by residents for many decades, with no change resulting from concerns about reduced water flow in the Perth Hills jarrah forests and water tables dropping. Each year water restrictions and water resource conservation is of major concern to residents, primary producers and orchardists.

There have been numerous requests to Coca Cola to disclose the area they claim water ‘replenishment’ is carried out to counteract the ‘abstraction’ process in the Perth area, but they have failed to respond and act transparently or disclose any locations to concerned groups.

Local groups and individuals have taken the initiative to investigate and question why these corporations are continuing to be permitted access to vital water systems that endanger the viability of natural water systems in the Perth Hills in light of the ongoing drought and reduced precipitation in WA.

Meetings with residents, stakeholders, Government representatives and Parliamentary members have taken place and are ongoing. Petitions have been put together that are signed by over 10,000 residents to STOP Coca Cola Amatil from extracting (abstracting) water for bottling and exporting around the world.

May 31st saw the Minister for Water Simone McGurk announce Coca Cola had voluntarily agreed to suspend water ‘abstraction’ not extraction from ‘’a single bore” rather than all bores in the Perth Hills reported in known areas of Martin, Roleystone, Kalamunda and further unknown locations. The lack of proactive measures by current and past Ministers for Water in WA indicates ongoing trends toward allowance of corporations to have access to large scale abstraction but pay nothing for water usage. As a ‘multi-national’ corporation the impact they alone are having on natural water systems in Australia and worldwide with little to no responsibility or accountability for environmental impact can be seen as ‘resource exploitation’.

It is reported that Coca Cola uses 300 billion litres of water per year in an online article published in 2007 by Pumping Solutions, UK. This article quotes “In 2007, it was reported that Coca-Cola had been draining communities of their own water supply for use in its plants, resulting in water poverty for communities in regions such as Uttar Pradesh which is reliant on seasonal rainfall for their water.” So in a worldwide trend, there seems to be immense impact from corporations like Coca Cola, mining corporations and industrialisation to exploit water as a natural resource to the detriment of entire communities and natural systems. The following brands are all manufactured by Coca Cola; Sprite, Coca-Cola Zero, Diet Coke, Fanta, Powerade, Dasani, Fuze Tea, Minute Maid, Simply, Georgia, and Del Valle.

Worldwide statistics shows almost 20% of worldwide freshwater extraction comes from industry and energy and should consumption patterns not change, there will be a 40% shortfall in available ground water supply by 2030 (as stated by the United Nations).

In consideration of drying conditions in Western Australia and the very slow rate of natural replenishment of ground water systems, both closed and open ground water systems, a thorough review and long-term sustainable framework open to modification and adjustments in changing conditions needs to be adopted. Both long- and short-term management of Water as a Resource is required to manage corporations and industries that have clearly used ‘abstraction’ rather than ‘extraction’ and have potentially contributed to dropping water tables in neighbouring bores throughout the Perth Hills region.

It is now time to critically review the processes that have led us into this situation where Coca Cola continues to threaten ground water systems in Perth, have contributed to tree and natural vegetation death and put neighbouring orchardists and agricultural practices at risk. Coca Cola should be stopped from removing unlimited groundwater from ‘all bores’ in the Perth Hills as it is ‘Abstraction’ not ‘Extraction’. The Australian Taxation Offices clearly defines ‘agricultural land use’ including the purpose of dams, bores and ‘extraction’ (of bore water) for the purpose of agriculture, not for purpose of ‘abstraction’ on bores that is ‘agricultural land use’.

The Minister for Water and the Department of Water that overseas and is responsible for licenses and approvals under the Rights in Water and Irrigation Act 1914 should always have the right to change the terms, conditions and status of licences validity in light of decreasing rainfall and that licenses on these properties is usually reserved for ‘Agricultural’ purposes.

This situation is not isolated in Western Australia, the communities of Gelorup and Stratham near Bunbury have reported a dramatic drop in bore water levels from the impact of the Main Roads Department taking too much ground water for the ongoing construction of the ‘Outer Ring Road By-pass’ around Bunbury. It has been reported by residents of more than thirty years in Stratham, the same bore they have always used now have no access to water as the level has dropped so low. Additionally upgrades and modifications required to numerous intersecting roads that have required ‘vast’ amounts of water usage which are being carried out by ‘different section’s of the Main Roads Departments and perhaps these different projects have not been pooled together to clearly show the true measure their water extraction volumes have had during drought conditions. Considering that there is a Desalination plant in this region, why was this water not used rather than continual use of bore water placing entire communities, forests and natural habitats at risk?

An investigation into how Main Roads was allowed to remove a vast amount of groundwater and place homes, livestock and businesses without access to water in areas around Bunbury should be conducted and better resource practices put in place.

Another coastal community Kalbarri, which is known for its wild and natural beauty in the mid-west of WA is also seeing major water issues. Residents are reporting that one mine in particular has not been doing the right thing in water management, with usage, recycling and monitoring and local farmers and residents have experienced a significant drop in bore levels over the last year, causing great concern for livestock and feed production. Residents in the town of Kalbarri are reporting residue magnesium flakes on lawns after watering with bores, indicating that the fresh water table has dropped and now salt water from the ocean is seeping into underground water systems and bores. The town is fully reliant on fresh water aquifers and should these current ground water bores become un-potable then nearby new aquifers may be required to sustain the lifeline of the town and community.

This brings the discussion to so called ‘green renewable’s’ projects proposed for the area north of Kalbarri by Copenhagen Infrastructure Partners as the Murchison Hydrogen Renewable's, who want to have access to this pristine and vital Aquifer for mining and creation of Liquefied Green Ammonia plant, that is highly toxic.

The construction of road systems and the immense amounts of concrete required in construction alone would greatly impact vital ground water availability to the region. The plan to allow another ‘foreign corporation’ to exploit this pure water for the production of Liquefied Green Ammonia (not so green article https://theconversation.com) is more than questionable in these drying conditions and ongoing depletion of groundwater. Liquefied Green Ammonia is so toxic that at 1 part per million can kill massive areas of aquatic systems in the Murchison River and pristine coral reefs that are habitat to lucrative WA Rock Lobster industry.

“Some estimate ammonia supply chains leak it into the environment at rates as high as 6%. However, research is limited. More widely understood natural gas supply chains may provide a ballpark figure of around 2.6%” (https://theconversation.com) Should this toxic liquid enter this pristine aquifer, this would compromise the entire town and region of Kalbarri, as there is no way to mitigate this toxin in water systems.

Approving Licences that allow corporations to place natural systems at risk is a direct contravention of the Department of Water and Environmental Regulation to regulate the taking of water in certain areas under the Rights in Water and Irrigation Act 1914.

In assessing the major, long term and irreversible impact and damage that Liquefied Green Ammonia could have on such a vital Artesian water source, should it be contaminated and exploited, then it puts into question not only the feasibility of such a risky venture, but why such extreme risks are being supported through large grants given by the Federal Government, how the EPA and Minister for Water could allow licenses to these energy production industries. The loss of essential water to such an arid and water poor region of WA would create change in culture, industry and community and residents of Kalbarri, should Copenhagen Infrastructure Partners and the Murchison Green Hydrogen project be granted access to vital Aquifers essential for the sustainability of the region, this could potentially devastate the entire region of Kalbarri.

From decades of historical scenarios and the current future plans for foreign corporations to have unlimited access to our most precious resource in Western Australia, the continuing bias allowing corporate exploitation of pristine water systems is evident and failing to protect our vital water resources. Reevaluation of how corporations, especially foreign owned have been allowed and are still receiving licenses to exploit water to the detriment to natural systems and communities is under the spotlight worldwide. It is essential that the protection and preservation of pristine water systems for future generations of Australians, to ensure sustainable communities be paramount in planning for the future from the Ministers of Water both state and federally.

References

https://waronwant.org/news-analysis/coca-cola-drinking-world-dry

https://www.pumpingsolutions.co.uk/blog/coca-colas-water-sustainability-responsibility/

https://www.motherjones.com/environment/2021/06/foreign-companies-export-virtual-water-american-drought-southwest/

https://www.swtimes.com.au/news/south-western-times/gelorup-residents-are-considering-legal-action-against-main-roads-for-robbing-them-of-their-waterc-13257133

https://www.capel.wa.gov.au/publicnotices/gelorup-water-bores-and-tree-decline-dwer-faqs/42

https://www.bunburyherald.com.au/news/south-western-times/a-south-west-community-has-trees-dying-en-masse-around-the-region-with-locals-desperateto-know-why-c-13827485

https://www.wa.gov.au/system/files/2022-11/Capacity-of-water-resources-in-the-Mid-West.pdf

https://www.mainroads.wa.gov.au/globalassets/projects-initiatives/projects/regional/bunbury-outer-ring-road/bunbury-outer-ring-road-map.pdf?v=4a4afa4

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