Millions of dollars promised by the Morrison government for Northern Territory Traditional Owner talks about Beetaloo Basin oil and gas production has not been received, a Senate inquiry has been told.
The basin is one of five gas fields the government plans to develop to support exports and manufacturing, under its "gas-led recovery" from the COVID-19 pandemic.
It has caused concern among many Territorians, who fear it would not only jeopardise efforts to meet the nations's emissions reduction target but also contaminate groundwater.
Northern Land Council manager Greg McDonald says he heard the federal government would provide more than $2 million for on-Country consultation with Traditional Owners and native title holders over three years when the last year's federal budget was released.
But less than a month until the next budget, nothing had been received.
"We do not yet have a funding agreement," he told the environment and communications committee hearing on the issue in Darwin on Tuesday.
"We have received some correspondence by email as to the particular reasons for the delay. I think we will have to take that on notice. I cannot recall the specifics."
Senator for the NT, Malarndirri McCarthy, said she found it odd the NLC had not received the money given the government was trying to urgently develop the basin and had granted $19.4 million in February for drilling.
On March 7, Minister for Resources and Water Keith Pitt issued a press release stating the funding would ensure Traditional Owners were empowered to make informed decisions about development on their land.
Earlier, Andrew McConville, Australian Petroleum Exploration and Production Association chief executive, said the Beetaloo Basion has the potential to supply domestic gas needs and export markets.
"This is both an export and domestic opportunity," he said.
Mr McConville said 30 per cent of gas produced in Australia was used for electricity generation and 70 per cent to manufacture everyday goods.
"The simple reality is that those products do not have a substitute," he said.
The hearing continues.