Margaret River faces oil search

The Federal Government is considering allowing companies to drill for oil in a section of ocean off the Margaret River coast which has been earmarked for inclusion in a planned marine sanctuary.

The region, less than 100km off the coast, has been short-listed in this year's round of Offshore Petroleum Acreage Releases. It has also been identified by the Department of Environment as an area needing further assessment because of its high biological diversity, rich stocks of fish, sharks and dolphins and pristine ocean environment.

Resources Minister Martin Ferguson is expected to announce next month whether the area will be released to oil companies for exploration and possible development.

A decision on a proposed marine reserve covering much of the same area is expected later this year.

Conservationists yesterday expressed alarm at the proposal and called for a moratorium on any decision to allow exploration in the area at least until after a decision on the reserve was finalised.

Conservation Council marine spokesman Tim Nicol said the Department of Resources and the oil industry would be "jumping the gun" if the release proceeded before any decision on the marine sanctuary.

"The environmental risks associated with oil exploration are very real, as has been demonstrated recently by the Montara oil spill. If a spill this size was to happen in the South-West there could be oil on the beaches from Perth to Margaret River," Mr Nicol said.

Local conservationist Steve Andrews said people living in Margaret River did not want to "surf the slick". "The ocean to us is sacred. We surf, fish, swim, boat and dive in these waters. The tourism industry depends largely on the health of the marine environment. We are known worldwide for our pristine beaches and clear waters," Mr Andrews said.

A spokesman for Environment Minister Peter Garrett said that in designing the network of marine protected areas, the Government would take account of the potential impact on oil and gas development.