AGL’s Gloucester Petroleum Exploration Licence (PEL) 285 has been renewed for six years.
Resources and Energy Minister Anthony Roberts said the renewal of PEL 285 was based on a "rigorous assessment by the Office of Coal Seam Gas (OCSG)".
“The OCSG recommended the renewal of PEL 285 due to AGL’s performance in relation to compliance, environmental performance, safety, its financial and technical capacity and its high level of community consultation,” Mr Roberts said.
“As part of the renewal, AGL will relinquish 25 per cent of its PEL area.
“AGL must meet the NSW government’s strict licence conditions in relation to community consultation, groundwater monitoring and modelling, produced water management, well integrity and fracture stimulation.”
Last September AGL applied to fracture stimulate four existing wells, known as the Waukivory Pilot Project, within PEL 285.
Mr Roberts said the OCSG has granted an activity approval and has approved AGL’s Fracture Stimulation Management Plan.
The OCSG obtained advice from the Environment Protection Authority (EPA), the Office of Environment and Heritage, the NSW Office of Water, the Department of Primary Industries and an independent expert in making its decision.
The OCSG also considered submissions from the Gloucester Groundswell community group.
“AGL’s application included a Review of Environmental Factors, an Agricultural Impact Statement and a Fracture Stimulation Management Plan,” Mr Roberts said.
"A Groundwater Modelling and Monitoring Plan, as well as a Produced Water Management Plan must be completed.
“AGL must comply with the NSW government’s Code of Practice for Coal Seam Gas Fracture Stimulation Activities and Code of Practice for Coal Seam Gas Well Integrity.
"The NSW chief scientist and engineer, Professor Mary O’Kane, provided independent comment and recommendations on the draft codes, based on advice from the expert reviewers,” he said.
Greens NSW MP and mining spokesman Jeremy Buckingham said AGL has been given permission to frack within a few hundred metres of houses at the outskirts of the town of Gloucester, despite a government ban on fracking within two kilometres of urban areas.
“This is a clear signal the Liberal and National parties are pro-fracking and pro-coal seam gas,” he said.
“This is a dark day for NSW with the Baird government giving the green light to fracking once again, including near people’s homes."
