NSW has delivered a big hit, or a welcome boost to the State’s burgeoning gas game, depending on who you ask.
Critics of the industry said the recently released Chief Scientist final report highlighted the need to ban, or at least severely limit, CSG operations.
CSG companies, on the other hand, welcomed the findings and said the report paved the way to industry expansion.
Lock the Gate said that development should cease until the government implements the Chief Scientist’s reforms in full.
"The Chief Scientist has indicated the CSG industry should only proceed in NSW if appropriate measures are in place to manage the large volumes of toxic wastewater and salt which it produces,” said spokeswoman Carmel Flint.
"The report has recommended a massive overhaul of the laws relating to CSG mining and an entirely new approach to collection of baseline environmental data and monitoring.
“It has warned that health risk assessments are needed before projects commence to help make sure that the population is protected from the risk of exposure to contaminants and the cumulative impact of pollutants.
"The industry still does not have a plan as to how it is going to manage the vast mountains of salt it produces.
"In light of these findings, the Narrabri and Gloucester CSG projects should now be put on hold until far-reaching law reforms are implemented and all of the potential health risks assessed.”
Greens mining spokesman Jeremy Buckingham said risks highlighted in the report were too great and the industry should be stopped.
“The Chief Scientist’s report has identified coal seam gas can present major risks to the environment, even if this risk is characterised as ‘unintended consequences’,” he said.
“NSW should ban coal seam gas to mitigate these risks and turn to alternative sources of gas and energy.
“We’ve already seen serious contamination incidents with only a few coal seam gas wells drilled in NSW.
“If this industry is allowed to drill the thousands of wells it wants, the risk will only increase no matter how much regulation is tightened.”
NSW Farmers took the middle ground in its appraisal of the report.
“We welcome the report and the recommendations,” said association president Fiona Simson.
“In many ways, her findings come as no surprise, and reinforce and validate what it is that we, as an organisation have been saying for a long time now,” she said.
“We urge government to adopt and implement all the recommendations without delay.
“We would, however, strongly caution against the report being characterised by government and industry as a ‘green light’ for coal seam gas extraction in this State.
“This is an ill-informed approach as there are a number of quite strong recommendations, all very necessary.
“The Chief Scientist’s report now makes it clear there needs to be robust and comprehensive policies of appropriate insurance and environmental risk coverage of the CSG industry to ensure financial protection short and long term.”
AGL, which is seeking approval to develop the Gloucester gas field and operates NSW’s one production operation at Camden in south-west Sydney, was buoyed by the findings.
“The Chief Scientist’s report confirms that with appropriate safeguards and controls, natural gas from coal seams can be safely extracted to supply homes and businesses across NSW,” said AGL head of land and approvals Suzanne Westgate.
“AGL has a 175-year history providing energy to Australians and for the past 13 years our Camden Gas Project has been operating safely alongside communities, agriculture and other land uses.
“The report acknowledges that the coal seam gas industry, like many industries, has technical challenges and risks, however those risks can be managed through best practice.”
Santos, which has advanced CSG operations in Qld but is yet to get the final tick for its plans at Narrabri, said the industry could operate safely and boost the economy.
“We are confident that with robust science, strong regulation, and a continued commitment to work closely with communities, Santos can continue to develop the much needed natural gas for the homes and businesses of NSW,” a company spokeswoman said.
“The Narrabri Gas Project will supply an essential commodity to NSW over its 25- to 30-year life, with the potential to supply up to 50 per cent of the State’s gas needs.
“The project will also deliver significant regional and local benefits, including up to 1200 jobs during construction and approximately $1.6 billion in royalties.”
Mike Foley
Senior journalist for The Land.
Senior journalist for The Land.
