CSG licence buyback in northern NSW

Resources and Energy Minister Anthony Roberts today announced that Petroleum Exploration Licences (PELs) owned by exploration company Pangaea had been bought back and cancelled by the government.

Pangea held two PELs: 437 covered 565,497 hectares from Warialda at the Gwydir Highway to Boggabilla, on the Queensland border.

PEL 476 covered 1,009,357 hectares north of Maitland and covering Taree, Tuncurry, Bulahdelah and Dungog.

The buy-back and cancellation is part of NSW’s Gas Plan – Mr Roberts’ strategy to implement the sweeping reforms called for by Chief Scientist Mary O’Kane’s comprehensive review of CSG.

“The buy-back program is action four of the NSW Gas Plan, which provides a one-off opportunity for PEL holders to surrender titles for limited compensation,” Mr Roberts said.

The government has set up a Strategic Release Framework to identify “appropriate areas” for exploration as part of the Gas Plan roll-out.

PELs will be bought back and government will then “identify the most suitable and capable proponents” for the areas deemed suitable for exploration.

“Our new Strategic Release Framework will see an assessment of environmental, economic and social factors, with community consultation conducted upfront, before a title area is considered for release,” Mr Roberts said.

“We are determined to ensure world’s best practice regulation of the gas industry, while safely and sustainably providing energy security for NSW.”

Mr Roberts said almost half of NSW was covered with exploration licences applications to explore under the previous government, but the Gas Plan has reduced licence coverage to 15 per cent.

The NSW Government will now identify which areas will be released for exploration.

The title area would then go out for expressions of interest so the government can identify "the most suitable and capable proponents".

Applications for new CSG exploration licences have been frozen until the full suite of reforms needed for the Gas Plan have been made.

Greens mining spokesman Jeremy Buckingham, whose party is opposed to all CSG development, dismissed the buyback as election politics.

“The public will not be fooled by this cynical political move to cancel a couple of petroleum licenses while renewing others in the Northern Rivers and supporting fracking at Gloucester and the Pilliga.

“Taxpayers would also like to know how much of their money has been paid in compensation to cancel these licenses."

Landholder group Lock the Gate welcomed the cancellation announcement as a "positive step forward".

Spokeswoman George Woods called on Mr Roberts to "urgently protect" Narrabri and Gloucester, where Santos and AGL, respectively, are developing CSG production, as well as Northern Rivers where Metgasco's plans have stalled.

“While the Minister has his red pen out, he should heed overwhelming community wishes and cancel the unconventional gas exploration licences across the Northern Rivers– no special treatment, no exceptions.

“Even more urgently, the Gloucester and Narrabri communities are facing the immediate threat of CSG."

PEL 437

PEL 476