NSW-focused gas company Metgasco has initiated legal action against the NSW government, seeking a review of the decision to suspend its licence to drill an exploration well at Bentley, near Lismore.
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Metgasco today advised the Australian Stock Exchange (ASX) it will seek a judicial review – which will be processed by the Administrative Appeals Tribunal - to determine if Resources and Energy Minister Anthony Roberts’ suspension of its drilling licence was lawful.
On May 15, Mr Roberts announced the Office of Coal Seam Gas (OCSG) had suspended Metgasco’s licence for the Rosella welll.
Mr Roberts also referred the company to the Independent Commission Against Corruption (ICAC) over "receipt of information concerning shareholdings and interests in Metgasco".
Yesterday, the ICAC advised it would not launch an inquiry into Metgasco shareholders because it was outside its jurisdiction.
“The grounds for Metgasco’s claim are that the decision was unlawful because it was not authorised by legislation and was made without affording Metgasco procedural fairness,” the company said in a statement to the ASX.
Mr Roberts said Metgasco’s licence was suspended due to concerns the company had not adequately consulted with the community.
OCSG had advised him the community had expressed fundamental concerns about the way in which Metgasco had characterised its activities, he said.
“On 13 May 2014 the director of OCSG and the NSW Land and Water Commissioner held a meeting with local landholders, at which matters of consultation between the community and Metgasco were raised.
“The director of OCSG has now suspended the approval to construct the Rosella E01 gas exploration well.”
Metgasco said it will investigate if it can claim for damages as compensation for losses incurred from the suspension of its licence.
Mr Roberts has said he stands by the decision by the OCSG to suspend Metgasco's licence and made "no apologies for being open and transparent about the actions we have taken".
Earlier in May, as many as 2000 protesters had assembled at the Bentley site to block Metgasco’s activities.
Speculation was rife that up to 800 police were to be sent to break the blockade – but the blockade dissipated after the Minister’s suspension of Metgasco’s licence.
Mike Foley
Senior journalist for The Land.
Senior journalist for The Land.
