Blind-sided by water plan

The aquifer reinjection plan was revealed to water users during an unrelated NSW Office of Water public briefing last week, relating to allocations of unassigned groundwater resources across the State.

Water Minister Kevin Humphries alluded to the reinjection plan in a statement on September 11, when he invited public consultation on the extra allocations.

"Coinciding with the release of additional groundwater, return flow credit rules for groundwater will soon be introduced," Mr Humphries said.

"This initiative will allow an aquifer access licence holder to receive a credit for groundwater returned to the water source it was taken from, as long as it meets water quality and other rules."

The NSW chief scientist's final report into coal seam gas (see cover story) also referred to the reinjection scheme.

Seismic activity could result from the practice, the report said, but "technical controls exist to manage these risks".

"This (seismic activity) could conceivably occur by the reactivation of existing faults if waste water were re-injected into the sedimentary basins," the report said.

"Recently, the government announced it will introduce return flow rules which will likely enable water re-injection to water sources to be an option for produced water management in NSW in the future."

When news of the reinjection plan filtered through, a meeting was set up between NSW Office of Water and stakeholder groups including representatives from the resources sector, NSW Irrigators, NSW Farmers and Cotton Australia.

The Land understands NSW Water confirmed the reinjection scheme was to apply State-wide.

A briefing note distributed to stakeholder groups said the rules for groundwater reinjection would "likely" be made by the end of the year.

However, NSW Office of Water hosed down speculation that the scheme would be set up across the State.

"Our consultation is about single water source possibilities in certain circumstances, not a blanket approach," a spokesperson said.

NSW Water's briefing document said the scheme would ensure aquifers reinjected with produced water experienced only "neutral or beneficial effect so that water sources are not polluted".

The document does not detail who will assess the impacts, or how neutral or beneficial impacts to aquifers will be monitored.

Significantly, water users will have their water bills reduced to reflect the volumes reinjected.

"Water bills will be adjusted so they are paid on the basis of net take.

"This will operate as follows: if a water customer initially extracts 100 megalitres and then returns 90ML they will pay a water user charge of 10ML," the document said.

NSW Farmers president Fiona Simson was highly concerned about the proposed rules, which she said would favour the resources sector.

"The proposed rules appear to have been designed specifically for the extractive industries to take advantage of. This is concerning and inequitable," she said.

"It also seems inequitable to provide those taking advantage of the policy with not only a credit on their water balance, but a credit on their water usage fees as well."

NSW Irrigators chief executive Mark Mackenzie can't see the hurry to introduce the changes.

"The proposed changes appear to be the result of a push from local councils looking to reinject stormwater and the mining industry.

"We are calling on the NSW Office of Water to restart the consultation process, we don't believe the process has been anywhere near deep enough."

Mr Mackenzie said he warned NSW Water "it will be a hot issue because people don't want the water extracted in the first place, let alone reinjected back into the aquifer".

However, Mr Mackenzie welcomed advice from NSW Water that further consultation would ensue.

Greens mining spokesman Jeremy Buckingham was concerned about potential environmental impacts.

"Reinjecting mining waste water into aquifers is a recipe for disaster," he said.