CAROONA Coal Action Group (CCAG) has slammed a report commissioned by coal seam gas (CSG) giant Santos, emphasising significant economic benefits for North West NSW if it is allowed to continue exploratory activities.
CCAG coal seam gas committee chairwoman Rosemary Nankivell said the report was "a clumsy attempt by the company to justify the potential destruction of one of Australia’s most valuable agricultural areas".
In releasing the report by Allen Consulting Group titled The economic impacts of developing coal seam gas operations in North West NSW, Santos vice president for eastern Australia James Baulderstone said allowing the industry to develop in NSW would deliver "once-in-a-generation economic opportunities for the State, especially in regional areas".
The report found CSG could create 2900 jobs and generate $15.2 billion in investment in North West NSW.
"NSW can have a safe and sustainable coal seam gas industry that co-exists with agriculture and delivers real economic benefits to the wider community," Mr Baulderstone said.
The study said Santos’ planned CSG production could create $450 million a year in regional benefits and $800m a year for the State.
"This will allow NSW to become self-sufficient and to export gas to other States," he said.
The report said Santos and its partners planned to invest $1 billion within five years of exploring CSG reserves.
But Mrs Nankivell said the report made "heavily qualified" claims about big returns from CSG while ignoring the environmental and social costs.
"The report does not define the net benefits by taking into account the impact on agriculture, manufacturing and transport and the potentially massive environmental costs that will be borne by the whole community from a project of this size and scope," she said.
"Thankfully the federal government has recognised the serious inadequacies in the existing State-based environmental assessment processes and intervened to establish a new national regime of bioregional assessments."
In November, a three-week stand-off between Santos and protesters ended when Santos agreed not to drill exploratory wells at Spring Ridge south of Gunnedah, until the Namoi Catchment Water Study, due for release in April, was completed.
Santos recently announced a $924 million takeover of Eastern Star Gas, making it the largest coal seam gas operator in NSW.
The report commissioned by Santos says economic benefits include:
- Increase in gross regional product of North West NSW of $470 million annually, or $8.5 billion to 2035
- Increase in NSW gross state product of $821 million a year, or $15.2 billion to 2035
- About 2900 ongoing full time jobs
- $531 million annually or $10.7 billion to 2035 boost to national GDP
- An extra five gigalitres a year of water from coal seams, which after treatment by Santos could boost agricultural production in the region by an average of nearly one per cent per annum
- 40pc of benefits accrue directly back to communities including Boggabri, Coonabarabran, Gunnedah, Muswellbrook, Narrabri, Quirindi, Scone and Singleton
