Landowners pipe up after PM hits gas

Gas pipeline looms larger as PM hits go button

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DIGGING IN: A section of the Moomba to Sydney gas pipeline waiting to be buried. Inset: Garbis Simonian, Scott Morrison

DIGGING IN: A section of the Moomba to Sydney gas pipeline waiting to be buried. Inset: Garbis Simonian, Scott Morrison

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The spectre of compulsory land acqusitions to build a gas pipeline from Queensland to Newcastle suddenly got more real.

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LANDOWNERS on the route of a proposed gas pipeline from Newcastle to Queensland have reacted with alarm after Scott Morrison delivered the project a shot in the arm this week.

The Prime Minister arrived in the Hunter on Tuesday with plans for a "gas-led" economic recovery, derided by many energy analysts and the power industry, which included a promise to build a gas-fired electricity plant at Kurri Kurri if the private sector did not commit to new energy investment by April.

The government says it will underwrite new pipelines in the event of a "market failure" to ensure the supply of cheap gas to the southern states.

The Morrison strategy promises to provide the 825-kilometre Hunter Gas Pipeline with the main customer and investor-friendly financial backstop it needs to make it viable.

DIGGING IN: A section of the Moomba to Sydney gas pipeline waiting to be buried.

DIGGING IN: A section of the Moomba to Sydney gas pipeline waiting to be buried.

HGP managing director Garbis Simonian said this week that the company had asked the government to underwrite the $1.2 billion project so work could start before supply contracts were locked in.

Stanhope resident Pamela Austin, who organised a meeting of 43 affected landholders last weekend at Elderslie, said Mr Morrison's announcement had made the 15-year-old pipeline project more real.

"People are now saying, 'They want our land and they want us to pay for it? No, no. No way. It's just rubbed salt into the wound,'" she said.

Ms Austin, whose land is not on the route, estimated about 560 properties were affected.

POWER PLAY: Scott Morrison at Tomago on Tuesday to announce the government's gas plan. Picture: Simone De Peak

POWER PLAY: Scott Morrison at Tomago on Tuesday to announce the government's gas plan. Picture: Simone De Peak

The pipeline was approved as "critical state infrastructure" in 2009 and won a five-year extension on that approval from the NSW Department of Planning last year.

Most of the 195 public submissions the department received during a two-week exhibition period in late 2018, including one from Moree Plains Shire Council, objected to the extension.

Ms Austin said some landowners had bought since 2009 without knowing they were on the route.

HGP has approval for a 200-metre-wide corridor in which to lay the pipe two metres underground within a 30-metre easement.

It said in a presentation to Singleton Council and landowners in late August that it would seek to reach agreement with those affected on a route through their properties and use independent valuers to set financial compensation.

It said HGP "may have the right" to compulsorily acquire the easements but would do this only as a "last resort".

Ms Austin said the message from the company was that "you haven't got a hope in hell of not having this on your property".

"A 30-metre-wide easement on your property where you literally have to ask permission to replace a fence post. It's an imposition, especially on smaller properties," she said.

She said the pipeline would also affect farming activities, including crops, dams and irrigation, in some of the state's prime agricultural land.

"Landowners have very serious concerns, especially on the black-soil plains.

"There are some people who are against the whole gas thing, but most of these people are just against this imposition on them, for pittance, really."

Hunter Gas Pipeline managing director Garbis Simonian.

Hunter Gas Pipeline managing director Garbis Simonian.

Lawyer Marylouise Potts, an expert in landholder rights pertaining to pipelines, said HGP could compulsorily acquire easements under the Pipelines Act and the Land Acquisition (Just Terms Compensation) Act once it received a pipeline licence.

She expected many landowners to refuse access to HGP to undertake preliminary work until the easement buyouts were completed.

HGP estimates the pipeline will create 350 construction jobs.

Developer and HGP shareholder Hilton Grugeon said the firm was revisiting the route within the 200-metre corridor "making sure everyone is as much on board as you can get everybody".

"A lot of landowners are concerned because gas is going to mean that they might be drilling under their farm, the water will run away, and they're legitimate concerns," he said.

"But this is infrastructure of a type that a couple of farmers, or a couple of landowners, cannot deprive the country of the benefit."

Mr Simonian said most of the affected farmers were "reasonable people" and the "vast majority just want to minimise inconvenience".

"Everyone will be compensated for any losses," he said.

The story Landowners pipe up after PM hits gas first appeared on Newcastle Herald.

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