60-day halt on new CSG licences

The chorus of voices calling for a moratorium on coal seam gas exploration has reached the ears of the NSW Government, with Planning and Infrastructure Minister Brad Hazzard announcing a number of measures including a 60-day freeze on the granting of new licences while they prepare legislation.

The announcement from the Minister affects all coal, coal seam gas and petroleum exploration applications. Other changes include: exploration applications will go on display for public comment; the requirement for an Agricultural Impact Statement; the exhibition of an Aquifer Interference Regulation for public comment, which, once implemented, will introduce new measures to regulate activities that impact on aquifers; and a stakeholder reference group made up of key agricultural, industrial and conservation groups that will be established to advise on the policy’s development and implementation.

“We want to ensure that these arrangements deliver on our commitments in relation to strategic land use, and balance the need for investment certainty with conservation of high value strategic agricultural land,” Mr Hazzard said.

The reaction from both farming and green groups has been cautious praise.

Fiona Simson is the vice president of the NSW Farmers’ Association and the chair of its mining taskforce. The Farmers’ Association first called for a moratorium on coal seam gas mining last October and Ms Simpson said it was good to see the government responding to community concern and pressure.

“There has been a very strong signal from the community that they want a change in the process... This is a strong move by the government and we applaud them for it. Having said that, there is a huge amount of detail to be worked out to assure that we get a good change in the process,” she said.

Ms Simson said she understood the Farmers’ Association would be involved in the stakeholders’ reference group and their main concern was to make sure the Agricultural Impact Statement took into account the ‘productive potential’ of farming land.

“If it was just based on past production figures, mining companies could buy up large tracks of land and not do anything with them for five years and then tick off the requirements for an Agricultural Impact Statement,” she said.

Ms Simson said she also wants to see the Aquifer Interference Regulation assessments carried out by an independent body and licensed by a separate body, at arm’s length from the Minister.

New Greens MLC Jeremy Buckingham is the party’sspokesperson on mining issues and said the announcement didn’t go far enough.

“It’s a Claytons moratorium. It will be over before it began and only deals with new exploration licences,” he said.

He said The Greens would be tabling a bill calling for a 12-month moratorium and a commission of inquiry into the practices used by the industry.

“If it’s worth 60 days it’s worth a year given the community concern and the impacts,” he said. “We recognise this is a difficult issue, but we want to work constructively with the government...We welcome the Aquifer Interference Regulation, we welcome the community consultation and congratulate them for starting the work. That is a positive step, but 60 days is setting the bar very low.”

Metgasco managing director Peter Henderson said they would “always comply with government regulations and processes” and wasn’t sure what effects, if any, the new regulations would have on their application for a production licence, which has already been lodged for a well near Casino.

“Clearly there are community concerns, so if that 60 days is used to communicate more effectively, then people might understand that this is a good business and some of the concerns are not well-founded, then that would be beneficial,” Mr Henderson said. “I’m confident these things will be worked through in a sensible manner.”

Arrow Energy’s vice president of exploration Tony Knight said they were still examining the implications of the announcement, but didn’t think it would have any effect on their plans for NSW.

“Our plans are very modest, with just a few wells across the region,” he said.

Mr Knight said he understood the need for an Agricultural Impact Statement in “sensitive, productive” country and that they would continue to monitor the political climate in NSW.

“We will tread carefully as we go from exploration to development,” he said.

Arrow had bigger fish to fry this week with an explosion at a well west of Dalby in the Darling Downs. Reports say water and gas shot 40 metres into the air.

Mr Knight said the well was now capped and they were looking at why that well behaved differently to the hundreds of other wells in the area.

“You’re dealing with gas which is a volatile material, so there are concerns there, but these events are extremely rare and even when problems do occur we can fix them quick smart,” he said.