Metgasco says lets give gas a go

Peter Henderson is the CEO of Metgasco. The Echo asked him to write a piece on why the coal seam gas industry would be good for the North Coast.

This week the federal government released its Energy White Paper which forecasts that gas will account for 44% of Australia's electricity supply by 2050 or about triple the amount produced in 2010. The coal seam gas (CSG) industry already plays an important role in Australia's gas needs and is expected to be more significant in meeting Australia's future energy needs. This report followed the release of the World Energy Outlook report from the International Energy Agency which said that natural gas and renewables are forecast to meet almost two thirds of new energy demand.

The same week that the need for new sources of gas was so clearly communicated, one of our local councils voted to stop a small seismic testing activity because it is opposed to CSG operations. What the council failed to appreciate is that this seismic program is not for CSG. It is to help build a picture of conventional gas structures under the ground. This seismic acquisition program involves driving a truck primarily along a road reserve, sending sound waves into the ground to help define the rock structures. It has no impact on the landscape or the environment.

If Lismore Council can oppose seismic acquisition over a conventional gas structure on the grounds that it opposes CSG, how many other things has it got wrong about the gas industry? With community concern about our current electricity supply, what is Lismore Council's long-term energy solution?

I would like to take the opportunity to dispel some of the misinformation about our industry and discuss the role that Metgasco can play as a long-term partner to the region.

Let's start with the need to safeguard groundwater. CSG wells do not pollute aquifers. According to Brad Mullard, executive director of Mineral Resources and Energy at the NSW Department of Trade & Investment, there is not a single documented case of aquifer contamination from CSG activity in Australia. This is for an industry that has 16 years of operation in Australia and now supplies a third of Australia's east coast gas demand. Drilling through aquifers is not new and has been practiced for hundreds of years. Water wells, mining exploration holes and gas exploration wells all drill through aquifers. Metgasco follows worldwide drilling codes of conduct, developed over 100 years, to make sure that our wells are safe and protect groundwater. In addition, all of our wells are individually approved by the NSW Government which enforces environmental and safety regulations.

A second concern around groundwater is the quantity of groundwater produced from CSG wells and the impact this will have on other users. Metgasco has drilled around 50 wells and of these about 30 have been rehabilitated. We are currently testing water from two pilot production wells. Our wells are different from those in Queensland, producing much lower volumes of water. We have commissioned an independent hydrology study which surveyed the nearly 500 water bores within a 10km radius of Casino and found that none of the water bores penetrate the top coal seam we plan to produce from. We are very confident that there will be no adverse impacts on local water supplies.

We know that people are also worried about land access. Some people think that exploration companies can turn up at their door step and start drilling. This is not true. Metgasco cannot undertake any activities on a property without a land access agreement, and there are restrictions on where we can operate. We have an excellent relationship with our local landowners and are proud to have over 300 voluntary agreements.

Natural gas provides a clean source of energy that produces up to 70% less greenhouse gas emissions than coal when used to generate electricity. The Northern Rivers region is supplied with coal-fired electricity from the Hunter Valley. Surely it makes sense to develop locally-generated gas-fired electricity to supply local communities delivered by Metgasco's Richmond Valley Power Station.

I am personally a supporter of efforts to establish commercial renewable energy. Even putting aside the need to manage greenhouse gases, we will need renewables. The world's population is growing and so too is energy demand. The supply of fossil fuels is finite. Gas is a vital support for the introduction of renewables into our energy mix because it can deliver power when the sun is not shining and the wind is not blowing.

Queenslanders already know the benefits of the CSG industry. Over $45 billion has been invested in the gas industry in the state and the industry is set to deliver a generation of employment and prosperity. While Metgasco is an emerging company and can't promise this type of boom, we can make a positive contribution to the Northern Rivers region, providing jobs for locals and new opportunities. We are also supportive of using part of the royalties on local infrastructure projects, such as a second Grafton bridge, improvement of the Pacific Highway and a manned 24- hour police station in Casino.

We do our best to operate in an open and transparent manner and to participate in community forums, which was a fact recognised recently by Keerrong Gas Squad's spokesman, Ian Gaillard, in which we were commended for "turning out to everything."

Metgasco, with its Australian staff and board of directors, places great importance on the need to protect our natural environment and for the gas industry and farming to co-exist.

I ask Echo readers to question some of the things they hear and to check the facts - give gas a go!

I would like to wish all the readers of The Echo a peaceful and joyous holiday season.