Showing posts with label Coal Seam Gas Mining. Show all posts
Showing posts with label Coal Seam Gas Mining. Show all posts

Monday 27 April 2015

NSW Supreme Court rejected CSG miner Metgasco's contention that the NSW Government acted unreasonably in finding its community consultation process "inherently ineffective"



74.          Fourthly, to the extent that Metgasco submitted that it was unreasonable for the Delegate to find that the consultation undertaken was inherently ineffective, in the sense of lacking attributes and qualities that would make it efficacious, I respectfully reject that submission. The Delegate was entitled, by way of more than one pathway leading to the guidelines, to consider whether Metgasco had engaged in consultation that could be characterised as being effective in its attributes but not its results. That includes whether the community consultation plan was sufficient. I do not propose to engage in an impermissible review of the merits of that decision; to my mind it was not so unreasonable to be amenable to judicial review. It follows that, if this were the only ground upon which Metgasco relied, I would not intervene on the basis of it.

Sunday 26 April 2015

Metgasco says it could be back drilling at Bentley within three months




Within hours of the NSW Supreme Court handing down its judgment in Metgasco Limited v Minister for Resources and Energy, Metgasco Limited publicly stated that it could be back drilling at Bentley in the Northern Rivers region within three months.

I’m sure the Northern Rivers community will be there to greet the return of this coal seam & tight gas mining company with its own unique, non-violent and uncompromising resistance.



Friday 17 April 2015

Knitting Nannas' three year long yarn outside pro-CSG MP's office in Lismore continues


The NSW North Coast Nationals never learn.

At the 28 March 2015 state election they lost one of their safe seats, Ballina, and suffered a 19.6% swing to Labor in Tweed, a 22.4% swing to Labor in Clarence and a 22.5% swing to Labor in Tweed where Thomas George only survived on preferences - yet they tried to flex their political muscle on the one issue that saw so many voters walk away from the National Party at the ballot box.

NSW Police confront Knitting Nannas: Image from @LockTheGate 10 April 215

The Northern Star 9 April 2015:

A group of 10 nannas had yesterday just settled in to their usual positions on the pavement outside Mr George's office yesterday when they were approached by a group of police who informed them the act was illegal.
Eltham Knitting Nanna Judy Summers said she was told by a senior policewoman the group "had no reason to be here as CSG is done and dusted".
The police left after issuing a warning that the group would face more serious action if they returned next week.
But Ms Summers vowed the group were "not going anywhere" and were seeking legal advice over the issue.
"I told her it is not done and dusted; until both licenses are cancelled we will continue to be here," Ms Summers said.
"We are not obstructing the pathway."….
The Knitting Nannas [should] move their weekly protests from Thomas George's office to the boat sculpture at Molesworth Street, Lismore Nationals president John Barnes has said.
Speaking on ABC Radio this morning, Mr Barnes said he was against CSG but the Nannas were a "nuisance" and they should move to "the HMAS Jenny Dowell", referring to the sculpture.
"I don't care what they are protesting for, if it is CSG or the man on the moon," Mr Barnes said.
"They should give the streets back to the people.".....

Later the same day:

THE GREENS NSW coal seam gas spokesperson Jeremy Buckingham wants to know if the government has an agenda to 'shut the Nannas down'.
Following ABC reports that suggested National Party members initiated the confrontation between police and Knitting Nannas on Thursday at their usual knit-in in front of Thomas George's office, Mr Buckingham today called on Deputy Premier Troy Grant to clarify whether his party and government wanted the Nannas shut down.
The 'post-election police crackdown', according to Mr Buckingham is 'a ridiculous attack on the democratic right to peaceful protest'.

What happened two days later was entirely predictable.

Image from @CSGFreeNR 11 April 2015 

The Northern Star 11 April 2015:

POLICE moves to stop the Knitting Nannas against Gas staging protests outside Lismore MP Thomas George's office have spawned a huge outcry since the group was told they were breaking the law on Thursday.
But was it a planned move to shut down the regular "knit-ins" - or a case of mistaken identity?
Knitting Nanna Clare Twomey said the Nannas may have been "implicated by association" over a complaint from another protest - not involving the Nannas - during which a female employee of Thomas George's allegedly injured herself while trying to avoid bags of manure.
Local police were not answering questions on the matter yesterday and the Nannas said they had legal advice their protests were within the law.
Ms Twomey said the group had also received overwhelming public support, and the police intervention had only served to fire them up.

Just as predictable was the public slapdown later on that same Saturday of John Barnes by his leader, who is understandably nervous about the party's poor showing at the recent election.

Anti-gas group the Knitting Nannas Against Gas are welcome to continue their regular "knit-ins" outside Lismore MP Thomas George's office NSW Deputy Premier and Nationals Leader Troy Grant has said.
Mr Grant has today issued a statement demanding Greens MP Jeremy Buckingham apologise for suggesting the government wanted to get rid of the Nannas.
The statement follows a furore over a police visit to the Nannas on Thursday, where officers told members of the group they would have to stop their protests outside Lismore MP Thomas George's office.
He said Mr George was out of the electorate when the complaint was made and he had no involvement in it or knowledge of it.
       
                                Go the Grans! 

Saturday 11 April 2015

Metgasco misses out on NSW compensation offer


The Australian 10 April 2015:


At close of business on Friday10 April 2015 the Australian Stock Exchange listed Metgasco's ordinary share price at 0.023 cents.

Metgasco Limited v Minister for Resources and Energy is listed for judgment in the NSW Supreme Court at 10am on Friday, 24 April 2015.

Friday 3 April 2015

When the NSW gas industry comes to visit: "They say ignorance is bliss and little did I know that life as I knew it was about to change forever"


How it starts – with a knock at the door.

Excerpt from 2011 submission, by northern NSW beef cattle and mixed broad acre farmers Brenden Smith and Angie Smith to the NSW Legislative Council Inquiry Into Coal Seam Gas:

Our farms are situated in PEL 470 and we were approached by a representative from Planet Gas to put an exploration well on one of our properties. We were told it was only one well and it was nothing to worry about.  After further investigations, we found out it was going to be a series of wells with a pumping station on a neighbouring farm to join to a pipeline to take the gas to a major pipeline connecting to Gladstone in the North and Wellington and Newcastle in the south.  It seems all this had been arranged without notifying landholders or local councils. How can this be allowed to happen?  

What one community did about it.

Excerpt from a guest post in 1 Million Women by Angie Smith:

Prior to 2010 I didn't even know what coal seam gas was or that it was embedded in the coal seams deep under our farm. I had no idea what a Petroleum Exploration Licence was let alone that there was one covering our district called PEL470. Hydraulic fracturing was another language.

They say ignorance is bliss and little did I know that life as I knew it was about to change forever.

After a visit from a representative from Planet Gas seeking permission to drill a core hole on our land life went into overdrive. Being a fourth generation farmer I descend from a long line of agriculturalists. My husband is a successful, passionate farmer and our three children, although at university and school, are heavily involved with the running of our family farm. The land is not only in our blood but our hearts as well. Mining companies and governments thought they could establish a gas industry in some of the richest farming land in Australia. They didn't bank on the power of people.

Life became very different from the usual day to day running of the farm and family. Night reading became Petroleum Onshore Act 1991 and NSW Government Draft Strategic Regional Land use Plan. Neighbours were alerted and meetings were planned and email lists collated. Meetings with local, state and federal MP's were attended. Days spent at the legislative Council Inquiries. Letters were written.
Politicians from all parties came to our home to discuss CSG. The phone rang constantly. Involvement on an advisory committee enabled travel to Emerald, Springsure, Toowoomba, Chinchilla, Dalby, Gunnedah, Narrabri and Brisbane to meet with others farmers to learn from their experiences and realise that coexistence is not possible. Legal advice was sought. Lobbying of politicians became a daily occurrence. Meetings with the Chief Scientist and various other influential people became the norm. Every landowner in PEL470 was united and signed an objection to the licence renewal of PEL470.

On 14th October 2014 the Minister for Resources and Energy cancelled our licence.

People power had triumphed…..

Monday 16 March 2015

A desperate Metgasco Limited can not put a corporate foot right


Metgasco Limited/ASX Media Release

Monday 16 March 2015

Metgasco today announces that it has terminated its merger with Elk Petroleum.

The proposed merger was subject to a number of conditions precedent, including Metgasco's ability to raise funds to support the merger and a Material Adverse Condition (MAC) associated with oil prices.

The oil price MAC has been triggered.  Based on discussions with numerous financial organisations, Metgasco has concluded that the chance of securing acceptable finance is now very low.  This is due to a number of factors, including current oil prices, which are significantly lower than anticipated when the original merger terms were negotiated.  As such, Metgasco's Board of Directors, has decided to exercise Metgasco's rights and terminate the Merger Implementation Deed.

Under the terms of the Convertible Loan Facility, which was put in place to support Elk Petroleum through the merger implementation period, no further payments to Elk Petroleum will be made and Elk Petroleum has 30 days in which to repay the loan plus interest incurred.  Of the overall A$2.5 million loan facility, A$1.69m has currently been drawn down.  The loan is secured against Elk and all its assets.

Metgasco is disappointed that this opportunity has not been successful and will continue seeking means to realise value from its Clarence Moreton Basin exploration acreage and identifying opportunities outside of NSW.

About Metgasco

The Natural Gas Company - Metgasco Limited Our business is about finding, producing, marketing and delivering gas from natural gas reserves.  We are a natural gas company that is focused on developing the coal seam gas and conventionally trapped gas resources of the New South Wales Clarence Moreton basin. 

BACKGROUND

ABC News 25 February 2015:

Metgasco has now accumulated losses totalling almost $120 million.
The gas company's latest financial report was released yesterday.
It shows Metgasco lost more than $2 million in the six months to the end of last year.
Company directors say it incurred significant legal expenses in its Supreme Court action against the New South Wales Government.
It is still waiting on a decision regarding the suspension of drilling approval at Bentley.
Metgasco lost a similar amount over the last half of 2013, and its accumulated losses now total more than $119 million.
Total equity is listed at almost $10 million.           

So who is this new antagonist in the ongoing tension between Northern Rivers communities and the NSW Baird Government & CSG-unconventional gas industry?


It is no secret that NSW North Coast communities want gas exploration to cease and the gas industry gone from the region.

Map courtesy of Yuraygir Coast and Range Alliance

There is now a new coal seam gas exploration company in the mix, AJ Lucas Group Limited, which is a specialist service provider to the energy, mining and infrastructure sectors according to its official website.

It has acquired PEL 445 which stretches from the NSW-Qld border down past Woodburn in the Richmond Valley, which makes it yet another mining company seeking to impose its will on Northern Rivers communities and, solicit the help of the NSW Coalition Government and NSW North Coast Nationals to do so.

So what is know about the AJ Lucas Group?



NOTE:
Phillip James Arnall, Chair SCADA Group Pty Ltd, Director Felix Ventures Pty Ltd, Independent Non-Executive Director Bradken Ltd, Director Cuadrilla Resources Holdings Ltd.
Julian Ball is the Managing Director of Kerogen Capital (Asia) Limited, based in Hong Kong.
Andrew Purcell owner of Lawndale Group Pty Ltd.
Ian Meares associated with Autonome Pty Ltd – possibly a director.

ASX announcement 29 September 2014:

Kerogen Investments No.1 (HK) Limited (Kerogen) currently has voting power of 49.6% of AJ Lucas (Company) and is entitled to creep to a maximum of 52.6%. Kerogen has advised the Company that it may wish to purchase shares in the Company in reliance on the “3% creep” allowance in item 9 of section 611 of the Corporations Act.


Six months to December 2014 net loss before tax $13.2 million…..
"Revenue for the six months reflects the continuing subdued activity in the mining and minerals sector. However, the significant improvement in EBITDA highlights the impact of the restructuring that has occurred over the past 12 months. The business structure is now aligned with market circumstances and provides a solid platform for growth. "We continue to develop relationships with blue chip customers, and have won a number of contract tenders, including the recently announced significant contract to construct APA Group's Eastern Goldfields Gas Pipeline in WA. "Our focus now is to build on the solid platform we have created and to ensure our customers benefit from the considerable experience and knowledge we have developed in our core strengths of pipeline construction, directional drilling and project execution."

ASX announcement 6 March 2015:

Amanda Purcell, wife of Andrew Purcell non-executive director of AJ Lucas Group Limited, purchased a total of 28,514 ordinary shares in Lucas Group Limited between 3 and 4 March 2015.

ASX announcement 6 March 2015:

AJ Lucas Group Limited (ASX: AJL) (Lucas) is pleased to provide additional information on the acquisition of the three Petroleum Exploration Licences (PELs) in New South Wales announced on 6 March 2015.


All of the PELs were acquired from Lawndale Pty Limited (Lawndale), a company controlled by Andrew Purcell, a non-executive director of AJ Lucas. Lawndale in turn acquired the PELs from Dart Energy Limited, a wholly owned subsidiary of Igas PLC, incorporated in the United Kingdom. Santos Limited currently has a 15% interest in PEL456, but has elected to earn a further 35% interest through an existing farm-in arrangement, which once completed will increase its interest to 50%. The balance of the equity interest in the PELs will be retained by Lawndale. Santos is the operator of PEL456 while PEL445 and PEL458 will be operated by Lucas or its nominee.

Significant exploration work has previously been conducted on each of the PELs and Lucas is confident of the presence of hydrocarbons.

In addition to the interests acquired in the PELs, the purchase includes an 80% interest in a significant amount of drilling and exploration equipment with a current estimated value of approximately $275,000 (together the Portfolio). The acquisition of the interests in the PELs is subject to approval by the New South Wales government. AJ Lucas has however already paid a $500,000 deposit for the purchase of the Portfolio which is only refundable in the event that the transaction does not complete because of any failure or default by Lawndale. Both Lucas and Lawndale believe there is no reason for the acquisition not to be approved in due course. Following approval of the acquisition of the PELs, together with the finalisation of formal due diligence and execution of formal documentation, the acquisition will settle with payment of a further $2.0 million.

Under ASX Listing Rule 10.11, Lawndale is a related party of AJ Lucas and as a result, Mr Purcell did not participate in the Company's investment decision.

The acquisition is being funded by the provision of a $2.5 million loan facility from Kerogen Investments No. 1 Limited (Kerogen), Lucas’ majority shareholder, secured solely against the Portfolio being acquired. The loan may be extinguished by the end of December 2015 by repayment of $2.5 million plus a fee of $250,000, or by transfer of the PELs to Kerogen. [my red bolding]

Kerogen Investments No 1 (HK) Limited (a private company registered in the British Virgin Islands) became a substantial shareholder in Lucas Group Limited on 30 September 2011 and is a substantial debt holder (AGM 2014). It is said of foreign companies using the British Virgin Islands as their official base that tax avoidance is one of the factors which may have influenced choice and, that the islands are a preferred choice of companies based in Hong Kong.


BVI Business Companies are exempt from the BVI income tax, from tax on dividends, interest, royalties, compensations and other amounts paid by a company; also they are exempt from all the capital gains, estate, inheritance, succession or gift tax with respect to any shares, debt obligations or other securities of the BVI IBC's. The companies are exempt from any kind of stamp duties relating in any way to its assets or activities, with an exception for land-ownership transactions in the BVI: in that case stamp duty remains payable.

Friday 13 March 2015

A reliable food surplus is what holds villages, towns, cities and the nation that governs them together


These are the food producing women of the NSW Liverpool Plains:



What is not as well known is that the NSW 100 km wide coastal strip historically produces 20 per cent of the state’s agricultural product each year.

This strip includes much of the NSW Northern Rivers regions.

A reliable food surplus is what holds villages, towns, cities and the nation that governs then together and, this surplus is dependent on uncontaminated soils and clean water.

Coal seam gas and other unconventional gas mining places soil and water at risk in the rural and regional areas miners choose to industrialise.

Something to think about as we mark our ballot papers on 28 March 2015.

Thursday 12 March 2015

Baird Government and NSW North Coast Nationals continue to betray Northern Rivers communities and their sustainable regional economies


Gasfield Free Northern Rivers Media Release, 11 March 2015:

Northern Rivers under even greater threat of invasive gasfields.
                   
Today’s announcement that AJ Lucas has bought PEL 445, shows that they have set their sights firmly on the Northern Rivers for gas exploration. 

AJ Lucas is the biggest drilling company in Australia, they own seventy seven drill rigs, and have the capacity and resources to commence exploration drilling operations as soon as necessary approvals are in place. 

Ian Gaillard, Spokesperson for Gasfield Free Northern Rivers said "Our region is now threatened more than ever with Queensland drillers probably looking to the Northern Rivers to meet export gas shortfalls at Gladstone. 

"This development makes it more likely that the instant the election is over, if the Liberal National Government is returned to power, Northern Rivers communities will be facing the spectre of a gas drilling invasion. 

"Lismore, Kyogle, Nimbin, Coraki, out west past Urbenville and right down to Maclean will all be up for grabs. As will the regional water supply areas that service major population 
centres like Ballina and Byron Bay. 

"The transfer of PEL 445 to AJ Lucas makes the outcome of the upcoming election even more critical for the future of our region. 

"This news will galvanise people in the region to redouble their efforts over the coming weeks to demand a commitment from local National Party candidates who are the only party refusing to support community calls for a Gasfield Free Northern Rivers."

Tuesday 3 March 2015

"We want a gasfield ban, not a gas plan!"


Letter to the Editor in The Daily Examiner, 27 February 2015:

Election and gasfield
The State Election is fast approaching. On March 28 we go to the polls again to cast our vote to decide who will run the State of NSW for the next four years.
In the Northern Rivers, the biggest political issue over the past four years has been the threat of industrialisation and destructive and polluting activities which inevitably accompany invasive gasfields.
We have fought to save our region - at Glenugie and Doubtful Creek and then at Bentley. The famous Bentley Blockade resulted in the suspension of Metgasco's exploration licence which was to allow drilling to a depth of 2.1km through the soils, rocks and aquifers of this beautiful and productive valley, so typical of the Northern Rivers.
It was the pressure exerted by the community on the NSW Liberal National Government which caused them to suspend activity. It was not an act of benevolence on the part of the NSW Government- without people-power the drilling rig would have moved in.
Over 95% of people in the Northern Rivers do not want to live in a gasfield. Tourism and primary industries in our region will suffer irreparable damage and our properties will become devalued and unsalable - who would buy a house in or near a gasfield?
Now is our chance once again to have our voices heard loud and clear - in NSW we have a system of Optional Preferential voting.
Under this system, numbering one box is permitted. However, there is a very good reason why this is not a good choice. If you do number only one box and your choice of candidate does not receive 50% + one of the total votes in the first count, your vote is "exhausted'" and you have, in effect, wasted your vote.
To ensure that your vote counts, you must number every box.
You do not have to follow the how to vote card of any political party or independent candidate.
You are the one who is allocating preferences. Your preferences are the ones that matter.
Who you vote for on election day is, of course, your personal choice. However, to vote for a gasfield-free Northern Rivers, you will need to give your LAST preference to the party who is least supportive of the community's clearly expressed wishes to remain gasfield free.
We want a gasfield ban, not a gas plan!
Rosemary Joseph

Monday 2 March 2015

Nationals MP for Clarence Chris Gulaptis has just been knotted by a group of nannas


North Coast Voices was sent this copy of a letter which forms part of a lengthy engagement in the political process by one hardy and dedicated group of Knitting Nannas Against Gas.

Nationals MP for Clarence Chris Gulaptis can be in no doubt that his lack of political spine has been noted.























Sunday 1 March 2015

ERM Power would like to bail out of coal seam gas miner Metgasco Limited ?


Metgasco Limited's largest shareholder appears to be losing interest in the fate of this coal seam/tight gas explorer and wannabe production company.

Unfortunately with the ordinary share price being firmly in the 2 cents range, ERM Power will have to wait before any move to sell off its interest in this company.

Argus Media


ERM Power mulls future of NSW gas assets
22 Feb 2015, 11.48 pm GMT
Sydney, 22 February (Argus) — Australian power and gas group ERM Power is still considering the future of its gas interests in New South Wales (NSW), which include an interest in independent coal-bed methane (CBM) gas developer Metgasco and some exploration areas.
ERM bought a 13pc stake in Metgasco in 2013, but the CBM exploration group has been hampered by a NSW government ruling halting further exploration at the company's Casino project because of community concerns and there has been no resolution to the issue.
"These assets are being impacted by regulatory uncertainty in NSW which, at this point, seems far from being resolved. We will continue to keep these assets on minimum expenditure until investment conditions materially improve," ERM said.
The company also operates its 100pc owned 332MW Oakey peak demand gas-fired plant in Queensland, which was only used 3pc of the time during July-December last year. Oakey reported a 3.8pc fall in its asset value from a year earlier to A$223mn ($174mn) in the six-month period. There were increased opportunities for Oakey because of higher volatility in electricity prices in Queensland during the 2014-15 summer, ERM said, with electricity spot market prices reaching the maximum price cap of A$13,000/MWh on numerous occasions.
km/rjd

On 24 February 2015 Metgasco Limited released its Financial Report For Half Year Ended 31 December 2014.

In the last six months of 2014 it recorded a loss of $2,105,164 with $955,547 of this figure listed as professional fees.

Presumably these fees are associated with its court case Metgasco Ltd v Minister for Resources & Energy which has been waiting judgment since the end of October 2014.

Since announcing its script merger with Elk Petroleum on 22 December involving a convertible loan facility for Elk of $2.5 million, Metgasco has lent Elk a further $1.4 million this year.

Metgasco's ailing fortunes will not have been helped by the fact that one of the main planks in its argument for the establishment of Northern Rivers gasfields - ie. that these gasfields would bring down the cost of gas for business and residential users - has been contradicted by the Select Committee on the Supply and Cost of Gas and Liquid Fuels in New South Wales (25 February 2015) report which states gas prices; will rise regardless of whether there is an indigenous supply...Eastern Australia is becoming part of a single global market for commodity gas, and wholesale prices are being increasingly set by international prices. In the future, it is likely that NSW gas retailers will have to compete with offshore demand and pay export parity prices for wholesale gas.

Thursday 12 February 2015

Metgasco Limited: one picture is worth a thousand words


The Australian Stock Exchange, 11 February 2014:

Metgaso Limited (MEL) ordinary fully paid share $0.025 11 February 2015
Price $0.025 Volume 201,874.00 10 February 2014
Price $0.027 Volume 2,035,560.00 9 February 2015
Price $0.030 Volume 267,328.00 6 February 2015

The chart of daily prices over 1 year for security MEL

Are the punters finally abandoning coal seam/tight gas explorer and wannabe production company Metgaso?

Thursday 5 February 2015

Coal seam gas explorer Metgasco Limited's small shareholders are talking to the Australian Stock Exchange?


HotCopper MEL thread, 27 January 2015:

I have just sent my email to ASX (Elvis) as suggested by previous posters.

My concern has been increasing as I watch my other Oil Co investments slowly dribble down the toilet and I really have no interest in having more capital tied to the oil industry at present (Gas & Iron Ore are bad enough).

The text of my email is below.

"Dear Sir,

I have recently become aware that MEL intends to become involved with a US based oil company ELK Petroleum Ltd, by way of a merger of script. There has been significant disquiet amongst shareholders of MEL, as the MEL Board has determined that the transaction need not be put to shareholders for approval.

A number of shareholders (via HotCopper shareholder site) have suggested that the ASX should be requested to use their discretion under Section 11.1.2 of the Listing Rules to consider whether to call upon MEL to seek shareholder approval via a vote on the proposed MEL/ELK merger.

I believe that you may have received emails from some of MEL's shareholders and I would like to add my voice to their request for your consideration of a review of the proposed transaction, or at a minimum request MEL to explain why they have decided to exclude shareholders in the making of this significant move into the US shale oil industry away from domestic gas.

Yours faithfully

(Name included)
Concerned shareholder"

Thursday 29 January 2015

Banned BTEX chemicals found at AGL coal seam gas drilling site


The NSW Government prohibited the use of BTEX chemicals in coal seam gas activities on 6 March 2012, yet it may have been used in 2015 or alternatively the gas industry is allowing naturally occurring underground benzene, toluene, ethylbenzene and xylene to escape into the above ground environment:

NSW Environmental Protection Agency

Media release: 27 January 2015
                            
AGL operations at Gloucester have been suspended and the NSW Environment Protection Authority (EPA) is investigating after the company informed the authority that it had detected BTEX chemicals at its Gloucester coal seam gas project.

AGL suspended operations today after announcing BTEX chemicals were found in samples from its Waukivory operations, said EPA Chief Environmental Regulator Mark Gifford.

“AGL informed the EPA that it was aware of these elevated levels of BTEX chemicals on 15 January, but it did not make these results known to the EPA or the public until today,” said Mr Gifford.

“The EPA is very concerned at AGL’s lack of timeliness and transparency in informing us of these results and we will be conducting a full investigation.

“The EPA can confirm that fracking fluid additives used at the Waukivory operation were sampled and analysed by Government environmental officers in November 2014 before fracking activities were allowed to commence.

“These samples were analysed for BTEX chemicals, which were not detected. Identifying the source of the elevated levels of BTEX chemicals found in AGL’s samples will be part of the EPA’s investigation.”

BTEX is a group of chemicals known as benzene, toluene, ethylbenzene and xylene. These chemicals can occur naturally in coal seams. The Government banned the use of BTEX chemicals in hydraulic fracturing and are prohibited in Environment Protection Licences issued by the EPA.

Contact: EPA Public Affairs

UPDATE

Newcastle Herald 29 January 2015:

AGL will not be allowed to resume work at its Gloucester coal seam gas project until it can prove its operations do not pose an environmental threat.
The state government ordered the company cease operations at the pilot project on Wednesday until joint investigations triggered by the presence of toxic BTEX chemicals have been finalised.
Office of Coal Seam Gas and Environment Protection Authority investigators are working to determine whether the toxic chemicals found in water samples from wells are naturally occurring or were introduced by the company.
‘‘I want to know exactly what has happened,’’ Energy and Resources Minister Anthony Roberts told a parliamentary inquiry that is looking into gas supplies in NSW…….

Friday 23 January 2015

NSW Coalition Government reveals its political sensitivity concerning the Gas Plan


The NSW Baird Government reveals its political sensitivity concerning its Gas Plan via this exchange in the letters section of The Daily Examiner, a regional newspaper in the Clarence Valley.

The first brief letter by a Lower Clarence resident elicited a misleading official comeback within days.

Letter to the editor published on 15 January 2015:

Gas Plan an insult

IT WILL take more than a picture of a young girl testing the waters of what seems to be a pristine dam, to convince the NSW taxpayers that their money is well spent on these full page NSW Gas Plan advertisements.

Such propaganda will not work as people are far too intelligent to be fooled into thinking we don't need to worry about CSG mining now that the NSW Government has created a website.

It is an insult to the intelligence of the community who have overwhelmingly voiced their opposition to unconventional gas mining in the Northern Rivers.

The "NSW Gas Plan" does nothing to stop landholders and communities being forced into giving access to their land against their will and has no improved safeguards for human health in the plan.

Every council on the North Coast has now asked for petroleum exploration licences to be revoked. It is obvious the Government is NOT listening to the voters of NSW and spending huge amounts of taxpayers' money to advertise something they do not support is disappointing to say the least.

Annie Dorrian
Iluka
                         
Letter to the editor published on 19 January 2015:

Gas Plan defence

I AM writing in response to a letter published in your newspaper (15/1) headed: "Gas Plan an insult".

The author claims that an advertorial outlining the NSW Government's comprehensive Gas Plan is an insult to the intelligence of the community.

It is unfortunate that the reader has interpreted the advertorials in this manner. The aim is to raise awareness amongst the community that this State, for the first time, has a plan for the safe and sustainable development of our local gas reserves.

The advertorials will hopefully stimulate people to try to learn more about the plan, the debate and the evidence we have in relation to the risks, the science, the industry and the actions being taken across Government, as we try to balance the economic, environmental and social needs of our State.

This includes a range of actions, which contrary to what is claimed in the letter, cover water, environment, community and landholders' interests.

For example, the use of evaporation ponds and BTEX has been banned. New guidelines for community consultation practices have been set. New codes/standards for well engineering and fracture stimulation practices have been set and peer reviewed by the NSW Chief Scientist and Engineer, Professor Mary O'Kane.

Groundwater studies have been completed on the Gunnedah, Gloucester and Clarence- Moreton basins, and the list goes on.

In total, more than 30 measures were introduced before the Gas Plan, and the Gas Plan itself adds a significant number of additional measures, including the NSW Government's acceptance of all of Professor O'Kane's recommendations.

The plan also outlines new measures aimed at ensuring community and landholders can share more directly in the benefits of gas exploration and development in their areas.

Again, the plan builds on advances already made in this area, such as the review of the arbitration system for land access agreements and the public commitments made by Santos and AGL not to seek access to a landholders' property if the landholder does not want them on their land.

So much has been done in recent years to better balance the economic, social and environmental issues of this industry. The advertorials simply aim to raise awareness of this fact and encourage people to learn more.

Lastly, it is also important to note that it is not correct to imply all people in NSW oppose this industry.
As with all industrial activities, there are those who support it, those who oppose it ... and those who are not interested in the debate or have not yet made up their minds.

Hopefully, for those who are curious about learning more, the Gas Plan will be a helpful place to start.
For more information, please visit gasplan.nsw.gov.au

Kylie Hargreaves
Deputy Secretary, Resources & Energy, NSW Trade & Investment

UPDATE

Bite back at Gas Plan propaganda in The Daily Examiner letters section on 23 January 2015:

Gas plan hard sell

THE NSW Government is spending thousands upon thousands of taxpayer dollars in advertisements to try to sell their so-called NSW Gas Plan to the residents of the Northern Rivers.
This is an obvious attempt to shore up votes for the coming State election in those seats where National Party candidates are most likely to suffer voter backlash from many disillusioned members of the community.
It is not a genuine attempt to inform, educate and consult.
Many citizens would like the right of reply to these advertisements but we do not have the vast amount of dollars required to buy the necessary newspaper space and radio time to counteract the misleading statements in this patronising propaganda.
The main avenue for us, the voters, to have our say regarding our concerns, is by writing letters to the editors of our local newspapers. We are grateful for this opportunity; however, there is limited space in the newspapers to publish our letters - certainly not a full page plus one bonus advertorial half-page.
So it is unjust and inappropriate that Kylie Hargreaves, deputy secretary, resources and energy, NSW Trade and Investment, should write a 457-word letter (19/1) to The Daily Examiner to refute the written opinion of a member of the public (15/1).
The Government is already bombarding us with advertisements - we open a newspaper or other local publication, we turn on the radio or, worst of all, in the privacy of our own home we log into our Facebook page to connect to our friends, and up pops a NSW Government Gas Plan ad.
Please, Ms Hargreaves, leave us at least one forum where we can have our say without interference from the Government.
And while I have this opportunity, may I point out the NSW Gas Plan is not about "Keeping our water pure", "Securing farming future" or "Protecting future generations."
It is all about ensuring that the gas industry proceeds throughout NSW.
Rosemary Joseph,
Bentley

Friday 16 January 2015

Lifting the veil on Yes2Gas


This advertisement has been in the news in 2015:


If examined closely, readers can see that it is authorised by Louise Tout, Narrabri.

There is little information about Ms.Tout on the Internet, other than she is the spokesperson for Yes2Gas.

However, there is one short ABC radio interview with her on 2 December 2014.

In this interview Ms. Tout claims that the Yes2Gas group is one hundred percent local, one hundred percent independent. She also admits to talking to Santos all the time and that the ‘group’ doesn’t have an identifiable membership.

Ms. Tout stated in the radio interview that a few local businesses fund the group. A suspicion that these few may be Santos contractors raises its head.

Despite the lack of members,Yes2Gas does have a Facebook page (which has a subversive clone run by another person/group) and a website.

Website details:


The website was created on 29 September 2014, the registrant is listed as Kate Campbell (a Narrabri-based freelance photographer who is also the tech contact for this website), but its physical address is in the Sydney metropolitan area at 11 Colgate Street, Balmain NSW 2041:


There is a second registered website titled Yes2Gas - a parked site yes2gas.com whose purpose is unknown. This site was registered by Kate Schwager of Wee Waa on 2 October 2014:



____________________

UPDATE:
In an email dated 26 February 2016 Kate Schwager informed North Coast Voices that she no longer owns yes2gas.com and that she initially registered this domain so that it could not be used to promote the gas industry.
                                                     ____________________

So it is possible that the claim that Yes2Gas is a genuine grassroots community group may not hold up under scrutiny; having an unverifiable membership, shadowy funding and an Internet presence created hundreds of miles away from the Narrabri district.

The Yes2Gas quotes Max Davis of Rosewood, Narrabri, who ABC News tells us has a farm which is just a few kilometres from Leewood, a property south of Narrabri that's owned by Santos, and the location of what the company is calling a 'state of the art water treatment facility'. Leewood is a 246 ha property fronting the Newell Highway at Narrabri.

Mr. Davis' address may possible host this business:




Hopefully Max Davis’ cropping property is more than a few kilometres away from Leewood, as Santos proposes up to 850 production wells will be drilled across its Narrabri tenements:
Wells not drawn to scale and positioning potential only

But what of the claims in the advertisement?

Santos is an Australian company

Yes, Santos Ltd was established in Adelaide SA in 1954.

According to its Annual Report 2013 it had 112,397 shareholders and 970,270,108 fully paid ordinary shares listed on the Australian Securities Exchange at 28 February 2014.

However, despite the large number of shareholders, Santos states it is the top 20 shareholders who represented 65.09% of the total voting power in Santos by February 2013 and, these predominately institutional shareholders are not necessarily “Australian”.



Indeed the two largest shareholders, with a combined share percentage of 37.74% of all ordinary shares, are large U.K. and U.S. based investment banks.

HSBC Holdings plc (UK based, located in 75 countries and reportedly Europe’s largest banking group) is the largest shareholder through its subsidiary HSBC Custody Nominees (Australia) Limited (HSBC Bank Australia Limited) and, JP Morgan Chase & Co (US based international investment banking group) is the second largest shareholder through its subsidiary JP Morgan Nominees Australia Limited.

Santos is an excellent neighbour
as professional as Santos

So is Santos an excellent neighbour and professional in its business activities?

This is the area in which the Santos Pilliga/Narrabri gas project operates:

In 2014 the NSW Environmental Protection Authority (EPA) issued Santos NSW (Eastern) Pty Ltd with one clean up notice (29 July 2014) for its Narrabri NSW gas fields and one penalty notice for water pollution at its Bibblewindi Water Transfer Facility.

EPA Media release: 18 February 2014

The NSW Environment Protection Authority (EPA) has issued a $1,500 fine to Santos NSW (Eastern) Pty Ltd following a pollution incident at their Narrabri Gas Field operations in the Pilliga.
In March 2013 Santos notified the EPA after results from routine ground water sampling around the Bibblewindi Water Treatment Plant showed elevated levels of total dissolved solids and slightly elevated levels of others elements.
EPA Chief Environmental Regulator, Mark Gifford said EPA staff immediately began an investigation into the cause of the elevated readings.
“Our investigation into the matter revealed the installation of the liner within Pond 3 was of poor quality which resulted in the integrity of the liner being questionable.
Pond 3 had historically been used to contain the water and brine generated by the gas field. Water quality testing by Santos of the surrounding aquifers showed elevated levels of total dissolved solids and other elements outside the average readings for the aquifers in the area,” Mr Gifford said.
“Further investigation showed the pond had been installed in 2007 by the site’s previous owner, Eastern Star Gas. A report Santos provided to the EPA showed there was no evidence that contractors, engaged by Eastern Star Gas, had carried out the necessary field testing, quality control or quality assurance during the installation, as is required by current government standards.
Santos has applied to the EPA for an Environment Protection Licence for this site. The EPA is close to finalising this application and has put in place strict conditions to ensure an incident of this nature is not repeated.
The EPL includes a legally binding Pollution Reduction Program requiring Santos to develop and implement a Groundwater Remediation and Monitoring Plan that is aimed at remediating that affected aquifers,” Mr Gifford said.

Contact: Emily Boyle

Further waste water non-compliance issues came to light.

EPA Media release: 28 March 2014

The NSW Environment Protection Authority (EPA) is investigating a release of about 500 litres of produced water which entered a diversion drain at the Santos Narrabri Gas Field on Tuesday March 25.
The produced water entered the diversion drain during transfer from an assessment well to a holding pond.
Immediately following the release, the diversion drain was blocked to prevent the produced water leaving the site.
The produced water was captured and returned to the pond.
The EPA is undertaking further investigations.
The Government has designated the EPA the lead regulator of environmental and health issues associated with coal seam gas, and established the Office of Coal Seam Gas in NSW Trade and Investment to regulate other important issues, including petroleum titles, rehabilitation, safety and engineering standards.
Contact: Pamela Wilson

Newcastle Herald 5 January 2015:

A NEWCASTLE City Council-owned waste facility has been  receiving  contaminated coal seam gas waste from far-west NSW, and little is known about where it ends up. 
Environmental Protection Authority documents from 2013 accessed by the Newcastle Herald reveal the council-owned Summerhill Waste Depot was the destination for contaminated soil and waste from the Santos Gas Project in the Pilliga Forest.
Santos says the waste includes ‘‘soil, sediment and pond liner materials’’ removed as part of its $17million rehabilitation of the site following its takeover from Eastern Star Gas in 2011.
But the council won’t say what happened to the waste when it got to Summerhill, where it ended up, or whether it is still receiving the waste.
A spokeswoman said in a statement that Summerhill ‘‘operates as a landfill facility with basic recycling activities’’ and is ‘‘not a treatment facility for contaminated wastes’’, but did not say where the waste ended up. 
‘‘Council is not prepared to discuss any commercially confidential arrangements it has with any of the customers that use the Summerhill Waste Management Centre, this includes any details around waste and revenue receipts,’’ the spokeswoman said.

With the lesser known issue of air pollution being raised.

World Coal 7 January 2015:

Astronomers at the Siding Spring observatory in Australia have warned light pollution from a planned coalbed methane (CBM) development may force the observatory to close.
Siding Spring is the country’s premier observatory. The site of the Australian National University’s observatory, near Coonabarabran in New South Wales (NSW), currently benefits from clear, dark skies above it.
This environment allowed the observatory’s powerful SkyMapper telescope to discover the oldest known star, at 13.6 billion years old, in 2014.
Yet astronomers have voiced concern that CBM developments at gasfields around 50 km away could produce so much light pollution the observatory is rendered useless.
Dark skies are vital if astronomers are to pick out stars and other celestial objects in space.
Mining firm, Santos, plans to tap the area, known as the Gunnedah Basin, for gas sourced in coal seams.
Astronomers are also worried that material dispersed from CBM mining operations will prove corrosive to telescope lenses.
Peter Small, a technical support engineer for Siding Spring, said an existing CBM operation at Boggabri already gives off more light than the neighbouring towns of Narrabri and Gunnedah.
“We get light pollution from that – we even get light pollution from Sydney, which is 400km away, so you don’t have to be that close,” he said.
“This will reduce visibility. If there’s light pollution from anywhere, never mind about the gasfields, this site becomes unviable. It would shut down and all those local jobs would be lost,” he added. “I’d hope there would be a compromise, but no dialogue has taken place with Santos as yet.”....

Santos does not appear to be quite as good a neighbour and not as professional a corporation as Yes2Gas would have us believe.

Whoever the principal or principals of Yes2Gas are, they may have to be very active in 2015 if they are to support their favourite coal seam gas miner Santos Ltd through this.

The Sydney Morning Herald 8 January 2015:

Billions of dollars worth of projects face an uncertain future amid write-downs and job losses across Australia's battered oil and gas sectors as the global oil crash deepens…..
"You have to believe you're going to see enormous write-downs in particular from Santos and Origin – BG have already taken an initial write-down on QCLNG and alluded to the fact it could take a larger one."
Carrying values for some acquisitions made over recent years could also be at risk.
"I don't see how Santos could still carry Narrabri at the book value of the acquisition of Eastern Star Gas," Mr Samter said of Santos's NSW coal seam gas business, based on its $924 million takeover of Eastern Star in 2011.
Santos shares dropped another 1.3 per cent to $7.45 on Wednesday and are now 51 per cent down from their August high.
Steps it took last month to relieve pressure on its balance sheet, including a 25 per cent cut to its 2015 capex budget and an extra $1 billion loan facility, have failed to calm investor fears that it will eventually have to raise equity to protect its investment-grade credit rating. It is also considering asset sales.
Illustrating the extent of the impact of the lower prices on Santos, Mr Samter released research that found the company's equity is worthless if current oil prices and foreign exchange rates are assumed to persist forever.
The Australian 12 January 2014:
STANDARD and Poor’s has cut its oil price forecast for the third time in five weeks, in a move that will increase concerns Santos will be forced to raise equity to keep its investment grade credit rating.
The ratings agency already had Santos (STO) and Origin (ORG), which both have BBB credit ratings, on negative watch and has said further cuts to oil price forecasts could lead to downgrades for the two companies, which are both building LNG plants at Gladstone. The price of LNG is linked to crude oil prices.
“Over the coming weeks, we will be updating our assumptions, and we anticipate a number of corporate rating actions,” Standard and Poor’s said.