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

Monday 17 November 2014

NSW North Coast Nationals issue a misleading media release on the future of the gas industry in the region


Australia’s oil and gas industry welcomes the NSW Government’s recognition that the state is facing an avoidable energy security problem and that policy must change to encourage supply. [Australian Petroleum Production & Exploration Association, media release,13 November 2014]

NSW National Party MPs Thomas George, Don Page, Chris Gulaptis and Geoff Provest issued this media release on 13 November 2014, misleadingly titled NEW POLICY PROVIDES FRAMEWORK FOR A GASFIELD FREE NORTHERN RIVERS.



Unfortunately the Baird Coalition Government’s policy does not guarantee any such framework; almost all of the Northern Rivers is still vulnerable and parts of the region could still become designated gasfields and existing exploration and/or production licences could still be progressed by mining companies currently operating on the state's north coast.

This NSW Dept. of Energy and Resources map gives the lie to the George, Gulaptis, Provest and Page claim that we are on a Coalition road to a Gasfield Free Northern Rivers:


Petroleum (coal seam gas) exploration licences remain from the NSW-Qld border down into the Clarence Valley.


Application Identifier, Application Number, and Application Date:

PELA 130 16 December 2009 (1 block about 51 km SW of Lismore held by Metgasco Limited)
PELA 135 31 March 2011
PELA 137 12 March 2012
PELA 144 28 November 2012
PELA 146 22 February 2013
PELA 147 22 February 2013
PELA 148 27 February 2013
PELA 150 11 November 2013
PELA 151 11 November 2013
PELA 152 11 November 2013
PSPAPP 48 15 December 2009 (1 block about 41 km SW of Lismore held by Clarence Moreton Resources Pty Limited)
PSPAPP 54 21 November 2011
PSPAPP 56 22 February 2012
PSPAPP 57 22 February 2012
PSPAPP 62 21 June 2013
PSPAPP 63 6 December 2013

The Northern Star 14 November 2014:

Gasfield Free Northern Rivers co-ordinator Elly Bird said the announcement provided no protection for the Northern Rivers and did not acknowledge the community opposition to the industry.
"It's also very misleading of the NSW Government to say they have accepted all 16 recommendations of the Chief Scientist, when they've done no such thing," Ms Bird said.
Bentley farmer Meg Nielson said the community would stand up and protect their land until the licences were cancelled.

"Our community wholeheartedly rejects the industrialisation of our landscapes, and landholders across the Northern Rivers remain united in their complete rejection of unconventional gas extraction. We are bitterly disappointed that the government is still not listening to us," she said.

I suggest that Northern Rivers residents take the time to read the actual Liberal-Nationals policy document here and, ask questions of Resources Minister Anthony Roberts before casting their vote in the March 2015 state election.

Sunday 16 November 2014

Finally. Nationals MP for Ballina Don Page speaks out against coal seam gas exploration in the Northern Rivers four months before he retires


ABC News 12 November 2014:

The state member for Ballina has formally farewelled his electorate and taken a parting shot at the coal seam gas industry.
Last night Don Page gave his final speech before the NSW parliament, using the time to reflect on almost 27 years in public office.
He retires at next year's state election in March.
The National Party member told parliament he feels strongly that coal seam gas (CSG) is not compatible with the interests of his electorate.
Despite there being no known CSG reserves in the seat of Ballina, Mr Page wants a pledge from the government to keep his electorate CSG free.
"There is no CSG in the Ballina electorate however there is a petroleum exploration licence or Petroleum Exploration Licence (PEL) over it," Mr Page said.
"When the owners of PEL 445 surrender 25 per cent of their licence which they will be required to do, the government should not re-issue that part of it, thereby making the Ballina electorate CSG free. I look forward to the government's announcement on CSG in the near future," he said.
He told parliament he stands united with the opposition to the CSG industry....

Sunday 2 November 2014

The Northern Rivers marched in step to demonstrate its resolve to keep gas fields out of the region


Some of the images on mainstream & social media with reporting on the day as the Northern Rivers marched to show its resolve........

NBN News  1 November 2014:
In an unprecedented show of solidarity, around 10,000 people took to the streets of Lismore today – to declare the region gasfield free.
It’s the biggest social movement of its kind in the region, which is calling on the government to ban unconventional gas mining.


ABC News 1 November 2014:

More than 5,000 protesters turned out on the NSW north coast to show their anger at plans to try to restart a coal seam gas (CSG) project in the area.
The anti-CSG rally took place in Lismore's CBD and was staged in response to a court case in progress which is dealing with the suspension of a CSG licence in the area.
The NSW Government suspended the licence six months ago and the issue is now before the courts waiting on a decision about the validity of the suspension.
Residents in northern NSW have continued to show their strong opposition to CSG has not changed, with march organisers saying the big turnout was a message to gas companies and the government.
Rock Valley farmer Bevan Jolley said he has become disillusioned with the National Party, which he once identified with.
"I've voted National Party ever since I got to vote and I am 70 years of age now but I am very disgruntled with the way local pollies are treating us," Mr Bevan said.
"They get our vote and then when something big like this [CSG] comes up they seem to not want anything to do with it. When they go back to Parliament they don't bring it up."
Mr Jolley said it is not in his nature to protest but he feels he has to because he is concerned about the effect of CSG on ground water on and near his property where he runs beef cattle and grows macadamias.
"Everyone doesn't want to have to protest to try to stop something ... we vote in politicians to do the job for us but these fellas aren't doing it," he said.
"If you bugger up that underground water, that's it, you can't fix it."….


Northern Rivers Guardians 1 November 2014:

What a great day! The march in Lismore today was a happy, huge success and NRG was well represented. Thanks to all who took part in the LTG Alliance regional march and rally to declare the Northern Rivers Gasfield Free.
We are tired of waiting for the politicians to truly represent the more than 90% of NR residents who have declared their roads and villages to be Gasfield Free . So we declared it ourselves. Well done everyone ! The people have spoken.
Estimates of crowd numbers vary from 5,000 to 10,000. I tend to support the higher figure as there was obviously more people marching than when we did it 2 years ago and that was said to have been 7,000. We also had the rare experience of the head of the march meeting the tail as we circled back on the route around the CBD: this didn’t occur in 2012 over the same route…..
Significantly, shopkeepers and onlookers gave visible support to the cause, especially when we chanted ”Thomas George has got to go”. Seems the Lismore electorate is looking shaky for the Coalition…..


MEDIA RELEASE: 1ST November*

MASSIVE TURN OUT FOR GASFIELD FREE RALLY IN LISMORE TODAY

Organisers of today’s Gasfield Free event in the Northern Rivers have described the day as a huge success. An estimated 8,000 people from across the Northern Rivers region turned up in Lismore today for the declaration, march and rally.

“The determination and commitment of the community of the Northern Rivers to remain Gasfield Free is undeniable,” said Gasfield Free coordinator and rally organiser Elly Bird.

“This community is saying loud and clear that they want full cancellation of the licenses across the region, and nothing less will serve.”

“Today’s event makes it very clear that opposition to invasive gasfields in the region is not going away.”

“The NSW government needs to take decisive action and join Labor and the Greens in making a commitment to permanently protect our region,”  she said.

Video footage of today’s event is available at this link: https://vimeo.com/110635419

* Courtesy of Lock the Gate Northern Rivers Regional Alliance and Yuraygir Coast and Range Alliance
 

Friday 31 October 2014

Deputy-Premier Troy Grant introduces himself to the NSW North Coast in exactly the wrong way


If there was an issue so big that it is recognised by both government and industry as being close to the hearts of a great many residents and electors living on the NSW North Coast, it is community opposition to coal seam and tight gas exploration and potential production.

So what did the Nationals do on one of Troy Grant’s early visits as Nationals leader and deputy premier of the state – they start a donnybrook that will have people shaking their heads and saying; Told you the Nats were for all for 1,000 well strong gasfields in our paddocks.

Grant needs to keep better control of his troops if he wants the Nationals to hold regional seats in the March 2015 state election and, he needs to recognise that commercial gasfields will ruin the North Coast's clean green image which underpins local economies.

Echo Netdaily 27 October 2014:

Tweed mayor Gary Bagnall has launched a scathing attack on state MP Geoff Provest and deputy premier Troy Grant, accusing the two National Party politicians of trying to gag him over his stand against coal-seam gas (CSG) mining.
The defiant dummy-spit came on the eve of a media event organised by the two MPs yesterday at which they announced funding for a new tourism sign on the highway at the Queensland border.
Despite being snubbed for what he wanted to say, the Tweed mayor went along to the highway-edge announcement.
The row erupted on Friday when Mr Provest emailed council general manager Troy Green to tell him to trash a draft press release on the funding announcement because the mayor had made comments he didn’t like.
Cr Bagnall, who was elected mayor just last month, said his comments for the draft release had welcomed the funding for the sign, adding that Tweed council had taken the initiative to promote tourism by installing new signs ‘explaining the indigenous meaning of some village names, and that the shire also had plans for Gasfield Free signs’.
But Mr Provest saw red when he read the draft and fired off an email to council to say he found the mayor’s comments ‘totally inappropriate’.
‘Commenting about the gas field free signs just shows a lack of integrity and professionalism,’ Mr Provest said, accusing Cr Bagnall of taking an ‘opportunity to have little digs at the state government’.
The Tweed MP then told council it would ‘not be required to make any official comment’.
Cr Bagnall told Echonetdaily he was furious at being ‘snubbed and told to shut up’, saying new deputy premier Mr Grant was a staunch supporter of CSG and would not have liked ‘any mention of CSG”.
‘But I won’t be silenced,’ the mayor said….
Cr Bagnall said Mr Grant was on the record as describing those opposing CSG exploration as ‘scaremongering’.
He said he would always stand up for Tweed residents’ opposition to CSG and unconventional gas exploration.
“The deputy premier is the second most powerful elected NSW politician, but he does not have a right to tell me what to think or say,’ Cr Bagnall said.
‘I stand with our community and oppose harmful coal seam gas mining and I will never be silenced by CSG supporters like the Nationals’ deputy premier or Geoff Provest,’ the mayor said….

Thursday 30 October 2014

Northern Rivers communities welcome new Labor Party policy on Coal Seam Gas which now includes the Clarence Valley


The NSW Labor Party realised that it had blundered in excising the Clarence Valley from its ‘CSG Free’ Northern Rivers policy and, yesterday corrected this new policy to include the valley, its water catchment, bio-diverse environment, vibrant communities and local economy.

MEDIA RELEASE 29TH OCTOBER 2014

Northern Rivers communities welcome new Labor Party policy on CSG

Community groups in the Northern Rivers have applauded today’s policy announcement from the NSW Labor Party that adds the Clarence LGA to their proposed ban on CSG mining in the Northern Rivers.
“This is a very welcome announcement from the NSW Labor Party and brings the Northern Rivers one step closer to being gasfield free,” said Gasfield Free spokesperson Dean Draper.
“We congratulate John Robertson and the ALP for showing leadership and foresight on this issue and responding to the concerns of communities across the region.”
“We would also like to acknowledge the efforts of Janelle Saffin and Justine Elliot who have put considerable effort into representing the community’s concerns on this issue over the last few years,” he said.
“The communities of the Clarence will be delighted to be added to the proposed protection zone in the Northern Rivers,” said Lynette Eggins of Clarence Alliance Against CSG.
“We are united with other communities in the region in our opposition to unconventional gas extraction and will be joining people from across the region at the big rally in Lismore on Saturday.”
“With both Labor and the Greens supporting protection for our region it is now clear that the National Party are out on a limb.”
“It is high time our local Nationals MP’s took decisive action to support the community and advocate within government for the gas licences across the region to be cancelled,” she said.

Media release courtesy of Gasfield Free Northern Rivers and Yuraygir Coast and Range Alliance.

Echo Netdaily 29 October 2014:

Under the policy, Labor will not allow new CSG exploration licenses, will refuse to grant CSG extraction licenses, reject renewals of existing licenses and refuse any applications to expand existing operations in the Northern Rivers.
Labor leader John Robertson – who copped a stern talking to from Knitting Nannas in Lismore for forgetting the Clarence – said the inclusion of the Clarence Valley local government area brought Labor’s policy in line with the decision of the NSW Labor conference in July this year.
Mr Robertson was joined by Shadow Minister for the North Coast Walt Secord and Labor’s candidate for Clarence Trent Gilbert in Grafton to make the formal announcement.
‘Last month I announced that Labor would ensure that the northern rivers region would be CSG and unconventional gas-free – and now the Clarence Valley will be included,’ Mr Robertson said.
‘The Northern Rivers is a unique region that is underpinned by its reputation as a pristine environment – and the Clarence Valley will now receive the same protections as the rest of the region under Labor.’

The Daily Examiner, 30 October 2014, Page 3:

COALDALE farmer Allan Reardon is not a man you would normally find anywhere near a Labor Party gathering.
But when it's about coal seam gas mining, his passions are ignited
Mr Reardon made the long trip from his farm at Coaldale, north of Grafton, to hear NSW Opposition Leader John Robertson announce the Clarence Valley had been included in the opposition's Gas Free Northern River declaration.
"I'm not a Labor man," was all he said of his political allegiance.
"But I'm pleased to hear the Labor Party is against allowing coal seam gas mining in the area. I would like to see the Nationals and Liberal Party do the same thing.
"The region's landowners are doing it tough enough without the stress of having the threat of gas mining thrust on them."

Tuesday 7 October 2014

Clarence Valley - the area of the Northern Rivers which Nationals MP for Clarence Chris Gulaptis has failed to protect to date


Never one to stand firm on any issue unless it was of direct benefit to himself, NSW Nationals MP for Clarence, Chris Gulaptis, unsuccessfully attempts to straddle the fence on the issue of coal seam gas in this The Northern Star article on 2 October 2014:

CLARENCE MP Chris Gulaptis has welcomed an expert's calls for designated gas fields in New South Wales.
The state's chief scientist Professor Mary O'Kane made the claim in her review on the NSW CSG industry.
Mr Gulaptis said coal seam gas drilling areas must be geologically tested.
"It's all about science and fact, and not about emotion," he said.
"The most important thing is the science has to be done first before the coal seam gas extraction is proposed.
"Make sure that your geology and your hydrology is right and then I think everything else will follow."
Mr Gulaptis said there needed to be boundaries where the industry could not operate and agriculture had to be protected.
"There will be some places where it can be carried out, there will be other places where it can't be carried out," he said.
"If it's unconducive to gas extraction then it becomes a problem. Clearly there are some areas where there are some land use conflicts and those areas have to be very closely examined so that neither one is impacted on."

Now when the NSW Coalition Government revisited its mining policies in early 2013 the North Coast Nationals did not insist on comprehensive exclusion zones within the largest part of his electorate, the Clarence Valley, so presumably neither did Chris Gulaptis.

Gulaptis also did not attend the NSW Energy Security Summit on 26 September 2013, which meant that that Metgasco Limited and other coal seam gas miners had a seat at the government summit table but Clarence Valley and Richmond Valley communities did not.

This failure to protect resulted in the drinking water catchments of the Clarence-Coffs Harbour Regional Water Supply, upstream of the Nymboida Weir and associated with the Shannon Creek Dam, having no protection against coal seam-tight gas exploration and mining under the NSW Coalition Government’s coal seam gas exclusions zones included in the Mining State Environmental Planning Policy.

The policy he voted for also does not adequately protect Clarence Valley primary production, including the sugarcane industry, under current biophysical strategic agricultural land (BSAL) mapping, nor does it adequately protect the valley’s identified regionally significant farmland or place limits on the loss of prime crop or pasture land.

In a 21 November 2013 submission to the NSW Department of Planning & Infrastructure Clarence Valley Council noted:

It would seem from the actions and outcomes to date that the State Government is not intending to provide protection from CSG activity by way of exclusion of those closely settled rural residential precincts within the Clarence Valley LGA.

and

Council considers that not considering the drinking water catchments of the Clarence - Coffs Harbour Regional Water Supply as specified in point iv above for exclusion from CSG activity is not in the public interest and should be rethought to help guarantee the integrity of the drink water of the region that this Water Supply infrastructure and asset serves.

and

Whilst the “CSG excluded” areas and areas subject to gateway assessment through BSAL & CIC mapping will enjoy a greater degree of certainty and assessment respectively, uncertainty will remain about the degree of protection and assessment of the larger areas outside of these areas if and when they are to be subject to mining and CSG exploration & production activity.

This is the area of the Northern Rivers which Chris Gulaptis has failed to protect to date:                                                                                                     

Unfortunately for the Clarence Valley, to date NSW Labor also offers little protection under its coal seam and unconventional gas policy either.

Sunday 5 October 2014

The state of play in the coal seam and unconventional gas industry, according to the NSW Chief Scientist


Excerpts from the NSW Chief Scientist & Engineer Mary O’Kane’s Final Report of the Independent Review of Coal Seam Gas Activities in NSW (September 2014):

Stakeholders have significant concerns

* Land is a key issue and one that strikes an emotional chord due to the strong affinity
Australians have with their land and its central role in the livelihood of rural communities.
There is a perceived lack of support for rights of landowners in terms of access to their
land. Lack of consultation, inadequate compensation, property value decreases, and
potential legacy issues are also cited as major issues by landowners as are the negative
impacts on amenity and a lack of adequate benefits for their neighbours and their
communities.

* Water is another key issue. Primary producers and others fear that CSG developments
will negatively impact prime agricultural land by depleting aquifers and contaminating
groundwater reserves. They argue that it could result in reduced food production.

* Other major concerns, especially from community groups, are short- and long-term
negative environmental impacts (and who will pay to remediate land); managing
produced water and associated by-products such as salts; possible impacts on human
and animal health; the distributed nature of the industry (giving rise to concerns including
malfunctioning unattended wells and heavy traffic on minor roads); and the cost to the
taxpayer of regulating the industry.

* Certain processes such as fracture stimulation (‘fracking’) and, to a lesser extent,
horizontal drilling, are of particular concern in the context of CSG although the use of
these techniques in other industries (underground water access in the case of fracture
stimulation and infrastructure provision in the case of horizontal drilling) is more
accepted.

* There is concern about lack of adequate and respectful consultation. Stakeholders cited
the failure of industry proponents and government agencies at all levels to engage,
provide information, communicate and address community concerns before proceeding
with development. On the issue of consultation and adequate information provision, the
Review notes that getting the balance right between overall benefit to society and impact
on individuals is a recurrent challenge for governments especially for issues as divisive
as CSG. While the Review found that consultation and information provision could be
significantly improved, it is clear that there are many in the community whose level of
concern is such that they are likely to remain opposed to CSG production in NSW under
any conditions.

* A large number of those who expressed their opposition to CSG to the Review also
made it clear that they were not opposed to CSG per se but were opposed to CSG
production in heavily populated areas and in areas of intensive agricultural production.

* Local councils, especially rural councils, are concerned that they are not receiving
adequate funds to cover rapid infrastructure upgrades (such as upgrades to local roads
and other amenities) necessary to deal with the CSG industry coming to a rural locality.

* The CSG industry is concerned that it is being adversely affected financially by what it
perceives to be an uncertain, often changing, and increasingly tough regulatory regime in
NSW.

* There is a perception in some parts of the community that CSG extraction is potentially
more damaging and dangerous than other extractive industries. This perception was
heightened following the release of the American movie Gasland in 2010. The Review
examined this issue in detail and concluded that while the CSG industry has several
aspects that need careful attention, as do almost all industries, it is not significantly more
likely to be more damaging or dangerous than other extractive industries.

* Many perceive the CSG industry to be a new industry that is being fast-tracked without
adequate attention to significant concerns. CSG production has been happening at
significant levels in North America (where coal seam gas is generally referred to as coal
bed methane) for two decades and in NSW for 13 years (at Camden by Sydney Gas,
later AGL). CSG from NSW sources currently accounts for 5% of the NSW gas supply. In
the 1990s the Government introduced measures such as a five-year royalty holiday
(followed by a five-year incremental sliding scale of royalties from 6% up to 10%) to
encourage the petroleum industry. This benefit was removed at the end of 2012. Some
of the companies that began exploring during this time were responsible for incidents
that led to increased concerns about the industry generally.

* Complex and opaque legislation and complex regulatory processes. This concern was
raised repeatedly by community, the CSG industry and government agencies. It can lead
to considerable administrative burden for those needing to comply, those assessing
compliance and those trying to understand the legislative and regulatory regime from the
community for the purpose of investigating concerns. This complexity can also lead to
gaps, overlaps, contradictions and wasted time in inefficient oversight. The Review
agrees that the legislation and regulatory processes need to be addressed.

* Inconsistent legislation. Many industry and community groups have alerted the Review to varying legislative and regulatory regimes for things similar to those relating to CSG
extraction. Legislation and regulation covering the construction of wells and production of
gas from coal seams as part of coal mining activities is less stringent than that for CSG
production. Similarly a 2km buffer zone approach has been introduced for CSG
extraction, but no such zone is in place for conventional gas or other types of
unconventional gas extraction.

Lack of trust

* CSG companies are viewed as untrustworthy by some members of the community in
both urban and rural areas. This lack of trust seems to stem particularly from some CSG
exploration companies: being perceived to be in violation of land access regulations;
being perceived by some to bully vulnerable landholders; not managing sub-contractors
appropriately; engaging in questionable environmental practices; and not reporting
accidents to the regulator quickly enough.

* Despite the limited extent of CSG development across NSW, Government is perceived
by some as favouring the CSG industry for allowing it to proceed in areas where there
has been considerable community opposition. Government is also perceived by some as
not managing regulatory compliance effectively and not supporting compliance activities
with sufficient penalties where CSG companies have infringed regulations.

* Government and industry information about CSG is perceived by some as lacking
independence and, accordingly, is not trusted.

* Among groups trying to understand CSG impacts there is concern about lack of access
to raw data, and especially baseline data associated with a locality, before CSG
exploration and production commences. While the Government open data access
provisions of recent years go some way to addressing this concern, the fact that most
companies are not releasing this data in raw form (and are not required by Government
to release it) leads to increased suspicion.

* There is considerable social tension and animosity between some neighbours in some
local communities where CSG operations are proceeding or proposed. On the one hand
there are those who are concerned about potential negative impacts of CSG extraction
and see those who want its introduction as ‘selling out’ to CSG companies. On the other
hand, landowners and community members who are in favour of CSG often feel that the
debate has been ‘hijacked’ by environmental activists who are ‘using’ the community for
their own ends……….

There are things we need to know more about

* While Australia has a long history of working in the subsurface, there is still considerable
uncertainty associated with the development of any new resource province. Currently
CSG activities tend to be considered mainly at a site-specific level. A better
understanding of the industry impacts at scale and over time is needed. To enable better
planning decisions and better management of cumulative impacts, it will be necessary
that industry collects and provides to Government significantly more data than at present
including data from a wider range of sources. With a diverse range of resources,
including coal, CSG and underground water, hosted in our sedimentary basins, there is a
need to understand better how the different resources and their development regimes
interact. More detailed knowledge of the structure and composition (especially regarding
hydrogeology) of the sedimentary basins is needed to enhance productivity for the CSG
industry through more precise resource characterisation and better subsurface and
surface environmental management.

* There is a need to understand better the nature of risk of pollution or other potential
short- or long-term environmental damage from CSG and related operations, and the
capacity and cost of mitigation and/or remediation and whether there are adequate
financial mechanisms in place to deal with these issues. This requires an investigation of
insurance and environmental risk coverage, security deposits, and the possibility of
establishing an environmental rehabilitation fund. Doing this is essential to ensure that
the costs and impacts from this industry are not a burden for the community.

* Legacy issues, including better understanding of inappropriately abandoned wells, need
attention.

Friday 3 October 2014

The NSW Baird Government's limited response to widespread community concerns regarding coal seam gas exploration and mining


With regard to coal seam/unconventional gas industry exploration licence issues, the NSW Baird Coalition Government has:

* put a hold on CSG exploration and extraction in the Sydney Water Catchment
Special Areas
* put a 6 month freeze on new petroleum exploration licence applications, which was extended by a further 12 months to September 2015
* undertaken to audit existing petroleum exploration licences
* designated the Santos Narrabri Gas Project and AGL’s Gloucester Gas Project as
Strategic Energy Projects
* signed an MOU with Santos to streamline the assessment process for the Narrabri
Gas Project
* renewed AGL’s Gloucester petroleum exploration licence and granted an activity
approval to fracture stimulate four wells. [NSW Chief Scientist, September 2014]

In addition it has suspended approval to drill on one exploration license PEL 13 on the NSW North Coast.

Thursday 11 September 2014

The lesson Metgasco learnt over the last ten years is that it needs to bully NSW Police into moving against protestors at its direction


Coal seam and tight gas exploration and wannabee production mining company, Metgasco Limited made a 20 minute speech at the RUI Good Oil Conference in Perth on Wednesday 10 September 2014, complete with a 10 slide power point presentation titled Rosella – lessons learnt.

Although the presentation did not make clear what lessons Metgasco thought it had taken from the sustained community opposition to its aim to establish gas fields on the NSW North Coast, oil & gas industry newspaper Upstream obliging told us on the same day that the answer was increased social media propaganda and more police action on the ground at its Northern Rivers drill sites:

He said there needed to be better education of the community in regards to what the impact the industry will have.
Henderson also echoed the message that is pervasive in the Australian industry, which is that operators need to improve their standing on social media.
“We are being absolutely killed in social media by the greens,” he said. “Too many people in the community have been led to believe that we use old technology and that renewables are ready to step in right now and replace them”.
“Unless we start winning the minds of people in the capital city... we’re going to have government’s putting more stringent regulations on us.”
Henderson said he wished at the time of the protest he had pushed for more police action to cut off the resources of the protestors who at times performed “dangerous” acts.

Yes, it seems that Metgasco still believes that way to win hearts and minds at Bentley is with police baton charges.

Monday 25 August 2014

Coal seam gas industry's peak body APPEA refuses to reveal to Baird Government how much gas it estimates members will to be able to deliver to the domestic market in NSW


The NSW Parliament’s General Purpose Standing Committee No. 5 on 20 August 2014 has revealed that the Baird Government has no idea if supporting the coal seam gas industry in this state will actually produce affordable gas for the domestic wholesale/retail market.

In response to a question from the Hon. Rick Colless: I am sure you are aware of the Gladstone LNG terminal development. What impact will that development have on gas prices for New South Wales customers?

The NSW Minister for Resources and Energy Anthony Roberts answered in part:

The development of Gladstone will fundamentally change the east coast gas market. All the gas that we had previously available to us in New South Wales will now also be available for export.
It has been predicted that prices could as much triple once the export hub is fully operational…..
However, it is regrettable that the east coast gas market is also faced by issues of transparency. I am not aware of any public policymaker in Australia who has a detailed understanding of how much gas is being contracted to overseas customers. I am not aware of any public policymaker that knows whether the east coast gas market has the ability to deliver this without causing domestic shortfalls. I am not aware of any public policymaker that knows what penalty provisions apply should the exporters fail to deliver on their promises.
It concerns me greatly that the parties to these joint ventures may have overcommitted themselves believing domestic supply may have come on faster than it has and in greater quantities. Frankly, I find this a completely unacceptable situation. …..
as I have stated many times before, if you cannot measure you cannot manage. We cannot continue to tolerate a situation where Australian policymakers are being, quite frankly, left in the dark.
I understand that individual players in the industry may have commercial-in-confidence arrangements that they do not wish to be made public. However, I have repeatedly asked the Australian Petroleum Production and Exploration Association to work to aggregate this information so that it can be presented to government and the public. To my great disappointment, they have continually refused to do so. For this industry to gain a social licence in New South Wales it is vital for it to be transparent and to demonstrate how the development of this industry will benefit the State of New South Wales.
I feel this sentiment was captured well by the Premier of Western Australia, Colin Barnett, who, reflecting upon the gas situation on the east coast, stated:
It's a hard narrative to sell to the community, to a government that we are going to increase production of gas and we
are going to export and, in the meantime, domestic supplies might be diminished and domestic prices will go up.
Further to that he stated:
I am a politician and I am pretty good at selling a story but I would find that a tough one to sell.

Instead of enthusiastically supporting this industry it might be wise for the NSW Government to adopt a precautionary approach and assume that if the gas industry refuses to share information then the likely cause is that it is attempting to conceal the fact that it has been consistently telling untruths to governments ministers, departmental heads, members of parliament and local government councillors for many years.

Even Metgasco Limited, which tries to make much of its alleged plan to supply gas to local businesses in the Casino district of northern NSW, cannot disguise the fact that high on its wish list is enough money to finance the Lions Way Pipeline (LWP) which would send gas from any future wells up to the export hubs in Queensland and not into other parts of New South Wales:

Metgasco’s independently assessed 2P and 3P reserves well exceed local (Northern Rivers) gas demand.   As such it plans to supply gas to the eastern Australian and international gas market.   We have considered a number of different alternatives to supply its gas to these markets.   At present the most attractive and preferred option is to build a pipeline from the Casino / Kyogle area to tie in to the existing Roma –Brisbane pipeline in Queensland.
The majority of the work required for an environmental approval has been completed on both sides of the NSW / Queensland border.  The main outstanding work is the cultural heritage studies.  When project planning commenced, it was envisaged that this project would be assessed under the NSW Part 3A process.  Metgasco has agreed with the NSW government to transition the project to the new SSD process, with approval work already completed under Part 3A able to be used in SSD.
The pipeline is approximately 150 km in length and is expected to have diameter of 450mm.  It will be buried for its entire length, typically to depths of 900mm - 1,500mm.  It is estimated to cost in the order of $145 million....
Metgasco will recommence activity on the LWP when it decides to restart other field activities in the Clarence Moreton Basin.

The Sydney Morning Herald 28 September 2010:

NEW South Wales-based gas company Metgasco will assess an ambitious bid to partner with LNG Ltd and transport its coal seam gas more than 500 kilometres to Gladstone where LNG Ltd is planning to construct a liquefied natural gas plant for export.
The companies have signed a memorandum of understanding and will jointly fund a feasibility study into the plan. Under the plan, gas from Metgasco's Clarence Moreton Basin in northern NSW would be piped to Fisherman's Landing in Gladstone. The possibility of developing the LNG plant in the Port of Brisbane is also being considered.
Metgasco says if the project is judged to be economic the company could select a preferred LNG option next year. One of those options is a floating LNG platform. Metgasco says it has also signed a separate memorandum of understanding with Norwegian-listed FLEX LNG to evaluate building the project offshore. Metgasco's 2239 petajoules of proved, probable and possible gas reserves are located on the coast, unlike many other coal seam gas projects, making the option a consideration. It says its resources could supply an LNG plant up to 3 million tonnes a year of gas over 20 years.
Metgasco managing director David Johnson said the company was well advanced in developing the Lions Way gas pipeline, which will transport gas from northern NSW to south-east Queensland.