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?

investSMART 2014:

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.

ASX announcement/media release 26 February 2015:

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.

According to Fidelity Corporate Services Limited:

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.

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:

http://youtu.be/ul2ItfwqUnE

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.

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."

Coal Seam Gas and mineral exploration are issues in the NSW state election of 28 March 2015 right across Northern Rivers catchment areas

On Twitter 10 March 2015

MEDIA RELEASE: 9^th March 2015

Licence cancellation another cynical vote grabbing exercise by NSW Government

Gasfield Free Northern Rivers have responded with ambivalence to the announcement today that a petroleum licence in the south of the region has been cancelled. Resources Minister Anthony Roberts travelled to Grafton to announce that gas company Clarence Moreton Resources had agreed to hand in PEL 478.

“This is the cancellation of a small inactive licence. The fact remains that the current Liberal-National Government is actively supporting the roll out of the CSG industry across large parts of our region,” said Gasfield Free spokesperson Elly Bird.

“This government has already renewed Metgasco’s most active CSG licence areas (PELs 13 and 16), as well as the largest licence area in the region (Igas’s PEL 445), which covers Lismore, Nimbin and Kyogle and parts of the water supply area of major towns across the region, including Ballina and Byron Bay.”

“This is a cynical and tokenistic attempt by the Liberal-National government to look like they are doing something on this issue when they could have acted decisively long ago by refusing to renew the Metgasco and Igas licences that were quietly renewed despite repeated calls from the community for their cancellation.”

“The communities of this region are not stupid and will not be deceived by this latest gimmick from the government. They are angry that our local Nationals MP’s have the audacity to repeatedly ignore the community’s wishes over many years only to mock them with token actions at election time,” she said.

MEDIA RELEASE

Janet Cavanaugh

Greens Candidate for Clarence

m. 0429 479 968; e. clarence@nsw.greens.org.au

www.nsw.greens.org.au/clarence

9 March 2015

PEL CANCELLATION TOO LITTLE TOO LATE

The Greens have criticised the Government’s announcement that two Petroleum Exploration Licences (PELs) held by Clarence Moreton Resources Pty Ltd will be cancelled.

Greens candidate for Clarence, Janet Cavanaugh said:

“Today’s announcement is too little, too late. It is merely tinkering around the edges.

“The timing is just cynical electioneering. Both PELs expired in 2012 and could have been cancelled at any time.

“I am concerned that the Government is wasting taxpayers money on this electioneering stunt. Under the Petroleum Onshore Act*, no compensation is payable for the cancellation or suspension of exploration licences.

“Why is the Government paying off their mates in the mining industry?

“There can be no basis for compensation, particularly if there has been insufficient investment in exploration works in the licence area or any other breaches of licence conditions. The Clarence Alliance Against CSG is not aware of any onground works in PEL478.

“In PEL479, there have been substantial complaints about the drilling of the Annvale Borehole in 2011,” she said.

Greens spokesperson on mining, Jeremy Buckingham MP said:

“The Greens are not impressed by the cancellation of these PELs. “We would have been more impressed if Metgasco's PEL426 had been cancelled. It expired more than 12 months ago and should also be cancelled.

“PEL426 is the PEL with the Glenugie drill site. Metgasco’s attempts to drill here were met by concerted community action and a lengthy blockade. Drilling only proceeded after the

riot squad was brought in, at great expense to taxpayers.

“The Greens are the only party to have a position of being totally opposed to all unconventional gas mining and exploration in NSW - that's coal seam gas, tight sands

gas and shale gas. It just isn't worth the risk to our land and water,” he said.

* Section 22(5) of the NSW Petroleum Onshore Act 1991 states:

“No compensation is payable by the Crown for or in respect of the cancellation of, or a suspension of operations under, a petroleum title.”

MEDIA RELEASE

Meet the Candidates at Dundurrabin

The Blicks River Guardians invite you to attend an afternoon tea with NSW election candidates at Dundurrabin Community Centre, 4pm on Sunday 15^th March.  This event, on the beautiful Dorrigo Plateau, provides a great opportunity for you to come and meet the candidates from both the Oxley and Clarence electorates.  There will be time for Q & A about the issues that are important to you and following at 6pm will be a community dinner (bring a plate to share) and a fundraiser for the Blicks River Guardians with local musician and songwriter Noam Blat.

Mineral exploration on the Dorrigo Plateau and across the New England fold belt has increased in recent years.  The Clarence catchment has a number of active exploration leases for gold, antimony and other minerals, with Anchor Resources prospecting near the Blicks River at Dundurrabin and at Wild Cattle Creek near Dorrigo.  Also on the Clarence,  Australia United Mining (Altius) is exploring for gold in the Orara Valley near Coffs Harbour.  The Hillgrove mine in the Macleay catchment has plans to reopen with a proposal for a second mine awaiting approval.  Other large gold and mineral exploration leases are active at Uralla and Armidale.

The increase in mineral exploration above coastal water catchments across our region concerns local residents.

“Some of this exploration is being supported with taxpayers money by the state government, despite the list of contamination events that have polluted regional waterways in recent decades,” said Blicks River Guardians’ spokesperson Meredith Stanton, “Major rainfall events have led to heavy metal contamination polluting the Clarence River at Timbarra in 2001, the Macleay River at Bellbrook in 2009 and at North Parkes a gold and copper mine spill killed birds in 1995.  There are many more documented examples across NSW and more than 500 derelict mine sites that companies have walked away from leaving a legacy for NSW taxpayers.”

The Blicks River Guardians consider mining to be an inappropriate land use on the Dorrigo Plateau and aim to protect our high rainfall area from future mining development.  Local communities rely heavily on tourism and the local agricultural industry.  The risks that an open cut mine would bring to our catchments are not worth the few jobs that might be available to local people if mining development were to be approved. 

BRG will be asking the NSW election candidates where they stand on mining in our water catchments.  To learn more about BRG visit www.blicksriverguardians.org.

To ask the candidates about important local issues come along to the public event at:

Dundurrabin Community Centre,  Armidale-Grafton Road,  Dundurrabin.

Date:  Sunday 15th March 2015

4 - 6pm - Meet the Candidates.  Afternoon tea provided

6 - 7pm - Dinner.  Bring a plate to share.

7 - 9pm - Music. Noam Blat 

For event information call  02 6657 8040.

BACKGROUND

http://youtu.be/WjfmKpEH0Jg

"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

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.

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.

Santos' Gladstone LNG expansion proposal involves significant scientific uncertainties according to Federal Government's Independent Expert Scientific Committee

The industrialisation of rural and regional landscapes continue with Santos planning more than 6,000 water hungry gas wells operating for an estimated 30 years across 10,676 square kilometres in Queensland.

The Abbott Government has been in possession of the Independent Expert Scientific Committee’s final report on the Gas Fields Development Project since December 2014, sometime after which it was made publicly available on the Committee’s website.

ABC News 19 February 2015:

Top experts are warning of significant scientific uncertainties arising from a massive coal seam gas expansion proposal in Queensland.

The ABC has obtained a report from the Federal Government's Independent Expert Scientific Committee, which flags a concerning lack of information in project documents and says more work needs to be done on Santos's Gladstone LNG expansion proposal.

The proposed expansion covers 10,676 square kilometres and has the potential to include more than 6,000 gas wells across central Queensland.

"The scale, the early stage and the geographic extent of the proposed project development, together with other significant coal seam gas projects in the region, creates considerable scientific uncertainty about impacts on surface water and groundwater and associated ecosystems," the IESC report said.

According to the report, the potential impacts include:

* Reduced water supply to Groundwater Dependent Ecosystems, including Great Artesian Basin discharge and watercourse springs and endangered ecological communities.

* Changes to groundwater and surface water quality due to direct project activities and management of co-produced water.

* Cumulative impacts of Surat and Bowen basin activities (particularly coal seam gas and coal mining) on groundwater pressures and lag-time effects on water.

The IESC also warned the hydroecological information (including ecological water requirements of systems) was "inadequate" for understanding potential local ecological impacts.

"Methods applied are appropriate to understand regional impacts, particularly cumulative water drawdown," the Committee said.

"However, the methods used are not sufficient for understanding local-scale impacts, particularly to ecological assets.

"Recognising the considerable information provided in the project assessment documentation, the IESC is concerned that relevant data and information from investigations and monitoring from the [Gladstone LNG] Project and Joint Industry Programmes have not been incorporated in the project assessment documentation for [this latest] development."

There is also the matter of weather during cyclone season......

This is the Santos facility at Curtis Island, Gladstone QLD:

Then there is the matter of weather conditions during cyclone season.....

On 19 February 2015 7News reported:

Maritime Safety Queensland (MSQ) spokesman Patrick Quirk said ships would be moved away from Gladstone Harbour this morning as a precaution. "We have about 11 ships in the port and 23 ships at anchor and they'll be asked to clear the area," he said. "We have some LNG tankers also in the area and they'll go to sea to weather the storm."

The Financial Review on 20 February 2015:

Ports in Mackay and Gladstone had been shut down in preparation for the cyclone. Gas company Santos said all of its staff on its GLNG liquefied natural gas project had been moved off Curtis Island, near Gladstone, with workers moved into cyclone-proof accommodation. Bechtel, which has built the three gas processing plants on Curtis Island, said the projects would remain closed until the weather improved.

And this is the NSW gas industry the Baird Coalition Government wants us to trust........

@LockTheGate 6 February 2015

The Sydney Morning Herald, 6 February 2015:

AGL's contractor did not test for toxic chemicals in flowback water before it was treated and discharged to Newcastle's main sewerage network, the state agency Hunter Water says.

Transpacific Industries discharged the so-called flowback water from AGL's four test wells in its Waukivory pilot project late last year into Hunter Water's sewers despite AGL and Transpacific being warned not to dispose of the waste water through the agency's network.

The Baird government and the Environment Protection Authority ordered AGL last week to suspend its CSG operations near Gloucester and began separate investigations, after the energy company disclosed it had detected BTEX chemicals in some of its flowback water.

The BTEX group – benzene, toluene, ethylbenzene and xylenes – are banned in NSW in hydraulic fracturing operations. The chemicals occur naturally in coal and gas deposits and AGL said it did not use them in its fracking.

"Specific BTEX testing was not carried out at the time of discharge to sewer," Jeremy Bath, a Hunter Water spokesman, said on Thursday. "Independent testing of the stored raw water is now being carried out by [Transpacific]."

Energy Minister Anthony Roberts said the discovery of BTEX, and the fact AGL had withheld information on the findings for 12 days, had been the trigger for the government suspension of AGL…..

Hunter Water said Transpacific tested only for chemical oxygen demand (COD), biological oxygen demand (BOD), total petroleum hydrocarbons (TPH), total suspended solids (TSS) and acidity beforedischarging the water into the sewer.

Hunter Water had sent letters to AGL last year advising that it would not take the flowback water from the CSG wells because it did not accept waste from outside its region. It also did not have confidence that the contractor could effectively treat the water, which can contain Tolcide, a biocide that is potentially damaging to sewage treatment works.....

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"

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

AGL operations suspended and EPA investigating after BTEX chemicals detected in Waukivory well

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…….

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

Preliminary investigation into proximity to natural gas wells and reported health status in Washington County, Pennsylvania

http://ehp.niehs.nih.gov/wp-content/uploads/123/1/ehp.1307732.t003.html

A U.S. peer-reviewed preliminary investigation into Proximity to Natural Gas Wells and Reported Health Status, January 2015.

That not-so-stellar progress of the Australian gas industry

The Australian 14 January 2015:

PLUNGING  prices for liquid natural gas are dashing state and federal expectations of a revenue bonanza from the country’s massive new gas projects, with at least $2 billion being stripped from tax and royalty forecasts.

The seven giant projects being built at a combined cost of about $200bn represent the largest capital investments made in ­Australia and are still expected to be financially viable.

But as prices tumble, the ­industry’s export revenue could be as much as $20bn a year lower than was expected a year ago.

The mid-year budget update released just before Christmas had factored in the oil price falling by a third, with the drop feeding through to LNG prices. The fall has surpassed 50 per cent.….

From a sovereign risk perspective, it is essential that these projects continue to be able to service the foreign debts that have largely financed their construction. Industry analysts believe the projects will still be able to cover their operating and financing costs at current prices, but they believe they would not have been built if current ­prices had prevailed when they came before boards for approval.

“If you knew then what you know now, some may not have proceeded because the rate of ­return on our estimates are below what we think is needed to justify going ahead, but when you’re half-way through the construction, you’re also half-way through the money and there’s no going back,” UBS energy analyst Nik Burns said.

The recent round of state and federal budget updates downgraded estimates of royalty and resource tax revenue from the gas industry, to reflect the weaker price outlook, but prices have fallen a lot further since budgets were ruled off before Christmas…..

For the very junior cowboys in the coal seam gas section of the industry this is not good news.

Some, like Metgasco Limited, are already facing strong headwinds and share price continues to reflect this.

Three month chart ordinary shares sold on the Australian Stock Market (ASX)

Twelve month chart ordinary shares sold on the Australian Stock Market (ASX)

Ten year monthly average ordinary shares sold on the Australian Stock Market (ASX)