June 2013 Memo to Ethical Investors re ERM Power Limited

Since ERM Power Limited decided to invite itself into the Northern Rivers by way of investment in coal seam gas exploration and mining companies Metgasco, Clarence Morton Resources and Red Sky Energy it has become a company which is willing to override the concerns and wishes of local communities.

ERM is currently in a trading halt as it attempts to raise $60 million by way of placement and SPP in order to reduce debt and create working capital to progress its business plans, which include its interests in NSW North Coast coal seam gas production, reserves and exploration.

Ethical investors are asked to consider what participating in this offer may mean to established regional economies, water security, agriculture, lifestyle and amenity across New South Wales by way of potential adverse impacts associated with creating and operating gas fields.

Newcastle Trades Hall Council joins Lock The Gate in opposing CSG exploration/drilling in Hunter Valley

Newcastle Trades Hall Council (NTHC) and Lock The Gate 14 May 2013 statement:

The Lock The Gate Alliance looks forward to working with the Newcastle Trades Hall Council, after the peak union body declared it is totally opposed to further coal seam gas (CSG) exploration and drilling in the Hunter Valley.

The motion passed by the Council cites risks to the environment and the community, and concerns for agricultural lands and townships, and supports the NTHC working closely with groups opposing CSG until the unconventional gas mining practice is proven safe.

NTHC Secretary Gary Kennedy said that CSG drilling technology was not proven to be safe. “The dangers to aquifers, the environment and the community are real, with little public benefit,” he said.

“While it is true that there is a shortage of natural gas, this is because we are selling our gas to overseas markets to maximise corporate profits.”

“The NSW Government have not gone far enough to fully protect the environment, landowners, and the community,” said Kennedy.

Lock The Gate's regional coordinator for the Hunter, Steve Phillips, welcomed the involvement of the NTHC in the campaign to protect the Hunter Valley from CSG. “The movement to protect the Hunter Valley from CSG includes residents groups, farmers, vignerons [wine producers], and environmentalists. It now includes the peak trade union body in the region — the Trades Hall Council,” he said.

“People and organisations are uniting to fight coal seam gas, because CSG is a major threat to farmland, ecosystems, waterways, and public health. Propaganda from both gas companies and the NSW Government — through it's laughable CSG “information” website — cannot hide the facts.”

“In Queensland, where the CSG industry has been allowed to take hold, the worst fears of the community are coming true. Gas is leaking up uncontrollably from the ground, and from rivers. Kids are getting sick. Communities are being destroyed.”

“More than 80% of surveyed residents in Tara report health problems since the development of the British Gas-owned CSG field there. Symptoms include coughs, chest tightness, rashes, difficulty sleeping, joint pains, muscle pains and spasms, nausea, vomiting, spontaneous nose bleeds, skin irritation, and eye irritation.”

“Lock The Gate welcomes the inclusion of the Trades Hall Council in this critical campaign to protect public health, agriculture, ecosystems, and waterways from coal seam gas drilling,” concluded Phillips.

Lower Clarence residents need to boil their water due to E. coli contamination

Mayor: Richie Williamson General Manager: Scott Greensill                                                                   16 May 2013 BOIL WATER NOTICE – Lower Clarence water supply areas Regular monitoring for E. coli bacteria in the Lower Clarence water supply system is conducted by Clarence Valley Council. Recent monitoring has shown E. coli to be present in the Lower Clarence water supply system. As a precaution you are advised that water for consumption should be brought to a rolling boil. Water should then be allowed to cool and stored in a clean container with a lid and refrigerated. This boil water notice applies to consumers in the Lower Clarence including the following areas: Maclean, Brooms Head, Yamba, Harwood, Ashby, Iluka, and areas in between these towns Cooled boiled or bottled water should be used for drinking, cooking, washing raw foods (such as seafood or salads), making ice, and cleaning teeth. Dishes should be washed in hot soapy water or in a dishwasher. Children should take bottled or cooled boiled water to school. Precautions should be taken until further notice.  You will be advised when the boil water notice is lifted. E. coli itself is generally not harmful but its presence in drinking water indicates that the water may be contaminated with organisms that may cause disease. The NSW Department of Health advises that special care is advisable for certain consumers at this time, these include people with severely weakened immune systems (the immunosuppressed), individuals receiving dialysis treatment, and aged individuals. Please contact your doctor or local Public Health Unit (02 6620 7585) for more information. Council, in conjunction with the NSW Department of Health is investigating the problem and is carrying out rectification works including cleaning reservoirs, flushing of mains, supplementary chlorine dosing, and additional surveillance.  Residents may notice elevated chlorine levels in the water supply. If you require further information please contact Council’s Customer Service staff on 6643 0200. Schools: For Precautions for Schools and Child Care Centres during Boil Water Alerts refer to NSW Department of Health website:  Release ends. Authorised by: Scott Greensill, General Manager 02 6643 0212 For further information contact: Rob Donges  Deputy General Manager

Clarence Valley Council Locked Bag 23 Grafton, NSW, 2460 Australia

Hi! I'm Terry from ERM Power and I'm here to supply your business with electricity - but don't ask me where it comes from

http://youtu.be/S0dU2kVESYw

This is Terry McCauley from ERM Business Energy, a commercial unit of ERM Power Limited. 

The ever helpful Terry would like to sign up your own manufacturing/retail business, your child’s school, the medical clinic you attend, the local council and government agencies in your area, and sundry other businesses as ERM customers if you live in New South Wales.

Terry is very keen to help ‘his’ company expand its core business in this state from the 26 per cent of the NSW electricity supply market it held in January 2013.

He has The Energy You Need!

Or does he?

What Terry is careful not to say is the word Metgasco.

Because ERM Power is well aware that communities right across the NSW Northern Rivers are not happy with that mining company’s plan to turn parts of our unique environment and valued agricultural land into gasfields, which will reduce the region’s groundwater resources and possibly irreversibly contaminate aquifers and water bores near or within those same gasfields and/or pollute surface water courses.

ERM is not just aware because its directors and staff read the newspaper or watch the nightly news, no ERM is aware because it is now the largest shareholder in Metgasco Limited, as ERM Power Limited, Energy Resource Managers Pty Ltd and Trevor St. Baker.

By virtue of its share acquisitions over a number of years ERM Power and Messrs. Tony Bellas (Chairman, Non Exec. Director), Philip St Baker (Managing Director, CEO), Martin Greenberg (Non Exec. Director), Brett Heading (Non Exec. Director), Antonio (Tony) Mario Iannello (Non Exec. Director), Trevor St Baker (Non Exec. Director) and Peter Jans (General Counsel) would have considerable influence on any future decisions Megasco may make with regard to coal seam gas exploration and commercial production on the NSW North Coast.

It is probably no coincidence that in the days that ERM finally became Metgasco's largest shareholder, Metgasco announced that it was not capping and abandoning all its wells on the NSW North Coast and was keeping open the possibility of starting coal seam gas production approximately 10 kms west north west of Casino.

In July 2012 ERM Power told the Australian Stock Exchange that its strategy is to gain a foothold in the east coast gas market, consider conventional/coal seam gas production as well as generation opportunities and achieve the same success it achieved in West Australia. (1)

These are photographs of ERM Power-Empire Oil & Gas-Wharf Resources joint venture gasfield sites in the coastal Perth Basin, West Australia:

 So if an ERM Business Energy representative makes contact with you – please take time to consider what you value about your regional lifestyle and whether ERM, through its interest in Metgasco, may be intent on ruining that lifestyle for you, your family, your friends and neighbours, purely for its own commercial gain.

Say NO to ERM.

(1) ERM Power also has an interest in Red Sky Energy Ltd and Clarence Moreton Resources, two other coal seam gas exploration companies operating on the NSW North Coast.
It also holds equity interests in eight petroleum exploration tenements covering in excess of 10,000 km² in the Western Australian Perth Basin, which include conventional gas, condensate, oil and shale gas prospects. 
One of ERM's business units ERM Power Retail Pty Ltd is an authorized gas retailer.

* ERM gas field photographs from Google Images

Anchor Resources expands its exploration footprint further into Clarence River Catchment

Chinese-owned Anchor Resources Limited has lodged a further mining exploration application ELA 4731 which will extends its proposed gold/antimony mining projects further into the Nymboida River sub-catchment of the larger Clarence River Catchment.

The Clarence Valley and Coffs Harbour  local government areas primarily draw the drinking water for an estimated 120,000 people from the Nymboida River system.

ELA 4731 sits above and below EL 6465 – Anchor Resources’ Blicks Project which is targeting gold, copper and molybdenum.

Dexon Group Holdings of Hong Kong exploring for gold and antimony in the Kyogle region

 

Dexon Group Holdings Ltd of Kowloon, Hong Kong, through Dexon Resources No. 3 Pty Ltd (directors Peter Blair, Gennadii Nedria and Mark Levey) has reportedly approached twelve land owners in the Kyogle district concerning one of its mineral exploration leases where it is said to be looking to eventually mine gold and antimony.

 

Dexon Group Holdings’ three associated companies registered in Australia hold mineral exploration licenses EL 7935, EL 7936 and EL 7398 in New South Wales.

 

Gold and antimony mining on the NSW North Coast has a history of environmental damage and catastrophic water pollution:

 

Estimates of sediment migration rates and amounts of Sb and As transported in suspension and solution imply that the catchment contamination will be long-term (centuries to millennia)

 

Antimony contamination, Urunga 2011

Remember when the Australian coal seam gas industry admitted it would contaminate aquifers?

The Sydney Morning Herald 3 August 2011:

THE coal seam gas industry has conceded that extraction will inevitably contaminate aquifers.

The Australian Petroleum Production and Exploration Association told a fiery public meeting in Sydney that good management could minimise the risks of water contamination, but never eliminate them.

''Drilling will, to varying degrees, impact on adjoining aquifers,'' said the spokesman, Ross Dunn. ''The extent of impact and whether the impact can be managed is the question.''

Clarence Valley Council Votes For Halt To CSG Mining Activity

On Tuesday 19th March Clarence Valley Council voted on the coal seam gas (CSG) motion which had been introduced at the previous week's Environment, Economic and Community Committee.

The motion had called on Council to write to MPs and relevant state and federal ministers calling for a halt to "coal seam gas mining activity and all other forms of unconventional gas mining" until the impacts of this mining were properly assessed in studies currently being undertaken by various expert committees.  If that assessment indicated that CSG mining was safe, the community could be assured that there would be no detrimental health or environmental impacts and the mining activity could then proceed.

Cr Kingsley moved the motion with several brief amendments. He said that the motion was not about the pros and cons of CSG but was rather in response to the concerns of the local community, concerns which have been acknowledged by both State and Federal governments.  He added that as the risks appeared to be there, governments should go one step further than their inquiries and halt mining activities until the risks have been dealt with.

Other councillors who spoke to support the motion were Crs Hughes, Howe, McKenna and Williamson. 

Those who spoke against were Crs Toms and Baker. 

One of Cr Baker arguments was to dispute the need for a halt because the experts who were undertaking the studies had not seen fit to recommend a halt. 

Cr Baker is naïve in imagining that experts engaged by the government would take it upon themselves to call for a halt to mining while the studies were done. Obviously a precautionary approach would indicate that was desirable – but the governments would have to make that decision.  And there is no doubt that both the State and Federal Governments, both wholehearted supporters of CSG mining, would not make that call.

Cr Toms' main argument was that there was no point of writing the letters on this matter to government ministers, because nothing would happen as a result.  She also said that, while she understood people's concerns, the matter was outside Council's area of responsibility and that Council needed to wait to see what the experts said.  She added that the issue was about our energy security.

While it appears that Cr Toms has more understanding of the issue than Cr Baker, at least two of the reasons quoted above can be disputed. 

Though it is extremely unlikely that letters to Ministers will persuade them to halt mining until the studies are completed and assessed, these letters are yet another indication – and a strong one – that a local community is very concerned about the likely impacts of CSG mining.  They will be in addition to the increasing numbers of letters, phone calls, emails, marches, protests and deputations from individuals and organisations that ensure that the message gets through to decision-makers in their "ivory towers" in Sydney and Canberra.

Cr Toms has obviously accepted the pro-CSG lobby's claim that CSG mining in NSW is essential for our energy security because NSW is running out of gas.  It's interesting that while they talk of local energy security, the companies mining CSG are more interested in exporting it than in providing for the domestic market. In relation to the claimed shortage, it has been established that there are plentiful supplies of gas in other areas – for example the Bass Strait.  So the energy security claim is a furphy.

The vote for the motion was six in favour (Kingsley, Howe, Hughes, McKenna, Simmons, Williamson) and three against (Baker, Challacombe, Toms).

Cr Challacombe did not speak in the debate and when the vote was taken indicated that he wished to abstain. The Mayor informed him that an abstention was recorded as a vote against.  Cr Challacombe reportedly informed the media later that his background in environmental science meant he thought the council was ill-qualified to assess the industry's impact. (The Daily Examiner, 20 March 2013, p. 4).  He has obviously missed the point that it was government experts, not the Council, who were going to assess the industry impacts.

Hildegard

Northern Rivers

21 March 2013

GuestSpeak is a feature of North Coast Voices allowing Northern Rivers residents to make satirical or serious comment on issues that concern them. Posts of 250-300 words or less can be submitted to ncvguestspeak AT gmail.com.au for consideration

Challenging the February 19 Coal Seam Gas media release by Premier Barry O’Farrell and Andrew Stoner MP

There is much to challenge in the February 19 media release by Premier Barry O’Farrell and Andrew Stoner MP.

Up until now The National Party have claimed that their Strategic Regional Land Use Policy would protect land and water in New South Wales. If this assertion were true, why is there any reason for new ‘measures’ to ‘strengthen’ regulations?

Mr Stoner would have us believe that we (the community) have been listened to. Let’s remember it was The NSW Greens’ Jeremy Buckingham MLC who successfully initiated the 2012 NSW Parliamentary Inquiry into Coal Seam Gas mining that brought to light the dangers of CSG. The Liberal/National NSW government needed to be dragged kicking and screaming to the inquiry before agreeing on these modest reforms to the rampant coal seam gas industry. Now they are rewriting history.

Andrew Stoner and Barry O’Farrell claim their government is not responsible for the exploration licences. “It was Labor that handed out CSG exploration licences… “ Perhaps they are just unaware that Liberal/National government also handed out licences. The application to drill for pilot production at Fullerton Cove was made to the O’Farrell Government in September 2011 and approved by DITRIS on 5 June 2012.

Premier O’ Farrell has claimed that if his government were to cancel petroleum exploration licences then the state would be liable for billions in compensation.  However, the Petroleum (Onshore) Act makes it clear that companies would not be paid any compensation for cancellation of licences if they breached ‘conditions’.   Surely this means that if the Lib/National government has got its new ‘measures’ and ‘controls’ correct then they won’t have to pay any compensation because all the companies will be complying with their ‘conditions’.

The O’Farrell/Stoner government is yet to legislate these new promises made under pressure. If the legislation is passed as proposed there is no protection for farming land, only for viticulture and horse studs. Does this mean that many farmers in New South Wales have less value than grapes and horses?

Existing licences and drilling such as we have seen at Glenugie and Doubtful Creek will proceed. No amount of payout would compensate for the loss in value of farmland because of its industrialisation. Picture many CSG wells 500m apart linked by roads and pipelines; the one small well in a pretty field is advertising hype by the CSG industry.

Luke Hartsuyker is quoted on March 8 as saying that coal seam gas is ‘very much an industry approved in the state jurisdiction’. The responsibility of this jurisdiction certainly appears to cause Mr Stoner some conflict when he can be quoted on ABC News February 22, as saying: “I wouldn’t want a CSG well five metres from my property. It’s going to affect my property value a hell of a lot. Nobody is going to want to buy that value, ah that piece of land rather, um, and there’s always the potential for something to go wrong, so I understand why people are concerned.” How does this fit with the bottom line of the same media release where Mr Stoner says: “We want a sustainable CSG Industry in NSW...”?  Sustainable? How? Renewable? No? Social Licence for this industry? None!

Carol Vernon

Fernmount

11/3/2013

GuestSpeak is a feature of North Coast Voices allowing Northern Rivers residents to make satirical or serious comment on issues that concern them. Posts of 250-300 words or less can be submitted to ncvguestspeak AT gmail.com.au for consideration.

Clarence Councillors Again Express Concerns About CSG Mining

Coal seam gas is very newsworthy at the moment with politicians at all levels of government anxious to demonstrate that they are (finally) listening to community concerns about this industry. Both the State and Federal Governments have recently announced new measures to address some of the issues identified by anti-CSG campaigners.   Whether these measures, most of which are directed to new rather than existing licences, will have any real effect is questionable.

Clarence Valley Councillors, like their state and federal counterparts, are well aware of community concerns. The previous Council passed two resolutions expressing concern about coal seam gas mining. And on Tuesday 12th March, with memories of the Glenugie vigil and blockade still fresh, another motion was put to the Environment, Economic and Community Committee of the Council.

Councillors Jason Kingsley, Craig Howe and Sue Hughes moved that Council write to State and Federal Ministers and local MPs calling for a halt to "CSG mining activity and all other forms of unconventional gas mining including testing in the Clarence Valley" until the release of findings of a number of inquiries relating to the industry's impacts on health, water catchments and other environmental matters could deliver a guarantee that there will be no detrimental impacts from this industry.

In their motion the Councillors stated: "In light of recent events there is increasing doubt as to the safety of CSG mining in both the areas of human health and the Environment. NSW Health recommended no more CSG expansion in Sydney until more studies can be undertaken into the effects on people’s health. The NSW Government recently tightened restrictions on CSG activity near dwellings, with the Deputy Premier stating that he would not like it in his backyard and that there was a possibility something could go wrong.

"If it is good enough for Sydney and the Deputy Premier, it is good enough for the residents and environment of the Clarence Valley."

Questions about the motion were asked by Councillors Challacombe and Baker. 

Councillor Challacombe stated that he had no problem with the motion "per se" but he wanted to establish that, if the five criteria were met, the motion indicated that CSG mining could go ahead. 

Councillor Baker stated that he did not believe that the motion indicated that this could happen and said that he would vote against it.  He spoke on a number of occasions during the debate and claimed that the effect of the motion would be to create uncertainty, that the level of community concern about the CSG industry has not really been tested, and that dealing with this issue was beyond the area of Council's responsibility.  In addition he referred to the inconsistency of the other levels of government which obtained benefits from CSG mining.

Councillor Howe stated that the effect of the motion would be to create certainty as there was uncertainty now.  He acknowledged that, while Local Government had limitations in this matter, Councils had a role in advocating for their communities.  He pointed out that the Department of Health concerns illustrated that there was doubt and a health risk and that we should be wary of taking risks in this matter.

The Committee voted four (Howe, Hughes, McKenna, Williamson) to one (Baker) for the motion.

It will be very interesting to see the vote at the full Council meeting on Tuesday 19^th March.  Of particular interest will be the vote of Councillor Challacombe, former President of the Grafton Chamber of Commerce.  Last year the Chamber came out in support of CSG mining in the Clarence after it had been lobbied (and reportedly wined and dined) by Metgasco, the CSG company involved in the test drill at Glenugie in January.

Hildegard

Northern Rivers

GuestSpeak is a feature of North Coast Voices allowing Northern Rivers residents to make satirical or serious comment on issues that concern them. Posts of 250-300 words or less can be submitted to ncvguestspeak AT gmail.com.au for consideration.

Coal Seam Gas: Saffin and Elliott deliver on water resources protection

 

Hopefully the foreshadowed amendments to the C’wealth Environment Protection and Biodiversity Conservation Act 1999 will give the level of water protection Northern Rivers communities hope for.

 

Saffin hails new water protection as a win for the community

 

The Federal Labor Government today moved to tighten controls over Coal Seam Gas activities on the North Coast.

 

Page MP Janelle Saffin today announced that the Federal Labor Government will amend the Environment Protection and Biodiversity Conservation Act to provide greater environmental protection for water resources impacted by coal seam gas mining.

 

"This effectively means that Coal Seam Gas Mining could be stopped on the North Coast if it has the potential to adversely impact our precious water resources.

 

Currently there is no direct protection for water resources under our national environment law.

 

“I have said for years that we have to protect our water from the known risks of CSG mining.

 

“What I’ve said all along is that I wanted the Environment Minister, Tony Burke,  to find a way that we could draw water in the ambit of the EP and BC Act. And today he announced that he’s been able to do it.

 

“I’ve been working with the Minister and his advisors for some period of time on this.

 

“Last year we got the Independent Expert Scientific Committee that is undertaking bioregional assessments.

 

“I’ve told the minister that the community wanted us to find a way to have water included in the assessments for Coal Seam Gas.  And I thank the Minister for doing that.

 

"Without water there is no life and it's important we take steps to ensure our water systems are protected.

 

“I have been working with Justine Elliott locally and in Canberra, and at the Federal Government level we have done what we can.”

 

“With this amendment the Australian Labor Government is responding to community concern to ensure the long term health and viability of Australia’s water resources.

 

“This amendment means we have to take water into account for these kinds of projects, so I don’t see how they will be able to go ahead.

 

“The states however, still have the power immediately to give us an exclusion zone for the Northern Rivers.”

 

 

13 March, 2013

 

Media contact:  Lee Duncan 0448 158 150

 

Is this the future of Northern Rivers water if the O'Farrell Government, Metgasco and Dart prevail?

 

Enduring and sustainable river and ground water systems have long been a focus of community concern on the NSW North Coast.

 

Metgasco Limited has been exploring for coal seam gas in the region for a number of years and to date has drilled 50 wells of various types which tap into what the company describes as shallow aquifer water.

 

It does not specify how much carted-in domestic water and aquifer water it has used thus far, although its estimates for seven incomplete/new core, pilot and ‘conventional’ wells range from 200,000 litres through to 1 million litres per well by 2014.

 

Nor does it rule out produced waste water and/or treated water seeping into local aquifers.

 

Ultimately Metgasco intends to have an estimated 1,000 wells in commercial production in the Richmond Valley and, an as yet unspecified number in the Clarence Valley.

 

Dart Energy has only recently purchased an existing mining exploration tenement in the region and takes responsibility for the 15 exploration wells already sunk.

 

So what might this level of exploration phase and future production phase water extraction mean for North Coast rivers and aquifers?

 

Because Metgasco does not publicly broach this subject unless pressed on specifc issues by the media, one must look to the National Water Commission and Queensland for a sense of what may come to pass.

 

In June 2012 the Australian Water Commission published a CSG water management position paper which stated:
 

Potential risks to sustainable water management

• Extracting large volumes of low-quality water will impact on connected surface and groundwater systems, some of which may already be fully or overallocated, including the Great Artesian Basin and Murray-Darling Basin.

• Impacts on other water users and the environment may occur due to the dramatic depressurisation of the coal seam, including: - changes in pressures of adjacent aquifers with consequential changes in water availability - reductions in surface water flows in connected systems - land subsidence over large areas, affecting surface water systems, ecosystems, irrigation and grazing lands.

• The production of large volumes of treated waste water, if released to surface water systems, could alter natural flow patterns and have significant impacts on water quality, and river and wetland health. There is an associated risk that, if the water is overly treated, 'clean water' pollution of naturally turbid systems may occur.

• The practice of hydraulic fracturing, or fraccing, to increase gas output, has the potential to induce connection and cross-contamination between aquifers, with impacts on groundwater quality.

• The reinjection of treated waste water into other aquifers has the potential to change the beneficial use characteristics of those aquifers.

Also in 2012 the Queensland Government produced the Surat Underground Water Impact Report which predicts that petroleum tenure holders will extract approximately 95,000 megalitres of water per year over the life of the industry and this extraction will impact on water levels.

 

There are some 21,000 water bores within the Surat CMA with bore water used for grazing, irrigation, industry and urban consumption.
 

Of these, there are 528 bores which are expected to experience a decline in water level of more than the trigger threshold as a result of CSG water extraction.

 

The trigger threshold referred to is five metres for consolidated aquifers (such as sandstone) and two metres for unconsolidated aquifers (such as sands).

 

Eighty-five of the 528 bores are expected to decline by more than the trigger threshold within three years.

 

All 528 bores tap into geological formations involved in current or proposed coal seam gas exploration and production.

 

Note: The Walloon Coal Measures is a geologic formation of the Great Artesian Basin (GAB). The GAB includes aquifers of economic importance and which feed springs of high ecological and cultural significance. The Condamine Alluvium overlies the GAB and is also an aquifer of major economic importance.

 

Of the 71 spring complexes in the area, there are five where the predicted decline in water levels in the source aquifer for the spring is more than 0.2 metres at the location of the spring.

 

In 2013 it was reported in a peer-reviewed paper that fugitive gas emissions from a CSG gas field near Tara in Queensland may be higher than previously thought.

 

This paper hypothesizes that the lowering of the water table and the alteration of subsurface strata creates enhanced soil gas exchange, which results in higher radon concentrations near CSG wells.

 

A previous submission from the SCU Centre for Coastal Biogeochemistry Research also highlighted a possible relationship between CSG mining activity in the Tara region and the presence of higher than expected levels of the greenhouse gas methane in the air.

NSW Farmers asks O'Farrell to protect all strategic agricultural land, water resources and lots zoned residential from CSG and coal mining

NSW Farmers on 19 February 2013 as reported in the RuralWeekly:

The following motion was passed at this morning's executive council meeting:

NSW Farmers supports Premier O'Farrell's decision to take a tougher stand on CSG compliance, and extraction near iconic agricultural industries. We call on the NSW Government to improve this policy by taking the following steps:

1.   apply the 2km buffer to Strategic Agricultural Land and water resources, as identified in Strategic Regional Land Use Plans;

2.    apply the buffer to minerals exploration and extraction (including coal) - not just coal seam gas;

3.    apply this policy to all projects which have not yet received approval, or release legal advice detailing why this step cannot be taken; and,

4.    apply the 2km buffer to all areas zoned as residential (as opposed to setting a population-based definition).

Truth in advertising and the coal seam gas industry

 

So confident is the coal seam gas industry of widespread political support across all three tiers of government and  so certain of the fickle attention span of the mainstream media, that its spokespeople knowingly utter falsehoods as easily as they breathe in and out.

 

They film an industry employee on land they don't have permission to enter in an effort to mislead the general public into believing that the employee is a farmer standing on his own land extolling the virtues of coal seam gas.

 

They make a blatantly false statement in print that has to be rebutted by CSIRO scientists:

 

CSIRO rejects claims made by APPEA regarding groundwater and coal seam gas

 

CSIRO rejects the claim made in a television commercial aired on Sunday 2 September that ‘CSIRO [and government studies] have shown that groundwater is safe with coal seam gas’.

• 4 September 2012

At no time has CSIRO made such a statement, and nor do the results of CSIRO research support such a statement.

CSIRO continues to undertake research to better understand the impacts of coal seam gas extraction on groundwater quality and quantity.

CSIRO has stated on the public record that coal seam gas extraction is likely to pose a ‘low risk’ to groundwater quality through contamination. CSIRO has also indicated that groundwater levels will fall as a consequence of coal seam gas extraction. In some places this could see aquifer levels subside by tens of metres for tens of years; in others it is likely to reduce aquifer levels by several metres for several hundred years.

CSIRO continues to undertake research to better understand the impacts of coal seam gas extraction on groundwater quality and quantity.

CSIRO became aware of the advertisement produced by Australian Petroleum Production & Exploration Association (APPEA) via a scan of social media on Friday 31 August and requested for the commercial to not be aired.

 

Because of this whatever-it-takes business culture which is loose with the truth, one has to question copies of print advertising the industry has displayed on one of its websites www.wewantcsg.com.au.

 

Who is this woman pictured below? Does she really come from Casino on the NSW North Coast? Is she a genuine school teacher or is she an industry employee or even a paid advertsing model? Is she related to someone who works for a mining company? Is she on the staff of a politician who is pro-coal seam gas?
Does she really want CSG?

Perhaps an NCV reader can answer these questions.

 

The Nannas gently chide Clarence MP Chris Gulaptis over his tacit support of coal seam gas mining

Clarence Valley Review 30 January 2013

The body language is telling. NSW Nationals MP for Clarence, Chris Gulaptis, is obviously not comfortable with the message. Which is unfortunate.

Given that the alleged $1.4 billion in direct expenditure Metgasco claims it will be contributing to the Northern Rivers economy over 20 years pales in comparison with the more than $1 billion tourism contributes each year to the region and, an initial 1,000 well wide gas field will inevitably have a negative impact on this section of the regional economy.

Metgasco starts to drill at Glenugie in the Clarence Valley

 

Metgasco appears to be leading a charmed life when it comes to government support as the coal seam gas industry appears to have the NSW Energy and Resources Minister Chris Hartcher and the O’Farrell Government in its corner.

 

The Managing Director's Presentation to the 13 November 2012 Annual General Meeting supplied to the Australian Stock Exchange is littered with favourable quotes from government and Chairman Nicolas Heath told this meeting that the political cloud over coal seam gas in NSW has been removed.

 

As I write Metgasco is said to be clearing land at Glenugie on the NSW North Coast so that yet more exploratory drilling can commence in the face of widespread community opposition.

 

South Grafton firm McLennans Earth Moving is said to be preparing the site and embattled construction company AJ Lucas contracted to undertake the drilling.

 

According to The Daily Examiner  today:

 

COAL seam gas miner Metgasco has downplayed the significance of activity at a site at Glenugie where it is preparing to take rock samples.

A neighbour, George Oxenbridge, was alarmed when he saw trucks and an excavator on the site on Avenue Rd at Glenugie yesterday.

Mr Oxenbridge said Metgasco had promised to notify people in the region before any activity took place, but nothing had been provided.

Late yesterday CSG protesters were considering a blockade of the site.

What is fascinating about this mining company’s relentless drive is that it is already operating at a considerable loss in a period when even it admits that it has been unable to attract a major player to farm in to its project and in a market which it told its shareholders is currently oversupplied with gas on the east coast of Australia.

 

In July 2012 The Australian reported that; UBS analyst Gordon Ramsay said the whole LNG industry was building projects in a high-cost environment. "The issue for the (CSG) industry is that when you get out of the sweet spots, the wells aren't as productive and that means you have to drill more wells or use more technology to drill more horizontal ones or you fracture stimulate and that means higher costs to get the gas out," he said.

By September analysts were downgrading Australian energy company valuations because of expected supply-based pressure on LNG prices and worries over the prospect that LNG export prices may drop dramatically.

 

While in October James Baulderstone, Santos Vice-president for Eastern Australia, in his turn admitted that the return to coal seam gas producers is not growing; The reality is that the price of natural gas has remained essentially flat for the past 10 years.

 

Metgasco’s monthly listed share price has reflected this overall situation – going from above 1.100 in 2008 to below 0.200 in 2012.

 

Despite its rhetoric for media and local government consumption, the company does not appear to have prospective customers knocking down its door and is hardly likely to find a ready market for residential customers given the impact of CSG industry costs on price are predicted to keep network and retailer charges rising.

 

The demand for domestic gas generally will remain relatively flat to slow growing through to 2027 according to the ACCC in its State Of The Energy Market 2009 report.

 

It would appear that Metgasco is likely to join other suppliers in finding that, even in a highly competitive and volatile international market, exporting its product overseas is the more attractive option.

 

That may create yet another headache for the Northern Rivers region as the company is still keeping its options open with regard to a floating LNG facility off the coast.

 

One thing which does stand out is that Metgasco is a small-time player in the Australian gas industry and one has a strong suspicion that local communities will see little benefit from its activities – now or in the future.

 

Metgasco might believe that politics no longer plays a part in its wildly optimistic plans, but all three tiers of government may find that this company’s activities will cause them considerable pain at the ballot box over the next decade.