Coal Seam Gas: an object lesson for Northern Rivers communities is coming out of Colorado USA

These photographs and videos set out below are coming out of Colorado in the United States and, show just part of the gas and oil fields flooded in September 2013.

Is this the level of risk Prime Minister Tony Abbott, NSW Premier Barry O’Farrell, Metgasco Limited, and its main backer ERM Power, are willing to expose the flood-prone Northern Rivers region to?

http://youtu.be/y_wNkPYGiRo

Colorado frack-site flooding - September 2013 from Mateo Albaricoque on Vimeo.
http://vimeo.com/74683562

The Daily Examiner 19 September 2013:

EmmaB

So Metgasco is heartened by what the Liberal/Nationals governments are saying at state and federal level and plans to "ride a rising tide" to corporate prosperity on the backs of local communities.

Perhaps its board members should give some thought to both past and recent North Coast flood event history.

Then look at those news photographs of literally one thousand plus flooded gas wells, miles of broken pipelines, drifting condensate tanks and floating chemical barrels contaminating Colorado countryside right now.

Of which one Weld County, Colorado resident stated in the media:

“We probably shouldn’t have had the oil and gas development in a flood plain to begin with. That would have been the prudent thing. But, it’s done now. Now we have deal with the result of having made that decision.”

I can assure Metgasco that Northern Rivers residents are noting the lessons those photographs teach.

The shady side of coal seam industry investment in Australia 2013

"He that lieth down with dogs shall rise up with fleas"

Attributed: Poor Richard’s Almanack

The Sydney Morning Herald 9 August 2013:

US banking giant JPMorgan Chase is facing parallel civil and criminal investigations over its sale of mortgage-backed securities before the financial crisis.

In a securities filing on Thursday, JPMorgan said it was notified in May by the civil division of the US Attorney’s Office for the Eastern District of California that it had preliminarily concluded that the bank ‘‘violated certain federal securities laws’’ in connection with the subprime mortgage-backed securities offered over 2005-2007.

The filing described a federal criminal inquiry in parallel to the civil investigation, but did not provide further details…

The company last week agreed to pay $US410 million to resolve US charges that it manipulated power prices in California and the Midwest…

Bloomberg.com ( Au8gust 2013:

JPMorgan, led by Chief Executive Officer Jamie Dimon, is seeking to resolve U.S. and U.K. probes after botched trades by its chief investment office fueled more than $6.2 billion of losses last year. Senate investigators concluded in March that the bank dodged regulators and misled investors amid souring bets by Bruno Iksil, a trader dubbed the London Whale because his positions were so big.

The Huffington Post 8 August 2013:

JPMorgan -- once a darling in Washington -- on Wednesday disclosed a raft of expected enforcement actions that have been broadly mentioned by the bank and its chief executive and chairman, Jamie Dimon, but never before in such detail. Once finalized, the enforcement orders may further damage the bank’s already-battered reputation and lead to heightened scrutiny of its practices.

The Consumer Financial Protection Bureau is investigating JPMorgan's collection and sale of delinquent consumer credit card debt, including its use of sworn documents to pursue bad debts. Kamala Harris, California attorney general, has sued the bank over similar practices.

The Office of the Comptroller of the Currency told JPMorgan it will punish the lender for its credit card collections practices and use of allegedly dubious documents, including for potentially cheating active-duty members of the military under the Servicemembers Civil Relief Act. JPMorgan has previously settled cases under the servicemembers act related to home mortgages.

In addition, the OCC and CFPB have told JPMorgan that they will formally discipline the bank for “unfair or deceptive” practices related to identity theft products it previously sold to consumers.

Perhaps in anticipation of expected settlements, the bank increased its estimate of possible legal losses in excess of its reserves by $800 million to $6.8 billion…

According to www.jpmorgan.com:

 J.P. Morgan’s Oil & Gas Investment Banking group provides investment banking services to the oil and gas industry on a global basis. Our clients include many of the world’s leading players and producers. The group is headquartered in New York, with additional offices in Houston, Calgary, Toronto, Europe, Latin America and Asia Pacific….

The Oil & Gas Investment Banking group covers the complete oil and gas value chain, which includes exploration and production, natural gas processing and transmission, refining and marketing, and oilfield services.….

Through its subsidiary, JP Morgan Nominees Australia Ltd,  JP Morgan Chase is one of the top shareholders in many companies involved in the Australian coal seam gas industry, including Metgasco Limited and ERM Power Limited.

It would appear that all the dogs have fleas when it comes to coal seam gas.

CSG industry begins to spend "multi-millions of dollars" to drown out Northern Rivers and other communities across Australia

Ad News 30 July 2013:

The peak body representing Australia's oil and natural gas producers has launched a multimillion-dollar public awareness campaign to warn of the dangers to the economy of a slowdown in the industry.

The Australian Petroleum Production & Exploration Association, which represents more than 80 full member companies and 250 associate member companies, kicked off the 'Our Natural Advantage' campaign last night.

A spokesperson for APPEA declined to comment on the exact amount but said the spend was "significant" and "in the multi-millions of dollars". The TV ads will be supported by print and radio……

Apparently Northern Rivers communities and residents who do not support the likes of Metgasco and ERM Power are unpatriotic and uncaring because we will not allow director-shareholders to fill their bank accounts at the expense of our own existing regional economies, amenity, lifestyle and an environmentally sustainable future for local families....

http://youtu.be/Bzm0cyJDbjU

Metgasco joins in the blamefest with an email round robin delivering this message from CEO Peter Henderson:

Metgasco Limited statement July 2013

Unfortunately for APPEA and Metgasco the Australian media is not always obliging:

Australian Financial Review Editorial & Opinion, 30 July 2013

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.

Hogan, are you with the Knitting Nannas or Nash's Nats? asks Saffin

Hogan, are you with the Knitting Nannas or Nash’s Nats? asks sitting Federal Labor MP for Page Janelle Saffin.

Nationals candidate Kevin Hogan really needs to answer that question soon - for his ability to represent those Northern Rivers communities taking a stand against coal seam gas exploration and mining is in question as reports continue to reveal his political bosses are not in the mood to not listen to party small fry like himself:

* The Coalition has stated that it wants to remove the additional layer of federal oversight for CSG projects should it gain power in September, and create a “one-stop shop” for approvals at state level.

* Worse still was Opposition resources spokesman Ian MacFarlane, whose own electorate of Groom takes in CSG proposals, calling on industry to work to ensure the controversy surrounding the gas sector rollout does not become an election issue.

He needs to further explain how he would rein in both his Coaltion colleagues and the industry given that in May 2013 even the Productivity Commission has observed:

the practices of some resource explorers (and some subcontract drilling operators and others) have tainted the reputation of the industry.

While just yesterday ABC News North Coast reported that an email trail revealed that NSW Liberal MP and Minister for Resources & Energy Chris Hartcher was so eager to accommodate Metgasco that he was determined to grant that company a CSG production lease ahead of approval conditions being established - apparently in an attempt to help Metgasco bolster its faltering share price.

A ploy which apparently worked - because in September 2012 Metgasco's share price did rally before once again beginning its inexorable fall.

http://www.abc.net.au/news/2013-06-03/foi-csg-ministerjpg/4730022

Update

The Daily Examiner 4 June 2013:

In another revelation, it seems Metgasco did not want to have any announcement about their production licence being granted before council elections on September 8, possibly because of the CSG referendum being held by Lismore City Council.

On 3 September 2012 Citicorp Nominees Pty Limited had 9,996,123 shares in ERM Power Limited which is Metgasco Limited's largest shareholder. This represented 5.93% of all issues shares and made the Commonwealth Bank of Australia its third largest shareholder.

Since then the Commonwealth Bank of Australia and its subsidiaries appear to have divested themselves of the bulk of these shares and the bank ceased to be a substantial shareholder in ERM on 7 May 2013. Has the bank also sold off its Metgasco shares?

What Murdoch University doesn't mention about one of its Senate members

This is what Murdoch University in West Australia states about Antonino Mario 'Tony' Iannello who has been an external member of its Senate since at least 2006:

Click on image to enlarge

What it does not say is that he has been a director of ERM Power Limited since July 2010 and is currently a shareholder in that company through what appears to be a family superannuation scheme.

ERM Power is the largest shareholder in Metgasco Limited, a coal seam gas exploration and mining company currently holding tenements on the NSW North Coast and operating without a social license from local communities.

ERM appears to have markedly increased its shares in Metgasco as part of a strategy to increase its slice of  the Australian east coast electricity supply market and with a view to taking advantage of conventional and coal seam gas production opportunities in New South Wales.

Given the widespread opposition to coal seam gas exploration and mining, it is no wonder Murdoch University does not have that association up on its web pages. Particularly as Tony Iannello is currently chair of the university's Resources Committee which has investment capability as part of its duties:

 a. Oversee the development of the University’s key strategy of building ‘wealth’ to support the University’s long term educational goals. 
b. Oversee the investment of all monies of the University (including monies held in trust). 
c. Exercise oversight of the finances of all University trusts and foundations. 

One has to wonder if Murdoch University itself is quietly investing in the coal seam gas industry, given the background of the committee chair.

One also has to wonder why Mr. Iannello, living in his plush WA suburban MacMansion with its pool and tennis court, would consider associating himself with a mining sector which has the potential to threaten water security, local economies, lifestyle and amenity in the far away Northern Rivers region of New South Wales.

Perhaps he considers ERM Power's directors fees too good to refuse?

Not a good look for the O'Farrell Government, Metgasco or ERM Power

 

A $200,000 NSW riot police operation to break an anti-CSG protest at Glenugie may not secure any convictions.

More than 20 protesters were arrested when police broke up a protest in The Avenue at Glenugie on January 1 to allow CSG miner Metgasco's trucks access to a test drilling site.

Three of the protesters facing charges of hindering police, obstructing a driver's path and not complying with police directions were acquitted of all charges yesterday in the Grafton Local Court.

Magistrate David Heilpern found Ingo Andreas Bruno Medek, of Blue Knob, not guilty of hindering police and obstructing a driver in a hearing before lunch.

After the break he dismissed charges against Ian Ronald Gaillard of Keerong and Benjamin Zable, of Nimbin, in a few minutes, sparking some celebrations among supporters outside the court house.

Mr Gaillard said the offences he and Mr Zable were charged with occurred when he disobeyed police instruction to give Mr Zable a bottle of water during the protest.

Outside the court yesterday the pair re-enacted their actions for the benefit of about 20 supporters who turned up for the court case.

Defence solicitors Steve Bolt (for Mr Medek) and Philip Wykeham (for Gaillard and Zabel) said the decision could have major ramifications for two test cases in Maclean Local Court on July 9 and 10.

Mr Wykeham said after the magistrate's ruling yesterday, police commanders will have to make a decision to go ahead with the cases, which are to be used as templates for charges against other CSG protesters arrested at Glenugie.

 

Read the rest of The Daily Examiner article of 8 May 2013 here.

When you live like this why would you hold back from assisting Metgasco Limited to turn sections of the Northern Rivers into 1,000 well-strong coal seam gas fields?

Trevor Charles St Baker and various members of his family - through ERM Power Limited where they and entities associated with them comprise an estimated twelve of the top twenty shareholders - have a considerable interest in Metgasco Limited a coal seam gas exploration and mining company with tenements on the NSW North Coast.

Therefore it might be suggested that the St. Baker family appear to endorse the potential for coal seam gas mining in the Northern Rivers.

This is the gated estate on which Trevor and some family members live:

…one of Brisbane’s most exclusive acreage enclaves…….From the postcard perfect gated entry, a sealed road meanders through magnificent community grounds studded with jacaranda and myrtle, past the tranquil lake area……The views are simply amazing, capturing Brisbane & beyond to Moreton Bay on a clear day.

The estate is understood to have two golf greens and a 12 ha communal park area.

Google Earth aerial view of part of Lot 2 on the estate

 

A far cry from the decidedly more modest homes in Casino, Doubtful Creek and Glenugie on the NSW North Coast, where Metgasco has been sinking some of its exploratory and pre-production wells.

A lifetime away from the tens of thousands of ordinary workers and returned servicemen and women who were born in, raised their families across, or retired to, this environmentally diverse and culturally enriched region.

Which might explain why ERM Power has been buying up Metgasco shares at a time when it is increasingly obvious that a great many local communities have rejected coal seam gas mining and production in the Northern Rivers and will never grant a social licence. It does not see these communities as having value.

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

Clarence Valley anti-coal seam gas protestors tell NSW Nationals MP Chris Gulaptis they are not amused

At least thirty concerned people and, perhaps as many as fifty before the protest ended, gathered outside the electoral office of NSW Nationals MP for Clarence, Chris Gulaptis, on Tuesday 25 September 2012.

 

This anti-CSG gathering met to emphatically, but politely, express opposition to NSW Government land use policies and potential coal seam gas exploration and mining in the Clarence Valley.

After the protesters had been in position for a good half hour or so, Mr. Gulaptis deigned to show himself and immediately set out to cast doubts about the legitimacy of concerns relating to coal seam gas exploration and mining.

One interested local queried the fact that Mr. Gulaptis appeared to have abandoned the precautionary principle when it came to the possibility that mining corporations might sink multiple commercial gas wells on privately owned land in the electorate he represents.

Of course Gulaptis has a history of favouring the mining industry, so his current attitude should come as no surprise.

It is understood that the Member for Clarence initially objected to his meeting with protesters being filmed by a participant and, as he is not known to be shy, one has to wonder if plausible deniability was what he hoped to preserve in this exchange with protesters.

Yesterday morning The Daily Examiner published this photograph and article online.

North Coast Voices also has these images of a somewhat uncomfortable Gulpatis meeting with ardent protesters - courtesy of our own K. Roo:

UPDATE:

Denise Deane of Yuragir Coast and Range Alliance on 27 September 2012:

Mr Gulaptis was humble to admit he indeed did not know a lot about the unconventional gas industry but was prepared to read the list of Australasian Accidents and Spillages related to CSG. He accepted literature and video educational material provide by the community. 

We remain deeply concerned that local productive industries, including the largest commercial fishing fleet in the state, will be badly affected by the by-products and pollution from the industry as has occurred in other parts of AUSTRALIA. It's astounding that we as stakeholders in shared resources such as our water, sustaining life and livelihoods have not been properly consulted and our concerns abandoned in favour of mostly foreign owned mining companies.

Fluffy assurances from CSG mining company advertising, such as Metgasco, that this industry is safe and can coexist with farming and healthy communities are inadequate. Metgasco already have a poor track record with spillages,  illegal dumping and leaking toxic ponds.

Mr Gulaptis asked for anyone directly affected by a neighbouring gas company to ensure they report to him. Funnily these were similar words from Mr Hazzard at Casino, but the crowd erupted when he said this as prevention is far better than cure. We will lock our gates. We do not want to have these huge problems.

6% of well casings fail immediately upon instalment, within 30 years, 50% of well casings fail and ultimately all of them fail. Cement is not going to withstand multiple horizontal seismic fracking and has a limited life span. 

ABC News on 26 September reporting on a gas project of which Chris Gulaptis approves:

A mining company with gas exploration licences for the Clarence Valley has just signed a multi million dollar deal with an energy company.

The almost $3 million dollar agreement between Red Sky Energy and ERM Power will fund drilling of up to nine gas wells.....
However the Clarence Valley Alliance Against Coal Seam Gas says it is extremely worried about the mining exploration deal. Spokesman John Edwards said if the project was only for nine wells in the valley, it would not be a major concern. "But if there's a resource discovered under any of those wells that will mean the companies will then move to the next level, which is a gas field," he said.
"We'll have dozens, possibly hundreds of gas wells clustered around in a very small area, connected to pipelines and roads.
"It's going to be horrific.
"If there was only nine wells to be drilled in the Clarence valley I don't think too many people would have concerns.
"But Metgasco have already admitted they want to put one thousand wells in the Casino area.
"This isn't just a single well coming up with conventional gas, whatever that is.
"It's unconventional and they're just playing with semantics, they really are."

Red Sky-ERM Power petroluem/gas titles PELs 457, 478 & 479 in the Richmond and Clarence valleys found at MinView:

 Click on map to enlarge