We are all going to hell in a handbag!

 

Coal seam gas production approved . .

By Samantha Turnbull and Justine Frazier
(with Kim Honan and Joanne Shoebridge)

Metgasco has been granted approval for its first coal seam gas production licence on the Northern Rivers.
The announcement was made as the State Government also renewed several coal seam gas exploration licences throughout NSW, lifted a ban on the controversial 'fracking' process and revealed new regulations to govern the industry.

Metgasco managing director and CEO Peter Henderson said he was particularly pleased to have the company's production licence granted.  The licence is for what Metgasco calls the Casino Gas Project and Richmond Valley Power Station.  "We started work on it about five or six years ago and put two or three years of submissions in before we got development approval in 2010 and it's taken us 18 months from that point to get a simple production licence approved," Mr Henderson said. 

"We're delighted, we now have the green light to both explore for coal seam gas and to develop the Richmond Valley Power Station and in doing so to add value to shareholders and importantly provide work and opportunities in the Casino area, as well as a good supply of gas to local businesses."

The production licence covers an area of land 22km west-southwest of Lismore. Mr Henderson described the area as 'relatively small.' "It's only a few million cubic feet per day and compared to the overall reserve potential we've got in the area it's tiny," he said.  Mr Henderson said he hoped the gas produced would supply large local businesses such as Richmond Dairies and the meatworks. 

He also said Metgasco hoped to be granted many more production licences on the Northern Rivers in the future.  "We're hoping to supply a whole lot more gas to the local area, but to do so we'll have to go through the same process of putting development submissions together, seeking approvals and getting production licences... and that process will be more difficult that it was before because of the government's new regulations," he said.

Metgasco is still determining when they will begin production under their new approval.  "It's a case of drilling more wells, putting flow lines in, building power plants and so forth, it's not very exciting stuff," Mr Henderson said.  He also said, while the State Government has lifted its moratorium on 'fracking', Metgasco would not be using the process to extract gas under its latest production approval.

Future for hydraulic fracturing

Fracking uses high pressure water to fracture coals and rock seams deep underground to release natural gas

"We've got a range of opportunities in terms of drilling the wells however we're not proposing any fracking in this production licence," Mr Henderson said. 

However, he did not rule out 'fracking' in the future.  "The work we've done to-date suggests the top coal we're looking at is better developed by drilling horizontal wells, it's the most economic way of getting the gas out of the coal," he said.

"There's a possibility in the future when we want to develop some of the deeper coals we might find that fracking is the best way of proceeding and if we do that all those wells will be approved by government."

Community anger

The approval of Metgasco's production licence has angered Northern Rivers anti-coal seam gas campaigners.  Boudicca Cerese from the Lock the Gate Alliance said the State Government had ignored the concerns of the majority of the community.  "What the granting of these licence's clearly shows is that the government has capitulated to the vested interests of the CSG industry and this industry is now proceeding in the region without a social licence," she said.

"There's overwhelming opposition from the public to this industry and yet the government is going ahead regardless."  Ms Cerese also reiterated concerns about a lack of scientific evidence to prove that coal seam gas exploration and production was safe.  "The community has said all along 'where is the science that proves this won't impact our groundwater?' And it's not there," she said.  "All this is just being forced on the community without and proper investigation of the impacts."

Economic opportunities

The general manager of Richmond Valley Council John Walker has welcomed the approval.
"I think it's good news that we now all have clarity in the way the industry will operate and move forward," he said.  "I think people should be a little relieved.

There are very stringent and strong controls that have been put in place.  "We know there's lots of gas and we know there's lots of coal and if it flows at the rates they (Metgasco) would hope... you'll see enormous economic growth, you'll see great development in the Richmond Valley, lots of jobs, lots of opportunity... and infrastructure improvements as well."

Mr Henderson said between six and 10 jobs will be created as part of the latest approval, but he expected many more would follow if future production licences were granted.
Further Reading:  ABC North Coast NSW

Images @ Eminpee Fotography