Are QLD and NSW the new Gasland?

Green Left Weekly Sunday, November 28, 2010

Photo: Groomgreens.org

The gas industry is rapidly increasing its scope in the Australian energy market as, state and federal government approve drilling sites across the nation with little community consultation and relaxed environmental safeguards.

Natural gas will account for 33% of Australia’s primary energy consumption by 2030, compared with 8% from renewables, according to the Australian Bureau of Agricultural and Resource Economics (ABARE).

The approval process for major gas projects has come under scrutiny from the Greens. NSW Greens MP Cate Faehrmann referred to the NSW planning department’s process of application approval as a “rubber-stamping exercise”, said the November 19 Sydney Morning Herald.

Applications for gas exploration in NSW can be approved without an environmental impact statement. These are required only if the planning minister deems them necessary, given the minister’s powers under the Part 3A law.

The Part 3A law was passed in 2007 and grants the planning minister complete control over all aspects of the approval process for projects such as gas drilling. Breaches of environmental and heritage laws can be disregarded and there are no grounds for legal challenges.

When Frank Sartor was NSW planning minister in 2007, legislation was also changed to allow petroleum and gas exploration in state conservation and drinking water catchment areas.

Ironically, given his record, Sartor has since gone on to become the minister for climate change and the environment.

Similarly in Queensland, applications for major project gas work are submitted to the Department of Infrastructure and Planning (DIP) where the coordinator-general decides if an environmental impact statement is needed.

This is comparable to the loophole that exists in the US whereby natural gas drilling does not have to comply with the Safe Drinking Water Act under an exemption granted by the Bush administration in 2005.

In Queensland, there are eight projects awaiting approval from the DIP, including proposals for the liquefaction of coal seam gas to produce liquefied natural gas.

In NSW, 16 gas projects are currently lodged with the planning department and 12 gas projects have been approved this year, including expansions and amendments to current projects.

In the Illawarra region of NSW, 15 coal seam gas bores for commercial production were recently approved under Part 3A. Nearby residents were not told and three bores have already been drilled.

The NSW department of mineral resources requested that the 2009 Local Environment Plan rezone Sydney Catchment Authority lands west of the escarpment to permit coal seam gas production.

The unelected state government-appointed administrators at Wollongong City Council complied.

A confidential letter between Apex Energy and Peabody Metropolitan Coal was leaked by community activist Natasha Watson. It detailed the plans for the 15 bores, and to build a gas-fired power plant.

Watson found the letter online, buried in an indexed series of more than 100 planning documents and approvals across the Illawarra.

None of the plans had been disclosed to residents, so Watson leaked the plans to inform the community.

She told Green Left Weekly: “Approval was also sought and given by the Sydney Catchment Authority and Wollongong Council, however while Apex’s Part 3A was displayed for one month on the Department of Planning website. Their only consultation with the region’s community was the Darkes Forest land owners who’s approval on leases was required.

“Coal seam gas mining, with its insidious threat to the aquifers of our land, wide land clearing and the hideous required infrastructure, will be disastrous.

“The government state and nationally appear to be racing to approve and extract as much gas as possible before the foretold environmental risks and destroyed farmland are actualised.”

One document, dated August 6, showed that Apex Energy and Peabody Metropolitan Coal colluded to begin mining for gas under the Sydney water catchment.

The letter acknowledged that damage to the environment from coal seam gas mining was anticipated and that public attention was unwanted.

“Peabody”, the letter said, “would rather not be directly involved with any surface problems which may be brought to the attention of the Sydney Catchment Authority or other Landowners, and that any public attention not be to the detriment of their underground coal mining activities.”

The letter details an agreement to keep Peabody’s name out of potential bad publicity.

It went on: “Following the public scrutiny of the application for extension of the Metropolitan Colliery (now approved), and the problems they have had due to surface water disappearance and land subsidence, Peabody is very sensitive to having their name associated with any further resource development project … lest it attract unnecessary attention and further aggravation.

“Apex’s preferred position is also not to have Peabody (Metropolitan) directly associated with the gas extraction / commercialization operations.”

In response to these statements Jeff Angel, executive director of the Total Environment Centre, told the September 23 SMH: “The company admits its longwall mining plan in the protected Sydney water catchment was controversial and then moved to disguise its involvement in gas drilling.”

Angel also pointed to a broader exclusion of the public.

“What makes it even worse is that the Department of Planning was complicit in agreeing to remove the gas drilling from the Metropolitan mine impact statement which protected the company from bad publicity.”

New planning minister Tony Kelly told the September 23 SMH: “The department understands Apex had discussed the matter with Peabody prior to arriving at this decision. However, this was entirely irrelevant to the department’s assessment of either proposal.”

There is community concern that a controversial technique known as “fracking” could be used at a site near Warragamba Dam, now under application from Apex Energy to begin drilling in early 2012.

Fracking, or hydraulic fracturing, involves blasting a mixture of water, sand and other chemicals deep into the ground to fracture the bedrock and release coal seam gas.

Fracking to extract coal seam gas has been associated with contaminated drinking water in the US. But the Australian Petroleum Production and Exploration Association (APPEA) dismissed the threat on October 26, saying “the risk of contamination of groundwater is minimal” and fracking “has been used safely around the world for more than 50 years and in Australia for several decades”.

Fracking is now carried out in Australia in places including a Camden site run as a joint venture between AGL and Sydney Gas Limited, sites near Mackay run by Arrow Energy and in the Bowen basin at sites run by Bow Energy.

Origin Energy in the Surat Basin in Queensland has also used the technique.

Despite concern from the community, environmental groups and the Greens, the NSW department of industry and investment has not stopped fracking. It recently allowed fracking at a site near Lismore, run by Metgasco.

The current approval process for gas projects must be overhauled and a ruling must be made against fracking, or concern will only intensify as gas is used more as a fuel to generate electricity.

Mining companies, and local, federal and state governments, position it as a cleaner energy source than coal.

Some environmentalists consider it to be a “transition fuel”, while we develop renewable energies.

In an address to the Bow Energy Limited AGM on November 22, company secretary Duncan Cornish said: “Putting a price on carbon is high on the political and social agenda worldwide, including Australia, and this will result in increased demand for lower carbon emitting fuels such as natural gas.

“This is already resulting in gas-fired electricity generation trending from supplying peaking demand towards intermediate and ultimately base-load electricity generation.”

Carbon emissions from burning natural gas are lower than coal, but it is still a non-renewable fossil fuel.

Emissions and damage to the environment can’t just be measured at the point of power generation.

Watson told GLW: “Drilling, stimulating more methane production, and the huge waste of potable water, and then the resultant toxic waste water is far too great a price for the power produced.”

In addition, methane comprises 87% of natural gas, some of which is released into the atmosphere during mining and transportation. Methane is a powerful greenhouse gas, 20 times as potent as coal.

Climate science shows that the world needs a new approach to stationary energy — one that acknowledges the science and uses society’s resources to give us a chance at a safe climate future.

A recent report from the German Advisory Council on Global Change revealed that, to have a 67% chance of keeping global warming to less than 2°C higher than pre-industrial levels, the US would need to move to zero emissions or below in 10 years. The same follows for other rich countries with high per-capita emissions, like Australia.

In Australia, transitioning with gas comes with unnecessary risks, damage and emissions. The technology exists to make an immediate switch to 100% renewables.

Research by the University of Melbourne Energy Research Institute and Beyond Zero Emissions shows Australia could meet all its stationary energy needs from 100% renewable sources within 10 years.

Burning gas creates carbon emissions, and expanding gas as a fuel source means building outmoded infrastructure that commits Australia to another carbon polluting technology.

Josh Fox, director of Gasland, a documentary about the impact of coal seam gas mining in the US, told the November 13 SMH: “So when you burn the gas, sure, it’s cleaner than burning coal. But when you look at the life-cycle of developing it, you’re on a par with some of our dirtiest fossil fuels.

“They’re trying to say natural gas will save the world, when in fact it’s the opposite: natural gas is trying to destroy renewable energy by being its principal competition. This is fossil fuel, and fossil fuel is of the last century. This century’s job is to make sure that’s not what we’re dependent on going forward.”

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Demand for coal royalties to return

BY MICHELLE HARRIS STATE POLITICS  Newcastle Herald 1 Dec 2010

Nearly three-quarters of the lucrative coalmining royalties the state government collects come from the Hunter, the NSW Auditor General has reported.

The report showed the Hunter contributed $897 million, or 73 per cent, of the state total of $1.233billion paid to the government in 2008-09. If Gloucester’s $21million is counted, the region contributed 75 per cent of the coal tally.

The report, released yesterday, said the government had missed out on about $8million over the past five years because the Department of Industry and Investment did not have a robust process to identify what mining companies owed and to make sure it was paid.

The findings have prompted calls for an overhaul of arrangements for collecting royalties and for a fairer share of the Hunter coal industry’s multimillion-dollar annual contribution to the state budget to be invested back into the region.

Muswellbrook mayor Martin Rush said the report confirmed the Hunter was the ‘‘engine room of the state’’ but that none of the benefits were being returned directly to the region, as affected councils carried the burden of providing local infrastructure to support the booming industry.

Opposition industry and energy spokesman Duncan Gay said he understood the frustration of regions such as the Hunter which wanted a ‘‘fairer share’’.

Asked if a Coalition government would adopt a policy of a percentage of royalties being returned to the Hunter, Mr Gay said the details were being discussed but that the Coalition recognised that mining-affected regions needed ‘‘special help’’.

A NSW Minerals Council spokesman said it had been discussing a potential royalties-for-mining-regions scheme with ‘‘both sides of government’’, focusing on its support for infrastructure investment in regional NSW.

Industry Minister Steve Whan said the audit recommendations would be implemented, including a review of the merits of transferring the collection of royalties to the Office of State Revenue.

‘‘I am advised that if the [$8 million] figure is correct, it would equate to 0.27 per cent of the nearly $3.5 billion collected by the department [in five years],’’ Mr Whan said.

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More on the death of Thirlmere Lakes

The slow drying up of the five Thirlmere Lakes in the World Heritage Blue Mts National Park, possibly because their bedrock has been fractured by longwall mines nearby, has already been written up in the media, also filmed on ABC Channel 2 recently. To recap briefly, the lakes:

  • are a repository of Aboriginal culture
  • contain endangered or rare birds and flora
  • are an estimated 15 million years old
  • have been a much-loved tourist and recreational facility for generations

But though the drought here broke in 2008:

  • the lakes have been drying up for some years and are now sadly depleted
  • underground coal mines have been allowed within 700m – 900m from the lakes, 1998 – 2001
  • Wollondilly Council and the Rivers SOS Alliance have called on Water Minister Phil Costa to investigate
  • His NOW Department is investigating, although an independent inquiry is preferable
  • meanwhile boating, kayaking, canoeing, fishing and swimming is no longer possible
  • warning signs have been erected around the previous lake shores because of the deep mud now evident Continue reading
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Upper Hunter gas community group disbanded

Newcastle Herald

BY IAN KIRKWOOD

30 Nov, 2010 04:00 AM

The state government has dissolved an Upper Hunter coal-seam gas committee, saying it was time for a statewide review of the way such committees operate.

Primary Industries Minister Steve Whan said he had dissolved the Bulga Community Consultative Committee because it was time for ‘‘a comprehensive review of the charter for consultative committees across NSW’’.

But a spokeswoman for the minister confirmed last night that the Bulga committee was the only one being shut down.

‘‘Yes, that’s the only committee that’s been dissolved but it’s about what best reflects the area, nothing to do with the existing committee’s actions,’’ Mr Whan’s spokeswoman said.

The committee members were told of the decision during one of their regular meetings yesterday, a course of action that ‘‘outraged’’ committee member and Singleton councillor Alison Howlett.

Cr Howlett said it ‘‘seems more than a coincidence’’ that the letter from Mr Whan making the decision was dated November 16, a day after Singleton Council voted to restrict gas exploration in its local environmental plan.

‘‘I’m not against coal-seam gas mining as such but we need a brake on some areas,’’ Cr Howlett said.

Committee observer and Hunter Valley Protection Alliance spokesman Graeme Gibson said the committee had been punished for its ‘‘robust discussions’’ over gas company AGL, which was exploring in the area.

Mr Gibson said the committee would meet again on February 7 despite Mr Whan’s move to disband it.

Mr Whan said AGL’s Hunter Gas Project used two exploration licences and ran from Newcastle to Scone and Merriwa.

A spokesman for AGL said the company remained committed to community consultation.

‘‘We will remain open and transparent with the community about our activities while the review is undertaken,’’ he said.

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Lock the Gate Alliance

A new national alliance has been formed to oppose coal and methane gas exploration in Australia. They’re called the Lock the Gate Alliance.

They recognise, among other problems with coal and methane gas, the “long term cost of our water”. Sounds like a group Rivers SOS will be working with in future.

Individuals can register as supporters through their website, and receive updates.

Their launch is on December 6th, so keep an eye out for more news soon.

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Hunter stud owner shuts the gate to stop mining companies bolting across his land

Sydney Morning Herald
November 25, 2010

IT WAS the cradle of a national plan to regenerate farms and fight salinity, but a Hunter Valley horse stud is now a target for a new coalmine.

Peter Andrews developed the practice of “natural sequence farming”, which involves building earthworks and planting trees to mimic original landscapes, on his property at Tarwyn Park, near Bylong.

The practice, which was championed by the former governor-general Michael Jeffery and the businessman and thoroughbred breeder Gerry Harvey, has since been applied to hundreds of degraded Australian farms. 

But Mr Andrews has barred his gates to Anglo American Coal workers seeking to drill bores on the property to locate and measure the coal seams beneath it, and neighbouring landholders have followed suit.

Korea Electric Power Corp has said it intends to start mining in the area by 2016, although it has not specified whether it plans to develop underground or open-cut mines.

“We don’t know exactly what they’re proposing but the potential is that they will destroy the aquifer under the property by drilling,” said Stuart Andrews, Mr Andrews’s son.

“With the aquifer damaged, the place would just die.”

Mr Harvey, who owns a nearby horse stud, added his opposition to the mining proposal.

“Tarwyn is a living case study of how we can get it right when it comes to water use and sustainable agriculture,” he said in a statement.

“The place should be a bloody shrine, not a hole in the ground. The irony – and stupidity – of possibly losing a place like Tarwyn to mining is simply breathtaking.”

About 420 million tonnes of coal suitable for power generation are thought to lie beneath the horse studs, and the entire Tarwyn Park property lies within the area covered by the exploration licence.

Korea Electric Power Corp, which is majority-owned by the government of South Korea, bought exploration rights to the area from Anglo American Coal earlier this year for $403 million. The sale is yet to receive final approval from the Foreign Investment Review Board.

Anglo American Coal, which is continuing exploration work, said there was no chance the aquifer would be damaged or polluted by the drilling.

“The borehole when completed is grouted or cemented and is then completely impermeable and thus does not affect the water aquifer,” the company said in a statement to the Herald.

“Whether there is a true potential for a mine, whether open cut or underground, is contingent on information derived from the exploration drilling program.”

It said a plan to drill 18 test holes across Tarwyn Park and neighbouring properties would go ahead at “the earliest opportunity, pending approvals”.

It is understood the company has spoken to some landholders in the district and believed it had been granted access to drill bores in return for compensation, before the current stand-off.

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Rivers SOS petition lodged in parliament

Our Rivers SOS petition regarding mining impacts in the Southern Coalfields, launched at our community meeting in Picton Shire Hall earlier this year, has now been lodged with the Legislative Assembly by Brad Hazzard, Shadow Minister for Planning.

Brad Hazzard photo Rivers SOS had a delegation to discuss mining matters with him, including Drs Ian Wright and Ann Young. Brad Hazzard has on several occasions promised to abolish Part 3A planning laws.

There were over 1000 signatures in this petition. We will also give a copy to Phil Costa, Minister for Water. We thank everyone who contributed to this work.

The petition asks the Government:

1. To mandate a safety zone of 1 k around major river systems, to include their tributary creeks and streams and their feeder swamps, to prevent permanent damage caused by longwall mining.
2. To ensure that Panels of Experts advising the government on mine plans be balanced by the appointment of experts with no professional associations with the mining industry.
3. To ensure that heritage listed buildings, the Dharawal State Conservation Area, and the Special Areas of Sydney’s drinking water catchment not be undermined.
4. To ensure that the width of longwall panels under built-up areas and villages be no more than 100m.
5. To ensure that Stage 4 of the West Cliff emplacement area not be approved
6. To repeal Part 3A of the EP&A Act (1979)  and reinstate rights of appeal and community consultation.

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Quarterly meeting this Saturday

Rivers SOS is having a meeting this Saturday 27th November, in Lithgow.

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Singleton Shire Healthy Environment Group

Singleton Argus
19th November, 2010

FOR the first time a panel of state government representatives fronted the community in Singleton last Thursday in an open dialogue exchange seen by some as the start of a new era of dealing with coal mining issues.

It has been two years since the Singleton Shire Healthy Environment Group (SSHEG) was formed and last week’s meeting gave unanimous support to the group to continue to pursue health, environment and mining practice issues on behalf of the community.

While the meeting two years ago largely consisted of Singleton residents, last week’s meeting attracted an audience from a far broader area.

Residents from throughout the Upper Hunter and other mining areas in Gloucester and Wyong were joined by groups supporting the thoroughbred industry, those against coal seam gas exploration and activists planning a climate action camp at Liddell Power Station in December.

Dr Tony Merritt and Dr Phillipe Porigneaux, representing NSW Health, spoke about results already reported on in The Argus that shows concern for asthma and respiratory disease is warranted.

Dr Merritt went on to explain that the rates of all types of cancer in Singleton and Muswellbrook were no different to anywhere else in the state and that residents should find some reassurances in that finding.

Speaking on the air monitoring network, Department of Environment Climate Change and Water, Mr Mitchell Bennett said the network had the ability of not just determining if air quality was good or bad but would identify where there was a problem.

Some angst was voiced by the audience about the location and ability of the system to monitor the smaller particulate matter 2.5s and a new reason was offered to explain why the majority of the 14 air monitors will only measure pm10s.

Mr Bennett said pm10s fell to the ground more rapidly and therefore the new monitoring system would give a clearer understanding of where the dust was coming from.

In turn, this would give the department the ability to pin-point problems and to address them.

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Mining strategy delayed

Newcastle Herald
8th November 2010

The state government is lagging behind its timetable for a new coalmining strategy to address land-use conflicts across NSW as it continues to process plans for multimillion-dollar new and expanded Hunter mines.

A new cabinet subcommittee of five ministers that was announced in July to devise the strategy has yet to set its terms of reference.

The government said initially it intended to outline the strategy by October, and then by “the end of the year”.

It now says it “will not be rushed”, as the state election looms in March.

The apparent delay has prompted calls from the NSW Farmers Association, the Hunter Valley Water Users Association and the Hunter Thoroughbred Breeders Association for a freeze on plans for new mines and expansions, and exploration licences, until the strategy is done.

The strategy was announced in part as a response to a “cumulative impacts study” of mining on the village of Camberwell, which found dust levels at the village sometimes exceeded guidelines but on average were within limits.

It also followed the government’s rejection of the proposed Bickham mine near Scone.

The NSW Minerals Council urged the government to spell out which areas were off-limits for mining.

Planning Minister Tony Kelly chairs the subcommittee, which includes the portfolios of Health, Environment and Climate Change, Treasury, and Industry and Investment.

Since its formation, Paul McLeay has resigned as Mineral Resources Minister after admitting to accessing adult and gambling websites on his parliamentary computer.

The Newcastle Herald was told ministers were unable to agree on the terms and direction of the strategy.

A spokesman for Mr Kelly declined to comment, citing “cabinet matters”, but said the government wanted to “get it right” and expected the terms of reference would be endorsed by the end of the year.

The Planning Department was preparing background documents for public consultation later this year.

NSW Farmers Association Mining Taskforce chairwoman Fiona Simson said it was “in the dark” and was not confident that progress was being made, while several controversial mining projects were still being assessed.

The NSW Minerals Council said it supported a strategic plan.

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