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April 2nd, 2013 
Peter Nolan
Updated
In the space of 24 hours, the coal seam gas industry has been hit by claims of flawed approval processes, calls for a moratorium on all new projects and one company suspending its operations in New South Wales.
Last night, the ABC’s Four Corners program was told by a former Queensland public servant and senior environmental specialist that she faced an impossible task trying to conduct environmental impact assessments on two huge CSG projects.
Simone Marsh said the CSG developments of QGC and Santos came before her with important basic information missing, including where the infrastructure was going to be laid and which environmentally sensitive areas were going to be impacted.
She said she was pressured to rush through one assessment.
In statements issued today, both QGC and Santos said assessments of their projects were in line with State Government regulations.
“It would have been inaccurate and premature to provide the specific location of all infrastructure at the EIS (environmental impact statement) stage as negotiations with landholders had yet to occur,” Santos said in a statement.
“Similarly, undertaking detailed environmental and cultural heritage survey work across such a large area, most of which will never be disturbed, would have been impractical and potentially misleading.”
“As a result, the Queensland Government developed an adaptive management framework, where more information would be supplied and assessed as more specific information on locations is decided.”
These projects are so big and so complex, which would normally be an argument for more detail. Yet they say, because they’re so big, we’ll give you less information. It’s a ridiculous approach.
QGC also issued a statement, in which it said: “The exact locations of wells, pipelines and other infrastructure depend on detailed negotiations with individual landholders as well as cultural heritage and environmental constraints.
“Gas companies must be granted environmental authorities and petroleum leases before these detailed negotiations with landholders can occur.
“And, before these authorities and leases can be granted we are required to have our environmental impact statement approved.
“As the process evolves, companies provide the specificity required by regulators.”
Santos praised the Queensland Government’s “adaptive management” approach, saying it required baseline studies and measures which could be refined over time.
But Dr Chris McGrath, a senior lecturer in environmental regulation with the University of Queensland, says he is concerned that within the coal seam gas industry, “adaptive management” is on the rise.
“It would have been absurd a few years ago but now it’s the new normal… these projects are so big, and yet they say because they’re so big we’ll give you less info, it’s a ridiculous approach.
“Landholders find it very difficult to lodge an objection.”
Moratorium
The Four Corners revelations have prompted the Greens to call for a moratorium on all new CSG projects as well as suspending expansion plans for any existing developments.
Senator Larissa Waters says the water impact of existing projects should also be re-assessed.
“Really the best that can be legally hoped for is that those companies should now do that work to ascertain their impacts on water.
“The Government and the public should know what those impacts are and then use that information to guide future decisions.”
Together, the QGC and Santos projects are worth $38 billion and took three and three-and-a-half years respectively to be approved by the Queensland Coordinator-General.
Both companies say they complied with requests for information throughout their approvals process.
But federal independent MP Tony Windsor says the New South Wales and Queensland governments have created uncertainty in the coal seam gas industry by taking an “ad-hoc” approach.
He also says the controversy could have been avoided if the Federal Government had been able to exercise additional powers during the approvals process.
Projects frozen
The Commonwealth has recently introduced new environmental laws covering CSG projects, but those laws were not in place at the time the two big Queensland projects were assessed.
The NSW Government too has introduced stricter regulations on the industry – including a ban on drilling near homes.
That appears to have been something of a catalyst for one CSG company which has announced it will freeze all field operations in NSW and cut 70 per cent of its workforce.
Dart Energy says it is putting its projects on hold until a new policy approach is adopted in Australia.
And that is despite a court victory for the company last week allowing Dart to resume drilling at its controversial Fullerton Cove operation near Newcastle.
Company chairman Nick Davies says Dart’s board is extremely disappointed with the uncertainty created by the State and Federal government decisions.
He says the consequences are that investment is leaving the country and Australian jobs are being lost.
But Fullerton Cove residents spokesman Lindsay Clout says it is wonderful news after a long fight against CSG drilling in the area.
“I was stunned because it just came out of the blue, but, after it sunk in, I’m feeling quite elated,” he said.
Dart Energy says it will now focus on projects in the UK, where the government, it says, is actively seeking to support the industry.
Topics:
oil-and-gas,
industry,
states-and-territories,
environmental-impact,
environmental-management,
qld,
australia
First posted
Source Article from http://www.abc.net.au/news/2013-04-02/gas-companies-respond-to-approval-process-allegations/4605044
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