The big four
coal seam gas companies in Queensland have had their major projects approved.
By the evidence presented firstly by the Courier Mail newspaper and secondly by
ABC TV Four Corners program the approval process left much to be desired. To
learn more of these events read an earlier post on this site, Gas
leak response. Recently the Crime and Misconduct Commission (CMC)
cleared any wrongdoing in the approval process mostly by a neat side step
of that matters raised '… do not fall within the CMC’s jurisdiction.’ For
further reading go to this highly referenced and detailed report
of what has occurred in the online Independent Australian article, How
the Queensland Government fracked the State
Despite its many flaws the big
projects to this point were subjected to an approval process. They had to
negotiate an Environmental authority (EA) with the government. They hired
consultants to prepare mind blowing large Environmental Impact Statements (EIS)
which were open to a public review and submission process. EIS look at more
than just environmental impacts; they also include impacts on the likes of
cultural heritage, transport, agricultural production and the very important
underground water impacts. Each coal seam gas company are developing tenements
they hold outside the areas approved within their current projects and to bring
each of these new areas into production one would have thought that they would
need to be scrutinised for any major impacts on conservation values or top
farming soils etc.; but apparently not.
Take the example of the British
Gas owned QGC project, Queensland Curtis Liquid Natural Gas (QCLNG) project
which was approved for mapped area that included 6,000 gas wells, CSG water
storage ponds, linking roadways, linking gas & water pipes, compressor
stations, processing plants, accommodation camps, export gas pipeline and a LNG
plant on Curtis Island.
The first photo (above) was taken at the
end of November 2013 shows the QGC Woleebee Creek processing plant under construction;
a massive piece of industrialisation lifting out what was once quiet cattle
paddocks west of Wandoan in what was once amongst Australia’s best beef
fattening country.
On the 6th November
the Australian Financial Review ran an article, BG
seeks clearance for extra 400 CSG wells, in which it was announced:
“BG Group
is seeking environmental approval to drill an additional 400 coal seam gas
wells near Wandoan to help maintain gas flows to its $US20.4 billion LNG export
project in Queensland once production from the initial batch of wells starts to
tail off.”
“A BG spokeswman
said the area involves about 50 landholders and the construction of up to three
gas compression facilities, water and gas gathering pipelines, access roads and
laydown areas in addition to the wells.
“The development is not expected to have any significant environmental impact, with about 94 per cent of the total permit area – or about 123,500 hectares – cleared of trees and used mainly for grazing,” he said.”
“The development is not expected to have any significant environmental impact, with about 94 per cent of the total permit area – or about 123,500 hectares – cleared of trees and used mainly for grazing,” he said.”
“Also included in
the project are access tracks, accommodation camps and gas and water gathering
lines, as well as storage ponds and pumping stations. Gas will be treated in
processing plants being built as part of the initial project.”
The AFR article does say that
this new smaller area to the existing QCLNG project is seeking environmental
approval; but what approval? According
to a presentation given by Rory Ross at Shine
Lawyers CSG information seminar at Wandoan on the 4th December,
any state approval will be no more than a tick and flick process with no public
notification or public input. Apparently there is a trigger for any project
with a footprint of above 2,000 ha to be subjected to scrutiny but no so those
below. QGC doesn’t consider the project requires an EIS as it has determined
that it has a 1,400 ha footprint.
QGC has to seek approval from
the Commonwealth under the Environment Protection and Biodiversity
Conservation Act (EPBC). I’m yet to find a link to the application but if you
type into a search engine these words - EPBC QGC Detailed description of
proposed action - you should find a PDF file to download.
The second image
(above) is sourced from this application, the green line shows the boundary of the new ‘400
well’ area; the light grey lines shows the pre-existing farm property boundaries
for the “about 50 landholder’s”. On the
map if you look to the south of the green boundary to old farm boundaries
marked in red, these are farms now owned by QGC and amongst them you will see a
gasfield area in green text named, Woleebee creek; this is the location for massive
the processing plant as shown in the first photo.
But how available is the Commonwealth process to public notification or
input? At the Shine Lawyer seminar the audience
was informed that the application was opened to public submissions for 10
working days on the EPBC website before the document was removed from the site.
Apparently the environment minister, Greg Hunt, has determined that the
application has to be subjected to further additional scrutiny but to find this
information is not easy.
Currently any scrutiny of these additional smaller areas is held by a thin
thread of the EPBC act and specifically the water trigger amendments introduced
by the former government to appease the former
independent MP Tony Windsor. There have been rumblings for the water trigger
removal and one vehicle for doing so could be the Productivity
Commission and then this last week there was the agreement between the States and
the Commonwealth for “One
stop shops” for environmental approvals.
The processes for approvals
for CSG projects in the past have been far from desirable; current arrangements
are not ideal and what for the future? There is certainly a lot of room for
improvement and while onerous, conflicting, repetitive and time consuming
regulation is not needed for all productive sectors of the economy there must
be in place effective scrutiny.
The last image was prepared by
Rory Ross for his presentation. The yellow triangles depict current CSG wells. Look
at the saturation to the south of the proposed new “400 well’ area to the Woleebee
Creek field; this is the footprint of a 750 metre well spacing, the same according
to the application will go in the new area to the north. Makes a mockery of a
1,400 ha footprint within the 123,500 ha area; even Roma farmer Peter Thompson
who often speaks out about the positives about CSG made this very important observation
in an October interview
in the Weekend Australian when speaking about reaching a value on compensation for
CSG activity on his land:
“At the end of
that time it was finally agreed he would be compensated for the impact on his
entire land, not just the area where the gas wells were. That saw him achieve
the level of payment he originally sought.
"It was
bringing it to an acceptance that the work impacts the whole property - the impact is not just around the gas
wells, the impact is across the whole place," Mr Thompson said.”
To meet an ongoing need for export volume of
LNG the CSG companies will progressively bring into production new fields. Going
by current indications they will be tacked onto the initial project piece by
piece, each below the 2,000 trigger. So watch out for the 1,999 footprint.
Previous related discussions
UPDATE #1- Follow up discussion
.
It now appears that the CSG/LNG companies deliberately grossly understated the amount of wells that they intended to drill so that it would not look as bad as it really will be.
ReplyDeleteNow that they have their approvals for the original number, they are now trying to get the "real" number needed (that they did not previously declare) to make their gas extraction viable.
If they were so inept that they could not determine how many wells were needed prior to approval, then let them now, go whistle dixie for any above the original number that was apparently their estimated requirement and which was deliberately understated. (Their Quote from above)
“BG Group is seeking environmental approval to drill an additional 400 coal seam gas wells near Wandoan to help maintain gas flows to its $US20.4 billion LNG export project in Queensland once production from the initial batch of wells starts to tail off.”
It appears from this statement that they knew that there would be insufficient for the future in the original approval but they chose to fudge the figures for the purpose of getting the approval. This in effect hid from the property owners concerned the real impact that they intended inflicting all along.
They appeared to be quite sure how many wells they would need in their application, now they say that there is not enough to carry on into the future. In other words they deliberately withheld the real facts and now that they have got what they originally asked for, they want to change all of the rules and get more by default.
This is only the Wandoan area. How many more of the CSG/LNG companies throughout the entire Gasfields, deliberately gave understated estimates in their original applications to get to an irreversible situation so that they could then seek to get perhaps thousands more CSG wells as BG group have now done.
The approvals process for mining and Coal Seam gas may be long and unwieldy. Stripping away green tape and red tape should always be an aim of governments.
ReplyDeleteHaving said that, Australia’s water resources are far too important not to be thoroughly scrutinised at several levels.
The fast-tracking of mining and CSG projects will lead to unforseen or downplayed consequences which will prove to be a problem in the long term.
The media has portrayed the issue of whether the power to delegate all approvals, including water approvals to the States as a battle between big business and environmental groups. The “community” may get some consideration. However, everyone, including the Productivity Commission is ignoring the long term need for a reliable source of water for agriculture.
The intent of the legislation is shown in the link below.
http://www.environment.gov.au/legislation/environment-protection-and-biodiversity-conservation-act/what-protected/water-resources
The central illustration in the article above shows at least ten private water bores that are subject to “make good” provisions. This would, I believe be in addition to those which are inside the tenement area and covered by the legislation.
“Make good” will certainly be better than no arrangement but its ease of use and efficiency is yet to be tested. We are yet to see whether effects on bores will be widespread or not, but widespread dependence on external water sources will not be tenable in the long term.
Property Rights Australia has always maintained that there is no external substitute that is equal to a reliable source of clean underground water which is suitable for purpose.
If it comes to a situation where water tables are dropping rapidly and problems are all too obvious there needs to be some authority to order a “stop work” until the problems are solved. This may very well be an action that is never required but gaps in the effectiveness of regulation will become obvious as time goes by. There needs to be authority to plug the gap rapidly. Already we have seen some examples of cases where regulation has not been up to the job of protecting everyone’s interest.