Qld puts coal gas firms on notice

http://www.jellinbah.com.au/rg_tanna.htm

Related links

• Kingaroy win over Cougar

THE Queensland government has demanded that three underground coal gasification (UCG) projects provide the esults of past water quality testing.

Cougar Energy was ordered to stop its UCG trial near Kingaroy last week, after tests conducted in July found traces of a known carcinogenic, benzene and the toxic chemical toluene in bores near the plant.

Affected residents have been told not to drink the water.

Cougar has refuted claims its Queensland underground gas project could have leaked carcinogenic chemicals into groundwater more than four months before authorities were alerted.

New test results received on Sunday have found no traces of the dangerous chemicals.

Natural Resources, Mines and Energy Minister Stephen Robertson on Monday met with senior representatives of the UCG sector in Queensland to discuss the implications of the investigation under way at Cougar Energy's trial plant near Kingaroy.

Mr Robertson told company representatives from Linc Energy, Carbon Energy, who run pilot projects near Chinchilla, as well as the Queensland Resources Council, that while the circumstances of each project would be evaluated individually, Cougar Energy contamination incidents raised concerns for the whole sector.

"I indicated to both companies and the QRC that the government remained committed to undertaking a formal environmental evaluation of the underground coal gasification process at each site in Queensland," Mr Robertson said.

"Our independent scientific expert panel will be undertaking a complete review of all three trials."

The three UCG projects have been progressing under a supervised trial which was due to end in 2012.

"Today I made it clear that each company needs to understand we will take no risks when it comes to environmental performance and this will be the key factor in determining the future of underground coal gasification in Queensland," Mr Robertson said.

"This was acknowledged and agreed to by the companies."

Director-General John Bradley said the Department of Environment and Resource Management (DERM) on Monday continued the review of water quality results received on Sunday and issued further statutory notices requiring the UCG companies to produce past water quality testing.

"The government will only consider a proposal from Cougar Energy to resume its operations after the results of the Environmental Evaluation and the review by DERM and the independent scientific expert panel can be considered," Mr Bradley said.

Mr Robertson and Mr Bradley will attend a range of meetings in Kingaroy on Tuesday afternoon, including a community meeting.