Coulton’s Catch-up 5th September – Coal Seam Gas
05-September-2011
Coal Seam Gas (CSG) exploration is rapidly expanding in NSW. Approximately 25 per cent of NSW is currently under CSG exploration licences. A large part of these licences are located in the Parkes Electorate, in the regions of Moree, Narrabri, Bellata and Tooraweenah. These areas are recognised as possessing some of the most productive farming land in Australia, if not the world. These areas also have complex underground water aquifers that form part of the Murray-Darling Basin.
The potential of the CSG resource is significant. Estimates from the CSIRO suggest that Queensland and NSW collectively have enough CSG to power a city of 5 million people for more than 1000 years. More notably, CSG electricity generation also has the ability to reduce CO2 emissions by up to 70% compared with coal. With the world’s known oil reserves reducing, CSG will become a much sought after commodity.
Coal seam gas extraction is relatively new to Australia. The technology used in extraction of the gas is complex and the possible risks associated with the extraction of CSG should not be ignored. This industry is shrouded with much uncertainty and more needs to be learned in terms of any potential damage that can be caused. In Queensland there have been well documented cases of leaking wells and contaminated water. Therefore the scale of planned development of this industry in NSW alone means that the chances for harm to be caused cannot be brushed aside.
The NSW Government has taken positive steps to balance the needs of mining and agriculture. They originally put in place a sixty day moratorium for new licences, which has expired, although they have retained a ban on the controversial CSG extraction process of hydraulic fracturing or "fracking" until the end of the year. The NSW Government is also developing stringent groundwater regulations, reviewing fracking standards and reviewing access arrangements.
The State Government is also implementing strategic land use plans which will identify and protect productive farmland in consultation with farmers, rural communities and resource companies. I believe there are some sections of productive land that are of such significance that they should be given additional safeguards. The issue of establishing the protection of prime agricultural land needs to be dealt with as a matter of urgency.
The concerns and angst of communities and landholders who are affected by CSG exploration are understandable. These people have concerns about the impacts on the environment, water and their health. However, it is vital that everyone remains engaged in the process of navigating through these issues. Confrontation and anger, whilst common responses to a difficult issue, generally lead to poorer outcomes. If communities are torn apart and friendships between long time neighbours are destroyed, we will have lost the one thing that makes our way of life special.
I acknowledge the important role that mining plays in the Parkes Electorate. The economic and social benefits that come to communities through mining are significant. I think many people in the electorate would recognise this fact. However, the CSG industry has to involve the community in local decision making and inform communities of their intentions. On the basis of do no harm, no CSG extraction should proceed until safety is assured.
It is important that we come to a balanced approach which acknowledges the importance of the mining industry to Australia’s economic future but which protects agricultural land and respects the rights of farmers. Ultimately, mining in high agricultural production areas needs to be monitored closely, as we cannot undo any harm or destruction of the land or water. Australia needs a sound mining sector now and into the future, but not at the expense of our significant prime agricultural land.