another coal seam gas chemcial scare

http://news.smh.com.au/breaking-news-national/another-coal-seam-gas-chemcial-scare-20101109-17kz5.html

Another coal seam gas chemcial scare
November 9, 2010 - 9:04AM

AAP

Arrow Energy says cancer-causing chemicals have been found in three of its coal seam gas wells in central Queensland.

Routine tests at the Moranbah gas project, west of Mackay, have detected traces of benzene in three of 60 fluid samples taken, the company said.

Arrow has ordered independent tests to verify the results but says it's unlikely the chemicals have spread to water bores.
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"There is no registered water bores within five kilometres of the three wells," the company said in a statement.

The company said it would test bores closest to the area as a precaution and had notified the state government and local councils about the chemical find.

Benzene, toluene, ethylene and xylene (BTEX) can be naturally occurring and can also be found in a range of oil-based products including lubricating oil, diesel and petrol.

It is used by some companies in the coal seam gas industry to help fracture rock seams and to extract gas, but that process may soon be outlawed in Queensland.

The government on October 5 proposed new laws banning the use of BTEX in the hydraulic fracturing process. The legislation is currently before parliament.

Arrow insists it does not use BTEX in it the fraccing fluids (which are pumped into a well under high pressure).

"More research will be conducted to determine if the benzene is naturally occurring, or introduced by other means," the company said.

The scare comes just three weeks after BTEX was found in bore water at Australia Pacific LNG's coal seam gas project in the Surat Basin, in southwest Queensland.

The chemicals were later found to be at safe levels.

And in mid-July, the Queensland government suspended Cougar Energy's underground coal gasification project near Kingaroy, in the state's southeast, after underground water was contaminated with benzene and toluene.

? 2010 AAP