Metgasco hails NSW gas discovery

Bungled suspension exposes Anthony Roberts and puts Metgasco in the box seat
The senior NSW Nationals MP Thomas George got the fright of his life at the March election.
Under attack by the Greens over the issue of coal seam gas activity in the region during the campaign, George narrowly claimed the seat he has held since 1999
A year after the bungled suspension of its gas drilling licence, Metgasco has the government over a barrel.
He suffered a 21 per cent swing, turning Lismore from an ultra-safe Nationals seat into an ultra-marginal.
But at least he didn't suffer the same fate as his Nationals colleague Kris Beavis, who stood in Ballina after the retirement of former minister Don Page. The Nats copped a 27 per cent swing against them to lose Ballina to the Greens' Tamara Smith as the north coast revolted against the gas industry.
Some 10 months earlier, Energy and Resources Minister Anthony Roberts had issued an extraordinary media release, announcing the government's Office of Coal Seam Gas had suspended the gas drilling licence of listed energy company Metgasco near Bentley, on the north coast.
The Bentley site sits within the Nationals-held seat of Clarence but just outside the neighbouring seat of Lismore. The reason given was inadequate community consultation over the company's plans.
The really extraordinary bit was that Roberts had also made public that he had referred information sent to him about a Metgasco shareholder to the Independent Commission Against Corruption. Metgasco's share price crashed.
However, for the government it averted a looming public relations disaster. Over the previous weeks tensions had risen to boiling point over a blockade against Metgasco drilling at the Bentley site.
Police were on the verge of being dispatched to drag away anti-gas protesters - scenes that would have received plenty of ugly prime-time media coverage.
A lot has happened since then, including that ICAC has declined to investigate on the basis that the matter is beyond its jurisdiction.
Far more significant has been the damning outcome of a Supreme Court challenge Metgasco launched against the suspension decision.
In May this year, the court found that the Office of Coal Seam Gas had failed to give Metgasco the notification of its decision required by law - an incredible oversight. It forced the government into negotiations with Metgasco about compensation.
But on Tuesday, the company announced those talks had broken down and it would sue the government for potentially tens of millions of dollars and seek to resume drilling at the Bentley site.
It's difficult to overestimate just how badly the Baird government have handled this issue. The question is, why?
Had the government really panicked in the face of the rising Green vote to the extent its mistake now risks spraying tens of millions of dollars in taxpayer funds up against the wall?
As fate would have it, Roberts faced budget estimates on Wednesday where, naturally, he was grilled about how this could have come to pass.
Labor's Adam Searle sought the basic details: how did the decision get made, by whom and what was Roberts' involvement?
Each question was deflected with the claim the details could not be discussed as they will be dealt with in Metgasco's forthcoming suit. Indeed they will.
But the prospect of Roberts being forced into the witness box to explain who was ultimately responsible for such an appalling decision makes it difficult to believe the government would let it get to court.
So a year after the bungled suspension, Metgasco has the government over a barrel on two counts.
One: If the government is reluctant to go to court, it is more likely to settle for a sizeable compensation figure or buy out Metgasco's licences for an equally large amount.
Two: the looming federal election.
As part of its announcement it will resume drilling at Bentley, Metgasco told disallowed it had received assurances from the government that there will be police protection.
Greens MP Jeremy Buckingham has already declared that if Metgasco returns "the community will be there to meet them in large numbers".
Bentley falls within the federal seat of Page, held by the Nationals' Kevin Hogan. Hogan - and the federal Nationals - will presumably be looking on with horror at how things are playing out.
So too will NSW taxpayers, whose money is about to be spent fixing a monumental blunder for which Roberts is either directly or ultimately responsible.
http://www.smh.com.au/comment/bungl...metgasco-in-the-box-seat-20150903-gje5sp.html
http://www.smh.com.au//breaking-news-business/metgasco-hails-nsw-gas-discovery-20091130-k0b2.html

It makes me laugh - all cause of Showbags