The heavy hand of the Queensland Department of Environment and...

The heavy hand of the Queensland Department of Environment and Resource Management has been raised against the UCG industry.

John Harkins in his July 8th interview on Board Room Radio provides a timely insight into the attitude of the State Government towards UCG. Harkins ponders the imminent decision which CGE will need to make on whether to commit to project development within Victoria or Queensland.

"Victoria may be across the line sooner rather than later because they dont have the confusion of a policy, which in our view is heavily weighted in favor of coal seam methane in Queensland, and to a large extent tends to shutout UCG project development," said Harkins.

The policy bias in favor of coal seam methane was in stark evidence during the heated turf war between UCG and CSM over the question of land tenure in Queensland. The battle developed over competing claims resulting from overlapping licences issued under the Mineral Resources Act and Petroleum and Natural Gas Act.

The sector which benefits from this weeks decision by DERM is undoubtedly the coal seam methane producers.

Governments can provide a regulatory framework which facilitates or frustrates development. I suspect that Harkins decision on which State to invest has been made a whole lot easier - anywhere but Queensland.