Bargain Buy for NSW Govt

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Critics fear gas flame still burns in Northern Rivers despite Metgasco departure

Updated yesterday at 4:46pm
PHOTO: Anti-coal seam gas protesters say Bentley outrage has set a precedent ( Boudicca Cerese)
MAP: Lismore 2480
On the New South Wales north coast, news that gas company Metgasco will leave the area has many believing the region is now truly gas-free.
But others say the flame has not quite been extinguished.
A $25 million offer to buy back three petroleum exploration licences in the Northern Rivers was accepted by Metgasco shareholders on Wednesday.
Bentley farmer Peter Graham said the decision might mean the end of Metgasco, but he believes the government will hold on to the exploration licences for profit.
"The government now have a cheap geological map of the underlying resource that's sitting there, it's cost Metgasco $110 million, the government's got it for 25 (million)," Mr Graham said.
"Can you imagine what that will be worth for the government to sell in 10 years or 20 years time?"
New South Wales Resources Minister Anthony Roberts told the ABC the PELS (Petroleum Exploration Licence) will no longer exist.
"Well those PELS, once we buy them back and the money will be transferred in the next couple of days, there's some rehabilitation that will take place over the next couple of weeks on two wells there, but those PELS will cease to exist," Mr Roberts said.
As for the future of the gas industry in New South Wales, Mr Roberts said full community consultation would be part of any plan.
"We are looking at pausing, resetting and recommencing the gas industry but it will be on the terms of the people of New South Wales," he said.
"What comes into play now is the strategic release framework that will be independently chaired and controlled.
"That will ensure that areas will only be released following an assessment of economic environmental and social factors with the community consultation conducted up front."
Lismore's Mayor Jenny Dowell said there was a strong feeling that the decision was the end of the gas industry in the Northern Rivers.
"I am confident that that is the end of this industry here and I think there are many more jobs in renewable energy."
"I think this is an ideal area for that, so I am confident that we will not see coal seam gas or unconventional gas here in the future but I can't ever say never," she said.
Metgasco managing director Peter Henderson said the decision to take the government's offer was not a resounding one, with about a third of shareholders voting against.
"There are a lot of shareholders angry about the vote, a lot of shareholder who voted for the $25 million are also very angry and disappointed, no-one is feeling particularly good about it," Mr Henderson said.
Mr Henderson was steadfast in his feelings that the industry had a place in the region.
"We think the community overall endorses our industry, overwhelmingly," he said.
Metgasco will now take its interest and investment elsewhere.
"We are looking at new business opportunities around the world (in oil and gas), probably in Australia but not in New South Wales and not in Victoria," Mr Henderson said.