Correct, and further to your points MM and GB, the EIR which is on display through until end of Feb has been written such that it can be referred as a body of work / knowledge around the PCD site to the Independent Expert Scientific Committee (IEC) on Coal Seam Gas and Large Coal Mining Development under a National Agreement.
From Pg 15, Section 2.1.3 - Assessment Approval (LCK EIR):
Referral of Project Applications to the IESC
South Australia is a signatory to the National Partnership Agreement on Coal Seam Gas and Large
Coal Mining Development, and as a consequence, coal seam gas and large coal mining projects
must be referred by DPC to the Independent Expert Scientific Committee on Coal Seam Gas and
Large Coal Mining Development (IESC) for advice. Where projects under the Petroleum and geothermal energy act are to be referred to the south Australian protocols, it would generally be when an EIR and draft SEO are available.
Although small scale ISG is not clearly captured by the National Partnership Agreement, DPC may
refer this EIR (and the resulting draft SEO) to the IESC for advice. Consequently, this EIR aims to
provide the information necessary to support such a referral.
Take a look at the IESC website (http://www.iesc.environment.gov.au/) for reference, however they are exactly that - an independent scientific panel with specialist knowledge in coal and coal seam gas projects relating to groundwater. One of them from Flinders Uni was a supervisor of mine while studying groundwater - I have much respect for him - very clever man.
I don't believe this PCD approval is heading to the IESC to be honest, the additional drilling carried out over the summer was to support geotechnical confidence in the area directly around the new PCD site. All other studies forming the greater EIR remain unchanged given the new location. Koutsantonis has distanced himself from the decision already, so if science and fact are the basis for approval, then this thing is a formality. If the regulator and/or koutsantonis want greater confidence and/or distance from the decision, then the IESC is a great move for us shareholders and the project (albeit my options are probably cooked).
As far as this becoming an election issue goes, I have recently moved back to SA and most people here have no idea about the project, and its not being politicised less than 2 months out from the state election. Power and gas costs are a huge political issue here, however the libs, labor and xenephons team have really done nothing to win the next election based upon this. To date, in the local media, its really been 3 children in a sand box kicking sand in each others faces - not master politicians, more just childish personal attacks.
However, remember that the libs are pro development and rural communities, xenephon has been quoted as saying the state government should underwrite the development of a gas fired power station in the stated far north, and the lab government want to open up blue ribbon irrigation country in the sates south for gas extraction (which for what is worth I am opposed to - horses for course so to speak).
Further, in this state, aside from the ultra left greens, anyone with a couple of brain cells in their head knows the Leigh Creek area to be baron land, fit for nothing at all if it weren't atop one of the biggest coal fields in the country. This project is a no brainer, and any government that didn't approve it based upon its own regulatory framework has committed political suicide for a generation or 3. Remember this government is actively encouraging foreign investment, and is throwing money at modelling groundwater in the nearby Arkaringa basin for this exact type of technology. I cant in good conscience believe that CNE came out here, met Koutsantonis, and went home, gave us $20m for something they don't see as a sure thing.
Fact is LCK have done everything right to gain approval, the science speaks for itself. It is a world class deposit and model site for ICG/UCG.
If the project is not approved based upon a political decision, then unfortunately my home state is a lost cause.
Cheers
LCK Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
