Cougar Energy hopes to reopen pilot plant December 13, 2010 -...

Cougar Energy hopes to reopen pilot plant December 13, 2010 - 3:14PM http://www.smh.com.au/business/cougar-energy-hopes-to-reopen-pilot-plant-20101213-18v01.html

A company forced to stop an underground coal gasification trial in Queensland says its hopes to get the nod from the government next month to recommence its operations.

The Queensland government suspended Cougar Energy's project near Kingaroy in mid-July after underground water at the site and a neighbouring property was found to be contaminated with benzene and toluene.

The Department of Environment and Resource Management has already rejected an environmental report provided by the company.

Advertisement: Story continues below Since then, Cougar Energy promised to install more monitoring wells and provide extra data in a bid to have the plant reopened.

In a statement to the ASX on Monday, Cougar said it had submitted the final six environmental reports required by the government on Friday.

It said the reports were the culmination of extensive work over the past four months and water testing since November from new monitoring bores close to the pilot plant had shown no sign of the chemicals.

"DERM will advise by 17 January 2011 whether or not to accept the company's environmental reports," the statement said.

However, Cougar said DERM had the right to request further submissions and action by the company before it made its decision on whether to allow the project to recommence, which sees coal burnt underground and the gas captured.

"Cougar Energy continues to co-operate and work with the Queensland government and DERM to enable the re-commencement of the Kingaroy trial project at the earliest possible time," the statement said.

Climate Change Minister Kate Jones has vowed not to let the plant reopen until the government's concerns are satisfied.

DERM has been sought for comment.