daily reckoning update...

--First, there was clarification yesterday-but no real resolution-to the Queensland government's policy on underground coal gasification (UCG) and coal seam methane (CSM). Mines and Energy Minister Geoff Wilson apparently told the Australian yesterday that there was no three-year moratorium on production licenses for UCG operators.

--But it wasn't exactly a ringing endorsement for would-be UCG firms, either. Wilson said, "These projects are in a pilot phase which is why they have a conditional tenure and that gives no automatic right to a production tenure at a later point...We're not about to give the green light to underground coal gasification projects, especially where any of them may affect the Great Artesian Basin, unless we're convinced it's in the best interests of Queensland."

--Hmm. What is the Minister up to? The apparent trouble is that the UCG companies and the CSM companies may be after the same coal. The government is in the position of choosing one industry over the other. Do you think the CSM players are lobbying the government?

--We're not sure what kind of future UCG has in Queensland. That appears to be up the government and not the marketplace. But we're pretty sure it has a future anywhere you find a country has coal but needs transportation fuel. Much more on this story in today's update for Australian Small Cap Investigator readers.