From http://www.upstreamonline.com/epaper/article1358257.eceLinc...

From http://www.upstreamonline.com/epaper/article1358257.ece

Linc Energy has hit out at what it calls "misguided" charges filed against it by Australian authorities over alleged environmental damage at a pilot underground coal gasification (UCG) plant in Queensland.

The Brisbane-based explorer has vowed to defend itself against the charges filed by the state's Department of Environment & Heritage Protection in relation to alleged breaches at the plant near Chinchilla.

The department said on Friday that a "detailed nine-month investigation" had led it to file charges against Linc for allegedly "causing serious environmental harm".

In a statement sent to Upstream later on Friday, Linc hit back, saying: "The company is disappointed the department has never attempted to fully understand the (UCG) process and these charges are misguided.

"In addition, Linc Energy is disappointed that the department has not afforded it the opportunity to respond to the allegations throughout the ‘detailed’ investigation."

It is understood that the first Linc heard of these charges was when the Queensland authorities issued a statement on the summons at around 17:00 local time on Friday.

"Linc Energy would like to place on record that at all times the company has complied with groundwater monitoring regulations and has reported to the department as required.

"The charges relate to older style UCG technology that Linc Energy was researching several years ago and is no longer pursuing. Linc Energy’s developed, and commercial ready, UCG technology is not included in these allegations.

"The company completed its (research and development programme) at Chinchilla in October 2013 and is in the process of safely decommissioning the site."

Queensland Minister for Environment and Heritage Protection Andrew Powell had said in the department's statement: "While the harm allegedly caused to the environment is considered serious, the information available to the department suggests there is no immediate risk to neighbouring landholder water bores."

The explorer confirmed this was the case.

"Linc Energy will defend (itself against) the allegations and reserves all of its legal rights," it continued.

It also contended that is believes the charges do no affect its commercial or ongoing operations.

Queensland authorities are continuing their probe into Linc, Powell adding: "We take matters such as these very seriously and there are severe penalties for companies or individuals that fail to meet our high environmental standards."




So the Department of Environment and Heritage Protection conducted a detailed nine month investigation in relation to LNC's operations at Chinchilla and this is the first shareholders are hearing of it? It stands to reason that management were aware of the investigation and, it appears, were only surprised by the fact that they were not notified of impending charges before a departmental release indicating such a course of action.

That the department has reached the conclusion that Linc Energy has caused 'serious environmental harm' what does this say about the competence of the Dept. of Environment and Resource Management in the carrying out of their duties? According to the company the charges related to an older style of UCG from several years ago? Are we to believe that the DEHP have uncovered in nine months what DERM could not over several years? Or are we to believe that this has now only become as issue because of some hidden agenda?

Will be interesting see how transparent the government becomes in relation to this issue by the level of detail revealed in regard to these accusations… Or if it will be some sort of witch-hunt from behind closed doors. It's a serious accusation and will require the government to be absolutely candid with the environmental evidence.