kingaroy ground water given all clear

Queenslands Department of Environment & Resource Management (DERM) has lifted restrictions on the use of ground water bores around Cougar Energys pilot underground coal gasification (UCG) plant, near Kingaroy.

Josh Lewis 11 August 2010 04:08 GMT

Last month the department ordered Cougar to close the plant after water quality tests detected carcinogenic chemicals, benzene and toluene, in groundwater monitoring bores. DERM also issued a warning to rural property owners within a two kilometre radius not to use water from their bores for human consumption or stock watering.

However, today DERM managing director John Bradley said the department had lifted the restrictions on water use after the latest testing results showed there was no concern with water quality in local bores.

While the latest tests show low levels of benzene and toluene at the Cougar Energy plant itself, these are below Australian drinking water guideline standards and only trace levels of toluene can be detected at some neighboring bores, he said.

DERMs scientific staff consider the groundwater quality at neighbouring bores is comparable to the water quality shown in tests undertaken before the UCG plant commenced.

The latest results come from the fifth round of testing, since the plant was closed, from bores and spring fed sources within two kilometres of the plant which have consistently shown benzene and toluene at levels less than the Australian drinking water guideline standards.

Bradley said that the testing results would now be considered as part of the Governments current investigation to potential breaches of an environmental authority by Cougar.

The department said its order for the company not to burn underground coal would remain in effect until an environmental evaluation to provide detailed information about Cougars water quality monitoring was completed and reviewed.

Queenslands two other trial UCG sites at Chinchilla, owned by Carbon Energy and Linc Energy, have also been ordered to carry out evaluations but have been given permission to continue their operations during the process.

An independent panel will assess the evaluation results to determine if the plants can operate without environmental harm or face the risk of being shut down permanently.

The uncertainty surrounding the future of the Kingaroy plant caused Cougar to terminate the employment of a number of staff at the Kingaroy plant and in its Brisbane and Melbourne offices as it took steps to consolidate its financial position.

Cougar was also granted an extension for the voluntary suspension of trading on the Australian Securities Exchange until 18 August, pending the completion of its ongoing negations for a new funding package.

Published: 11 August 2010 04:08 GMT | Last updated: 11 August 2010 04:08 GMT