From Central Telegraph"LNG projects attack Cougar plantRussel...

From Central Telegraph

"LNG projects attack Cougar plant
Russel Guse | 20th July 2010
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COAL Seam Gas (CSG) companies pushing to pipe liquefied natural gas (LNG) from the Surat Basin to Gladstone have distanced themselves from a Kingaroy plant that has been shut down after tests found dangerous chemicals may had been leaked into underground water sources.

Late last week, the Department of Environment and Resource Management (DERM) ordered Cougar Energy to close its underground coal gasification (UCG) plant near Kingaroy, after test bores detected benzene and toluene in the groundwater.

A spokesperson for QGC, the company behind the Queensland Curtis LNG (QCLNG) Project which was last week asked by Federal Environment Minister Peter Garrett for more information on its environmental impacts, said UCG and coal seam gas extraction were not comparable processes as UCG burns coal underground while CSG extracts gas.

"We have long been concerned about the environmental acceptability of UCG and its potential to pollute groundwater," the QGC spokesperson said.

"QGCs coal seam gas extraction operations in the Surat Basin do not involve the use of carcinogenic chemicals.

"We are confident that our operations pose no risk to groundwater supplies on which communities rely."

A spokesperson for Arrow, another company working on an LNG project in the Surat Basin, said DERMs decision to close Cougar Energys USG plant has no bearing on Arrow Energys current activities or future plans.

"The coal seam gas and UCG industries are completely separate," the spokesperson said.

"Its unfair to make any comparisons between the two because the technologies used by each industry in the gas extraction process are entirely different.

"We are increasing our stakeholder engagement activities and are currently preparing an Environmental Impact Statement which involves exhaustive studies to ensure appropriate measures are in place to minimise the impacts of our activities in the future.

"The Queensland Government has announced that it will enhance the existing groundwater management regime and Arrow has made a commitment to conducting extensive groundwater modelling, monitoring and consultation."

The construction schedule for the project will be finalised following the completion of Arrows takeover by Shell and PetroChina, due late next month.

On Monday, Natural Resources, Mines and Energy Minister Stephen Robertson met with senior representatives of the UCG sector in Queensland, to discuss the implications of the investigation underway at Cougar Energys trial plant near Kingaroy.

Mr Robertson told company representatives from Linc Energy, Carbon Energy - who run pilot projects near Chinchilla that while the circumstances of each project would be evaluated individually, Cougar Energy contamination incidents raised concerns for the whole sector.

"I indicated that the Government remained committed to undertaking a formal environmental evaluation of the UCG process at each site in Queensland, and our independent scientific expert panel will be undertaking a complete review of all three trials," Mr Robertson said.

The three UCG projects have been progressing under a supervised trial which was due to end in 2012.

"Today I made it clear that each company needs to understand we will take no risks when it comes to environmental performance and this will be the key factor in determining the future of Underground Coal Gasification in Queensland," Mr Robertson said.

Director-General John Bradley said the Department of Environment and Resource Management (DERM) had continued the review of water quality results received on Sunday and issued further statutory notices requiring the UCG companies to produce past water quality testing.

Farming groups have said the closure has justified farmers concerns about the environmental impacts of mining on agricultural land.

AgForce mining spokesman Drew Wagner said the farm organisation has serious concerns about the government and resource industrys lack of communication and understanding regarding the impact of resource exploration and extraction activities.

"AgForce continues to lead the way in voicing the concerns of farmers about the unknown consequences of resource extraction throughout the exponential growth of the coal seam gas industry, and todays announcement is evidence that extraction activities have detrimental environmental concerns," Mr Wagner said.

"Although the Underground Coal Gasification process differs from the production of coal seam gas, it raises serious concerns about the lack of knowledge both the government and the resource industry have about the impact of mining practices on groundwater resources."

QFF CEO Dan Galligan said farmers have been very vocal in expressing that the underground water supply must be protected at all costs when underground gas is being extracted.

"The aquifer is a vital economic and environmental resource and all sectors of the community deserve assurance that it is not being polluted.

"The checks and balances must be in place. The resource is simply too valuable to put at risk with experiments."

The farmers rely on a clean environment and water supply to allow them to get on with the job of producing clean and sustainable food for the rest of the country," Galligan said.

LNP Shadow Minister for Natural Resources, Mines & Energy Jeff Seeney, who is the Member for Callide, said it wasnt good enough for the Minister to ride into Kingaroy talking tough about the Cougar Energy coal gasification trial.

"There needs to be proper monitoring of all mining and gas activities especially in closely settled areas," Mr Seeney said.

"The Minister needs to ensure there are enough Departmental officers in the field to properly monitor all of the mining projects that are springing up across regional Queensland.

"This coal-to-gas project at Kingaroy was a trial of a new technology that had raised considerable concern it should have been monitored more closely than most other mining projects.

"The fact that there was no Departmental officers monitoring this trial site raises questions about what monitoring the Department is doing in other areas.

"There are now serious questions about whether these Departments have the people with the skills to properly administer the mining boom," Mr Seeney said.

Mr Robertson and Mr Bradley were due to attend a range of meetings in Kingaroy today."

And from ninemsn;

"Cougar Energy extends trading halt
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20/07/2010 4:55:58 PM
Cougar Energy Ltd says it's disappointed an environmental order suspending its Queensland operation hasn't been lifted after tests showing bores around its project are safe.

On Tuesday, Cougar shares were further suspended from trade after the company learned a Queensland environmental order won't be lifted until it has been reviewed by a panel.

Cougar's trial underground coal gasification (UCG) project near Kingaroy was halted last week after company tests found traces of the carcinogen benzene and the toxic chemical toluene in bores at the site.

The company was forced to suspend the operation by Queensland's Department of Environment and Resource Management (DERM) after the results of the tests were reported.

Cougar was also directed to undertake an environmental evaluation.

DERM later said results from tests on eight bore sites in and around Cougar's Kingaroy project showed only trace levels of hydrocarbons, and the water was safe.

Cougar's general manager of investor relations Brad Glynne said initial testing that found benzene had later been discovered to be a laboratory error.

He said he was disappointed DERM hadn't already lifted its order suspending the UCG trial.

"It would be very good if the order had been removed but that is not going to happen at this point in time so we have to deal with that and work with the department," Mr Glynne said.

"We thought the tests that they did over the weekend ... validated and confirmed exactly our own testing and readings.

"The test that we reported to DERM that showed a highly elevated level we thought was a mistake and we told DERM that.

"The independent laboratory on Friday morning of last week that did the test admitted that there was a discrepancy, a mistake, and that reading was wrong."

He said Cougar needed to provide information on its environmental evaluation to DERM by August 16 but he was uncertain when a decision would be made about resuming the company's UCG plant at Kingaroy.

UCG is a technology that burns coal underground and uses heat, high pressure and water to create synthetic gas."

.... just to keep you up to date with latest reports,



Ravi