News: Cougar challenges QLD Gov shutdown

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Cougar Energy Ltd (ASX:CXY) says it will fight the Queensland Government’s proposal to stop the company’s underground coal gasification activities at Kingaroy in Queensland.



The Department of Environment and Resource Management has for many months alleged that the trial near Kingaroy fails to meet environmental standards.



Last year the pilot underground coal gasification plant was ordered to be shut down after traces of toxic chemicals were identified at a nearby property.



Cougar’s latest submission with the state government outlines why the proposed orders should not be made, advising that its Kingaroy project has never presented any danger to human health, drinking water, livestock nor farming activities in the region.



Cougar Energy reported a loss of $4.15 million in the 2010 financial year.