o'farrell to signal go-ahead on csg

O'Farrell to signal go-ahead on CSG

BY: IMRE SALUSINSZKY
From: The Australian
August 20, 2012 12:00AM

FARMERS and mining groups have ramped up their pressure on the NSW Coalition government ahead of the imminent announcement of new rules for the exploration and extraction of coal-seam gas.

The Australian understands state cabinet will this afternoon consider the final version of a strategic land use policy for the state, with public release later in the week.

It is understood the underlying principle of the policy will be consistent with a draft version released in March: a series of "gateways" setting the bar for mining approval higher where there are competing land uses, such as farming, horse breeding and viticulture.

The draft policy was criticised by farmers and environment groups, who want parts of the state "ring fenced" from CSG, as well as by miners, who do not believe "lines on maps" should be used to regulate the industry.

But NSW Energy Minister Chris Hartcher yesterday made it clear the industry -- which employs more than 12,000 workers in Queensland, but is on hold in NSW -- will get the green light.

"NSW is facing a gas supply crisis," Mr Hartcher said.

"There are over one million households that depend on gas."

He predicted there would be CSG production in NSW by next year.

But farming groups remain concerned CSG drilling, especially when accompanied by "fracking" -- injecting water under pressure to fracture a coal seam -- could pollute groundwater supplies.

NSW Farmers Association chief Fiona Simson said yesterday: "When farmers, miners and the government committed to developing a policy on land use planning in 2011, all parties were committed to protecting land and water. I hope all parties are still committed to this process because a policy full of special exemptions is a policy that is not in the best interests of anyone."

A spokesman for the Australian Petroleum Production & Exploration Association, a mining lobby, urged the government to "hit the re-start button" on CSG.

"Unless the NSW government paves the way for a vibrant gas industry, NSW will continue to import around 95 per cent of its gas, gas shortages will drive up energy costs even further, and the state will forgo the royalties it so desperately needs to pay for new roads, schools, and services," he said.

http://www.theaustralian.com.au/national-affairs/state-politics/ofarrell-to-signal-go-ahead-on-csg/story-e6frgczx-1226453635330