27 August 2015 Dear Chinchilla Residents In recent times, there...

27 August 2015 Dear Chinchilla Residents In recent times, there has been a lot of media attention regarding Linc Energy’s demonstration facility at Chinchilla and the charges that have been levelled against us by the Queensland Department of Environment and Heritage Protection. The facility no longer operates. The Department has been investigating the operations of Linc Energy for well over a year. While we are due in Court in October to test some of the evidence against us, we have still not been told what all of that evidence is, even though we have repeatedly asked for it and the Department is required to provide it to us. Ultimately the charges against Linc Energy will be decided by the Court and our Company respects the judicial processes at work. Throughout all of this, Linc Energy has sought only to be treated fairly in the judicial process in which it is now engaged. Unfortunately, the manner in which the Department of Environment and Heritage Protection has sought to subject Linc Energy to trial by media, to disregard the presumption of innocence to which all corporations and citizens are entitled before the law, and the cynical leaking of information yet to be tested in Court has made it necessary for us to speak direct to you, the Chinchilla community, through this open letter. Imagine for a moment if you were the subject of criminal charges and those prosecuting you were behaving in this way towards you. Like us, we imagine your sense of justice and fairness would be outraged. In our view, the allegations being made against us have been accompanied by completely unwarranted scaremongering by the Department and finger pointing against Linc Energy. Therefore I want to take this opportunity to provide answers to a number of questions I believe you may have. • Has Linc Energy caused damage to your land, your livelihood or your health? No, and we will be defending any allegations to the contrary. We remind you that at the public meeting held in Chinchilla on 10 June 2015 the Department, through its DirectorGeneral and experts, advised that after extensive regional surveys, costing millions in taxpayers’ money, there was no risk to: (a) public health; (b) air quality; (c) groundwater; (d) surface waters; (e) soils; or (f) agricultural productivity. • Were Government inspectors hospitalised for carbon monoxide poisoning after visiting our site? A working party from the DEHP who were undertaking testing at our site voluntarily admitted themselves to hospital as a precautionary measure. Their reported symptoms were similar to that of carbon monoxide exposure. However, two Linc Energy employees who were part of the same work party did not report any incidents, adverse conditions or health effects. After becoming aware of the issue through a third party, many hours later, we immediately commissioned an external independent investigation by a reputable safety professional. The investigation found "there is a lack of causal evidence to support that the DEHP work parties (that reported health effects) were caused as a result of exposure received due to work activities and/or atmospheric contaminants/hazards at the Linc Energy [site].” In addition the sample that was being collected, from the area where the work parties were working, was found to have no presence of carbon monoxide. • What about the “secret” DEHP expert’s report? The allegations made by the Department against Linc Energy are said to be supported by an expert’s report commissioned by the Department. Despite what some media outlets might have you believe, there are no “secret” reports and there is no conspiracy about them or intent to conceal. Such reports, in all cases, will become public in due course as part of normal Court proceedings. None of the alleged findings of the report however have been tested in Court. The committal proceedings Linc Energy will face in the Magistrates Court in October/November this year will provide our Company with an opportunity to test some of the allegations in the report as part of this transparent public process. In the meanwhile Linc Energy is entitled to a presumption of innocence and the Department should not be treating what are currently unsubstantiated allegations as fact. Linc Energy will have more to say about the work undertaken by the Department’s consultants at the committal proceedings. • What about the 320km2 Excavation Caution Zone? We are of the view that the creating of this caution zone was, and continues to be, unnecessary, and places undue uncertainty over an extraordinarily large area. The Department says its consultants have found hydrogen, methane and carbon dioxide at high levels at some locations beyond the Linc Energy site. The consultants speculate that the presence of these gases is due to the Company’s activities. Linc Energy disputes this. Again, these allegations have not been tested in Court as they eventually will be. • Has Linc Energy caused the acidification of good quality agricultural land? The DEHP consultants assert that Linc Energy activities have resulted in the acidification of some agricultural land. Linc Energy denies this and firmly believes the evidence in relation to this will be found wanting. The Department’s own consultants’ findings in this regard are inconclusive. • What happens now? That is largely dependent upon the Queensland Government and the Department of Environment and Heritage Protection’s actions. However, as a local landholder and employer, Linc Energy is certain there is no risk to public health, to air quality, groundwater and agricultural activities from the Company’s operations and that there never will be. Despite many requests by Linc Energy to discuss the perplexing and concerning manner in which these proceedings and the investigation of Linc Energy have been conducted, both the Minister and the Director-General have so far refused to meet with us or to contemplate that the allegations against Linc Energy by their departmental staff and consultants may be simply incorrect and not scientifically supportable. We hope this will change. For Linc Energy, one of the most infuriating aspects of all of this is that the Department’s overreaction and the media treatment of these issues may have needlessly sullied the reputation of the Hopeland district and its high quality produce. We understand the anxiety this may cause, but can only suggest that you allow the proper legal processes take their course before forming a final opinion about our Company, our staff or the way in which we operated our demonstration facility at Chinchilla. I hope the information provided above delivers some answers which may not have been given to you and helps you understand Linc Energy’s position. We seek no more than what any corporation or citizen of this State is entitled to; fairness, due process and the presumption of innocence. We do not feel we are getting that. That is extremely disappointing from any government. Our commitment to the communities in which we operate remains resolute and as a longstanding employer in Chinchilla, we intend to always honour that responsibility. If you have any more questions I welcome you to contact me at [email protected].
Regards Craig Ricato CEO and Managing Director
Linc Energy