promising test results for cougar

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Promising test results for Cougar:
Queensland?s Department of Environment & Resource Management (DERM) said the latest underground water quality tests at Kingaroy found levels of benzene and toluene to be within Australian drinking water guidelines.

Josh Lewis 03 August 2010 07:26 GMT

Last month DERM ordered Cougar Energy to shut down its pilot underground coal gasification (UCG) plant near Kingaroy after water quality tests detected the carcinogenic chemicals in groundwater monitoring bores close to the plant.

Results from the department?s latest test showed that seven of the eight properties outside the plant recorded no detectable levels of benzene or toluene.

?A minute trace of toluene, just above detection levels, was detected in one bore outside the plant,? DERM director general John Bradley said.

Bradley said tests on bores within the Cougar site found a trace of benzene in one bore which was within Australian drinking water guidelines.

He added an ?extremely low level? of toluene was found in the second bore on the site which was ?just above detection levels.?

Despite the positive results DERM still upheld its health warning for rural property owners within the immediate area not to use water from their bores for human consumption or stock watering.

Bradley said the department was working closely with Burnett Regional Council to advise the community of sampling and testing results and any changes in access to bores.

?We are waiting for a final set of testing results which take longer to analyse in the laboratories and if they indicate no concerns for water quality, we expect to be able to advise landholders that they can return to using bores in that two kilometre radius.?

Even if the final test results show no groundwater contamination Cougar will still have to keep the plant closed until an environmental evaluation to provide detailed information about the company?s water quality monitoring is completed and reviewed.

Queensland?s 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.

Once completed, an independent panel will assess the evaluation results and if it determines the plants cannot operate without environmental harm, the pilot projects will not be given approval to continue.

The uncertainty surrounding the future of the Kingaroy plant caused Cougar to cut jobs last month with about 20 workers being let go, half of the company?s total staff.

Cougar was also granted an extension today 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: 03 August 2010 07:26 GMT | Last updated: 03 August 2010 07:56 GMT