response from qld premier

On 23/7/10 I wrote to the Qld Premier, Anna Bligh, highlighting CXY's need to layoff staff thanks to her govt's suspension order and calling on her to reinstate CXY's operating permit.

Today I received the following response from the Office of the Premier.

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Thank you for your email of 23 July 2010 concerning recent reports of groundwater contamination from the Cougar underground coal gasification trial near Kingaroy. I have been requested to reply to you on the Premier's behalf.

The following is a summary of recent events regarding the pilot plant:

? Officers from the Department of Environment and Resource Management (the department) were first made aware of potentially elevated levels of toluene and benzene at the Cougar Energy site on 30 June 2010.

? At that time, the relevant officers decided that the risk of potential contamination was negligible ? based on the available information that toluene and benzene levels were low to very low and that all sample locations were close to the trial site. However, to make a proper evaluation of any potential risks, departmental officers directed Cougar Energy to provide better information relating to groundwater sampling that had been undertaken.

? On 13 July 2010, Cougar Energy advised the department of a significantly elevated level of benzene at a bore close to the Cougar site for a sample taken on 29 June 2010, and a slightly elevated level of toluene from a bore approximately 1.5 km away.

? On 15 July 2010, the department commenced the notification of landholders within a 2 kilometre radius of the pilot to not use groundwater for drinking or stock watering until it was deemed safe. Statutory notices were issued to prevent Cougar Energy from commencing any further underground coal gasification until further notice, and requiring Cougar to determine the source, cause and extent of any groundwater contamination.

? The company employed by Cougar Energy to measure ground water quality has since notified the department that the sampling which produced the significantly elevated level ? reported to the department on 13 July 2010 ? was in fact flawed. It has not been replicated in independent analysis of any subsequent testing by the department or the company.

? Regardless, it is of paramount importance that the extent of any contamination and the safety of this water is determined To this end, an ongoing program of groundwater sampling has been initiated.

? The department is analysing and interpreting this data as it becomes available, in consultation with an independent scientific expert panel, to determine what further action may be required. Future advice about the use of local bore water will be informed by the results.

As you may be aware, Cougar Energy is one of three pilot underground coal gasification plant trials. The two other pilot projects are operated by Linc Energy and Carbon Energy on the Darling Downs. The State Government has committed to a cautious approach to the underground coal gasification trials and has stipulated that these operations be limited to a trial in order to ascertain the technical, environmental and commercial merits of this technology and to determine its longer-term suitability for Queensland.

Recent claims of water contamination at Kogan Creek near the Carbon Energy underground coal gasification pilot plant are currently being investigated. Water quality sampling that has subsequently been undertaken by the department has so far found no mercury and levels of heavy metals such as iron, aluminium and hydrocarbons, including benzene and toluene, have been determined to be acceptable for stock
watering purposes. However, this work is continuing so the facts of these claims can be determined and the associated results will be made available as soon as possible.

The department has begun reviewing its business processes to ensure they are appropriate for the purposes of identifying. reporting on and responding to potential and actual environmental damage associated with the underground coal gasification trials.

Once the current round of investigations has been completed, the Government will implement any necessary changes to improve the way in which this industry is regulated for the period of the current trials.

The Premier has asked me to again assure you that the underground coal gasification trials will not be allowed to continue unless there is clear evidence that they can be conducted safely. Furthermore, the technology will not be approved for commercial use in Queensland if doubt remains about the industry's capacity to manage its risks.

Yours sincerely
Nick Williams
Senior Policy Advisor