spoke to carbon energy, page-38

Bochman and Riv it's this sort of thing (*) that some investors are concerned about as a whole whether CSG or UCG lumping both in the same boat.

I certainly believe the big boys playing with CSG in hindsight would love to be involved and invested the sorts of $$ in UCG instead of CSG but the horse has bolted for now, they've invested so much in this process now I think they're forced to keep going down this track but I do believe we'll see some more existing big players who are contemplating a new market in the oil and gas sector move in on UCG and who knows we may even see some acquisitions in the future.

Here's another analogy for those old enough to remember: I suppose it's sort of like the, "Betamx versus VHS".

I believe UCG will eventually take off as the prefered tech but it will all ultimately come down to which method is the much simpler, cheaper, higher yeilding, meaning the most all round cost effective method returning the most bang for buck. Also on top of these very important attributes, too many law suits and other related problems contribute to making this less preferred especially when there's a much better way ticking way more boxes than CSG and that is UCG I believe!!

(*) BHP sued by US landowners
Leonie Wood and Barry Fitzgerald
May 25, 2011

BHP Billiton is facing a series of class action law suits in the United States over the environmental effects of a controversial gas mining technique that is about to become a massive industry in Australia.

Landowners in the state of Arkansas allege BHP's recently acquired $US4.75 billion Fayetteville shale gas business is causing earthquakes, poisoning their water sources and polluting the soil and air.

The pending litigation comes amid growing environmental concerns surrounding the emerging $50 billion Queensland and New South Wales coal seam gas industry.
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A gas and water blowout this week in a well operated by Shell and PetroChina near Dalby, Queensland, has prompted calls for tighter control and regulation of the industry.

Shale gas and coal seam gas operations use hydraulic fracturing to liberate the gas. It involves injecting high-pressure water, sand and chemicals, and results in large volumes of salty water coming to the surface.

In one class action, Arkansas landowners allege that BHP and three US gas producers allowed noxious emissions to contaminate water supplies, air and soil.

Another group alleges that reinjecting salt water underground has caused earthquakes.

The landowners are seeking millions of dollars in damages, and improved environmental monitoring.

BHP said yesterday its goal was to develop the facility ''in line with our values of ensuring that we fully protect people, the environment and communities where we operate''.

Read more: http://www.smh.com.au/business/bhp-sued-by-us-landowners-20110524-1f2ke.html#ixzz1NKSwMJYY

Cheers