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“LIKE someone had ripped my heart out”.

That is how farmer Peter Graham described the moment he found out the NSW government had suspended a coal seam gas drilling licence on his land.

Energy Minister Anthony Roberts this morning suspended Metgasco’s drilling permit on Mr Graham’s farm at Bentley in No

Energy Minister Anthony Roberts this morning suspended Metgasco’s drilling permit on Mr Graham’s farm at Bentley in Norther

When contacted this morning, Metgasco managing director Peter Henderson said he had not been formally told of the suspension.

The cancellation is in regard to insufficient community consultation and helped defuse a major police operation organised for early next week to remove thousands of protesters from the front of Robert and Peter Graham’s farm.

Mr Roberts said he had rung Peter Graham, the farmer who had allowed Metgasco to drill on his property.

“I’ve spoken to Mr Graham this morning and I’ve given him an outline of our decisions. Mr Graham is a very brave man, a strong man, a principled man and his family have been very strong throughout this,” he said.

“Mr Graham understands there are processes and they must be transparent. There has been great damage done to his property. Together with Mr Graham I would suggest quite strongly to those protesters that have been up there when they remove themselves from their site they can also remove the rubbish of the site.

“I would hope that those people leave that protest site in the same condition in which they found it.”

Mr Graham has an agreement with Metgasco to allow the mining company to put a exploratory gas well on his 283ha farm at Bentley in northern NSW.

The operation came undone on Thursday when Energy and Resources Minister Anthony Roberts suspended Metgasco’s approval to construct a gas well at the Bentley site due to insufficient community consultation.

Mr Graham, a former Lismore councillor, said he heard the news at 6.30am on the radio.

“What it means, who knows?” he said.

“Is it just a short-term suspension, is it indefinitely, I have no idea.

“It’s just a matter of we need to find out some more detail.”

Metgasco’s plans to put a well on Mr Graham’s property sparked fierce opposition in the community.

In February, the Bentley blockade set up camp near Mr Graham’s property, which he doesn’t live on, and blocked access to gates on the property.

Mr Graham said his biggest concern was whether the protest activity would continue.

“Knowing that things were progressing very soon and that police were coming next week ... we thought our gates would be cleared and in the next couple of weeks, we would be allowed to go in and sell some cattle,” he said.

A delegation from the Bentley region — led by former Lismore mayor Ros Irwin — was expected to meet with Mr Roberts this morning at 10am.

When they met with rookie police minister Stuart Ayres yesterday, the police operation remained on track.

Operation Stapler was this morning confirmed to be cancelled in the wake of the drilling licence developments.

In recent weeks Mr Roberts had told The Daily Telegraph that his government would enforce the law and help Metgasco drill on the Graham family farm, who he said was being harassed by anti-gas protesters who had set up an illegal camp at the gates of their property.

This morning, Mr Roberts said the Office of Coal Seam Gas (OCSG) had informed Metgasco of the suspension on the grounds that it did not fulfil a condition of its exploration licence, namely to undertake genuine and effective consultation with the community as required.

“OCSG is conducting an ongoing audit of all Petroleum Exploration Licences across NSW and is focused on ensuring company compliance with title conditions,” Mr Roberts said.

“I have been advised by OCSG that fundamental concerns have been expressed by members of the affected community about the way in which Metgasco has characterised its activities.

“On 13 May 2014 the Director of OCSG and the NSW Land and Water Commissioner held a meeting with local landholders, at which matters of consultation between the community and Metgasco were raised.

“The Director of OCSG has now suspended the approval to construct the Rosella E01 gas exploration well.”

Mr Roberts pointed out that this suspension refers to Petroleum Exploration Licence 16 (PEL 16) which covers the Bentley site near Lismore and was originally granted by the Carr Labor Government in 1996.

“Metgasco must now demonstrate to OCSG that it has complied with this fundamental condition of its licence,” he said.

Separately, Mr Roberts also announced that he has written to the Commissioner of the Independent Commission Against Corruption following receipt of information concerning shareholdings and interests in Metgasco Limited.

“In accordance with Section 11 of the Independent Commission Against Corruption Act, I have referred this to the Commissioner to ensure that any decisions pertaining to PEL 16 have been made entirely properly and without any undue interest or influence.”

Mr Roberts made the referral to ICAC after receiving information about Metgasco shareholdings late yesterday.

Government sources have linked Mr Roberts’ ICAC referral to a Metgasco shareholder with connections to Australian Water Holdings but there is no clear indication of wrongdoing.

In late 2011, Queensland-based ERM Power became a shareholder in Metgasco with a 6 per cent stake, later buying up more shares taking its total to 12.8 per cent.

ERM Power non-executive chairman Tony Bellas was previously a director with Australian Water Holdings’ Queensland operation and an associate of AWH boss Nick Di Girolamo and shareholder Eddie Obeid junior.

AWH has been accused by ICAC of donating to Liberal Party slush fund Eight By Five, gaining access to then Energy Minister Chris Hartcher. Mr Hartcher oversaw a renewal of the Metgasco northern NSW licence in 2013.
The licence was first approved by Carr Minister Bob Martin in 1996.

It was later renewed by then Mining Minister and corrupt politician Eddie Obeid in 2000 and again by disgraced former Resources Minister Ian Macdonald in 2006.

AWH’s Queensland arm and Mr Bellas have not been accused of wrongdoing by ICAC.

Comment has been sought from Mr Bellas and ERM Power.

Premier Mike Baird said there had been a “lack of consultation” on the Metgasco site.

On the ICAC referral, Mr Baird said he would not “provide any comments on any companies or any links”.

Metgasco is yet to make comment but it’s believed they will assess their community consultation requirements and respond to the department.

Mr Roberts said he did not believe in “mob rule” and said Metgasco to proceed further needed to be compliant with its licence conditions.

“My message to those people who believe they can remain outside the law with respect to protests is now it’s time for you to return to your peaceful, lawful and rightful places of business and your homes.

Lismore mayor Jenny Dowell said the people of Lismore would be thrilled at the decision.

“This is fantastic news,” she said. “I can’t tell you how excited and thrilled the people up here are and will be.”

She said official figures showed that 87 per cent of locals opposed the mine.

Drew Hutton, president of Lock the Gate Alliance, said: “I’m very pleased. I think it (the licence) needs to be cancelled.

“This opposition is not just going to just whither away with a suspension. We’re going to demand a cancellation, and so will Lock the Gate.”

NSW Greens mining spokesman Jeremy Buckingham said Thursday’s announcement is a huge win for the Lismore community.

Lismore MP Thomas George, who has copped criticism from local protesters who claim he has done nothing about the Metgasco drilling site, said he had personal representations to Mr Roberts.

Read more:
http://m.dailytelegraph.com.au/news/nsw/metgascos-drilling-permit-for-bentley-farm-plagued-by-protesters-suspended-and-referred-to-icac/story-fni0cx12-1226918258296