Public scrutiny surrounds Arrow Energy’s (owned by PetroChina and Shell) enthusiasm for establishing CSG in the Northern Rivers region. Photo Sharon Shostak

Opposition to coal-seam gas mining exploded this week at a well-attended public hearing of a state government inquiry, held in Alstonville.

The following day, news emerged that the Metgasco company may ultimately drill a thousand or more wells as part of its plans to mine gas in the Casino and Lismore area.

When asked about a report in the Sydney Morning Herald that the company had plans for ‘about 1,000’ production wells, a Metgasco spokesperson said the exact figure depended ‘on a variety of factors’, including the style of well, and he declined to confirm whether 1000 was an overestimate or underestimate.

In a statement to The Echo Metgasco said, ‘When we apply for all of our production licences we will be in a position to provide a more precise figure,’ adding that a typical well only takes up to one or two per cent of a landowner’s property.

Environment versus economy

The Kyogle Group Against Gas suggested last week that plans for a gas pipeline over the border to Queensland and a possible new export facility could require Metgasco to drill in excess of 1000 wells, which it argued ‘represents a grave threat to our future’.

The group was one of several which gave evidence to a parliamentary inquiry by the state’s upper house committee last week, attended by more than 100 people, almost all of whom opposed coal-seam gas mining.

During evidence, representatives from Lismore, Kyogle and Tweed councils expressed serious concerns about the possible impacts of gas mining on the local water, environment and economy, including eco-tourism businesses and organic farming. 

In contrast Ballina Mayor Phillip Silver was open to the potential benefits of coal-seam gas mining, if safeguards could be established.

Richmond Valley Council, which covers the area where Metgasco is planning to build a big gas-fired power station, is understood to have made a submission to the inquiry also acknowledging the industry’s benefits.

The hearing last Wednesday afternoon was full of politics and passion as the audience regularly offered enthusiastic applause to strong statements of opposition to gas mining, while state politicians from all parties probed the depth of local feeling.

A psychologist gave evidence about growing anxiety around people’s relationship with the land, a Lynchs Creek farmer broke down in tears, and the dairy co-operative Norco expressed strong concerns about the potential effects of mining.

Chair of the upper house inquiry, Shooters and Fishers party member Robert Brown, told The Echo the majority of submissions were opposed to coal-seam gas mining in the Northern Rivers area, but as chair he could not offer his personal view.

Deputy Chair Jeremy Buckingham – the Greens member who suggested the inquiry – told The Echo he believed this region ‘should be protected’ from coal-seam gas mining.

At the same time the New South Wales peak environment body the Nature Conservation Council (NCC) is urging the state government to cancel more than five million hectares’ worth of exploration licences that have expired, until, ‘adequate safeguards are in place to protect local communities and the environment.’

According to the NCC, under current legislation coal-seam gas exploration is allowed to continue in these areas, even though titles have expired.

The state government currently has a limited moratorium until the end of the year on the franking process used with coal-seam gas, as it develops new frameworks for regulating the industry.

The company which controls extensive permits covering the Byron Shire and beyond – Arrow Energy owned by PetroChina and Shell – will not be making a submission to the inquiry, and it referred The Echo to a general industry submission stressing the economic benefits for the state, and the environmental advantages of power based on gas rather than coal.

Metgasco will give evidence  at a later inquiry hearing in Sydney, but in a statement managing director Peter Henderson said the coal seams the company wants to extract from are ‘deeper and separated from the higher-level aquifers from which water is currently drawn for agricultural purposes,’ and the company’s operation, ‘will not have a negative impact on groundwater.’