Luis Feliu
North coast coal-seam gas miner Metgasco has come under fire for its ‘tactics of berating the government while negotiating an out-of-court settlement’ and ‘seeking a bailout with taxpayers money’.
The miner is currently in a legal stoush with the government over its recent licence suspension sparked by massive protests at its exploration site at Bentley near Lismore.
Sydney media reported that a possible payout of $15 million was being discussed as an out-of-court settlement.
But an APN Media report last week quoted an industry source saying there was ‘no way’ the company would walk away from its northern rivers project (PEL16) for anything less than $120 million.
NSW Greens mining spokesman Jeremy Buckingham said Metgasco’s problems ‘all stem from their absolute failure to win community support for coal seam gas in the northern rivers’.
‘To now demand taxpayers bail them out, potentially to the tune of $120 million, is outrageous and borders on extortion,’ Mr Buckingham said.
‘This ongoing berating commentary from the company during the court case and negotiations for a possible settlement, reflects extremely poorly on Metgasco’s management,’ he said.
‘They should stop whingeing and accept reality that the company itself failed.
’Exploration licences come with numerous conditions, including the need for genuine community consultation.
‘Consultation is not just a tick-a-box exercise, but is an important part of earning a social licence to operate.
‘The Petroleum Onshore Act is clear in stating that compensation is not payable if an exploration licences is cancelled for a valid reason.
‘Unfortunately, the government recently repealed a broader ‘public interest’ reason for licence cancellations, which would have made the process far simpler.’
NSW energy minister Anthony Roberts suspended Metgasco’s drilling licence in May just days before 900 police were due to descend on the Bentley site to confront thousands of protectors who had set up a blockade.
The northern rivers region has repeatedly called on premier Mike Baird to declare the region a gasfield-free area.
Industries unprotected
Meanwhile, Mr Buckingham also slammed the state government for failing to protect the dairy and sugar industries on the north coast and across NSW against CSG exploration or mining.
Opponents of CSG mining say ‘critical industry cluster’ protection status should be given to other vital industries such as sugar growing and dairying, in the same way horse studs and wineries in the Hunter have been protected.
The Greens say methods of assessment for critical industry cluster status should be re-examined, and applied to new industries, after the primary industries minister ‘all but admitted’ granting such status to thoroughbred breeders and viticulture was a ‘political fix to quieten opposition in the Hunter region’.
Mr Buckingham says the minister, Katrina Hodgkinson, admitted there would be no more Strategic Regional Land Use plans and that any further consideration of critical industry cluster status (which buffers them from industries such as mining) would have to wait until ‘regional growth plans’ were developed sometime in the future.
He said the minister should re-open the assessment process, and apply it to new industries such as dairy, citrus growing, rice and sugar.
‘It is unfair that certain industries have missed out on even being considered for critical industry cluster status simply because the government is chopping and changing its planning regimes,’ he said.
The minister should set up an assessment process for the cluster status now, he said, ‘so that industries can have some certainty and protection, and will be ready to be included in future planning documents’.
Mr Buckingham said it was a great policy for protecting clusters of agriculture and their associated infrastructure and skills base.
‘The government should set up an assessment process with a clear set of criteria, so that other industries can apply and be provided with protection from disruption by mining or gas exploration,’ he said.
‘Citrus growers, rice farmers, the dairy industry and others have all expressed interest in being assessed for critical industry status.
‘Minister Hodgkinson should tell these industries why they do not deserve the same level of protection as the studs and wineries of the Hunter?
‘The Strategic Regional Land Use Policy was the signature policy for the coalition to deal with land use conflict. It’s clear that this policy has been compromised to the point where the government is walking away from it,’ Mr Buckingham said.
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