The coal seam gas project in the Pilliga is copping scrutiny from all angles as environmental groups, the Greens, the state government, and even the current operator take a closer look at project.
Speaking with Santos spokesperson Matthew Doman yesterday he acknowledged recent media attention focused on the CSG operation in the Pilliga and said that the company was in the process of reviewing all of the projects that came along with the acquisition of Eastern Star Gas in November. Doman said that the review process is a priority and that changes would be made “where we find practices that aren’t consistent with Santos’ manner.”
This comes after reports of water contamination and the appearance of a tar-like substance around CSG sites in the Pilliga, and more broadly, controversy over the scope of capacity for the state to benefit from CSG projects.
At the start of December, soon after Santos’ acquisition of Eastern Star Gas, independent water testing found contaminated water at a discharge area in the Pilligas. The NSW Environment Protection Authority said they would investigate.
Earlier this week, documents released under FOI revealed that Eastern Star Gas was paying a land access fee of $2500 per active gas well per year to Forests NSW, a price that has been criticised by The Greens and some environmental NGOs as too low. Santos hit back explaining that the land access fee was only one way the state profits from CSG, and that with royalties considered, CSG would be a significant financial benefit to the state. However with a royalty free period applying to the first 5 years of production, this did not satisfy criticisms.
Yesterday the state government announced it was reviewing the law that allows this royalty holiday. The Herald reports:
STATE government coffers stand to be boosted by hundreds of millions of dollars each year after it confirmed it was going ahead with a review of a moratorium on coal seam gas royalties that has been in place since the early 1990s.
Lock the Gate spokesperson Jacinta Green reacted to the NSW government’s review of the royalty structure: “We assume that this means that the NSW Government has finally noticed inconsistencies between the claimed economic benefit by the CSG industry and reality.”
This too comes from the Herald’s story:
The Pilliga site is being investigated by the NSW Department of Trade and Investment, Regional Infrastructure and Services after black tar-like substances appeared throughout the Pilliga State Forest in and around where Eastern Star Gas, which was officially acquired by Santos in November, has been conducting exploratory drilling.
Which made me think of these photos when I took while visiting the Pilliga on December 16:
I can’t be sure this is what the Herald report is referring to, but Pilliga local Tony Pickard did raise concern about this material when I spoke with him on my most recent trip to the area.
It is absolutely shocking to see Santos raping our forests and land. Why is the government allowing them to contaminate our land, water and killing off our unique wildlife. Overseas tourists pour into Australia to see our unique wildlife. Not the land clearing and pillaging Santos and other Coal Seam Gas companies are causing. Makes me wonder how much they have bribed the government to allow the lies? Pilliga is a forest to be protected. As for the forestry commission. They are a complete joke to allow any such coal seam gas exploration into our precious forests. I am sure Coal Seam Gas is contributing nothing to Australia. I’d say they would only be exporting it to China and selling it for a song, while they continue to destroy our precious forests and land! As for the Chinese they are selling it to. I am sure they are having a good laugh about it all over tea.