Australia: Metgasco Provides Submission to CSG Inquiry

Metgasco has welcomed the opportunity to provide a submission to the NSW Parliament’s Inquiry into Coal Seam Gas.

Mr Peter Henderson, Managing Director of Metgasco Ltd, said today “the issue of coal seam gas has attracted significant public attention lately and Metgasco’s submission to the Inquiry is an opportunity for us to correct a number of misconceptions about the industry,” “There are some in the community who feel that the coal seam gas industry is a new industry and is a risk to the environment. This is not the case. Coal seam gas is natural gas and the natural gas industry has operated in Australia since supply commenced in 1906. The techniques used to extract coal seam gas are essentially the same as those for conventional oil and gas production and have been developed over 100 years. Coal seam gas operations have been in place for 30 years internationally and for 16 years in Australia. International and domestic experience has demonstrated that the CSG industry does not damage the environment, including aquifers,” Mr Henderson said.

“Ensuring that we produce gas in an environmentally responsible way is an essential priority for Metgasco. Metgasco’s operations will not have a negative impact on groundwater. This assessment is based on findings by an independent consultant. We have studied the coal seams from which we plan to produce gas. They are deeper and separated from the higher level aquifers from which water is currently drawn for agricultural purposes. We use standard gas field technology to drill our wells and isolate the coal seam and other formations, including aquifers.” Mr Henderson said.

Electricity generation which uses coal seam gas rather than coal produces up to 70% less greenhouse gas emissions and provides the lowest cost means of reducing greenhouse gas emissions.

“Metgasco works hard to maintain a good relationship with landholders and the broader community. To date Metgasco has more than 300 different access agreements with landowners, all of which have been negotiated on a voluntary basis. We aim for a win-win relationship – with only a fraction of their land being used for our operations, the landowners’ activities are minimally impacted and we provide additional income to supplement their existing business. An Investment Advisory Company has estimated that the annual payment to a landowner from the coal seam gas industry is between 5 to 10 times greater than the value of the agricultural output for the same land,” Mr Henderson said.

“From a regional sense, coal seam gas also provides a great opportunity to create more jobs in the local area. We have estimated that the operation of a major CSG project will directly involve approximately 500 full-time jobs and will generate substantial economic activity in the local area where support services and infrastructure will be required.” Mr Henderson said.

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Source: Metgasco, September 19, 2011;