Metgasco Seeks Legal Action Over Drilling Ban

Metgasco Seeks Legal Action Over Drilling Ban

Metgasco filed for judicial review of the decision to suspend its approval to drill the Rosella well at Bentley.

“Metgasco was advised of the suspension on 14 May by the Office of Coal Seam Gas (OCSG) without notice and, in Metgasco’s opinion, without valid justification,” the company said in a statement.

In the judicial review proceedings Metgasco will ask the Supreme Court to set aside the OCSG’s decision to suspend drilling of the Rosella well.  The grounds for Metgasco’s claim are that the decision was unlawful because it was not authorized by legislation, and was made without affording Metgasco procedural fairness.

“The Minister has claimed that he exercised his power to suspend because of Metgasco’s alleged failure to engage in community consultation.  Metgasco will ask the court to rule that it complied with its community consultation obligations.  Consequently, the Minister’s power to suspend did not arise.  Metgasco will ask the court to expedite the hearing,” Metgasco said.

Metgasco is continuing to investigate all options, including whether it may have a claim for damages to compensate the company for losses resulting from the peremptory suspension of its drilling approval.  Whether such a claim is available may not become clear until after the judicial review proceedings have been determined, it added.

Press Release, June 3, 2014

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