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NSW IRRIGATORS’ COUNCIL Finding a Way for Agriculture and CSG to Co-Exist: Colorado, USA
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Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Jun 25, 2015

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Andrew Gregson, Chief Executive Officer, NSW Irrigators’ Council and Sahil Prasad, Policy Officer, Mining and CSG, Cotton Australia delivered this presentation at the East Coast Gas Outlook conference. The event brings together industry professionals and government representative to discuss opportunities and options to secure gas supply on the east coast of Australia.

For more information, please visit the conference website: http://www.informa.com.au/eastcoastgasconference.
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Page 1: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

NSW IRRIGATORS’ COUNCIL

Finding a Way for Agriculture

and CSG to Co-Exist:

Colorado, USA

Page 2: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Introduction

NSW Irrigators Council represents around

12,000 irrigation license holders

across New South Wales.

We represent:

Membership Groups; and

Water Access License Holders

Page 3: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Why Colorado?

An increasingly polarised debate in Australia.

Relatively few global instances of co-location.

An organisation (NSWIC) that recognises this industry is

coming.

A need for better information

Page 4: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

What to Achieve?

We want to understand alternatives to our current

regulatory regime and to understand various parties views

on those alternatives.

Importantly, we're not seeking to judge alternative

approaches nor necessarily to adopt them. We're looking

for opportunities to uncover alternative strategies and -

ideally - methodologies to enhance harmonious

development of irrigation and gas industries.

Page 5: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

NSWIC

Cotton Australia – Sahil Prasad

Namoi Water – Jon-Maree Baker

APPEA – Siobhan Barry

Santos – Andrew Abbey and Deena McMullen

A Tour Group

Page 6: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Dick Wolfe, State Engineer and Director of Division of

Water Resources

(Vance case brought his role to forefront of gas regulation)

Key message – BASELINE DATA.

Denver, CO

Page 7: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Pioneer Resources

Outsourced water management (Norwest)

Make all data public - www.purgatoirewatershed.org

Long history in CO (18 years in Raton Field – 2250 wells)

Key message – Transparency.

Denver, CO

Page 8: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Prof. Troy Bauder – Soil and Crop Sciences at CSU

Large body of work on produced water.

Sodium Adsorbtion Ratio is a key – concentration in soils.

Admittedly looked at both best and worst case scenarios.

Key message – don’t get it wrong in the first place.

Fort Collins, CO

Page 9: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

The Commissioners of Weld County

Over 100k acres irrigation – overlying conventional gas. A

largely dry field, but low quality produced water and

competition for production water.

Most of them were happy – due to a financial stake, either

direct or to Country resources.

Key message – give the locals an interest.

Weld County, CO

Page 10: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

A Tale of Two Counties

Weld is used to agricultural industry and processing.

Larimer is largely residential.

Weld is accepting gas more readily than Larimer...

Key message – engage farmers on practical issues.

Weld v Larimer, CO

Page 11: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Previously large scale coal mining and processing.

Coal seams still visible on the surface.

Large scale CBM development over nearly 20 years.

Irrigation is small (8,000 feet) but area is watershed.

Significant produced water of varying quality.

Southern CO

Page 12: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Norwest Corporation – for Pioneer Resources.

“Don’t irrigate with produced water” – site discharge points

for dilution before offtake.

Dropping around 11 megs per day into surface discharge

– but mainly dry arroyos.

Key message – BASELINE DATA.

Trinidad CO

Page 13: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Inspecting the Wells.

Surface storage of produced water.

Deep aquifer reinjection (6,000 feet) – set up but not used.

Water quality testing downstream...

Key message – Produced Water Management.

Raton Basin CO

Page 14: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

The short term problems are relative

Acceptance is comparatively simpler with farmers given

simple practicality.

Financial benefits in CO are assisting acceptance – and

providing insurance.

Findings

Page 15: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

The long terms risks are significant

If you get the water management wrong, the impacts can

be catastrophic.

It’s a low likelihood – high impact scenario.

Findings

Page 16: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Some Problems can be Managed

We must have comprehensive baseline data.

We must deal more effectively with produced water.

Findings

Page 17: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Is Coexistence Possible?

We didn’t find the comprehensive solution to coexistence.

We did find two preconditions without which coexistence

cannot occur.

Conclusion

Page 18: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Read all

about it...

Available as

an e-book

via Amazon

Page 19: Andrew Gregson, NSW Irrigators’ Council and Sahil Prasad, Cotton Australia: Finding a Way for Agriculture and CSG to Co-Exist

Q and A

Questions and

Discussion