Coal Seam Gas Mining in New South Wales

Coal Seam Gas Mining in

New South Wales

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Table Of Contents:Part 1: About CSG Mining 3

What is Coal Seam Gas? 4

How is CSG Used? 5

How is CSG Extracted? 6

What is Hydraulic Fracturing? 7

What is the alternative to fracking? 8

What Safety Regulations, Protections, and Controls Exist? 9

What are the benefits of CSG Mining? 12

Part 2: The Controversy 13

What is the controversy surrounding CSG mining in NSW? 14

What are the major environmental concerns with CSG mining is NSW? 15

What are the CSG risks to water? 16

The Water Catchment Controversy 17

What is the landholder controversy in NSW? 20

How did landholder groups react to impending drilling? 22

The Fight Continues 23

About CSG Mining

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What is Coal Seam Gas?

Coal Seam Gas (CSG) is a form of natural gas that is stored within the natural pores of coal hundreds of meters below the earth’s surface. It is comprised mostly of methane (CH4) and is a type of petroleum formed from compressed plant remains over millions of years ago.1

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How is CSG used?

Over 30% of eastern Australia’s gas network is fed by coal seam gas piped into more than one million homes for use in everyday cooking and heating. CSG can also be used as a low emission alternative to electricity produced from coal in gas-fired power stations.1

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There are a few varying ways to extract CSG, including vertical and horizontal drilling as well as the practice of hydraulic

fracturing.2

How is CSG extracted?

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What is Hydraulic Fracturing?Hydraulic fracturing (fracking) is the process wherein fluid is pumped under great pressure into the coal seam to open fractures and cracks in the seam. This process depressurizes the coal seams allowing the gas from the pores as well as the liquid to flow back to the surface. The gas and liquid are brought to the surface through a concrete encased pipe and then separated.2

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What is the alternative to fracking?Hydraulic fracturing has supposedly been falling out of style as more recent techniques such as horizontal drilling have emerged as an alternative. In horizontal fracturing, the coal seam is drilled with smaller horizontal holes stimulating pathways through which the gas flows into a ground-level well encased and pressure-cemented. Horizontal drilling results in a reduced number of visible vertical wells above ground.2

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What Safety Regulations, Protections, and Controls Exist?

The Environmental Protection Authority (EPA) is the lead regulator of environmental impacts of CSG mining in NSW. The EPA is responsible for regulation and compliance of the 7 legislative acts dealing with CSG activity in NSW.3

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Safety, Regulations, Protections, Controls (cont.)In July 2013, Professor Mary O’Kane, the NSW Chief Scientist & Engineer, released her initial report of the potential impacts of CSG activities on human health and the environment. In short, her report ackowledged the potential risks of CSG mining, but states that these concerns can be offset with perfect engineering, proper regulation, and effective response should an incident occur.3 (The full report can be read here)

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Safety, Regulations, Protections, Controls (cont.)The NSW government has also banned the use of harmful BTEX chemicals (Benzene, Toluene, Ethylbenzene and Xylene) in an attempt to protect ground water, as well as banning the use of evaporated ponds for storing water used in the hydraulic fracturing process.4

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What are the benefits of CSG Mining? Gas from coal seams has been proved to reinvigorate regional communities—providing new jobs and a return on investment. The NSW government has ensured its communities that they will benefit directly from the creation of regional community funds. Furthermore, tapping into the CSG well in NSW could save the state from predicted gas shortages as early as 2014-2015.5

The Controversy

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What is the controversy surrounding CSG mining in NSW?

Landowners and residents in New South Wales are concerned with the possible environmental risks and damages associated with CSG mining. There is strong community activism in the form of organizations, websites, Facebook pages, etc. staunchly against any use of CSG mining in NSW.

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What are the major environmental concerns with CSG mining is NSW?

There is much fear/controversy involving the potential contamination risks involved with CSG mining—specifically to the drinking water in NSW. Five water catchments owned by the Sidney Catchment Authority cover less than 2% of NSW land yet supply drinking water to 60% of its population. Plans exist for the production of hundreds of CSG wells within the area.6

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What are the CSG risks to water?The catchment lands are protected from the public with a $44,000 fine, yet if CSG mining is introduced in the area it could bring far more serious risks. These risks include possible accidental release of franking fluids (such as this May 2011 incident), well failure, and aquifer depletion (described here).7

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The Water Catchment Controversy

Current Premier of NSW, Barry O’Farrell promised before being elected:

“The next Liberal/National Government will ensure that mining cannot occur…in any water catchment area, and will ensure that mining leases and mining exploration permites reflect that common sense; no ifs, no buts, a guarantee.”8

(See video here)

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Water Catchment Controversy (cont.)

However, the NSW Government’s Strategic Regional Land Use Policy, released in September 2012, failed to ban CSG development in drinking water catchments, only labeling the impacts on aquifers as “information to be considered.” And new CSG wells and licenses were approved within catchment areas.8

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Water Catchment Controversy (cont.)Because of the broken promises of the NSW government many community organizations were formed to combat CSG mining within water catchments in NSW, such as the group STOP CSG! As a result of their constant pressures and demonstrations several permits for the energy company Apex were not approved, a clear victory for anti-CSG advocates.

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What is the landholder controversy in NSW?Landholders in NSW own only the surface land of their properties, whereas resources, such as CSG, that exist under that surface are owned by the state.9 This creates a controversial tension between landholders and energy companies seeking to tap their land.

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Such companies ARE however required to enter into a written access agreement with the landowner. These agreements include

information such as where the drilling will occur and a description of the planned methods for drilling.9

Landholder controversy (cont.)

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How did landholder groups react to impending drilling?

Many NSW landholders were not satisfied with their rights and did not wish to have CSG mining or fracking of any kind occurring on their land. Such landholders were encouraged by several different activist groups and communities to “Lock the Gate” to their land from energy companies.10 As a result of such protests, individual landowners were granted greater legal rights by the state (outlined here).

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The push remains, however, in communities and activist groups to completely rid NSW of CSG mining of any kind for fear that the

environmental impacts far outweigh the benefits.

The Fight Continues

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Textual Citations1http://www.csg.nsw.gov.au/the-facts/what-is-csg

2http://www.csg.nsw.gov.au/the-facts/what-is-csg

3 http://www.csg.nsw.gov.au/the-facts/environment-health-and-safety#.UqVYFaU36PE

4 http://www.csg.nsw.gov.au/the-facts/protections-and-controls#.UqVYV6U36PE

5 http://www.csg.nsw.gov.au/the-facts/energy-supply-and-community-benefit#.UqVYj6U36PE

6 http://stopcsg.org/ourwater/

7 http://stopcsg.org/csg-risks/

8 http://stopcsg.org/broken-promises/

9 http://www.csg.nsw.gov.au/the-facts/land-access-exploration-and-production-rights#.UqVZjqU36PE

10 http://www.lockthegate.org.au/landholder_rights

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Photographic Citations1 http://econews.com.au/news-to-sustain-our-world/greens-want-broader-inquiry-into-csg-mining/

2 http://www.news.com.au/national/santos-plugs-gladstone-gas-shortfall/story-e6frfkp9-1226345128780

3 http://www.adelaidenow.com.au/business/santos-chief-says-misinformation-surrounding-coal-seam-gas-debate/story-e6frede3-1226118493890

4 http://en.wikipedia.org/wiki/File:Barry_O%27Farrell-03-03-10.jpg

5 http://stop-csg-illawarra.org/csg-risks/threats-to-water/

6 http://www.theaustralian.com.au/national-affairs/good-times-flow-from-well-of-discontent/story-fnaxx2sv-1226747210575#mm-premium

7 http://theballaratindependent.com.au/news/article/bacchus-marsh-locks-the-gate-to-coal-mining

8 http://www.curtisassociates.com.au/RESOURCECENTRE/tabid/66/EntryId/7/Coal-Seam-Gas-CSG-mining-and-the-need-for-due-diligence.aspx