SANTOS has received a major boost to its hopes of creating a $2 billion coal seam gas field in the region after a report concluded risks associated with the industry are “not significantly” greater than any other form of mining.
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NSW Chief Scientist Mary O’Kane expressed the view that environmental concerns over the controversial industry could be “managed” through careful planning, comprehensive monitoring and high standards of engineering.
Professor O’Kane’s much-anticipated final report into the burgeoning industry in NSW was released late on Tuesday and appears to represent a bitter blow to the anti-CSG campaign run by environmental and farming groups.
“This review examined this issue in detail and concluded that, while the CSG industry has several aspects that need careful attention, as do almost all industries, it is not significantly more likely to be more damaging or dangerous than other extractive industries,” she said.
“All industries have risks and, like any other, it is inevitable that the CSG industry will have some unintended consequences, including as the result of accidents, human error and natural disasters.”
Professor O’Kane details in the report 16 recommendations for the Baird government to consider implementing in order to increase the understanding – and reduce the risks – of coal seam gas extraction.
These include the government using its planning powers to designate areas where activity is permitted, establishing an expert advisory body on the coal seam gas industry and monitoring the cumulative impacts of the industry on water sources.
NSW Farmers president Fiona Simson said it would be “ill-informed” to think the report gave a “green light” to coal seam gas extraction in the state and called on the government to implement Professor O’Kane’s recommendations.
“In many ways, her findings come as no surprise and reinforce and validate what it is that we, as an organisation, have been saying for a long time now,” she said.
“We have always made it clear that we are not against this industry, but there are areas that should be off limits.”
Coonamble farmer Mark Robinson, who was arrested in February after locking himself to a gate and delaying work at the Santos site in the Pilliga, said the Baird government must intervene and mandate the undertaking of extensive water studies.
“The report by the chief scientist ... highlights that there is inadequate information available to properly assess the impacts of CSG mining on groundwater resources in our region,” he said.
“The NSW government will be taking major risks with the future of our water supplies, unless they put an immediate halt to any further CSG drilling until proper baseline studies ... have been conducted over several years.”
Santos Energy NSW general manager Peter Mitchley said the company, which is compiling the environmental impact statement for its 850-well Narrabri Gas Project, would take “a keen interest” in Professor O’Kane’s report.
“We are confident that with robust science, strong regulation and a continued commitment to work closely with communities, Santos can continue to develop the much-needed natural gas for the homes and businesses of NSW,” he said.