The Illawarra's leading coal seam gas explorer was "caught by surprise" by the state government's ban on CSG activities in water-catchment special areas, and the company's chairman says the announcement "smells like a set-up".
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Magnum Gas and Power chairman Tom Fontaine said Tuesday's announcement of the water catchment ban was odd, as his company's operations had already been halted.
"Absolutely nothing has changed," he said.
"There is already an effective moratorium. We're waiting on a report from the chief scientist - we cannot do anything on the catchment."
Magnum, formerly Ormil Energy, is in a joint venture with Apex Energy to explore coal seam gas reserves in the Illawarra, with most of the operation's test wells planned for catchment land near Darkes Forest.
But the Planning Assessment Commission has declined to extend their licence until a review from NSW Chief Scientist and Engineer Mary O'Kane.
The new moratorium will also be in place until Professor O'Kane's investigation is completed, after which Member for Heathcote Lee Evans has said he hopes for a more permanent decision on drilling in special areas.
"This is early days, but it's looking like we've got a positive outcome," he said on Tuesday.
Mr Fontaine said he was concerned the government was planning a permanent ban in catchment areas.
"It smells like a set-up - in the sense that, if nothing has changed, why make an announcement?"
He said some catchment areas were "not pristine" and areas around Picton and Appin roads had major roads going through them and coalmining beneath.
"There's hundreds of CSG wells that have already been drilled on the catchment - they're just called gas absorption wells by the coalmining companies," he said.
Environment groups said yesterday that longwall coalmining could be more damaging to water supplies, with examples of creek beds cracked and drained in mining areas nearby.
"It's not enough to put a moratorium on proposed CSG," Total Environment Centre director Jeff Angel said.
"Serious damage is happening right now with longwall mining, which is destined to get worse as the mines expand.
"A spokeswoman for Illawarra Coal, which operates mines under special areas above the Illawarra escarpment, said its operations were all within the rules."
Illawarra Coal has been mining at Dendrobium since approval was granted by the NSW government in 2001," she said.
"All of our mining activities are undertaken in accordance with NSW government regulations and conditions."
"Special areas" are the parts of the catchment area closest to water bodies.
People entering these areas without permission risk significant fines.
