Anti-coal seam gas campaigners are urging the NSW government not to renew AGL’s exploration licence which covers parts of the Sydney and Illawarra water catchment.
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The government on Wednesday announced it would extend its CSG buyback scheme for exploration licences for another three months.
The extension has caused environmentalists to sharpen their focus on AGL’s Petroleum Exploration Licence 2, particularly because it covers much of the Illawarra and Sydney water catchment, including many creeks and dams.
The enormous PEL2 extends from Robertson in the south, to Blaxland in the west, and from Thirroul through Campbelltown, all the way past Wisemans Ferry on the Hawkesbury River.
Environmentalists want PEL2 to be bought back, or for its renewal to be refused, as the licence has been operating on a continuing basis since lapsing four years ago.
‘‘PEL2 expired in 2011, but the government is actively considering renewing the licence, which is currently held by AGL,’’ Nature Conservation Council campaign director Daisy Barham said.
‘‘The Baird government does not have to, and should not, renew this licence because CSG development in Sydney’s drinking water catchment is simply too risky,’’ Ms Barham said.
AGL had previously shown no sign of being interested in selling back PEL2.
This week’s buy-back extension, however, comes as AGL is conducting an asset review across its gas operations.
It had announced a review of its upstream gas business in February, and it soon afterwards sold back its CSG exploration licence on the Central Coast.
On Wednesday however the company would not say whether it was considering the buy-back for PEL2, or any aspects of its CSG operations. ‘‘Due to the ongoing nature of the review of the AGL upstream gas business, we will not comment on options for that business,’’ an AGL spokesman said.
Meanwhile, the Environment Protection Authority has taken over as the sole authority for compliance and enforcement of the CSG industry in NSW.
“Individuals or communities now have one place to go should they believe violations of title, regulations or law are occurring,” Minister for Industry, Resources and Energy, Anthony Roberts said.
Environment Minister Mark Speakman said $6.8million has been allocated over 2015-16 to resource the EPA’s new role.
‘‘Communities, businesses and industry respect the EPA because it has a strong and trusted enforcement history,’’ he said.
The establishment of a single regulator was recommended by NSW chief scientist Mary O’Kane in her review of the industry.
She also recommended separating the assessment and granting of gas exploration licences, from the regulatory body. Gas exploration will be assessed and determined by the Minister for Resources and Energy, while production will be assessed and determined by the Planning Minister, or the Planning Assessment Commission.
blangford@fairfaxmedia.com.au