Coal Seam Gas: Why all the fuss?

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1 Coal Seam Gas: Why all the fuss? Warwick Giblin FEIANZ 1

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3 1. Lack of adoption of the precautionary principle 2. Technological change - internet 3. Farmer company interaction 4. Proponent assumed having law & govt policy on its side was enough to win the day 5. Traditional measure of wealth hides environmental & social costs & benefits 3

4 My farm is my castle & home (scenery,ambience My land is everything A stranger appears Stranger is big, strong & from a different world Little time to build a trusting relationship Farmer unsure, lots of unanswered questions eg who can we trust about groundwater impacts? What is fair compensation? Stranger throws his weight around Farmer digs his toes in - CONFLICT 4

5 We have followed due process; have a licence to explore/produce The law to enter farmland is on our side We have commercial pressures to develop the project; get on-stream & produce revenue Production will lift Co value & share price We ve offered compensation, farmers not playing fair Royalties & jobs for the State surely a winner! Green energy source Company dig its toes in - CONFLICT 5

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7 Farmers have the internet & smartphones! Technology has enabled bottom-up communication ie farmers linked up to form a critical mass You Tube = Filmmaker Mobile phone= Paparazzi Twitter/Blog= Reporter Companies thought complying with the law & $$ promises was enough Biggest flaw: Precautionary Principle ignored 7

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9 If an action or policy has a suspected risk of causing harm to the public or to the environment, in the absence of scientific consensus that the action or policy is harmful, the burden of proof that it is not harmful falls on those taking the action. 9

10 FIRST: Determine capacity of the natural systems especially the hydrogeology Goal: maintain long term sustainable resource use: a) Water resources/aquatic ecosystems b) Agric land c) Biodiversity veg management THEN - regional land use planning based on values & risks of ALL the resources 10

11 Defn: A measure of socio-political sentiment towards a project, company or industry Co-ownership: high trust & active support Approval: support Acceptance: listen & consider; wait & see Withheld/withdrawn: opposition 11

12 Embrace Precautionary Principle Independent baseline, catchment wide studies, with stakeholders involved, to determine risks of serious damage to g/water & s/water quantity & quality Cumulative impact assessment legislated rights of landholders/farmers Community engagement before devel concept locked in True sustainability price environ costs & benefits 12

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14 GDP ignores costs of environmental damage & resource depletion defensive expenditures such as pollution clean-up costs & vehicle accident repairs increase value of GDP Build social wellbeing & ecological health measures into progress mix 14

15 GDP wrong metric, short term focus Measure for both today and future Tax bads (pollution), not the goods (income) Need metrics for social wellbeing + healthy ecosystems + long term economics, eg: UN & UK Green Economy Initiatives UN Human Development Index Genuine Progress Indicator (US think tank) 15

16 NSW Upper House Inquiry Code of Practice for CSG exploration Applications for CSG exploration licences on public exhibition Agric Impact Statement req d for new CSG extraction applications Aquifer Interference Policy Ban on toxic chemicals (BTEX) in fraccing process Ban on use of evaporation ponds for production waters New well design specs Strategic Regional Land Use Plans - Upper Hunter & Liverpool Plains: Panel to assess proposals in high value agric areas before DA submitted No more major cash payments for exploration licences Guideline for community consultation re exploration End to the 5 yr 10% royalty holiday Land & Water Commissioner vet CSG activities on prime ag land Standardised land access agreements Regional Community Funds: Co s fund local projects 16

17 Senate Inquiry EPBC Act: Expert Scientific Cttee bioregional/catchment-wide cumulative impact assessment re CSG & mining projects Feds: Plan a national regulatory approach re CSG (end 2012) 17

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19 Warwick Giblin Ph

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22 Surat & Bowen Basins (Qld): 3,000 wells + 4,000km pipeline; >30,000 more?? Gunnedah Basin: 550 wells, maybe 20,000 planned?? Camden: 78 wells operating + expansion Gloucester: 110 wells approved -330 total Hunter Valley: exploration phase (Broke + UH Casino: 60 exploration wells Wollongong: 15 wells St Peters: 23

23 Emits ~ 40% less GHG than coal when used for power generation Saline production water Risk of aquifer impacts Chemicals in fracking process Surface infrastructure spread 24