UNCONVENTIONAL gas extraction has no place in areas of Australia that rely entirely on groundwater, according to a NSW grazier visiting Adelaide for the recent Santos annual meeting.
Gunnedah Shire Council councillor and Mullaley Gas & Pipeline Accord chairman David Quince, Tambar Springs, was one of about 160 Santos shareholders who unsuccessfully called for a resolution against its coal seam gas project development near Narrabri, in the Pilliga State Forest, NSW.
He said unconventional gas, such as the shale gas industry proposed for the South East, had prior history in only two countries and they had alternative water sources to groundwater - the United States and Canada.
"That's an important point," Mr Quince said.
"Americans have a history in the abuse of their groundwater and aquifers but they're not reliant on it, whereas in Australia we have only our groundwater."
Santos did not have plans to operate in the SE, but with several other mining companies investing into the region and undertaking exploratory drilling, people needed to band together and ensure they were informed about all the risks involved in the industrialisation of agricultural areas.
"If it goes ahead, you're looking at an industry that has a lifespan of just 20 years," Mr Quince said.
"It's ridiculous."
Mixed farmers Neil and Anne Kennedy, Coonamble, NSW, who also travelled to Adelaide for the Santos meeting, said the Narrabri site had been riddled with problems.
In 2010, polluted water was discharged from CSG operations that were then owned by Eastern Star Gas, into Bohena Creek.
The company was fined by the NSW Environmental Protection Authority but multiple leaks and spills continued, including about 7000 litres in June, 2011.
Santos took over the site in late 2011, along with full responsibility for ESG failings. After assessing ESG operations, it submitted a report to the NSW government along with plans to address environmental deficiencies.
It was fined for each of ESG's spillages but the fines were reduced because of Santos' guilty plea and its cooperation with authorities.
But Mrs Kennedy said problems continued despite Santos taking over, including more spillages, and leaking wastewater treatment facilities built by ESG and found to be contaminating groundwater with elevated levels of uranium.
"Santos knew it was leaking but they went on using it," she said.
"We've got a great pool of uranium-infested drilling mud sitting above our aquifer so we're not real happy about it."
A spokesperson for Santos said the company had been open and transparent about all the site's problems since taking it over.
"We're required to report to authorities, for example, if we spill a bucket of water," he said. "There was an issue like that a few months ago, a leak of salty water from a facility. We reported that and cleaned it up as obliged. Obviously there are salts in it and it shouldn't be spilt, but the environmental impacts were negligible."
* Full report in Stock Journal, May 29, 2014 issue.
Malcolm Sutton
Stock Journal's news journalist and magazine editor.
Stock Journal's news journalist and magazine editor.
