MEDIA RELEASE

6 July 2012

The Greens NSW spokesperson on mining Jeremy Buckingham has expressed concern at the extremely light fines imposed on Santos for polluting waterways with coal seam gas waste water, after the Environmental Protection Authority (EPA) issued two penalty notices for a total fine of only $3,000.

The EPA announced two penalty notices to Eastern Star Gas, and issued a formal warning to Santos – http://bit.ly/LZ7by8

“It is good that the EPA has investigated these incidents of coal seam gas pollution, but the penalty is hardly a disincentive to the industry not to pollute,” said Greens MP Jeremy Buckingham.

“Coal seam gas produces large amounts of waste water that can be highly saline and can contain heavy metals and volatile organic compounds and poses a risk to our water resources.

“The industry claims it does not pollute water, but here we have two fines and one warning for water pollution. 

“The government should not let this industry go ahead while it remains unclear how it can deal with the large volumes of waste water it produces without risk to the environment,” he said.

Contact: Max Phillips – 9230 2202  or  0419 444 916

MEDIA RELEASE

22 January 2012

The Greens NSW spokesperson on mining Jeremy Buckingham seized on revelations from Santos that there have been 20 serious incidents at its coal seam gas operations in the Pilliga Forest, many of which involved spills of toxic coal seam gas water, to renew the Greens’ call for a moratorium on the industry.

“These revelations are yet more proof that coal seam gas extraction is a high risk activity that should not be allowed to roll out across our state,” said Greens MP Jeremy Buckingham.

“Twenty incidents from around 35 pilot gas wells is a high ratio.  How many incidents will there be if Santos are allowed to drill their planned 1,100 coal seam gas wells in the Pilliga Forest?

“Barry O’Farrell has a chance to be either an environmental hero or villain.  He should implement a moratorium on the coal seam gas industry.

“NSW should be investing in truly clean energy sources like solar and wind.  We do not need to go down the route of a new fossil fuel with all the environmental risks that are attached.

“Santos owned a significant stake – 20 per cent – of Eastern Star Gas since 2009.  It’s not good enough to blame the former operators as if Santos was not involved.

“Santos were loose with the truth at the beginning of this year when they dismissed a spill reported by a local farmer as ‘eucalyptus leaves discolouring the water’.   It was later revealed that in fact 10,000 litres of coal seam gas water had spilled in the area killing a large tract of vegetation.

“This is a serious industry, using and extracting serious and potentially harmful industrial chemicals on farms, in our forests and even near homes in our cities.”

Contact: Max Phillips – 9230 2202  or  0419 444 916

MEDIA RELEASE

9 February 2012

Greens mining spokesperson Jeremy Buckingham today called on the government to support his Coal Seam Gas Moratorium Bill next week after scientific analysis of a coal seam gas water spill in the Pilliga Forest revealed high levels of heavy metals and salts.

“The test results prove that the coal seam gas industry is a toxic risk to farms, water supplies and the environment,” said Greens MP Jeremy Buckingham.

“It is frightening and reckless that high levels of salt and heavy metals, such as mercury and arsenic have been released into the environment.

“The presence of volatile hydrocarbons in the samples suggest that there have been multiple and recent spills.  The company should come clean on how many spills and just what else has happened with coal seam gas in the Pilliga.

“These tests prove that the water brought up from the coal seams is highly toxic.  The National Water Commission estimates that the coal seam gas industry could extract 300 billion litres of water every year.

“Even if the risks of spills or contamination of aquifers can be minimised, there will still be a huge amount of heavy metals, chemicals and salts associated with coal seam gas to be treated and disposed of.

“We are already seeing serious incidents with only a few wells.  If this industry is allowed to roll out we are facing risks from tens of thousands of wells – particularly in flood prone or high rainfall areas.

“Barry O’Farrell has a chance to act when the Greens bill for a 12 month moratorium on coal seam gas comes before the Parliament next week.”

Listen to Alan Jones talk about this issue.

Watch ABC TV News story on this issue.

Contact: Max Phillips – 9230 2202  or  0419 444 916

MEDIA RELEASE – 13 January 2012

Green MP and mining spokesperson Jeremy Buckingham has slammed Santos for taking months to disclose a leak of 10,000 litres of untreated coal seam gas water at its Narrabri Gas Project in the Pilliga Forest.

A tarry substance near coal seam gas operations in the Pilliga Forest NSW

Santos released a statement today admitting 10,000 litres of untreated saline coal seam gas water had leaked into the environment.  Previously Santos had denied such a spill and blamed eucalyptus leaves ‘discolouring rain water’. http://www.santos.com/Archive/NewsDetail.aspx?p=121&id=1304

The Department of Primary Industries has also released a statement saying that they were not notified of the leak when it occurred.  They have described it as a breach of the exploration licence, and they are pursuing enforcement actions. http://www.dpi.nsw.gov.au/aboutus/news/recent-news/minerals-and-petroleum/saline-water-leak

“This leak of waste water has poisoned part of the Pilliga forest and shows how high risk the coal seam gas industry is to our land and water resources,” said Greens MP Jeremy Buckingham.

“This spill of coal seam gas waste water reinforces the need for a moratorium on any further coal seam gas exploration across the entire state. This industry is clearly not safe and continues to be shown to be failing to meet its legal obligations and its obligations to the community.

“Santos has shown it is no different to other gas companies. They are using the tried and tested model of deny, deny, deny and then when forced by overwhelming evidence into a mea culpa they claim to be cooperating with the authorities.

“The Government’s own media release fails to acknowledge that the community reported tree deaths in the area to the Department of Resources and Energy on 28 October last year. Now that the company has been forced to admit through community pressure of a coal seam gas water spill in the area the Government is trying to say they have only just be made aware by Santos.

“Barry O’Farrell cannot ignore the mounting failures of the NSW Department of Energy and Resources to monitor and regulate the coal seam gas industry.

“I have toured the Pilliga Forest and seen first hand the dead trees adjacent to gas wells and dead animals in and near unlined drilling ponds. It is clear as day that the Pilliga gas project is having a huge environmental impact on the Forest.

“The Government last year accused community campaigners of tampering with wells in the Pilliga after footage showed gas leaking from pipelines in the Forest. It was later shown that a complaint with video evidence of the same leak had been sent to the government previously and had gone un-investigated,” Mr Buckingham said.

Contact: Max Phillips – 9230 2202  or  0419 444 916

Local farmer who first discovered the spill on New Years Eve – Tony Pickard: 67932104

MEDIA RELEASE – 10 January 2012

The Greens NSW spokesperson on mining Jeremy Buckingham said today that a new study into the health impacts of gas extraction on humans and animals highlights the need for precaution before opening up NSW to the risks associated with unconventional gas extraction, such as coal seam gas.

A tarry substance near coal seam gas operations in the Pilliga Forest NSW

The study: Impacts of gas drilling on human and animals health by Dr Michelle Bamberger and Professor Robert E Oswald, published in New Solutions: a journal of environmental and occupational health policy published by the University of Massachusetts, investigates a number of animal and health incidents related to gas extraction in six US states.  It found that stock and domestic animals died, got sick or had a higher number of still births and deformities when exposed to chemicals emanating from gas extraction.

“This study should be heeded by policy makers in Australia. The study finds a concerning correlation between contamination and severe health effects on both animals and humans,” said Greens MP Jeremy Buckingham.

“Many of the methods, chemicals and techniques used in US conventional and unconventional gas extraction are the same as those used in Australia with coal seam gas.

“The last thing farmers need is another risk to the health and productivity of their livestock because of chemicals related and released by a coal seam gas industry.

“The precautionary principle must be implemented when it comes to coal seam gas.  The risks are far too high and the consequences too great to unleash this industry in NSW.

“This is a heavy industry, using and extracting potentially harmful industrial chemicals on farms, in our forests and even near homes in our cities.

“I’ve already seen tracts of dead trees where coal seam gas water has leaked through the environment in the Pilliga Forest.  Recent reports of further spills and tree kills in this area are concerning.”

Contact: Max Phillips – 9230 2202  or  0419 444 916

See also the National Toxics Network Australia media release.

MEDIA RELEASE – 5 January 2012

The Greens NSW spokesperson on mining Jeremy Buckingham has hit back at Santos’ claims on coal seam gas royalties saying Santos spokesperson Matthew Doman claims where either disingenuous or highlights a lack of understanding of the financial contribution resources projects make to governments and communities, after he told Sky Business yesterday that Santos would start paying royalties once they entered the production phase.  

In NSW there is a royalty holiday for the first 5 years of production.  In the 6^th year a royalty rate of 6% applies, rising 1% per year to 10% from the 10th year onwards.

Mr Dorman told Sky News “That’s right, you pay royalties once you enter the production phase”, omitting the very important fact that there is a five year royalty holiday for petroleum products in NSW where the Pilliga project is located.

“Santos are trying to spin their way out of the fact that NSW taxpayers will be ripped off in terms of the return they’ll get for the exploitation of this gas resource.  Yet it is the community that will bear the risks to water, agriculture and the environment,” said Greens MP Jeremy Buckingham.

“For the first five years of each coal seam gas well, when production of gas is likely to be highest, Santos will not pay one red cent in royalties.

“Barry O’Farrell and Mike Baird need to answer why coal seam gas operators pay nothing in NSW for the first five years, yet Queenslanders get 10% in royalties from day one.  The Queensland royalty rate certainly hasn’t slowed the industry up there.

“In 2010 the only producing coal seam gas field in NSW, AGL’s Camden project with around 80-90 producing wells paid only $462,093 in royalties in 2009-2010.   How many wells is Santos planning in NSW to deliver their promised $150 million a year in royalties?”

Contact: Max Phillips – 9230 2202  or  0419 444 916

Minerals Royalty revenue in NSW 2005 – 2010: http://bit.ly/z3TgGu

Petroleum (Onshore) Regulation 2007

Current version for 2 September 2011 to date (accessed 5 January 2012 at 12:21)

23 Rate of royalty: section 85

(1)  For the purposes of section 85 (2) of the Act, the prescribed annual rate of royalty is as follows:

(a)  for the first 5 years from the first commercial production date—nil,

(b)  for the 6th, 7th, 8th and 9th years from the first commercial production date—6%, 7%, 8% and 9%, respectively, of the value at the well-head of the petroleum,

(c)  for the 10th and subsequent years from the first commercial production date—10% of the value at the well-head of the petroleum.

(2)  For the purposes of this clause:

(a)  the first commercial production date is the date on which commercial production of petroleum first began on the land to which the petroleum title relates, and

(b)  a period of time referred to in subclause (1) is to be calculated inclusive of the first commercial production date, and

(c)  the prescribed annual rate of royalty is to be determined only by reference to the first commercial production date and not by reference to the date or dates on which commercial production of petroleum began in relation to each well on the land to which the petroleum title relates.

MEDIA RELEASE

3 January 2012

The Greens NSW spokesperson on mining Jeremy Buckingham has called for the land holder access agreement between Forests NSW and Santos to be renegotiated after the agreements released by Freedom of Information revealed that Forests NSW was only receiving a pathetic $2,500 per annum from every active coal seam gas well.

Eastern Star Gas (now purchased by Santos) has previously said that each well in the Pilliga project would produce revenue of approximately $800,000.  A $2,500 payment per well means Forests NSW will receive only 0.3% of the revenue from each well.

“This revelation shows how little NSW taxpayers are getting for the massive amount of damage this industry is doing to the Pilliga Forest and potentially our waterways and aquifers,” said Greens MP Jeremy Buckingham.

“Santos stand to make billions by pock-marking the Pilliga forest if its proposal for 1,100 coal seam gas wells if approved.  But NSW taxpayers will get little compensation .  This project is a dud.

“I’ve seen the damage done by the pilot coal seam gas operations in the Pilliga, including massive amounts of clearing, large tracts of dead trees where coal seam gas water has spilled, unlined waste water ponds, introduced weeds, large evaporation ponds and leaking infrastructure.

“Santos plans to turn an important nature reserve into a heavy industrial zone, but pay virtually nothing to the community.

“Taxpayers will also be ripped off when it comes to royalties from coal seam gas, with a five year royalty holiday for gas in NSW.  In Queensland gas royalties are 10% from day one, yet here in NSW the gas companies will pay no royalties for the first five years, and only 10% after 10 years of operations.  It’s a swindle,” he said.

Contact: Max Phillips – 9230 2202  or  0419 444 916