QGC plays down CBM fears

Release Date: 2011-03-15

Australian coaldbed methane (CBM) player Queensland Gas Company (QGC) has acknowledged public concern over Australia’s growing CBM industry as it faces protests over its operations in Queensland.

QGC said it accepted that some people had concerns about leaking gas wells, the possible effect of gas extraction on water tables, hydraulic fracturing of coalbeds and compensation for landholders and admitted it could have done more to ease community concern.

“We could have explained ourselves better,” senior vice president Jim Knudsen admitted.

“But people should know that none of our wells are unsafe or a risk to people or the environment.”

One of the largest areas of concern amongst the community is the effects the industry could have ground water tables.

While admitting gas production could have a minor effect on water tables, QGC said its water monitoring system would detect any changes to water tables long before they became significant.

Last year the Queensland government banned the use of benzene, toluene, ethylbenzene and xylenes (BTEX) chemicals in fraccing operations.

At the time of the ban the government said it had also received assurances from the industry that BTEX chemicals had not previously been used in any fraccing operations.

QGC said none of the chemicals it used during hydraulic fraccing were known to cause cancer and Knudsen said the company was actively looking for “greener” chemicals to use in the process.

“We have no evidence of water resources being contaminated by hydraulic fracturing, primarily because the concentration of chemicals in the water is so low as to be almost undetectable,” he said.

The announcement from QGC came as protestors this week formed a blockade to prevent the company from gaining access to properties to lay gas pipes.

However, the company maintains that it has permission from all the relevant landholders and Knudsen repeated that QGC did not drill wells or put infrastructure on properties without landholder consent or without agreement on compensation.

“We remain willing to discuss these issues with all stakeholders, particularly landholders directly and indirectly affected by our activities, and with the wider community,” he said.

Knudsen said QGC was currently in negotiations with about 1000 landholders and had signed agreements with more than 600 of them.

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