Mining battle hits vein of bitterness

FORMER premier and Infrastructure NSW chairman Nick Greiner pocketed $1 million from mining company AGL to help coal seam gas in the Hunter Valley.

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FORMER premier and Infrastructure NSW chairman Nick Greiner pocketed $1 million from mining company AGL to help open the gate to coal seam gas in the Hunter Valley.

GThe Sunday Telegraph can reveal Setrave, a company owned by Mr Greiner, sold Spring Mountain vineyard, near Broke, for $1 million to AGL Energy Limited in 2009.

AGL has explored for gas and now employs winemaker Brian McGuigan to make semillon under a private label used by its executives.

Controversy is raging over coal seam gas in the Hunter, with millionaires John Singleton, Gerry Harvey and Alan Jones joining winemakers and horse-breeders in a bitter battle against resource companies and any residents who allow exploration on their land.

Mr Harvey, founder of Harvey Norman, said Mr Greiner was among "a whole heap of buggers who've sold their farms and the magic dollar wins out more often than not. You've got [independent federal MP] Tony Windsor who sold his farm too - it's more than Nick Greiner".

Mr Singleton, who owns the Macquarie Radio Network, on which Jones fumes daily against coal seam gas, said: "We should protect good agricultural food-growing areas. It's good agricultural land. We should mine the rest and be a food and resources economy."

But Mr Singleton, who has sold out of the Hunter stud Vinery, which he once co-owned with Mr Harvey, added: "I'd rather have coal seam gas than f ... ing coal."

Mr Greiner, chairman of Infrastructure NSW, declined requests from The Sunday Telegraph for an interview. "Tks but totally not interested," he said in an email. "Pls give up," he said in another.

In 1997 Setrave Pty Ltd, of which Mr Greiner is director, bought a parcel of land on Oakley Lane, near Broke, for $740,000, then subdivided the land and sold a 55ha block for $340,000 in 2002 to neighbours Ralph and Karen Northey, then in 2009 sold the remaining 62ha to AGL Energy Limited for $1 million.

In 2008, the Labor government appointed Mr Greiner to broker a deal between Hunter miners to improve loading capacity of the Port of Newcastle.

AGL has drilled three exploration wells on the Spring Mountain vineyard near Broke and is making about 7500 cases of wine from the vineyard under its own label for the exclusive use of AGL executives and staff.

Mr McGuigan said he felt "like a spy" for both sides, admitting to concerns gas drilling could compromise the Hunter's rural nature.

"I'm not soft on it," he said. "But so far everything AGL has done has been exemplary.

"AGL has been smart. What they have said is that we want to show viticulture can live side by side with CSG and I'm the meat in the sandwich."AGL says it bought Spring Mountain "as part of the Hunter Gas Project CSG exploration program to demonstrate that gas exploration and extraction can successfully co-exist with vineyards."

Hunter Valley Protection Alliance president Graeme Gibson said the anti-gas "Lock the Gate" campaign had forced AGL to buy up farms to avoid confrontation. He accused AGL of misusing the McGuigan name.

Fourth-generation winemaker Bruce Tyrell said: "I can't stop Nick Greiner - but it affects other people and the effects go all the way down the line."

Winemaker Ian Napier from Wombat Crossing also expressed concern.

"I think everyone has the right to sell their property, but I wouldn't have sold to AGL on principle," he said. "If you do, like Greiner did, yes you are opening the door to CSG.

"I hope the politicians are thinking about what allowing a gas field in a vineyard will do to the industry. It could kill our industry."

AGL has two petroleum exploration licences covering most of the Hunter. It plans 110 gas extraction wells and has secured 22 access agreements with farmers and bought four properties.

AGL defended its exploration of the Hunter region, stating all their activities required environmental assessments and approvals and said it had "an extensive program to proactively communicate with the community and regulatory authorities."

AGL said CSG is "environmentally clean compared to coal. We therefore believe the substantial project benefits clearly outweigh any perceived negative effects."

Santos has a licence over the Upper Hunter, with five exploratory wells drilled.

A spokesman for Santos was keen to offer examples of farmers who had co-operated with them in other regions to prove they could co-exist with farming elsewhere.