Coal Seam Gas mining in NSW declared manageable by Chief Scientist Professor Mary O’Kane

CHIEF Scientist Professor Mary O’Kane has declared coal seam gas mining in NSW can be “managed” after handing down an independent review.

Members of a Lane Cove group against coal seam gas and coal mining Our Land, Our Water, Our Future group have been banned from this year's Lane Cove Village Fair. Picture: ELENOR TEDENBORG

CHIEF Scientist Professor Mary O’Kane has declared coal seam gas mining in NSW can be “managed” after handing down an independent review into the impact of CSG on human health and the environment.

After a 19-month wait, Ms O’Kane last night outlined 16 recommendations to the Baird Government to deliver safe CSG mining standards.

“Implementing the recommendations of the Review involves non-trivial tasks,” Ms O’Kane said.

The report, which supports the safe extraction of CSG, comes only a week after Energy Minister Anthony Roberts imposed a 12-month freeze on all new CSG mining licences in NSW.

Energy Minister Anthony Roberts has extended by 12 months a freeze on all new CSG mining licences in NSW.

Ms O’Kane — who recommended the establishment of an oversight body and a data repository — conceded there could be “unexpected events, learnings or even accidents” in regions where hydrogeology had not been fully investigated.

“This is common for new applications in the extractive industries and underlines the need for Government and industry to approach these issues with eyes wide open … and a commitment to addressing any problems promptly with rapid emergency response and effective remediation.”

The review team sought advice from global experts, government agencies, industry and community groups and received 266 submissions

Ms O’Kane said CSG could be managed through designation of appropriate extraction locations, improved engineering standards, better monitoring of operations, a well-trained workforce and application of new technologies.

“Having considered all the information from these sources and noting the rapid evolution of technological developments applicable to CSG from a wide range of disciplines, the Review concluded that the technical challenges and risks posed by the CSG industry can in general be managed,” the report said.

Protesters blockade the gate near Gloucester. Picture: Peter Lorimer.

Ms O’Kane’s recommendations were grouped into themes, including “intent, communication, transparency and fairness”, “regulatory reform”, “managing risk”, “training” and “legacy”.

A Santos spokesman last night told The Daily Telegraph natural gas supply in NSW was “vital to the economic viability of local industry and affordable energy for families”.

Gas bills increased by 11.2 per cent in July and are expected to spike on the back of a forecast doubling of wholesale gas prices.

A Santos coal seam gas well in Pilliga near Narrabri, NSW.

“Continued delays in developing natural gas resources will only increase cost pressures for business and families,” the Santos spokesman said.

“The overwhelming message from these reports is that when properly regulated natural gas extraction from coal seams can be done in a safe and sustainable manner.”

Ms O’Kane said some CSG companies were viewed by some in the community as “untrustworthy”.

“On the other hand, landowners and community members who are in favour of CSG often feel that the debate has been “hijacked by environmental activists who are “using” the community for their own ends,” she said.

The review team sought advice from global experts, government agencies, industry and community groups and received 266 submissions

“Lack of consultation, inadequate compensation, property value decreases, and potential legacy issues are also cited as major issues by landowners as are the negative impacts on amenity and a lack of adequate benefits for their neighbours and their communities.”

Acting Energy Minister Kevin Humphries told The Daily Telegraph the government would assess the document, viewed by many in the industry as the blueprint for the future of gas extraction in NSW.

“We are committed to a safe and sustainable gas industry, while protecting the environment and the State’s other critical industries,” Mr Humphries said.

Mr Roberts, currently away from work, has come under fire in recent weeks from the Abbott Government and mining executives for failing to move more quickly on opening up NSW gas reserves.

Gas wells , drilling rigs , pipes and mining infrastructure run by QGC in Queensland.

Lock The Gate spokeswoman Carmel Flint today said the report highlighted serious risks from coal seam gas mining.

“The Chief Scientist report released yesterday made it clear that CSG mining could contaminate groundwater and food products and could place human health at risk, which are exactly the concerns which have been raised by the community for several years” Ms Flint said.

“The report has recommended a massive overhaul of the laws relating to CSG mining and an entirely new approach to collection of baseline environmental data and monitoring.

Lock The Gate has called for a freeze on the Narrabri and Gloucester projects “until far-reaching law reforms are implemented and all of the potential health risks assessed”.

NSW currently imports 95 per cent of its gas supply. The Narrabri and Gloucester projects, run by Santos and AGL, have the capability of producing up to 65 per cent of the state’s gas needs.