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Queensland to take up ownership of contaminated Linc Energy site

A contaminated former gas mine operated by Linc Energy is set to be given to the Queensland Government.

The Chinchilla Linc Energy site. Photo Jessica Flynn
The Chinchilla Linc Energy site. Photo Jessica Flynn

The contaminated former gas mine operated by Linc Energy on Queensland’s Darling Downs is set to be given to the Queensland Government.

The Department of Natural Resources and Mines will be tasked with rehabilitating the farming land, near Chinchilla, west of Brisbane, which was used as Linc’s underground coal gasification facility.

Once valued at $1 billion, Linc Energy, which specialised in coal-based synthetic fuel production, went into liquidation in 2016.

Previously described as the Palaszczuk government as “the biggest pollution event probably in Queensland’s history’’, a 10-week trial in the Brisbane District Court in March found Linc guilty of five counts of wilfully and unlawfully causing environmental harm.

The criminal trial was unusual in that there was no defence after Linc’s liquidators successfully argued against defending the case.

The former Linc Energy underground coal gasification pilot plant at Chinchilla.  Picture: supplied
The former Linc Energy underground coal gasification pilot plant at Chinchilla. Picture: supplied

Linc founder Peter Bond described the trial as a “waste of taxpayer money”.

The rehabilitation bill has been estimated up to $78 million.

At a directions hearing in Brisbane’s District Courton Wednesday, the government filed an application seeking to have the disclaimed land vested to it.

Justice David Boddice said the liquidators did not intend to attend the hearing and had indicated they did not object to the order.

“The order is sought in circumstances where Linc operated an underground coal gasification facility on the specified land,” he said.

“After the company was facing liquidation, the liquidators disclaimed the land.

“The reason for that disclaiming was that the cost, charges and expenses incurred in realising the land would exceed its proceeds.”

Mr Boddice said the department had already made steps towards rehabilitation and would continue to do so.

He granted the government leave to pursue the application to take ownership of the land.

Charlie Peel
Charlie PeelRural reporter

Charlie Peel is The Australian’s rural reporter, covering agriculture, politics and issues affecting life outside of Australia’s capital cities. He began his career in rural Queensland before joining The Australian in 2017. Since then, Charlie has covered court, crime, state and federal politics and general news. He has reported on cyclones, floods, bushfires, droughts, corporate trials, election campaigns and major sporting events.

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Original URL: https://www.theaustralian.com.au/business/queensland-to-take-up-ownership-of-contaminated-linc-energy-site/news-story/01e8ca461b20a8b7ac825a0615e1ee7a