Santos fails to meet deadline to fast-track Narrabri CSG play

SANTOS has missed a key deadline to provide investment certainty for the trouble-plagued Narrabri coal-seam gas project.

SANTOS has missed a key deadline in its memorandum of understanding with the NSW government to fast-track a development decision and provide investment certainty for the trouble-plagued Narrabri coal-seam gas project.

Under the terms of the agreement signed by Deputy Premier Andrew Stoner and Santos vice-president James Baulderstone in February the company was due to lodge an environmental-impact statement for The Pilliga project by June 30.

In return, the government agreed to make a decision on whether or not to approve the development on January 23, next year.

Santos NSW manager of environment and water Neale House confirmed the deadline to deliver an EIS had been missed but said a “timely assessment” of the project was still expected.

“Our commitment has always been to deliver a comprehensive and thorough assessment, and we will take the time to do that,’’ Mr House said.

Project opponents have called for a development decision to be delayed until after the NSW election in March. “The decision will now be so close to the next state election in March 2015 that it should be delayed until after the election has occurred,’’ Greens NSW mining spokesman Jeremy Buckingham said.

“This project is too big and controversial to be signed off by a government in caretaker mode.”

Wilderness Society Newcastle campaign manager Naomi Hogan said the timeline had been politically motivated.

“The delay at the first hurdle show the agreement timetable was completely unrealistic,” she said.

The Narrabri gas project has split the local community with deep concerns among local farmers about the potential impact on underground water supplies.

Mr House said Santos was continuing to analyse the environmental data as part of the EIS.

“As a result we did not submit our EIS by the 30th June, as was outlined in the MOU signed with the NSW government earlier this year,’’ he said. “Upon lodgement of the EIS, the MOU delivers certainty of process and a co-ordinated approach across the Department of Planning and Environment and all other relevant departments and agencies,’’ Mr House said. “It does not fast-track approvals, but includes a commitment to a timely assessment which still stands,’’ he said.