Palmer group in strife over drilling

CLIVE Palmer's company Waratah Coal has been flouting environmental regulations and risks prosecution.

POLITICAL aspirant Clive Palmer's company Waratah Coal has been flouting environmental regulations and risks prosecution for drilling almost 300 exploration holes on private cattle properties and failing to rehabilitate them over several years.

Land owners around Alpha, in central Queensland, are irate that the exploration holes, with an average depth of 118m and a maximum depth of 240m, have been abandoned since the collapse of the Gold Coast tycoon's bid to have his company, ResourceHouse, floated on the Hong Kong Stock Exchange.

Many of the Waratah exploration holes intersect aquifers and could have led to groundwater intermingling with different zones near the Great Artesian Basin, according to a geologist formerly employed by the company, a fully owned subsidiary of Mr Palmer's Mineralogy.

Disclosure of the environmental hazard comes after a controversial preference deal between the Palmer United Party and the Greens, resulting in Greens leader Christine Milne being forced to defend her decision to favour a coal and resources entrepreneur.

The head of the Queensland Environment Department, Reuben Carlos, told The Australian that an investigation had confirmed "Waratah was not fulfilling their obligations under the general environmental duty requirements of the Environmental Protection Act".

As the holder of an environmental authority, Waratah was required to decommission all non-artesian drill holes as soon as practical but no later than six months after the holes were drilled. Official records show that 280 holes were drilled in the three years, but that since 2009 they had not been rehabilitated.

Mr Carlos said most of the holes were "deep enough to have intersected groundwater aquifers". He said data from drill logs showed that aquifers of the Great Artesian Basin, however, were not intersected by the bores.

Mr Carlos said the department had powers to launch protection orders, infringement notices or prosecutions. He cited environmental regulations requiring Waratah to ensure that exploration holes are capped with steel casing and backfilled.

The former Waratah geologist said: "Should a water hole driller or land owner leave even a single bore abandoned and not decommissioned . . . he would be fined many thousands . . . The department is committed to ensuring that rehabilitation of drill holes is undertaken by Waratah."

Mr Palmer is trying to raise funds to develop the coal reserves in the area known as the Galilee Basin, but Chinese funders have declined to invest in the China First project. Earlier this month, the Queensland government approved a future Waratah Coal mine project. Mr Palmer has described the site as a former grazing property degraded by cattle, but environmentalists point to a Bimblebox nature refuge in which the endangered black-throated finch is found.

In June last year, the Campbell Newman-led Liberal National Party government dealt a blow to Mr Palmer's plans by announcing a rail policy that favoured established miner Gina Rinehart.

Mr Palmer declined to answer written questions yesterday, replying by text: "Know nothing about it just a (Rupert) Murdoch (Campbell) Newman stunt."