Arrow Energy hit with $1 million fine for illegal gas wells

Farmers said the fine was a drop in the ocean for the multi-billion company and that they are yet to see a single dollar of compensation from the 48 illegal gas wells.

FARMERS are furious at the $1 million fine issued to Arrow Energy after it was caught drilling deviated gas wells under their properties without consent, saying the penalty was weak.

Western Downs producer Zena Ronnfeldt has been a vocal critic of Arrow Energy and is one of 13 farmers affected by the wells.

She claimed farmers won’t see any of that money and that Arrow could carry on its operation after it pays the fine to the state government, which is a “pathetic amount” to an organisation whose parent company Shell posted a $19 billion profit in 2021.

“It is a pathetic amount of money for the amount of illegal wells Arrow Energy drilled,” she said.

The issue arises from Arrow gaining access for wells on one property but drilling underneath neighbouring farms to access gas seams.

“We searched the environmental plans and found Arrow lied to the state government by saying the wells were vertical,” Ms Ronnfeldt said.

“We complained to the government and that is the only reason why it took action and now we have to live with this development.”

Ms Ronnfeldt claims the wells led to subsistence on her farm, but if she wants compensation for the damage she would have to take Arrow Energy to court at her own expense.

“The government has made this announcement that its investigation into land access was finalised but it has not required the company to do anything other than pay the fine,” she said.

The fine relates to 48 illegal deviated wells drilled as part of the $10 billion Surat Gas Project on farmland near Dalby, Millmerran, Cecil Plains and Wandoan.

An Arrow Energy spokesman declined to comment on individual landholder negotiations or agreements but said the company was engaging with affected farmers.

“Arrow Energy accepts the Department of Resources’ decision and penalty,” he said.

“We recognise we made mistakes in the earlier implementation of the deviated wells model. We remain deeply committed to improving the way we engage with all landholders.”

Despite the admission from Arrow Energy, the affected landholders remained committed to further actions.

Ms Ronnfeldt said a second investigation was under way to determine how Arrow was able to drill the wells without planning approval.