SBN 24 June 2010 by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 24 JUNE 2010

48 pages $1.00 inc GST

Xstrataâ&#x20AC;&#x2122;s decision to suspend its $6 billion thermal coal project in Wandoan has left the township reeling. Many local residents are now asking the question: which way forward?

a t a r t Xs

S T I EWXandoan BUY : SELL : TRADE : LEASE FURNITURE & ELECTRICAL

Daley Furniture Traders

Servicing SURAT BASIN

E daleytraders@gotalk.net.au

P:4662 4211 M:0418 872 381 F:4662 2591 ABN:81 005 506 309

RENTALS SALES

Dalby FIRST NATIONAL R E A L E S TAT E

www.dalbyfn.com.au rentals@dalbyfn.com.au sales@dalbyfn.com.au Ph: 07 4662 2833 76 Drayton St, Dalby

inside this edition

SBNEWS

down tobusiness

in theNews

The Team

David Richardson General Manager Teneale Luckraft Editor Laurell Ison Advertising Beth Walker Graphic Design

pages 3 -14

pages 15-18

in the News takes a closer look at Xstrata Coal, the Wandoan township and the Resource "The RSPT (Resource Super Profits Tax) has createdSuper Tax as well as the new significant uncertainty for the future of mining investment commitments Arrow Energy has promised its stakeholders. into Australia and would impair the value of previously approved projects and exploration to the point that Kogan Creek’s solar power project and the establishment continued investment can new no longer be justified," Xstrata Plc chief executive Mick Davis said after Xstrata of QGCearlier community committees also features in this edition. announced this month suspending $586

The Newspaper

UGC company Linc Energy announces its oxygen injection process success while plans to built the regions ‘missing link’ railway line have stalled.The Santos/PETRONAS Gladstone Liquefied Natural Gas (GLNG) project also receives conditional approval last month.

million of expenditure.

The Surat Basin News will initially publish quarterly and will be delivered via the three dominant newspapers of the region: the Chinchilla News, Western Star and Dalby Herald. It will reach the homes and offices of almost 12,000 living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region. Plans are to make the newspaper more frequent once support has been established.

building theBasin

Placesandfaces

pages 19-24 pages 36-43

The Vision

Roma based firm Fyfe Hedges is growing with the CSG industry, new accommodation facilities are proposed for Wandoan and Wallumbilla. Surat Basin Homes encourages investors to ‘get in quick’, while Chinchilla Crane Hire proves a small local business can work with the big companies.

Surat Basin News is not a necessity. It was born out of a passion for Australia's fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and opportunities.The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin. Surat Basin News will allow local businesses to network and communicate with everyone in the 300 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region's future while profiling the colourful characters that define our communities.

Origin Energy opens two new offices, the Western Downs Regional Council and Maranoa Regional Council talk community and infrastructure upgrades, while Surat Basin Corporation makes massive restructuring changes in a bid to keep up with the fast paced energy sector.

adverters index A1 Group Training ..........................................21 AJ'S Total Truck Gear ......................................16 Avis ....................................................................18 Boobook............................................................18 Border T Border Bioseptic West Pty Ltd ..16 Brandon & Associates ....................................39 Budden Contractors ....................................18 Chell Engineering ............................................26 Chinchilla Crane Hire ......................................4 Chinchilla First National Real Estate ..........47 Chinchilla Storage Sheds................................34 Country Petroleum ........................................48 Dalby First National Real Estate ....................1 Dalby Real Estate & Rentals ........................41 Daley Furniture Traders ..................................1 Dimidium Group ............................................34 Downlands College ......................................37 Downs Group Training ..................................13 Downs Media Group......................................24 Easternwell Group ............................................6 Enerflex..............................................................40 F K Gardner & Sons Pty Ltd ........................38 Fleming's Welding Service..............................39 Goldskills Consulting......................................34 GW Training Plus Pty Ltd ..............................10

View Online With the Surat Basin region receiving national attention, Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them. View our March 25 addition at www.issuu.com/suratbasinnews

HB Recruitment ................................................7 Hyder Consulting ............................................14 IOR Petroleum ................................................43 Ison & Hyland ..................................................29 J J Richards & Sons Pty Ltd ..........................29 Johnson Drilling................................................43 Karen Brook Studios ......................................40 Laing O'Rourke ................................................25 Looking For Work ................................44 & 45 Loughlin Crane Hire ......................................20 M I Helicopters ..............................................35 M&P Services (Qld) Pty Ltd..........................35 Maguire Coaches And Travel ..........................8 Multifix ..............................................................27 Murilla Community Centre Inc....................47 Neil Mansell Transport P/L............................33 Origin Energy ..................................................28 Ostwald Bros. ..................................................26 Ray White Rural Chinchilla ..........................33 Ray White Rural Roma ..................................22 RJ & TG Grease Traps & Septic Tank Cleaning ....................................................8 RJ & TG Traps & Septic Tank Cleaning Hydro Excavation ............................................39 Rob Davidson Water Carting ......................10

Robbie Taylor & Sons Roma..........................10 Roma Communications..................................33 Search 4 Jobs ....................................................46 SignaSaurus........................................................16 South West Qld Soils......................................27 Speciality Services Qld ..................................38 Supply Connections Pty Ltd ........................41 Surat Basin Developments ............................17 Surat Basin Homes..........................................11 Surat Basin Real Estate ....................................8 Sweetapple Company ....................................30 TAFE Queensland............................................42 Taylor Safety Equipment ..................................5 Toowoomba Plastics ......................................42 Toowoomba Regional Council ....................38 Trades & Services..................................44 & 45 Walker Corporation ......................................23 Waminda Services Ltd....................................10 Waroo Water Services ..................................18 WDS ..................................................................37 Westbrook Trailers............................................5 Western Auger Drilling..................................40 Wild Desert........................................................9 Work Wanted ..................................................45

Next editions - June 24, September 23, December 16, 2010

Surat Basin NEWS

Print run 12,000 Inserted into the Western Star, Dalby Herald and Chinchilla News and Murilla Advertiser

The POWERFUL LEADER in the Surat Basin Surat Basin Surat Basin Surat Basin S S W in s W E in a s E N a B N B t NEWS N S a t NnEd Wt SBasinNEWS urat BasinN Out of re SuErWS Sura a S c h W in a s E a ESWurSat B N un Green ura rom News heats up der pressureS COUN light for ace north far f ORIZONS GREEN H ds plant grin -ethanol 21 grain-to - Page Dalby a’s first Australi action outside into

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NOVATION ROUTS IN SANTOS SP The CSG

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Local gling to authorities are deal with strugcamps that worke are setting rs of reach up out of planni

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Farmer editorial @suratbasin.com .au

for econom ic develo Andrew pment, Smith, was divide said d on how council camps should the into commu be integr ated nities. “It’s a very touchy subject

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Origin’s rec ord deal cen resources tred on the of the Surat Basin

he Surat Basin was a gas power confirm this month of global propor ed as tions with merger between the $9.6 billion and US Origin Energy oil and ConocoPhillip gas giant The biggess. BY John Farmer history sees Queensland t purchase editorial of a ConocoPhillip commercial Origin Energy asset @suratbasin. ’s substa s take a half share in based at com.au ntial LNG Gladst project to in That could one. be be operat rivalling ing in Westerthe massive Northby as early as n Queen West Shelf 2014, Energy sland. At the heart project inquiri ’s announcemen of the deal expansive t dealing es from with All Glasso investors and Work is a fact not Surat Basin coal is Origin Energy homeb a flood of ploughing n Villa missed by seam gas ’s contract site ahead Chinchilla investors. reserves, in a matter townhouses uyers. ahead moving to at Carbo went under Development Econom Dave Wicksof a demonstrat make moreof days and the n Energ Association ic and compa Mr Daniel compared y’s Blood ion housing — dmwc Tourism arrive ls available. ny is wood Creek reative). start-up next follow the the accelerationpresident Greg with the agreed the surge month. West record he ferocity was about believed (Photo “We’ve had mi”. manse purcha of by would Creek to Chap to our first a tsunami. Frankseen “We’ve but this ride back Surat that of a “tsuna- going on the Creek and the wave to stop,” one’s like a tsunamwith Kogan arrives the impact he said. created i that’s “This has on a Basin. a big constru by Kogan not 16 market, time there’s not land,” he town in terms Page there’s just of rentals ction project said. Chinchilla umpteenth of one driver in the , housin “Now we g and the them.” First need al billion to realise recent announ National’s Bruce Booth surge in towards dollar projects that there are severinvestm cement had said While betterent inquiries. created a new struction financial close on the table headin in mid-20 from 2010. g Chinch positioned 09 and “What illa was con- Mr Booth to react when Kogan in significwe’ve witnessed than believe before ance to A small “When Kogan s more can Creek commenced, construction.” the impact is going to pale patch of be done. Kogan coal s the Creek of just south town by is set Kogan Creek Surat really of er, fuel for major to be transformed “I think surprise,” he said. took off it took Daniells Basin Development methanol into spent the industry. or liquid don’t know while we’re better Carbon two weekss director Warren And it’s fuel plants. how well prepar following “We ground coalEnergy will use Carbon’s not the only feathe Origin don’t could end in prepared we are. ed, I just its underbow. gasification r to another keep on teamed The compa proces predicament the front with ny owns foot.” ments with commercial agree- s if we Basin coal several Surat giants to some manufacturin spread its tenements and develop plans wings as world-scale g es. time progre to — www fertilisss.sura tbasi Turn to n.com .au page 20 for the full — story.

MEET MR BG

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hinchilla Newspapers today leading ground breaks new with as a worldced position r enhan Surat Basinof a regional the release first — ladstone’s has been furthelight for the News. the The newsp coal port month’s green Island Coal aper and website associated with this new Wiggins said while ple and captures the project BY John communities massive s, peor Paul Lucas Farmer Basin energy editorial the Acting Premie province. of the Surat per will @suratbasin.com Terminal, state’s port city. has approved conThe the .au 12,000, reach the homes newspaeneral subject to Coal visiting nator-G exposin of almost prosperity ent, economic g the culture statem “The Coordi Island as the Surat said. climate al impact Wiggins fastest develo inc Energy Basin,” of Austra and E environmentthe $3.5 billion he “While lia’s fourth weekhas entered the , for Central General ping region. FERENC the ditions before the there is still a CON said. commi in Energy of ent, he manager it Richardson a 10-wee ssioning THE region really way to go n k Chinch are taking Terminal,”project’s propon plans to build phase of to liquids David wanted to be on the way said with the ity, here at the regio billion to there so takes off, we in Chinch demonstration its gas in the illa will soon reverbe “The havePort Authorvalued at $1.3 Making next major to becoming Basin well the leadership when it ial to facility energy market Queen illa. e rate sland achieve Austra potent does and alread first, energy here,” world. the co-ordination The commi The inabl lia’s need for y in place.” . the Over hassaid. s of the stages It he susta to a third, ssioning regional hub, therets.” coming 2012. isation of is The Surat three Energy was a the “As and leaders s by up and weeks, bilted bywill projec media export will host Basin News coveray Farmer an ongoin the GTL plant final- begin to more and more hip.p those coal also up to $1.8 be comple drillingone’s teLinc ge lish quarterly Chinchilla expand develo “We will be BY John g process will pubrealise that people Gladst genera progra,m Basin Railwa ty tocan months and Surat Basin of for its next no has ral for Surat capaci boost longer its one at the shire Linc six the about but will and lly. the Chinch tonnes ce but weeks. editorial inaugu potential Energy bounda .au all confine the high ence on 2012, h be illa teneme grow more next six gs annuaaroundy enhan By ries,” he into based on suppor to produc or 25 million It will to unite throug quality diesel @suratbasin.com drillearnin frequent said. “Wed d by e very inthree Energy Confer The rigs workin withnumber one export t. willnts,greatl thelsregion weave its parallel include comple The long to be merge need will cohesio March lion Innsadditio Island tion in from coal at a low and jet fuel gget with numer the our term ambiti fromdevelo counci n betwee iland site. ial markets. August 21-23. become a six and to n, a one cost expans “Wiggi low Counc the cabling ous the n on years, a the point al p “The provide CO2 ability weekly piping continual ion and commu runs. of Gladst Surat BasinPort Region same publica is for it to aim is to sland’s to 33 potent designed tial of such footprint, the withQueen nities. improv Linc Energy next four site are pubDalby e update seas UCG field to the News ement the is poten- the across infrastruc- But vein as the Chinchtion in the a compan of and ver the $10 billion of al hasofbeen effecti Peter Bond chief executi it offers The link comprehensiv up with Mr Richar webthat.” ve termin pieces 15. Surat ment is ways g. tonnes a year. tageongoin will become y and whatexportLinc Energy Mr ve all.” more than would stand dson saidilla News. upofthe of three missioning said the start e invest Richar three-s already uing million newsp while cominga is oneapers, obvious “The to 84 been dson said doing of to open into the the two tohas contin- have we can add up to lic and privat to team with to milestone marked a significcom“We realisealone. like any companies to pour its new The more ty ture needed Surat powerplays solutions coalimpres to cope of person business, likely and 20 sive capaci expected future. the companfor shareholders ant essenti commissioning nel withany extra of the mines an importthe Chinchilla region are the be launch Basin program push “More on than of coal t in a serious sustainable is in s with dto and each ally runs in y’s team. the acquisi News resour ces ed within ed in muniti “The GTL engine al A myriapopula a health what es of the ant role in the stages with sed interes that tion of more unit of the tion growth 150 million Regionthat expres ytseconom Find out comare expect Western ers and believes sioning ofbeginning of commi GTL tion ing up to of Wiggins Dalby and won’t change coal gasifica Surat y. the e. Downs and pages four Basin. er Anna Bligh projec He believe exportted because Basin beassocia years. Ms s- sequenplant commi demonstra- provid tionwill store on liquids Australia’s first fits of aries profess tone the ssioned Premi “We at Linc next fives thecouncil“But with the ,” he said. three stages “Few plant and ce. better spent amalgacoal bound ionals. thebill. areas in to do“Glads Surat Basin world’s money we wanted when all forced and five. il over in Austra g the new of — indeed to Linc experie yearEnergy the were first in aavery will be have a lot nt, the Counc ment’s that nce said lia are set ststo ferent tone. to strike a slightlNews tonnes gasification underground the Johnso Energy chairman E such creatin short te.” but indust announceme ng has an the intere over are comple timethe of her govern Bligh We wanted ry, new frame y difFERENC matio ns nced last year. al in influx past 18 something to diesel facilitycoal facility n said the demon Brian have Island the of major onthe region with e and Planniprocess month built aated stration team pments,” would bepeople annou andy.econom THE CON ructur is cation was a credit are going al events and more focus s we Associ proud of,” we can all be plate very said region Infrast lian economcontem idable of good issues their develo to She ic investigation he said. would shape form very involve of capabi to the dedi- springboard Moura Austra al base eing tment for contem you generations from,” nment to the Surat that — the Depar “These lity of to here and oppord. “When Rail link’s govern ment capacity cils overse those said. steps we Basin, the enviroMr rail upgrade Bond to come.” ort coal that are grab the for those started “One “This at Linc million to transp have more r infra- she said. cils that can e sector, coun- resources A Brisba deman d of having a $500 period acoming impressed cannot to be for Project — Terminal. “Coun ct with plate the but privat to delive Rail is a very and h tion to the ne woman’s the prospe by going acting ment’s be Coal ldoga l excitin in enoug what our the contrib Linc Energy Govern g time counci interLink-A s Island struct ure needed to tunities lion coal success of a $110 uteam holders for the are strong in place the resources, Wiggin regional team of the Bligh ry which conseam gas and ritspart the miland cils thatgrunt to put be necessary strong, large in the long termhere, of .” new strategies y been shareindust is ithally recognised project has t mining ts. live “It is anothe for the coal drough Basin Railwa enough that will s develop. that Queensland suppor the re ils. region proof t plan Surat condiprojec people the y and power my view infrastructu opportunitie strategic the going eststions of the worsen local counc sperson from (QRC) annuaResources in key mining one to s aren’t ing she said. sland econom “It’s Link) andProject,” Mr Lucas of for Women l Resour Council’s carbon nects Gladst sec- to see these Queen signifi- theand y,” A spoke t opportunitiet someQueen Missing ces Award tradeconom ing . that thoselikely “These and (Southern the Wandoan Coal Depa rtmen and s d withou sland Gas lianimmin P.5 Shalene y now the ued on ent, major roads annou do Austra tors are even to be realise McClure Gladstone, Compa ture Contin posals like leader Basin Railwa ment in councils can’t nced it plans ny for the who ies. 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BY Johnsuratbasin.com.au predict the pages (WRA 26 ed 27, aims to Plan centra a term that this was her best to coun- that on and more premier was in ernment use only if itpresented , which P), jobs ny plans QGC-owned option. not a long- Roma coal which stronger gas-fired jobs, by On moves. editorial@ the electricity age more to work encourmeans the Ministtheirwas Child Safety of Port Alma of coal. gas month land, 8km electricity to deliver She began beneficial “econ omica lly she leads seam gas project in making er for Miles. genera women last National expansion nies Women QRC’s compaand “Just oal seam and its implem her career Curren the resour east of where nal 30 million to the eastern seaboa tion across logical ces sector. study into ically The success February Electricity Marke entation. will become Mr Cottee was as a geoncing a export an additio per cent tly women Women’s annual Intern at the Explor ATdrafter “Recently, rd,” he said. the of water. comp anies State and ecolog its preside of this of QRCannoumake would compri said the managing 2009, accord t by Hydro up 11 written you've You it could SURation, and afterwith MIM instrumental in the ed on P.3 force project viable crowd of Day breakfast ationa l rocks membe nt. 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in theNews page 5 page 6 page 7 page 9

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Super Profits Tax creating uncertainty for future of mining investment "The RSPT (Resource Super Profits Tax) has created significant uncertainty for the future of mining investment into Australia and would impair the value of previously approved projects and exploration to the point that continued investment can no longer be justified," Xstrata Plc chief executive Mick Davis said after Xstrata announced earlier this month suspending $586 million of expenditure.

THE SUSPENSION INCLUDED THE DEVELOPMENT OF THE $6 BILLION WA N D O A N T H E R M A L C O A L P RO J E C T A S W E L L A S A $ 6 0 0 M I L L I O N P R O J E C T T O E X T E N D T H E L I F E O F T H E E R N E S T H E N RY C O P P E R M I N E . "Our Australian management teams' analysis demonstrates that the RSPT would significantly impact the value and cash flows of both of these projects," Mr Davis said. "The impact of the tax eliminates the net present value of the Wandoan coal project almost entirely and substantially reduces the value of the Ernest Henry underground shaft project. The two projects involve significant risks and total capital investment of over $6.4 billion.

"Neither will be viable if the RSPT is imposed." Associated infrastructure and exploration initiatives from the Wandoan Coal project could have provided more than 3000 jobs. Xstrata Coal has also spent $200million during the past three years on feasibility studies. Due to the immediate suspension, works including drilling, workers accommodation construction, communications and road upgrades will not proceed at the scheduled start date of July this year.

Mr Davis said Xstrata would continue to consult with the Federal Government to discuss industry's key concerns with the RSPT. "In the meantime, we have an obligation to make business decisions in response to changing circumstances and we continue to develop business opportunities and develop growth projects in countries which promote competitive and predictable fiscal regimes." Meanwhile, Federal Minister for Flynn Chris Trevor has said his

community was being used as a political football. "I find it disgusting that Xstrata would seek to play political games with the livelihoods of families in my community," he said. "The working men and women of my community deserve better than to be used by this multinational mining company in a game of high stakes poker. "I call on them to start genuinely participating in the consultation process the Government has set up to listen to concerns."

Surat Basin NEWS Thursday 24 June 2010

Associated infrastructure and exploration initiatives from the Wandoan Coal project could have provided more than 3000 jobs. PAGE 3

in the news Xstrata to honour agreements with the local landholders

Wandoan thrown into turmoil BY Geoff Egan

editorial@suratbasin.com.au

the

public meeting

Xstrata Coal will continue to purchase affected properties across the Wandoan region despite the recent suspension of the Wandoan Coal project. Wandoan coal project executive general manager Steve Bridger said the company would honour its existing commitments and continue to extend offers to landholders who have not yet received them. "In progressing towards a mining lease we have an obligation to reach an agreement with landholders," he said. "It’s part of consulting and working with the community." Mr Bridger made the comments during a public meeting in Wandoan earlier this month, with residents of Wandoan, Taroom and Miles attending. Mr Bridger said he believed that the suspension of the project would also mean the end of the Surat Basin line of the inland railway. "Other smaller mines in the region will face similar problems as we are. "If the Wandoan project doesn’t proceed then the Surat Basin rail will also be in serious doubt."

Despite Xstrata’s concerns many residents of the affected communities were unimpressed with the company’s ongoing policy. Wandoan landowner Richard Golden said that he was concerned for the community going forward if Xstrata continued to purchase land. "I’m very concerned that this was meant to be a coal project, but if it now becomes an acquisition project I’m concerned Xstrata will become the major landowner in the area," he said. "I’m concerned with the ongoing future of the Wandoan community." Mr Bridger maintained that Xstrata does not intend on becoming an absentee landlord, he admitted that the company has no plans for the future of the tracts of land they will hold around Wandoan if the project becomes fully unviable. "We haven’t come to any decision on that yet. "Xstrata holds sustainability principles in very high regard though." Banana Shire Council mayor John Hooper said he was disappointed by Xstrata’s

suspension. "I’m disappointed that this will keep further investment away from Taroom," he said. "The area needs this kind of investment. "Does it (the RSPT) have to be taken off the table completely to make this viable?" Western Downs Regional Council mayor Ray Brown said that despite the suspension he was confident that development in the area would continue. "Stanwell, who are in cooperation with GE behind the Wandoan Power Project, haven’t changed their plans at all," he said. "We’re are they getting the coal from? "The coals not going away, that asset will remain until someone accesses it, be it Xstrata or somebody else." Western Downs Regional councillor Andrew Smith said that he was sympathetic to the affected community going forwards. "As a community now you are back in limbo and that is probably the worst position to be in," he said.

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in the news Th e Fe de ra l G ov er nm en t's an no un ce m en t in ea rl y M ay re ga rd in g its pr op os ed ne w su pe r ta x fo r th e A us tr al ia n re so ur ce s se ct or ha s pu t th e co un tr y on no tic e. So what is the super tax and what does it mean? - put simply, it could create a statutory tax rate of up to 57 per cent on Australian resource pr ofits. Issues associated with ca lculating the super tax include royaltie s, capital allowance, company tax and expenditures. Uncertainty remains du e to a number of factors and there are several issues that need consultation. These include: • Taxing point • Assessable revenue • Market prices • Potential cap on royalty • Credit • Capital expenditure

super tax What’s being said ... FEDERAL GOVERNMENT "Mining doesn't pay its fair share." MINERALS COUNCIL OF AUSTRALIA "Mining paid $80 billion in tax over the last decade. Mining pays a higher effective tax rate than any other industry. Mining paid eight times more tax last year than a decade ago." XSTRATA PLC

Queensland Resources Council CEO Michael Roche said an analysis of the Federal Government's Budget figures, the resource super tax would short-change Queensland by up to $2.5 billion - this is in the first two years alone. "Based on current forecasts, Queensland resource companies would pay an additional $4.5 billion to the Federal Government in the two years following introduction of the super tax in 2012-13," he said. "Over the same two years, Federal Budget tax concessions and outlays to be funded by the super tax are set to return only $2 billion out of the $4.5 billion to Queensland taxpayers. "What will make this tax a rip-off more galling for Queenslanders is the fact that under the Australian Constitution, Queensland's mineral wealth belongs to Queensland. "This is why minerals and energy royalties have always been paid to State Governments, not the Commonwealth. "Last financial year resource companies in Queensland paid $3.4 billion to the Federal Government, with at least $2.5 billion earmarked to stay in the Federal Treasury coffers or allocated to other states and territories at Queensland's expense." 207 McDougall St Toowoomba P 1800 330 466 F 4633 0470 allan@taylorsafety.com.au

"Mining companies are not scaremongering, nor are the points being made about the potential impacts of the proposed taxation 'extreme'. Fair partnerships between investors in mining and the government have successfully built Australia's mining industry over several decades to become one of the country's most successful contributors to economic growth, including during the recent global financial crisis," Mick Davis, Chief Executive Officer. THE AUSTRALIAN WORKERS' UNION "Mine unions will not stand by and allow Big Mining to run a scare campaign which hurts the job prospects of our memberships," National Secretary Paul Howes. AUSTRALIAN COUNCIL OF TRADE UNIONS "Australia needs a robust tax system with fair and efficient taxation of mining super profits ... if we baulk at necessary reforms now and muddle though with the present system, future Australian Governments will not be able to raise the revenue to meet the community's needs without shifting more of the burden onto ordinary wage earners and harming the economy. The strong demand for our resource exports has sent resource prices soaring and delivered windfall profit gains to the big mining companies. There is both need and capacity to raise more tax revenue from this boom, and to use it to build a stronger, more sustainable economy and a fairer Australian society. Fair and efficient taxation of Australia's natural

resources is critical if all Australians are to obtain lasting benefits from the nation's mineral wealth." QUEENSLAND PREMIER ANNA BLIGH "This is an embryonic industry and I believe they need different arrangements than those companies that might have been well established for 30, 40 or 50 years.This industry is right at the point of having to make the financial decisions.They need certainty about the taxation arrangements they'll face, particularly in the first couple of decades. I'll certainly be taking the concerns of the mining sector directly to the federal treasurer and the prime minister. I'm going to take every opportunity during this time, before they lock into a final decision, to make sure they get it right." AUSTRALIAN PRIME MINISTER KEVIN RUDD "I think we've got weeks and probably months of consultation yet with the major mining companies.'' SANTOS ''The whole issue lacks clarity.We need clarity to make investment decisions and until [the tax situation] is clear we are going to see investment paralysed,'' chairman Peter Coates. AUSTRALIAN TREASURER WAYNE SWAN "The monies that flow from the resources super profits tax will go into the savings accounts of eight million workers. They will go to cutting taxation for $2.4 million small business and of course they will go to investment for infrastructure." CHAMBER OF COMMERCE & INDUSTRY QUEENSLAND "The economic fortunes of the resources sector and the Queensland business community from our State's resources sector is now under question," President David Goodwin.

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in the news Arrow admits mistakes were made ... Arrow Energy confronted regional residents earlier this month through a series of community consultation session during which it announced its new commitment plan for Surat Bain communities. The proposed Surat Basin Gas project has seen the coal seam gas company move from working on mainly pastoral and grazing land onto prime agricultural land. The entire project stretches north to Wandoan and south to Goondiwindi. The proposed development has caused major concerns for regional landholders with water management, property valuations, property access and community benefits all causing alarm. During the information session, Arrow announced its responses to these concerns and has put forward a series of commitments to landholders in a bid to develop a win-win situation for all involved.

“We have already improved our community and landholder engagement and we look forward to providing an open and honest dialogue about issues and opportunities with our stakeholders.”

PAGE 6

• •

•

• • • • • •

KEY COMMITMENTS INCLUDED: Improved community and landholder engagement An open and honest dialogue about issues and opportunities with stakeholders Adoption of a standard approach to compensation and land access No development in intensely farmed areas until concerns are properly addressed No construction of dams for coal seam water on intensively farmed areas Use of surface tanks not pits on black soil Development of a robust groundwater monitoring regime Prompt response to bore owners who report a reduced water supply Construction of 'fit for purpose' dams to government standards Remove produced salt from the landscape Benefits delivered to the community.

Arrow also announced work would not start on the proposed Surat Basin Gas project for another three years, with large scale drilling not expected to start until 2013. Government and Community Relations general manager Leisa Elder said it provided the company an opportunity to address concerns properly.

Surat Basin NEWS Thursday 24 June 2010

"This gives us plenty of time to get this right," she said. "We have already improved our community and landholder engagement and we look forward to providing an open and honest dialogue about issues and opportunities with our stakeholders." Within the next three years,Arrow is looking to continue its exploration throughout the area with the development of around 50 new wells built within the existing domestic production area. Meanwhile, Arrow Energy's agreement to supply gas to Fisherman's Landing LNG project is currently on hold with the Shell/PetroChina takeover bid still pending. Chief Operating officer Robbert de Weijer said the project was originally planned to supply gas to the Fisherman's Landing LNG project at Gladstone, Shell Australia LNG project on Curtis Island and other market opportunities as they arose. "What would happen under a Shell/PetroChina takeover is the project would supply the domestic market and a much larger Arrow Energy LNG project on Curtis Island," he said. Last week,Arrow remained in active discussions with Shell and its Chinese partner with analysts saying its $3.3 billion bid was too low. It is unclear when a decision on the takeover will be made. Arrow Energy is expected to return to the Surat Basin region in November with more details on the developments in the two target areas.

in the news

Kogan leads way for solar power

An aerial impression of where the solar boost project will be constructed at Kogan Creek Power Station.

Kogan Creek Power Station is set to be home to one of the largest solar projects in the world. Last month, the CS Energy power station announced it would receive $32 million from the Federal Governmentâ&#x20AC;&#x2122;s Renewable Energy Demonstration Fund to put towards its Kogan Creek Solar Boost project.

electricity with the same amount of coal.

The project will augment the conventional feedwater process at Kogan Creek, which currently uses steam from the turbine to preheat water entering the boiler.

â&#x20AC;&#x153;It will provide enough electricity to power an additional 5000 homes and improve Kogan Creekâ&#x20AC;&#x2122;s fuel efficiency and greenhouse intensity.â&#x20AC;?

The solar technology will be used to help preheat the stations feedwater, freeing up more turbine steam for the electricity generation process. It will increase the power stations capacity by 44 megawatts at peak solar conditions and improve plant efficiency. CS Energy Chief executive David Brown said simply, the solar boost will enable Kogan Creek to produce more

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International solar energy provider AREVA will install the solar thermal addition. Following the finalisation of front end engineering and design, construction at Kogan Creek is scheduled for the second half of this year. Full operation is expected by mid 2012.

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PAGE 7

in the news

Water treatment plants reduce salt levels

“ONE WELL CAN EXTRACT UP TO 500,000 LITRES OF WATER A DAY,”

T WO T R E AT M E N T P L A N T S C A PA B L E O F P RO C E S S I N G A TOTA L O F N E A R LY F I V E MEGALITRES OF SALINE WASTEWATER A DAY ARE BEING DEVELOPED IN QUEENSLAND. THIS IS TO DEAL WITH ONE OF THE MAJOR BY-PRODUCTS OF AUSTRALIA’S EMERGING C OAL SEAM GAS (CSG) INDUSTRY - WATER. The treatment plants are being designed and engineered by national engineering and surveying firm Fyfe, under contract from Queensland company,The Pump House. They will be used in the rapidly developing Fairview and Roma CSG fields near Roma. Fyfe’s Oil and Gas Engineering manager Bruce Dickson said the process of extracting coal seam gas involves removing water from underground coal reserves to free up methane. The gas and water is then brought to the surface by wells. “One well can extract up to 500,000 litres of water a day,” he said.

“In the combined fields for CSG production in Queensland, there could be between 4000 and 8000 wells when the industry is at maturity, so there is a lot of water to be extracted and managed.” Mr Dickson said The Pump House had access to a new process which enabled these salt levels to be reduced to around 3500 parts per million (ppm), at which stage the water could be used to irrigate salt tolerant plants or be used for stock watering. He said the process involved the management of sodium, iron and other minerals in the water and was much

cheaper than other treatment methods such as reverse osmosis or evaporative distillation. “Most of the water is salty and varies in quality from a few thousand ppm of salt to 36,000 ppm, which is just below the salinity level of the sea,” he said. “This variation will determine whether the new process alone, or in combination with more expensive methods is required.” Under the terms of the contract, Fyfe has until the end of this month to develop the plants to factory acceptance and testing stage.

Nathan Dam moving ahead Taroom's Nathan Dam appears to moving ahead despite the suspension of the Wandoan coal project, which was previously seen as a major user of the Dam's water. Banana Shire Council mayor John Hooper said that he believed that Xstrata's suspension of their Wandoan operations would have a negative affect on the progress of the dam. "We were hoping this (the Wandoan coal project) would be a small catalyst for

building the Nathan Dam," he said. "We hoped the (Wandoan coal) project would have a great affect on the economy of Taroom as well as the inland railway and kick starting the Nathan Dam." However, SunWater maintains that the dam is still going ahead as proposed despite Xstrata's decision. A SunWater spokesperson for the Nathan Dam project said that the dam is an important infrastructure decision

even without the Wandoan coal project. "The organisation view(s) the Nathan Dam Project as a long-term water supply opportunity and while (we) will monitor Xstrata's situation, at this stage it intends to continue to progress its engineering and environmental investigations," they said. The Dam's future had previously been on hold after it was believed the proposed dam site would endanger up to half of the remaining Boggomoss snail

population that lived in the area. However, additional habitats of the snail were discovered in 2009 by an unrelated project, allowing the endangered Dawson river snails to be translocated to the newly discovered areas. The dam would hold up to one million mega litres and is envisaged to service the mining, power, agricultural and urban centres in the Surat Basin and the Dawson-Callide area.

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Careflight on call - night and day Chinchilla and surrounding areas will now have access to a CareFlight Rescue Helicopter based in Toowoomba 24 hours a day, seven days a week.

"Having an aircraft available in Toowoomba 24/7 will mean quicker response times and greater efficiency in reaching patients," he said.

The State Government last week committed to $1.64 million a year to help CareFlight upgrade its part-time service to a round-theclock operation. The part-time service has previously operated on weekends, school holidays and public holidays, however with the new injection of government funding, plans are being made for the service to go 24/7 as quickly as possible. CareFlight Group Queensland CEO Ashley van de Velde said the funding would improve service delivery across the region. "CareFlight feels a great sense of pride that we are able to deliver this vital service to protect more families affected by accident and illness in the South West," he said. "We are committed to providing the best care possible to the community, and by expanding our

South West operation we will be able to do that. "Having an aircraft available in Toowoomba 24/7 will mean quicker response times and greater efficiency in reaching patients," he said. "This enhanced delivery of service will complement the services provided by the Queensland Ambulance Service and the local hospitals." The funding announced in the State budget will be provided in addition to the Government's existing financial contribution to CareFlight's 24/7 service based on the Gold Coast. Both services are supported by the Queensland Ambulance Service who provides paramedics to work on board all CareFlight helicopters. Chinchilla locals had a unique opportunity to see the RACQ CareFlight chopper up close last week, when it flew in as part of a series of community events in the South West. As part of RACQ CareFlight's South West Road Show, the iconic blue and yellow helicopter touched down at Chinchilla State School last week. CareFlight also visited the Chinchilla Hospital on to deliver CareFlight Bears for the children in the wards.

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PAGE 9

in the news

New standards for water handling A new policy was released by the State Government this month to tighten restrictions on the storage and handling of coal seam gas water. The policy will ensure that dams used to aggregate and store CSG water or brine are built to best practice environmental management standards. Companies who fail to comply with the new standards could face penalties in excess of $2 million.

Community committees help QGC keep in touch with local concerns QGC has established a network of community committees throughout the Queensland Curtis LNG (QCLNG) Project area to provide a forum for transparent, two-way dialogue between the gas company and local communities. Three committees were established in the Western Downs to represent the northern, central and southern gas fields regions An overarching gas fields committee (comprised of representatives from the three) will be convened in 2010. THE NORTHERN GAS FIELDS COMMUNITY Committee covers Wandoan, Miles, Grosmont, Guluguba,Gurulmundi, Glenaubyn, Bogandilla, Clifford, Kowgurna and Dalwagon, while the Central Gas Fields Community Committee covers Chinchilla, Condamine, Kogan, Columboola, Cameby, Drillham South, Mangram, Crossroads and Hopeland. THE SOUTHERN GAS FIELDS COMMUNITY Committee includes Tara, Dalby,Wieimbella, Beelbee, Daandine,Weranga, Goranba, Kumbarilla, Kuann, Halliford and Marmadua. PIPELINE REGIONAL COMMUNITY COMMITTEE: Cracow,Theodore,Thangool, Biloela, Eidsvold and Monto. QGC General Manager Social Performance Mitch Innes said each community committee consisted of up to 10 people from major interest sectors. Senior QGC field and project personnel will also attend the meetings. “QGC has sought representatives from local business and industry, environmental groups, community services, health, education and young people, women, landholders and indigenous people,” Mitch said. Murilla Community Centre manager Cecily Brockhurst is a community representative on the Northern Gas Field Community Committee. She said it was extremely important that local people had the opportunity to provide input into the

planning and developmental process. "QGC has taken the initiative to engage local people and it is extremely important that local people have the opportunity to provide input into the planning and developmental process," she said. "I am hopeful there will be a two-way flow of information as community representatives listen to the community and facilitate local information to QGC and then co-ordinate information about QGC's plans back through community groups and individuals.” Tara Futures’ Denis Sommerfeld, a member of the Southern Gas Fields Community Committee, said the committee structure would provide the community with access to first hand information about QGC’s operations. “The committees provide an opportunity to sit around the table and work together for good outcomes for the community and the gas fields,” he said. Chinchilla Community, Commerce and Industry and Central Gas Field Community Committee member Marion Loveday said she hoped the committees would provide open, honest and direct lines of communication between QGC and the community. “There are lots of positive things to be gained by the energy boom but we are aware there are negative issues to be overcome,” she said. “Through the committees, we can work to maximise the good points and minimise the bad.” QGC worked with staff from The University of Queensland’s Centre for Social Responsibility in Mining to develop the structure, membership and terms of reference for the committees. Six community committees in total will be established across the QCLNG Project area.An overarching gas fields committee (comprised of representatives of the northern, central and southern gas fields committees) will be convened in the next few months.

Under the new policy: • Existing evaporation dams be modified so their primary use is for aggregation or water for treatment and beneficial use, rather than evaporation. • Aggregation dams will have to be fully lined and have leak detection systems to facilitate repair. • Brine dams (for CSG waste water treatment) will have even stricter standards requiring double layered linings and leak detection systems.

Acting Climate Change and Sustainability minister Annastacia Palaszczuk said government wanted to see the CSG industry use this water, first and foremost, for the benefit of the wider community. “Preferred uses of treated coal seam gas water under the policy will include aquaculture, coal washing and other industrial uses, irrigation and livestock watering and dust suppression,” she said. “The policy includes a hierarchy of acceptable solutions for the management, treatment and disposal of brine and solid salt residue resulting from the treatment of coal seam gas water. “The highest and most desirable level in the hierarchy would see brine and solid salt residues chemically processed or treated to create useable products, such as soda ash, that can then be used in other industrial processes. Ms Palaszczuk said the least desirable outcome and the lowest level in the hierarchy was for the brine or solid salt residues to be disposed of to an existing or purpose built regulated waste disposal facility. “We have set these high standards based on international best practice for storing and handling CSG water. “The coal seam gas industry has the potential to create thousands of new jobs for Queenslanders. “However, as a responsible environmental regulator, we will ensure the industry does the right thing to protect the environment.” “There must be sensible, environmentally sustainable water storage, treatment and handling in the CSG industry.”

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briefs new pipeline Australiaâ&#x20AC;&#x2122;s largest natural gas infrastructure business, APA Group has acquired the Berwyndale-to-Wallumbilla Pipeline from AGL Energy. The $82.6 million project is a 112km, 16inch pipeline that extends from the coalseam gas fields in the Surat Basin to the Wallumbilla hub. It connects three major pipelines including APAâ&#x20AC;&#x2122;s Roma to Brisbane pipeline. APA managing director Mick McCormack said the acquisition allowed APA to join their existing assets to one of the most promising coal-seam gas regions in the country.

population The State Governmentâ&#x20AC;&#x2122;s capital works program will have a renewed focus on managing population growth. Premier Anna Bligh said the Queensland Infrastructure Plan will be a long term planning document for the entire State. â&#x20AC;&#x153;For the first time we will have a State-wide plan that will anticipate infrastructure needs in growing regions as we deliver on regionalisation to help take the pressure off the south-east corner,â&#x20AC;? she said. Key features will include: â&#x20AC;˘ A blueprint of road, public transport, health and education infrastructure needs. â&#x20AC;˘ A pipeline of targets with credibility to attract Federal funding. â&#x20AC;˘ Robust prioritisation, sequencing and maturity assessment of projects. â&#x20AC;˘ A plan that incorporates significant economic development activities and associated infrastructure. The QIP is expected to be delivered next year.

The State Government has announced a $115 million solar package investment in its 2010/11 Budget this year. This includes $35.4 million for CS â&#x20AC;&#x2DC;s Energy's Carbon Reduction Program and a $55.8 million resource industry package over the next four years. Natural Resources, Mines and Energy minister Stephen Robertson said the package included a range of initiatives to stimulate further exploration, ongoing growth and jobs in the Stateâ&#x20AC;&#x2122;s mining and energy resource industries. â&#x20AC;˘ $18 million for Greenfields 2020 program to target under-explored geological terrain â&#x20AC;˘ $12.5 million allocated to streamline government approval and regulatory processes â&#x20AC;˘ $10.7 million upgrading tenure management systems â&#x20AC;˘ $14. 6 million over four years increase for government petroleum and gas inspectors. The inspectors will manage health and safety in growing industry sectors like coal seam gas.

your say A four-week consultation process has started providing residents a chance to â&#x20AC;&#x2DC;have their sayâ&#x20AC;&#x2122;. The topic - is the proposed declaration of an infrastructure corridor from Wandoan to Banana as a State Development Area. Once SDA is declared, the potential development of the area is overseen by the Coordinator General. Infrastructure and Planning minister Stirling Hinchliffe the growing demand for commodities globally had renewed the focus on the development potential of the thermal coal deposits and gas reserves of the Surat Basin in south-west Queensland. Residents have until the end of the month to have their say. To respond post submissions to The Coordinator General, c/o The Project Manager, Surat Basin Infrastructure Corridor, Regional Development, Department of Infrastructure and Planning, PO Box 15009, City East, Qld, 4002. For more information visit www.dip.qld.gov.au/sbic

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growth management â&#x20AC;&#x2DC;Shaping Tomorrowâ&#x20AC;&#x2122;s Queenslandâ&#x20AC;&#x2122; is the State Governmentâ&#x20AC;&#x2122;s response to its Queensland Growth Management Summit. The response highlights six priorities that will underpin the governmentâ&#x20AC;&#x2122;s growth management strategies. These include: â&#x20AC;˘ Shaping our future â&#x20AC;˘ Strengthening our regions â&#x20AC;˘ Promoting livability and affordable communities â&#x20AC;˘ Delivering infrastructure â&#x20AC;˘ Protecting lifestyles and environment â&#x20AC;˘ Connecting communities. These themes will be supported by 22 new initiatives and 25 new supporting actions to manage growth. Premier Anna Bligh said she was committed to continue working with all levels of government and the community to continue a dialogue with the community on managing growth.

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PAGE 11

opinions

Present legislative framework a major concern

Howard Hobbs says

So much has happened in the last twelve months it is difficult to touch on all the issues. I have no doubt, many would like to forget the one in one hundred and twenty year floods that affected so many homes and businesses. However, I now hope that the much needed wet season will bring benefits throughout the community in the longer term. There is no doubt that the CSG Industry is bringing benefits of increased economic activity to the Southern Queensland Region. However it is inevitable that those most affected will ask the question, at what cost. I want to make it clear that the LNP and I are not opposed to the development of the CSG Industry, however we have serious concerns about the present legislative framework that governs this Industry. The State Government's legislative

COMMENT Howard Hobbs MP Member for Warrego Shadow Minister for Local Government and ATSI Partnerships

framework is clearly inadequate for an Industry that is progressing from development to a major world scale energy producer. The State Government's own commissioned report the Queensland Department of Infrastructure - Liquefied Natural Gas Whole of State Environmental Impacts Study December

2007, outlines a number of recommendations which the State Government has only started to implement, after the State LNP Opposition started asking Questions in Parliament. Clearly the State Government is not fully aware of the potential impacts, nor do they seem overly concerned about mitigating these impacts and you have to ask the question why is the Government loathed to act, or are they just incompetent. This has been demonstrated by questions I have asked the Government in Parliament. I asked if there will be impacts on water pressures and levels of the more than 13 000 existing groundwater bores in the Surat Basin. An estimated 350 000 megalitres (equivalent to one third the capacity of the Fairbairn Dam) of ground water from the Great Artesian Basin will be used annually in coal seam methene gas extraction. The Ministers response that no one can answer that question at this point in time, is unsatisfactory. The LNP Opposition have asked ten Questions on Notice in the Parliament in relation to seeking assurances and further information about the CSG

Industry. The parliament and public will have answers to these questions by the end of June 2010. The Questions cover the topics of long term effects on the Great Artesian Basin ,water interconnectivity, studies, modelling and reports on CSG water extraction, assurances for groundwater users, communities with water supplies from artesian and sub artesian supplies, wastewater ponds on floodplains, contaminated sites, chemicals used in the fracking process, compliance with the Great Artesian Basin Resource Operation Plan and what action is being taken to mitigate impacts on water bores. There is public pressure and concern growing in the wider community about the CSG Industry as the companies push into the closer settled areas of the Western Downs. From my observations and on ground inspections some of the companies involved have taken a cavalier attitude to their development on prime agricultural land and irrigation areas. This has obviously resulted in protest meetings at Cecil Plains and a wave of discontent. Unless there is a huge concerted effort by all the participants in the CSG

Industry, this wave of discontent, will snowball and the public mood against the Industry will be one of great negativity. The reality is that the State Government has allowed this Industry to significantly develop to a potential energy powerhouse in peoples backyards without the proper checks and balances. The LNP and I will harass the State Government as much as we can to enact a more appropriate legislative framework. I challenge and encourage the Industry to step up to community expectations and not just meet the requirements of the existing legislative framework. There are responsible players in the Industry and I encourage them to lift the standards of the whole CSG Industry in terms of sustainable and long term environmental outcomes for the community. The CSG Industry is welcome, but we have to ensure, as does the Industry, that it is doing the right thing by the environment and by the people so that the longevity of these projects will have long term benefits not environmental consequences.

Uncertainty and frustration reign under Rudd's super profits tax COMMENT

Bruce Scott MP Federal Member for Maranoa

Since its very first edition, the Surat Basin News has been filled with articles and stories of exciting new projects, impending developments and wondrous potential for the local economies of the Surat Energy Resources Province.

But now, thanks to the Rudd Government's super profits tax on the mining sector, a question mark hangs over the viability and potential of the Surat Basin. Excitement and optimism have been replaced by uncertainty and frustration: Uncertainty for landholders and farmers in Wandoan, who were in negotiations with Xstrata over its now-stalled coal mine.And frustration that their time and energy has been wasted and the future plans for their town remain in limbo; Uncertainty for local, small and medium sized enterprises, which were relying on the development of the Surat Coal Basin to boost business; Uncertainty for potential investors, and frustration for those who have already invested in the area through housing, accommodation and local ventures; Uncertainty for those current workers employed in the resource industry, and frustration for those sub-contractors who were meant to start their jobs with Xstrata in July; Uncertainty over the viability of the Victoria-Queensland

inland railway, which was reliant on Xstrata's financial contribution to construct the link between Wandoan and the Port of Gladstone; Frustration that while Australia's resource sector are effectively facing a 58% tax, our most direct competitor, Canada, taxes its mining companies at just 25%. Frustration for the mum-and-dad superannuants, whose retirement funds rely on the strength of mining shares on the stock market. And finally, frustration for resource companies, which were provided little consultation before the Rudd Government announced the new super profits tax and which face accusations of being greedy and selfish. The mining industry has been accused of not paying its fair share, yet the sector pays 25% of Australia's corporate tax bill; up from just 5% a decade ago. In Queensland alone, the resources sector paid more than $3 billion in royalties to the State Government and over $4 billion in taxes to the Federal

PAGE 12

Surat Basin NEWS Thursday 24 June 2010

Government last financial year. Nationally, mining companies already pay 30% on their profits. But this is not enough for the Rudd Government - a government which has overseen a dramatic spiral into debt and deficit unprecedented in Australia's peacetime history. In its quest to return the Federal Budget into the black, the Rudd Government has set its sights on the mining industry and its 'super' profits.Yet the title of the tax is a misnomer; as it will cut in when profits reach just over six per cent. This tax is bad for Australia, it is bad for Queensland and it's bad for the communities of the Surat Coal Basin. It threatens the creation of jobs and local wealth, it threatens the viability of major infrastructure projects, and it threatens our national reputation as a country that is stable, sensible and safe for international investment.And unless Mr Rudd's super profits tax is axed, insecurity and uncertainty will seriously impede the development of the Surat Coal Basin.

opinions

Interesting times ahead for Energy and Mining projects COMMENT Cr Ray Brown Mayor, Dalby Regional Council

It is visibly evident that the 40 per cent resource super profits tax unleashed by the Federal Government on Australia's mining and energy sectors has created a great amount of angst in communities throughout the country. In the Western Downs one local community in particular has felt the full brunt of the federal tax scheme.The Wandoan district has been left reeling after the announcement by Xstrata to suspend its $6 billion open-cut coal mining operation.

Ray Bown says

This has widespread implications for not only that project and the infrastructure agreements that Council were instigating, but it also puts the spotlight on other projects underway or in the pipeline within the region.This Federal Government tax could also potentially affect the operations of numerous other companies in the mining and energy sectors from copper to coal. The project will go ahead eventually but I am worried about the cost of the delay. My major concern is for those contractors and business houses, small enterprises, the mum and dad investors who have gone ahead and pushed forward with the upgrade of their facilities and on the expectation that this development would occur. I don't know about whether existing jobs are lost but there is no doubt that Xstrata and these companies were ramping up their operations before the tax was announced.There is no doubt also that the contractors had also geared their workforce up to move forward with these infrastructures to be built. This highlights the 'boom and bust' cycle of a lot of the mining ventures across our whole region. Investors need to be aware how issues like the federal tax can play out. I believe that the region's rich natural resource reserves will always be there and companies will still want the resource, but it's some arrangement they will have to make with the Federal Government. At the moment it is at a stalemate.

Issues with the coal seam gas industry across the region are also moving ahead. However there still remains an extremely high amount of concern among rural landholders particularly for the Great Artesian Basin water aquifers. These must be addressed by the State Government through regulations and policies to not only protect our environment but the lifeblood of our Great Artesian Basin which is one of the greatest assets that Australia has. In our corner it is important the State Government releases information in relation to the Great Artesian Basin so that the coal seam gas industry can either move forward or come to an arrangement that must protect our landholders. Council is once again looking at the future possibilities of solar power stations with a new $1.5 billion project coming into the region.There is no doubt the outcome of all these solar projects borrowed from the Federal Government flagship solar money will be known over the next four to six months. Meanwhile, I expect the outcome of the environmental impact statements nearing conclusion with a lot of our energy sector companies to also be known soon. The world financial crisis appears to be playing out its cards across the region as issues in Europe also affect financial imports into the energy and mining companies. A lot of corporate boardrooms are now starting to weigh up their financial situations and with the

proposed resource super profits tax now in the minds of the powerbrokers of these companies, only time will tell whether most of the projects in our region are viable or not. It will be very interesting times ahead for the Western Downs.

In our corner it is important the State Government releases information in relation to the Great Artesian Basin so that the coal seam gas industry can either move forward or come to an arrangement that must protect our landholders.

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PAGE 13

opinions

SBNEWS 12 Mayne Street Chinchilla, QLD 4413 PO Box 138, Chinchilla, 4413 Phone: 4662 7368 General Manager:David Richardson Advertising:Laurell Ison Editor:Teneale Luckraft

Editorial The past quarter has once again seen this roller coaster ride called the Surat Basin resource sector reaching great highs and more recently some low, lows. Uncertainty towards the impact massive industry giants would bring to the region has been present for some time now, but throw in the Federal Government’s new ‘super’ resource tax and this uncertainty has grown to new heights. For some the tax is simply television talk; but in parts of our region, it has already hit home and hit home hard. The Wandoan community has felt its bite with Xstrata’s decision to suspend funding towards its $6 billion thermal coal project. The State Government has also come under fire this quarter with landholder alliance groups standing up and being heard. Recent changes to key legislation regarding water storage, landowner rights and environmental impacts has seen the government taking its first steps towards ensuring the region remains sustainable for future generations. It appears this booming industry developing within the Surat Basin is proving a learning curve for all involved, with gas companies, mining giants, landholders and local community members all trying to find their feet. The proposed resource tax has not yet been signed, sealed or delivered. Discussions are still ongoing.The effect this indecision has on our region, for some, could make or break them. How much longer do we need to wait? ... how much longer until the infamous fat lady starts to sing?

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Local food first

Interesting times ahead

Legislation inadequate

QRC does not support importing food from China Michael Roche, QRC

My major concern is for those who have pushed forward Ray Brown, Mayor

The State Government’s legislative framework is clearly inadequate ... Howard Hobbs, MP

Home truths amid a flurry of claims Recently, a flurry of claims has been aimed at the resources sector from the Prime Minister down on issues ranging from the proposed resource super tax to an absurd allegation that the Queensland Resources Council supports importing food from China.

IT'S TIME TO PUT THE RECORD STRAIGHT.

Nowhere in my speech did I assert that we could import food from China instead of growing it locally.

In the Surat for reasons best known to the perpetrators, I have been 'verballed' in relation to comments about agricultural production in China and India made at the Surat Coal and Energy Conference on 20 May. For the record, my comments were: "In its various forms, the energy sourced from coal is playing a key role in the transition of countries such as China and India from agrarian to industrial economies. "As history has shown throughout the developed world, such transitions have also delivered increased food production as techniques and practices improve in the hands of more highly skilled farmers working to economies of scale. "This is one reason why I have difficulty accepting the lofty notion sometimes peddled in the debate about competing land uses that Queensland has a responsibility for feeding the world, when it is clear that: • Food quality and production in countries like China have improved dramatically over the past decade and • Australian farmers are successful exporters and their markets comprise customers able to pay market prices. "It is no coincidence that Australia's leading rural export markets mirror those of our resource industries." These comments, posted on the QRC website the day the speech was delivered, noted that developing countries like China and India are boosting their own food production to feed their own people.

The forecast payment of more than $3.2 billion in minerals and energy royalties to the State Government next financial year is a telling illustration of the sector's contribution to sharing the wealth generated by the state's resources. The Treasury forecast for resource royalty receipts and land rents over the next 12 months represents a 63 per cent improvement over the current financial year on the back of improved commodity prices. This says two things. First, that the resources sector is paying its fair share to the real owners of the state's resources the people of Queensland. Secondly, the royalty regime in Queensland is responsive to price movements. If the price received for a Queensland mineral commodity such as coal or copper rises, so does the royalty paid to taxpayers. It's not a clumsy, tonnage-based system as some in the Federal Government have suggested. Over the next four years,Treasury is forecasting that minerals and energy companies in Queensland will pay Queensland taxpayers almost $13 billion free and clear of wages, salaries, infrastructure, community support programs, and corporate taxes to the Federal Government.

SHARING OUR WEALTH

WHOSE RESOURCES? The QRC is continuing to take a high profile over the costs to Queensland from transferring the proceeds of the proposed resource super tax to other states and territories.

COMMENT Michael Roche Chief Executive Queensland Resources Council

Based on federal budget and Grants Commission data, Queensland resource companies are forecast to pay an additional $4.5 billion to the Federal Government in the first two years of the super tax from 2012-13. Over the same period, budget tax concessions and infrastructure spends earmarked for Queensland from the new tax total just $2 billion. That means a net loss to Queensland of $2.5 billion, under an Australian Constitution that decrees Queensland's mineral wealth belongs to Queenslanders, not the entire country.

INFRASTRUCTURE LITE? The Federal Government has made much of its plan to allocate some $2 billion from the proceeds of the super tax for Queensland resource sector infrastructure and to resource sector communities. First it should be noted that resource companies already pay for their business infrastructure through instruments such as 'take or pay' contracts with service providers such as port and rail owners. Second, the $2 billion in Federal spending is proposed to be allocated over 12 years, resulting in an average spend across Queensland of $167 million a year. Compare that 'largesse' with the industryfunded cost of the Goonyella to Abbott Point Expansion ($830m),Abbott Point Coal Terminal expansion ($800m) and the Wiggins Island Coal Terminal ($1.4 billion). What serious difference $2 billion over 12 years will make to industry infrastructure demands and the legitimate claims of resource communities to a more equitable share of sector wealth is still waiting for an answer.

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Surat Basin NEWS Thursday 24 June 2010

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linc energy - new process success

missing link - back to drawing board APLNG - new centre opens

water - management conference

“The goal of these RCCC is to keep residents informed of the projects progress and to address any concerns they have,” Mr Jensen said.

The Santos/PETRONAS Gladstone Liquefied Natural Gas (GLNG) project received conditional approval last month. Queensland premier Anna Bligh said independent Co-ordinator General Colin Jensen had completed a review of the environmental impact statement and approved the $7.7 billion project with strict conditions.

These include: • Santos must contribute directly in substantial community infrastructure, such as accommodation and transport. • Santos must obtain many other key environmental, production licences and safety approvals, that are required under various State laws and as conditioned by the CG before any construction can start. • Salt from coal seam gas cannot be leached into the environment. • Santos is legally obligated to ‘make good’ on negative impacts on groundwater bores. Mr Jensen said while Santos was still considering its financial position, the framework to proceed to Federal Government approval was in place. “The new industry has thrown up several challenges including the management of coal seam gas water as well as pipeline access across the World Heritage listed coastal wetlands and marine environments around The Narrows at Gladstone,” he said.

Approval given for $7.7 billion project

“All liquefied natural gas proponents will also have to work together to optimise the pipeline route from Gladstone to Curtis Island to minimise environmental effects. “Santos originally proposed the idea of building a bridge from Gladstone to Curtis Island. Instead, workers on Curtis Island will be ferried in at the beginning of their two-week rosters.” Mr Jensen said one of the community’s major concerns was accommodating the workers during the construction stage. “I will require the majority of the workers to be housed in temporary quarters on Curtis Island which must be removed after construction after construction ends. “Local workers will also be given opportunities for employment throughout the project and workers sourced from outside of the project area will have to return to their home base at the end of their rosters. “The proponent will also be required to provide extra housing in Gladstone and Roma for additional workforce, as well as arrangements for affordable and community housing. “This will lessen the effects on housing

prices in the already competitive Gladstone and Roma market.” Mr Jensen said cumulative impacts would be addressed by assessing and planning for the higher impact on environmental and social needs from possible multiple projects proceeding at the same time. Another key condition is the establishment of three Regional Community Consultative Committees in Gladstone, Central Highlands and Banana and Maranoa areas. “The goal of these RCCCS is to keep residents informed of the projects progress and to address any concerns they have,” Mr Jensen said. Initially 2650 gas wells will be drilled to extract the gas from the underground coal seams. The area of impact for each well will be small and it will be surrounded by a fence for the mutual protection of pumping equipment and any livestock. During this stage 110 landowners will be impacted. Pipes to connect the wells and transmit the gas to Gladstone will be buried underground and located within

Surat Basin NEWS Thursday 24 June 2010

infrastructure corridors where possible, with impact to agricultural activities minimised. Santos must report progressively throughout the project life on its compliance with the many conditions stipulated to meet environmental standards and address community concerns. The project now seeks approval from the Federal Government before a final investment decision will be made. The joint venture project would extract coal seam gas from the Surat and Bowen basins from the Roma region through to Emerald and then pipe it 435km to a plant on Curtis Island near Gladstone for liquefaction and shipping to global markets. Meanwhile the CG is also currently assessing three other LNG projects.

These include: • Queensland Curtis LNG Project (QGC, a British Gas Group company) • Australia Pacific LNG project (ConocoPhillips/Origin Energy) • Shell Australia LNG (Shell CSG Aust) PAGE 15

down to business

Linc unlocks energy value of deep stranded coal seams

"Injecting more oxygen ensures a better conversion of the coal into carbon monoxide and hydrogen and subsequently less nitrogen."

Linc Energy's 'oxygen injection' process was successfully started and commissioned by its underground coal gasification team last month at its demonstration facility in Chinchilla. The company's UCG team experienced an effective step change in the key quality gas measures within hours of starting the oxygen enrichment process - this included an increase in gas flow rates. Linc Energy's Chief Executive Officer, Mr Peter Bond said the philosophy of oxygen injection into the UCG process was that by completing an oxygen enrichment of the air being injected into the underground gasification process, it would ensure a better quality and more pure syngas is produced. "Injecting more oxygen ensures a better conversion of the coal into carbon monoxide and hydrogen and subsequently less nitrogen." Mr Bond said.

Oxygen injection also allows Linc Energy to complete underground coal gasification in deeper coal seams much more economically thereby opening up a significant number of coal opportunities around the globe. "The deeper the UCG process, the higher the pressure that is required to pump air or oxygen down the UCG injection well. "Subsequently by enriching the air by the injection of oxygen, the result is lower nitrogen and lower compression costs." Linc Energy has found that oxygen enriched air (being a mixture of oxygen and air which is being injected) is the

most proficient, effective and economical way forward and pure oxygen injection is simply not economical.

push forward into a number of additional commercial opportunities such as chemical and methanol production.

"We can now reach down to very deep coal seams and one can see how this opens up even more opportunities for our team to unlock the energy value of these stranded coal seams.

"It also means that any potential market which has deep stranded coal and requiring high quality syngas can now utilise Linc Energy's groundbreaking work on UCG.

"This achievement of oxygen injection at Chinchilla is a huge credit to the entire UCG team and moves us further towards commercialisation.

"The recent commissioning of Linc Energy's UCG 'Generator 4' continues to be an outstanding success after months of continuous operation and the successful work on oxygen injection into Generator 4 is yet another testament to the level of skills and technology that Linc Energy is pioneering." Mr Bond said.

"This is an outstanding success for Linc Energy - it allows us, as a company, to

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Surat Basin NEWS Thursday 24 June 2010

down to business

no drilling Changes to rig mobilisation schedules has deferred the planned drilling program at Cougar Energy’s underground coal gasification project near Wandoan. Work is expected to start again later this year. The proposed Wandoan project is the company’s second major UCG project. The site will produce electricity, methane gas and petrochemicals. Meanwhile, Cougar’s pilot plant located near Kingaroy is moving forward with the preparation work for the installation of two new process wells (P5 and P6) almost complete. Drilling of the new wells is expected to be finished this week. The re-commencement of the gasification process and production of gas is expected to occur at the end of the month. As part of the previously advised pre-feasibility study for the construction of the Kingaroy Power Station, further drilling delineating the JORC resource on site was completed last week. Present indications are that wells P1 and P4 will not be utilised in the on-going production and testing of gas in this initial phase and will be plugged. However the operations of wells P2, P3, P5 and P6 will enable the proposed pilot burn test area of 20,000 tonnes of coal to be gasified and meet the requirements of the pilot program. Work on the pre-feasibility study is nearing completion. Preliminary assessments are consistent with the project economics and returns from previous modelling work for the proposed power station. The company anticipates being able to announce recommendations on power project options by early July 2010.

Missing link stalled Plans to build the first part of the Surat Basin Rail project have stalled due to Xstrata’s decision to suspend funding for its Wandoan Coal project. The proposed project introduced a major new 210km railway line that would have connected the Western Railway System near Wandoan with the Moura Railway System, near Banana. Favourably know as the missing link. The joint venture between Xstrata Coal, QR and Australian Transport and Energy Corridor would have cost around $1 billion. Surat Basin Rail Joint Venture chairman Everald

Compton said due to Xstrata’s decision, they were now going back to the drawing board. “We were on track to reach financial close and commence construction during 2011, with the track being operational at the end of 2013,” he said. “But all of this now is in the melting pot.” Mr Compton said upgrades of existing rail tracks at each end of the missing link would also now be delayed.

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NOTES This plan is a sales plan only. Areas and dimensions are approximate and subject to registration of plans of survey in the Department of Natural Resources & Mines. Some lots may contain drainage, access & services taken to ensure the accuracy of the information shown hereon, but intending purchasers should make their own enquires to verify the information.

Subject to Council approval

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For further information visit www.suratbasindevelopments.com.au, phone (07) 4669 1066 or email sales@suratbasindevelopments.com.au. Surat Basin Developments, PO Box 683, Warrego Highway, Chinchilla QLD 4413

Surat Basin NEWS Thursday 24 June 2010

PAGE 17

down to business

Water woes

open for business

Access to water has become a major issue for the Australian resource sector, due to growing demand and increasing scarcity. To help provide a wider view of water related issues, a ‘Leading Practice Water Management and Accounting for the Resource Sector’ workshop will be held in Brisbane next month.

•

understand the concepts of inputs, outputs, tasks, stores, raw water, worked water

•

know how to use data they currently collect to derive values for the flows between the various elements of their water system

The workshop will be presented in two components:

•

identify data gaps in an operation

Water Management and Water Accounting.

•

understand the issue of mixing raw and worked water and how it can impact on the calculation of operational efficiency (reuse and recycling)

Each course has the opportunity to understand a wider scope of sustainability issues related water. •

Issues discussed for Water Management include: •

interactions between water, biodiversity and landscape carbon sequestration

•

cumulative impacts of mining on surface and groundwater resources

•

water planning and regulation

•

managing water issues for mine closure.

With Water Accounting, each participant has the opportunity to: •

acquire a thorough understanding of the MCA water accounting framework

•

learning how to design a system-level description of an operation water circuit

have a better understanding of the GRI indicators and of the issues associated with the current definitions

Presenters at the workshop have a vast reservoir of knowledge and extensive experience in water management issues in resource projects in both Australia and overseas. Presenters include: •

Professor Chris Moran - principal author of the Australian Government Department of resources, Energy and Tourism’s Leading Practice Handbook on ‘Water Management’ and director of the Sustainable Minerals Institute.

•

David Salmon - Golder Associates Environmental group leader and principal water consultant - mining.

•

Dr Claire Cote - senior research fellow at CWiMI, who was closely involved in the development and testing of the MCA minerals industry water accounting framework.

Australia Pacific LNG’s Gladstone Project Centre was officially opened this month. Designed with a dual purpose, the centre will serve as an office for project employees, as well as being an education centre for the Gladstone section of the Australia Pacific LNG project. The coal seam natural gas (CSG) to liquefied natural gas (LNG) project is a 50:50 joint venture between Australian-based Origin and US oil and gas producer ConocoPhillips. APLNG's project stretches from the Surat and Bowen Basins along a 450km pipeline to a site at Laird Point on Curtis Island off Gladstone.

The course is expected to benefit personnel from resource companies, with a responsibility for managing and reporting water use. These include site environmental managers and sustainable development corporate managers. Consultants working in the water sector who have mining clients will also benefit. The course would also be of interest to people from government departments who deal with resource planning, water allocations and licences and mining. Organised by SMI Knowledge Transfer and The Centre for Water in the Minerals Industry, will the workshop will be held between July 19-21 at the University of Queensland.

Queensland Premier Anna Bligh was at the launch along with Origin Managing director Grant King and Conoco Phillips president and Chief Operating officer John Carrig. Mr King said the new centre provided more than just a project office. “It provides an information centre on the Australia Pacific LNG project and the part it plays in the coal seam gas to liquefied natural gas industry here in Queensland.”

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Measuring up for growth Roma engineering and surveying firm Fyfe Hedges is undergoing the most significant growth in its 30-year history. The firm recently completed one of its biggest projects, has expanded its capabilities with a significant investment in new machinery and is currently looking to employ new staff. M.J. Hedges Geomeasure was the first surveying company to open a dedicated office in Roma in 1978. It is now part of Fyfe, which has offices in Queensland, South Australia and the Northern Territory and has its sights set on further growth into other mainland states. Fyfe has successfully completed work on more than 1200 gas wells and 1100 gathering lines across Australia, including work on the coal seam methane projects in Queensland as well as natural gas projects in South Australia. Roma manager John Morrow said the company's expertise in natural

gas and coal seam methane gas projects had positioned it well for growth. "Fyfe Hedges offers traditional surveying services to our gas clients but also has a particular focus on the detailed engineering design and project management for this sector as well," he said.

"We recently completed work on the 435 kilometre Santos GLNG pipeline project completing a full corridor detail survey for the centreline section one of the biggest projects we have ever undertaken. "This was a significant undertaking, involving 14 crews working full time over three months.

"We are also looking to employ significant numbe rs of new staff in our survey ing and engineering divisions .â&#x20AC;?

"Other recent work has included the Braemer Wallumbilla Pipeline and we currently have full time crews surveying at the Cameby Downs Coal Project between Miles and Chinchilla.

Mr Morrow said that while Fyfe Hedges had long been recognised for its surveying skills, the firm also had significant engineering capabilities.

"Our engineers are also working in Fairview and Springwater on hundreds of kilometres of gas gathering system design and implementation.

"We can provide a full engineering service from conception through to final design," he said.

"Fyfe Hedges has demonstrated an ability to complete this type of work in a timely fashion. This has earned us a reputation that has enabled us to win work on many of the State's largest oil and gas projects. "We have also extended our capabilities in recent times with a new state-of-the-art scanning machine. Essentially this converts complicated structures and pipework in the field into three-dimensional constructed drawings. "This is enabling us to provide a better service to our clients and forms part of our ongoing efforts to find the best solutions to meet their needs."

"Fyfe Hedges has doubled in size over the past two years alone, and this pace looks set to continue. "One of the biggest challenges facing our industry is access to skilled staff. "Fyfe Hedges has overcome this by drawing on Fyfe's national network of more than 200 people. "We are also looking to employ significant numbers of new staff in our surveying and engineering divisions. "We also plan to open a new office in Chinchilla in order to streamline our operations between Roma and Brisbane and provide additional support for our staff while expanding our services in the area."

PAGE 19

building the basin

Accommodation facility will set standards M&P Services (Qld) Pty Ltd are proposing to develop 57 Royd St Wandoan into a small cabin style accommodation village with up to a seven star energy rating. The village will feature environmental initiatives that will both reduce the overall carbon footprint and the demand on local services and infrastructure. M&P Services, a Queensland owned and operated company established in 1986 in Mackay, also operates a depot in Rockhampton. The company specialises in the design, manufacture, transport and installation of prefabricated modular buildings and has plans for a move into the Surat Basin region to service the ongoing increasing demand for their products and services.

The acquisition of the Royd St block (formally Gilroy motors) and surrounding property was completed in early 2008.

The property is strategically located in very close proximity The development is midway to recreational activities as through preliminary design and is well local shops and facilities. gaining momentum coinciding It is only a relatively small development and is more aimed towards accommodation for personnel in management type positions, as well as couples that may both work in the region, rather than larger scale bulk accommodation. The great location will allow for

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Green light for Wallumbilla motel Plans to develop a 15-unit motel in Wallumbilla were given the green light by the Maranoa Regional Council last week. During a council meeting, councillors approved material change of use of land at the George Street address, subject to conditions. Submitted by Randall and Anne Albeck, the application includes building 15 single storey motel rooms, a reception area, office, storage shed, private recreation area and kitchen. It also allowed for retention of an existing building containing a three until hostel and the construction of a 1.8 metre fence on the northern and eastern boundaries of the site. Mayor Robert Loughnan said the application reflected a growing demand for accommodation in the region. The development is now subject to further operational works approval.

Surat Basin NEWS Thursday 24 June 2010

building the basin

Hard Yakka for the Yakka Skink Knowing which native plants and animals live in the region is an important aspect of Boobook's Principal Ecologist, Craig Eddie's work .

Experience plus Danny McCartin has had many years experience in the Transport and Civil industries and as a result of this experience set up A1 Group Training. All of the courses offered by A1 Group Training are nationally recognised programs that are delivered, wherever possible, on the job with minimal disruption to the work flow. A1 Group Training is completely focused on providing a customised product for each and every client as opposed to a 'one size fits all' mentality. The company is fully aware that any down time for a business means loss of revenue and therefore focuses its delivery, wherever possible, in line with what is happening in the daily work schedule to minimise disruption to the workplace.

The endangered Yakka Skink found residing in the northern gas fields of the Maranoa.

The trainers working with A1 Group Training are very well qualified in their fields and have extensive experience in all aspects of the training sector. A1 Group Training is extremely confident it can provide a quality service for great value and money. We look forward to meeting with you to discuss your training needs for you and your staff. Contact as at admin@1st.com.au or visit www.a1gt.com.au He has discovered new populations of significant species and extended the range of many including the Yakka Skink (pictured). With considerable industry expansion occurring within the Surat Basin, Craig and his team from Boobook, are often called upon to assess the ecological value of development areas. "Often developments coincide with habitats that contain plants or animals protected under State or Federal environmental legislation," said Mr Eddie. "In these areas Boobook first reviews and ground

truths vegetation mapping and compiles species lists from active searches. "We then explore management options with our clients.

The skinks are extremely secretive and live in burrows, large hollow logs or rocky areas in a variety of woodland communities throughout the Surat and Bowen Basins.

"One of the most rewarding parts of the job is being able to share our knowledge and understanding of the environment with those involved or affected by developments.

Boobook, a well established ecological consulting business in south-west Queensland, specialises in flora and fauna surveys, habitat assessments, rare and threatened species searches and ecological impact evaluations.

"For example, few people are aware Yakka Skinks exist. A large, robust lizard up to 40cm in length, they are currently listed as vulnerable."

The company maintains a vast library of native plant and animal images, some of which can be found on the web site: www.boobook.biz

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Phone 07 4630 4916 Fax: 07 4630 4588 PAGE 21

building the basin

Safety is paramount

Chinchilla Crane Hire making the most of the energy sector boom

ACCORDING to leading Australian helicopter service provider MI Helicopters, there has been a distinct increase in demand for helicopter services during the past year.

Working hand-in-hand with major companies

Mining operators are increasingly seeking the safety, cost and production benefits that the aerial solutions offered by MI Helicopters can provide.

Chinchilla Crane Hire is a small local business proving that working within the energy sector is not as hard as it seems.

Established in 1993, MI Helicopters offers a wide range of customised lifting, patrol, surveying, filming, inspection and emergency helicopter solutions. MI Helicopters director and chief pilot Kevin Clark said that, while helicopter solutions offered significant benefits, mining operators needed to be aware of the safety measures their helicopter provider adhered to. "MI Helicopters was the test subject of two ingenious safety innovations that are now available to the Australian market," Mr Clark said. Significantly, US-based Instrument Cooperation worked closely with MI Helicopters to trial the Safe-Flight power line detection system, new technology designed to protect helicopter crews and passengers from the risk of powerlines during low flying surveillance. MI Helicopters was also one of the first companies in Australia to trial satellite aircraft tracking, which allows clients to know exactly where a helicopter is at any given moment through signals sent to the internet via a satellite. MI Helicopters is still one of only a few operators across Australia that has the innovative safety system fitted to all aircraft. "The safety of our crew and passengers has always been absolutely paramount," Mr Clark said. "That is why we will continue to operate at the cutting edge of safety technology."

"The safety of our crew and passengers has always been absolutely paramount," Mr Clark said.

Based in Lloyd Street, Jason and Bek Kennedy have stood at the helm of Chinchilla Crane Hire for the past three years, since stepping in for Jason's parents Tim and Glenda Kennedy. Tim and Glenda started the business eight years ago with one crane worth $110,000 and for the Kennedy family; it was a matter of being at the right place at the right time. Together with local work, the Kogan Creek Power Station project and now the Surat Basin industry boom, Chinchilla Crane Hire boosts a fleet of 15 cranes worth around $4 million. "The increased growth in the Surat Basin due to the coal and gas industries has enabled Chinchilla Crane Hire to grow and develop into a solid and professional company, priding itself on safety and hard work," Jason said. All of Chinchilla Crane Hire's fleet have approved specifications for working in the energy sector and all cranes and staff members are fully compliant with current legislation. Companies including the CS Energy, QGC, Origin Energy, Linc Energy, Goldings, Syntech and Ergon Energy have all utilised the services of Chinchilla Crane Hire. Other services the business provides includes mobile crane hire from 15 tonne Frannas to 300 tonne slew cranes, wet and dry hire, man cages, kibbles as well as dogman and rigger labour hire if required. Chinchilla Crane Hire is also on call 24 hours, seven days a week for emergency situations. On a local level, Chinchilla Crane Hire is heavily involved with the community providing free-of-charge crane hire for local sporting and community events. The business has also recently appointed Ray Gordon as its operations manager and is organising a traineeship program for one enthusiastic and hard working Chinchilla local. "It's all about building skills on a local level," Bek said. "We want to employ locally to help create a flow on effect and a traineeship is a great opportunity for someone to get into the industry." For more information or a personalised quote, drop in and see Bek and Jason at Chinchilla Crane Hire on Lloyd Street or give them a call on 4668 9755.

Property investment opportunities are here and now A window of opportunity still exists for major players to commit to housing strategies and the Surat Basin still remains an affordable investment, Surat Basin Homes director Collin West has said.

“As a local builder we do not want to see an explosion of rental or house prices as this can have a devastating effect on smaller communities, towns like Chinchilla and Miles are beginning to draw comparisons to Karratha, the northern Western Australia town, which saw property prices skyrocket after a similar boom,” he said. “We saw thousands scrambling to lay claim to their own piece of local property.“ As a consequence, average homes became million-dollar properties and rental properties went way out of reach of the normal wage earner, this changes the whole dynamics of communities.” Mr West said there was still time to invest in the Surat Basin before property prices started to

climb too fast too quickly, we have several different options for major companies and leading supply chain companies to satisfy their housing needs as well as helping them attract and hold staff. “With large-scale projects set to break ground in the near future, it is very much time to strike while the iron is hot.” The region is expected to see some final investment decision released by major companies late this year, which has the potential to turn the market into a classic low supply - high demand frenzy. “As you’d imagine, this unprecedented $100 billion plus investment in the Surat Basin is expected to have a measurable impact on the

property market - much as similar investments have had elsewhere. “While such has been seen elsewhere in Australia, the unparalleled scale of the development in the Surat Basin means we could be seeing more drastic increases in property values than ever before.” Mr West said it is very encouraging to see some of the leading companies developing different housing strategies to attract and retrain staff and to mitigate against higher property prices and rental he feels it may be to little to late to stop property prices and rentals increasing dramatically.

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Surat Basin NEWS Thursday 24 June 2010

building the basin

GO EAST - companies wanted New Industrial Business Park provides outstanding opportunities for Surat Basin operators.

National property development company, Walker Corporation, is on the lookout for companies servicing the Surat Basin to move to their $1bn Citiswich Business Park. The 350ha industrial estate, Queensland's largest under development, is located on the junction of the Warrego and Cunningham Highways and Ipswich Motorway in Bundamba, near Ipswich. Walker Corporation New Business Development Manager, Bob Miller, said that the location of Citiswich makes it a logical destination for companies seeking a central base between their Surat Basin operations and Brisbane, with the estate providing easy

access to key infrastructure like the Port of Brisbane or Acacia Ridge Intermodal Terminal. The estate is the first and most easterly industrial precinct on the Warrego Highway. This highway is the major transport access route between Brisbane and the Surat Basin. "Citiswich offers exceptional logistical efficiencies and a strategic Brisbane base for Surat Basin operators. By locating at Citiswich, you will have direct access onto the Warrego Highway and the opportunity to reduce travel times and transport costs," said Mr Miller. "The estate's position on the junction of three national highways also makes it an

ideal location from which to distribute goods nationally," he added. Businesses located at the estate are already benefiting from major government investment in transport infrastructure. The Queensland Government has spent billions of dollars on upgrading the Ipswich Motorway to 6 lanes, slashing travel times to the CBD and Port. The duplication of the Gateway Bridge is now also complete, improving connectivity to the Port of Brisbane and Airport. Citiswich has already attracted major businesses including Capral Aluminium,The Reject Shop and Australian Pharmaceutical Industries, alongside statewide wholesale manufacturers and retailers, and businesses from the construction services industries. The estate offers B-Double access throughout, and land is zoned (General Industry), serviced and ready to commence construction immediately. Walker Corporation's in-house design and development team can also design and build a facility to meet your business needs, as well as assist with getting necessary town planning approvals. "Citiswich is one of the few large landholdings left in south-east Queensland, and one of the only estates on the Warrego Highway. The estate offers a rare opportunity

to access affordable, well-connected industrial land and the opportunity to purpose-build a facility that is custom-designed for your business," said Mr Miller. Lots at the estate are available for sale or lease from 2,000sqm to 150,000sqm plus. Walker will sell land, lease purpose-built facilities or can accommodate businesses seeking development or investment opportunities. "We see a lot of benefit in Surat Basin operators considering Citiswich for their next property solution. It's a smart choice that will provide excellent business and logistical efficiencies and a great capital investment over the long-term. Walker is keen to work with Surat Basin operators to tailor a property solution that best meets their long-term business needs" said Mr Miller. Walker Corporation is one of the country's leading industrial development companies, with over $3bn of property under development in growth centres around the nation. For more information about Walker Corporation visit www.walkercorp.com.au. For more information about Citiswich visit www.citiswich.com.au or call 1800 WALKER (1800 925 537)

Make a trucking change. Affordable industrial land south-west of Brisbane, superbly located for Surat Basin operators. Citiswich Business Park is Queenslandâ&#x20AC;&#x2122;s largest industrial estate, located on the junction of the Warrego & Cunningham Highways & the Ipswich Motorway. Alongside excellent connectivity to the national highway network, at Citiswich youâ&#x20AC;&#x2122;ll enjoy fast, direct access to key infrastructure like the Port, Airport and CBD. Make the switch to Citiswich to secure the long-term future of your business. CALL NOW! INDUSTRIAL LAND FOR SALE / LEASE / INVESTMENT / DEVELOPMENT.

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Surat Basin NEWS Thursday 24 June 2010

PAGE 23

building the basin

New framework for landholders A more consistent and transparent process to improve landholder ’s rights in relation to coal seam gas exploration was announced last month. The State Government has amended the existing land access framework to help provide certainty to all stakeholders. The changes aim to bring more consistent processes and more clarity on the rights and obligations of all parties involved in private land access and encouraging early engagement to negotiate agreed terms. Last September, the government also released a blueprint for Queensland’s LNG industry. Natural Resources, Mining and Energy minister Stephen Robertson said since then, a number of steps had been taken to ensure the environmental impacts of the industry are strongly regulated. This includes: • Legislation before the parliament that will prohibit the disposal of CSG water in evaporation dams, except in exceptional circumstances. • Strict environmental best-practice guidelines have been introduced that establish model conditions for attachment to approvals for coal seam gas activity. • To ensure that decisions are made on the best available information, extensive guidelines have also been established that define the information that must be provided by a proponent before seeking approval for coal seam gas activities or

for the beneficial use of CSG water. As part of this, CSG operators will need to submit environmental management plans to demonstrate how they will manager water from projects and evaluate the effectiveness of their operations on a yearly basis.

DURING THE PAST THREE MONTHS THE STATE GOVERNMENT HAS ALSO - Announced the setting of triggers requiring action if CSG operations impact on groundwater resources. - Sought public comment on a Strategic Cropping Land discussion paper to protect the State’s best quality agricultural land from encroachment, including by mining. - Given the independent Queensland Water Commission responsibility for managing and monitoring CMAs. CSG producers will face a clear legal obligation to ‘make good’ for negative impacts on bores and springs.Where the impact of different CSG producers overlaps, Cumulative Management Areas will be declared and regulated in a coordianted way.

“To ensure we continue to keep pace with the impacts of this growing industry, the Department of Environment and Resource Management, is also undertaking a CSG Water Feasabiliity Study to identify risks to ground and surface water associated with mining activities and determine the best ways to manage these risks as the industry grows,” Mr Robertson said.

Conference The Gladstone Resources Industry is holding its second annual conference next week. Rydges Hotel in Gladstone will host the event on June 29 and 30. Participants have an opportunity to explore the future of the Gladstone Port, as well as learn about the numerous expansion projects for existing industry. Information on the proposed LNG precinct will also be discussed. Company representatives from major projects in the area will speak. These include the: • Queensland Curtis LNG project • Fitzroy - Gladstone Pipeline • ZeroGen Power Project • Wiggins Island Coal Export Terminal • Coal Loss Management Project A pre-conference site tour of the Gladstone Port will also be conducted on Monday, June 28. This will provide participants with an opportunity to view potential sites earmarked for developments including Fisherman’s Landing,Wiggins Island and Curtis Island. Participants will also view GPC’s RG Tanna Coal Terminal and Port Central. TO BOOK A PLACE PHONE (02) 9080 4090

RMA Engineers – A Real Success Story Director of local ﬁrm RMA Engineers Jason Wardle said the team at RMA had set a benchmark in civil and structural engineering which had established the company as an industry leader. “The same way you wouldn’t get an aviation mechanic to work on your car or a vet to operate on your broken leg you need to have a specialist working with you on your engineering plans,” Mr Wardle said.

“We bring a lot of value to these projects based on our knowledge of the region,” Mr Meyer said.

“USQ is pleased to have been able to support a local engineering company to deliver key infrastructure to southern Queensland.”

“As our motto sets-out, we are the “Face-To-Face” engineers. In an era where most communication is done via email or phone we believe that it is important to establish and maintain face-to-face contact as our primary means of communicating,” he said.

An engineer himself, former USQ Vice-Chancellor & President Peter Swannell AM, PhD, FIEAust understands the importance of setting high expectations in business and in life.

“RMA’s engineering capability and technology reﬂects the highest industry standard and a level of expertise you’d expect from major metropolitan designers.”

“We can provide expert advice on anything from roadworks and urban design to residential footings, subdivisions and unit complexes,” he said. “And that includes ofﬁce buildings right through to shopping complexes.

“Our clients expect high levels of service, good communication and great engineering designs. Our state-of-the-art 3D design technology allows us to archive this. USQ Deputy Dean & Associate Dean (Academic) Faculty of Engineering and Surveying Professor Steven Raine said RMA and the USQ were intrinsically linked. “The fact that a bulk of the RMA staff have graduated with USQ degree qualiﬁcations testiﬁes to the high regard the USQ engineering programs are held by industry,” Professor Raine said. “The USQ engineering programs are closely aligned

PAGE 24

with industry needs and include a focus on developing practical skills which make graduates industry ready.

“Whether you are talking about universities or engineering companies, you don’t need to be the biggest to be the best,” Professor Swannell said.

“You just need to provide services of the highest quality, employing and training staff who care about what they do. RMA do that and, as key contributors to our region’s development, provide ﬁrst-class employment opportunities for locally educated engineers and support staff.” RMA director and co-founder Philip Meyer said the company was proud of its Toowoomba roots.

“It is a great thrill for us to be able to employ high-quality engineers at a local level who are passionate about contributing back to their region.” Mr Meyer agrees.

2-! S SOPHISTICATED SOFTWARE CREATES A $ image of a structure or road to give clients a higher understanding of a project.

“People do not need to look to the big cities for engineering experience. RMA’s engineering capability and technology reﬂects the highest industry standard and a level of expertise you’d expect from major metropolitan designers,” he said. “We are immensely proud of our profession and city and are very excited about its future growth. So, when people see our signs on various projects we want them to know that we take our profession seriously and invest a lot of time in ensuring we archive a great outcome and a good experience for all our clients,” Mr Meyer said.

“We began operations in Toowoomba over 19 years ago and now have over 30 staff as well as ofﬁces in Toowoomba and Brisbane,” he said. “We feel it’s important to have local people working on local projects right across the Darling Downs including Toowoomba, Charlton-Wellcamp, Dalby, Chinchilla and Roma which are all experiencing growth through the Surat Basin’s booming mining and natural gas extraction industries.

RMA has developed a reputation as an industry leader, servicing the engineering needs of individuals and the public sector alike.

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Surat Basin NEWS Thursday 24 June 2010

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darling downs power station With full commissioning expected to be finished by the end of the month - Origin Energyâ&#x20AC;&#x2122;s Darling Downs Power Station will be one of the cleanest base load power stations in the country.

Located west of Dalby, DDPS is a 630MW coal seam gas fired combined cycle power station.

The DDPS has a base load plant capacity of 630MW and upon commissioning, will bring Origin's total generation capacity to more than 2100MW with expected capacity to reach 2800MW by the end of the year.

It will use CSG reserves held by Australia Pacific LNG and Origin in areas around Roma and Chinchilla. These reserves will be transported through the 250km domestic gas pipeline, which links the power station to Australia Pacific LNG's CSG fields in the Surat Basin. During the construction phase, which started in August 2007, the project created more than 1000 direct jobs and many more indirect jobs in towns throughout the State including Dalby. Origin has also bought a 77 hectare block adjacent to the power station for possible future expansion. The power station consists of three 120MW general electric gas turbines, steam generation plant, a 270MW steam turbine generator, an air cooled condenser and associated auxiliaries. In December last year, the first of the three 120MW gas turbines was synchronised. A steam turbine will be used to capture the waste heat from these gas turbines, which will increase the efficiency and capacity of the plant.

Surat Basin NEWS Thursday 24 June 2010

PAGE 25

darling downs power station - O S T W A L D B R O S

Partners in productivity With extensive experience in the oil and gas developments, civil construction company Ostwald Bros was able to meet client expectations and achieve positive safety and efficiency outcomes during works associated with the Darling Downs Power Station project. As a company committed to improving workplace safety and productivity through innovation and technology, Ostwald Bros was able to meet stringent safety standards and complete a range of works including bulk earthworks, installation of drainage, culverts and fencing and the construction of roads, ponds and wetlands for the Talinga Gas Plant project which feeds into the Darling Downs Power Station. As a cost-effective means of increasing the sub-grade integrity, Ostwald Bros used the relatively new technique of Polycom stabilisation to deliver the project within specification requirements.The company utilised millimetre GPS on plants and supplied all gravel for its construction role from the company's hard rock quarry located on the Darling Downs. A diversified, family-owned civil construction company, Ostwald

Bros operates Australia-wide, providing high quality project management across a range of civil construction capabilities. Based in Dalby at the heart of the Surat Basin, Ostwald Bros specialises in regional and remote developments recently completing projects for companies such as Queensland Gas Company, Origin Energy, Arrow Energy and CS Energy. The company currently employs around 400 people and owns and operates an extensive transport fleet which carries out major product haulage as well as supporting Ostwald Bros' extensive plant and equipment. Its concrete and quarries division provides pre-mix concrete for structural concrete works and strengthens the company's project delivery capacity on industrial and commercial projects with quality assured materials. With a reputation for consistent performance, budget compliance and on-time deliverables across its range of key services - civil construction, transport, concrete and quarries - Ostwald Bros continues to deliver excellence after 20 years in the business.

Chell Engineering specialises in the Power Gas and water Industries. On Darling Downs Project Chell Engineering did the Structural Steel on GT and Steam Turbine Halls and Air In takes and Gas and Turbine enclosures. Chell also provided expert labour for the Steam Turbine installation and commissioning.

Chell Engineering Pty Ltd

Ph 08 6161 7145 Fax 08 6361 1316 Suite 1, 20 Kearns Cres, Ardross WA 6153 www. chellengineering.com.au PAGE 26

Surat Basin NEWS Thursday 24 June 2010

darling downs power station - LAING O'ROURKE A newly operational power station on the Darling Downs is proof positive that new technology can reduce greenhouse gas emissions.

Courtesy Laing O’Rourke

Projects Construction Manager Glen Orr “This will save 2.5 million tonnes of greenhouse gases being emitted annually. "This is equivalent to taking 600,000 cars off the road each year, which is a significant saving for the environment," Mr Orr said. "But there are other environmental advantages too, we have constructed a closed-system, air cooled condenser which will use only two to three per cent of the water that a conventional power station uses. "This will represent a huge saving in water usage over the life of the power station." Work on the $780 million project began in August 2007 and will be fully operational in 2010. Despite the remote location and a very tight timeframe, the project progressed well.

Courtesy Laing O’Rourke

"Our team, which numbered 780 during peak periods, operated 24 hours a day, seven days a week," Mr Orr said. "Safety was of paramount importance and I am proud to say that we celebrated a major milestone of having worked one million man hours, with only one lost time to injury."

Origin Energy Project Director Paul Farnworth “The company and I are very pleased with the project.”

The Laing O'Rourke-constructed Darling Downs Power Station is Australia's largest combined cycle power station, providing cleaner natural gas-fired electricity while using less water than conventional coal-fired power stations.

Laing O'Rourke worked in partnership with global technology leaders CH2M Hill to produce this next generation power station which has the capacity to power 400,000 homes. Located at Braemar near Dalby, 256km northwest of Brisbane, the power station is owned and operated by Origin Energy. The power station will take advantage of the rich source of coal seam gas reserves held by Origin Energy in south west Queensland. Because it is powered by new technology using natural gas, greenhouse gas emissions are 20 per cent less than that generated by coal-fired power stations of a similar size.

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Provided geotechnical testing for the Darling Downs Power Station Project South Qld Soils has a long association with Origin Energy providing testing services for construction of their vast evaporation pond network in Roma, Wallumbilla, Wandoan and Chinchilla areas. Also involved in the development of Origin’s gas production sites at various locations.

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Multifix Constructions are a family owned and operated company specializing in large Civil Infrastructure Projects. Multifix is committed to delivering its projects on time and without incident.We have an excellent safety record and are able to produce high quality work within the project program time frame making us a preferred tenderer with large scale Principle Contractors in all civil displines. Multifix is dedicated to training its employees to become high quality tradespersons and valued members of the construction industry. In recent years we have been involved in many high profile projects throughout Queensland. These include:- Kogan Creek Power Station, Braemar Power Station, Burnett Dam, Burdekin to Moranbah Pipeline, Bundamba AWTP and most recently the Darling Downs Power Station. For more information about Multifix please visit our website www.multifix.com.au or email info@multifix.com.au.

8 COLAMBA STREET CHINCHILLA EMAIL: CHINCHILLA@SOUTHQLDSOILS.COM.AU Surat Basin NEWS Thursday 24 June 2010

Steam Turbine Table – Darling Downs Power Station 2008

P 07 3206 6611 F 07 3206 6624 PO Box 3478 Loganholme Q 4129 PAGE 27

It’s all about working together. There’s been a lot of talk about the effects of coal seam gas out here lately. It’s a growing industry which will bring many benefits but naturally some people may have concerns about it. At Origin, we think it’s important to take the time to explain what we’re doing and to answer any questions you might have about our coal seam gas operations. That’s the way we’ve been working with the people across south-west Queensland for over 30 years. We’ve found that the best outcomes are achieved this way. We’re part of the community and we’re in this for the long term, so we understand the importance of respecting the local communities and our landowners to make sure agriculture and energy development can co-exist. Here’s how we’re working together to ensure everyone gets a fair go:

Rigorous monitoring

Protecting land

We have a stringent monitoring program in place to detect groundwater and water quality impacts. We’re working with the Queensland Government on a new system to make monitoring data freely available.

We acknowledge that all farming land is important; in particular the areas of high grade Good Quality Agricultural Land (GQAL). To ensure this land is protected, we look for ways to go beyond the requirements of government policy by working with landowners to minimise impacts. In fact, during our operations, less than 2% of GQAL in our total gas field area will be affected. At the end of the project, it will be available for farming once more.

Creating purified water We’ve already built two world-class desalination plants at Spring Gully and Talinga, and we are planning more in the future. These plants treat water extracted during CSG production and turn it into a usable resource.

Bio security We also ensure our employees and contractors abide by the highest environmental practice standards, and we are working with Councils to provide weed management wash-down stations in Miles and Taroom that will be available for everyone in the community to use.

Feed and fuel Another exciting project we’re trialling is using treated water to irrigate a Pongamia plantation – a type of legume that can be used as cattle feed and can also be processed to make bio-fuel.

Groundwater re-injection

If we affect it, we fix it

We’re currently developing a trial to test re-injecting the purified water we have extracted back into the ground.

That’s our commitment and we stick to it. If our operations have an impact on the environment, we rehabilitate the areas impacted.

And this is just the start of the work we’re doing, so give us a call anytime and let’s get together and talk about the issues. We’re proud of the way we’ve worked with local communities and we’re keen to set the record straight about how we do things, now and in the future.

In the coming weeks, we’ll help you separate the fact from the fiction. For more information, call into your local Origin office, call us on 1800 526 369 or visit origintogether.com. It’s all about working together.

bcm:ore 0449

PAGE 28

Surat Basin NEWS Thursday 24 June 2010

darling downs power station Origin Energy Executive general manager Major development projects Andrew Stock

Once fully commissioned, DDPS will emit less than half of the greenhouse gas and use less than three per cent of the water used by a typical water-cooled coal-fired power station. The power station will be three times as efficient as traditional brown coal generators used in Victoria and twice as efficient as the average for Queensland coal generation. DDPS' expected water consumption is 30 times better than the average rate for electricity generation in Queensland and 65 times better than the average rate for traditional brown coal generation.

"The purchase of Sun Retail in 2007 was terrific because having bought a retail business, we wanted to be able to back that retail business with generation, at least in part," he said.

This efficiency is achieved through condenser air cooling as well as the use and treatment of low quality

"The station is a very flexible station in the way it is designed. It gives us the flexibility to deal, if we want to, with production variations or the needs of customers on our retail supply portfolio.

He said the emission intensity improvement was achieved through integration of the gas turbines and steam systems in a combined cycle that optimises the thermal efficiency of the plant, together with use of low carbon intensity CSG fuel.

ACROSS ALL GENERATION TYPES DDPS emissions intensity .......... ...........0.39 tonnes CO2-e/MWh Avg Queensland coal generation ........ 0.90 tonnes CO2-e/MWh Avg Australian coal generation .......... 0.94 tonnes CO2-e/MWh

J J Richards Waste Services . .

Proud to be involved with the Darling Downs Power Station

"The flexibility and the low environmental footprint, they are really important feature to us.

- Industrial Bins - Mini Skips - Compactors - Wheelie Bins - Recycling - Extra Large Containers - Liquid Waste - Grease Traps - Confidential Waste

"And obviously we can marry up the low environmental footprint with the ability to develop and add value to our coal seam gas resources by fuelling the station on coal seam gas." Mr Stock said the benefits from the power station were enormous. "The power station will benefit Origin and its retail business and that integrated story of finding resources, taking them to markets, either directly as gas or converted into products like electricity or LNG and then being involved in the retail interface as we are in Queensland," he said.

The low water consumption has also enabled DDPS to meet the planning and development considerations of the highly water constrained Dalby region at the southern end of the CSG fields, where a less water efficient plant would not be viable.

DDPS expected water consumption .............0.035ML/GWh Average Queensland electricity generation rate .....1.1ML/GWh Average Australian electricity generation rate ........1.32ML/GWh

"Another thing which was pretty important was fuelling it with gas, so it has a lower environmental footprint. "The power station can produce electricity with less than half the greenhouse emissions per megawatt hour produced by conventional coal power."

water and maximising recycled water. The combination of using coal seam gas as its fuel and its very low water usage, means the DDPS combined cycle power station is the first of a new era of domestic power for Queensland.

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PAGE 29

people in pictures Business needs forum - SBC May was a busy month for the Surat Basin Corporation holding business needs forums throughout the district. Toowoomba, Roma and Dalby hosted the corporations monthly business forums which saw a host of guest speakers inform and educate local business owners. Participants received updates on the development of major projects as well as providing face-to-face meetings with key stakeholders. Surat Basin News was at the events to catch up with some of the participants.

Surat Basin Corporation’s Matt Ostwald with SBC acting CEO Marc Leman, Craig porter from Linc Energy, Larry Littlewood Primerentals and Gavin Watson SBC.

Brett Paxman from Wincom, Mark Slade Telstra Shop Dalby and John Wyborn from Interest Invest.

Troy Law from Simplicity Australia and Dalby Chamber of Commerce president Roz Skerman.

McCormack’s Industries John McCormack with Di Ewen from Surat Basin Homes.

John Alexander from Farming and Investment, Justin Campbell from Engine Australia, Cheryl Dalgliesh ANZ Agri and Geoff Bradley from Dalby Engine Rebuilders.

David Johnston from Carrickashmead with Origin Energy’s Bruce Chalmers.

Jenny MacNellie and Janine Grundy from MacNellie’s Workplace and Safety.

ICN Darling Downs Regional manager Evan Flower presenting to the crowd.

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watching water

THE GREAT ARTESIAN BASIN Courtesy Department of Environment and Management

WHAT is it? WHERE is it? WHY the concern? The Great Artesian Basin provides the only reliable source of freshwater through most of inland Australia and lies beneath around 20 per cent of the country including most of Queensland. In total, the GAB covers an area of 1,711,000 sqkm and its water temperature can range from 30C to 100C in places. The GAB is around 3000 metres deep in some places and it has been estimated to contain around 64,900 km3 of ground water. It has resulted in the development of many industries including agriculture and mining and provides reliable water supplies for stock, domestic, town water, industrial and mining purposes. The coal seam gas companies operating within the Surat Basin region are drawing water from the Walloon Coal Measures. These measures contain widespread coal seams throughout the GAB and most of the seams are at depth. Although the seams have lower gas content than the Bowen Basin, the Walloon Coal Measures have been targeted by CSG companies due to the coal seams porous nature and location to existing infrastructure. To ensure effective water resource

management in the Basin, including the protection of existing users' access to water, the environment and investments made under capping and piping programs, a framework for groundwater resource allocation and management in the basin is provided for under the Water Resource (Great Artesian Basin) Plan 2006 (WRP) and the Great Artesian Basin Resource Operations Plan. Under the Water Resource Plan, access to limited amounts of new groundwater may be available in accordance with the established criteria. The plan protects the flow of water to springs and maintains and improves long-term trends in water pressure while providing for the take of water for existing and some new water uses. The State Government has also moved to tighten restrictions on the storage and handling of coal seam gas water and last week released a policy to ensure that dams used to aggregate and store CSG water or brine are built to best practice environmental management standards.

ON THE FOLLOWING PAGES SURAT BASIN NEWS HAS PROVIDED YOU WITH INFORMATION

EXPLAINING COAL SEAM GAS

CSG

EXTRACTION

WATER MANAGEMENT PLANS SALT OBJECTIVES FROM TWO MAJOR COAL SEAM GAS COMPANIES

ARROW ENERGY AND

ORIGIN ENERGY

Surat Basin NEWS Thursday 24 June 2010

PAGE 31

watching water

Arrow Energy ...

The aim - to ensure the gas well is totally isolated and secure from overlying strata and aquifers so no amount of water or gas can enter or escape from the well.

Coal seams have been described as sponges - they store both gas and water.The gas occurs naturally as a by-product of coal formation and is held in place within the coal seam by the pressure of water also found in the seam. Depth causes water pressure and if this pressure is reduced, the gas can be gradually released.

the extraction process how it is done

Groundwater Quantity -

Commitments

Well construction is a staged process

Drill through the surface soil and alluvium until firm ground - the steel casing and cement is carefully placed over the entire depth to isolate the well from overlying aquifers.

The well is then deepened to fresh hard rock and narrower steel casing and cement lining is inserted.

Drilling continues to the coal seam and the steel casing and cement lining is placed to the top of the coal seam.

* To maintain a regional groundwater model * Arrow will share its groundwater monitor data with landholders as it collects the data. * Expand Arrow's groundwater monitoring program to monitor changes in groundwater quality and quantity and update the model * Promptly address claims from water bore owners of reduced water supply * Participate in government/industry co-operative efforts to model and understand cumulative groundwater impacts

The section that runs through the target coal seam is cased with perforated steel to allow gas and water flow. In some cases there may be a need to stimulate the coal seam to enhance the flow of gas - this is called fraccing.

Facts

Fraccing is not currently being conducted by Arrow Energy within the Surat Basin.

* In August, a new regulatory framework will be introduced to protect existing water bore users. * Under this regime trigger levels for spring and aquifers will be set * A regional groundwater monitoring program will be introduced * A groundwater model will be provided to support decision making and predict potential drawdown * Protect existing water entitlements using the 'make good' obligations.

Arrow has committed to no fraccing in the area of the Surat Gas project . Once the drilling process has finished, a submersible pump and pump string are installed and water is pumped from the coal seam. This water is brought to the surface with the pump string and the gas is allowed to flow up in the space between the pump string and casing. The gas and water are separated at the coal seam level. At the surface, the gas and water are then moved to a central facility through separate buried pipelines.

Gas wells drilled by Arrow â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

use proven construction procedures and processes use qualified and experienced personnel constructed to strict regulatory and environmental management measures

The water that is released from the coal can be called associated water or coal seam water.The volume and quality of coal seam water can vary between and across different coal basins and over the life of an individual well.

Arrow Energy has committed to working with landholders to ensure the impact on groundwater quantity and quality is minimal and has committed to the management of produced water treatment and storage. PAGE 32

Surat Basin NEWS Thursday 24 June 2010

MAKE GOOD EXAMPLES -

deepening a bore reconditioning a bore changing a pump adding a rising main to lower pump depth drilling a new bore alternative supply other forms of compensation extends to bores on adjacent properties

watching water Due to the uncertainty surrounding the effect of extracting large volumes of coal seam gas across the Surat Basin, Arrow intends to study claims that there is little or no linkage between water in coal seams and overlying or underlying aquifers further. The results of these additional studies will be reported in the company's Environmental Impact Study.

... Arrow Energy has been stored in evaporation dams.This is no longer the preferred industry practice and steps are underway to integrate older dams into water management systems, including treatment and beneficial use.

Arrow is considering a number of water use options

Groundwater Quality

Commitments

Arrow recognises every piece of land is unique.The company is committed to working closely with landholders to ensure work practices minimise impacts on land and existing agricultural activities.

â&#x20AC;˘ Line all dams, install additional leak detection â&#x20AC;˘ Use licensed drillers â&#x20AC;˘ Ensure wells are isolated from formation other than the coal â&#x20AC;˘ Rehabilitate wells â&#x20AC;˘ Arrow will not use oil or synthetic based drilling fluids

Fact Prevention of groundwater contamination is regulated for CSG activities with new dam standards and prescriptive drilling standards.

Produced water management for treatment and storage State Government policy requires that all coal seam water be treated if

Untreated- power station cooling water, coal washing, feedlots.

it cannot be used in its untreated form for environmentally acceptable beneficial uses. Government prefers a beneficial use for this water. In the past, coal seam gas

Salt management Responsible management of water and salt associated with CSG production is one of the most significant challenges currently facing the industry. An average of five to eight tonnes of salt is expected to be produced for each megalitre of coal seam water. The amount of salt is dependent on the location and age of the coal seam. Arrow is committed to the removal of produced salt from the local landscape.

Treated - irrigation, creek discharge. Option - reinjection.

Commitments * Conduct third party audits * Ensure dams meet current standards * Integrate existing dams into a network of treatment facilities * Arrow will not construct evaporation dams

Facts * Management of CSG water is regulated by the Department of Environment and Resource Management * There are new dam standards (Licensed Regulated Waste Disposal Facility); treatment of water.

The company is investigating beneficial ways to use this salt. Crystallisation for use in the industrial processes and the use of brine in the chemicals industry are two options under investigation.

Commitments â&#x20AC;˘ produced salt will be removed from the landscape â&#x20AC;˘ at a minimum, Arrow will remove the salt and dispose to an approved and regulated landfill.

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Surat Basin NEWS Thursday 24 June 2010

PAGE 33

watching water

Origin Energy ... Australia Pacific LNG has more than 17,000km2 of CSG acreage in the Surat and Bowen basins with an additional 18,000km2 in the emerging Galilee Basin. Origin will be responsible for the construction and operation of the gas fields and pipeline, ConocoPhillips will be responsible for construction and operation of the LNG facility.

1. 2. 3.

The project has three primary elements The further development of Australia Pacific LNG's gas fields in south central Queensland A high pressure pipeline from the gas fields to Gladstone in central Queensland An LNG facility on Curtis Island at Gladstone Before undertaking any activity, strict environmental approvals must be sought and environmental requirements met including extensive environmental assessments and an evaluation of the potential impacts on flow and quality of groundwater. Origin is also installing a comprehensive bore monitoring network along with predictive modelling, in collaboration with government, to guide monitoring activities and provide early understanding of potential impacts and mitigation actions.

Water and the production of coal seam gas Origin, on behalf of the Australia Pacific LNG Project is working towards finding beneficial solutions for the use of this water.

AIM -

to provide innovative approaches to address the issues of coal seam gas water re-use and salinity.

How the water is used * Creating purified water. We've already built two worldclass desalination plants at Spring Gully and Talinga, and we are planning more in the future. These plants treat water extracted during CSG production and turn it into a usable resource.

The proposed Australia Pacific LNG project looks to develop a coal seam gas to liquefied natural gas project within Queensland.

What happens if a gas well leaks?

How is the extraction of water monitored?

* Groundwater re-injection. We're currently developing a trial to test reinjecting the purified water we have extracted back into the ground.

Ongoing, extensive monitoring and analysis of groundwater is being undertaken by Origin as well as the State Government.

* Feed and fuel. Another exciting project we're trialling is using treated water to irrigate a Pongamia plantation a type of legume that can be used as cattle feed and also be processed to make bio-fuel.

Origin adheres to legislative and regulatory best practise. Prior to wells and pipelines being constructed, environmental studies are conducted to identify any possible impacts on water resources.

What about the salt? Water extracted as part of the process is around one tenth as salty as seawater on average. The CSG industry's preference is to direct the salt it produces to commercial use. One option is to convert the salt into soda ash and sell it to industrial users.

If impacts are identified, then mitigation and management plans are created to minimise these impacts, and in some cases the proposed sites are relocated or not used at all.

How is groundwater affected? Any groundwater extracted to access coal seam gas is geologically separated from the water used by landowners, and the thick intervening rock layers act to minimise or prevent interconnectivity between these two water sources.

What we do The installation of the reverse osmosis plant at our Spring Gully field and similar facilities at our Talinga fields help to treat the water through microfiltration and reverse osmosis to a standard that is appropriate for disposal and re-use. Potential re-use solutions after treatment include: • discharge into rivers and tributaries

The possibility of wells leaking is low due to the stringent drilling and construction procedures used together with ongoing monitoring programs. Origin's procedures are designed to ensure early detection of any events which might create hazardous conditions. In the event that a well does incur a minor leak, the leak is generally only detectable within one metre of the well due to the gas (predominantly methane) being lighter than air and dissipating quickly. A minor leak would be monitored and repaired if it poses a safety or environmental risk. In the unlikely event that a major leak was to occur at a well, the event would be

• local irrigation use • reinjection in areas where suitable receptor aquifers are identified • industrial, municipal and agricultural use • aggregation and management of water in conjunction with other producers • salt crystallisation for high value sale or transport

SAFETY WHS EHS HSE SYSTEMS

Safety precautions we take Origin conducts its operations with an aspiration of achieving zero harm and incident free performance for its employees, contractors and the communities in which we operate. The drilling and completion of wells, the installation of surface equipment and the design, construction and operation of pipelines complies with strict Australian and International Standards. In the event of a well or gas pipeline leak or rupture, a series of emergency actions are initiated. The control system alerts the operations control centre and the affected well or section of gas pipeline is isolated. Emergency services are notified if there is a risk to public safety. Operations personnel are dispatched to investigate the leak or rupture, provide remedial action or repair and minimise any damage. If a hazardous situation or emergency incident occurs, local residents would also be immediately notified.

Our objective is to minimise the number of brine ponds required to be constructed, which in turn minimises the pond rehabilitation requirements at the end of the project life.These options would also minimise the need for encapsulation of salt (landfill). All brine ponds will be built to the new high-specification Government requirements.

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PAGE 34

treated as an emergency incident, the well would be shut in and the leak repaired. With coal seam gas containing no toxic chemicals, there is negligible health risk associated with leaking wells.

Surat Basin NEWS Thursday 24 June 2010

people in pictures Industry leaders speak up Participants attending SBC Industrial Needs forum in Chinchilla were encouraged to speak up and be heard to help all levels of government plan and develop the future land and infrastructure needs across the Surat Basin region. The forum was held at the Chinchilla Cultural Centre in May. ey and Jim Richard Handl trongman. S

Greg West an d keynote sp eaker Bob Abn ett.

Gerald and Frances Purves with Karen Johnson.

Ellie Hilton, Ly nn Davidson, Hasted. Mil Horvatic an d John

Secombe. z and Graham ac w lo G en ph Ste

4Girls2 forum - no boys allowed Girls across the region have learnt first hand about the range of career opportunities available to them in the Surat Basin's burgeoning resources sector. Year 10 students from Chinchilla, Roma and Dalby met in Chinchilla last month to attend the 4Girls2 Forum, organised by the Queensland Resources Council and the Queensland Minerals and Energy Academy. Women working in the industry joined the girls at the forum to discuss career paths and the challenges of working in a traditionally male-dominated sector.

The Surat Basin News was at the forum to catch up with some of the girls.

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PAGE 35

Placesandfaces page 37 page40 page 42 page 43 Origin Energy - New offices

Downlands College - joins QMEA

WDRC - community projects

Brolga project - puts up challenge

Making life liveable The rising price of houses in Chinchilla has been highlighted by local community and business groups as a major challenge to the town in the coming years. The issue was raised at the Surat Basin liveability forum in Miles last Thursday. CCCI secretary Marion Loveday said that community groups from Chinchilla identified high housing prices as a significant concern for a community going forward. "Just because a mining company can come in and pay $500 per week for a house doesn't mean that everybody else in the community can," she said. "(We've heard) quite frightening experiences of people being kicked out of their houses for not being able to afford the skyrocketing rents for the houses they live in.â&#x20AC;? CCCI president Wally Gleeson said the meeting was an important and much needed step in addressing concerns region wide. "(We addressed) the need to ensure that we have the resources within to cope with the influx," he said. "How do we overcome the fly in, (fly) out mentality?

PAGE 36

Surat Basin NEWS Thursday 24 June 2010

"How do existing long term people continue to live in our community with escalating house and rental prices? Not everyone in the community work for the mining sector on above average incomes." Members from community and businesses groups from towns across the region were in attendance to discuss the growing issue of liveability through the current period of growth. Australian National University sociology lecturer Professor Stewart Lockie addressed the current and future issues facing the Surat Basin including the trade off between addressing a local skill shortage while avoiding what has become known as the Dutch disease. The Dutch disease is an economic theory that explains the relationship between a booming resource sector and the negative effects on local manufacturing or agriculture by moving skilled labour away from those sectors.

places and faces

Origin opens offices in Chinchilla and Miles Origin Energy is ensuring community members are kept up-to-date with the latest project news, with new customer service offices opening in Miles and Chinchilla this month. These are in addition to its Roma office. Origin Energy Land Strategy and Stakeholder Relations manager Martin McVicar said it was due to industry and community growth.

Communities consulted

He said locals were encouraged to come in and chat to their specialist teams or ask any questions they have regarding Origin’s operations. “Come in any time and have a chat and ask any questions you may have; there is access to specialist information on hand,” he said.

“It’s an interactive space where residents can meet face-to-face with staff.” He said landowner liaisons as well as Origin’s environmental teams would be available to discuss issues or concerns community members may have.

All offices are open from 8.30am to 5pm Monday to Friday.

Origin Energy staff were out and about in April visiting regional centres in their Working Together bus. During the tour, Origin conducted its third round of EIS community consultation sessions providing local residents with information on its Australia Pacific LNG Environmental Impact Statement for its coal seam gas to liquefied natural gas project. Towns visited included Roma, Chinchilla, Miles, Millmerran, Taroom and Biloela. More than 400 attended the sessions with staff fielding a number of questions including associated job and

supplier opportunities. “Feedback is very important to us; it helps us to better understand your issues and needs,” a spokesperson said.

“We are pleased to have received some very constructive feedback and were pleased to hear that you appreciated our information sessions.”

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Surat Basin NEWS Thursday 24 June 2010

PAGE 37

places and faces The switch was flicked and Dalby’s $3.62 million Wastewater Treatment Plant was officially opened earlier this month by Local Government minister Desley Boyle. The vital infrastructure project has been delivering one million litres of high quality industrial grade water to Dalby Bio-Refinery since February. “The Bio-Refinery had previously used potable water so this translates into a 365 million litre-a-year saving of Dalby’s potable water,” Ms Boyle said. “Down the track, if council chooses to increase capacity then recycled water could be used to help keep local sporting fields and parks in tip-top shape.” Meanwhile Western Downs Regional councillor Bill McCutheon said since commissioned, the plant had already had a significant impact on the volume of Dalby’s town water supply. “At present the sole purpose of the plant is to serve the Bio-Refinery, however, council will look at further opportunities to expand the supply of recycled water in the future when we decide it is feasible to do so,” he said. “The plant and its treatment process was

designed as a tertiary treatment facility at the end of existing processes and, as such, it does not alter existing infrastructure.

The new plant was designed and built by Australian company Water Infrastructure Group. It was a jointly funded initiative of the State Government,Western Downs Regional Council and Dalby Bio-Refinery Ltd.

“A dedicated recycled water pipeline delivers this water from the Dalby water recycling plant to the Bio-Refinery.” Last week council opened the gates to the public, holding a community inspection day. The guided tours were conducted around the plant and information on other treatment processes including inlet screens, biological nutrient removal process, clarifiers, chlorination contact chambers and sludge belt presses was also available.

The vital infrastructure project has been delivering one million litres of high quality industrial grade water to Dalby Bio-Refinery since February.

Local Government Minister Desley Boyle flicks the switch on the new $3.62 million water recycling treatment plant.

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places and faces

Roma roads ready A range of key projects have been completed throughout the Maranoa with flood damage and road repairs high on the agenda.

2 3 4 5

Widening, sealing and installation of kerb and channel in Tiffin Street, Roma between Chrystal and Rae Streets; Three kilometres of gravel re-sheeting on Wallumbilla North Road near Cattle Creek Road; Four kilometres of gravel re-sheeting on Dilqui Road, Surat between the Roma Southern Road intersection and Wycombe School;

The work is part of the Maranoa Shire Council’s allocated $7.6 million for capital construction work. Mayor RobertLoughnan said the flood damage repair work was also well advanced. "Our streets and roads have been hit hard by record rainfall," Cr Loughnan said. "Over the past two months, crews have worked exclusively to repair potholes and scouring on more than 600 kilometres of roadway across the region.

"A further 30 rural roads are due to receive the same attention in May, including East Maranoa Road, Begonia Road, Waroonga-Injune Road, Mungallala-Redford Road, Miscamble St East and Mt Saltbush Road. Cr Loughnan said crews were finalising five capital works projects:

Full upgrade and widening of 21 kilometres of Yuleba-Surat Road north from the RomaCondamine Road;

Widening of five km of the Carnarvon Highway south of Surat.

Other recently completed projects include a $142,000 Federally funded upgrade of Glenearn Road, Surat and an $80,000 Federally funded re-sheet of Yarrawonga Road,Yuleba. Council will also look to recover approximately $18 million worth of flood damaged infrastructure through the State and Federal governments' Natural Disaster Relief and Recovery Arrangements Flood Damage Scheme.

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sewerage system will gain a new lease on life with plans to reline the system expected to start next month Interflow Pty Ltd has been awarded the $243,800 job that will see 1.5km of ageing sewer main rehabilitated. This will include Northern Road as well as Holland, Mayne, South, Jackson, Foott, Luff, Feather and Powell streets. Maranoa Regional Council mayor Robert Loughnan said the project would restore the integrity, reliability and efficiency of the mains with minimal disruption to service. “Large areas of Roma’s sewerage network were built in the 1950’s and some joints and pipes have deteriorated with age,” he said. “The rehabilitation of deteriorated sewers is essential to ensure the town’s network operates efficiently. Cr Loughnan said using an Australian invented method,it would reduce potential problems without overflows, disruptions to sewerage operations or the

Maranoa Regional Council Mayor Robert Loughnan.

excavation of roadways and verges. “The end result is cost savings in time, energy, chemicals and reduced water.” Work is due to start early July and take around four weeks to complete. It will not disrupt normal sewerage services.

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PAGE 39

places and faces

$10,000 in funding for medical aid Western Downs Regional Council extends its appreciation to Bilfinger Berger Services, Baulderstone's partner in the Braemar 2 Power Station joint venture, for the Community Safety Support funding.

The Braemar 2 project team has left a positive legacy in the community through donating an analgesic machine to the hospital, sponsoring junior rugby league and donating to the local fire brigade among other activities. Earlier this year, the group donated funds to purchase 25 Tunstall Medi Alert units for Queensland Health's Home and Aged Care Community (HACC) Services. Dalby re

sid Constructi ent Betty McWilli Spokesperson for Community and Cultural Development o a (right) for n Manager Michae m is grateful to l funding do B councillor Carolyn Tillman said she was grateful for the generous nated to p Vintila (left) and P raemar 2 Power rovide 25 M roject Man S ager Pete tation edi Alert u donation. r O'D nits for the reg ion's elderl ea y.

"Medi Alert units are designed to be worn by the elderly and infirm to give them ready access to help in an emergency. The 25 alarm units have been distributed to communities within the Western Downs Regional Council on a per capita basis and have already proven invaluable," Cr Tillman said.

Career choices open up at Downlands Downlands College is delighted to be a part of the Queensland Minerals and Energy Academy's (QMEA) partnership with Queensland's leading coal seam companies, Energy Skills Australia. In line with recent media highlights about the Surat Basin's future as a world class energy producer, Downlands wants to offer students the opportunity to be a part of the many great career choices that are becoming available. With the support of Energy Skills Queensland and coal seam

gas companies Origin Energy, QGC and Santos, QMEA has provided more than 4350 State high school students at Roma, Chinchilla, Dalby, Toowoomba, Oakey and Pittsworth and the independent Downlands College at Toowoomba with an opportunity to focus their education on the rapidly

Phone: 07 4669 1949 or 0458 516 241 PAGE 40

Surat Basin NEWS Thursday 24 June 2010

expanding coal seam gas industry. QMEA chairman Michael Roche said the commitment of the State's leading coal seam gas companies to career opportunities for thousands of young people across the region, represented a significant turnaround in fortunes.

places and faces Surat Basin Corporation moves forward In a bid to meet the growing needs of local communities, the Surat Basin Corporation has undergone a period of massive transformation. Recent staffing and office changes have enabled the not-for-profit group to create a structure that can continue to keep pace with the every changing resource sector. Discussions with Local Governments have also proved fruitful. The Toowoomba Regional Council,Western Downs Regional Council and Maranoa Regional Council have thrown their support behind the group in varying forms with the outcome being additional capacity to deliver the much needed clarity of information to their respective communities. SBC spokesperson Graham Secombe said it was good to be moving forward. “In the past it had been difficult to gain real commitment from Local Government,” he said. “There is an ongoing shift towards the realisation of the important role the group has to play in the region. “We now have more resources to deliver important services than we ever have.” Created to lobby on behalf of communities and industry, SBC is also working towards formalising the alliance to create one voice for the region. “We will act as a lobby group for not only major projects, but also Federal and State government, as well as industry, communities, and the agricultural sector, ensuring a structured approach towards beneficial outcomes are maintained.” The new structured approach has enabled the corporation to turn its attention to regional issues including water and the Resource Super Profits Tax. Mr Secombe said the corporation had real concerns that the RSPT is hurting local communities and businesses more than either the multinational mining companies or the Federal governement. “The message not getting across is the effects it is having on communities and local business. “The longer the uncertainty goes on the worse it is for our region.” Understanding water and educating communities is also high on the group’s priority list. “We are now holding discussions with government, major projects, independent authorities and the agricultural sector, to facilitate a forum that brings a balance delivery of known factual information back to communities.” Next month Surat Basin Corporation is looking to hold an employment and skills forum, with the proposed water forum scheduled shortly there after. A major conference in Roma and a Trade Expo in Toowoomba is also being planned. “One thing is for certain,” Mr Secombe said. “Some of the proposed $140 worth of projects will proceed regardless of the contentious RSPT outcome. “Our adage has always been, if 10 per cent of the projects come to fruition; and are well managed; there is the potential of advantageous flow on effects for generations.”

sustaining surat A delegation from Chinchilla, Miles and Dalby travelled to Brisbane earlier this month to meet with the Standing Committee on Employment and Workplace Relations at the Commonwealth Parliament offices. The standing committee, drawn from both sides of parliament, is inquiring into the applicability of government employment policies to address the skills shortage in regional Australia, focusing on opportunities to support the relocation of unemployed workers from areas of high unemployment to areas experiencing skills shortage. With the Surat Basin identified as one of these areas, the delegation was afforded a unique opportunity to inform the committee from a community perspective, the concerns and critical issues which must be addressed if this policy were to become practice in the region. The delegates were able to outline issues relating to availability of affordable housing, up-skilling of workers, impact on community services, networks and services to support multicultural training, roads and transport and education and training.

Delegation members - Beth Wood and Megan McNicholl (Dalby and Chinchilla/Miles Western Downs Skills Project) - Wally Gleeson and Roz Skerman (Dalby and Chinchilla Chambers of Commerce and Industry) - Doreen Goldsmid and Cecily Brockhurst (Chinchilla and Miles Community Centres) - Grace Laws (Chinchilla Business Owner) - Cr Carolyn Tillman (Western Downs Regional Council) - Ben Hughes and David Norris (BeNext )

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places and faces

WESTERN DOWNS GETS UPGRADED The Dalby region received a boost to social and recreational facilities at the start of the month with the opening of 10 new community projects. Worth more than $800,000 projects included installing a new filtration system, circulation pump and valve manifolds at the Dalby Swimming Pool. Walkways at Bell, the amphitheatre at Jimbour, a Memorial Hall refit at Jandowae and the Myall Creek bikeway were also included in the upgrades. Brigalow, Miles and Tara also received funding under the Federal Government’s Regional and Local Community Infrastructure Program. Western Downs Regional Council mayor Ray Brown said a majority of the money

had been spent on projects ready for implementation, which allowed a backlog of essential community projects to completed. “The opening of the 28 projects in our towns over the past month signifies the valuable partnership being forged between the Federal Government and Western Downs Regional Council to bring facilities required which will greatly benefit our local communities.”

“$125,000 allocated for the Dalby Swimming Pool to install a new filtration system, circulation pump and valve manifolds.” Mayor Ray Brown and Federal Senator John Hogg unveil projects in the Miles region at the end of May.

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Queensland’s coal seam gas producers have been ordered to fully audit their operations, to ensure their gas wells and equipment meet appropriate health and safety standards. Natural Resources, Mines and Energy minister Stephen Robertson said industry had been ordered to participate. “Under the program, all companies will have to report on their risk assessment and management processes which deal with any identified leaks and ensure their equipment meets appropriate national standards,” he said. “The companies will be required to report the results of their findings and remediation work they undertake to the Petroleum and Gas Inspectorate on a weekly basis. “Further, our inspectors will undertake random field inspections and testing to ensure the gas companies meet their legislative obligations.” The roll-out of the program followed a series of inspections on wellheads operated by QGC in the Tara district. “It’s in the best interest of Queenslanders that we get this balance right.”

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place and faces

The challenge is on 100 university placements all headed to rural Queensland This is the lady to do it ... campaign manager Lorena Ocrospoma The Brolga Project has launched a new innovative strategy designed to help redress the age-old issue of rural drift.

‘Campaign 100’ is a short-term, high energy program within the project. The aim is to place at least 100 university students in work experience opportunities in rural communities during the June/July semester break. Campaign manager Lorena Ocrospoma said the rationale behind the initiative was to give metropolitan based students an opportunity to experience the unique lifestyle and

career choices offered in regional communities before they graduated.

“We already have more than 600 students on our books, ranging from young, first full-time job-seeking students to married mature agers who are keen to move their whole families if the work experience works out ok,” she said.

Meanwhile, Roma accounting firm Condon Treasure has been the first regional business to offer a student a full-time position through ‘The Brolga Project' with Queensland University of Technology student Nijo Antony settling into his new environment comfortably. Condon Treasure Partner Kevin Harker said the biggest problem with being a regional business was to attract qualified people.

“It would be great to find placements for all 600 students but if we can get 100 or more out, we will be injecting powerful human and financial

Environmental protection a step forward

capital into regional communities, building a terrific oundation for the future of the project and ongoing opportunities for other students.”

"People think they will be stepping into a time warp if they cross the Great Dividing Range and of course that's not the case," Mr Harker said. "There's a tonne of opportunity out in these areas, lots of specialty businesses are trying to build up their knowledge base but struggling to find qualified people.”

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Natural Resources, Mining and Energy minister Stephen Robertson said these amendments would require CSG operators to evaluate and adapt their management practices to ensure their was minimal impact on surrounding land and water.

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Name: Jacob Frahm Contact: 0429 610 597 Base: Murgon Qualifications: • Short courses in generic mine site induction, metalliferous core and coal surface • Certificate II in engineering • Forklift licence • Truck learner licence • Blue card • Certificate II in steel fixing Skills: experience in: Dozer Scraper Tractor Roller Truck operations Steel fixing experience Generic mine induction Career change wanted Immediate start

Name: Bruce Muller Contact: 0428 781 606 Base: Nambour Qualifications: Trade qualified boilermaker,

Name: Brent Trinder Contact: 0423 831 234 or 0433 581 351 Base: Toowoomba Qualifications: Cat 785 Rear Dump Truck

welding tickets 3E & 4, forklift, boiler operator ticket. Mine generic ticket, confined space, safety rep. Car, motorbike, HR truck & bus licence. Blue card. Skills: 30+ years exp, MIG, TIG, mild steel, stainless, aluminium, oxy & arc welding. Exp as leading hand. Interpret drawings & plans. Heavy fabrication, maintenance, construction site work.

& Cat 777 exp, HC Licence, Forklift Licence, WH&S Officer Skills: Dump truck exp, 15 yrs exp warehousing & warehouse manager, hard working, dedicated, current medical cert for operating mine equipment. Based in Toowoomba, work in area or FIFO

Name: Gerald Daly Contact: 0428 712 389 Base: Wattle Camp Qualifications: Ass Dip Eng Surveying

ANYWHERE IN SURAT BASIN

CONSTRUCTION/BUILDING

DUMP TRUCK OPERATOR

Name: Shaun Porter Contact: 0438 789 350 Base: Qualifications: Trade qualified boilermaker.

Name: POD Constructions Contact: 0427 316 676 Base: Toowoomba Qualifications: Licenced in structural steel

Name: Kevin Bignall Contact: 0400 544 720 Base: Cooroy Qualifications: Qualified fitter mechanic.

Pressure ticket Cert 7 - GTAW. Blue card, forklift, EWP & machinery tickets. Skills: 10 years experience in coal and gas fired powerstations. 3 years in oil and gas industry based in Cooper Basin. Extensive knowledge in fabrication, reading drawings & design, welding, MIG, TIG, stick, flux cored wires, pipefitting and pressure welding. Have own tools and transport.

fabrication and erection. Intermediate rigger, dogman, Blue card, working at heights. QBSA Lic# 714324. Skills: 12 years experience in steel frame buildings - any size. Professional results guaranteed, gasfield experience. Commercial, rural, domestic.

Skills: Extensive work contract surveying roads, dams, bridges. Own equipment (Leica 1203) and vehicle. Rates negotiable

HR licence, dump truck licence. Generic coal board induction & medical Skills: Many years experience in mechanical industries including marine and mining. Immediate start, own tools and transport.

TRADES and SERVICES advertising

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4662 7516 0419 707 840 “Work Well, Train Well, Eat Well” for sale Travel & live in comfort. 1983 Denning, GM 692VT rebuilt motor. Features polished floors & Tas Oak/Maple/Cedar fit out. S/Steel kitchen, Q/S bed, full size shower over spa bath, satellite TV, DVD, surround sound, fold out lounges, twin r/c A/C, plenty of storage. GPS, reverse camera, 800L water, 200L grey, 200L black. 8KVA generator, f/load wash machine, BBQ, roll out awning. 4x200ah batteries, charger, inverter, air bag levelling system, 2pac paint. Inc. 5.5t Trailer to suit large 4WD with lockable storage, ideal for tradesperson. Will consider selling separately. Many more extras. Registered until Dec 2010. Converted by owner, genuine sale due to growing family. $160,000 neg. Genuine interested buyers phone 0419 929 601.

heavy diesel fitters

McCormack Engineering OAKEY Contract Fabrication & Fitting Maintenance • Trade qualified – with fabrication, construction, power station and washplant maintenance experience • Tickets – generic mine induction, first aid, blue card, confined space, work at heights, basic rigger, EWP, CN mobile crane, fork lift, DG dogger, front end loader, LBG gantry crane • Licences – HC, R, UD classes

A window of opportunity still exists for major players to commit to housing strategies

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For On-Site Maintenance, Repairs & Fabrication in our Workshop or Plant Operator Requirements

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Phone Pat McCormack 4691 5216 or 0408 700 745

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FK Gardner & Sons specialising in: • Civil • Developments • Plumbing

• Construction • Plant Hire

www.fkg.com.au Toowoomba – Roma – Mackay – Brisbane PAGE 44

equipment hire

crane hire

Experienced Diesel Fitters Civil construction company Ostwald Bros is looking for qualified and experienced diesel fitters to join our Plant Maintenance Division based at our new Dalby Workshop. If you are committed to delivering the highest possible standard of workmanship and have a strong commitment to safety in the workplace then send your application to: THE RECRUITMENT OFFICER, OSTWALD BROS, PO BOX 279, DALBY Q4405 or email hr@ostwaldbros.com.au Phone 1300 678 925

www.ostwaldbros.com.au

infield services & pipelines

FOR ALL YOUR CRANE HIRE NEEDS NEW FLEET DRY HIRE FRANNAS AVAILABLE • • • •

All Terrains 35 to 220 tonne Frannas 15 to 25 tonne Heavy haulage Specialised transport

Coal Seam Gas Specialists

07 4634 8777 Travis: 0408 018 509 FAX 07 4634 8677

24 Hour 7 Days Office & Depot: 29 Carrington Rd Toowoomba Postal Address: PO Box 9127 Wilsonton 4350 Email: loughlincranehire@bigpond.com

Surat Basin NEWS Thursday 24 June 2010

P: 07 3292 0800

LOOKING FOR WORK I N T H E S U R AT B A S I N • I N T H E S U R AT B A S I N • I N T H E S U R AT B A S I N EMPLOYMENT IN SURAT BASIN

LOADER FOR HIRE

MOBILE DIESEL FITTER

TRUCK DRIVER/TRADESMAN ASSISTANT

Name: Steve Lurie Contact: 0429 134 200 Base: Langshaw Qualifications: Specialist applicator/multi skilled trades assistant. Current coal board medical & generic induction. Fork lift licence. Skills: 6 years exp on construction & shutdown work in gas, oil & mining. Experience in specialist coatings for fireproofing on gas plants, rigs & refineries; structural grouting for mech & elect crews; industrial painting inc prep & painting of welds, handrails. Worked as T/A for b/makers, fitters & mech trades in Aus, NZ & PNG over last 20 years. Nearing end of contract at Pluto LNG plant, WA.

Name: Robin Scott Contact: 0428 712 389 Base: Wattle Camp Qualifications: Loader operators ticket. Skills: Experienced operator, worked in construction many years - gas pipeline, roads, dams, clean up, drill and line clearing. Extensive experience with dozers and scrapers. Previous experience on gas pipelines. Own Cat 930 loader. Rates negotiable.

Name: Gavin Dorans Contact: 0428 697 979 Base: Dalby Qualifications: Certificate III in Diesel Engineering Skills: 20 years experience across all machinery. Fully equipped mine approved mobile diesel field service and repairs. Current mine generic. Will work anywhere in Surat Basin.

Name: Cara Downes Contact: 0488 931 002 Base: Bundaberg Qualifications: • “C” class drivers licence Skills: Would like to gain a position as a truck driver or tradesman assistant. I am willing to obtain training to fulfill my ambitions in these fields of work. Reliable and willing worker.

ENGINEERING/CONSTRUCTION

MINING OIL AND GAS

PLANT OPERATOR/CONSTRUCTION MINING

PROTECTIVE COATINGS

Name: Andrew Margetts Contact: 0428 887 906 Base: Toowoomba Qualifications: Fitter & Turner, Cert IV

Name: Wayne Green Contact: 0422 590 108 Base: Lota Qualifications: Pre-apprenticeship mechanical

Name: Robert Browne Contact: 0419 710 126 Base: Kingaroy Qualifications: Operators tickets for grader,

(diesel fitting). Certificate II in drilling - mineral exploration. Herbicide application for commercial operators. Blue card construction, generic mine inductions. Skills: 4 years experience MIG welding, repetition engineering, truck tyre fitting, recent shutdown experience working as trades assistant.

dozer, loader, roller, excavator, fork lift, nonslewing crane, scraper. Cert IV workplace training assessment. Generic mine induction (cert). Skills: 24 years experience in open cut mining operating above equipment and also draglines. Prior to this worked in construction operating dozer, loader, scraper, final trim grader operator.

Name: Carl Laurenson Contact: 0410 369 424 Base: Glenwood Qualifications: Licences and tickets:

Business, Adv Diploma Eng, Workplace Health & Safety Officer, Restricted Electrical Licence 240v, Forklift, Heavy Combination, Dogger, Crane C6 Skills: 35 years engineering experience, design & analytical skills. Can do attitude. Immediate start. Own transport, own tools, own ABN.

Chartek, first aid, work safely at heights, LADC rig pass, fork lift, backhoe, excavator, non-slewing crane, front-end loader, work platform, gantry crane, HC. Skills: Protective coating, grouting. Worked in oil & gas industry in WA, Qld & PNG - 8 years.

TRADES and SERVICES land sales

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Surat BasinNEWS An easy reference for any business searching for local contractors who can help with their business development

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Ph/Fax (07) 4662 1810 • Ph (07) 4662 1900 Mobile 0408 762 876 or 0427 777 339 Email dph7@bigpond.com.au

Tess Owner/Principal

Department of Transport Authorised Officer for: Certification of vehicle modifications Roadworthy inspection – light & heavy vehicles HVRAS Officer Heavy vehicle, truck & trailer measuring Mobile Inspections – Surat Basin Area & All Qld

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Richard has 16 years of post trade experience & extensive experience in all of the above areas and strives to deliver quality safety oriented customer service.

Richard Scarff 17 Benn Court Highfields Phone: 0423 149 668 Chris

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Mobile equipment repairs Fixed plant repairs Earthmoving equipment repairs Mining Labour Hire Cert 4 in training and assessment

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Phone Noel on 0427 628 107 shed sales & construction BSA 1129121

wanted

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Dulacca 4627 6106 M 0427 728 469 SELLING AND CONSTRUCTING ULTIMATE QUALITY STEEL SHEDS TO SUIT YOUR NEEDS We can build your shed from start to finish WE NOW SUPPLY AND SELL COLORBOND PATIOS AND COLORBOND STEEL SLAT FENCING SPECIAL 3m x 3m Zinc garden Shed $590

Phone Max on 0427 728 469 or 4627 6106 or Fax 4627 6406

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Contact Ron to discuss a training proposal to suit your organisation t: 0422 521 156 or e: ron.lws@bigpond.com

on or email advertise@suratbasinnews.com.au for information on how to grow your business

Surat Basin NEWS Thursday 24 June 2010

PAGE 45

Surat Basin News Employer of Choice ADVERTORIAL

Joshua proves his skills as an apprentice and is heading to Canberra SDANA A@Q?=PEKJ P U OPN @ EJJ@@QQOOP =J@ E SKNG PKCAPDAN At USQ we know that changing times calls for ďŹ&#x201A;exibility. Our programs deliver highly qualiďŹ ed, job ready graduates. That means you are better prepared to handle what ever arises. All our degrees are structured to provide ďŹ&#x201A;exibility, so whether you study full time, part time, on campus or via distance education you receive the same high levels of support USQ is renowned for; coupled with the ability to progress from an Associate Degree to a Masters Degree, we will be with you every step of the way. We are Australiaâ&#x20AC;&#x2122;s number one Engineering and Spatial Science distance education provider. So talk to us about building your new careerâ&#x20AC;Ś

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& ! (&'% ! " & & +# "% % ! #%" ( % " % ) %& ! " % % "##"%'(! ' & '" ' !' ! ) ( & * " * # "(% (& ! && '" ' %"* ! " &' ! !' %! ' "! ! "% ! % , %" % "! ! % , & &' & ! ( !& ! (%' & "! " (&'% & % &' # ' ! % &'%( '(% #%" '& '" '(%! "(% *"% && % & %) & " " & & !'" $( - ! '(% & &" "# % ' & ' & -% "! ! "* % ' ' "! ' *"% & -%&' " ! , #"* % &' ' "! '" %(! !' % , "! " & &

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Hospitality Field Officer Will Griffiths was selected to undertake the program two years ago.

It was an amazing opportunity, something that has benefited me both personally and professionally. -Will

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Apprentices are Trainees successfully being placed in many industries, including â&#x20AC;˘ Engineering â&#x20AC;˘ Horticulture â&#x20AC;˘ Agriculture â&#x20AC;˘ Administration â&#x20AC;˘ Retail

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Since its inception, the charity golf day has raised around $50,000 with all funds being directed to the YPAR project promoting â&#x20AC;&#x153;Here for Lifeâ&#x20AC;? programs for young people.

Training delivered in all areas

The Apprenticeship Company Toowoomba Ph 4639 2099 Chinchilla Ph 4669 1533 Goondiwindi Ph 4671 0170 www.dgt.org.au

â&#x20AC;&#x153;We see this event as a fantastic opportunity to raise funds to help as many young people as possible to overcome their problems, so they can look forward to bright and fulfilling futures,â&#x20AC;&#x2122;â&#x20AC;&#x2122; a spokesperson said.

WORKING TOGETHER. To Build Tomorrow.

â&#x20AC;&#x153;What better place than the golf course, in a relaxing and informal environment, or afterwards during the playerâ&#x20AC;&#x2122;s presentation, to network, and strengthen business and personal relationships with existing and potential clients. â&#x20AC;&#x153;Previous participants will tell you itâ&#x20AC;&#x2122;s a great day for networking, exercise, fresh air, fantastic prizes and catching up with industry friends and colleagues. â&#x20AC;&#x2DC;â&#x20AC;&#x2122;

The organisation has launched its annual All Trades Golf Day.

For further information on The Apprenticeship Company or Downs Group Training golf day, contact the Toowoomba ofďŹ ce on (07) 4639 2099 or the Chinchilla or visit www.dgt.org.au

Search for your next step

â&#x20AC;˘ Fork Lift â&#x20AC;˘ TrafďŹ c Controller

The program encourages young people who have identified as being at risk. These are young people suffering from mental health issues who donâ&#x20AC;&#x2122;t see a way out or forward.

Downs Group Training isnâ&#x20AC;&#x2122;t all about work and no play. In fact, the organisation not only encourages training but promotes the importance of supporting charity.

To be held on August 13, the event is known as a charity event which fundraises for Young People at Risk (YPAR) program supported by the Toowoomba Hospital Foundation.

â&#x20AC;˘ Regular monitoring visits

â&#x20AC;˘ Management of on & off the job training

Held in Canberra in August, Todayâ&#x20AC;&#x2122;s Skills: Tomorrowâ&#x20AC;&#x2122;s Leaders is a national leadership program for Group Training apprentices and trainees aimed at maximising leadership and career development.

And, Josh is pleased to be representing The Apprenticeship Company, a division of Downs Group Training.

The Apprenticeship Company will arrange â&#x20AC;˘ Recruitment & short-listing

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He is one of only 22 apprentices and trainees to be selected to attend Todayâ&#x20AC;&#x2122;s Skills: Tomorrowâ&#x20AC;&#x2122;s Leaders.

Throughout the program the students will attend Parliament House and meetings with key politicians, as well as meeting some very high achievers through the Australian Institute of Sport.

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Toowoombaâ&#x20AC;&#x2122;s Joshua Chamberlin should be proud of his achievements.

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PAGE 46

Surat Basin NEWS Thursday 24 June 2010

people in pictures

Local kids take hands on approach School students from across the region donned boilermaker suits, grabbed tools and picked up paintbrushes to try their hand at a number of different trades at the ‘What’s my Trade?’ expo held in Chinchilla this quarter. ‘What’s my Trade?’, run by Gladstone Area Group Apprentices Ltd and supported by QGC, provided a unique hands-on experience for students to try a trade under the guidance of qualified trades people. At the event, participants were able to try a number of trades all of which are in short supply in the region. GAGAL promotions and development officer Cherie Askew said the event allowed students to learn about

future career opportunities while having fun at the same time. “We’ve found that a lot of students don’t know what they want to do when they get to high school,” she said. “By holding this event for younger students, we hope they’ll have an insight into the trades and be able to better their education when they get to high school.

DEVELOPING AND SUPPORTING THE COMMUNITY Providing a FREE CONFIDENTIAL SERVICE Rural Family Support Community Development Rural financial Counsellor Murilla Respite Service

VISITS FROM... Employment Agencies Optometrist & Hearing Services Dietician Legal Service - Video Conference

Child Care Services Youth Worker - The Den Emergency Relief Centrelink Agency Murilla Community Centre Inc Community 73a Murilla Bus Street, Miles Qld 4415 Phone: (07)4627 2027 Fax: (07)4627 2021 E-mail: mccm@bigpond.com

Murilla Community Centre Inc 73a Murilla Street, Miles Qld 4415 Phone: (07)4627 2027 Fax: (07)4627 2021 E-mail: mccm@bigpond.com

The Award Winning Team For all your Real Estate Requirements

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First National Queensland State Awards — Highest Residential Sales —Highest Amount Rural Commission —Silver Award High Achievment Leanne Healy

Peter Etheridge, Greg Pratt, Bruce Booth and Leanne Healy

Surat Basin NEWS Thursday 24 June 2010

PAGE 47

place and faces

QGC goes GLOBAL CHINA Australia’s largest liquefied natural gas contract was signed during the quarter between BG Group and

China National Offshore Oil Corporation. The contract is expected to create $60 billion in export activity and will see BG supply 72 million tonnes of LNG to CNOOC for the next 20

years.The gas will be supplied to China starting 2014 from the Queensland Curtis LNG project, which is under development in Gladstone by BG Group’s subsidiary QGC.

BG Group and CNOOC have also agreed to jointly participate in a consortium to construct two LNG ships in China that will be owned by the consortium.

TOKYO All of the agreements are conditional on Chinese, Queensland and Australian Government approvals and on BG Group making the Final Investment Decision on QCLNG, expected later this year.

Meanwhile, BG Group and Tokyo Gas Co announced an agreement for the supply of Liquefied Natural Gas from its Queensland Curtis LNG facility. The facility is being developed by BG Group’s wholly owned Australian subsidiary QGC. The final agreements will be conditional on BG Group making a Final Investment Decision on QCLNG, expected later this year. QCLNG is expected to produce first LNG by 2014.

The overall agreement sets out the basis upon which the parties will negotiate to conclude terms for * the purchase by Tokyo Gas of 1.2 million tonnes per annum (mtpa) of LNG for 20 years from 2015, to be supplied from the QCLNG facility and from BG Group’s global LNG portfolio * the acquisition by Tokyo Gas of a 1.25 per cent interest in the reserves and resources of certain

Country Petroleum Pty Ltd Fuel supplier for the Surat Basin…

QGC tenements in the Walloons Fairway of the Surat Basin in Queensland * the purchase by Tokyo Gas of a 2.5% equity interest in QCLNG Train 2, the second of two liquefaction trains which will form the first phase of the QGC-operated QCLNG development.

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Surat Basin NEWS Thursday 24 June 2010

TAROOM 7am–8pm * Diesel Only