SBN28AUG2010 by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 26 AUGUST 2010

32 pages $1.00 inc GST

MINING

NO MINING

TAX

That is the question Consulting Engineers Engineering Rural Queensland for over 50 years

CHINCHILLA ROMA TOOWOOMBA

P: 4668 9351

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Dalby FIRST NATIONAL R E A L E S TAT E

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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 -10

pages 15-18 Linc Energy has successfully trialed hydrogen fuel cell technology to produce electricity.The Border Railway Project receives its next tick of approval. Northern Energy compiles draft EIS, while the Wandoan Power Plant works on its feasibility study.

This month Carbon Energy welcomes State Government water "The RSPT (Resource Super Profits Tax) has created testing results. Cougar Energy has also been cleared but has significant uncertainty for the future of mining investment into Australia and would impair the value of previously the damage already been done? The Wandoan Coal project is approved projects and exploration to the point that continued investment can no longer be justified," back on track and line work has started for the coal trains. Xstrata Plc chief executive Mick Davis said after Xstrata announced earlier this month suspending $586 New compliance staff have been employed by the government. million of expenditure.

The Newspaper 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 19-25 pages 26-36

The Vision

Surat Basin Developments is moving full steam ahead with its industrial park.Toowoomba to host the Australian Petroleum Show. Boobook wildlife officers in Roma lend a hand. FK Gardner & Sons win big at construction awards and MJ Helicopters strive forward despite hard year.

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.

Five young trainees given helping hand by QGC. Origin Energy announces scholarship recipients. Kogan property owners still waiting for personal water testing results. Protest groups make noise at State Government’s Community Cabinet, while a further stance was made against QGC earlier this month.

adverters index A1 Group Training......................................9 AJ'S Total Truck Gear ..............................32 Boobook ....................................................31 Border T Border Bioseptic West Pty Ltd ......................................................................32 Brandon & Associates ....................1 & 20 Budden Contractors ..............................31 Chinchilla Crane Hire ............................30 Chinchilla First National Real Estate ..16 Dalby First National Real Estate ............1 Dalby Real Estate & Rentals ..................10 Dalby Fairway Motor Inn ......................28 Downlands College ................................18 Downs Group Training ..........................24 Equifab ........................................................32 F K Gardner & Sons Pty Ltd ................20 Fleming's Welding Service ......................20 Goldskills Consulting ................................7

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

GW Training Plus Pty Ltd ........................7 HB Recruitment ......................................27 Hyder Consulting ....................................29 IOR Petroleum ........................................32 J J Richards & Sons Pty Ltd....................14 Karen Brook Studios ..............................27 Landmark - Dalby ....................................25 Lange Worksafe Services ..........................6 Len Patti Mitsubishi ................................21 Linc ..............................................................36 Looking For Work ........................34 & 35 Loughlin Crane Hire................................18 M I Helicopters ......................................14 M&P Services (Qld) Pty Ltd ....................6 Maguire Coaches And Travel ................10 Miles Engineering ....................................31 Murilla Community Centre Inc ............28 Neil Mansell Transport P/L ....................22

Ostwald Bros. ..........................................23 Ray White Rural Chinchilla ......................4 Rams Home Loans ..................................22 Rob Davidson Water Carting................10 Roma Communications ..........................23 Search 4 Jobs ............................................33 Speciality Services Qld..............................8 Supply Connections Pty Ltd ..................10 Surat Basin Developments ......................5 Surat Basin Homes ....................................7 Surat Basin Real Estate ............................8 TAFE Queensland ....................................42 Taylor Safety Equipment ..........................8 Trades & Services ..........................34 & 35 Waminda Services Ltd ............................27 Western Auger Drilling ..........................23 Wild Desert ..............................................17 Work Wanted ................................34 & 35

Next editions - OCTOBER 21, DECEMBER 16, 2010

Surat Basin NEWS

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

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Farmer editorial @suratbasin.com .au

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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 At the heart sland. 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 missed by n Villa seam gas ’s contrac site ahead townhouses uyers. Chinchilla t in a matter investors. reserves, 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 to our first a tsunami. t that of a “tsuna Frank Chap Sura “We’ve but this seen one’s likeride back with - going to on the Creek and the wave Kogan stop,” he a tsunam arrives the impact created said. 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 towards dollar projects that there are sever- surge in investm cement hadBruce Booth 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.” patch of the impact is going to pale be done. Kogan coal s the Creek of just south is set town by 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.

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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 for fourth weekhas entered the General ping region. Central FERENC the ditions, before the there is still a CON said. commi in Energy of ent, he manager Richardson it a 10-wee THE ssioning region really way to go n Terminal,”project’s propon plans to build k Chinch are taking 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 to havePort Authorvalued at $1.3 next major to becoming Basin well the leadership Making when it facility energy market Queen illa. e rate sland . achieve Austra does and potential alread first, energy here,” the world. co-ordination The The inabl lia’s need for y in place.” Over the hassaid. commissionin s of the stages It he susta to a third, regional hub, therets.” coming 2012. isation of is The Surat three Energy was a the g and and leaders “As s by up bilweeks, ted bywill media projec export will host Basin News coveray Farmer hip.p those an ongoin the GTL plant final- begin to more and more coal up to $1.8 also be comple drillingone’s teLinc ge lish quarterly Chinchilla expand develo “We will be will pubBY John g process realise that people Gladst genera progra,m Basin Railwa ty tocan month and Surat Basin for of its no next has ral for Surat longer boost capaci its the one at shire s Linc six the potenti about the but will tonnes and lly. the Chinch ce but editorial weeks. inaugu next Energy bounda .au all confine ence on 2012, h be illa teneme gs annuaaroundy enhan By ries,” he high quality al to produc or 25 million It will to unite throug by based on suppor grow more frequesix @suratbasin.com drillearnin said. “Wed dinto e very inthree Energy Confer The rigs workin withnumber one export t. willnts,greatl thelsregion diesel weave its nt parallel include comple The long to be merge need will cohesio lion March Innsadditio Island tion in from coal at a low and jet fuel gget with numer term ambiti the our fromdevelo n betwee counci iland August 21-23. site. ial markets. become a six to and n, a one cost “Wiggi expans low Counc the n cabling ous the on years, a the p al point “The provide CO2 ability weekly continual piping ion and commu runs. of Gladst Surat BasinPort same Region publica is for it to aim is to sland’s to 33 potent nities. designed tial of such footprint, the withQueen improv next four Linc Energy 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 ver the $10 billion of of and 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 e invest missioning said the start Richar three-s already uing newsp million while cominga is oneapers, “The to obvious 84 been dson said doing of to open into the the two tohas alone. contin- have we can add up to lic and privat to team with to milestone marked a significcom“We like companies to pour new its more The ty ture needed Surat solutions coalimpres to cope of person business, likely to any mines 20 and powerplays realise the Chinch sive capaci expected future. the companfor shareholders ant essenti commissioning nel with extra of the an import region are the be launchwithin Basin program push illa News “More on than a serious of coal s with popula t in any sustainable is in and each ally runs in y’s team. the acquisi resour ces ed ed in muniti “The GTL engine al a health A myriad es of the ant role in the what stages with sed interes that tion of more unit of the tion growth 150 million Regionthat expres ytseconom Find out comWestern are expect believes ers and sioning ofbeginning of commi GTL tion ing up to of Wiggins won’t change Dalby and coal gasifica Surat y. the Downs and e. pages four Basin. er Anna Bligh projec He believe exportted because Basin beassocia years. Msl“But s- sequenplant commi demonstra- provid tionwill store on liquids Australia’s first fits of aries profess the tone ssioned Premi with the ,” he said. “We at Linc three stages next fives thecounci “Few plant and better spent amalgace. bound coal ionals. thebill. areas — we wanted in to do“Glads Surat money world’s when all forced and five. in Austra il over indeed to Linc experie yearEnergy g the new of ferent the were first will be in aavery have a lot nt, the Counc ment’s that to strike Basin News nce said lia ststo tonnes are set E gasification underground the Johnso Energy chairman such creatin short te.” but tone. a slightl indust an the intere announceme ng has over are comple timethe of her govern Bligh ry, new frame FERENC matio ns nced last year. al in influx past 18 something to diesel facilitycoal facility n said the demon Brian have of major on regional We wanted more y difIsland the with e and Planniprocess months the built aated stration team events and pments,” would bepeople annou andy.econom THE CON focus are is cation was a credit Associ we proud of,” we can all be plate very going said region Infrastructur idable lian economcontem of good issues their develo to ic She investigation board shape he said. would form Moura al very involve of capabi to the dedi- spring base Austra eing tment for contem you generations the Surat that from,” nment to — the and “These lity of said.Depar to oppord. “When Rail link’s govern ment capacity cils overse Basin, those steps we the enviroMr rail upgrade are here for those to come.” Bond ort coal grab the counstarted “One ces that d “This at Linc million to transp have more r infra- she said. cils that can A Brisba $500 period sector, with resour the deman ct of having a acoming impressed cannot to be for Project — Terminal. “Coun but private to delive Rail is a very and h tion to the ne woman’s the plate prospe going by acting ment’s Coal be ldoga excitin l in enoug what our the contrib Linc Energy Govern g time Link-A counci inters 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 y strategies been shareindust is ithally recognised project has t mining ts. will “It is anothe for the coal live p. drough Basin Railwa enough that that Queensland suppor the re ils. develo region prot of plan Surat s 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 sland Gas lianimmin d withou 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. It theisSurat to be constru Infra struc said the gov- seam for Santos team to 50 million tonnes s- cant invest exciting to accelerhas QRC’s said. ents will need ction of ’ of up uninspthe Romahaul routes and news is state econom theyConda gaspropon ate more succes its $170 theLeade The projec coal Planning Action Wome n“(This) with freight their own, but out iring so did mine Power in Queen sland and jobs.” t could line ensure Farmer find million receivand rship Award CQ encouraged ful l Resou rces The compa Station. BY Johnsuratbasin.com.au predict the pages 26 ed 27, (WRA 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 gas-fired stronger jobs, by On moves. editorial@ the electricity age more the Ministtheirwas to work encourmeans 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 making er for in 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. was will become Mr Cottee 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 project viable force crowd of Day breakfast ationa l rocks membe that rs’ nt. 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Surat Basin NEWS Thursday 26 August 2010

in theNews page 5 page 6 page 8 page 9

Cougar Energy- fights back

Wandoan Coal Project - plans expand

New access laws - landholders rights

Advance Western Downs - website

A Federal election, a hung parliament and at time of press, no Prime Minister.

In limbo

The coal and gas and industries, like everyone else, are now in limbo waiting to see who will run t h e c o u n t r y.

“The project is expected to generate more than 5000 direct jobs during construction and more than 700 during operation,” she said.

Under a Labor Government the proposed Minerals Resource Rent Tax is back on the agenda. A coalition win could see the MRRRT abolished with Tony Abbott saying he would “kill” the tax if his party was elected.

“It is estimated QCLNG will generate A$32 billion in value-added activity for Queensland in its first decade to 2021.”

Meanwhile, BG Group and Santos are continuing to work hard ensuring their billion dollar CSG/LNG projects will be given the environmental green light. Under the Rudd/Gillard government, Federal Environment Minster Peter Garrett stalled around $20 billion worth of coal seam gas projects last month.

KEY ELEMENTS OF THE PROPOSED QCLNG PROJECT INVOLVE: •

an expansion of QGC’s exploration and gas production operations in the Surat Basin.

•

a 380km underground pipeline to Gladstone on the central Queensland coast

In response to the decision,AMWU State secretary Andrew Dettmer said the Queensland economy would suffer if the projects were not approved.

•

a liquefaction plant on Curtis Island, near Gladstone, with initial production capacity of 7.4 million tonnes of LNG a year.

"These projects could create thousands of jobs for Queenslanders and to stall them at this late stage will have a serious impact on the region," he said.

•

The groups were asked to clarify their long-term environmental impacts of their projects. They were given until October to do so.

Despite the setback, both BG and Santos have said they still expect to make a final decision by the end of the year.

Meanwhile Santos’ Gladstone Liquefied Natural Gas (GLNG®) is a pioneering project to convert CSG to liquefied natural gas, representing a major investment in a cleaner energy source for the future. The project is led by Santos, in partnership with PETRONAS, Malaysia’s national oil and gas company.Under the State Government, its environmental approval covers: • drilling 2650 wells over 25 years over 6,800sq km in the Surat and Bowen Basins.

Queensland Curtis LNG is seeking approval for annual liquefied natural gas production of 12 million tonnes per annum – enough energy to power every household in metropolitan Brisbane for 15 years.

• 435km of 42” diameter steel pipeline from Fairview gas fields to Gladstone • three LNG train facility on Curtis Island with nominal capacity of 10mtpa • export jetty and materials offloading facility on Curtis Island

BG is the closest out the two with its $20 billion Queensland Curtis LNG project.

•

Establishing the project is QGU Pty Ltd, a BG business group.

a workers camp on Curtis Island to accommodate up to 1500 construction personnel

GLNG has a binding offtake agreement to sell up to three million tonnes of LNG per annum to PETRONAS, which underpins its first LNG train.

The proposed site for the liquefaction plant is expected to occupy less than 1 per cent of Curtis Island and will be separated from any public areas by an environmental protection zone. QGC Managing director Catherine Tanna said the project would have an initial production capacity of 8.5 million tonnes of LNG a year with export sales commencing from 2014, underpinned by agreements with China, Japan, Singapore and Chile.

The QCLNG project investigation area extends from the Surat Basin in southern Queensland to Gladstone and Curtis Island on the State’s central coast.

An artists impression of the QCLNG project.

Surat Basin NEWS Thursday 26 August 2010

The offtake agreement with PETRONAS is Australia’s largest trade agreement with Malaysia. PAGE 3

in the news

super

Kogan Creek Water Tests All Clear

TAX

Carbon Energy has welcomed the Queensland Department of Environment and Resource Management's (DERM) announcement that recent comprehensive testing of water quality in Kogan Creek found no concerns. Carbon Energy's managing director Andrew Dash said the results clearly showed there were no contaminants in Kogan Creek, which should be of comfort to local landowners. "We have consistently stated that there are no surface water emissions from our site that could impact local waterways," he said. "This process demonstrates the importance of obtaining all the facts and not jumping to conclusions based upon supposition or idle speculation. "It should be noted that Carbon Energy undertakes comprehensive and regular testing of water quality, groundwater pressure, well gas composition, micro seismic noise and temperature through monitoring wells around its UCG trial site, and that the company adheres to stringent evaluation of any impact its operations may have on the environment." Mr Dash said Carbon was committed to establishing a cost effective and environmentally sustainable energy business based

on Underground Coal Gasification (UCG). The technology employed by Carbon Energy is based on more than 10 years of scientific research by the CSIRO and represents a step change in how UCG is

conducted anywhere around the world. "Carbon Energy has identified a significant coal resource suitable for UCG in the Kogan area that do not impact on high value farming or useful groundwater," Mr Dash said. "It has the potential to sustain the development of a major energy and industrial processing hub in regional Queensland that can produce electricity, fertilizer for local agricultural applications, industrial explosives for Queensland mines as well as liquid fuels for the local transport industry. "In contrast to many extractive processes whose raw materials are exported overseas, UCG represents a significant opportunity to bring valued added industries and significant employment opportunities to regional Queensland. "Carbon Energy will continue to work with all stakeholders to ensure this important emerging energy resource is made available to local industries and for the benefit of local communities."

Pressure from the resource companies forced Julia Gillard’s Federal Government to rethink its proposed Resource super Profits tax earlier this year. The new policy, known as the ‘minerals resource rent tax’ was revealed by Ms Gillard at the start of last month. Under the MRRT, companies would operate under a tax rate of 22.5 per cent. If re-elected, the Rudd/Gillard Government will focus the resource tax reforms on the countries biggest and most profitable commodities iron ore, coal, oil and gas. These industries represent around three quarters of the value of Australia’s exports and resource operating profits. The chosen industries also represent the vast bulk of growth in the sector over the coming decades. The proposed MRRT has been forecast to generate about $1.5 billion less than the two-year estimates for the RSPT. The improved profits-based taxation reforms would apply from July 1, 2012, if a Rudd/Gillard Government was voted back into power. Under the new proposed tax reform, the current Petroleum Resource Rent Tax regime was extended to all Australian onshore an offshore oil and gas projects including the North West Shelf. This was done to provide certainty for oil and gas projects as well as ensure these projects are treated equitably. At time of print, a decision on who will lead the country had not been made. Opposition leader Tony Abbott has openly stated that he would look to abolish the mining tax if a Coalition Government was elected.

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Surat Basin NEWS Thursday 26 August 2010

in the news

Damage control Cougar Energy is still in damage control trying to correct, incorrect public statements and assertions surrounding alleged threats of toxic contamination to water supplies resulting from its Kingaroy plant. Cougar recently announced it categorically rejects any statement, implication, conjecture or speculation that it has compromised the drinking water quality in the Kingaroy region. Company directors of the underground coal gasification plant have said the two readings analysed by the independent testing laboratory proved to be false and provided incorrect results. These were readings of 84ppb (parts per billion) of benzene attributed to one of the company's monitoring bores in the pilot plant area (200 metres from the gasification process) and 3ppb of toluene (trigger standard 800 ppb) attributed to a distant saline water production bore. The independent testing laboratory engaged by Cougar Energy has confirmed these mistakes in writing to the company and copies of these reports have been passed on to Department Environment and Resource Management, for which DERM has acknowledged and accepted. Safe drinking water conditions were confirmed by the DERM on August 11 and as a result, restrictions have been removed on the use of groundwater bores in a two kilometre radius around the Kingaroy plant. This is the fifth set of results published by DERM from its sampling at Kingaroy carried out during

a period of approximately two weeks since July 15. In the last few weeks the company has conducted up to four sample tests per day. The resultant satisfactory test results are what Cougar Energy expected even under this most rigorous testing regime. The company's test results, supported by the parallel tests undertaken by DERM, confirm the following: Cougar Energy's Kingaroy project has presented • no danger to human health and no danger to drinking water • no danger to livestock, and • no danger to other farming activities Cougar Energy's Kingaroy project has not spread • any poisons, nor • any cancer-causing agents Cougar Energy reaffirms its commitment to best practices in environmental management. Last week, Cougar Energy submitted its environmental evaluation report to DERM for evaluation by the UCG Scientific Expert Panel. This was prior to a decision by DERM as to the future of the company's Kingaroy Pilot Burn.

Exploration and evaluation of Columboola tenement close

MetroCoal

one step closer Australian based coal and energy company MetroCoal Limited, is one step closer to starting a joint venture to explore its Columboola tenement. Last week, China Coal Import and Export Company, a wholly owned subsidiary of China National Coal Group Corp (China Coal), received the second major approval from People's Republic of China. The Ministry of Commerce has formally notified China Coal of their approval to enter into the $30 million joint venture agreement with MetroCoal. Under the terms of the Agreement, CCIEC has acquired a 51% interest in MetroCoal's EPC 1165 Columboola. The $30 million in funds will be used for exploring and evaluating the potential for future commercialisation options within the Columboola tenement. It also opens up the opportunity to participate in MetroCoal's other tenements.

MetroCoal CEO Mike O'Brien said they were very pleased that the approval process for China Coal was progressing positively. "We are now very close to starting the Joint Venture and commencing exploration drilling on EPC 1165, Columboola with China Coal," he said. "The final approval required is from the State Administration of Foreign Exchange and the process is underway." MetroCoal listed on the ASX in December last year and holds extensive coal exploration tenements in the Surat Basin region. They cover about 4000km2 and are down dip of well know resources including Wandoan and Cameby Downs. Meanwhile, MetroCoal has announced drilling at its Norwood project outside Wandoan has identified a coal resource of 156 million tonnes. The deposit is near Metro's Bundi project.

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Surat Basin NEWS Thursday 26 August 2010

PAGE 5

in the news

Full Steam ahead for Xstrata

Shell and Arrow finalise venture 100 per cent of Arrow Energy Limited shares were officially purchased by CS CSG (Australia) Ptd Ltd last week.

BY Teneale Luckraft editorial @suratbasin.com.au

A special ceremony to mark the deal, worth around $3.5 billion, was held at the State Parliament last Thursday. Last month, Shell and PetroChina welcome the decision by the Federal Court of Australia to approve the proposal by CS CSG (Australia) Pty Ltd to purchase 100 per cent of the shares in Arrow Energy Limited (Arrow). CS CSG (Australia) Pty Ltd, the 50/50 joint venture company owned by Shell Energy Holdings Australia Limited and a subsidiary of PetroChina Company Limited, agreed to pay A$4.70 cash per share for all the shares in Arrow. Arrow shareholders voted overwhelmingly in support of the proposal at a meeting in July. Under the scheme, the joint venture owns Arrow's Queensland coal seam gas assets and domestic power business, as well as Shell's Queensland CSG assets and its interests in the LNG project on Curtis Island at Gladstone. Queensland premier Anna Bligh said the deal could see CS GSG (Australia) accelerate the delivery of the proposed Curtis Island facility. Meanwhile Shell's Australian chairman Russell Caplan said the joint venture paved the way for Arrow to grow. It is expected to create more jobs and economic wealth for Queensland and Australia. "Shell and PetroChina bring the LNG expertise and deep access to markets and capital needed for a large-scale, long-life integrated CSG-toLNG project," he said. "This joint venture will become an important growth asset for Shell and help meet growing demand for cleaner energy in Australia and international markets." PetroChina Company Limited vice president Bo Qiliang said PetroChina welcomed the opportunity to invest in Australia. "LNG is an important source of clean energy for China, and PetroChina sees this joint venture as a significant commitment to progressing towards an integrated CSG and LNG business in Queensland."

Last month Xstrata Coal announced it would recommence its $6 billion Wandoan Coal project after the Federal Government changed the proposed mining tax.

he Rudd/Gillard Government is looking to replace the Resource Super Profits Tax with a Mineral Resource Rent Tax.

The revised proposal represents significant progress towards a minerals taxation regime that satisfies the industry's core principles of prospectivity and maintaining international competitiveness. Xstrata Coal chief executive Peter Freyberg said the company had held detailed and constructive discussions with the Federal Government. "We believe there is now an improved, shared understanding as to what drives mining investment decisions and the importance of a stable long term fiscal regime," he said. The proposed Wandoan Coal project was established to investigate the possibility of opening an open-cut thermal coal mine west of the Wandoan township. The proposed mining lease application area covers about 32,000 hectares.

The proposed mine would include: •

An open-cut coal mine, a coal handling and preparation plant and support facilities.

•

Have a construction of period of two to htree years, with start date to be determined once the project receives all necessary approvals.

•

An expected life of more than 30 years, with about

30 million run-of-mine tonnes of coal mined at Wandoan each year. •

Produce thermal coal, which would be crushed, sized and washed.

•

Coal would be transported by rail to port facilities on the Queensland coast and exported around the world, or used here in Australia.

In addition to its major Wandoan Coal project, Xstrata Coal has plans to lodge new mining lease agreements with the State Government. The proposed project will be located in the area west of the current Wandoan Coal project boundaries. In an unconfirmed report, 18 rural properties in the Wandoan area may be affected by the new project. "As part of the development of the Surat Basin coal resources, we remain committed to keeping landholders informed of our intentions to start the planning for additional mining areas," a Xstrata Coal spokesperson has said. "We have contacted and offered to meet with affected landholders regarding the proposed MLA, to help ensure landowners understand our plans and how it may affect them and their property." He said Xstrata Coal Queensland would progress the prefeasibility planning of the next stage of development, once the new MLAs were lodged with the State Government.

Helping to plan for upcoming projects With planning under the Surat Basin Future Directions Statement due to finish in December, the Surat Basin Corporation cannot stress how important it is to support statement directives. SBC president Greg West said these directives were imperative to help plan for upcoming projects. “It will help limit the impact and maximise beneficial outcomes for local communities,” Mr West said. Launched by the State Government in March, the statement provides a framework for a coordinated, region-wide approach to maximise the economic benefits and minimise any unintended consequences of rapid growth. To assist with planning, SBC recently helped facilitate an industrial land workshop.

A regional view on Industrial land requirements is one initiative and the workshop looked at industrial needs across the entire region. Airports and emergency responses are also on the radar with a plan to view a holistic approach to intergrated water and emergency services. “Major projects are now talking between themselves and are including both State and Local Government in their discussions,” Mr West said. “SBC were active early in these discussions and continue to drive towards a regional solution. “This is a very postive outcome for all our local communities. Low cost housing solutions is also an issue

SBC is looking to highlight with affordable housing fast becoming a regional problem. “As rents inevitably rise, people will continue to be displaced. “Rather than see this trend continue wouldn’t it be better to look at scenarios that provide low cost housing solutions to minimize this event occuring?” Meanwhile, the SBC will be holding a water conference in October discussing impacts from the CSG industry. These include recharge zones, bore monitoring techniques and linkages between water sources from the Great Artesian Basin. It will also cover agricultural sector concerns and CSG industry interaction with the CAB. “Understandably this is a very topical and emotional subject.”

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The trains are a coming and QR is getting ready For the past three weeks line work has been conducted throughout the Western Downs region to upgrade the track. A QR spokesperson said the upgrades were to accommodate the coal trains. "Work is currently underway to upgrade the track between Columboola and Fishermanâ&#x20AC;&#x2122;s Island so the corridor can handle longer, heavier coal trains that will run from a new coal mine opening in October,â&#x20AC;? they said. "Work started around three weeks ago and is expected to finish in September.

"There will be no disruptions to regular rail services during this time. QR has also been busy around the Miles area.

"Work recently conducted near Miles was a separate project to build new pipelines for the Queensland Gas Company as part of the Liquid Natural Gas project."

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PAGE 7

in the news

State Parliament pass new laws New landholder access laws were passed through the State Parliament last week. THEY AIM TO: The laws include a new Land Access • clarify the rights of landh Code and set required standards of olders and authority/tenure holders conduct and consultation. • provide more flexibilit They also provide a framework for y and options in resolving disputes negotiated compensation when required. • broaden the jurisdict Natural Resources minister Stephen ion of the Land Court so landholders and Robertson said the new laws were resource companies can have land developed in consultation with access issues dealt within one court stakeholders. • limit the civil liability of "The new laws give landholders more landholders against certain legal action balanced and equal footing when s dealing with resource companies and • allow for legal and som e other introduce a range of new requirements professional costs incurr ed in for companies related to land access negotiating a resolution to be part of and the activities they undertake," he any compensation said. "They provide new conditions about how activities must be undertaken and a high Queensland Resource Council chief level of consistency across Queensland's executive Michael Roche said QRC has always supported land access arrangements various resource laws." built on co-operation trust and high The new laws, contained in the standards of behaviour. Geothermal Energy Bill 2010, boost the 'The minerals and petroleum and gas sectors Government's Land Access Policy have long understood the value of good Framework. relationships with landholders and accepted

the necessity to make good any damage or disruption caused by exploration activities. 'The new laws provide many more checks and balances on resource explorers' legitimate rights to access properties to undertake exploration. 'For all but so-called preliminary (low impact) exploration, there will now need to be a Conduct and Compensation Agreement struck between the explorer and the landholder before exploration can begin." Mr Robinson said a Standard Conduct and Compensation Agreement was being developed to guide landholders and companies when negotiating contracts. It will be publicly available when the new laws come into effect.

Mr Roche said while they supported the concept of these agreements, the new negotiation process must not be used as a means of indefinitely preventing the legitimate access rights of explorers. 'Industry is prepared to roll up its sleeves and work closely with landholders, but the implementation of these new laws will depend on the government having a big presence in the field to answer questions, provide advice and ensure compliance. 'QRC will closely monitor the roll out of these arrangements and seek guarantees from government for a smooth transition over the next 12 months.The government has committed to a review of the entire framework in 12 months' time, which will provide an opportunity to learn from experience."

Have your say Local residents are being urged to have a voice and comment on a draft environmental impact statement for a new Powerlink Queensland project. The project is a proposed Western Downs to Halys 275kV transmission line that will be built to meet the region's strong growth in electricity demand. The new transmission line is expected to be needed by the summer of 2012/13. The line will travel between two future substations; one near Brigalow (Western Downs Substation) and the other at Warra (Halys Substation). Preliminary construction activities on the Western Downs Substation could start late this year. Powerlink COO Simon Bartlett said the draft EIS was one

of the most important steps in the consultation process. "Specialist environmental consultants RPS (formerly Conics) have now prepared the draft environmental report for the proposed project following initial consultation with landowners and stakeholders in the region," he said. "The report details the need for the project and alternatives considered. "It also provides a comprehensive assessment of the potential environmental, social and economic impacts of the project and outlines how any impacts can be mitigated and/or damaged."

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$60 million for better roads SOUTH WEST QUEENSLAND WILL HAVE $60 MILLION INVESTED INTO THE REGION TO BUILD BETTER ROADS ACTING MAIN ROADS MINISTER STIRLING HINCHLIFFE HAS ANNOUNCED.

The announcement was made during the State Government's Community Cabinet held in Roma last month. "One of those important issues is the road network in the South West," Mr Hinchliffe said. "We are also rising to meet the challenges of the coal seam gas industry. "There's a lot more heavy traffic on the roads, particularly on the Warrego Highway. "It's a Federally funded highway and a vital road link, right

in the heart of the Surat Basin." Current work being untaken includes upgrading the highway between Roma and Mitchell. Work has also included $4.6 million to widen and seal sections of the Roma-Taroom Road. Work is expected to be finished on this project late this year depending on weather. Mr Hinchliffe said the project was part of an overall $30 milion investment in the road.

Chambers and councils join forces to advance region With business across the region growing at a rapid rate, the Western Downs Regional Council and the six chambers of commerce have combined in launching the Advance Western Downs initiative. Chambers from Chinchilla, Miles, Dalby,Wandoan,Tara and Jandowae gathered with council to launch the initiative's website www.advancewesterndowns.com in Dalby this month. Western Downs Regional Council major projects and economic development manager Jane Holdsworth said the website was a means for the region to show itself off to the world. "It's a fantastic partnership between the chambers and council," she said. "The website will help show off the

region and certainly support business growth, development and retention." Western Downs Regional Council chief executive officer Phil Berting said factsheets on the major developments throughout the region would be available on the new website. "The website will provide up-todate information on major developments in the region to assist with the numerous business investment and general enquiries received each week," he said. "This is just the beginning," Ms Holdsworth said. "It's all about information and connection, it's critical we can connect our businesses up."

Currently Advance Western Downs consists of profiles of local businesses and chambers as well as a news monitor system, events calendar, business directory and online survey system. The news monitor system aggregates statements from council and various State and Federal government bodies relating to activities in the region.

"It's all about information and connection, it's critical we can connect our businesses up."

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in the news

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Do you have questions

A series of information forums to help answer residents' questions about coal seam gas exploration will be held throughout the region. Organised by the State Government, the forums will be held in Dalby, Miles and Toowoomba. Issues to be discussed include: • • • • •

Protecting water supplies and the environment Preserve quality land Protecting your rights around land access and compensation Strengthening and enforcing legislation Plan for anticipated impacts on the community and infrastructure.

Information booths will be open at each forum between 9am-3pm to hear the latest on what the government is doing.

RSVP is essential. To RSVP please call the CSG/LNG Hotline 13 25 23 Forums will be held at: DALBY Tuesday, August 31 10.30am - 2pm at Dalby RSL MILES Wednesday, September 1 10.30am - 2pm at Miles RSL Memorial Hall TOOWOOMBA Thursday, September 2 10.30am - 2pm at All Season Function Centre

Last month the State Government announced a tougher stance with extra compliance staff employed to monitor the coal seam gas industry. Eight new mining and environmental officers will be based in Roma and Dalby. The officers are: • Mines Registrar, who will be the first point of contact for landholder issues arising from the CSG industry and attend to applications for mining leases and mining claims. • Two support staff helping the Mining Registrar, who will focus on compliance, monitoring and enforcement. • Three DERM environmental officers, who will make regular visits to sites to ensure compliance and conduct independent inspections to assess any environmental impacts. • Two QPWS rangers, who will focus on regulating CSG activities on QPWS land such as forest estate. Natural Resources minister Stephen Robertson and Acting Climate Change and Sustainability minister Annastacia Palaszczuk made the announcements. Mr Robertson said the new squad of officers was what the region needed for a responsible and accountable coal seam gas industry. "Together they form a tougher watchdog for the industry, ensuring that environmental obligations

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are strictly delivered on and approved gas extraction processes are followed by the book," he said. A new mines office will be opened in Dalby, staffed by the Mining Registrar and support staff. "The new Dalby office and existing Roma office will work as a team in the Surat Basin, acting as a first point of contact for landholders, community and companies and assist with liaison with CSG companies as needed." Ms Palaszczuk said in response to the rapid development of the mining sector, DERM had established a team of three environmental officers in Roma.

"A priority for the team is to inspect sites of CSG operations to ensure companies are complying with their environmental operating conditions," she said. "We are also recruiting two new permanent Queensland Parks and Wildlife Service rangers in Roma, who will soon join two rangers already administering approvals in the western region. "An additional ranger to be based in Toowoomba will provide further support." Ms Palaszczuk said the team of rangers would focus on regulating the CSG industry's work on the forest estate managed by QPWS.

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opinions COMMENT Cr Ray Brown

Ray Bown says

Western Downs Regional Council focused on capturing economic prosperity of the Surat Basin. A major issue affecting rural residential estates across the region recently has been a push by the mining sector to have access to this land for seismic purposes and this is generating a great deal of upset.There’s no doubt the effects of this activity on rural residential estate areas is of huge concern and Western Downs Regional Council is aware that rural residential estates would like their areas to be an exclusion zone from this type of activity. Council is not only concerned about the rural residential estates, but also has fears for the future of the Great Artesian Basin in the knowledge that mining operations could draw thousands of megalitres of water per year from this rich water reserve. As well chemicals used in the development and production of gas wells could also contaminate the Basin. Council will continue to monitor this situation very closely in the coming months with discussions occurring with the major energy and mining companies about the Great Artesian Basin. The other big issue highlighted in local and regional media recently has been the alleged contamination in Kogan Creek. State Government tests have come back in the clear with no contaminants reported in the creek system, which is good news. The State Government has assured Council it will continue to keep abreast of the situation and has put in place additional on-the-ground officers in Dalby, Roma and Toowoomba with the support of

the Queensland Water Commission. As well additional staff from the Department of Environment and Resource Management have been mobilised to help monitor wells and keep the checks and balances in place on these companies that are a concern to our residents. The recent Community Cabinet meeting at Roma highlighted that residents of our region are very concerned over the

after the State announced a $115 million project towards the Kogan Power Station as a pre-heater process. Council has also been made aware of an AGL windfarm project at Coopers Gap with some financial decisions on this expected to be made around September. Both these industries are a great boost to our region and indicate that renewable energy is increasingly becoming an

juggernaut pace of the coal seam gas industry and the energy and mining sectors.The Premier and her Cabinet Ministers have taken notice the great depth of knowledge that not only our local residents have, but also the need for data collection and scientific proof behind mining and energy operations coming into our region.The State Government has been working with the Local Government and community through its Sustainable Resource Programs to assist in the delivery of infrastructure for these developments in the region, as long as they provide the finances to deliver these projects. Recently numerous proposals have been presented to Western Downs Regional Council for major solar projects, one of these being $1.5 billion in the Kogan and Chinchilla area.This funding comes

important part of our energy sector.These projects will generate a lot of job opportunities and it certainly will be an interesting time between now and the end of the year, with financial closes occurring with a lot of these operations. On August 11 Western Downs Regional Council brought down its 2010/11 Budget with a 40 per cent increase for industry to cover the social, environmental and financial impacts that the mining and energy sectors are having on the region. These developments are presenting huge costs to Council so we think it is fair and reasonable that the rating increase identified the impact that was occurring across the region and the strain put on our local communities. At present there are at least 36 mining companies in our region and Council believe the impact they are inflicting on our communities far

Bruce Scott says

Mayor, Western Downs Regional Council

exceeds the rates they were paying.This increase on their rating structure will result in the rise of general rates from $4.07 million-a-year to $6.31 million-a-year which is an increase of $2.4 million. Council had the 40 per cent hike in mind well before the Federal Government suggested it because we identified the costings and went further than the obvious things like impact on roads, water and sewerage infrastructure.We considered things such as washdown facilities where company vehicles have to be washed before going to different properties, and with the recent budget announcements of washdown facilities across the region, these facilities alone will cost in the vicinity of $3 million. It is clearly a case that the rates are not covering a lot of these projects and on top of this, the environmental impact studies that Council prepares on behalf of our community each cost in the range of $130,000 to $140,000 and we have up to five of these we’re progressing with at present. I truly believe the energy and mining sectors have got to pay their fair share. This budget when it comes to industry is about the massive impact the operations of these companies are having on our communities and towns. It is a budget that is designed to secure Council’s position as a financially accountable organisation, focused on capturing current economic prosperity for the long-term benefit of the entire region.

A major issue affecting rural residential estates across the region recently has been a push by the mining sector to have access to this land for seismic purposes and this is generating a great deal of upset.

Strong message The recent Federal election result for Labor sent a very strong message to the Rudd-Gillard Government that the mining tax has been rejected by mining communities across Australia. The tax was poorly conceived and poorly received. And the uncertainty the tax has caused both locally and globally has meant Australia’s attractiveness as a place to invest has been harmed and our sovereign risk has increased. Whilst I believe that mining regions deserve their fair share of the benefits gained from mining, the resource rent tax was not the way to do it. And speaking of fair, the election results in Queensland also sent a strong message to the State Labor Government that our food and fibre producers deserve a fair go in protecting their prime agricultural

COMMENT Bruce Scott MP Federal Member for Maranoa

land from the threat of invasive mining practices. Blatant favouritism of the mining industry by the Beattie-Bligh Government has meant that property rights have been sacrificed and our farmers have been treated unfairly. How is it that a farmer or a local council has to apply for a water licence to extract water from our underground aquifers, but a mining company is not subject to the same rules? The time is past due to strengthen the rights of landholders, particularly farmers who rely on the health and preservation of the Great Artesian Basin to produce food and fibre for the nation.

Surat Basin NEWS Thursday 26 August 2010

PAGE 11

opinions

Before we launch into the items that have featured in State Parliament from the Surat Basin, I would like to congratulate David Richardson and the Surat Basin Team on their publishing efforts. The Surat Basin News is going from strength to strength, with the quarterly publication now being published every two months. Congratulations on three years of achievements!!

In Parliament during August the Geothermal Energy Bill which contains changes to the land access provisions to clarify the rights and responsibilities of tenure holders and rural landholders has been passed. PAGE 12

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

Last edition I reported that the LNP Opposition had asked ten Questions on Notice in Parliament relating to assurances and further information about the CSG Industry. These answers and others that have been asked at subsequent Parliamentary Sittings are now available at www.parliament.qld.gov.au/view/legislative Assembly/questionsAnswers.asp. These 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 fraccing process, compliance with the Great Artesian Basin Resource Operation Plan and what action is being taken to mitigate impacts on water bores. I have also asked the Premier in Parliament to support the LNP's policy of fiercely protecting the Great Artesian Basin and to give bipartisan support to our charter of property rights legislation. Regrettably the Premier dismissed the bi partisan approach which could have helped ensure a stronger legislative framework for co existence of our food producers and energy industries. I was however pleased that the State Government has now recognised some of the concerns with the development of the CSG industry. I thank those individuals and groups who took the time to attend the Community Cabinet Meeting in Roma at the end of July. You have all helped pressure the State Government and have made achievements such as the ban on B-TEX fraccing chemicals and changes to the Geothermal Bill. In the Parliament, through Shadow Minister for Mines and Energy, Jeff Seeney MP, a public assurance has been given by the LNP to protect prime

agricultural land and I quote "The LNP will protect the values of prime agricultural land: no ifs, no buts we will do whatever it takes. The LNP will protect the irreplaceable Great Artesian Basin: no ifs, no buts whatever it takes. The LNP will protect the property rights of local landholders: no ifs, no buts - whatever it takes. The LNP will ensure that local communities get the infrastructure they need to cope with the changes and we will ensure they get their share of the rewards to become stronger into the future. We have long been supporters of regional development and champions of rural

â&#x20AC;&#x2DC;

South Wales, accompanying them on inspections and briefings on landholder concerns, the Underground Coal Gasification Linc Energy Plant at Chinchilla and Fairview Gas Field to the north of Injune. In Parliament during August the Geothermal Energy Bill which contains changes to the land access provisions to clarify the rights and responsibilities of tenure holders and rural landholders has been passed. The Government provided 65 pages of amendments to their original Bill and further amendments to their amendments. Copies of this legislation are available from the Office of

â&#x20AC;&#x2DC;

Howard Hobbs says

No ifs or buts - what ever it takes

THE LNP WILL PROTECT THE VALUES OF PRIME AGRICULTURAL LAND: NO IFS, NO BUTS - WE WILL DO WHATEVER IT TAKES. THE LNP WILL PROTECT THE IRREPLACEABLE GREAT ARTESIAN BASIN: NO IFS, NO BUTS - WHATEVER IT TAKES. THE LNP WILL PROTECT THE PROPERTY RIGHTS OF LOCAL LANDHOLDERS: NO IFS, NO BUTS - WHATEVER IT TAKES.

communities and that will never change. These things are not just in our political DNA; they are what makes us what we are." Shadow Minister for Primary Industries, Fisheries and Regional and Rural Queensland Ray Hopper and I have also attended the Friends of the Earth parliamentary protest on Wednesday, August 4 in Brisbane. I wish to refute a comment which was contained in the Friends of the Earth correspondence to the LNP where in they state that the LNP has no leadership on the issue of coal mining on farmland. I personally wrote to Friends of the Earth in June providing them with a copy of the LNP's Prime Agricultural Land Policy - obviously they are not intent on fixing the problem and are more interested in running a publicity campaign than effectively representing the affected constituency. I am also hosting a group of farmers and Members of Parliament from New

Surat Basin NEWS Thursday 26 August 2010

Parliamentary Counsel website www.legislation.qld.gov.au. Alternatively contact my Roma Ph 1800 814 479 or St George Ph 1800 625 430 Electorate Offices and a copy will be emailed or posted as required.

There is no shortage of information on CSG and legislative changes occurring in the Industry. To help keep interested parties abreast of the changes I regularly email information out on what has happened during Parliamentary Sitting weeks. If you would like to join this email group please contact my Roma Electorate Office Ph 1800 814 479.

opinions

Face the challenges staring us in the face The scientific dismissal of water quality concerns surrounding two underground coal gasification (UCG) pilot plants in southern Queensland reminds us of how important it is for cool heads to prevail in assessing the performance of any industry - old or new.

Michael Roche says

There's nothing easier than banning innovation 'on suspicion', but in the case of a technology with the potential to produce essential products including fertilisers, liquid fuels and gas-fired electricity with minimal impact on the environment, factual evidence must win the day. Once environmental evaluations of the three pilot projects ordered by the Department of Environment and Resource Management are completed, industry will be looking to the State Government to re-commit to its 2009 policy of using independent scientific evaluation of the completed pilots to determine the future of the technology in Queensland. UCG is being pursued in countries including Canada, USA, New Zealand, China, Brazil, UK, Spain, Japan and India, so there is worldwide interest in how the Queensland Government handles the determination of the future of the technology in this State. The QRC is in a unique position in the ongoing energy debate, as our members include some of the State's largest energy producers and some of its largest energy consumers. Among producers are the operators of coal and gas-fired power stations, coal seam gas producers and the developers of emerging technologies including underground coal gasification, oil shale and coal to liquids fuel processing. Among the users are miners and minerals processors whose products are worth almost $50 billion a year to the economy. It is clear that a suite of renewable and non-renewable energy sources will be required to meet our significant future domestic and global energy requirements and to lower greenhouse gas emissions. Research and forecasting by organisations including the International Energy Agency and CSIRO has agreed that fossil fuels will continue to play a major role in energy production for decades to come. Over the next 20 years, global electricity demand is forecast to more than double with the large bulk of that growth occurring in non-OECD countries. This is not surprising as an estimated 1.6

billion people still do not have access to electricity and that figure also reflects the numbers living in abject poverty. The IEA estimates that by 2030, coal will still account for 30 per cent of global energy demand. It is a simple reality that coal is the most abundant fuel on earth and in terms of its affordability and reliability, it will prevail in countries such as China and India, which have considerably larger coal resources than Australia. All Queensland industries have a significant interest in energy policy. From an exporter's viewpoint, reliable and affordable energy is an important source of competitive advantage. With the vast majority of rural and resource exporters price takers, keeping a lid on domestic costs is critical.

In pursuit of reducing greenhouse gas emissions, the QRC believes three policy landings are essential: â&#x20AC;˘ A global agreement for greenhouse gas emission abatement that includes reduction commitments from all major emitting nations. â&#x20AC;˘ Market-based policy measures that promote the abatement of greenhouse gas emissions at the lowest cost, while minimising adverse social and economic impacts, including the competitiveness of export industries. â&#x20AC;˘ Substantial new government and industry investment in a broad range of low carbon technologies and adaptation measures.

COMMENT Michael Roche Chief Executive Queensland Resources Council

Less than five years from now, Australia's annual import bill for liquid fuels is forecast to be around $30 billion a year, more than double the current level. On today's figures, that's equivalent to removing the entire value of Australia's rural exports from the balance of payments ledger. The lack of urgency attached to this outlook is a luxury we can't afford, as indeed liquid fuels may be a luxury we can't continue to import let alone afford in five years. I make this point in the political context of 'Queensland's Energy Supermarket'. For starters, Queensland has at least two centuries worth of coal and gas reserves along with an estimated 135 million pounds of uranium in the ground. Added to that there are demonstrated oil shale resources of 36.7 billion barrels more than Nigeria's conventional oil reserves, the tenth largest in the world. However, the politics to date of managing this endowment are far from reassuring. In 2007, Queensland's refusal to adopt Federal Labor's pro-uranium mining policy resulted in South Australia's Labor Government happily approving new uranium mines.

Surat Basin NEWS Thursday 26 August 2010

The following year, the government sterilised a Bass Strait-sized shale oil resource in north Queensland with a 20year moratorium on any development. Remember that this is against the backdrop in 2015 of an annual hit to our balance of payments of $30 billion a year for liquid fuels with no sign on the horizon of a train, truck or tractor that runs on batteries. It's in the national interest to set about improving that outlook and we could start by getting over the notion that it is either beyond our capabilities or not our responsibility to foster and develop new energy technologies. New technologies must proceed carefully in order to manage inevitable setbacks and hurdles, but that should not mean just pulling down the shutters and waiting for the inevitable energy crisis ahead.

We a re a r i c h n a t i o n b l e s s e d w i t h a we a l t h o f n a t u r a l re s o u rc e s b u t i t ap p e a r s i n c re a s i n g l y p re p a re d t o s a c r i f i c e energy security on the a l t a r o f s h o r t - t e r m g re e n politics rather than face u p t o t h e c h a l l e n ge s a n d opportunities staring us in the face.

PAGE 13

opinions No ifs or buts ...

Facing the challenges

Water fears remain

Miners votes are counting

Howard Hobbs, MP

Michael Roche, QRC

Ray Brown, Mayor

Bruce Scott, Federal Member Maranoa

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 Once again the resource industry is looking at a very different picture to the one that was faced in the June edition of the Surat Basin News. The biggest decision still pending is of course the election. With a hung parliament the country is still waiting to hear who our leader will be. This historic event has not occurred in Australia since WWII. So many factors came into play this election the resource industry one of the major ones. Oil and gas companies are now eagerly awaiting this outcome with the mining tax still very much on the agenda. Federal Environment Minster under the Rudd/Gillard government Peter Garrett stalled BG Group and Santos’ major LNG projects in June. This decision combined with the Federal election has created a major setback for the company’s final decision dates. The decision has also created a flow-on-effect into regional communities with what if questions starting to emmerge. Within the Surat Basin region, both CSG and UCG companies have come under fire. UCG player Cougar Energy is still trying to clean up the mess false water testing results have made, while Carbon Energy was also clearing its name after a contamination scare in Kogan Creek. After extensive testing by the Department of Environment, Resource Management both UCG companies were cleared of any wrong doing. Alliance groups have also started gaining considerable momentum during the past two months taking to protests to ensure their message is getting through. Queensland Premier Anna Bligh and her team was greeted with angry protesters at her Community Cabinet in Roma, while CSG company QGC was blocked from starting seismic surveying work along Wieambilla Road by a group of angry protesters from groups including the Western Downs Alliance Group and Friends of the Earth. It appears landowner concerns are being heard with the State Government announcing on Monday new high-level consultative committees that have been formed to progress CSGrelated issues. A Surat Basin CSG Consultative Committee will be formed as well as two local district committees for Dalby and Roma. State Resource minister Stephen Robertson was in Injune on Tuesday to attend the first of seven CSG community information forums being held throughout the region. Mr Robertson will role out further forums in Roma,Wandoan, Dalby, Miles,Toowoomba and Chinchilla between now and September 9. This is a great chance for all community members to discuss first hand with the minister their concerns and worries .

PAGE 14

LNG industry — hot topic I know there is a lot of concern in the Surat Basin about the liquefied natural gas industry and my government has been listening. Last month my cabinet ministers and I held a community meeting in Roma where we sat down with locals. Understandably, the LNG industry was a hot topic. And as you read this article the listening continues. We are half way through a series of LNG information forums being held across the region in August and September. These forums are an opportunity for residents to hear first hand from Government officers involved in developing LNG policy, to share their views and offer ideas. So far, forums have been held in Injune (24 August), Roma (25 August), and Wandoan (26 August). Next will be Dalby (31 August), Miles (1 September) and Toowoomba (2

September) and Chinchilla (9 September). These face-to-face meetings are giving my government a clear understanding of the views of locals. They are aware this new industry presents an extraordinary opportunity for their communities to grow and prosper. However, it must be at a pace that can be managed and must not interfere with their ability to continue as thriving primary producers. From day one our government has said we are firmly behind the development of this new export industry - but we need to get the balance right. That is why we have spent so much time, effort and work on developing

COMMENT Anna Bligh Premier of Queensland

entirely new regulatory frameworks.We believe the impacts can be managed. For instance, new legislation strengthens landholders' rights in relation to land access, compensation and the conduct of companies involved in exploration and development activities. We've also banned B-TEX chemicals from use in Coal Seam Gas or fraccing operations. And we've announced an additional 11 environmental officers to focus solely on the CSG industry. These are absolutely critical issues for Queensland and we will make better decisions in relation to them because we have sat down and talked personally to those people who will be affected by them.

T H E S E F O R U M S A R E A N O P P O RT U N I T Y F O R R E S I D E N T S TO H E A R F I R S T H A N D F RO M G O V E R N M E N T O F F I C E R S I N V O LV E D I N D E V E L O P I N G L N G P O L I C Y, T O S H A R E T H E I R V I E W S A N D O F F E R I D E A S .

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down tobusiness page16 page17 page18 page18

Railway - Border Railway Project

Power update- Wandoan Power Plant

Northern Energy - plans progress

State Government - BTEX ban

Linc Energy's world first LINC ENERGY TO G E T H E R W I T H A F C E N E R G Y H AV E S U C C E S S F U L LY T R I A L E D H Y D RO G E N FUEL CELL T E C H N O L O G Y TO P RO D U C E E L E C T R I C I T Y AT L I N C ENERGY'S CHINCHILLA D E M O N S T R AT I O N FACILITY IN Q U E E N S L A N D.

Linc Energy's CEO Peter Bond said his company's exclusive agreement with UK-based AFC Energy for application with UCG and the delivery of an Alpha Unit Hydrogen Fuel Cell to the Chinchilla facility had been completed. "This is a major innovation and the first time that a hydrogen fuel cell has been successfully trialed with UCG," said Bond. "It represents a huge step towards the worldwide opportunity of combining UCG and alkaline fuels cells as a breakthrough technology for creating the cleanest possible power generation from coal." Initial testing with the hydrogen fuel cell unit at Linc Energy's Chinchilla Demonstration Facility was performed following successful trials at AFC UK facilities of mock syngas of comparative composition to that generated at the Linc Energy facility.

The trial demonstrated the successful ability to generate clean electricity from alkaline hydrogen fuel cell technology from syngas derived from UCG operations. "What is so remarkable about this trial is that the fuel cell configuration was able to produce reliable and efficient clean electricity from a much lower percentage hydrogen content gas than other fuel cells require," said Bond.

"This effectively demonstrates that combining the AFC Fuel Cell technology with hydrogen from Linc Energy's syngas produced from the world-class UCG at Chinchilla is a feasible route to achieve the ultimate in clean electricity from stranded, sub-economic coal, of which there is an abundance in the world." Surat Basin NEWS Thursday 26 August 2010

"This will unlock energy resources and provide energy security to nations in an environmentally sustainable and proficient manner." "When combined with our world-class Gas to Liquids (GTL) operations and utilising the purified hydrogen as part of the synthesis gas clean-up processes in commercial operations, the hydrogen fuel cell is expected to produce even better results," said Bond. Further trials will be carried out with the fuel cell system in the coming months however the promising results from this trial has enhanced AFC Energy's development of the next generation of hydrogen fuel cells for a commercial application, which Linc Energy aims to install at its Chinchilla Demonstration Facility. PAGE 15

down to business The Border Railway Project has been given Major Project Facilitation status in recognition of its potential as a

Nationally significant piece of infrasture The Border Railway Project has been given Major Project Facilitation status in recognition of its potential as a nationally significant piece of infrastructure. Federal Infrastructure minister Anthony Albanese granted the status last month. The project is being advanced by the Australian Transport and Energy Corridor Ltd and is worth $1 billion. It will lay some 340 kilometers of standard gauge rail track, linking Moree to a newly constructed intermodal

facility in Charlton, near Toowoomba. It will service the coal projects in the region. In the longer term, the proponents of this project envisages extending the line beyond Toowoomba. If given the final go ahead, the project is expected to deliver significant benefits to regional communities as well as the broader national economy. These include: • more efficient transport connections

•

improved access for local coal miners and agricultural producers to domestic and overseas markets • less congestion on the existing coastal rail line • extra major freight terminals in regional Australia ATEC is expecting to start construction on the Border Railway Project in late 2012 with the project due for completion in 2014. Meanwhile, the Surat Basin Rail Joint Venture is moving full steam ahead with

Xstrata Coal Queensland lifting its suspension of work at its Wandoan Coal Project. The SBR Joint Venture comprises of ATEC, XCQ and Queensland Rail. It is investing the feasibility and bankability of developing a 210km open-access, multi-use rail link between Wandoan and Banana in Queensland. This is expected to unlock about four billion tonnes of coal reserves in the Surat Basin.

New work opportunities in the Surat Basin A new work placement project will provide employees in the Surat Basin with an opportunity to achieve two things at once. Access to an untapped talent pool and providing people with an opportunity to excel. Known as the Surat Basin Work Placement Project, the project aims to provide university and TAFE students, who have a disability and are nearing completion of their qualification, with a platform to get real life exposure to the gas, mining and energy sector. The project is expected to run between October 18 to October 22. According to reports in various Surat Basin publications, skills shortages continue with particular demand for those individuals who hold higher qualifications. National Disability Coordination Officer Region 20 Debbie Rooskov decided something could be implemented to bridge

the gap between student and the resource company. Mrs Rooskov, along with her colleague, has successfully completed a project giving away four laptop computers to students with disabilities.

For more information visit www.ndco.stepscs.net.au or call Mrs Nixon on 0428 713 606.

"Thus the Surat Basin Work Placement Project was formed." Project co-ordinator Nancy Nixon has been appointed to help drive the project and is excited about the upcoming challenge.

" T H E S U R AT B A S I N I S A T H R I V I N G C O M M U N I T Y A N D T H E M O R E E M P L OY M E N T O P P O RT U N T I E S W E CAN SHOW THESE STUDENTS, THE BETTER." They were amazed at the qualifications that these students where studying. "The vast majority where studying at undergraduate level and included qualifications such as geology, engineering and environmental science," Mrs Rooskov said.

"I'm excited about the region having this chance to show others just what can be done when you put your mind to it," Mrs Nixon said. "We all started somewhere, initially we all had someone take a chance on us." NDCO plans to match participants with

companies based on their qualifications. "NDCO realises that most companies have limited time resources and therefore we have designed the project where the contribution of employers is limited to providing an employee to act as a member of the three-day work placement. "I would love to get more companies involved in the work placement and I would encourage any resource company or a member of the supply chain to contact me. "The Surat Basin is a thriving community and the more employment opportunties we can show these students, the better." The project is funded in its entirety by the Department of Education, Employment and Workplace Relations.

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Surat Basin NEWS Thursday 26 August 2010

down to business

Wandoan Power Project receives funding

New appointment Kay Gardiner has been appointed the Queensland Gas Commissioner; her job to monitor and guide the development of the State's gas market in relation to the liquefied natural gas industry. Ms Gardiner brings to the position a depth of experience in strategic gas industry policy, market development and regulation. She will provide vision and play a key role in the Government's development of strategies and reforms to drive the development of the State's gas market. The commissioner will also become the single point of contact for ongoing dialogue between government and industry stakeholders. in relation to gas supply, pricing and the potential reservation of prospective gas resources for domestic markets. Natural Resources Minister Stephen Robinson said Ms Gardiner would also be involved in developing national and Queensland policy, legislation and regulation for gas market development, supply and distribution, and a short-term trading market framework. Ms Gardiner is currently Senior Director Demand, Efficiency and Substitution with the Queensland Water Commission.

The Wandoan Power Project has received funding to progress the project to its feasibility study stage. Late, last year, it was also shortlisted for the next stage of the Federal Government's Carbon Capture and Storage Flagship Program. The proposed project is a 400MW power station that uses Integrated Gasification Combined Cycle with carbon capture and storage technologies. It will be one of the cleanest coal fired power generation facilities in the world and an important industrial scale demonstration of cleaner coal technology integrated with carbon capture and sequestration. The project is being developed by the Wandoan Power Consortium, which comprises Stanwell and global energy company GE Energy. The Wandoan Power Consortium is working in co-operation with Xstrata Coal to develop the proposed project's long-term coal supply and CO2 storage (sequestration) solutions. Wandoan Power Consortium commercial director Phil Solomon said

the Federal Government's support for the Wandoan IGCC project was encouraging. "It demonstrates Australia's leadership in this industry and its full commitment towards a lower carbon future and a sustainable future for coal, Australia's number one export," he said.

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PAGE 17

down to business

Good report for Wandoan coal assessment Northern Energy Corporation Limited's Elimatta Project is in its pre-feasibility stage with its draft environmental impact statement now in the making.

The proposed open cut coal mine project is about 35 kilometres west of the Wandoan township and has been confirmed as a large resource of low ash, high volatile thermal coal. Since completion of Northern Energy's initial mine assessment in December 2008 further evaluation of the Elimatta deposit has continued. A detailed life of mine plan has been developed for the deposit, incorporating the results of surface hydrology and geotechnical studies completed in late 2008. A reconfiguration of the mine layout and mining direction followed redesign and

The State Government announced the proposed ban last month, for the compounds commonly referred to as B-TEX. Fraccing involves pumping fluid at high pressure into a coal seam to fracture the seam and allow gas to flow readily into gas wells. Natural Resources minister Stephen Robertson said their number one priority was the health and safety of the community and environment. "We want to make sure we strike the right balance between environmental sustainability and economic growth," he said.

two stage coal processing plant. A nominal five million tonnes of product coal per annum will be produced over a 20 plus year mine life.

Resource Management to refuse any application for new coal seam gas activities that involve the use of B-TEX chemicals to fracture the coal seam. The government will also move to amend the Environmental Protection Act 1994 to include a provision that 'deems' a new condition on all existing coal seam gas environmental authorities. "In Queensland, fraccing fluids are commonly 99 per cent sand and water. "Around 1% is made up of additives, typically widely used chemicals including sodium hypochlorite, hydrochloric acid (both used in swimming pools), cellulose (used to make paper), acetic acid (the active part of vinegar) and small amounts of disinfectants. "It is estimated that since 2000, around 5% of coal seam gas drilled in Queensland have been fracced, although this proportion is expected to

increase as CSG production increases," Mr Robertson said. Mr Robertson said he was writing to all companies involved in CSG extraction to advise them of the new regulations and his expectation that the current non-use of B-TEX chemicals would continue until such times a new legislation was in place. "Queensland has a rigorous mining approvals and Environmental Authority process but to ensure this process, continues to address new questions that may be raised by changes within industry technology, government must adapt to these processes." CSG companies are required by law to provide daily bore logs to the Department of Employment, Economic Development and Innovation.DEEDI has requested operators to provide it with the results of any fraccing and CSG water ponds sampled to date.

Proposed bans Petroleum compounds containing benzene, toluene, ethylbenzene and xylenes could be banned from use in coal seam gas operations or fraccing.

retiming of the proposed diversion of Horse Creek following completion of the hydrological studies. As a result, the mine commences in lower strip ratio areas which reduces the area required for external overburden dumps. These changes have enabled a higher rate of production than assumed in the previous mine plan. The combination of these factors and the relaxation of the previously applied 5:1 strip ratio cut off has resulted in a larger total mine production and increase in reserves. The Elimatta open cut mine plan is based on an excavator and truck mining operation feeding a 1100 tph,

"I have already sought and received assurances from industry that these chemicals are not currently being used. "But further to that, to ensure the protection of the community and the environment is our commitment to legislate to ban them from ever being used in Queensland. "The message is very clear - no one is allowed to use these chemicals in the extraction of CSG." The Government will use the existing head of power in the Environmental Protection Act 1994 to require the Department of Environment and

The 5Mtpa mine plan extracts approximately 170Mt of the total Elimatta Resource. A Mining Lease Application (MLA 50524) has been lodged over Elimatta EPC 650 and the company is awaiting establishment of formal Terms of Reference for a supporting Environmental Impact Statement which will be completed this year. Final feasibility studies for mining, wash plant and supporting infrastructure are underway. First shipment is scheduled for mid-2013.

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building theBasin page 20 page 21 page22 page23 Boobook - wildlife specialists

Triumphant - FK Gardner & Sons

Conference - Toowoomba gets show

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Demand high for Chinchilla’s new Industrial Park BY Teneale Luckraft editorial @suratbasin.com.au

Operational works approval for Stage 1 of Surat Basin Industrial Park is imminent. With development approval now granted, the lights will soon be switched on at the Surat Basin Industrial Estate.

With engineering and tender processing being finalised, Stage 1 of the estate is due to start civil construction within the coming months. Completion date is expected to be March 2011. Located on Auburn Road on the outskirts of Chinchilla, the estate is designed for medium to heavy industry with a total of 27 lots ranging from 4000sqm to 1.16 hectares. Expressions of Interest have been received for approximately half of the available lots and contracts will be finalised in the next few weeks.

Surat Basin Developments director Warren Daniells said it was the only genuine heavy industry estate built between Toowoomba and Roma.

“The 52 acre estate has been designed to suit heavy industr y with e x t r a w i de road re se r ves a n d a n u p g r a d e d p owe r supply fo r larger operations,” he said.

individual blocks during the Estate’s construction phase.This will effectively reduce the times usually associated with the approval process and will enable building works to commence on the issuing of clear titles. Surat Basin Developments will assist landlords, tenants and owner occupiers alike in achieving their building requirements. Another exciting development for the park was the approval of street names.This is keeping within council’s policy of using names of long term local residents.

Located on Auburn Road on the outskirts of Chinchilla, the estate is designed for medium to heavy industry with a total of 27 lots ranging from 4000sqm to 1.16 hectares.

The estate will have high speed data cable installed and has approval for 24/7 operation.

All blocks will be supplied with gravel hardstand and the entire estate will have an extra wide 30m road reserve. Town water and sewerage will also be installed.

“It’s been designed for and will be delivered with attributes to suit the largest of industry players.” The industrial park is strategically positioned to service the booming Surat Basin energy province and is within an hour of 80 per cent of the major projects. “These projects are reputedly worth $160 billion.” Mr Daniells said the Western Downs Regional Council would allow Development Applications to be lodged for

The main street into the estate will be named Osborne Street, after the developers great grandparents. The second street that connects to this to the main service road will be Dwyer Court. This is the surname of the adjoining neighbours to the property. With such a positive response to Stage 1 of the estate, plans to build Stage 2 are firmly cemented in the pipeline.

Surat Basin NEWS Thursday 26 August 2010

Stage 2 will be 84 acres in size. “Stage 2 is before the WDRC awaiting development approval.”

SBD is also undertaking the commercial redevelopment of a BP site along the Warrego Highway in Chinchilla.This will include a service station and fast food restaurants.

The redevelopment of the Tattersall’s Hotel is also in the advanced planning stages.

[

The industrial park is strategically positioned to service the booming Surat Basin energy province and is within an hour of 80 per cent of the major projects. PAGE 19

building the basin Wildlife experts on hand to help

Community forums to explain changes

The hollow of an old dead tree is like a five star resort to many native Australian animals such as the Little Pied Bat and Feathertail Glider according to Boobook's Principal Ecologist Craig Eddie.

Western Downs Regional Council has taken its budget on the road, hosting information sessions throughout the region this week.

When clearing land for gas wells and pipelines, companies like Santos, recognise the importance of minimising their impact on fauna habitat, making every effort to avoid harming any wildlife. Santos' Environmental Advisor,Tony Rutter said there were a variety of rare animal species living in Santos' gas field, such as the Yakka Skink and the Golden-tailed Gecko. In sensitive areas Boobook wildlife experts are on hand to advise machinery drivers of the native animals, rare plants and weeds likely to be present as well as to flag areas to be left intact or undisturbed. Trained Boobook staff also remove and relocate any native animals that may be present in felled trees, including those with sharp teeth and long claws, with minimal disruption to project activity. "This is the final step in a detailed process aimed at minimising impacts on native wildlife and their habitat.” Mr Rutter said. "It's important when planning developments we know if these species are likely to exist in or near our proposed sites so we can minimise or

Craig Eddie explaining his relocation plans to a goanna on the Santos gas fields.

avoid impacts to their populations. "Prior to clearing we engage companies like Boobook to review and ground truth vegetation data, identify plants and conduct fauna searches in proposed construction areas. “Boobook produces an environmental report and with their assistance our company identifies potential impacts and determines any required mitigation measures.” In assisting with project development and planning, Boobook is able to support intensive developments throughout the ecologically diverse region of the Surat Basin.

The Community Connect Forums provide residents with an opportunity to discuss the council's 2010/11 budget.

"Our water wise team was there to show resident how to manage water usage in order to lower water charges.

Information related to minimal water usage as well as recycling are being discussed.

"And our environment and health team will share information about recycling and how individual efforts contribute to the overall improvement of the environment."

Mayor Ray Brown said the forums provided valuable information to local residents. "Our Community Connect Forums, were an opportunity for resident to receive valuable information about the changes to services and charges resulting from this year's budget," he said. "The forums provided a relaxed and informal atmosphere where members of the public could talk directly with councillors and staff about the key issues of rating parity, water and waste recycling.

Earlier this week, forums were held in Jandowae, Dalby, Chinchilla and Tara.

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building the basin Construction crew scoop awards pool force to develop our safety procedures to ensure we continually improve in this area."

FK Gardner & Sons has won seven awards at the 2010 Downs and Western Housing and Construction Awards. The awards were held in Toowoomba last month.

"Achieving these prestigious awards cements FKG's Managing Director Gary Gardner reputation as a leader in acknowledged the fantastic civil construction and having The awarding winning team at FK Gardner & Sons. existing relationships with achievement for the entire team. that FKG will continue to be a market many mining companies in the area. leader and deliver the exceptional results "They have every reason to be confident "In what can only be described as a touch our clients have come to expect from us,â&#x20AC;? in the future of the region." economic climate, our team members Mr Gardner said. have excelled in their chosen field," he Awards taken out were said. A key value for FKG's business is the

This is to ensure the groups long term strategy for its staff. "It is only through continual up skilling

The Maranoa Regional Council's community services department focus has turned to developing a plan that documents the region's vision for the next 10 years.

FKG is already very active within the Surat Basin and have an optimistic view of the future.

The company has a reputation for being a market leader when it comes to the construction of quality projects.

Mr Gardner said FKG recognised the importance of continually developing its team and have individual training plans and professional development programs across the group.

Maranoa 10-year plan

health and safety of their people and the public. "The safety of our team and the general public is paramount in our business and to win the Innovation in Workplace Health and Safety Award two years running is a great achievement.â&#x20AC;? "Our daily mission of No Injuries to Anyone will continue to be our driving

1.Women in Construction 2.Apprentice of the Year 3.Apprentice Employer of the Year 4.Rising Star of the Year 5.Innovation in Workplace Health and Safety (second year running) 6.Civil Contractor of the Year (second year running) 7.Industrial Facilities up to $4 million

The community plan will look at the future Mayor Robert development of Loughnan resources and facilities to enhance community life in the Maranoa. Twelve key themes have been outlined including housing, environment, children and youth, health, arts and culture, education and training, community facilities and infrastructure, business development, telecommunications and tourism. Mayor Robert Loughnan said the plan would give council, industry and other government agencies the information we need to ensure future decisions and resource allocations are aligned with the community's common vision and needs.

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Housing Minister Karen Struthers with Maranoa Regional Council CEO Stuart Randle said the centre would benefit the region.

Roma will become the site of the Queensland Government's Rural Housing Service Centre pilot.

Ms Struthers said the centre represented a new future in affordable accommodation for the Maranoa region.

The announcement was made by Housing Minister Karen Struthers last month at the Community Cabinet held in Roma.

"Here in Roma, I've been talking with locals and a hearing a lot about a range of issues," she said.

The $2.5 million project is scheduled to start in February, with Maranoa Regional Council leasing around 140 properties from the State Government and managing them through Queensland's first Rural Housing Service Centre.

"One of those issues is housing affordability and making sure people who are doing it tough and local workers have a safe and secure place to live. "Under the project we're launching today, we'll be working with the local council

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to improve services for tenants, build capacity for housing and better use existing social housing stock to provide better outcomes for locals." Ms Struthers said if the pilot was successful in Roma, they might roll it out in other parts of Queensland. Maranoa Regional Council will reinvest an estimated annual rent surplus of almost $1 million from the project into social and affordable housing to provide accommodation for locals doing it tough and key workers employed in the region.

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PAGE 21

building the basin

A1 training all of the time

Toowoomba to host 2011 Australian Petroleum Show With less than 12 months left until opening day, planning is now in its final stages for next years Australian Petroleum Show. The two-day conference will be held at Toowoomba's Empire Theatre on August 17-18, with a trade show to follow at the Toowoomba Showgrounds on August 19. Convenor Maree Petty said they were expecting delegates from around the world. "We are aiming for 400-600 delegates from Australia, Canada, America and South East Asia," she said. "This conference will be very technical with a trade show to showcase the large equipment. "While no new announcements or projects will be announced, employment opportunities will be available. "Community groups including the service clubs, school and

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.

universities will also be involved." During the first two days presentations will include Australia's CSG Industry Future Strategy, Chemicals in the Environment, Advancing CSG drilling towards better environment performance, sustainability and biofouling.

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.

Tours will also be held along with the trade show on the final day, with coaches leaving the showground's regularly to show participants local industry and investment opportunities.

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.

These will include the Charlton Wellcamp Enterprise Area.

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

The Australian Petroleum Show has been organised by Health Safety Environment Plus. For more information contact Ms Petty on 3277 5305.

minimise disruption to the workplace. 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.

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Kymco ride day on now Vanderfield in Chinchilla has opened its doors for a special Kymco UXV Ride Day this week. The ride day will be held tomorrow at the store located at the Warrego Highway. Vanderfieldâ&#x20AC;&#x2122;s in Roma held its ride day yesterday. Chinchilla branch manager Peter Fraser said he was excited to be part of the Kymco team. â&#x20AC;&#x153;After a lot of research we

decided on becoming a Kymco dealer for its undeniable quality,â&#x20AC;? he said. â&#x20AC;&#x153;Vanderfield pride themselves on good, clean, honest machinery and I believe Kymco fits this mould.â&#x20AC;? The day will start at 12pm and will include rides on the full range of ATVâ&#x20AC;&#x2122;s as well as the UXV 500. In July Kymco celebrated its first birthday in the ATV market.

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Vanderfeld Chinchilla branch manager Peter Fraser.

Kymcoâ&#x20AC;&#x2122;s philsophy of â&#x20AC;&#x2DC;simplicity in design - with the correct featuresâ&#x20AC;&#x2122; means easier maintenance and lower costs.

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Surat Basin NEWS Thursday 26 August 2010

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building the basin

Aerial operations go quiet It has been a tough two years for aviation operators in Australia. Industry uncertainty created by the global financial crisis has lead to a general reduction in aerial operations.

Despite these tr ying times MI Helicopters has mana g ed to e xpand its business. They have recently secured a contract with Santos to supply a helicopter for it's 'Fairview' CSG field located north of Roma. To service this contract, MI Helicopters has purchased a second Bell Jetranger which will be based permanently at 'Fairview' and has employed two additional pilots to crew the aircraft.

As the coal seam gas industry expands in eastern Queensland, MI Helicopters is well positioned to take advantage of this industry growth. Another recent acquisition by MI Helicopters is a permanent hangar facility at the Roma Airport. This will permit the relocation of company aircraft which reduces the cost to the customer by eliminating the need to ferry the aircraft long distances to the work area. MI Helicopters is looking forward to playing a major role in the future of aviation in Eastern Queensland and beyond.

Should you require a helicopter or want further information on how MI Helicopters can assist your business please call the friendly staff at MI Helicopters 4125 1599 or visit their website at www.mihelicopters.com.au

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Surat Basin News 12 Mayne Street Chinchilla Subscriptions: Ashleigh - 4662 7368 email - admin@chinchillanews.com.au Promotions and Advertising: Laurell - 4662 7368 email - advertising@suratbasin.com.au Editorial and Advertorial: Teneale - 4662 7368 email - editorial@suratbasin.com.au Ad Design and Layout: Beth - 4662 7368 emai - ontherump@chinchillanews.com.au Published by Chinchilla Newspapers Pty Ltd Printed by APN Print Toowoomba Industrial Avne. Toowoomba

Surat Basin NEWS Thursday 26 August 2010

PAGE 23

UCG and CSG - the differences

LINC ENERGY EXPLAINS WHAT is UCG ? WHAT is CSG? WHAT are the difference? Underground Coal Gasification (UCG) Coal Seam Gas (CSG) Both techniques use entirely different energy extraction processes and use different technologies. The only similarities with UCG and CSG is they both rely on coal â&#x20AC;Ś that's where the similarities stop...

UCG - explained Gasification is the conversion of coal to gas called synthesis gas or syngas. Conversion is conducted through a series of controlled reactions involving heat, pressure, oxygen, coal and water. UCG is the process of gasifying coal in-situ, that is, where it lies under the ground. UCG provides access to coal 'stranded' deep underground.

= = = = = = = =

The process eliminates the need for mining the coal and processing it through a surface gasification plant. UCG has been used in commercial scale and trial applications since the early 1900s. UCG technology has evolved through numerous trials since then and commercial scale UCG sites for power generation have been operating in the former Soviet Union for more than 40 years.

WHO is Linc Energy?

modern research laboratory.

Linc Energy is developing a significant energy business based on the production of cleaner energy solutions for the future.

Today, Linc has more than 100 employees in Australia and the United States, who are focused on commercialising its UCG and GTL technologies.

It's doing this through a unique combination of UCG and conventional Fischer- Tropsch technology to produce gas to liquids (GTL). Linc first began UCG trial operations on farmland near Chinchilla in 1999. Since then, the Australian company has further developed the site. It has built additional UCG fields, a demonstration GTL plant and a

Linc Energy together with the Surat Basin News want to provide some clarity between the two processes by highlighting the main differences.

How it works: UCG transforms underground coal into a high quality synthesis gas (syngas) of carbon monoxide, hydrogen and methane as heat and oxygen are introduced. In its simplest form - this is how it works: 1. Vertical wells are drilled into the coal seam.These are linked horizontally by drilling or combustion links. 2. The coal seam is ignited and air or oxygen is pumped into a well (the injection well) to drive coal combustion and gasification. 3. Through partial combustion and a series of subsequent reactions controlled by heat, pressure and water influx and the coal is converted to syngas. 4. When coal combustion occurs, heat and carbon dioxide are produced.These become active in some of the gasification reactions. 5. Syngas flows from the gasification chamber through the horizontal connection in the coal seam and flows to the surface through another well (called the production well).

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During the past two months, the UCG process has been in the public spotlight and confusion between UCG and CSG has became apparent.

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Surat Basin NEWS Thursday 26 August 2010

UCG and CSG - the differences

LINC ENERGY EXPLAINS CSG - explained Methane gas can occur naturally within coal. It is bound to the coal through the pressure exerted by groundwater. When the pressure is reduced, (by dewatering the coal), the methane disassociates from the coal and flows with the water to wells for collection and piping. The associated water drained from the coal seam, which is usually saline, is either evaporated in ponds or treated through a reverse osmosis process.

What are the differences?

The two processes and their products are vastly different. While UCG and CSG both produce gas, the product gases are very different and applied to different end uses.

Underground Coal Gasification - UCG

The key difference - the role water plays in the process. UCG requires that water remains in the coal and adjacent to the underground environment to provide the hydrostatic pressure needed for containment of the process.

Coal Seam Gas - CSG

Energy Source

Coal

Gas in Coal

Process description

Gasification, in the presence of pressure from groundwater in the coal generates syngas that is produced through wells

Extraction of water in the coal to relieve pressure allows naturally occurring methane gas to flow out of the well

Product

Processed gas of primarily hydrogen, carbon monoxide and methane

Methane

What it can be used for

Energy recovery

About 85% of energy in coal

About 5% of energy in the coal

UCG produced syngas can be economically used for a variety of purposes.

Delivery

Wells and pipelines

These include

Final product

Liquid fuel, chemical feedstock, petrochemicals and plastics, power generation

Liquefied natural gas, liquid fuel, power generation

Land disturbance

Minimal

Minimal, but over large land area

Waste water

Relatively smallquantities of water Large quantities of water containing inorganic compounds containing organic compounds (oils) (salts)

Regulated in Queensland by

Minerals Resources Act 1989, (ie Mining)

A relatively small portion of the water takes part in the reaction to produce syngas. Conversely, CSG requires that most of the water be drained from the coal in order to relieve the pressure to produce methane. In comparision, CSG produces large volumes of saline wastewater, while UCG produces lower volumes.

the production of liquid fuels when combined with Gas to Liquids (GTL) technology

2 3

power generation in gas turbine combine cycle power stations a feedstock for different petrochemical processes.

For example producing chemicals or other gases such as hydrogen, methane, ammonia, methanol and dimethyl ether

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PAGE 25

Placesandfaces page 27 page29 page 30 page 32 Surat Basin Corporation - forums

Pollution scare - Kogan Creek

Community Cabinet - protesters

Women in Oil and Gas - new group

Career path chances for locals - QGC

Shannon Wall - Cert III Childcare - Charley's Place Early Learning College.

Selina Wanka - Cert III Business Adminstration Western Downs Magazine.

ive new regional residents are now pursuing new careers through a training partnership with QGC and Downs Group Training.

"Once I finish my traineeship, I would like to stay in Jandowae and learn more about graphic design," she said. Jessica Needham finished Year 12 at Chinchilla State High School last year and wanted to stay close to her family in the region.

Through the partnership, the trainees have been placed in local businesses to help them gain skills that are not directly related to coal seam gas production.

Jessica Needham - Cert II Retail Operations - Chinchilla Bakery

She is now completing a certicate in retail while working at the Chinchilla Bakery.

The aim of the program is to help ensure local businesses and service providers through out the region, have the skilled labour needed to grow as the CSG grows around them.

"My main role in the bakery is customer service and making sure each customer receives the attention they need and leave the bakery feeling positive about their experience," she said.

Marsha Dodd is studying Indigenous Primary Health Care has a traineeship at Goondir Indigenous Health Services.

Business trainee Ellen Walker said her work at Miles' Murilla Information Centre is a good start to her career.

"My role is hands on and involves working closely with the medical staff to ensure that the services available to the Indigenous community are efficient and effective," she said.

Since her employment, Ellen has taken over many office and administration tasks, which has freed up Ellen Walker - Cert III Business - Murilla Information Centre. other centre staff to delvier more services to the community.

"Indigenous mental health is one of my passions and I would like to eventually become part of an Indigenous promotional tema visiting local and outlying communities with programs to help clients manage their own health issues and conditions."

Chinchilla's Shannon Wall was delighted that the QGC traineeship enabled her to return to her hometown from Brisbane to complete her childcare studies.

Jandowae's Selina Wanka is completing a traineeship in Business Administration at Western Downs Magazines, a free local community magazine. In addition to her customer service and administrative duties, Selina has been exposed to additional training opportunities throughworking with graphic design software.

PAGE 26

A trainer travels to Chinchilla every six weeks to enable Shannon to complete her formal training on site at Charley's Place Early Learning College. "My job description is changing and more scope, activities and responsbiltiies are added as I complete my training and gain more experience," she said. The trainees participating in the program were recruited and managed by DGT.

Marsha Dodd - Cert III Indigenous Indigenous Health.

Surat Basin NEWS Thursday 26 August 2010

Primary Health Care - Goondir

places and faces

Information out there for suppliers

Surat Basin Corporation TOP TIPS FOR SUPPLIERS as a supplier on the Industry 1 Register 11 Capability Network (ICN) website and on

Recently held Tender Ready Forums have delivered vital information to local suppliers wanting to enter the resource sector. Organised by the Surat Basin Corporation, the forums were held in Toowoomba, Dalby and Roma earlier this month. An overwhelming number of attendees highlighted how important information forums of this kind are for local businesses. During the forums, guest speakers included QGC's Contracts and Procurement manager Nick Gorton, who spoke on contractors and HSSE. L&SC Strategies managing director Sharyn Grant discussed getting a supply chain tender ready, while Industry Capability Network

the organisations websites where you want to do business. Make Safety Management your number one priority and implement a robust Safety Management System that complies with the requirements of the clients you wish to do business with; closely followed by systems for Environmental Management, Risk Management and Quality. Identify the business opportunities available throughout the energy sector and see where your business best fits (eg. 1st Tier Supplier, 2nd Tier, 3rd Tier, 4th Tier, 5th Tier - or a combination). Research the Projects on the ICN website to identify potential business opportunities. Identify which organisations have been appointed the 1st Tier and 2nd Tier Suppliers of the energy projects; promote your services to those companies; apply for their tenders. Advise your prospective clients of all the services and products your business provides/supplies. Apply for ICN's Major Projects Supplier Program to identify gaps and develop action plans to address to increase your business' tendering capabilities. Ensure your business has an impeccable track record to deliver services and products on time, in full, error free. Do not submit non-conforming tenders and always seek plenty of feedback. Seek professional assistance from L&SC Strategies to improve your supply chain performance, to improve your tendering capabilities and to improve your business strategically and operationally.

Darling Downs Regional manager Evan Flower presented Assessing Major Project Opportunities. Meanwhile SBC acting CEO Marc Leman said the presentations were not only informative but drew great insight into the resource industry. "These types of forums are vital for businesses to be successful when dealing within the resource sector," he said. "They also provide insight into the industry and what businesses can expect when working within it."

Register your company with ICN and from the ICN Gateway Projects: www.icn.org.au Research the Projects and Major Industries in the Region via web sites: www.heirg.com Check out the individual major companies Develop an engaging Capability Statement - include any accreditations, awards, major clients Join relevant industry network organisations like SBC Find out who are your possible competitors and find a way to stand out from those Pitch your product or service at the right target - could be a supplier to a major project.

13 14

15 16

4 5

Copies of these presentations are available at www.suratbasincorporation.com.au

9 10

For further information contact SBC on 4660 7777

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PAGE 27

places and faces

QGC and protesters meet face-to-face QGC will hold discussions this week with representatives from the groups that blockaded the coal seam gas company's seismic survey equipment earlier this month.

was the straw that broke the camels back. "We're not having any more wells, so we're not having more

Brian Lyne from Macmahon Holdings speaks to the frustrated Cameby crowd.

Long road ahead The Cameby Concerned Citizens Group is gaining momentum with more than 40 members now meeting once a month at the Cameby Hall to discuss issues and problems they face as a result of Syntech Resources coal mining project near Cameby Downs. In March this year, Macmahon was awarded a three year contract by Syntech to develop and operate the new Cameby Downs coal mine. The contract is worth more than $190 million. The first coal is expected to be loaded on the train at the start of October. Last month, the local Cameby residents braved the cold conditions to hear Brian Lyne from Macmahon Holdings address the group's concerns regarding blasting, noise complaints and dust suppression. Group chair David McCabe said while Mr Lyne listened to their concerns, he did not feel they were being heard.

some property owners feeling blast effects up to 14km away. Blast horns and reversing beeps are also causing local landholders grief, particularly during the night, while dust is still a major issue for landholders. At the meeting Mr Lyne acknowledged the landholders concerns and assured them they were trying to make it as good as they could for the community.

At the protests height, up to 50 residents were preventing QGC from accessing their vehicles and beginning to explore the region around Wieambilla Road for further coal seams.

testing," he said. Friends of the Earth and Western Downs Alliance protesters left the sight four days later after QGC agreed to remove its equipment from the site and organise discussions with the groups. "We have deployed our equipment to another part of our operation," a QGC spokesperson has said. He said the company was meeting with group representatives this week and future plans for the site would be determined after speaking with them.

Blockader and Friends of the Earth spokesperson Drew Hutton said they were not against the testing; but it

"Our aim is minimal disruption," Mr Lyne said. One group member asked why the company could not step up and go beyond the minimum requirements. "We want you to better than your rules," he said. "We want you to up your game and respect our concerns. "Your company is mining our environment. "This is our life; think about the community and what you're coming into."

"They pretend they are listening," he said.

Mr Lyne has agreed to act on the group's concerns and readdress the members at their next meeting on September 7.

Mr McCabe said weekly blasting would have a big impact on the surrounding properties with

"We'll see what he comes back with and if we're not happy, start again," Mr McCabe said. QGCâ&#x20AC;&#x2122;s seismic survey equipment grounds to a halt.

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Surat Basin NEWS Thursday 26 August 2010

places and faces

Kogan all clear questioned It was still a waiting game for Kogan property owners last week as they eagerly awaited to personally receive results regarding a contamination scare in Kogan Creek. Earlier this month, reports emerged saying water in the Kogan Creek contained high levels of pollutants, which had caused the death of local wildlife. High levels of hydrocarbon were also reported.

Going, going gone

On August 11, the Department of Environment and Resource Management announced that further testing for hydrocarbons confirmed there were no concerns for stock watering in Kogan Creek. Landholder Sharon Lohse lives on a property along Kerrs Road outside of Kogan. She said they were still waiting to receive those results personally from DERM.

Family Support Centres across the region will get an extra helping hand in the very near future with the proceeds of a special auction heading their way.

"We're not willing to risk having our cattle access that water when we haven't seen the test results," she said.

Held at PS&R in Chinchilla last Saturday, the auction raised money for centres in Chinchilla, Miles,Tara and Wandoan.

She said her family received an email from Biosecurity Queensland last week saying the information given to them by DERM allowed their cattle to access the creek.

QGC donated the auction items which included around 60 king single mattresses, about 200 recon airconditioning units and about 250 Celestial 34" colour televisions.

"We asked them for a copy of

the results and they said they'd have to get in touch with DERM. "Other people in the area still haven't got their results either." When contacting DERM, the department told Mrs Lohse she could lodge a freedom of information request for the results.

"Do you know how long that can take? "Not to mention the cost." Meanwhile, DERM director general John Bradley said the agency had completed further analysis of hydrocarbon levels in Kogan Creek, which DERM had previously advised on 30 July were 2000 times below the acceptable standard for stock water. Mr Bradley said the latest samples taken by DERM did not detect the presence of mercury and identified that the levels of heavy metals such as iron and aluminum and hydrocarbons did not exceed stock watering standards

(ANZECC Guidelines). "The results of water quality tests from Kogan Creek near Carbon Energy's Underground Coal Gasification plant near Dalby has not detected any contamination which could cause a risk to humans, plants or animal," Mr Bradley said. "The hydrocarbons in samples taken on 30 July were at very low levels, similar to what you would expect to find in this kind of environment. "There was no evidence at the concerned landholder's property of benzene, toluene, ethylbenzene and xylene, nor of any polycyclic aromatic hydrocarbons (PAHs) associated with coal or petroleum products," Mr Bradley said. "There was no detection of mercury in water column or creek bed samples undertaken at 12 locations along Kogan Creek. "Tests were carried out for 67 types of hydrocarbons, and compared with samples taken further upstream of the Carbon Energy Underground Coal Gasification plant. "The very low concentrations of hydrocarbons seen in the

testing results are what you would expect to find naturally in the environment. "To ensure that nothing has been missed, further sediment sampling has been carried out at Kogan Creek and we will undertake further monitoring in coming weeks. "When officers were taking water samples from Kogan Creek, they also looked for any signs of harm to fish, turtles and plants and reported numerous healthy fish and turtles in the creek," Mr Bradley said. Biosecurity Queensland have advised that based on the results received to date the risks to cattle which drink water from Kogan Creek health is negligible. Biosecurity Queensland have also advised that it is not necessary to prevent cattle from accessing water from Kogan Creek or withhold them from slaughter if they have accessed the water. Investigations into Carbon Energy's activities are also continuing.

Gym equipment also went under the hammer with cross trainers, multistation gyms, rowing machines, exercise bikes, benches and weights all on the list.

At auction 60 king single mattresses 200 air conditioners 250 colour TVs

Surat Basin NEWS Thursday 26 August 2010

PAGE 29

places and faces

No puns pulled at community cabinet BY Alice Walker editorial @suratbasin.com.au

Trouble was brewing even before Premier Anna Bligh and her Cabinet opened the Community Cabinet session in Roma last month.

to five hours to greet the Premier and her ministers, representing communities in Springsure,Wandoan,Warra and Tara.

Farmers and concerned community members travelled up

Armed with their placards, the protestors pushed the Cabinet to consider the impacts of the oil and gas industry on the environment and agricultural land. Inside, Ms Bligh's introduction of the Cabinet received a mixed response from the public, with the loudest of the boos reserved for Minister for Natural Resources, Mines and Energy Stephen Robertson. Describing the session as a way to talk directly to government, it was not long before Dayne Pratzky, dressed in a hazardous material suit, took the Premier up on her invitation.

"You're an embarrassment to the State," Mr Pratzky said, interrupting Ms Bligh's opening address. "You should be ashamed of yourself."

Dayne Pratzky suits up for Community Cabinet.

The oil and gas industry was at the top of the agenda for the public on Sunday, with questions raised surrounding landholders' rights, impacts on the Great

Artesian Basin and the environment and the outcomes of the government's strategic cropping land discussion paper. Mr Robertson was also in the line of fire, after the State Government was forced to close down the Cougar Energy underground coal gasification plant near Kingaroy when it learnt traces of benzene and toluene were found in groundwater at the site and a neighbouring property. Ms Bligh said that while the CSG industry offered significant economic growth for the State, she did not believe it should come at the expense of primary production. "This is a new industry that needs to be monitored," she said. "We need to be extra careful and if it takes more time to get it right, then we'll do it.

aquifers and the Great Artesian Basin." Ms Bligh also said she was confident in the Co-ordinator General's evaluation of the CSG companies' environmental impact statements. "I am satisfied that these conditions are among the most rigorous in the world," she said. Other issues raised at the session included the 'mothballing' of Bymount East State School near Roma and concerns from residents surrounding flood mitigation plans for the region.

Queensland Premier Bligh was met by placard bearing protestors during last months Community Cabinet in Roma.

"We are acutely aware of the importance of underground

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Surat Basin NEWS Thursday 26 August 2010

places and faces

Origin helps kick start careers “Program addresses local skills shortages across a wide range of industries.” Also during the dinner, special congratulations went to the first two Community Skills Scholarship recipients, who had completed their apprenticeships.

At a special presentation dinner attended by more than 170 people, Origin Energy announced the latest round of successful recipients in its Community Skills program.

These were Auto-electrician Robert Webb of Roma and Jake Simpson, who finished his Certificate III in Engineering Mechanical Trade, also from Roma.

Through the program, 22 local apprentices and trainees from local South-West Queensland businesses have received financial help and the mentoring support to kick-start their career.

Skills they represent include:

This year's recipients come from eight towns throughout the region.

Origin's EIS and Stakeholder Relations manager Ken Horton said it was the first year they had invited first year trainees as well as apprentices to get involved. "I'm please to say that scholarships this year have been

2010 Origin Energy scholarship recipients.

awarded to 11 apprentices and 11 trainees," he said. "This brings the total number of scholarships Origin has awarded since it began the program to more than 50." Mr Horton said program helps address local skills shortages

across a wide range of industries and helps people feel more positive about having a future in the region.

employer for a year following completion of training.

Scholarship recipients also receive a series of payments as they progress through their training as well as a bonus cash payment if they stay on with their

"These scholarships are worth up to $13,500. In addition to financial support, Origin also offers apprentices access to our scholarship network, to help meet and learn from local business people."

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MILES Brooke Duncombe - Fitness traineeship - Murilla Fitness Centre Ellen Walker - Business traineeship - Murilla Community Centre Jamarl Hazard - Carpentry apprenticeship - Western Downs Construction

Chloe Read - Childcare traineeship - Chinchilla Kindergarten Kaleb Treasure - Electrical apprenticeship - Kurtz Electrical Josh Schulz - Automotive Mechanical apprenticeship - Black Toyota

ROMA James Humphreys - Fitting and Turning apprenticeship - Sharpe Engineering Taylor Thorne - Automotive Services traineeship - Maranoa Regional Council Amanda Lacey - Youth Work traineeship - Downs Industry Schools Co-op Sandra Wendt - Butchery apprenticeship - Queensland Country Meats David Burey - Carpentry apprenticeship - Schefe Enterprises Pty Ltd

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PAGE 31

places and faces

Ladies meet to talk shop It was truly a ladies day with a difference earlier this month when the Toowoomba Women in Oil and Gas group meet for its first meeting.

Get the issues out there

The meeting was held on August 10 at Downs Group Training and was organised and sponsored by Maree Petty from HSE Plus.

Community members across the Surat Basin region have been speaking with representatives from the QGC Community Committees.

Ms Petty, who developed the group in Roma, said she saw a great opportunity in Toowoomba to do the same thing.

The five regional committees were formed in May to facilitate information-sharing and engagement between the community and QGC on its operations and planned QCLNG project.

"The success of the WOG meetings in Roma prompted me to bring together like minded women in the oil and gas industry in Toowoomba," she said.

Issues discussed with the gas field committees include regional roads and finding a balance between the needs of the agricultural and gas industry. Meanwhile a member of the QGC water team answered questions about managing water issues at the request of the Southern gas field committee. The Toowoomba Women in Oil and Gas group hold their first meeting.

The aim of the meetings is to raise the awareness of female participation in the resources and energy sector.

During the Toowoomba meeting CSG/LNG Skills Formation manager Julie Strudwick spoke to the ladies.

It also highlights the numerous opportunities that will become available to young women looking to pursue a challenging and exciting career pathway in this industry.

They were also taken on a tour of the Downs Group Training facilities. "It's anticipated the Toowoomba group will meet regularly," Ms Petty said.

The Toowoomba Women in Oil and Gas group meeting was co-sponsored by The Apprenticeship Company and HSE Plus.

All committees discussed CSG/LNG industry development and how this will be managed by potential projects, government and communities. The next Community Committee meeting will be held this month. Minutes from the previous meeting are available on the QGC website.

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Project manager Peta Tucker said the team was taking very seriously its position in helping to guide growth and development in the Surat Basin region. Ms Tucker said involvement of the university’s specialist teaching and research in areas such as social inclusion and sustainable environments and business development, will allow companies, community groups and business owners the opportunity to tap into the expert knowledge and skills of the university. “We are working closely with various stakeholder groups to help them engage with and understand the many issues that opportunities such as the Surat Basin project brings to ensure the development of strong resilient communities,” Ms Tucker said. The USQ team members are drawn from a number of different discipline areas with specialist representation from engineering, soil science, the Australian Centre for Sustainable Business and Development and the University’s Office of External Relations.

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PAGE 33

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 ALL ROUNDER 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

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

Name: James Owen Crawley Contact: 07 4693 7130 Base: Glenwood Qualifications: Cert III in Engineering, MEM3039, Engineering Tradesperson, (Fabrication/Boilermaking) Forklift tic. Cert II Meat processing MTM20198, C Class lic. Skills: Tig, Mig, & stick welding, metal fabrication, team leader, organisational skills, computer, painting,reliable, attention to detail, hard worker, can work unsupervised

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

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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.

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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.

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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.

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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.

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PAGE 35

places and faces

Origin expands CARS program to include community Origin Energy is rolling out its new Caring About Road Safety program this month after teaming up with RACQ to expand the project. The new partnership has seen the program grow from its existing offering of defensive driver skills for high school students, to a balance of driver skills and behaviors/attitudes for school students as well as select members of local communities. Origin Executive General Manager Upstream Oil and Gas Paul Zealand said the partnership with RACQ was fundamental in

the programs growth. "By teaming with RACQ, we have ensured that our driver training program will be the best available for those communities in which we operate," he said. "We're working with local authorities and communities to deliver a program in a manner and with content that is both practical and relevant and one that will benefit a very broad range of community members across generations. "By acting now and providing training for younger people and

refresher training or further education for already licensed drivers, we hope to instill life-long habits for better and safer driving." Meanwhile, RACQ Driver Training executive manger Scott Lewin said they were glad they could provide the specialist skills and teaching required to help expand Origin's program. "It's great that Origin has identified this opportunity and that they are willing to partner with us to provide regional Queenslanders with the chance to adapt and enhance their current driving skills given the changing landscape out in the regions," he said.

the ability and behaviors of other road users. " The program is available to secondary school students who are aged 16 and over and have a Queensland Learner's Licence. Some places are also available for local members of the community include TAFE and college students, Provisional (P Plate) Licenced Drivers and their supervising drivers. The student program includes a half-day course with practical driver training on controlled roads with the RACQ.This can count up to 1.5 hours in a Learner Driver's logbook.

"By using a combination of behavioural change and skills enhancement, the program will provide amore balanced approach to driver training for both learner and already licensed drivers. "Research indicates the use of this combination provides a very different outcome to simply using just skills training by helping to ensure that drivers are not only aware of their own abilities, but

The community program is a one-day course, held on local roads under controlled conditions. Local police will supervise the use of controlled conditions while qualified driver training instructors conduct the course. The school program has recently finished in Miles,Tara and Chinchilla but will be in Roma between October 4-8 and Dalby October 11-15.

EXPECTED OUTCOMES AFTER TRAINING -

be up-to-date with road rules and know how to apply them

know common driving faults and how to correct them

understand fundamental vehicle operation

be able to perform basic safety checks

be able to manage fatigue safely and responsibly

know how to responsibly share the road with other road users

Community programs Miles: October 18-22 Tara: November 1-5 Chinchilla: October 8-12 Roma: November 15-19 and November 22-26 Dalby: December 6-10.

Ge et the facts on UCG at

p e

PAGE 36

| +61 7 3229 0800 | linc@ @liince energyy.com.au

Surat Basin NEWS Thursday 26 August 2010