Senate Committee Recommends Suspension of CSG Projects in Areas That Tap into Great Artesian Basin

The Senate Committee of Rural Affairs and Transport recommended Wednesday the suspension of all new coal seam gas projects in areas where it would tap into the Great Artesian Basin. The 12 recommendations are based on the potential of CSG ventures to contaminate underground water.

The interim findings of the committee said the $60 billion CSG industry has relatively short-term prospects and were not worth the cost to the environment and Australia's agriculture sector.

The freeze would be until further scientific studies on all new CSG developments in the areas near the basis would be completed.

The committee criticised the government's approach to managing the CSG industry's development because it approves developments first and responds to problems that eventually arise. The committee also pointed out that current approval and impact-assessment processes were individually done and did not take into account the multiplier effects of several projects drawing on the same natural resource.

The body wants future developments to first have a regional, multi-state and mult-layer model of the cumulative effects of multiple developments on ground and surface water. It also sought the creation of a trust fund that would compensate landowners for damage on their land and water resources caused by the CSG projects.

Another recommendation is that the landholder be entitled to seek a review of the agreement, particularly if it was entered into without proper advice or understanding of the implications of the CSG.

Current practice places the burden on the landowner to prove that the CSG operation is the cause of depletion of aquifer used for stock or domestic water. The committee said the burden should be on the CSG company to prove its activities are not responsible for depletion of the water resource.

The Australian Petroleum Production and Exploration Association claimed that many of the issues raised by the committee are being addressed by the CSG industry, independent studies, government policy or regulation.