Government’s gas plans get slammed

The Greens have slammed a decision by the NSW Government to secretly grant approval for exploratory drilling for coal seam gas in St Peters. A report released in November revealed the NSW Government had signed an agreement with Macquarie Energy to undergo exploratory drilling on Holland Street.

The decision has infuriated residents and councils, particularly Lord Mayor Clover Moore, who was misleadingly reported to have signed off on the agreement.

“The Lord Mayor had no role in the NSW Government’s decision to issue an approval,” said a spokesperson for Cr Moore.

“She was not aware of the proposal to drill for methane at St Peters before it was reported in the media.”

The Greens have condemned the NSW Government for a lack of transparency.

“By ticking off an approval before consultation, it becomes notification of residents,” said Greens MP, Cate Faehrmann.

“Residents and councils have simply been notified that drilling will take place.”

According to Macquarie Energy’s Review of Environmental Factors (REF) report: “Macquarie Energy is seeking to establish a partnership with the City of Sydney to utilise the coal-seam methane gas located beneath the City of Sydney to pilot a tri-generation facility to provide Sydney with an alternative source of secure, reliable, cleaner energy.”

But the Greens fear environmental concerns will be ignored.

“There’s no regulation on how, and what kind of chemicals and techniques they are using,” said Mayor of Marrickville and Greens councillor, Fiona Byrne.

“We don’t know enough about the environmental impacts of that type of technology.”

Primary Industries Minister Steve Whan has defended coal seam gas extraction.

“The NSW Government supports the natural gas sector but does so under a strict framework that demands environmental and social responsibility,” he said.

Mr Whan said that any drilling requires the explorer to submit a REF, which is assessed according to stringent guidelines.

But Macquarie Energy’s REF report acknowledges the potential problems that could arise from drilling.

It states: “There is potential to contaminate groundwater as a result of runoff from chemicals, fuel, oil and drilling fluids used onsite or associated with operating machinery onsite.

“Macquarie Energy seeks to conduct operations on a 24-hour basis. Operating of this type of equipment during the night may disturb residents in the area of the drilling works.”

The City of Sydney has said if drilling is to take place, there must be a proper public consultation process and environmental protection.

Cr Byrne said the State Government was trying to compromise Clover Moore’s position because she is committed to using tri-generation technologies to reach the City’s sustainability goals.

“I think this is their way of muddying the waters around the fact they gave approval themselves,” she said.

“They did not tell anybody about the process, they did not tell anybody where it was going to happen, [and] they haven’t done any environmental impact assessments.”

But Mr Whan maintains the approval for exploratory drilling does not necessarily imply gas production.

“A petroleum exploration licence is not an approval for gas production, it allows a company to prospect for petroleum, to assess and test the petroleum resource and undertake environmental and feasibility studies only,” he said.

It is, however, a point disputed by Cr Byrne. “What company is going to invest in exploratory mining, unless they’re pretty sure they’re going to find something?”

by Sophie Cousins