Farmers wary of CSG Partnerships - a must read

Social, legal and health issues related to air and water toxic pollution in Australia.

Farmers wary of CSG Partnerships - a must read

Postby HVPA_research » Wed Aug 08, 2012 9:09 pm

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* Archived from Coal Seam Gas News Daily *

Our friends from Maules Creek provided us with some original legal thoughts
Anyone considering signing a contract with a CSG company would be well advised to read the whole article very carefully.

Surprisingly, Governments have no requirement that CSG operations be insured for environmental risk such as failure of rehabilitation, water contamination and depletion or for property devaluation. The protection of such insurance is basic to the social license that is required by the community for mining and the extractive industries to operate. You can’t drive a vehicle on the road without 3rd party insurance, surely 3rd parties require protection in these circumstances as well.

Of more value, insurance companies would weed out the dodgy operators, the serial offenders, undercapitalised and cowboy operations sheltering under inadequate legislation. There would be another watchdog overlooking environmental performance, a watchdog with real skin in the game.

The basic concept of the whole CSG industry is that they will operate on somebody else's land. Another bit of reality is that unconventional gas well tends to produce most of the gas, i.e. most of the profit, in the first few years of the operation and then the yield gradually tails off. There is nothing in the current legislation to stop the gas miners to dispose off their exhausted gas fields and let somebody else to worry about the environmental rehabilitation. The above article describes the dangers of this legal mine field only too well.
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