Surat BasinNews March 2009 by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 26 March 2009

32 pages $1.00 inc GST

Out of reach and under pressure Local authorities are struggling to deal with workers camps that are setting up out of reach of planning requirements and charges. State Government legislation allows camps to be established on mining or petroleum leases without involvement from local government. At least four exist across the Surat Basin and Dalby Regional Council spokesman

BY John Farmer editorial @suratbasin.com.au

for economic development, Andrew Smith, said council was divided on how the camps should be integrated into communities. “It’s a very touchy subject

and we have varied opinions on how we should be dealing with them,” he said. Cr Smith said the council preferred to see camps set up in towns, like those established for the Kogan Creek Power Project in Chinchilla or Darling Downs Power Station in Dalby. But he said a lack of available land and facilities forced many on to leases, which

placed added pressure on council infrastructure and services. Cr Smith said the council’s planning was hindered because it could not control or monitor the camps. “Some of the camps are very beneficial because some businesses do very well out of them,” he said. Cont’d on page 3

SBD ARCHITECT The Surat Basin Corporation has appointed a new CEO who definitely knows how to get the ball rolling. Page 6

Arrow moves into position By 2012, Arrow Energy must be ready to open the valve and let coal seam gas flow to a world first LNG plant at Gladstone. The company, whose gas

fields are mainly based just west of Dalby, is leaving nothing to chance. New technology, a growing workforce and financial discipline critical to push-

ing through the economic downturn, are powering Arrow towards its deadline. Turn to page 14 for the full story.

WATER TO FLOW After year’s of promise, one town in the Surat Basin could finally be replenished by coal seam water. Find out which town on page 24. — www.suratbasin.com.au —

RAIL STRANDED Everald Compton hits out at government’s failure to act. Page 22

LOCAL NEWS

INSIDE THIS EDITION:

Surat Basin NEWS The Team

Surat Basin News

TIME FOR DESERT TO REPLENISH After months of dramatic growth, drill rig crew finds time to consolidate

INDUSTRIAL PRECINCT TO UNLOCK POTENTIAL

Surat Basin News

Coal mine may be scrapped CUSTOMISED TO PERFORM Global concepts applied to local conditions

LOCAL NEWS

THE COMPANIES

RESOURCES

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

Surat Basin News

XSTRATA PROJECT THREATENED

Toowoomba company with proven ability to deliver

ACLAND SET TO GROW: Toowoomba Regional Council touches down at New Hope’s growing coal mine.

Council visits mine for insight into planned expansion

PAGE 4 PAGE 14

New ally for Haystack armers ederal politician Tony Windsor visited aystack Plain this onth with new dvice on how farmers hould take on the ining companies.

Laurell Ison Advertising

David Richardson General Manager

PAGES 7

Architect for energy province ichard Krause, new EO for the Surat asin Corporation, elieves from his new ole he can help local usinesses realise the ull potential of the egion.

Adrian Gillies and John Hoffman from Miles Chamber of Commerce enjoy a chat with Roz Skerman from Dalby Chamber of Commerce and Industry and Craig Tunley from Dalby Regional Council at the regional chambers of commerce meeting held in Dalby last month.

Region’s chambers unite Last month, chambers of commerce from across the Surat Basin sat down in Dalby in a show of unity. Usually parochial and locally minded, the region’s chambers of commerce took time to look outside their own town boundaries last month. Five chambers and business groups from across Dalby Regional Council met in Dalby on February 25 for the first of a planned series of meetings.

John Farmer Journalist

Beth Walker Graphic Design

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 the make the newspaper more frequent once support has been established.

Dalby Chamber of Commerce and Industry president Michael Webber said it was hoped the informal meetings would renew ties between the region’s business communities. “The benefits are for a cross pollenisation of ideas and for chambers to get an idea how to address issues perhaps encountered by others,” he said. “It will hopefully help provide insights and ideas that will help each of our communities.” Mr Webber said while chambers were rightfully parochial when it came to their specific towns, lessons could be learnt between them. “The reality is each chamber of commerce is really only interested in their own com-

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munities but there are issues that cut across all communities,” he said. “For that reason, it’s important we have sound relationships with other business communities.” Miles and District Chamber of Commerce president Adrian Gillies agreed. “From my perspective, we all have the same, shared goals,” he said. “We mightn’t have the same business plans, mottos or mission statements, but we all want to support our businesses and therefore our communities. “As part of that we have

shared issues that go across communities that we could combine or collaborate on. “Why have someone make mistakes if we’ve got someone else who has the right answers.” Mr Gillies said a regional collaboration between chambers would also assist in lobbying for business communities. “If there is an issue that needs a united front — whether it is a state, regional or local issue — if we’re all working together we can provide that combined front with a greater critical mass,” he said.

“It will hopefully help provide an insights and ideas that will help each of our communities.”

Arrow sets sights on Gladstone Arrow Energy is expanding to meet a 2012 deadline for the supply of gas to a major LNG plant at Gladstone. PAGE 16

Policy ends dispute over Surat coal After months of dispute, State Government policy finally has UCG and CSM producers working side by side.

— Michael Webber

oowoomba Regional Council last month visited the New Acland Coal Mine near Oakey. Eight Councillors including mayor Peter Taylor had a first-hand look at the mine’s current operations and unique coal that is more environmentally friendly. Currently producing 4.2 million tonnes each year, New Acland plans to expand its current operations and double annual production rates to 10mtpa. The proposed expansion would employ about 220 people during construction and 450 during operations. General manager corporate development and government relations Dennis BrownKenyon said Ct Taylor’s visit to site provided a good opportunity for the council discuss the proposed stage three New Acland Coal Expansion Project. “New Acland is in the final stages of completing an environmental impact statement which will be submitted to the State Government in March this year. A number of assessment studies make up the EIS to ensure any potential impacts associated with the project are appropriately addressed,” Mr Brown-Kenyon said. “Coal mining in Acland began nearly 100 years ago in Acland and New Acland Coal is proud to play a role in the coal mining history of the area. We’re keen to retain this heritage where possible and are working with Council and the community to look at the best

way we can achieve this,” he said. A community Heritage Advisory Committee was established two years ago as a Committee of Council to support the initiative of establishing a heritage precinct and ensure the protection of the historic Acland Mine Museum. The main functions of the Committee were to provide a recommendation to Council on a suitable site which could be developed into an Acland Heritage Precinct and to create a list of assets considered suitable for relocation to any heritage site. Toowoomba Regional Council Mayor Peter Taylor commented that the site visit to Acland provided Council with a good opportunity to discuss the potential benefits and impacts of the Stage 3 Expansion Project. “The proposed expansion of the New Acland Coal Mine has the potential to create great benefits for our region however Council needs to ensure that any development is done so in a way that is sustainable. “Ensuring economic, environment and social sustainability needs to be appropriately considered,” Mayor Taylor said. “Council thanks both the community and New Acland Coal for its participation throughout the Heritage Advisory Committee process. The committee delivered its recommendations to Council late last year and now awaits Council review in the coming months,” he said. Mr Brown-Kenyon also com-

PAGE 18

Second driller deployed Easternwell Group has as part of a $100 million contract with Santos deployed its second Advantage Driller to the Surat Basin. PAGE 20

Safety leader opens in Toowoomba Industry pioneer offers the complete range of equipment and procedures to ensure workplace safety. Toowoomba Regional mayor Peter Taylor on a recent visi to New Hope Coal’s Acland mine, which is set to undergo a massive expansion. mented that NAC is keen to work with the communities in which it operates and believes its operations can provide a

SURAT BASIN CONFERENCE

18, 20, 21 August 2009 An initiative of the Surat Basin Corporation

Developers will

H t d b th

COMPANIES:

Federal politician Tony Windsor visits Haystack Plain and told farmers they had a new ally. The Surat Basin Corporation has appointed a CEO who is based out of Chinchilla. Roma Regional Council is seeking to upgrade the Roma airport after an increase in passengers.

Arrow Energy is expanding to meet a 2012 deadline to deliver gas to an LNG plant at Gladstone. Xstrata Coal has threatened to scrap its Wandoan project if an emissions trading scheme is introduced. UCG has returned to Queensland.

Weatherford is designing and manufacturing technology for local conditions. Easternwell Group has launched its second world-class Advantage Driller to the Surat Basin. FK Gardner & Sons is helping deliver the Federal Government’s stimulus package.

Surat Basin News

READY TO OPEN THE VALVE

Surat Basin News

Coal seam water almost secured

QGC TURNS ON THE DRAMA

Surat Basin News

NEW HOPE COAL BACKS CONFERENCE Acland coal miner supports Rotary International

More than 2500 flock to Windibri.

THE TOWNS

THE PEOPLE

INFRASTRUCTURE

www.suratbasin.com.au

PAGE 22

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PAGE 26

QGC appoints new director

Rail EIS out but potential not realised ATEC chairman Everald Compton believes the State Government is refusing to realise the full potential of Surat Basin. PAGE 23

Valve about to open on Dalby water Dalby Regional Council expects to have coal seam water flowing into Dalby by the end of this year. The agreement with Arrow Energy should pave the way for similar projects in Miles and Chinchilla.

QGC general manager commercial Jim Seaton, QGC senior vice president growth David Maxwell, Queensland Deputy Premier Paul Lucas and Queensland Assistant Co-ordinator General Geoff Dixie at the contract signing for Curtis Island land for BG Group’s LNG plant.

QGC secures land for LNG project GC last month moved a step closer to building its Queensland Curtis Liquefied Natural Gas plant at Gladstone, finalising a deal to purchase land on Curtis Island from the Queensland Government. Deputy Premier Paul Lucas signed an agreement with QGC’s senior vice president, growth, David Maxwell, for about 270 hectares at North China Bay. “It’s great to see a company of BG Group’s calibre investing in Queensland’s future, to create jobs and economic growth,” Mr Lucas said. “This is a really promising step towards having a plant and export facility on the

island in four years time capable of producing up to 12 million tonnes of LNG a year. “QGC expects this project will create more than 3000 jobs at the peak of construction and about 800 ongoing jobs, subject to getting state and federal government environmental approvals. “Nearly 50 per cent of these jobs will be in Gladstone at the processing end. “The rest will provide work for people in the Surat Basin, where the gas will be extracted and transported by underground pipeline to the coast. “Gladstone will benefit from diversifying and adding to its existing strengths like coal and aluminium. “In tough economic times, a broader business base will make the local economy far more resilient and provide

security for workers.” Mr Lucas said the LNG industry could add hundreds of millions of dollars to the state economy every year from royalties and taxes. “That translates into better schools, hospitals and services for people across Queensland,” he said. “This land contract will only be finalised if numerous conditions are met including environmental assessments. “And this land can only ever be used for an LNG plant.”

Mr Maxwell said QGC would make an initial $5 million contribution towards man agement of the Curtis Island Environmental Management Precinct, created when the Gladstone State Development Area was extended to the island in 2008. “This contribution enables the environmental values of the precinct to be studied and for plans to be developed and implemented in consultation with the community to protec these values,” he said.

“In tough economic times, a broader business base will make the local economy far more resilient and provide security for workers.”

New managing director brings wealth of international experience in coal seam gas industry to Queensland Gas Company and its LNG aspirations. PAGE 26

PLANNING FOR THE FUTURE: The Dalby Chamber of Commerce and Industry has more than just the present on its mind

From the farm to Arrow’s growing fields Robert Garvey used to work on a farm with grain and cattle. Today he is behind Queensland’s fastest growing industry.

Ready for another round of scholars

Chamber looks beyond now to plan for long term issues PAGE 38

Roma ready or Easter

Origin skills program expands as it works its way into another highly successful year

pplications have just closed for Origin Energy's Community Skills Scholarship program. The 2009 program has been expanded from eight positions to 12 to cater for increasing demand for the

Scholarships. The scholarships have been created in partnership with local businesses and are open to apprentices in any trade — not just oil and gas. Financial support and mentors are provided for successful applicants. Origin's group manager, community investment, Sarah Clarke, said a large number of applications in 2008 led Origin to introduce four extra trade-based scholarships, including two identified solely for indigenous applicants. “Over the past two years, local apprentices and business owners have shown a huge amount of interest in the program, and we've received a lot of positive feedback from past recipients,” she said. “By extending the program we hope to help more apprentices get started in their trade and provide a service which benefits local communities for years to come.” Ms Clarke said the skills scholarship program was designed to support the com-

Origin Community Skills Scholarship recipient Naomi Bowman from Hair@Dalby Applications for 2009 scholarship places have just closed. munity's capacity to build and retain skills across all areas of business. “Financial considerations often impact on the decision to take up a trade, and these scholarships provide an extra incentive to get started, with ongoing support to help apprentices see their study through until the end,” Ms Clarke said. Naomi Bowman, Dalby hairdressing apprentice and 2008 Community Skills Scholarship recipient, said: “I had to move out of home to work and with paying rent it just makes it a bit easier to pay for tools and things for work.” Origin has committed up to $13,500 per scholarship recipient, with added incentives for mature-aged applicants, and

bonuses for apprentices who stay wit their employer after completing thei trade. The funding is paid in installments t match completion of course competencie and can be used to purchase items lik textbooks, tools and uniforms. Recipients are also matched with loca volunteer mentors to help guide them through life and career decisions. Scholarships are open to first yea apprentices taking up a trade within th Roma, Miles, Chinchilla or Dalby districts The Community Skills Scholarship pro gram forms part of Origin's commitment t the local community. To find out more, visi originenergy.com.au/community.

“Over the past two years, local apprentices and business owners have shown a huge amount of interest in the pro gram, and we've received a lot of positive feedback from past recipients.” Origin Energy’s Sarah Clark

— Deputy Premier Paul Luca

LIFT and SHIFT up to 14 TONNE

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Western Downs proves to nation it has the skills

Easter in the Country s back and support from the gas and mining sector is ensuring this year’s celebrations are going to be the biggest yet. PAGE 34

New Hope nvests in its communities The company behind he Acland coal mine has signed on as principle sponsor of a major Rotary event.

hen the Dalby Chamber of Commerce and Industry brings together the second Surat Basin E n e r g y Conference, it will be amidst a business community shrugging off economic hard times. President Michael Webber said business in Dalby remained strong despite the strain of the global economic downturn. He said industrial development coupled with a revitalised rural sector was helping Dalby business sustain its strength. Origin Energy has established a camp on the western outskirts of Dalby for workers on the Darling Downs Power Station. Many skilled locals have been employed by coal seam gas company Arrow Energy while local suppliers and manufacturers are securing contracts with resource companies. “I think our business community is maintaining a steady as she goes situation,” Mr Webber said. “There is a general feeling of optimism about what is going on — we’ve had the gas and power stations but we’ve also seen a strong rural sector enjoying reasonable seasons for a change.” Mr Webber said Dalby’s business planning was centred on the future and the chamber was helping its members look beyond the

Webber said. Late last year, Dalby’s chamber cut its ties with Dalby Regional Council and moved into its owned premises. Mr Webber said the move was designed to strengthen the role of the chamber. “The chamber is still going very strongly and we’ve very happy with the progress we’ve been able to make for the business community,” he said. “I must emphasise the move from the council chambers to our own office was not because of any ill will towards, or any pressure from, the council.” The 2009 Surat Basin Energy Conference will be held from August 18 to 21 in Dalby.

Attending the regional chambers of commerce meeting in Dalby last month are Richard Thornbury from the Tara Business and Industry Group, Dalby Chamber of Commerce and Industry president Michael Webber and Dave Gunther from the Tara Development Association. short term impacts of development. “I believe our community is now looking into the medium to longer term issues rather than catering to the short term influx of workers during the development stage,” he said.

The Dalby Chamber of Commerce and Industry has coordinated the Welcoming Community program that targets new people moving into the town. “It’s all about trying to let people know we’re a community that isn’t closed to new people,” Mr

Santos has committed $10,000 for the placement of an original sculpture to be placed outside the Roma on Bungil Gallery. A call for submissions has

it will really be there to identify and brighten the frontage of the building.” Submissions should reflect the rural nature of the area with an “innovative and sym

awarded to the winning artist, but in the following two years the prize money will be $5000, and the other $5000 will be retained by the gallery to pay for the cost of bringing other

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Everald Compton, chairman of ATEC and inland rail pioneer, has called on the government to back the Surat Basin Rail. QGC secures land for its LNG plant at Gladstone and coal seam water could finally flow.

Origin Energy prepares for another round of skill scholars. QGC turns on the drama at the third installment of Drama at the Gasfields. The Surat Basin is benefitting from the downturn in the Bowen Basin.

Dalby Chamber of Commerce & Industry is preparing for the future. Roma looks to a massive Easter in the Country event and Santos helps a local art gallery sculpt its place in its community.

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The only choice for the Surat Basin Energy Province S U R AT B A S I N R I C H I N . . . . • GAS • ELECTRICITY • COAL • GROWTH • EMPLOYMENT • LIFESTYLE • OPPORTUNITIES

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— Michael Webber

“Whilst we get a lot of great support from local businesses and organisations, we were looking for a major sponsor, and Santos was very keen to support us ” he said

INFRASTRUCTURE:

Circulation 10,500

Gladstone

“I believe our community is now looking into the medium to longer term issues rather than catering to the short term influx of workers during the development stage.”

Santos sculpts centre’s place in community

S u r a t B a s i n News 266

al Queensland, for at least the next two years,” he said. “The benefits will be felt by the entire community with our focus, wherever possible, on utilisation of local supply chains.” Local suppliers, contractors or experienced construction companies that can add to the proposed upgrade of primary schools in the region, are encouraged to contact either FKG or the State Government Project Services Department.

RESOURCES:

The Website

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.

struction company within the defined Surat energy province and as such, stand to secure a large portion of the proposed works. Managing director Gary Gardner said he expected the stimulus package to take up some of the lag created by delays in resource projects. “It is important to understand that whilst some mining projects within the Surat energy province may be delaying their commencement, the stimulus package will help maintain confidence in region-

6 REMAINING

STEP FORWARD: Project expected to provide job security

The Vision

As the largest construction company in the Surat Basin, FK Gardner & Sons is playing a vital role in delivering the Federal Government’s stimulus package. for the entire process, including design, documentation, construction and commissioning. FK Gardner & Sons is a Toowoomba based construction company that stands to significantly benefit from the package. Over the last 30 years the company has nurtured its relationship with the Department of Education, Training and Arts and has a long and proven ability in delivering time critical State Government projects. It is also the largest con-

Chinchilla’s premier address...

solid economic future for the region. An EIS is anticipated towards the end of the year.

The Surat Basin is set to continue its strong growth with the roll out of the Federal Government stimulus package. More than $2 billion is committed to be spent on all state and private primary schools in Queensland. The benefits for the local region will be wide and varied. The focus for the funding is prioritised with school libraries and multi-function halls being the main beneficiaries. The idea behind the State Government controlled, federally funded package is to see that works commence as soon as possible. This will ensure employment and associated community benefits are felt immediately. For this very reason local contractors and suppliers stand to gain the most. They are being targeted to assist in delivering the stimulus to all of the local communities throughout Queensland. The first and second round of submissions for the proposed work have already closed with only selected contractors asked to formally register their interest. The proposed projects will be administered through a design and construction process whereby the principle contractor will be responsible

THE NEWS:

VOICE YOUR OPINION: editorial@suratbasin.com.au

suratbasin.com.au will deliver the news, events and employment opportunities of the Surat Basin around the world. The website will be community focussed, allowing towns and businesses to connect with major industry, investors and government agencies.

www.suratbasin.com.au

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REGIONAL FRONT: Dalby hosts region’s chambers and business groups to share issues and solutions

Next editions are June 25, September 24 and December 17

advertise@suratbasin.com.au or editorial@suratbasin.com.au Surat Basin NEWS Thursday 26 March 2009

Surat Basin News

TIME FOR DESERT TO REPLENISH

INDUSTRIAL PRECINCT TO UNLOCK POTENTIAL

After months of dramatic growth, drill rig crew finds time to consolidate

LOCAL NEWS

www.suratbasin.com.au

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REGIONAL FRONT: Dalby hosts region’s chambers and business groups to share issues and solutions

PAGE 4

New ally for Haystack farmers Federal politician Tony Windsor visited Haystack Plain this month with new advice on how farmers should take on the mining companies. PAGES 7

Architect for energy province Richard Krause, new CEO for the Surat Basin Corporation, believes from his new role he can help local businesses realise the full potential of the region.

“It will hopefully help provide an insights and ideas that will help each of our communities.” — Michael Webber

Camps putting pressure on local services Cont’d from page 1 “But it’s very unfair for our ratepayers to see a 400-man work camp set up and then to have them come and suck from our water supplies without any notice. “They do pay for the water but it makes it very difficult for this council to plan if we don’t know what’s happening.” Some companies have acknowledged the impact of the workers camps and con-

tributed to improving roads, services and infrastructure. AGL last year contributed $21,000 to the upgrade of Butlers Road, a project carried out by Dalby Regional Council. Queensland Gas Company, which has 240 workers living in camps based at gas fields, helped pay for upgrades to access roads to its Kenya gas field and camp south of Chinchilla. Cr Smith said those compa-

nies provided a precedent more needed to match. “We’d like to see more,” he said. “Not nearly enough has been done. We appreciate what has happened but we’re a long way off being on equal footing.” Dalby Regional Council does take into account the potential impacts of workers camps when rating coal seam gas fields and coal mines.

Surat Basin NEWS Thursday 26 March 2009

Cr Smith said a lot more work needed to be done to ensure communities were benefitting. “To manage the development properly we have to make sure we’re in a better place at the end then we were when we started,” he said. “If in five or 20 years down the track we’re not then, as a council, we’ve not done our job properly.”

PAGE 3

LOCAL NEWS

Alarm bells in exploration downturn

Mining debate’s new player Haystack Plains farmers should be going to the people who run the country, not just the state, according to a federal politician. Independent Member for New England Tony Windsor told farmers on a visit to Haystack Plains last month the Murray Darling Basin agreement signed last year had brought a “new player” into the mining versus farming debate. “With the agreement of the four states and the Commonwealth it’s not just up to the State Government to tick mining applications,” he said. “The Commonwealth Government can intervene if certain circumstances develop when the catchment is actually at risk.” Mr Windsor’s electorate covers the Liverpool Plains, an agricultural district currently being explored by BHP. He said that area shared many similarities with Haystack Plain. “There are a lot of similar circumstances,” he said.

Independent Member for New England Tony Windsor, Haystack Plain Action Group chairman Jeff Bidstrup, Anne Bridle, Dalby Regional mayor Ray Brown and FoodFuture Queensland co-chair Geoff Hewitt during Mr Windsor’s visit. “Beautiful black soil, alluvial floodplain, a whole range of issues particularly with water.” Haystack Plains farmers claim the Murray Darling system could be threatened by the salt brought to the surface during coal mining. Mr Windsor said it was an issue the Commonwealth Government could have the power to intervene on. “It is obvious to anyone who observes the Haystack Plain area that massive diversion of water would occur if the proposed mine went ahead,” he said.

LOT SIZES • Stage 1 of 27 lots with various sizes from 4000m2 to 1.38Ha. • Stage 2 will follow, currently in planning and design stage. • A number of even larger lots will be included within Stage 2.

“This diversion would cause off site impacts on surrounding properties and water courses which under the Murray Darling legislation would make it illegal with the end result being the ability of the Commonwealth Government to over ride the State Legislation that enabled the granting of the mining licence. “This is also the message for the people of the Liverpool Plains.” Mr Windsor said across Queensland and New South Wales there was an urgent need for regional planning.

“It’s quite obvious to anybody who knows anything about agriculture and the lie of the land that there are areas less prone to damage that should be mined before we mine some of the best country in the world,” he said. Mr Windsor left Haystack Plains with one clear message to landholders. “Don’t give up,” he said. Mr Windsor’s visit came after a meeting with Angie Olm, regional winner of the ABC Radio Haywire competition for her YouTube video on the Coal4Breakfast campaign.

Surat Basin INDUSTRIAL PARK

LOCATION The estate is strategically positioned to service the booming Surat Basin Energy Province, only a couple of kms from Chinchilla CBD on the western side. Easy access off the Warrego Highway, turn left into Auburn Road and just 300m to the entrance of the estate.

NOW TAKING

• Be operational early in 2010 • Disclosure contract mid 2009 • Subject to DRC final approval

PAGE 4

Warrego Highway Chinchilla

300m Warrego Hwy

EXPRESSIONS OF INTEREST

New Office

The peak representative body for Queensland’s minerals and energy sector is urging federal and state governments to respond decisively to a substantial fall in expected mineral exploration activity reported by the Australian Bureau of Statistics. Queensland Resources Council chief executive Michael Roche said a forecast 37 per cent decline in Australian mineral exploration in the second half of 2008-09 was particularly troubling for Queensland with its dwindling inventory of discovered and commercially viable base and precious metal reserves. “With a concerted effort to encourage the discovery and development of new mines, Queensland could be out of the game as a gold, silver, copper, lead and zinc producer in less than 30 years,’ Mr Roche said. “This is despite the fact that Queensland continues to rank internationally in the top 10 destinations for the quality of our mineral prospectivity.” Mr Roche said this month’s ABS forecast should be the stimulus for the federal government’s announcement of a promised flow-through share scheme to support continuing investment in Australian mineral exploration companies.

SERVICES The estate will have all modern amenities. • Under ground 3 phase power and phone services • Extra wide 30m Road reserve suitable for heavy industry, asphalt finish • Town water and sewerage (Currently this area of Chinchilla is not sewered) • Park land or ideal rest area or maybe off street staff parking This project will soon be added to our website www.suratbasindevelopments.com.au there are 3 current projects on the site. We are passionate about creating a strong community that will benefit all that live, work and invest in it.

FURTHER ENQUIRIES CONTACT WARREN DANIELLS

07 4669 1066 or 0427 468 591 warren@suratbasindevelopments.com.au

www.suratbasindevelopments.com.au Surat Basin NEWS Thursday 26 March 2009

LOCAL NEWS

Dry times give Desert crew the chance to replenish The economic slowdown has given managing director of Wild Desert David Whiley a welcome opportunity to ‘chill out’ and consolidate the company’s position after years of growth. “This period of steady growth will give us a chance to sit back and consolidate the gains we have made in the past three years,” he said. “At present we have come to a stable point where we hope to maintain stable growth over the next 12 months.” Four years ago in

Wild Desert’s Jillian Bartels, Darren Haddock, David Whiley, Gina Tedford and Jessie Roberts appreciate the opportunity to reflect and consolidate.

September Wild Desert started out with two employees but today the company employs 65 and expansion plans are going ahead as scheduled. “We are still in the process of expanding with our fourth rig to be up and running shortly,” Mr. Whiley said. “The company has been flat-chat for the last three years now we get a real chance to get a handle on the internal structure of the company.” With unemployment figures around the country rising Wild Desert has also benefitted from

an unprecedented number of skilled workers looking for work. “We have been lucky enough to gain a few highly skilled workers who have come into the gas market when some of the bigger companies have dropped their rig numbers back,” Mr Whiley said. “The opportunity for us to employ qualified workers has saved us a lot of time and resources we usually spend in training up our new employees.” Mr Whiley is expecting the growth in the industry to pickup again in 2010.

Roma out to get airborne BY Ryan Groube The Roma airport could be receiving a $7 million upgrade in the next year if Roma Regional Council is successful in its bid for the Federal Government’s Regional Local Community Infrastructure Program (RLCIP) funding.

Council looking for airport upgrade Council made the application on Friday and hopes to gain $6 million of the $7 million required to make the upgrades. Mayor Robert Loughnan said during the 12-month period leading to January 2009, there were 349

landings on average per month; a 125 per cent increase on 2004. “Passengers in the first two months of 2009 show a 40% growth on the previous January/February period which, based on this level of growth, suggests 2009 passen-

ger numbers will be in the vicinity of 52,000,” he said. Cr Loughnan noted that the current terminal was built in the 1970s and upgraded in 1994 and 2007, but said “although it is in good condition, it is too small for current

usage”. He said on some occasions, passengers and baggage have to

be off loaded in order for the plane to take off, due to the limited runway. Council hopes, if successful in its grant application, to extend the runway to the

northern side, where there is room for an extension of up to 300 metres, leaving another 300 metres for clearway and buffer within the property boundary.

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LOCAL NEWS

Corporation is just a click away

Bunkers and balls to mines and energy Richard Krause once designed golf courses; today he is the architect of a corporation driving investment into a burgeoning energy province. Mr Krause was appointed chief executive of the Surat Basin Corporation, which was up until this month known as the Western Downs Development Corporation. The former CEO of the Australian Engineering & Manufacturing Network, a group that represents around 12,500 workers, has been based in Chinchilla since the start of March. Mr Krause said the Surat Basin Corporation could be the key to realising the full potential of the energy province for the local business sector. “What we offer is a promotion of the area, the promotion of businesses and links and information into supply chains,” he said. “We can provide information about local capabilities.” The Surat Basin Corporation has an executive board featuring members from Toowoomba through to Roma.

But Mr Krause said strong community involvement was critical to its success. “I want them to take an interest when we hold a forum and take the time out,” he said. “We want the community to take the time to find out what we’re about and then, if they feel they can be a part of it, to take up membership. “The stronger the core of our membership and the more locals we have as a core then the more interest governments will take in us.” The former property developer grew up in Banana during the central Queensland mining boom and understands the pressures facing the Surat Basin. He is also aware of the potential. “I know what mines can do for a region and it’s exciting to see it happening on the Darling Downs,” he said. The Surat Basin Corporation plans to develop a website that would act as a promotional tool and a place where job vacancies or tender processes can be advertised.

Surat Basin Corporation president Greg West with new chief executive Richard Krause, who is now based in Chinchilla.

More ‘Google-able’ and more geographically correct are the reasons behind the renaming of the Surat Basin Corporation. Known as the Western Downs Regional Development Corporation for more than two years, the name change took place late last month. Chief executive Richard Krause said the new name would benefit from the interest being taken in the region. “A lot of people are interested in what is happening in the Surat Basin so more times than not the first thing they do is type in Surat Basin,” he said. President Greg West said Surat Basin Corporation also more accurately reflected its scope. “This is the organisation evolving,” he said. “When we first stated it was only from Dalby and then we took in Roma Regional Council. “The last step now is we’ve included Toowoomba Regional Council. “Western Downs no longer truly represents the area covered by the corporation.” Mr West said the corporation plans to eventually have staff and offices in Toowoomba, Dalby, Chinchilla and Roma.

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Surat Basin NEWS Thursday 26 March 2009

LOCAL NEWS

Sales slow but confidence high Westdan directors Warren Daniells and Greg West at the sight of a development they hope will attract new and larger industries to Chinchilla.

Developers out to unlock Chinchilla’s industrial potential Room for the big boys and jobs for a lot are behind a multi-million dollar industrial development on the western outskirts of Chinchilla. Westdan has applied to Dalby Regional Council to develop the 27lot Chinchilla Industrial Park on Auburn Road, west of the town off the Warrego Highway. Thirty metre-wide roads will lead to large lots of between one and four acres across 52 acres. Stage two will see sizes grow to between five and 10 acres over 137 acres in total. The development should be approved within the next month with construction to start later this year for completion in early 2010. Westdan director Warren Daniells said the estate responded to a shortage of larger industrial land in Chinchilla. “With the anticipated growth in the Surat Basin, Chinchilla Industrial Park will be on the coal face of the gas industry and right there for the coal mines and the other industries that come along with it,” he said. Mr Daniells said the size of the lots should attract large manufacturers and industries that have in the past been unable to set up in

Chinchilla due to a lack of suitable land. Many of the distinct design features behind Chinchilla Industrial Park were learnt from 2008’s Western Downs Development Group trip to Mackay. “This is catering for the big boys,” Mr Daniells said. “And as a result should create major employment for our community.” The estate represents a major milestone in Westdan’s short history. The company has been behind several residential estates but Chinchilla Industrial Park represents its first industrial venture. Mr Daniells said despite the global economic slowdown Chinchilla would be able to support such a considerable land development. “The Surat Basin is one of the only areas in Australia that has potential like this in such a time in our economic history,” he said. “The gas projects are going full steam ahead and I believe the coal projects are moving along not far behind.” Westdan’s development will see upgrades to water and sewerage services on the western outskirts of Chinchilla.

Rosenberger Realty principal Rob Rosenberger has expressed confidence in the housing market in Roma, despite sales slowing marginally on those a year ago. “The oil and gas industry is helping to maintain the rental market and the first home buyer grant continues to drive the lower end of the market,” he said. “The housing market in Roma isn’t reflecting the broader trends in the rest of the world, due to its isolation and all the things currently happening in the town.” Mr Rosenberger said there had never been a better time to be active in the housing market. “The low interest rates, realistic house prices and the availability of the first home buyers grant have made the housing market an attractive proposition for investors,” he said. In the rental market Mr Rosenberger said increased demand for properties had seen investors begin to pur-

BY Ryan Groube

chase homes to increase the supply of rental accommodation. “Already we have seen instances of investors creating additional supply by purchasing properties to rent back to people,” he said. Agents in Roma, including Ray White principal of residential sales and marketing Joy Byrnes, are also beginning to see a trend. Joy says demand for rentals is coming close to outstripping the supply of rental properties.

“Demand for rental properties is extremely high at the moment,” she said. “There is definitely a shortage on units and cheaper homes with a lot of tenants currently searching. “We have about eight rental properties at the moment but that can change over night to one or none. “We also have a number of applications waiting for homes to rent.” Joy remained confident the housing sector in Roma is holding up and will continue to do so in the future. “All of us at Ray White are extremely busy with first home buyers and investors. “I think owners should not panic as there are a lot of buyers out there,” she said.

“The housing market in Roma isn’t reflecting the broader trends in the rest of the world, due to its isolation and all the things currently happening in the town.”

Surat Basin NEWS Thursday 26 March 2009

— Rob Rosenberger

PAGE 7

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Surat Basin NEWS Thursday 26 March 2009

OPINIONS QUARTERLY CONDUCT The issues, identities and announcements making news over the last three months.

THE ISSUE:

GLOBAL RECESSION The event that could have a devastating effect on the development of the Surat Basin. It broke late last year and so far has claimed thousands of jobs in Australia’s resource sector. The coal seam gas industry is expected to be spared but the full extent of its toll on Surat Basin coal mining is unknown. Watch this space.

THE IDENTITY:

EVERALD COMPTON The ATEC chairman and inland rail pioneer visited the Surat Basin to launch his fight against the State Government’s refusal to back the Surat Basin Rail. Mr Compton claims the government should be investing in the upgrade of the line to dual gauge.

THE ANNOUNCEMENT:

SURAT BASIN RAILWAY EIS Coming weeks after the EIS for Xstrata Coal’s Wandoan project, the document revealed the 210km missing link could be operational by 2012. A cornerstone project for the Surat Basin, the rail line is predicted to spark the development of 16 coal mines and provide a link for local produce such as grain.

THE CONTROVERSY:

UCG V CSG After months of uncertainty and disputes, the State Government finally made a policy decision that will allow underground coal gasification to operate alongside coal seam methane producers.

THE STATEMENT: “All they’re doing is making Australian coal uncompetitive and Xstrata is saying ‘we’re being made to compete with one hand behind our back’.” ATEC chairman Everald Compton on Xstrata Coal’s warning its $5 billion Wandoan coal mine could be scrapped if the Federal Government implements its emissions trading scheme.

SEVENinSEVEN

Rail pioneer calls on political backing for Surat Basin A month after the release of the Surat Basin Railway EIS, the Surat Basin News sat down with ATEC chairman Everald Compton to talk about the project’s future. SBN: Xstrata Coal’s Wandoan project is the cornerstone of the Surat Basin Railway but news this month is the project will not proceed if the Federal Government introduces its emissions trading scheme. What do you think of the scheme? EC: What they’re doing is putting an imposition on Australian coal. The Indonesians aren’t putting it on their coal, China isn’t putting it on their coal. All they’re doing is making Australian coal uncompetitive and Xstrata is saying “we’re being made to compete with one hand behind our back”. SBN: Last year you announced up to 16 coal mines were potentially going to expand or start as a result of the Surat Basin Railway going forward. With the world going through massive economic turmoil, what are you hearing from the less established miners? EC: They’re all struggling to get money and some of them are going to get bought up by the big guys. Up until last year they could go to the banks and get a loan for development. Now the banks have totally closed up. Little coal mines that don’t have the capital can’t meet the requirements so either they’ll have to put it all on hold or sell to one of

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the big boys. SBN: Should the government — federal or state — play its part in protecting or even assisting coal miners to get started? EC: I believe with Rudd setting up this Rudd Bank to help the property developers, I ask the question why the hell can't we have a bank to help resource companies. Resources are the main industry that helps this country. SBN: The coal seam gas industry looks to be one of the main industries helping this region through the economic hard times. What is your view of the industry and its future influence on the region? EC: We see the gas as helping communities grow. As communities grow they have more need as freight and more need of railway lines. I see the gas guys as complimentary to the coal. Once they get into the fertiliser industry and bio-fuel industry — which they are — we’ll have to cart that to Gladstone. So we’re looking to having fertiliser and bio-fuel on the coal line. SBN: Many are predicting a considerable slowdown in the development of the Surat Basin. What do you see is the immediate future of the

ATEC chairman Everald Compton is fighting for the Federal Government to kick start Surat Basin coal mines. region? EC: The whole world is in a tough time and it will get worse. I don't see this recession ending until 2011 — 2009 and 2010 will be rough years. But the Surat Basin won't be any worse than anywhere else in the rest of Australia — the impact is nationwide. SBN: So in that respect, what is the immediate future of the Surat Basin Railway? EC: As far as I am concerned, I am going to push forward through to 2009 and 2010. This is potentially one of the great growth areas of Australia and no government yet has ever given it serious consideration.

We had to push government kicking and screaming to get the Surat Basin Railway up. The people of this region backed us. We've got where we are in the Surat with no government backing and we'll get there without their help. SBN: The EIS is out for the Surat Basin Railway and seemingly in the hands of the coal miners. Where to now for Everald Compton? EC: I have to win the battle for dual gauge which is vital and which I will win. And we have to get government investment to help these industries proceed through the recession. I see that as my biggest challenge.

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Surat Basin NEWS Thursday 26 March 2009

LETTERS TO THE EDITOR EMAIL: editorial@suratbasin.com.au POST: 12 Mayne Street, Chinchilla, 4413

LETTERStotheEDITOR

Surat Basin NEWS Protect prime agricultural land

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

Editorial

It is not just all doom and gloom The Surat Basin is facing its toughest test with the global recession. Coal mines may be delayed, infrastructure scrapped and investment held back. Not all is lost though. Coal seam gas and underground coal gasification producers are pushing ahead unabated. They are being driven by growing demand for energy around the world. For an example, look no further than Arrow Energy. That company’s workforce will double in three years as it races to have coal seam gas flowing to an LNG plant at Gladstone. With a growing workforce will come massive investment into local communities. Arrow is not alone with another three companies planning similar projects. It is easy to get carried away by the doom and gloom of the global recession but for good news just take a look out your back door. Coal seam gas is booming and it is from the Surat Basin where most of the action is emanating.

BY John Farmer editorial @suratbasin.com.au

LETTERS to the editor Address to: The Editor Surat Basin News PO Box 138 Chinchilla 4413 Email to: editorial@suratbasin.com.au

Sir — Food and clothing were rationed during the second World War with ration books being issued in 1942. Those were difficult times, when people went without. Droughts have caused food shortages worldwide. Today the Labor Government are willing to sacrifice prime agricultural land on the Haystack Plain for a short term gain. Food security does not appear to be on their priority list. Will the Labor Government make headlines by creating a food shortage, with the sacrifice of this fertile land and other prime agricultural land? We need food for life – we need prime agricultural land to produce that food. With very little to eat, people thought bread and dripping was quite nice — meals of hardship were endured. When you are ‘at the coal face’ please consider how you and your family will manage, if you are required to use a ration book. Cathy Wegener Brigalow

Against the sacrifice of farm land Sir — To everyone concerned about the future of agriculture and food safety in Australia. With this letter, I sincerely hope to draw attention to the very worrying development occurring here in western, and south western Queensland. We are farmers in the Darling Downs district, and I am sure a lot of people have been made aware of the ongoing debate in regards to the Queensland Governments intention to grant mining leases over this prime farming country. As the economic crisis

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Sir — My dictionary tells me that to co-exist means “to exist together at the same time or in the same place”. Kerry Shine and Anna Bligh along with their colleagues keep telling us that mining and farming have co-existed for many generations, and they are quite correct if they are referring to “existing together at the same time” but way off the mark when it comes to “in the same place”. The two industries are diametrically opposed. One cannot possible mine the ground, drill, bore or punch it at the same time as cultivating it for the production of food. There is ground that can be mined with widens, sadly, short-sightedness takes precedence and nobody wants to think of the pending disaster, which will inevitably occur by destroying this highly productive land. Maybe the Federal Government needs to reconsider its approach to long term viability of the Australian economy; Australian agricultural products enjoy a good reputation worldwide so far, should we not build on this

minimal damage to anything. There is ground that can be mined and rehabilitated to a percentage of its former usefulness but never to its former state. And there is ground that mining should walk away from and leave for farming only. Or have the politicians and miners found some way for us to exist on coal dust and stale air? I would like Mr Shine to give an example of the two industries co-existing in places such as the Haystack Plain or any highly productive food growing area of this State as is proposed by the government through Tarong Energy on-selling MDL383. Coral Ellis Warra

rather than continue to exploit our mineral resources like a third world nation for short term gain? I am acutely aware of the many short lived benefits which the mining industry has provided for the Australian economy, in fact, Australia has managed this severe economic crisis relatively well, thus far, because of it. But I believe very strongly that we should not sacrifice our very best

farming land, it is too precious, it can never be replaced. Which are the Federal Governments views on on safe food supplies? Is there any foresight? Or is the general view such, that we may import our main food supplies from other countries, if need be? If so, what are the implications for Australia? Irene Meyer Warra

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Fighting through

Protecting locals

Striking a balance

Surat’s place as a major energy hub assured despite global trade uncertainty Michael Roche, QRC

Small business needs assistance to train and retain staff through mining boom Bruce Scott, MP

Council seeks to find balance between region’s mining and agriculture Cr Ray Brown

Energy demand helps overcome tough times Despite the current uncertainty surrounding global trade, the Surat Basin's confirmation as one of the Asia-Pacific region's major energy hubs is assured. While people in developing countries aspire to standards of living that we in the developed world take for granted, energy demand will continue to grow. Long-term forecasts by the International Energy Agency point to about 1.4 billion people still being without electricity by 2030 unless significant policy changes occur to make energy more readily available in the developing world. By 2030, the IEA says that global electricity demand will be double what it is today and demand for primary energy sources – including oil, coal and gas — will be at least 60 per cent higher. The stall in energy demand created by the global financial crisis is self-evident at the local bowser,

COMMENT Michael Roche Chief Executive Queensland Resources Council

with prices at their lowest level for some time. However, predictions that this is anything other than a brief respite are rare with an energyhungry world placing increasing pressure on traditional energy sources and looking for alternatives. Throughout modern history, economic growth has gone hand in hand with increased energy consumption. In terms of energy potential, the Surat Basin's credentials are world class. With around six billion tonnes of quality thermal coals and thou-

sands of petajoules of coal seam gas readily accessible, the Surat is a natural focus for domestic and export energy market development. Maximising the benefits from this endowment presents a range of challenges that are in some instances new, but not insurmountable. For example, coal seam gas companies are working on a range of technical initiatives to deliver a positive return to the region from water produced during gas extraction. This work is essential support for a multi-billion dollar a year liquefied natural gas (LNG) export industry proposed for Queensland and the Port of Gladstone. The development of an LNG industry has been described as the most significant industrial undertaking in Queensland's history and will add another significant revenue stream to the state's economic base. Currently, minerals and

energy companies contribute almost 20 per cent of Queensland's gross state product and are responsible directly and indirectly for 12 per cent of its full-time equivalent employment. Data from the Australian Bureau of Statistics confirms mining, minerals processing and oil and gas production now directly responsible for the employment of 50,000 Queenslanders. The economic flow-on from these jobs is estimated to support another 216,000 jobs throughout the state. While a positive future for the Surat Basin is assured, we owe it to this and future generations to give the state's two most important export industries - mining and agriculture - every opportunity to succeed. From governments, that means a greater appreciation of industries' needs and their aspirations, backed by community-focused poli-

cies and commitments to encourage sustainable, long-term growth. I am pleased to report that with member companies, the QRC is continuing its work with rural groups, local and state governments to clarify land tenure processes to ensure that rights and responsibilities are understood and observed. The recent government announcement clarifying the status of overlapping underground coal gasification and coal seam gas tenures is an example of what can be achieved when competing interests focus on outcomes. We are also urging the next state government to give the highest priority to a regional plan for the Surat that gives every opportunity for local communities to become shareholders in the region's growth after decades of battling the drift of people and employment opportunities to the coast.

Local businesses need help meeting development demands As we continue to witness the increasing activity across the Basin, it is important that local, state and federal governments do all they can to ensure local businesses can meet the demands of the basin’s development. The skills shortage has in recent times been a major issue for regional communities, with many business owners finding it difficult to find people to fill jobs. This has been exacerbated by the

COMMENT Bruce Scott MP Federal Member for Maranoa

attraction of high wages for mining-related positions in northern Queensland.

Fortunately, the development of Surat Basin will see many expatriate locals return. To fully harness the Basin’s potential, we must begin to provide the necessary avenues for our next generation of skilled workers to learn trades relevant to the community’s industries. The change of Federal Government brought an end to the Australian Technical College initiative, which was replaced with a plan to intro-

duce trade training centres into schools. In welcome news for the Surat Basin community, the Australian Government has announced a Trade Training Centre will be based in Dalby. Training local young people for jobs within their own communities will end the need for fly in/fly out workers. Locally based resource companies must of course throw their support behind these schools

and students, not only through work experience offers and job opportunities but through support for the wider community. Development on such a large scale and its associated impact on communities calls for a certain level of social responsibility. We must continue to nurture these collaborative relationships to ensure the success of the Surat Basin and its benefit for all communities.

The need to strike a balance Agriculture and mining are equally important industries for our region and we need them both as one feeds us and the other is a major driver of economic growth. The challenge in front of Dalby Regional Council is to find a balance between protecting the rights of farmers against the potential impacts of the rapidly developing energy sector. Council is committed to protecting traditional farmland from being swamped by new mining developments. When considering the impacts that the resources boom is having on the region it is important that we find ways to ensure that land is better used and infrastructure is carefully planned for the mining industry's development. The coal seam gas industry continues to increase production and the emergence of underground coal gasification (UCG) companies has proven to be a welcomed strength in our region. The premier's commitment to UCG projects is a major boost for these developments. Environment impact statements have been released on the Xstrata coal mine at Wandoan and the Surat Basin Rail, and both these processes have been scrutinised by council staff. While these types of developments can be of huge benefit to our region through employment and growth, council is proactive in dealing with the associated impacts on the environment, housing, social needs and transport network. The upside of development in our region is the number of building applications that are presently being processed. However, this

COMMENT Cr Ray Brown Mayor, Dalby Regional Council

development is also placing considerable strain on the resources of local government, more particularly on planning. While the world financial crisis is in everyone's thoughts I believe as a region we are somewhat insulated from this. As development in the Surat Basin powers ahead the Western Downs is currently experiencing probably its highest ever growth. It is an exciting time to be mayor of a regional Council given the huge potential of our rural and energy sectors. Rather than alienating agriculture to benefit mining, it is vital that agriculture and mining coexist because they are two important industries our communities heavily depend on.

“Rather than alienating agriculture to benefit mining, it is vital that agriculture and mining co-exist because they are two important industries our communities heavily depend on.” Surat Basin NEWS Thursday 26 March 2009

PAGE 11

Surat Basin News

XSTRATA PROJECT THREATENED Coal mine may be scrapped

RESOURCES www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

ACLAND SET TO GROW: Toowoomba Regional Council touches down at New Hope’s growing coal mine.

Council visits mine for insight into planned expansion PAGE 14

Arrow sets sights on Gladstone Arrow Energy is expanding to meet a 2012 deadline for the supply of gas to a major LNG plant at Gladstone. PAGE 16

Policy ends dispute over Surat coal After months of dispute, State Government policy finally has UCG and CSM producers working side by side.

Toowoomba Regional mayor Peter Taylor on a recent visit to New Hope Coal’s Acland mine, which is set to undergo a massive expansion. mented that NAC is keen to work with the communities in which it operates and believes its operations can provide a

solid economic future for the region. An EIS is anticipated towards the end of the year.

Resources council says policy is a win-win Queensland’s peak minerals and energy sector body has welcomed the State Government’s proposed resolution of overlapping land tenures for coal seam gas and underground coal gasification developers. Queensland Resources Council chief executive Michael Roche said the announcement of a policy supporting the technical, environmental and commercial assessment of UCG pilot projects appeared a workable resolution to a complex

PAGE 12

set of competing interests. “Representing both UCG and CSG members, the QRC appreciates the complexities of accommodating new energy technologies under overlapping tenures covering some 24 million hectares of the state,” Mr Roche said. “The government’s decision to provide UCG proponents with the opportunity to prove up pilot projects in the Surat and South Burnett regions also has the effect of giving certainty to coal seam

gas operators proposing multi-billion dollar liquefied natural gas (LNG) projects. “They can now move ahead with confidence defining their coal seam gas reserves and establishing a whole new major export industry for Queensland.” Mr Roche said the transition of the UCG process from pilot stage to production held great promise for Queensland’s positioning as a technology hub for clean energy and chemical production.

Surat Basin NEWS Thursday 26 March 2009

“It’s important for the state and the nation that we take hold of this opportunity as soon as possible, as there is no question that we have two new industries here with enormous long-term potential,” he said. “The potential scope of the export LNG industry is staggering, with one company estimating new full-time employment at more than 4000 people during construction and weekly shipments valued at $60 million.”

RESOURCES

Mineâ&#x20AC;&#x2122;s future leaves farmers in more limbo Wandoan landowners have been thrust further into limbo with the $5 billion Wandoan coal project reportedly under threat before it even starts. Xstrata Coal revealed in a briefing to Federal Opposition Leader Malcolm Turnbull that it would scrap the coal mine if the Federal Government introduced its emissions trading scheme. The Wandoan project is expected to generate 1300 jobs during construction and another 900 once operational. It will also force the relocation of 40 landholders whose properties make up the 32,000 hectare mining lease. Darryl Waugh of â&#x20AC;&#x2DC;Wodongaâ&#x20AC;&#x2122; has yet to sell to Xstrata Coal but guesses at least 50 per cent of those affected have. He said the lack of definitive advice on the coal mineâ&#x20AC;&#x2122;s future was frustrating but most were resigned to the project going ahead. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no doubt the international monetary scene rocked them a bit but just how much, who knows?â&#x20AC;? he said. â&#x20AC;&#x153;And the ETS has also raised some concerns. â&#x20AC;&#x153;But we realise they have to look at it in the long term and not the

short term. â&#x20AC;&#x153;As landholders we are remaining focussed on it happening. There is a slim chance it will fall over but we realise theyâ&#x20AC;&#x2122;re determined to go ahead.â&#x20AC;? If the Wandoan coal project does not proceed then the $1 billion Surat Basin Rail faces the chop. Everald Compton, chairman of Surat Basin Rail joint venture partner Australian Transport and Energy Corridor, said he understood Xstrataâ&#x20AC;&#x2122;s stance. He said the Federal Government would make Australian coal uncompetitive if it went ahead with the scheme. â&#x20AC;&#x153;All theyâ&#x20AC;&#x2122;re doing is making Australian coal uncompetitive and Xstrata is saying â&#x20AC;&#x2DC;weâ&#x20AC;&#x2122;re being made to compete with one hand behind our backâ&#x20AC;&#x2122;,â&#x20AC;? Mr Compton said.

â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no doubt the international monetary scene rocked them a bit but just how much, who knows?â&#x20AC;? â&#x20AC;&#x201D; Landholder Darryl Waugh

Mining may not go ahead at Wandoan after Xstrata Coal warned the Federal Government it may have to scrap its $5 billion coal mine if an emissions trading scheme is introduced. The uncertainty has affected landholders whose properties are under threat.

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Surat Basin NEWS Thursday 26 March 2009

PAGE 13

RESOURCES

All systems go for Arrow aspirations With a 2012 deadline and the backing of global leaders, Arrow is quickly getting itself into position to drive a world first LNG plant

rrow Energy is ramping up production across the Surat Basin as it sets its sights on a 2012 deadline for a world first. The coal seam gas producer has an exclusive agreement with Liquified Natural Gas Limited to supply gas to an LNG plant at Fisherman’s Landing at Gladstone. With the backing of the world’s largest LNG player Royal Dutch Shell,

BY John Farmer editorial @suratbasin.com.au

Arrow must provide up to 90PJ of gas every year to the Gladstone plant. Over the next three years, the company plans to expand on its current resources to be in a position to open the valve and feed the plant, which will produce 1.5 million tonnes of LNG a year.

Arrow Energy external affairs manager Gareth Quinn said to meet its supply contract the company must not only expand its Surat Basin fields but also link into its Bowen Basin reserves. Its Queensland workforce is expected to double from 150 to more 300 over the next three years, a challenge in itself according to Mr Quinn. “Finding appropriately skilled staff is an ongoing challenge but we have

confidence in our recruitment and staff development capabilities,” he said. “We’re an industry leader with global employment opportunities and we don’t take

our reputation as an employer of choice for granted. “The global downturn is also increasing the size of the labour market. We’re proud to be in a position where we can offer reward-

ing and fulfilling career paths to candidates.” Mr Quinn said the major expansion was being aided by the expertise of Shell, which signed a $776 million agreement with Arrow last year.

“We’re an industry leader with global employment opportunities and we don’t take our reputation as an employer of choice for granted.” — Arrow Energy’s Gareth Quinnn

Impressive results in Arrow Energy last month announced a $241.3 million net profit for the second half of 2008. The company’s half year earnings before interest, tax, depreciation and amortisation was $359.2 million, a 16-fold increase on the prior half year. The company’s strong performance was underpinned by its transaction with Royal Dutch Shell which saw the oil giant pay $319 million during December 2008 as part payment for a 30 per cent share of Arrow’s interests in all of its Australian upstream tenements. Excluding non-operating items which includes the Shell deal, total revenue was $48.2 million, up 71%

on the comparative prior half year. Arrow’s cash on hand at year end was $297 million which has subsequently increased to more than $550 million since the completion of the Shell transaction early last month. Arrow chief executive officer and managing director Nick Davies said challenging economic conditions over the past six months made the company’s first half performance particularly impressive. “Arrow’s priority for the half year has been preparing for, and managing through, the global financial downturn. That meant ensuring the completion of the Shell deal and the cash reserve that it brought with it together with sharpening the operat

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Surat Basin NEWS Thursday 26 March 2009

RESOURCES

ARROW’S PORTFOLIO KOGAN NORTH Located 40km west of Dalby, the first gas from Kogan North was sold in January 2006. TIPTON WEST Located 20km west of Dalby, the first gas sales occurred in February 2007 as part of a 15-year sales contract to Braemar 1 and Braemar 2 power stations. DAANDINE Located 40km west of Dalby and the site of the Daandine Power Station, a 27.4 megawatt generator opened in December 2006.

Shell is a global group of energy and petrochemical companies that is a part owner of Aera, a multinational corporation oil company. Mr Quinn said Arrow was benefitting from the process and technology expertise used by Shell and Aera to optimise intense drilling programs in its US oil business. “Application of these

processes to intensive drilling campaigns has enabled Aera to accomplish huge cost and time savings,” Mr Quinn said. “This is a high priority for Arrow to bring this knowledge into our operations here.”

nlike many players in the resource sector, the global economic

“So access to good quality resources and lower cost materials will greatly help us as we move to develop our plans.” — Arrow Energy’s Gareth Quinn slowdown has not delayed Arrow Energy’s plans. Mr Quinn said the company’s financial discipline would see it through the downturn. “We believe the long

term fundamentals for growth in energy demand in Asia will remain in place and we expect the long term LNG market will have considerable growth both in volume and

price,” he said. Mr Quinn said the slowdown had actually freed up many of the resources that were once in high demand. “We have already noticed increased avail-

ability of contractors, consultants and people,” he said. “At the same time prices of some of the major components that we need have started to come off especially in the areas of steel and mobile equipment. “So access to good quality resources and lower cost materials will greatly help us as we move to develop our plans.”

spite of hard times ing business by reducing costs and optimising well performance. Combine this with Arrow’s continuing push into electricity generation and the company has recorded a strong first half, Mr Davies said. “Our half yearly result would have been even stronger had it not been for the planned shutdown of the Townsville Power Station for routine maintenance and capacity upgrade during September and October which caused major decreases in electricity sales and gas production at our Moranbah field,” he said. “With production returned to preshutdown levels, we also now look forward to the completion of the Braemar 2 Power Station which will

increase Arrow’s exposure to a buoyant electricity market,” he said. Arrow has a half share in the 450 MW gas fired power plant which will bring the company’s total net generation capacity to 375 MW when it is commissioned in May this year. Mr Davies said since the global financial crisis deepened last October, Arrow’s share price had been relatively stable to date compared to a 20% fall for the S&P/ASX All Ordinaries Index over the same period. “The world markets are struggling at the moment but Arrow continues to develop its business and create value for its shareholders.” he said.

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PAGE 15

RESOURCES

Resolution a boon for Queensland T

he elder statesman of underground coal gasification believes new State Government policy securing the industries place in Queensland was a boon for the domestic economy. Last month, policy was introduced to allow UCG to operate alongside coal seam gas projects — two industries that were competing for the same coal. Dr Len Walker founded Linc Energy and was involved in a UCG pilot burn at Chinchilla, which is today the site of that company’s demonstration plant. In February 2006, Mr Walker

formed Cougar Energy which is building a 400 megawatt power station near Kingaroy. After more than 20 years pioneering the technology in Australia, Mr Walker said he was pleased to see the industry finally gaining credibility. “I’ve been talking to the Queensland Government in one form or another about UCG as far back as 1988 and even more so prior to the Chinchilla project in the late 90s,” he said. “As far as I’m concerned, the level of interest at the moment and the level of debate, some of which has attempted to down

play our activities, simply means this industry is finally being taken seriously.” A PricewaterhouseCoopers’ report commissioned by Linc Energy last year predicted UCG could contribute $600 million a year to the Queensland economy within two decades. Dr Walker said UCG’s economic edge came from its ability to efficiently convert stranded coal to produce syngas for power generation and chemicals. He said most of the products produced by the industry would contribute to the Queensland economy, unlike LNG which was

mainly an export product. “We’re underpinning the long term stable supply and price of gas for industrial use in Queensland,” he said. At Kingaroy, Cougar Energy is advancing plans for its UCG power station. The company also holds leases around Wandoan and Dr Walker said planning

had started on commercial options. “Cougar Energy is definitely not heading south,” he said. “We’re extremely focussed on commercialising the technology in the form of a significant power project around Kingaroy and another significant project around Wandoan.”

“We’re underpinning the long term stable supply and price of gas for industrial use in Queensland.” — Cougar Energy’s Dr Len Walker

Chinchilla an option: Linc Linc Energy’s priority may still be South Australia but changing times in Queensland means Chinchilla remains an option. Chief operating officer Stephen Dumble said the events of the past month had consolidated the company’s place in Queensland. “We have always felt there is plenty of room in Queensland for a profitable UCG business as well as a very large CSM business,” he said. Mr Dumble said the South Australian project remained a pri-

ority but a commercial plant at Chinchilla was again a “real option”. If not our first option, than second,” he said. Linc Energy shares surged 38 per cent early last month after the company announced it had uncovered an extra 175 million tonnes of coal at its Chinchilla site. It may hold 775 million tonnes. The company also announced a dispute with coal seam gas companies QGC and BG Group over shared coal reserves had ended.

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Carbon Energy has successfully produced commercial gas from its trial at Bloodwood Creek in the Surat Basin.

Carbon Energy appears to be pressing ahead unabated with plans to transform a barren Surat Basin site into an industrial hub. Last month the company announced it had successfully produced commercial gas in a $20 million trial at Bloodwood Creek. Shortly after, the State Government announced policy to resolve conflict over overlapping coal tenements between underground coal gasification and coal seam gas producers. Carbon Energy managing

director Andrew Dash welcomed the State Government’s decision. “This policy decision will now enable us to execute our plans for the development of this resource with full confidence,” he said. The massive month for the burgeoning company ended with news its Bloodwood Creek resource had climbed 125 per cent — from 296.9 to 668 million tonnes. The resource is capable of supporting more than six world scale manufacturing

plants for more than 30 years. Carbon Energy plans to use syngas produced at its UCG site to fuel an ammonia plant and a separate plant. Mr Dash said the increased resource was further proof of the potential of the company at its Surat Basin site. “This highlights the size of the opportunity that Carbon Energy now has to monetise this huge resource as it pursues its strategy to enter the national markets for power generation and synthetic natural gas production,” he said.

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Surat Basin NEWS Thursday 26 March 2009

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RESOURCES

Resolution a boon for Queensland T

“We’re underpinning the long term stable supply and price of gas for industrial use in Queensland.” — Cougar Energy’s Dr Len Walker

SuratBasinDevelopments

Carbon’s massive month

4 LOTS ONLY Lots 35 and 36; 70 and 71

WERE $109,900 NOW $99,900

3 LOTS ONLY Lots 29, 30 and 33

WERE $89,900 NOW $84,900

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Carbon Energy has successfully produced commercial gas from its trial at Bloodwood Creek in the Surat Basin.

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COMPANIES

Easternwell Group leads the way in Surat Basin drilling As part of a joint contract with Santos worth more than $100 million, Australia's largest privately owned integrated oil and gas services company, Easternwell Group, recently deployed its second Advantage Driller to Queensland's burgeoning Surat Basin. Easternwell Group designed, engineered and manufactured the Advantage Driller in Toowoomba, one of Australia's first state of the art, technologically advanced coal seam gas drilling rigs. Further adding to its experience of building technologically advanced coal seam gas drilling rigs, Easternwell also recently deployed a coal seam gas drilling rig for Pangaea Resources to the Surat Basin. Easternwell Group, established in 1976 in Toowoomba, is Australia's leading integrated services company offering flexible, innovative and cost effective solutions to large oil and gas exploration companies and the wider energy industry.

Minister of Tourism, Regional Development and Industry, Desley Boyle, officially launched Easternwell's Advantage Series rigs late last year. “I'm having trouble thinking of words other than, wow,” Ms Boyle said. “What a huge coup this is for Toowoomba and the local industry. “This is a fine example of a company embracing the Smart State concept.” Earlier in the year, Easternwell Group was presented with the Premier of Queensland's Smart Award mainly as a result of the innovation and superior safety features of the Advantage Driller. Easternwell Group assembled and commissioned a new hydraulic single land rig on behalf of Pangaea Resources. It was an innovative concept to assemble and tailor this type of rig for coal seam gas drilling as it is normally used in mineral drilling applications. Key features of both the

Advantage Driller and the hydraulic single land drilling rigs include automated pipe handling and rig floor machines, high mobility for ease of movement, integrated additional services capabilities and the elimination of unnecessary handling of equipment and working at heights. With each new rig build, Easternwell Group focuses on improving safety and efficiency on all designs and this is particularly evident with the Advantage Driller, one of the safest drilling rigs available on the Australian market today. In addition to drilling, Easternwell Group also offers contractor services in well servicing, snubbing, catering, mobile camps, engineering, technical services, logistics, training and construction. As an integrated service provider, Easternwell Group has the resources, expertise and industry experience to provide clients with cost effective, environmentally responsible solutions.

Easternwell Group deployed its second Advantage Driller to the Surat Basin recently.

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COMPANIES

Going global to succeed in local conditions Weatherford is one of the world’s largest diversified upstream providers of oil field services, with one of the industries broadest portfolios of products and services. Today Weatherford is represented by more than 43,000 employees in 100 countries, supporting more than 800 service bases around the world including 10 bases in the Queensland region. “...We have adaptWe a t h e r f o r d ed to the rapidly has been operatgrowing demands ing in central Queensland’s of the Coal Bed harsh and unique Methane by setting environmental conditions for up a greater range more than three of services and decades. This experiworkshops...” ence has driven it — Mike Wagner to continue to invest in research and development of technology and equipment in an effort to adapt to the climactic extremes. Mike Wagner, business unit manager for Weatherford’s artificial lift systems, said oil field equipment had been adapted to work more effectively for clients and their evergrowing needs. “Clients who are also demanding more environmentally conscious solutions,” he said. Some of the unique features of the equipment which include the new enclosed power hydraulic skid are variable speed control and engine cooling systems. They also include hydraulic cooler rated for maximum flow of the system operable in extreme temperatures and environmental spill containment. The solutions are innovative and adapt to the needs and concerns of clients mainly within the Surat Basin. Weatherford’s technology originates from around the world but it is local knowledge and adaptability which has made it viable for Queensland conditions. The Weatherford Wireline Services business unit is continuing to adapt to the changing market with the development of the new coal bed methane units and slimline units. These new vehicles have implemented all the newly regulated safety requirements. These fit for purpose units show Weatherford’s ability to adapt to changes in the market requirements.

Weatherford adapts its technology to meet market requirements.

POSITIVE GEARED SURAT BASIN PROPERTIES With interest rates at record lows, there has never been a better time to invest! Blue Horizons are property consultants, specializing in the Surat Basin clean energy precinct, 210 km west of Brisbane. Areas we service are, Toowoomba, Dalby, Chinchilla & Miles. These towns are undergoing a massive build up of workers and their families. There are projections of up to 16,000 new jobs & the flow on effect of up to 100,000 new residents in the area by 2016. There are 100 Billion dollars in diverse resource projects planned and commencing in the Surat Basin. Clean gas fired power stations, thermal coal, new rail lines, new gas pipelines, coal seam methane, gas to liquids plants, ethanol refineries, agriculture and a massive new cattle feed lot are just some of diverse drivers to the booming economy of the Surat Basin. Check out info on our website under: Dalby/Surat Basin. It’s a familiar formula, lack of quality housing + plentiful high paying jobs causes rapid capital gains and skyrocketing rental yields!

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PAGE 19

COMPANIES

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SURAT BASIN ENERGY SUPPLYING GROWTH TO QLD

Safety and efficiency the name of Bullivants’ game Since 1891 Bullivants has played a major part in pioneering the production, distribution and servicing of lifting, rigging and safety gear right around Australia. Now under the leadership of Brad Redgrave, Bullivants has opened its doors in Toowoomba to service the local area and all around the Surat Basin. Its products include the largest range and inventory of wire rope, chain and fittings, fibre rope, hoisting, materials handling equipment, load restraint rigging hardware and lifting slings. Bullivants also has full capability to carry out testing and inspection of these products to ensure customers are always working safely and meeting their Australian standards requirements.

The company has its own 30 tonne mobile facility for proof testing of rigging equipment and serial hoists. There is also the new Bullivants Electronic Asset Management (BEAM) which is leading edge technology to ensure all visual inspections on lifting, rigging and height safety gear are carried out professionally, efficiently and with minimum disruption to the day to day running of a customer’s business. This system allows Bullivants 24 hour access online to all of its registers enabling instant access to information required to enable compliance to the standards to be maintained. Come and visit Brad Redgrave and Matt Sweet at Unit 4, 311 Taylor Street, Toowoomba and see how they can help you today.

Baker Rossow provides experienced engineering consulation for all size projects, throughout Queensland and NSW. Our team covers all fields of engineering, including civil, structural, geotechnical, and project management. Servicing Chinchilla, Miles, Dalby and Roma weekly • Urban & Rural Sudivisions • Land Development Estimates • Town Planning • Fire Mains, Water, Sewage • Soil Testing and Footing Design • Shops Offices and Commercial • Motels, Units and Houses

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Surat Basin NEWS Thursday 26 March 2009

Surat Basin News

READY TO OPEN THE VALVE Coal seam water almost secured

INFRASTRUCTURE www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

STEP FORWARD: Project expected to provide job security

PAGE 22

Rail EIS out but potential not realised ATEC chairman Everald Compton believes the State Government is refusing to realise the full potential of Surat Basin. PAGE 23

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Mr Maxwell said QGC would make an initial $5 million contribution towards management of the Curtis Island Environmental Management Precinct, created when the Gladstone State Development Area was extended to the island in 2008. “This contribution enables the environmental values of the precinct to be studied and for plans to be developed and implemented in consultation with the community to protect these values,” he said.

Surat Basin NEWS Thursday 26 March 2009

After hours Lyle Purnell 4662 7638 Mobile 0427 582 321

INFRASTRUCTURE

SBR leaps government I

nland rail pioneer Everald Compton claims a backward step from government has almost cancelled out a leap forward from private enter-

prise. Surat Basin Rail released the environmental impact statement for the 210km missing rail link between Wandoan and Banana. The $1 billion line would allow Surat Basin coal producers access to the Port of Gladstone and proposed Wiggins Island Coal Terminal. The EIS outlines the potential for both narrow and dual gauge track but Mr Compton is concerned by governments’ hesitation to invest in the line. Mr Compton claimed earlier this month the State Government had let the Surat Basin down by not committing to a dual gauge track. “At the moment it’s narrow gauge because of the decision of

Australian Transport Energy Corridor chairman Everald Compton and Dalby Regional mayor Ray Brown meeting last month to discuss the future of the Surat Basin Railway.

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“It just seems like these blokes are antidevelopment.” — ATEC ‘s Everald Compton

BY John Farmer editorial @suratbasin.com.au

the government but we want to change that and there’s still plenty of time to change it,” he said. “We just went ahead because we wanted to progress. In the EIS, there’s not much difference between standard gauge and dual gauge.” Mr Compton intends to fight for the public finance needed to upgrade the line to dual gauge. “I just don’t know why we have to fight these battles,” Mr Compton said. “It just seems like these blokes are anti-development.” Mr Compton said if it was not upgraded it would be unlikely the line would be extended south-east of Wandoan through to the Charlton Intermodal Freight Hub. From there plans are to construct the Border Railway — from Toowoomba and Moree — and eventually to form the Australian Inland Rail Expressway linking

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Surat Basin NEWS Thursday 26 March 2009

INFRASTRUCTURE

forward but stays put Melbourne and Darwin. The joint venture partners behind Surat Basin Rail include Xstrata Coal and Australian Transport Energy Corridor. Mr Compton said coal miners should not have to, and were unlikely to, finance the line’s upgrade to dual gauge. “The mines don't want to have to pay for an extra bit of steel," he said. Many of the 16 coal mines expected to start or expand along the route of the Surat Basin Railway have been delayed by the global economic downturn. But Mr Compton, a long time advocate of the project, said the rail project had not been threatened and would get the necessary finance to start. “Despite the recession, despite coal mines not starting, we're proceeding to get to financial close as quick as we can," he said. “We're not going to have any trouble getting our finance for the railway though we'll have to come up with a fair bit of equity but we've got plans for that.” Mr Compton admitted he was

“Despite the recession, despite coal mines not starting, we're proceeding to get to financial close as quick as we can.” — ATEC’s Everald Compton disappointed by the lack of faith shown by government in the project and the potential of the Surat Basin. He called on the federal and state governments to invest in the region and help coal mines start. “If governments will do that there will be no hold up of the Surat Basin Railway,” he said. “The so called Rudd Bank has to cover the financing of the resource industry and if we have that we can come out of this recession in a real good position.”

BEHIND THE EIS

Thousand workers need for link The 210km missing link between Wandoan and Gladstone is expected to take three years to build with a workforce of around 1000. Workers camps are to be located at three different locations along the 60-metre wide corridor. ATEC chairman Everald Compton said employment generated by the project meant it deserved more support from all tiers of government. “Once we get started there's another thousand

jobs,” he said. “We think we should be one of the top priorities of government but we're not.” The project will have the capacity to transport up to 42 million tonnes of coal a year. This will require up to 24 train movements per day, 320 to 340 days a year. Trains powered by diesel could be as much as 2.5km in length. The preferred alignment contains at least 140 crossings and more than 40 bridges.

It runs within or parallel to a number of existing roads such as Nathan Road, Eidsvold-Theodore Road and the Leichhardt Highway. The corridor cleared for the missing link could be used for several pieces of infrastructure, such as a water pipeline from the proposed Nathan Dam and gas pipelines to Gladstone. Commissioning of the rail line is proposed to take three months with the track to be completed by March 2012.

WORKING TOGETHER. To Build Tomorrow. Everald Compton believes delays in the mining industry will not halt the financial close of the Surat Basin Railway.

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PAGE 23

INFRASTRUCTURE

Miles stalls but remains on target to flow

NAVIGATING ROUGH WATERS

Arrow Energy’s Gareth Quinn at an evaporation pond at the Daandine gas field. That water could by the end of the year be reaching the homes, gardens and businesses of Dalby.

After years of navigating changing tides and uncertain swells, Dalby could finally be within reach of a rich and previously untapped water supply. aste water from gas fields could be flowing into Dalby homes by year’s end. Dalby Regional Council is expected to sign an agreement with Arrow Energy this month to purchase four megalitres of saline water a day from the Tipton West gas field. The water would be piped from the gas field to an Arrow Energy pretreatment facility before being treated at a reverse osmosis plant. Tenders to build the plant closed this month and Dalby Regional Council utilities spokesman Cr Bill McCutcheon said time was of the essence. “It’s tight at the moment,” he said. “There’s pressure on

Dalby’s water coming from the growth of the town and demands from the (workers) camp and bio-refinery.” The $21 million project was announced in 2006 backed by an agreement between the three tiers of government and Arrow Energy. Cr McCutcheon said council amalgamations and a lack of expertise in the area had led to delays. “It’s been an evolving project,” he said. “The original plans had to be modified considerably — where the water was coming from, the level of treatment needed. “There was also a lack of expertise considering this is the first time a project like this has been undertaken in Australia. “Not many people on

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staff are skilled to handle the negotiations and planning we needed done.” Dalby’s water treatment has been facing increasing pressure over the past year and the council has been forced to implement more stringent restrictions. Cr McCutcheon said the coal seam water would ease that pressure but would unlikely mean a complete end to restrictions. “We have never envisaged any of our communities going on to fully unrestricted water use because of the prevailing shortage of water right across Australia,” he said. Cr McCutcheon admitted Dalby residents would likely face extra charges for their water but said the council

would attempt to minimise the rises. “I would think that price rises will be inevitable over the years because the cost of treatment is certainly not getting any cheaper,” he said. The four megalitres a day is just a small portion of the water Arrow Energy is harvesting as it expands its Surat Basin gas fields. External affairs manager Gareth Quinn said

the majority of Arrow’s waste water would eventually be put to beneficial use. The company has been investigating the water’s use in crop irrigation, coal mining and aquaculture. “Many other uses will be found for the water,” Mr Quinn said. “This new and abundant water supply will allow local aquifers to recharge and effectively drought-proof the wider Dalby community.”

“This new and abundant water supply will allow local aquifers to recharge and effectively drought-proof the wider Dalby community.” Arrow Energy’s Gareth Quinn

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Surat Basin NEWS Thursday 26 March 2009

The supply of coal seam water to Miles could be expedited because of the lessons learnt 100km east. Dalby Regional Council utilities spokesman Cr Bill McCutcheon said the Miles project had been delayed with BG Group’s purchase of Queensland Gas Company. He said negotiations on the project, which started in early 2007, should recommence next month. “The changeover to BG, although not changing the intent of the project, has brought about a change in Cr Bill staff,” he said. McCutcheon: “At the confident moment, Miles will flow. they’re being brought up to date and we expect to resume negotiations in the next few weeks.” Cr McCutcheon said lessons learnt from Dalby’s project should make the supply to Miles more accessible and less complicated. “It’s a complicated process but what we’ve learnt from arranging Dalby’s project will certainly be beneficial pursuing similar agreements in Miles and Chinchilla,” he said. Cr McCutcheon said from a government and private company perspective, the greatest challenge in dealing with coal seam water was its abundance. “We’ve got a super abundance and trying to see it used beneficially is difficult,” he said. “Both the companies and all levels of government aren’t sure what to do with it. “Everyone wants to see it used beneficially but we need to be able to keep it to a cost that can be accommodated by potential users.”

Surat Basin News

QGC TURNS ON THE DRAMA More than 2500 flock to Windibri.

THE PEOPLE

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

PAGE 26

QGC appoints new director New managing director brings wealth of international experience in coal seam gas industry to Queensland Gas Company and its LNG aspirations. PAGE 26

From the farm to Arrow’s growing fields Robert Garvey used to work on a farm with grain and cattle. Today he is behind Queensland’s fastest growing industry.

Ready for another round of scholars Origin skills program expands as it works its way into another highly successful year

pplications have just closed for Origin Energy's Community Skills Scholarship program. The 2009 program has been expanded from eight positions to 12 to cater for increasing demand for the

Origin Community Skills Scholarship recipient Naomi Bowman Hair@Dalby. Applications for 2009 scholarship places have just closed. munity's capacity to build and retain skills across all areas of business. “Financial considerations often impact on the decision to take up a trade, and these scholarships provide an extra incentive to get started, with ongoing support to help apprentices see their study through until the end,” Ms Clarke said. Naomi Bowman, Dalby hairdressing apprentice and 2008 Community Skills Scholarship recipient, said: “I had to move out of home to work and with paying rent it just makes it a bit easier to pay for tools and things for work.” Origin has committed up to $13,500 per scholarship recipient, with added incentives for mature-aged applicants, and

from

bonuses for apprentices who stay with their employer after completing their trade. The funding is paid in installments to match completion of course competencies and can be used to purchase items like textbooks, tools and uniforms. Recipients are also matched with local volunteer mentors to help guide them through life and career decisions. Scholarships are open to first year apprentices taking up a trade within the Roma, Miles, Chinchilla or Dalby districts. The Community Skills Scholarship program forms part of Origin's commitment to the local community. To find out more, visit originenergy.com.au/community.

“Over the past two years, local apprentices and business owners have shown a huge amount of interest in the program, and we've received a lot of positive feedback from past recipients.” Origin Energy’s Sarah Clarke

Western Downs proves to nation it has the skills Communities from Dalby to Roma recently gained national attention at the Big Skills Conference hosted by the Department of Education, Employment and Workplace Relations at the Sydney Convention and Exhibition Centre. Western Downs Skills project officers Beth Wood and Megan McNicholl were invited to speak on the role of skills and regional development, pro-

viding practical examples through their work with the Western Downs Skills Formation Strategy and the COAG-funded Skills Project over the last five years. The Big Skills Conference, the first major national conference on skills and training hosted at a federal level in recent times attracted more than 1300 participants and brought together major national and international players

with an interest in skills and training. While keynote presentations were underpinned by the impact of the current global economic downturn,n speakers emphasised repeatedly the need for ongoing investment in workplace development, cautioning against any move away from building our skills. Key messages from the conference included: • the choices we make now

Surat Basin NEWS Thursday 26 March 2009

will form the foundation for the future • now is a critical time to invest in long term capability • challenge of balancing basic skills with the ability to take up unknown opportunities • retraining retrenched workers for jobs that are not yet known • emerging opportunities in ‘green' industries and the need to educate workers and young people to take up green jobs.

PAGE 25

PEOPLE

QGC managing director appointed

Robert Garvey works as production supervisor at Arrow Energy’s Kogan and Daandine gas fields.

From the farm to the fields Robert Garvey may have stayed in the country but three years ago he made the move on to a very contemporary work site. In late 2005, Mr Garvey went from working on a cattle and grain property to become a production monitor with Arrow Energy. Today, he is pro-

duction supervisor for the coal seam gas producer’s Kogan and Daandine gas fields. Mr Garvey sums up his time with Arrow in two words — “rapid growth”. “Initially we had 15 wells at Kogan, today there are 59. Tipton has grown and Daandine is

growing progressively,” he said. “It’s just been constant growth.” Mr Garvey is responsible for maximising production wells — keeping them online and flowing to allow Arrow to meet sales nominations. His role takes him to all areas of the company’s gas

fields, production areas and procedures. “It’s more or less a coordinating role between operations on site to ensure site safety is up to scratch and liaising with drilling developments,” he said. “It’s all about production to sales.”

BG Group last month announced that Catherine Tanna will take up a position as executive vice president and managing director, Australia. In this role, Ms Tanna will lead QGC, the BG Group subsidiary based in Brisbane. Ms Tanna is currently the executive vice president, gas and power with Shell. She is a member of the Shell Gas & Power executive committee, most recently responsible for Shell's Liquefied Natural Gas gas transmission and power generation interests across Africa. She was previously the vice president responsible for Shell’s gas and power business interests in Japan, Korea, China, Taiwan and the Sakhalin 2 project. Between 1991 and 1998 Ms Tanna worked for BHP Petroleum in a number of exploration, production and commercial roles. Originally from Queensland, she is a qualified solicitor in Australia and England. In her new role, Ms Tanna will have strategic and operational oversight of all of BG Group’s interests in Australia, including the development of QGC’s coal seam gas resources, downstream market opportunities and the new Queensland Curtis LNG export facility near the port of Gladstone. She will be a member of the BG Group executive committee and will report directly to the chief executive, Frank Chapman. “Catherine has a wealth of international experience in the gas industry, combined with a deep-rooted understanding of the Australian energy sector,” Mr Chapman said. “I look forward to her leadership of our QGC business and the Queensland Curtis LNG project as well as her contribution to BG Group’s strategies and plans.”

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SURAT BASIN NEWS NEXT EDITION 25 JUNE PAGE 26

Surat Basin NEWS Thursday 26 March 2009

COMPANIES

Bowen Basin slump eases skill shortages on the Surat Redundant mining, gas and resource sector workers from the Bowen Basin are just some of the people interested in taking advantage of the Surat Basin’s numerous employment opportunities. With an unemployment rate of 2.1 per cent, the Roma area is one of the few regions with a steady rate of employment opportunities, making it an attractive location for prospective job-seekers and their families. Maree Petty, Western Downs Skills project officer for the Roma area, said she had been fielding inquiries about job prospects and the advantages of relocating to Roma. “Because the Surat Basin is one of the major gas and oil centres in Queensland, a large volume of skilled workers, recently retrenched from the mining industry, are looking into what opportunities there are in the area,” she said. “There has been particular interest from workers made redundant from the Bowen Basin.” Earlier this month, Anglo Coal announced it would lay off 650 staff and contractors – the most recent in a string of job cuts in the region. Mrs Petty said she’d had interest from a wide range of professionals, including engineers for the mining sector recently made redundant, but the job opportunities do not stop there. “Employers and industry advise me of their employment opportunities and I also update the general vacancies for the region every Monday morning; there is usually a

BY Ryan Groube

steady rate of 80 to 120 fulltime employment opportunities in the area,” she said. “Those jobs range from labourers, plant operators, accountants, engineers and professionals, and there are another 20 to 30 apprenticeships available at any one time.” Mrs Petty said attracting workers to the Surat Basin was one of the main functions of the Western Downs Skills Project. “People from coastal areas are usually unaware of what Roma has to offer in the way of local services, so when they ring and find out about the employment opportunities it becomes much more appealing,” she said. “Also, industry-specific skillsbased and management training has begun to take place within the wider Roma area.” Most training can be sought from within the local community and its training providers. The Western Downs Skills project will continue to provide linkages to industry-driven training programs. “Further funding will become available to those employers that need to take the next step up the supply chain and provide their services to the major gas and oil players within the area,” Mrs Petty said.

Col West is working at the coal face to get investors and homebuyers off to solid starts.

Slice of Surat for sale Col West is spreading the word on the Surat Basin while providing a solid foundation for homebuyers and investors. Mr West is sales manager of Chinchilla’s Surat Basin Homes, the reincarnation of Hotondo Homes. The fourth generation Chinchilla local has spent the last three years watching the region attract unprecedented interest. “Investors are particularly interested in the Surat Basin because it is becom-

ing more widely known throughout Australia,” Mr West said. “They know it’s the country’s next major energy province and they know there’s a lot of growth left in it. “We’ve only just touched the surface.” Mr West believes Surat Basin Homes can offer investors and home buyers piece of mind. From 30 custom plans, the company offers a fixed term

contract for homes designed for their flexibility, comfort and investment return. “They know exactly what they’re getting themselves into and they know it’s coming with quality workmanship and inclusions,” he said. “There are no nasty surprises and they can build with confidence, knowing their investment is secure.” Mr West said the time was right to invest in the Surat

Basin or just to take a leap into the property market. “It’s a buyers market at the moment, that’s fore sure,” he said. “Interest rates are low, the region is set for long term growth and almost inevitably after a downturn the economy is sure to come bounding back. “Those who invest now will surely look back in five years time and be happy they did.”

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PAGE 27

PEOPLE

Dalby Regional mayor Ray Brown, deputy mayor Mick Cosgrove and his wife Cheryl following the performance.

Pete Murray and family relive the singer-songwriter’s rise to fame at QGC’s Drama at the Gasfields. Dan Robinson of QGC, Dalby Regional Cr Bill McCutcheon and Chris Williams of QGC.

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Surat Basin NEWS Thursday 26 March 2009

PEOPLE

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Fay and Bruce Moore of Chinchilla settling into a shady spot for the performance of Opportunity.

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PAGE 29

Surat Basin News

NEW HOPE COAL BACKS CONFERENCE Acland coal miner supports Rotary International

THE TOWNS

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

PLANNING FOR THE FUTURE: The Dalby Chamber of Commerce and Industry has more than just the present on its mind

Chamber looks beyond now to plan for long term issues PAGE 38

Roma ready for Easter Easter in the Country is back and support from the gas and mining sector is ensuring this year’s celebrations are going to be the biggest yet. PAGE 34

New Hope invests in its communities The company behind the Acland coal mine has signed on as principle sponsor of a major Rotary event.

“I believe our community is now looking into the medium to longer term issues rather than catering to the short term influx of workers during the development stage.” — Michael Webber

Santos sculpts centre’s place in community Santos has committed $10,000 for the placement of an original sculpture to be placed outside the Roma on Bungil Gallery. A call for submissions has been made for artists who feel they could contribute to the artistic space and help identify the building as a cultural hub. “What we’re looking for is a sculpture that will be placed in front of the Roma Community Arts Centre that will help identify it as a centre for art,” Roma on Bungil Gallery management committee member Barry Braithwaite said. “It’s a public art piece, and

PAGE 30

it will really be there to identify and brighten the frontage of the building.” Submissions should reflect the rural nature of the area with an “innovative and symbolic interpretation rather than a literal and figurative manner”, although concepts involving bottle trees will not be considered. Judges are looking for a durable, three-metre-high, self-supporting sculpture and require little maintenance. Santos will be providing the gallery with $10,000 a year, for three years to promote art in the area. “This year, $10,000 will be

awarded to the winning artist, but in the following two years the prize money will be $5000, and the other $5000 will be retained by the gallery to pay for the cost of bringing other art exhibitions, to the benefit of the community,” said Mr Braithwaite. Mr Braithwaite said Santos’ support was a big boost to the gallery.

“Whilst we get a lot of great support from local businesses and organisations, we were looking for a major sponsor, and Santos was very keen to support us,” he said. Expressions of interest must be received by mail no later than 5pm on June 30. For further details, go to www.romaonbungil.com.au or contact 4622 2793.

“It’s a public art piece, and it will really be there to identify and brighten the frontage of the building.”

Surat Basin NEWS Thursday 26 March 2009

— Barry Braithwaite

TOWNS

Bunny gets the sack as Roma readies for Easter Roma has given the Easter bunny the sack, promoting giddy goats and friendly faces in funky floats to entertain the hordes of visitors attending this year’s Easter in the Country. Roma’s annual Easter Festival, held from April 8 to 13, sees Roma spring to life with the vibrant street parade — the unofficial but symbolic opening of the event to be run from 9am on April 11. One of the traditional highlights of the festival, local businesses and groups spend months developing the perfect entries. Local Peter Flynn attended the inaugural Easter in the Country 30 years ago and singled out the street parade as one of his personal highlights. “The way locals have embraced the street parade over the years is the reason it continues to be one of the highlights of the festival for many people,” he said. For the more mellow members of the family, Easter in the Country also provides an array of cultural and for all the women out there, unique shopping opportunities. The always popular bush poets return this year as does Roma’s famous goat races, the

Mark Slater, Roma Regional Council tourism development officer Perry Bacon and Easter in the Country president Lyn Kajewski welcome all to experience the sights at sounds of Easter in the Country. country markets will be operating and guided tours of the towns and key tourist destinations will be run over the course of the festival. Easter in the Country president Lyn Kajewski said the support the festival had received from the oil and gas sector, particularly Origin Energy, had been fantastic. “I would like to acknowledge the support of Origin Energy,

their three year commitment to the festival has not just come in monetary value but they have also committed people to work on the ground with the dedicated volunteers,” she said. “It is great to see Origin get behind the event as it really reinforces their desire to contribute to the healthy and sustainability or rural communities.”

New Hope brings Rotary International to town As part of its commitment to supporting the communities in which it operates, New Hope Coal Australia (NHCA) has signed on as principle sponsor of the 2009 Rotary International Annual Conference for the 9630 District. The district encompasses Rotary clubs from Ipswich, Toowoomba and the Darling Downs and further west to St George and Charleville. Up to 1300 members from 48 Rotary Clubs within the region will attend a three day conference at the Sunshine Coast, designed to provide members with information and updates on Rotary Club community services and initiatives. New Hope Coal Australia general manager marketing Chris Hopkins said Rotary and its annual conference were well aligned with NHCA’s own community investment commitments. “Rotarians work to provide support to communities in areas such as youth development, health, environment and sustainability and volunteering,” he said. “This is well aligned with our own community investment program which aims to support the communities in which we operate in areas such as education, environment, culture and social.” As an employer of over 430

people within the region, delivering local outcomes for communities within the Darling Downs and West Moreton areas is a focus for NHCA, according to Mr Hopkins. “Many of the Rotary Clubs participating at this conference operate within the same communities as us, so we see real value in providing support to their endeavours,” he said. NHCA is an energy company with open cut coal mines at Acland on the Darling Downs, and the West Moreton area near Ipswich. Twenty per cent of the company’s coal produced for electricity is consumed within the local region – NHCA is an exclusive supplier to the Swanbank Power Station. “We recognise that sustainable development is not just about economics and the environment. “It’s about working with communities and achieving mutually beneficial outcomes,” Mr Hopkins said. In the 2007/08 financial year, NHCA contributed over $85,000 in financial donations and sponsorships. A significant amount more was also committed through in-kind contributions such as materials and other resources.

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Deal with the company that does the lot! S & J STIRLING PTY LTD 624 Alderley St, Toowoomba, Q 4350

(07) 4630 2733 www.transtatehomes.com.au S & J Stirling Pty Ltd

QBSA No 1114141

6 YEAR STRUCTURAL WARRANTY

NEW FLEET DRY HIRE FRANNA'S AVAILABLE • All Terrains 35 to 220 tonne • Heavy haulage

• Franna's 15 to 25 tonne • Specialised transport

07 4634 8777 Travis: 0408 018 509 FAX 07 46348677

24 Hour 7 Days 1981311aa

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

NEW DEPOT OPENING SURAT BASIN SOON Surat Basin NEWS Thursday 26 March 2009

PAGE 31

Weâ&#x20AC;&#x2122;ll Get You Moving Faster

While other major fuel suppliers are scaling back their operations in the Surat Basin, independent Caltex distributor Country Petroleum sees an exciting future as the leading petroleum products supplier to the area.

"That's money saved right there." A significant contributor to Country Petroleum's growth is a dedicated and committed Supporting logistics, lubricants and oils manager staff. Paul Hartmann can provide technical advice and The company prides itself on being able to offer specifications on request, for oil requirements. a prompt and reliable delivery service by an He focuses on delivering bulk and packaged excellent team of drivers and a staff with a detailed lubricant solutions to all customers but specialises knowledge of the area. on the needs of the energy markets given the

Director Allan Campbell said the company is a leading supplier of fuel and lubricants to the Depot and logistics manager Anthony Palm is energy, mining, agricultural and transport able to fulfill orders from roadtrain loads down to industries. a few hundred litres within a 24-hour time frame. Country Petroleum is able to offer all the To support this service Country Petroleum is benefits of Caltex guaranteed products while expanding and upgrading its fleet of eight, mixed providing the personalised services of an configuration vehicles to concentrate on quality independent franchised distributor. customer service.

"Our head office is in Dalby and the decisions Mr Palm said Country Petroleum's prompt and are made here by people who understand the area reliable delivery service meant customers did not and the customers," Allan said. face down time waiting for refuel. "Unlike some other operations based in head "If we're talking about a drill site or a diesel office or telephone call centre environments, when powered back-up generator, equipment does not you phone our company you can actually speak to have to experience downtime waiting for fuel to the person handling your account, your invoice, arrive from Toowoomba or Brisbane; with the only your order or even the owners". localised storage depot, we probably have a truck He added "Everybody is available."

in the area already," he said.

recent introduction of power stations and their compressors, transformer and gas engine oil requirements. The company provides bulk refueling solutions with on-site fuel storage systems complimented by a customer specialised reporting system based on Country Petroleum-issued Caltex Starcards. When it comes to resource development across the Surat Basin, Country Petroleum is an invaluable service provider available during all stages of project development. When assessing your petroleum product requirements, consider Country Petroleum - more than just a fuel supplier, we are a petroleum product solution provider putting more back into the region to get you moving faster..

Taroom Miles

Graincorp

Jandowae Chinchilla

Coming Soon

Meandarra

Tara Dalby

Coming Soon

Malu

Moonie Hwy

Toowoomba Caltex Country Petroleum now have easy access 24 hour* Diesel bowser sites some with ultra hi-flow 160 litre/min for faster refills. Self serve debit & credit facilities for payment, Caltex Star Card also accepted. *Excluding Taroom. Operating: 7am-8pm

Loundoun Road, DALBY. Phone: (07) 4662 2688. Fax: (07) 4662 4161. PAGE 32

Surat Basin NEWS Thursday 26 March 2009