SBN DEC 17 2009 by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 17 DECEMBER 2009

32 pages $1.00 inc GST

INSIDE

Picking an LNG winner

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The coal seam gas industry’s $42 billion plans for a world-scale LNG industry are unsurpassed in Queensland’s history. But according to a leading analyst, not all seven projects proposed to go from the Surat Basin through to Gladstone will make it. Turn to page six to find out who will be the winners and losers in the race to Gladstone.

CARBON GETS A MOVE ALONG UCG trial’s stamp of approval

GROUNDED BY John Farmer editorial @suratbasin.com.au

Underground coal gasification's lock down has left many in the Surat Basin nervous about a potential mass exodus from Queensland of the industry's major players. The State Government enforced a pilot phase on the industry in February this year preventing any of the five companies with UCG interests in or around the Surat Basin to enter commercialisation.

AN INDUSTRY’S FIGHT FOR ACCEPTANCE It has also limited the industry to just three pilot projects, those of which are owned by Linc, Carbon and Cougar. A UCG consultative committee has been formed featuring many of the industry's main players that, along with an independent scientific panel, will decide if the process is safe.

BUY : SELL : TRADE : LEASE FURNITURE & ELECTRICAL

Daley Furniture Traders

Servicing SURAT BASIN

E daleytraders@gotalk.net.au

A recommendation is expected no earlier than 2011. MetroCoal CEO Mike O'Brien said if the State Government failed to find an acceptable resolution, the worst case scenario was a UCG boycott of Queensland. “The de facto moratorium has the potential to

P:4662 4211 M:0418 872 381 F:4662 2591 ABN:81 005 506 309

delay the development of UCG but, more importantly, has the potential to push UCG development out of Queensland,” Mr O'Brien said. UCG involves burning coal as it sits underground to create gas, and was pioneered in Soviet Russia in the early 20th century. Western Downs Regional

RENTALS SALES

— www.suratbasin.com.au —

mayor Ray Brown said the two-year clamp put on commercial UCG could be good in the long run. He said the pilot phase would allow the UCG companies time to fine tune their technology and sort out any issues with their processes. Cr Brown said UCG could have a key role to play in the Surat Basin but, with three of the five projects situated in the Western Downs, he wanted to be assured of its credibility. Continued on Page 4

Dalby FIRST NATIONAL R E A L E S TAT E

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ARROW’S MARCH PAGE 15

www.dalbyfn.com.au rentals@dalbyfn.com.au sales@dalbyfn.com.au Ph: 07 4662 2833 76 Drayton St, Dalby

LOCAL NEWS

INSIDE THIS EDITION:

Surat Basin NEWS The Team

Surat Basin News

PAGE 4

Laurell Ison Advertising

David Richardson General Manager

West. Foundation members were honoured at a lively AGM held in Chinchilla attended by about

dustry’s ush to be ccepted

“Their new ideas and enthusiasm will be invaluable to our group moving forward.”

e underground coal ification industry is ting for acceptance m the State vernment to ensure an go commercial Queensland.

— SBC CEO Richard Krause

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Toowoomba's deputy mayor believes he is the person who can best connect the city with the Surat Basin mining boom. Cr Paul Antonio was elected to the board of the Surat Basin Corporation at its AGM held in Chinchilla this month. The former mayor of the Millmerran Shire Council said he had the experience to work with the energy sector after leading his former council through the construction of Millmerran's $1.5 billion coal-fired power station. Cr Antonio said it was critical T b R i lC il h d

ddition to ake SBC to ew levels e Surat Basin rporation has a new t K t

John Farmer Journalist

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.

said. “Their new ideas enthusiasm will be inv our group moving forw Mr Krause said 2010 be a watershed year for poration after members interest soared in late 2 A series of eight foru minating in a major co in November are plann with a tour in March th visit LNG projects in co around the world. “We're really looking ing the Surat Basin Co to the next level and ru series of events through year,” he said. Mr Krause is based new Surat Basin Corpo offices, upstairs in the Street arcade.

City’s deputy connects with boo

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Beth Walker Graphic Design

our towns,” he said. Mr West said he was remindful of the challenges ahead and the role the Surat Basin Corporation would have to play. “There's going to be a lot of hard work ahead of us but I'm sure by working together, building alliances and speaking to the right people, we'll have the capacity and resilience to avoid the worst of the pitfalls,” he said. Surat Basin Corporation CEO Richard Krause said the new board members would have a key part to play in the corporation's future. “Our new additions are of an extremely high calibre and we certainly welcome the opportunity to work with them,” he

2009-10 SURAT CORPORATION B • Greg West, president ( Basin Developments) • Marco Waanders, vice (Easternwell Group) • Matt Ostwald, treasure (Ostwald Bros) • Ray Hicks (Brandon & Associates) • Graham Seccombe (F • Cr Andrew Smith (We Downs Regional Counc • Cr Ree Price (Maranoa Regional Council)

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n gives nerator h along struction had arted, nergy still d the fact its

The meeting at Cameby Hall, during which Syntech Resources revealed in-depth its expansion plans.

Coaches vel has recent become the ice to take rever you go. GE 22

atch in aining s

Wandoan plant shortlisted and boosted Xstrata Coal has welcomed the Australian Government's announcement to spend up to $120 million on pre-feasibility work to further assess four short listed Carbon Capture

platform for Stanwell and GE Energy to develop an IGCC power station inclusive of C02 capture capability. As part of an alliance, Xstrata will transport and

globally by 2020,” he said. If the Wandoan power project proceeds, Xstrata Coal intends to supply coal from its Wandoan mine. That is currently undergo-

ell Group is o be a leader omes to e training. pany recently

Xstrata Coal is a member of the Global CCS Institute and a key contributor to the Australian coal industry's $1 billion C0AL21 Fund.

“It’s been a pretty active 12 months or so.” — Chinchilla First National’s Bruce Booth

Development offers front row seat Developers or busi-

before many of the major l d

1.16 hectares. S i d i

COMPANIES:

Origin Energy shifts its second round of driver training courses into gear. The Surat Basin Corporation unveils plans for the 2009 Surat Basin Energy Conference. Arrow Energy rolls into Dalby to set up a very temporary gas field and Haystack farmers get a stay of execution.

The four proponents behind Queensland’s LNG industry mark milestone announcements around their projects. Syntech Resources gets a $250 million boost to begin work on Cameby Downs and Carbon Energy begins planning for its next stage.

Surat Basin Homes grows in size to keep up with client demand. Bullivants continues to enhance its key role in safe workplaces. Enerflex begins a major east coast expansion and Arrow Energy starts construction of its $7.5 million office complex in Dalby. 2921843aa

INFRASTRUCTURE

The Website

ON THE JOB: QGC teams with Tara school to get indigenous trainees on the gas field, into on-the-job training

me water es, same utions

rigin Energy met a key milestone this month by successfully synchronising to the grid the first turbine of its 630MW Darling Downs combined cycle power station. Darling Downs Power Station, Australia’s largest combined cycle power station, is the centrepiece of an investment of more than $1 billion by Origin in providing cleaner natural gas-fired electricity. This month, the first of three 120 MW gas turbines was synchronised as part of a commissioning phase which will extend over coming months. A steam turbine will capture the waste heat from these gas turbines, increasing the efficiency and capacity of the plant. The key milestone follows completion of the 205km domestic gas pipeline linking the power station to Australia Pacific LNG’s

Energy is negotiating with estern Downs il over how a s going to be ht proofed and f water saved.

PAGE 21

mino falls nk to ort ports pproval of the Railway in er was another ant step in the tion of the

(a 50:50 joint venture between Origin and ConocoPhillips) coal seam gas fields. The project has created more than 1000 direct jobs during construction and many more indirect jobs. Origin executive general manager for major development projects, Andrew Stock, said Darling Downs would be one of Australia’s cleanest baseload power stations. It will emit less than half of the greenhouse gas and use less than three per cent of the water used by a typical water-cooled coal-fired power station. “The gas turbines will be fired up one at a time during the coming weeks before the steam turbine comes on line early next year, with the power station on schedule to be fully commissioned in the June quarter of 2010,” Mr Stock said. “(This month’s) successful synchronising is a major milestone in bringing Darling Downs

AGE 24

ampaign ched

Staff celebrate this month’s milestone.

Energy put its Basin activities he small for all to see onth. Its new TV ernet campaign unched at the Historical .

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Power Station on line next year.” Origin has also purchased a 77ha block adjacent to the current Darling Downs Power Station for possible future expansion. Origin Executive general manager energy markets, Frank Calabria said the development would help provide cleaner electrical power as part of a growing investment by Origin in gas-fired generation. “Upon commissioning, Darling Downs

“(This month’s) successful synchronising is a major

Jason and Trevor to complete school and at the same time gain a vocational qualification. The traineeships are part of a trial program started this year by energy companies in the Surat Basin. Neil Forsyth, QGC general manager human resources, said QGC was proud to be part of the program. “It gives opportunities to young people to get a head start in the coal seam gas industry,” he said. “We hope that Jason and Trevor represent the first of many indigenous school-based traineeships. “Thanks to Tara Shire State College for helping to bring these traineeships to life.” Jason and Trevor are the first school-based trainees for QGC and both young men are very excited to be working for such a large company. They will be at the forefront of the traineeship program between QGC and the Tara Shire State College. The trainees will be working at QGC's Berwyndale South gasfield, south-west of Chinchilla.

AGE 26

os powers l jobs in anoa launched its ticeship program nth to train ters across the and get them

One of Darling Downs Power Station’s gas turbines is now synchronised.

ROMA FRONT: Store to keep Roma community up-to-date on Santos’ current and future projects

Trainees hit QGC fields A

strong partnership between the Tara Shire State College and QGC culminated last month with two boys starting on-the-job training. Jason French, a year 11 student, has started a Certificate III in Warehousing and Logistics and Trevor Massey, a year 10 student, started a Certificate II in Engineering. Both boys are receiving their training through Axial Training and host employer QGC. The indigenous school-based traineeships are enabling

“QGC is proud to be part of this program, which gives opportunities to young people to get a head start in the coal seam gas industry.” — QGC’s Neil Forsyth

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VOICE YOUR OPINION: editorial@suratbasin.com.au

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Link takes the ‘Limelight’

THE TOWNS

THE PEOPLE

www.suratbasin.com

Darling Downs centrepiece powers up for summer

PAGE 22

at Basin News

rat Basin News

POWER UP: First turbine synchronised to grid at Darling Downs Power Station, Origin’s $1 billion Australian first

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.

GE 22

all access ce pass

1.5 billion tonnes at its disposal. “We believe this project, if we are able to gain the necessary approvals, will be around for a long time and will be mainstay of the local economy for the next 30 to 40 years,” he said. Around 55 landholders will be directly affected by the proposed coal mine. Cattle breeder Joe Hill's property is downstream of the mine site on Columboola Creek, about 35km south west of the mine site. He fears for the district's cattle industry if the open cut mine contaminates properties or waterways. “It's not just me, it's the whole industry,” Mr Hill said. “One contaminated beast would shut the industry down overnight.”

made detailed market research, new sales strategies and improved customer service a priority to ensure the best results for clients. “Our clients always come first so we make sure we understand the market and use that knowledge and our expertise to get the best return for both sellers and buyers,” he said. Mr Booth said many of the accolades belonged not only to the individuals out selling, but to Chinchilla, as there were few better places to sell real estate in Queensland. “It’s been a pretty active 12 months or so,” he said. “I can’t say there has been too much of a downturn.” While surprised by the consecutive awards, Mr Booth said a hat trick was not out of the question based on the past four months. “The way we’ve been going since the end of the financial year, we’re Chinchilla First National principal Bruce Booth and sales consultants Peter on track to do even betEtheridge and Leanne Healy, back to work after an award winning weekend. ter,” he said.

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VOICE YOUR OPINION: editorial@suratbasin.com.au

The Vision

he activity on Syntech Resource's Cameby Downs mine may only be matched by that inside its boardroom. As construction continues on the 600ha mine site, Syntech is working through the necessary approvals to get its massive second stage underway. Over 15,000 hectares between Chinchilla and Miles the company wants to mine 14 million tonnes of coal a year to be sent to Gladstone on the Surat Basin railway. Residents of the Cameby district heard from Syntech representatives at a community meeting in October the first coal could be loaded into trains by 2013. Chief operating officer Paul Kelly said Syntech had long term plans for its Surat Basin venture, with a coal resource of a possible

Tough economic conditions? Volatile market? In 2009, none of that applied to First National Chinchilla as it was last month recognised as Queensland’s busiest and most thriving branch The sales team, led by principal Bruce Booth and sales consultants Leanne Healy and Peter Etheridge, won the 2009 Excellence Award for most residential sales at First National Queensland’s gala awards dinner on Saturday night. Mr Booth said the award, which followed on from last year’s rural category win, recognised the sale team’s ongoing improvement and its local expertise. He said First National Chinchilla had

THE NEWS:

urat Basin News

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.

Award winning resilience

Syntech plans major mine expansion across districts

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80 business, industry and government leaders. Toowoomba Regional Council deputy mayor Paul Antonio was the most notable of the board's five new members, joining Chinchilla businesswoman Kaye Maguire and Dalby Chamber of Commerce and Industry president Michael Webber. Mr West said the level of excitement was understandable considering what 2010 had in stall. “We're entering a hugely interesting and exciting year when we're going to see a billion-dollar LNG industry really get going, massive rail and power station projects announced and a lot of new people and businesses coming to

TOP OF THE MARKET: Chinchilla First National made it consecutive wins at the state awards last month.

NEXT STAGE: Syntech Resources remains on track at its Cameby Downs site as expansion plans continue to unfold

Lively start to new yea

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VOICE YOUR OPINION: editorial@suratbasin.com.au

www.suratbasin.

SECOND TIME ROUND: The Surat Basin Corporation entered its secon year this month under the leadership of founding president Greg West

here was no shortage of enthusiasm when the Surat Basin Corporation entered its second year under the helm of land developer Greg

THE COMPANIES

RESOURCES

LOCAL NEWS

VOICE YOUR OPINION: editorial@suratbasin.com.au

rat at Basin News

at Basin News

THE RACE TO GLADSTONE The winners and inevitable losers

GE 31

sparks galow dents from State School S Energy’s to electrify nary town of e. With nitiative and k, they came . GE 30

ear from source ed another year for the in. We look he events, ments and

Tara Shire State College transitions officer Joan Ford with newly appointed Q trainees, Jason French and Trevor Massey.

Santos opens for business in Roma antos has officially opened a new community shop in McDowall Street, Roma, which will expand the company's existing operations and provide the community with up to date information about current and future projects. The store has a public kiosk which will offer access to job and procurement registration and a large conference area at the back which can be used for small community meetings. “The shop front is just a logical expansion of the locally based business we have here,” Santos' Queensland area manager Sam Klaas said. “I feel that there is a great need for this facility and that it gives people the opportunity to come down and find out more about current and future operations.” Maranoa Regional Council mayor Robert Loughnan officially opened the facility and spoke of Santos' dedication and importance to the local community. “S h l i

Santos Queensland area manager Sam Klaas and Maranoa Regional Council mayor Robert Loughna at the official opening of the new Santos store in Roma. Hornery Institute.

new sculpture commissioned by

“Santos has a long

INFRASTRUCTURE:

THE PEOPLE:

THE TOWNS:

A new east Australian gas grid is created to pump Surat Basin coal seam gas into southern markets. The State Government invests in the gas super-highway and Warrego concerns continue to build.

Will Nothdurft returns to Chinchilla to work with local landowners. The Department of Mines and Energy positions two deputy mining registrars in Roma to help resolve conflict between farmers and miners.

Property developers are helping Miles overcome its growing pains. Dalby Regional Council about to trash local tips. Roma ready for the return of the Santos Fire and Food Fest in September.

Next editions - March 25, June 24, September 23, December 16, 2010

Surat Basin NEWS

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

The POWERFUL LEADER in the Surat Basin Surat Basin Surat Basin Surat Basin S S W in s W E in a s E N a B N B t NEWS N S a t NnEd Wt SBasinNEWS urat BasinN Out of re SuErWS Sura a S c h W in a s E a ESWurSat B N un Green ura rom News heats up der pressureS COUN light for ace north far f ORIZONS GREEN H ds plant grin -ethanol 21 grain-to - Page Dalby a’s first Australi action outside into

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he Surat Basin was a gas power confirm this month of global propor ed as tions with merger between the $9.6 billion and US Origin Energy oil and ConocoPhillip gas giant The biggess. BY John Farmer history sees Queensland t purchase editorial of a ConocoPhillip commercial Origin Energy asset @suratbasin. ’s substa s take a half share in based at com.au ntial LNG Gladst project to in That could one. be be operat rivalling ing in Westerthe massive Northby as early as n Queen West Shelf 2014, Energy sland. At the heart project inquiri ’s announcemen of the deal expansive t dealing es from with All Glasso investors and Work is a fact not Surat Basin coal is Origin Energy homeb a flood of ploughing n Villa missed by seam gas ’s contract site ahead Chinchilla investors. reserves, in a matter townhouses uyers. ahead moving to at Carbo went under Development Econom Dave Wicksof a demonstrat make moreof days and the n Energ Association ic and compa Mr Daniel compared y’s Blood ion housing — dmwc Tourism arrive ls available. ny is wood Creek reative). start-up next follow the the accelerationpresident Greg with the agreed the surge month. West record he ferocity was about believed (Photo “We’ve had mi”. manse purcha of by would Creek to Chap to our first a tsunami. Frankseen “We’ve but this ride back Surat that of a “tsuna- going on the Creek and the wave to stop,” one’s like a tsunamwith Kogan arrives the impact he said. created i that’s “This has on a Basin. a big constru by Kogan not 16 market, time there’s not land,” he town in terms Page there’s just of rentals ction project said. Chinchilla umpteenth of one driver in the , housin “Now we g and the them.” First need al billion to realise recent announ National’s Bruce Booth surge in towards dollar projects that there are severinvestm cement had said While betterent inquiries. created a new struction financial close on the table headin in mid-20 from 2010. g Chinch positioned 09 and “What illa was con- Mr Booth to react when Kogan in significwe’ve witnessed than believe before ance to A small “When Kogan s more can Creek commenced, construction.” the impact is going to pale patch of be done. Kogan coal s the Creek of just south town by is set Kogan Creek Surat really of er, fuel for major to be transformed “I think surprise,” he said. took off it took Daniells Basin Development methanol into spent the industry. or liquid don’t know while we’re better Carbon two weekss director Warren And it’s fuel plants. how well prepar following “We ground coalEnergy will use Carbon’s not the only feathe Origin don’t could end in prepared we are. ed, I just its underbow. gasification r to another keep on teamed The compa proces predicament the front with ny owns foot.” ments with commercial agree- s if we Basin coal several Surat giants to some manufacturin spread its tenements and develop plans wings as world-scale g es. time progre to — www fertilisss.sura tbasi Turn to n.com .au page 20 for the full — story.

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BY John

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r nt to partne announcemedeliver its $7.7 recent to TM) Santos' sia's Petronas one (GLNG al region with Malay facility at Gladst tance of billion LNGrced the impor burgeoning econohas reinfo in the state's gas Queensland al oil and l sia's nation ed natura my. is Malay liquefi and the largest Petronas the third in the world, ny company, compa of the gas (LNG)Asia. ide some per in largest as tendered alongs nies for a 40 . compa Petron energy $2.508 billionor of largest , worth operat world's in GLNG ence as ated LNG cent stake ny's experi integr compa Santos single t The s larges — will assist world's the world'Malaysia LNG — the — t coal seam facility sfully deliver GLNG to conver to succes scale project first large- on a large scale.24 million tonnes proes gas to LNG LNG produc is expected to Malaysia year. GLNG year. P.3 per ued on of LNG tonnes per Contin million duce 10

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editorial@suratbasin.com.au

Surat Basin NEWS Thursday 17 December 2009

Surat Basin News

THE RACE TO GLADSTONE The winners and inevitable losers

LOCAL NEWS

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

SECOND TIME ROUND: The Surat Basin Corporation entered its second year this month under the leadership of founding president Greg West

Lively start to new year

T PAGE 4

Industry’s push to be accepted The underground coal gasification industry is fighting for acceptance from the State Government to ensure it can go commercial in Queensland. PAGE 8

Addition to take SBC to new levels The Surat Basin Corporation has a new secret weapon. Kate Mudge is client liaison officer, a role that requires her to matchmake to build strategic alliances.

here was no shortage of enthusiasm when the Surat Basin Corporation entered its second year under the helm of land developer Greg

West. Foundation members were honoured at a lively AGM held in Chinchilla attended by about

“Their new ideas and enthusiasm will be invaluable to our group moving forward.” — SBC CEO Richard Krause

said. “Their new ideas and enthusiasm will be invaluable to our group moving forward.” Mr Krause said 2010 would be a watershed year for the corporation after membership and interest soared in late 2009. A series of eight forums culminating in a major conference in November are planned along with a tour in March that will visit LNG projects in countries around the world. “We're really looking to taking the Surat Basin Corporation to the next level and running a series of events throughout the year,” he said. Mr Krause is based at the new Surat Basin Corporation offices, upstairs in the Heeney Street arcade. 2921852aa

City’s deputy connects with boom Toowoomba's deputy mayor believes he is the person who can best connect the city with the Surat Basin mining boom. Cr Paul Antonio was elected to the board of the Surat Basin Corporation at its AGM held in Chinchilla this month. The former mayor of the Millmerran Shire Council said he had the experience to work with the energy sector after leading his former council through the construction of Millmerran's $1.5 billion coal-fired power station. Cr Antonio said it was critical Toowoomba Regional Council had a stake in the Surat Basin Corporation, which represented the interests of the energy province’s businesses and communities. “We want to be right at the cutting edge of all that's happening so we can gain tangible benefits for the city,” he said. Cr Antonio said he could see the Surat Basin Corporation as a key player in the region-wide campaign for better infrastruc-

Toowoomba deputy mayor Paul Antonio, now part of the Surat Basin Corporation. ture, especially the second Range crossing. “We are infrastructure poor in this area,” he said. “We all need to hold hands and get a clear message to Canberra and Brisbane that we're really desperate for infra-

structure. “I think that will be a role of the board and a role I'll be pushing for.” Cr Antonio said the Charlton Wellcamp was high on Toowoomba Regional Council’s priorities because what it would provide industry working in the Surat Basin. “We need Charlton Wellcamp to happen and happen quick, and we're driving that,” he said. In the past, Toowoomba Regional Council has expressed some interest in using waste water coming from gas fields west of Dalby to supplement the city's supply. But Cr Antonio said it was no longer an option because it was too much of a short term fix considering the expected life of the coal seam gas industry. “I don't think local government should invest for just 30 years,” he said. “The best option was to go to Wivenhoe because that's an investment for forever.”

Do not miss out on the next edition Subscribe Now Phone (07) 4662 7368

2009-10 SURAT BASIN CORPORATION BOARD • Greg West, president (Surat Basin Developments) • Marco Waanders, vice president (Easternwell Group) • Matt Ostwald, treasurer (Ostwald Bros) • Ray Hicks (Brandon & Associates) • Graham Seccombe (FKG) • Cr Andrew Smith (Western Downs Regional Council) • Cr Ree Price (Maranoa Regional Council) • Craig Rutledge (DEEDI) • Jim Devine (Queensland Resources Council) • Gavin Walton (Condamine Electrical Company) • Cr Paul Antonio (Toowoomba Regional Council) • Ben Hughes (BeNext) • John Moncriff (WHK) • Michael Webber (Dalby Chamber of Commerce) • Kaye Maguire (Maguire Coaches)

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LOCAL NEWS

Good news long term Continued from Page 1 “It's great technology, let's just make sure it's right environmentally too,” he said. Linc Energy was an early victim of UCG's uncertainty in Queensland when it took its commercial aspirations to South Australia in late 2008 as a conflict with the coal seam gas industry reached boiling point. CEO Peter Bond said Queensland would only figure in the company's future if the State Government offered some security. “We're not waiting and when the Queensland situation is better defined, we're always here, we can always come back and look at it then,” he said. Mr Bond said the two-year moratorium on commercial UCG could cost Queensland dearly. “I think they're missing out on a lot — several thousands of jobs and several billions of dollars,” he said. “It's a big impact.” Cougar Energy CEO Dr Len Walker was involved in Australia's first UCG pilot burn near Chinchilla at what is today the

site of Linc's demonstration facility. His company is behind a 400MW UCG gas turbine power station near Kingaroy. Dr Walker said he expected a positive outcome for the UCG industry from the two-year pilot phase. “UCG will become an accepted technology that enables many countries rich in natural resources to develop and sustain a clean supply of cheap energy,” he said. A Queensland Mines and Energy spokesman said the UCG players represented on the committee had been active participants. He said the expert panel had started planning its approach to the technical and environmental review of UCG technology. “(Over the next year) the independent scientific expert panel's terms of reference will be finalised and UCG pilot projects will commence work on preparing their individual pilot project reports,” he said. “The committee will consider options on the range of issues as noted in the UCG policy.”

LINC ENERGY

There’s room for all the players Linc left little doubt it wasn’t happy, but it is back with Queensland on its mind. Linc Energy made it clear it would not wait for the State Government to let UCG out of lockdown when it left for South Australia late last year. That won't stop the company working with the UCG panel to plead the industry's case though, CEO Peter Bond said in Chinchilla last month. He said Queensland still held vast potential for the coal-to-liquids aspirant. “We're not waiting and when the Queensland situation is better defined, we're always here, we can always come back and look at it then,” he said. Linc first appeared around 1999 when test burns were held at the current site, 35km south-west of Chinchilla. Nine years later it was on

Linc Energy’s science is helping UCG gain credibility in the eyes of the State Government. the eve of a 20,000-a-day coalto-liquids plant when the standoff between UCG and coal seam gas started. Mr Bond said the delays caused by the pilot phase had cost Queensland. “I think they're missing out on a lot — several thousands of jobs and several billions of dollars,” he said. “It's a big impact." Mr Bond said UCG and

CSG could work as one in Queensland because of the state's vast coal resource. “I'm confident there's plenty of room for all the players,” he said. “In the cold light of day, several months down the track, the government and most the players will have realised that's the truth — there's still plenty of room for everybody.” 2921862aa

TOOWOOMBA REGIONAL COUNCIL

Career Opportunities At Toowoomba Regional Council Toowoomba Regional Council is servicing a regional population of 151,000 with a staff of 1,600. The rapidly growing region offers a wealth of opportunities for those looking for a rewarding career based in one of South-East Queensland’s most sought-after areas. It offers all the beneﬁts of urban and country living including some of Australia’s ﬁnest education facilities, highly regarded health services and a growing reputation for restaurants, coffee shops and wineries.

To ﬁnd out about all positions currently available please visit our website

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LOCAL NEWS

UCG to win out in the end: Metro MetroCoal CEO Mike O'Brien expects UCG to “exceed all the tests and answer all the questions” in its fight for credibility with the State Government. MetroCoal is planning a two-pronged assault on its Juandah resource south-west of Wandoan, using both conventional, underground mining and UCG. Mr O'Brien said exploration would push forward and towards a possible 20,000 barrel a day coal to liquids plant. He said any work was being done with confidence UCG would get the all clear from the government. “The issues surrounding UCG are clearly identified and, based on the extensive evidence gathered to date, the industry has demonstrated that these issues can be, and have been, successfully managed,” Mr O'Brien said. Mr O'Brien said once given the all clear, UCG would take off. “We expect UCG will rapidly gain momentum and prove to be a valuable source of clean energy in Queensland, Australia and globally,” he said.

Evidence in UCG’s favour Carbon Energy CEO Andrew Dash said his company was happy to prove UCG was safe and a key part of Queensland's future energy mix. Carbon's trial at Bloodwood Creek, southeast of Dalby, is going to use syngas to power a 5MW generator, with plans to include carbon capture and storage technology. Further stages could lead to large power generation and chemical production, with Incitec Pivot already eyeing off a possible on-site fertilizer plant. Mr Dash said Carbon wanted to work with the independent panel for the sake of what could become

CARBON ENERGY a major industry. “We think it has great potential and we're very focused on demonstrating the credentials of the technology,” he said. Carbon's underground gasification process was pioneered by CSIRO, giving it a “robust scientific background” and nothing to hide, Mr Dash said. “We're more than happy to be very open and transparent about our process,” he said. “It's fairly straightforward from our perspective.” Mr Dash said the pilot phase would not hinder

Carbon too much over the next two years, with a host of environmental requirements to meet anyway. “We would expect any large project to go through the normal environmental process and if there are additional processes with that, we're more than happy to work through those as well,” he said. Mr Dash said he believed Bloodwood Creek would one day become a major commercial site. “We have a great deal of confidence in the technology,” he said.

Pressure is building at Bloodwood Creek where Carbon Energy is testing a UCG power plant.

Policy and industry want same outcomes With the State Government's desires not too far removed from those of Cougar Energy, CEO Len Walker is not too phased by the two-year moratorium. Dr Walker, who has been involved with UCG technology for 25 years, said the government policy seeks similar outcomes to that of Cougar's pilot project near Kingaroy. “Namely a determina-

COUGAR ENERGY tion of the technical and environmental viability of UCG to generate cleaner, cheaper electricity for Australia,” he said. But Dr Walker said he was concerned the policy restricted Cougar from testing the commercial viability of its Kingaroy project. Cougar has almost completed construction of its

Kingaroy pilot plant, which will gasify up to 20,000 tonnes of coal under controlled conditions. Dr Walker said the plant could be commissioned in March next year. “The pilot plant will run until we have enough data to build into our feasibility studies, and also to meet the requirements set out

in the State Government's UCG policy,” he said. Dr Walker said based on his past experience with UCG in Queensland, he was confident a commercial industry would be allowed. “Having conducted a very successful pilot project before at Chinchilla in 1999 to 2001, I am very confident of satisfying government and the community expectations about

2921866aa

the safety and environmental credentials of UCG,” he said.

“I am very confident of satisfying government and community expectations.” — Cougar Energy’s Dr Len Walker

Encompassing the communities of Toowoomba

Dalby Chinchilla Roma Tara Injune Surat Mitchell Miles Wandoan Strategies for growth

The Surat Basin Corporation

focusing on facilitating positive outcomes from increased regional investment

SB C

is a partnership of government, business and community organizations for the purpose of promoting sustainable development in the Surat Basin Energy Province. The Surat Basin Corporation was established in response to the fundamental learning observed in other regions that have experienced rapid resources-driven growth where a lack of coordination resulted in inefficiencies for industry and disruption to communities. The Surat Basin Corporation's primary role is to effectively source and share accurate energy project information so that:

• Industry can more efficiently enter and operate in the region. • Local service businesses are able to plan and grow to meet regional demand. • New service businesses are attracted to establish in the Surat Basin. • Government, community and industry can efficiently plan for lasting social and physical infrastructure. Charged with realizing positive outcomes from increasing investment, the Surat Basin Corporation is completing projects focused on attracting relevant skills to our region, growing our region's economy and enhancing the lifestyle enjoyed by residents.

Join a network that’s making a difference in the region and watch the business flow Strategic Liason Agent: Kate Mudge 0417 754 657 kate@suratbasincorporation.com.au Office Executive: Pamela Walton 07 4660 7777 pamela@suratbasincorporation.com.au Website: www.suratbasincorporation.com.au

Surat Basin NEWS Thursday 17 December 2009

PAGE 5

LOCAL NEWS

Gladstone’s LNG stampede The firm favourites have emerged in the LNG race to Gladstone and the rest of the field might find it tough making the finish. Queensland's seven LNG projects may be just two by 2014 according to a report published by Patersons Securities analyst Graeme Carson in November. “Given the huge capital outlay, the onerous approvals process and capacity constraints in the region, we believe that there is no way that five or six LNG plants will be built in Queensland,” he wrote. Mr Carson predicts BG Group and Santos/Petrona are the likeliest to proceed, with final investment decisions expected mid-2010. Both are further along in terms of approvals, enjoy strong financial partnerships and have the resource to meet the demands of large scale LNG plants.

The winners (and losers) in our state’s multi-billion-dollar LNG race

GLNG (Santos/Petronas)

Status: EIS Capacity: First train, 2014, will be 3-4mtpa. 2021 is the tentative date for total production of 9-12mtpa. Workforce: 4000 at peak Construction cost: $7.7bn

Queensland Curtis LNG (BG)

The race is on to get coal seam gas to Gladstone so Queensland’s LNG journey can begin. The plants would be together on Curtis Island, which would cut operational and construction costs. Outside of the two

“The proposed CSG to LNG industry will further strengthen the position of Gladstone and Central Queensland as a region of strong industrial growth...” — Analyst Graeme Carson

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front runners, Gladstone LNG, owned by Arrow Energy, LNG Ltd and Golar/Toyota Tsusho, is likely to be the other winner. The first stage would be only 1.5 million tonnes per annum but could get to a final investment decision first. While not well funded at this stage, it has EIS approval and is located on the mainland at

Fisherman's Landing. “This greatly reduces the construction costs and removes accessibility issues,” the report states. Of the other major proponents, the Origin/ConocoPhillips and Shell/Arrow consortiums might by too far behind to get approval, Mr Carson wrote. But they would likely remain active in the LNG business working with the

approved players. Mr Carson believes even with the inevitable cuts in the playing field, LNG will be a major force in Queensland for years to come. “The proposed CSG to LNG industry will further strengthen the position of Gladstone and Central Queensland as a region of strong industrial growth over the next 10 to 20 years,” he wrote.

From our family to yours, have a happy Christmas and New Year. Arrow Energy has enjoyed another successful year. As the emerging global leader in coal seam gas development, we are powering Queensland’s progress, providing hundreds of local jobs, developing beneﬁcial uses for our water production, and creating brighter futures for our families and yours. We wish you all the best this holiday season and hope you have a great 2010. www.arrowenergy.com.au PAGE 6

THE WINNERS

Surat Basin NEWS Thursday 17 December 2009

Status: EIS Capacity: First train, 2013, will be 3.7mtpa. No date has been set for full production of 11.1mtpa. Workforce: 4000 at peak Construction cost: $7.2bn

Gladstone LNG (LNG Ltd, Golar/Toyota, Arrow Energy)

Status: Development approval Capacity: Two trains, 3mtpa, full production 2013. Workforce: 500 at peak Construction cost: $2bn

LOCAL NEWS

KNOCK BACK WON’T STOP ENERGY GIANT

LNG or not, it’s the long haul for Origin BY John Farmer editorial @suratbasin.com.au

Origin Energy's second community road show through the Surat Basin came with the message its long terms plans for the region are not restricted to just LNG. Australia Pacific LNG is one of seven liquefied natural gas projects touted for Gladstone. Origin owns APLNG in partnership with ConocoPhillips. Some analysts have predicted only two of the projects will be successful. At the Chinchilla community information session, Origin manager land strategy and stakeholder relations Martin

Origin’s APLNG road show stops at Miles.

McVicar said the development of the company's Surat Basin gas fields did not hinge on the LNG project. “We have enough projects on our books to keep us very active,” he said. But while Origin’s back-up plan is being worked out, Mr McVicar remains upbeat about the APLNG project going ahead. He said the APLNG proposal was stronger than others because more time had been spent planning. Origin/Conoco Phillips is the only of the five major LNG players not to have submitted an EIS, a positive Mr McVicar said. “It's a good place to be. It's a place where we will be looking at cumulative effects,” he said. “We will be looking at

Put your feet up

not just the gas project but the other projects and everything happening in the area and, in that way, getting more involved in the detail.” The APLNG team visited towns from Dalby to Gladstone in September on the back of a similar series of community meetings three months earlier. The road show saw the launch of a television and internet campaign focused on Origin's Surat Basin activities. Mr McVicar said second time around, Origin staff were impressed by what people knew about LNG. “They are a lot more understanding of it now because, obviously, they're a lot more informed,” he said. By late next year, APLNG hopes to make a

final investment decision on the first of four LNG trains. Together, they would produced 16 million tonnes a year. Mr McVicar said the company would continue to speak with local stakeholders through its environmental, construction and operational stages. “We've got to continually do it to make sure people are aware that it's progressing and are aware of the stages of progress,” he said.

“We have enough projects on our books to keep us very active.” — Origin’s Martin McVicar

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LOCAL NEWS

Corporation set to jet on world tour

Matchmaker Kate Officer to link members and build alliances ships we increase their capacity and open up BY John Farmer their opportunities to editorial work with the big indus@suratbasin.com.au tries of the Surat Basin,” she said. Ms Mudge plans to The Surat Basin spend much of her time Corporation enhanced its on the road, meeting presence at the coal face with Surat Basin of the burgeoning energy Corporation members, province this week. who are based across Kate Mudge was south-east Queensland, appointed client liaison and the resource compaofficer, bringing 21 years nies of the energy experience in the field to province. the Chinchilla-based corShe said more poration. She will cover informed and active the Toowoomba, Dalby, membership would Chinchilla and Roma ensure the corporation's areas. network remained at the Ms Mudge's responsifore of Surat Basin activibilities range from liaisty. ing with stakeholders, “I'm looking forward to sourcing training opporbuilding on what the tunities and building on Surat Basin Corporation the potential of the Surat has already become and Basin Corporation's helping take it and our industry network. members to the next “By bringing different level and the next level organisations together after that,” she said. and creating partner-

Kate Mudge, as Surat Basin Corporation client liaison officer, is linking members and building strong, strategic partnerships. Surat Basin Corporation CEO Richard Krause said Ms Mudge's appointment would add another vital element to the organisation. “It's another person on the ground, covering a broad area, making sure people are aware of what is happening and helping them become involved,” he said.

Mr Krause said Ms Mudge would assist Surat Basin Corporation members to become better equipped to handle the intensive construction and demands of the resource industry. “This will mean our members are kept informed and have better access to up-skilling, tendering or business development opportunities,”

he said. While only new to the area, Ms Mudge did attend the 2009 Surat Basin Conference in Dalby. She said while the current activity across the province was startling, she was aware it was only a precursor to what was ahead. “It's extremely exciting and I'm looking forward to the challenge,” she said.

The Surat Basin Corporation will take its members around the world in 2010 to visit countries where LNG has reached global heights. The world tour will leave in March and over 10 days stop in South Korea, Malaysia, Canada and the United States to visit large scale LNG projects. Corporation CEO Richard Krause said members would get to speak with experts from the industry and company executives. Queensland LNG could be a billion dollar industry by 2012 and Mr Krause said the region needed to be prepared. “We are in the early stages of what is going to become a very substantial industry,” he said. “Anything we can learn as business owners or community leaders is going to prove invaluable down the track.” Mr Krause said places were limited and bookings would be needed in early 2010. For details about the world tour, contact the Surat Basin Corporation at the Heeney Street arcade, Chinchilla.

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

THE ISSUE:

UCG’S SHUTDOWN Halfway through an enforced pilot phase, the Surat Basin UCG hopefuls await patiently for a resolution to allow them to enter commercial operations. The three companies allowed to progress their pilot projects - Linc, Cougar and Carbon are playing an active role in the State Government’s study. The Surat Basin holds huge potential for UCG.

THE IDENTITY:

CR PAUL ANTONIO Toowoomba Regional Council deputy mayor Paul Antonio brought the big city to the Surat Basin Corporation this month when he was elected on to the board for the corporation’s second year.

THE ANNOUNCEMENT:

ARROW’S MARCH DEADLINE The Surat Basin’s LNG revolution could begin earlier than many expected with Arrow Energy announcing the Gladstone LNG project could get a final investment decision by March next year. The 1.5mtpa plant is the smallest of the bunch, but has some clear advantages in its journey through to commercial realisation.

THE CONTROVERSY:

Pollution scheme rejection good news for Surat Basin In a win for the communities of the Surat Coal Basin, Labor’s flawed legislation for its Carbon Pollution Reduction Scheme was voted down by the Liberal-National Coalition and other nongovernment Senators earlier this month in Federal Parliament. Had we been unsuccessful in opposing this legislation, Australia would now be facing more than 125,000 job losses in regional areas, higher electricity and food costs, and the closure of 16 coal mines. The Coalition had long called for this legislation to be delayed until after the UN Climate Change Summit in Denmark so that we could debate on the legislation when we had an idea of how the rest of the world planned to reduce greenhouse gas emissions. The Federal Labor Government instead tried to blindly ram through this legislation without providing Australians with the full information and without opportunity for a rational debate and detailed scrutiny of the scheme. In the battle for hearts and minds, Kevin Rudd and his Climate Change Minister simply dismissed us, and all those against an ETS, as deniers and sceptics. Let’s be clear on this. The Liberal-National Coalition is not against climate action. But we were, and still remain, totally opposed to this flawed legislation. In taking a famous phrase

Cut emissions but not our jobs: Scott COMMENT Bruce Scott MP Federal Member for Maranoa

from former Prime Minister Paul Keating: “If you don’t understand it, don’t vote for it. And if you do understand it, you’d never vote for it”. The legislation was full of holes and would have done nothing to reduce global greenhouse gas emissions. So we voted it down. And we make no apology for forcing a somewhat sheepish PM Rudd to arrive in Copenhagen this week without a trophy to show US President Obama. The ETS in its current form would have seriously impeded the development of the Surat Basin. The promising growth in Chinchilla, Dalby and Roma would have dramatically slowed. Across Australia, the ETS would have seen 23,500 mining jobs lost, even with Labor’s offer of free carbon permits for the industry. Very little in the way of reducing global carbon pollution would have been achieved; mining jobs would have simply gone

overseas to another of the 150 countries which also mine coal. The Federal Government should put a heavier focus on direct action through investment in new, cleaner technologies for the resources industry. The development of the Surat Energy Resources Province provides an unprecedented opportunity to implement and refine more environmentally sustainable and responsible mining technologies and techniques, and can help to shift Queensland’s energy needs to more environmentally friendly alternatives, such as liquefied natural gas and renewable energy sources. The Rudd Government seems to have underestimated the environmental consciousness of resource companies, many of which are investing in their own carbon abatement technologies. The planned construction of an algae synthesiser farm at Tarong Energy’s coal-fired power station is just one example of direct action that can be under-

“A Coalition Government will focus on an action plan that embraces the logic of thinking globally, acting locally and responding responsibly.” — Federal Member for Maranoa Bruce Scott

UCG STANDSTILL It was the issue for Q4 of 2009 and, at the same time, the controversy. UCG aspirants want to surge to commercialisation but the State Government has put a clamp on the industry until 2011.

THE STATEMENT: “The proposed CSG to LNG industry will further strengthen the position of Gladstone and Central Queensland as a region of strong industrial growth over the next 10 to 20 years.” - Patersons Securities analyst Graeme Carson on the future of the LNG industry in Queensland.

taken by resource companies. By directly capturing the CO2 from the station’s chimney, the carbon is stored and consumed by algae to produce a multiuse biomass which can be used as feed for livestock or even as jet fuel. Ingenuity on a grassroots level will be a key factor in helping address carbon emissions and any new, viable technology should be supported by all levels of government. A Coalition Government will focus on an action plan that embraces the logic of thinking globally, acting locally and responding responsibly. Australia produces just 1.5 per cent of global greenhouse gas emissions and any carbon pollution reduction scheme implemented in Australia should concentrate on reducing that 1.5%. Rather than simply placing a market price on carbon, we should invest in new, sustainable technologies that will help us move to a greener economy. However, any plan to reduce greenhouse emissions should give top priority to Australian jobs and still allow resource-rich areas such as the Surat Basin to reach their full potential.

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Energy province denied state money Welcome to the last edition of the Surat Basin News for 2009. Last issue I made mention of the lack of maintenance of our roads and one highway in particular the Warrego Highway. I have been actively looking for additional funding sources for the repair of this and other infrastructure in the region. The State Government have a $100 million Sustainable Resource Communities fund to improve the economic and social infrastructure in key mining areas such as the Surat Basin. So far, of the $60 million allocated from the fund, $25 million has been spent through the

COMMENT Howard Hobbs MP Member for Warrego

Department of Main Roads on road infrastructure, ie Safety improvements on the Peak Downs Highway, heavy vehicle overtaking

lane, safety improvements Capricorn Highway and Flinders Highway flood mitigation. There is $40 million left in the fund and to date not one project in the Surat Basin has received funding despite being clearly identified in the partnership agreement as one of the four geographic areas of implementation. I strongly urge any local government or community

“There is $40 million left in the fund and to date not one project in the Surat Basin has received funding despite being clearly identified in the partnership agreement...” — Member for Warrego Howard Hobbs

Surat Basin NEWS Thursday 17 December 2009

group in the Surat Basin which identifies a need for infrastructure upgrades to send a submission off to the Premier and I will be happy to represent and help anyone with their submissions. I am pursuing the State Government for assistance and we need to work together in the region to put the pressure on them. Reflecting on this year it has been a busy one, with a State Election, the LNP’s first birthday and Queensland’s 150th birthday. As the year draws to a close I hope some much needed rain is received by all and that you are able to enjoy the Festive Season with family and friends.

PAGE 9

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

Surat Basin NEWS 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

Resolution needed Queensland faces missing a massive opportunity if the State Government's UCG policy fails the industry. The technology, while controversial in some quarters, has the potential to diversify the Surat Basin resource boom and Queensland's energy mix in major ways. UCG is capable of tapping into the stranded coal not accessible to conventional mining and coal seam gas extraction. If allowed to blossom into a commercial industry, it will value add significantly to Queensland's already bright outlook. The technology could be used to produce clean, efficient and affordable energy or fuels, critically important as the world's energy consumption continues to surge ahead of supply. Analysts believe by 2014, the gap between Australia's domestic supply of liquid fuels and demand will be some 600,000 barrels. That could cost the country in excess of $20 billion a year. UCG players like Linc have the potential to greatly limit Australia's reliance on imported fuels through the use of coal-to-liquids technology. This can only happen though if UCG is allowed to go commercial. Of course, UCG must be given the all clear by the consultative committee to proceed any further. Too much is at stake if the process proves to be unsafe or damaging to the environment. But if an acceptable consensus can be reached, the Surat Basin and all of Australia stands to benefit significantly from a commercial UCG industry.

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

Energy business powers a remarkable 2009 Western Downs Regional Council has had a very interesting 12 months in the region with developments strongly powering ahead in the Surat Basin energy province. This has been reflected by numerous propositions for different power stations and the official openings of the Carbon Energy and Linc Energy underground coal gasification plants in our region. Council has led numerous discussions with underground and open-cut coal mining companies representing a huge growth prospect for our region. This growth also encompasses the coal seam gas industry including all proponents involved in the environmental impact statement for the LNG pipelines to Gladstone, which is presently open to public comment. Overall, there are eight proposals to Curtis Island and Gladstone Port for the environmental impact statement process. Most of these statements, which are due in March, suggest 2010 will be a very important time for our region as we await who gets the ‘green light' for these energy projects. This year there has been an enormous amount of devel-

“This year there has been an enormous amount of development activity happening across the region with many exploration activities taking place.” — Western Downs Regional Council mayor Ray Brown

COMMENT Cr Ray Brown Mayor, Dalby Regional Council

opment activity happening across the region with many exploration activities taking place. However this activity has been coupled with inadequacies in some infrastructure across the whole region mainly due to the insufficient levels of state and federal government funding available towards road infrastructure. Central to this, is the importance of the timeframe in relation to Queensland Rail's proposal to get coal north of our region to Gladstone by major upgrades to the existing rail network, which also encompasses the Surat Basin rail network. This will stifle development unless some form of major expenditure is carried out on this rail infrastructure at a time when companies are interested in exporting coal out of Gladstone. Water has been an ongoing major concern in our towns and we are exploring options to utilise the services of our coal seam gas producers to supply water to the majority of our townships. We are heavily negotiating with all coal seam gas producers and looking at the proposals on the table to see how we can best benefit the whole region by encompassing the mining sector into our existing rural sector and urban towns. The proposal announced this year in relation to the introduction of renewable energy, specifically solar energy, shows an exciting time ahead for the Western Downs region as we can actually add

Energy developments continue to surge ahead across the Western Downs. to the existing development of fossil fuel activity with renewables. We have fielded keen interest from three key solar players and from the wind farm north of Dalby. With the climate change debate hurtling around the world at the moment, this is positive news as we continue the search for beneficial ways of utilising a renewable source of energy in our region. By the time this article goes to print I will be leading a small council delegation to investigate some of these issues with companies in Sydney and Adelaide, and we will also be visiting a small town outside Perth which has felt the full brunt from the mining sector. This is a necessary trip for council as we will see firsthand the positive and negative impacts that the local

mining sector is having on this small rural community. It's basically a short tour to gauge the various impacts that are occurring across mining sectors and rural communities. Western Downs Regional Council has made a solemn commitment to work with all the mining sector companies across the region in search of benefits not only for the development of the mining industries, but also for our existing industries and in generating jobs growth across the region. In the past 12 months council has built a very good rapport with companies across all sectors while at the same time taking every opportunity to promote how important our urban and rural sectors are. Council will continue to make this the foremost priority in any key decisions we make.

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Eventful year

A stronger future

Money goes missing

Queensland resources have been on a wild ride in a turbulent 2009 Michael Roche, QRC

Western Downs Regional Council is trying to plan for when the real boom hits Ray Brown, Mayor

The Surat Basin has been denied any of the $100 million targeted for Queensland energy provinces. Howard Hobbs, MP 2921899aa

Rollercoaster ride worth taking How Queensland resources powered through 2009 to finish on top, with Queensland Resources Council chief executive officer Michael Roche It will come as no surprise to many that the past 12 months has been a rollercoaster ride for Queensland's minerals and energy sector. Around this time last year, many resource companies found themselves staring into the abyss as the demand for resource commodities from traditional customers in Asia and Europe went into freefall. But just when we thought there was no stopping the downward spiral, along came China with dramatic sorties into the spot markets for copper and coking coal for steelmaking. Despite the shockwaves from the global economic recession, according to the Australian Bureau of Statics, Queensland resource companies increased direct employment over the past 12 months by 21 per cent from 37,800 to 45,800. However, the immediate outlook is neither unequivocally rosy nor totally clear. While some industry leaders are telling us that Australia cannot take China for granted as a rolled gold customer, others are equally adamant that we are seeing a permanent shift in our favour in the pattern of resource demand from China. Certainly, investment certainty has not been helped with our major export industries having more than 25% shaved off the value of their production in recent months, thanks to a sky-high

COMMENT Michael Roche Chief Executive Queensland Resources Council

Australia dollar. We estimate that Queensland's resources sector loses around $88 million a quarter every time the Australian dollar nudges one cent higher. That's also a loss to Queensland taxpayers of around $3 million a quarter in royalty payments, so everyone gets to share the pain generated ironically by our success in avoiding the worst of the global financial crisis. On an even playing field, the sky's the limit for Queensland's energy sector, but it's always sobering to count the number and height of the hurdles thrown up along the way. The Australian coal industry has made a lot of noise recently about global competitiveness, and it's had nothing to do with exchange rates. Its gripe was over a view from Canberra that you can impose $14.5 billion in additional taxes on the country's leading export industry over the next decade and expect to have no impact on global competitiveness or future

investment. Following negotiations between the government and the Turnbull-led Opposition, the new tax bill was whittled down to $13 billion — or about 10 times more than comparable industries were expected to pay for carbon permits to prop up the emissions trading scheme's arithmetic. At the state level, uncertainty continues to revolve around who will be the owner of the Queensland Rail coal transport business and the Abbott Point coal terminal. The coal industry has not been pushing for privatisation — but nor do we oppose it. What we do care about is getting the new ownership structure right. The coal industry is clear in supporting an ownership structure that promotes performance, invests to meet industry needs, maintains a sustainable cost structure and operates reliably to get our product to our customers. Conversely, the coal industry is strongly opposed to the creation of a privatised, integrated

QR coal transport business with monopoly control over the coal track network while also operating a coal freight business in competition with other providers who need to access that same track network. By breaking the QR coal business up and separately selling the above rail coal freight business and the below rail coal track business, ownership options will emerge that are aligned to industry's needs around performance, investment, cost and reliability. The coal seam gas industry's plans for $40 billion worth of investment in export LNG facilities are unparalleled in Queensland history. The state government is to be congratulated for its rejection of a prescriptive domestic gas reserve policy but other hurdles remain. For example, industry accepts the reality of new standards expected around the handling of coal seam gas water, but the transition also needs to be workable. Sadly there are influential advisers in the state bureaucracy advocating pie-in-the-sky rules for the transition to a new treatment regime for coal seam gas water and it's a situation that requires close scrutiny from ministers. The mining and export of uranium for peaceful purposes under strict

international controls is deemed appropriate policy by the Federal, Northern Territory, South Australian and West Australian governments but is prohibited in Queensland. We haven't seen a valid argument against the simple proposition that uranium mining in Queensland be subject to the same strict rules that have been applied elsewhere in Australia. Queensland also has oil shale deposits equivalent to at least three Bass Straits. The largest of these is now the under a lengthy moratorium and the leading developer must decide whether it's worth spending $100 million on new technology development to make an impression in what feels like an unwelcoming policy environment. With Australia facing a $26 billion a year liquid fuel import bill in five years' time, the lack of forthright government encouragement for Queensland's oil shale, coal to liquids and coal to gas industries is disappointing. That $26 billion a year fuel import bill wipes out the entire value of Australia's current agricultural exports. The ball is at our feet. We have the resources in fossil fuels, uranium, geothermal and other renew-

The coal seam gas industry’s $40 billion investment is unparalleled in Queensland history.

WARREN BARKER 0429 893 099

WALTER GLEESON 0427 689 342

NORM HOPPER 0428 624 901

able technologies to position Queensland as a genuine energy powerhouse. One of the things that the QRC will be looking for over the next 12 months is a maturing of the debate surrounding the complexities of global energy security and Queensland's place in it. We think it's time to move on from the 'tribalism' that has characterised the energy debate in Australia for so long. The reality is that in meeting global demand for energy, it is not a case of “either or”. Electricity demand is surging and according to the International Energy Agency, 80% of the growth over the next 20 years will take place in non-OECD countries, mainly in our region. Global power generation capacity is forecast to increase in the order of 4800 gigawatts. That's almost five times the existing capacity of the United States, or close to 100 times the size of Australia's power station fleet. There is no one-size-fitsall solution to energy security. Coupled to vastly improved efficiency and the development of lowemission technologies coal, gas, oil, uranium and renewables are all going to play a part in meeting future energy demand. Queensland and Australia are uniquely positioned — geographically and technically — to demonstrate leadership, and in turn, consolidate the prosperity gifted to this nation by a rich legacy of minerals and energy resources. In conclusion and on behalf of the QRC and its members, may I extend to the readers of Surat Basin News a happy Christmas and a rewarding 2010.

DON HART 0429 618 007

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Surat Basin News

RESOURCES

VOICE YOUR OPINION: editorial@suratbasin.com.au

NEXT STAGE: Syntech Resources remains on track at its Cameby Downs site as expansion plans continue to unfold

Syntech plans major mine expansion across districts PAGE 14

Arrow sets LNG financial deadline

In March, Arrow and its partners could make a final investment decision on the billion-dollar Fisherman’s Landing LNG project. PAGE 20

While construction had already started, Carbon Energy still celebrated the fact its 5MW, UCG power plant was on its way.

The meeting at Cameby Hall, during which Syntech Resources revealed in-depth its expansion plans.

Wandoan plant shortlisted and boosted 2921907aa

Carbon gives its generator a push along

Xstrata Coal has welcomed the Australian Government's announcement to spend up to $120 million on pre-feasibility work to further assess four short listed Carbon Capture and Storage (CCS) projects, including the Wandoan power plant project. The proposed Wandoan power plant project located northwest of Brisbane intends to generate 334MW after 90 per cent CO2 capture. It would store up to 2.5 million tonnes of C02 a year. Xstrata Coal will provide a

platform for Stanwell and GE Energy to develop an IGCC power station inclusive of C02 capture capability. As part of an alliance, Xstrata will transport and store the carbon, Xstrata Coal CEO Peter Freyberg said the Rudd Government had claimed an important leadership role in accelerating the global deployment of CCS. “This is a significant first step to position Australia as a key contributor towards achieving the G8's goal of establishing 20 CCS projects

globally by 2020,” he said. If the Wandoan power project proceeds, Xstrata Coal intends to supply coal from its Wandoan mine. That is currently undergoing feasibility studies and recently submitted its supplementary EIS to the Queensland Co-ordinator General. “Xstrata Coal is firmly committed to supporting the development of a suite of low emission technologies for fossil fuels as part of the transition to a low carbon future,” said Mr Freyberg.

Xstrata Coal is a member of the Global CCS Institute and a key contributor to the Australian coal industry's $1 billion C0AL21 Fund.

“Xstrata Coal is firmly committed to supporting the development of a suite of low emission technologies...” — Xstrata CEO Peter Freyberg

Business as usual despite reaching milestone It is business as usual for Northern Energy despite the coal miner reaching an important milestone in its approvals process. Based in Brisbane, the company wants to pull five million tonnes of coal a year out of its Elimatta site near Wandoan and have it railed to the Port of

PAGE 12

Gladstone by 2013. Last month, it released the draft terms of reference for the open cut coal mine, the final hurdle before an EIS can be submitted to the State Government for approval. Managing director Keith Barker said an exhaustive amount of work had not only

gone into the document but many of the environmental checks expected in the EIS. He said Northern Energy had many of the immediate issues under control but admitted providing evidence of the cumulative effects presented more of a challenge. To complete the EIS, the

Surat Basin NEWS Thursday 17 December 2009

company must take into account the impacts all nearby coal mines or energy projects would have the area. “That's difficult in any circumstances, trying to work out what you're doing while trying to see what other projects are doing” Mr Barker said.

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Surat Basin NEWS Thursday 17 December 2009

PAGE 13

RESOURCES

Belated industry milestone Carbon Energy gave the first stage of its march towards UCG commercialisation an official move along and got with it a ministerial stamp of approval last month. Three months into the build, Carbon managing director Andrew Dash and Ministerial Secretary Michael Choi gave the ribbon at the Bloodwood Creek power plant a belated snip. When finished early next year, the plant's syngasfuelled generator will send 5MW of electricity into the Queensland grid under an agreement with Ergon

— Managing director Andrew Dash

Energy. The ceremony might have been late, but with the UCG industry having to prove it is safe within the next two years, Mr Dash said the start of work was perfectly timed. “Here we're demonstrating that with the gas we're flaring we can turn it into electricity and we can turn it into a real commercial project,” he said. The 5MW generator is the first stage of Carbon’s detailed trial that, if the State Government approves, could pave the way to a 300MW, low emissions power station. Plans are also to build a fertiliser manufacturing plant on a nearby site

tagged Blue Gum Industrial Park. Mr Dash said the trial was a critical starting point considering the scrutiny the UCG industry faced. “It's very important in establishing the credentials for the business,” he said. Mr Choi admitted the State Government was watching the industry very carefully, but he said it was with more curiosity than suspicion because of what it could do for Queensland's energy mix. He said he believed the Bloodwood Creek trial could help take UCG to “new heights”. “We're here today to witness a modern benchmark

and a very important milestone,” he said. Carbon only early last year started producing gas at the site, which is off the Condamine Highway 25km east of the small Kogan township. “The past 12 months for our organisation have been fantastic,” Mr Dash said. “We've gone from the research bench to a real, live demonstration of our technology.” Chairman Kim Robinson said while the rise was almost meteoric, it remained on track. “This is all part of our company's well defined growth strategy,” he said. The carbon capture and storage trial could be in place by as early as next year, which would make it Australia's first low emission power project.

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Construction work is still unfolding at Bloodwood Creek, south-west of Dalby.

“It's very important in establishing the credentials for the business.”

Carbon’s ministerial stamp of approval for Bloodwood Creek

Carbon Energy chairman Kim Robinson, Queensland parliamentary secretary Michael Choi, Carbon managing director Andrew Dash and Western Downs mayor Ray Brown launch the Australian first UCG-fuelled power plant on Thursday.

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Arrow environment co-ordinator Rebecca Koolik speaks with locals Susan Costello and Peter Gardner in Chinchilla last month. forces and spending. “We expect that our 80-strong workforce in Dalby will increase significantly and more than 100 local companies will be directly involved in our operations,” he said. Mr Quinn said the scale of the LNG plant did not diminish its place as a prized asset. While smaller than the others, Gladstone LNG has some clear advantages that make it financially viable and closest to realisation. The LNG plant would be the only on the mainland at Fisherman's Landing, which would make it cheaper to build and easier to access. The plant would prepare Arrow ahead of the world-scale Shell Curtis LNG project, which could be producing 16 million tonnes a year by 2014. “It will sharpen the company's execution capabilities and increase our confidence to pursue other LNG options,” Mr Quinn said.

It would also consume the excess gas inevitable during ramp-up period — gas which would normally just be flared. Gladstone LNG is the only of Queensland's LNG projects to have EIS approval. Ahead of the March deadline, Arrow will progress field development plans, funding models and construction tenders while finalising commercial contracts.

“It will sharpen the company's execution capabilities and increase our confidence to pursue other LNG options.” — Arrow Energy’s Gareth Quinn

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Arrow Energy hopes to be the first of Queensland's LNG pack cleared to target Gladstone with a final investment decision possible by March next year. Arrow staff and consultants delivered the EIS document for the Surat Gas Project, an expansion campaign to fuel Gladstone LNG, among other projects, to a series of community meetings across the Surat Basin last month. The visit came a week after Arrow managing director Nick Davies announced the deadline. Gladstone LNG would be the smallest of the five Queensland projects with the first of two stages to produce 1.5 million tonnes a year by 2012. Others like BG and Santos want at least 16-million-tonne plants. However, even a project of its scale will require a large expansion of Arrow's gas fields around Dalby within the next two years. Arrow produced 16 petajoules of coal seam gas last year but must supply at least 90 petajoules a year to Gladstone LNG's first, $500 million train. More than 1500 production wells will be developed in stages to meet demand. Manager of external affairs Gareth Quinn said such massive gas field development would demand an increase in local work-

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Surat Basin News

THE COMPANIES www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

TOP OF THE MARKET: Chinchilla First National made it consecutive wins at the state awards last month.

Award winning resilience Tough economic conditions? Volatile market? In 2009, none of that applied to First National Chinchilla as it was last month recognised as Queensland’s busiest and most thriving branch The sales team, led by principal Bruce Booth and sales consultants Leanne Healy and Peter Etheridge, won the 2009 Excellence Award for most residential sales at First National Queensland’s gala awards dinner on Saturday night. Mr Booth said the award, which followed on from last year’s rural category win, recognised the sale team’s ongoing improvement and its local expertise. He said First National Chinchilla had

PAGE 22

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— Chinchilla First National’s Bruce Booth

Development offers front row seat 2921929aa

Easterwell Group is proving to be a leader when it comes to workplace training. The company recently claimed a coveted award from the Mining Industry Skills Centre.

“It’s been a pretty active 12 months or so.”

Developers or business owners can now secure their place in the only heavy industrial estate between Toowoomba and Roma, located in the heart of the Surat Basin. Within an hour of 90 per cent of the major resource projects of the energy province, Surat Basin Industrial Park provides the commercial advantages of a sustainable, master-planned industry estate. Its central location allows direct access to the major gas, coal and energy projects. Expressions of interest for the 28-lot first stage have opened and are expected to be available for settlement in October 2010, a month

before many of the major coal seam gas producers will commit to their LNG facilities. Surat Basin Developments director Warren Daniells said the council’s industrial estate in Chinchilla was sold out. Some early investors had already resold and cleared more than 50 per cent return on their investment. “It’s a matter of who dares wins,” he said. “You can secure a piece of prime industrial land at today’s prices and, when the inevitable shortage hits, reap the rewards sooner rather than later.” Surat Basin Industrial Park features 28 lots ranging from 4000 square metres to

1.16 hectares. Stage one is designed for medium to heavy industries and features a wide-set, 30-metre road reserve, underground three phase power and town water and sewerage. Stage two is expected to commence in late 2011 and will feature 17 large-scale lots, ranging in size from 0.4 hectares to four hectares.

“You can secure a piece of prime industrial land at today’s prices...” — Surat Basin Developments director Warren Daniells

Surat Basin NEWS Thursday 17 December 2009

Book your place at the heart of the Surat Basin energy province.

COMPANIES

Downlands proves to be the perfect recipe to success

Holiday or work Maguires can get you there Maguire Coaches & Travel is owned and operated by Leo and Kaye Maguire and for the past 21 years they have been providing the Surat Basin with friendly and safe bus transportation. With the commencement of energy projects in the Surat Basin, Maguire Coaches & Travel has developed the commercial side of the business and now service major corporate entities with their contract bussing requirements in the Western Downs area. Maguire Coaches & Travel provides services ranging from airport transfers (Brisbane and local) to daily bussing of employees to their worksite ro any other charter needs. Today, the business operates from its new travel office in Heeney

Street, Chinchilla, while bus depots have been established in Chinchilla and Dalby. Maguire Coaches and Travelâ&#x20AC;&#x2122;s team are proud of their excellent safety record due to quality management systems, which are regularly checked by Queensland Transport. Maguire Coaches & Travel strives for excellent customer service â&#x20AC;&#x201D; emphasising a friendly and relaxed atmosphere, within a reliable, flexible and safe environment.

Kaye Maguire (pictured has with her husband Leo been the driving force behind Maguire Coaches and Travel for 21 years. The business expanded this year to a new Heeney Street, Chinchilla, travel office. 2921933aa

Surat Basin NEWS Thursday 17 December 2009

Evans Possum came to Downlands College five years ago from his homeland, Kowanyama not knowing what to expect or what was ahead for him. Commencing at Downlands in year 8, Evans attended school for the full five years, successfully achieving a Queensland Certificate of Education at the end of year 12. Evans passed all of his year 12 subjects. A well-liked and popular member of his year group, Evans is Downlands College first Kowanyama student to graduate. Receiving the Toowoomba Regional Council Mayoral medal in 2008 and a Special Merit Award at the 2009 year 12 awards and prize ceremony, Evans was a good student who fully embraced life at Downlands and the opportunities available to him. A keen rugby player, Evans played in the First XV at times dur-

ing the year, including the prestigious local Downlands/ Grammar match and tour squad to New Zealand and Fiji during the season. Obtaining a passport for Evans to travel overseas with the college was a most interesting exercise as neither Evans or his mother had birth certificates. Evans' parents travelled from Kowanyama to be present at his valedictory celebrations which was a huge effort on their part, flying to Cairns, on to Brisbane and then up to Toowoomba for the occasion. While Evans is not sure what he will do next, he was torn between returning home to Kowanyama to his family or going elsewhere to do a trade. Downlands College wishes him well in his every endeavour and given the determination he showed here at Downlands we are sure he will do well in life.

PAGE 17

COMPANIES

Real estate merger reaps return November 2008 saw the successful joining of Ray White Rural Chinchilla to Chinchilla Real Estate, two agencies that had forged their business and reputation on providing exceptional service and care. Since then, the company has improved its presence within the communities of the Surat Basin as well as across the rural sectors of the region. It proves a close knit team of local real estate professionals, backed with the strength and respect of the Ray White Rural network, can cre-

ate great results. The new Ray White Rural Chinchilla business has become a team of close-knit local real estate professionals with experience in sales and property management. ith the increasing number of people heading to the Surat Basin keen to own or invest, local experience counts. Manager Rachael Pascoe is well aware that choosing the right real estate agent can make all the difference to the successful sale or purchase of your new home or investment. “If you can’t communi-

cate with your agent, you will go looking for someone else,” she said. “Our sales representatives, property management team and support staff are all here to help you achieve your real estate goals.” The sales team consists of Warren Barker, Walter Gleeson, Norm Hopper and Don Hart. Warren has been an art of the real estate industry within the Chinchilla and Miles area over the last 18 years. He has a keen interest in the Roma, Miles and Chinchilla areas.

Warren was born and bred in Chinchilla; his approachability and sense of humour allow him to get to know and understand his clients. His strengths of sales are residential and development properties. Norm has five years of rural sales experience and has a passion for the rural lifestyle. He enjoys helping others find their own slice of agricultural paradise. Don is easygoing and down to earth with a vast knowledge of the local area and a keen interest in the cattle industry.

You can generally find him in the office on Thursdays and Fridays. Local man, Walter, is finding the current attention from buyers is keeping him and the other sales staff busy. “The renewed interest is very exciting and bodes well for the property markets within the region for 2010,” he said. Another area of the business experiencing an upward shift is the property management department. Property manager Anne Mohr and assistant Terry Hay have been developing a strong management port-

folio over the past 12 months and they are continuing to attract new owners and tenants to make.

“The renewed interest is very exciting and bodes well for the property markets within the region for 2010,” — Ray White Rural’s Walter Gleeson

Training among the best Australia’s largest, privately owned integrated energy service company, Easternwell Group recently won the Mining Industry Skills Centre’s (MISC) prestigious Leading Training Processes and Practices of the Year - Registered Training Organisation Award. Easternwell Training is the company’s registered training organisation that provides nationally accredited competency based training and industry specific training to all personnel.

Easternwell Training was also the recipient of the Barry Coventon Perpetual Award which acknowledges organisations that display a passion for training. Following on from the success of winning the Premier of Queensland Smart Award last year, Easternwell is fast proving its competency as a leader. Easternwell Training’s achievement was announced on September 25 during MISC’s presentation event in Brisbane. Easternwell’s managing

director Troy Campbell, who was awarded the Australian Institute of Management’s Toowoomba Owner/Manager of the Year last year, was very pleased to hear of the company’s success. “We are a dynamic company and it is a very exciting time to be a part of the industry. “This is a great achievement and we are fortunate to have an enthusiastic training team passionate about delivering award winning training throughout the company,” he said.

Easternwell training representatives accepting the awards - Matt McClymont (group training manager), Mark Stacey (learning and development manager) and John Robertson (RTO manager). 2921936aa

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Surat Basin NEWS Thursday 17 December 2009

COMPANIES

Metro listed and heading underground

Expertise makes WDS the leader of Surat Basin pack

Exploration company MetroCoal became ASX listed last month after an oversubscribed initial public offering. MetroCoal managing director Mike O'Brien said this month the $10 million IPO was oversubscribed and the company would issue 40 million ordinary fully paid shares at an issue price of 25 cents. “We're delighted about the response to the IPO,” he said. Mr O’Brien said MetroCoal was focused on the discovery and development of world class coal deposits in the Surat Basin. “The $10 million we have raised through the IPO process will allow us to continue our exploration program targeting coal within the basin,” he said. “A large percentage of funds will be spent in the ground, on both drilling and major geophysical surveys to target thermal coal.” MetroCoal holds seven exploration tenements covering 4000km² of thermal coal bearing strata within the basin. “We have a very large tenement holding in one of the world's premier mineral provinces,” Mr O'Brien said.

The right partner to have at the head of the gas industry WDS Limited are specialists in all aspects of coal seam gas field development, having many years experience servicing all the major CSG companies in the Surat Basin. WDS is a large, Australian, public listed company which provides engineering, fabrication, construction and installation services in the energy, mining and infrastructure sectors of the economy. In particular, the oil and gas division has a close relationship with the south west Queensland community through its many projects, offices and camps in the area. The company’s expertise covers the development and construction of gas and water gathering

systems, well head connections, gas compression facilities and high pressure gas and water pipelines. Recently, WDS acquired the business of Titeline Energy which adds the skills of drilling to its already impressive list of capabilities. WDS can honestly boast of a full field capability from drill to gas delivery. Last month, WDS took part in the successful Surat Basin Conference by having a stand which highlighted its involvement in the coal seam gas business. In this way and through its policies and activities, the company demonstrates its commitment to the development of the region in a safe and sustainable way.

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Surat Basin News

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VOICE YOUR OPINION: editorial@suratbasin.com.au

POWER UP: First turbine synchronised to grid at Darling Downs Power Station, Origin’s $1 billion Australian first

PAGE 22

Same water woes, same solutions Arrow Energy is back negotiating with the Western Downs council over how a town is going to be drought proofed and a lot of water saved.

PAGE 21

Domino falls in link to export ports The approval of the Border Railway in October was another important step in the realisation of the critical Surat Basin Railway.

Darling Downs centrepiece powers up for summer rigin Energy met a key milestone this month by successfully synchronising to the grid the first turbine of its 630MW Darling Downs combined cycle power station. Darling Downs Power Station, Australia’s largest combined cycle power station, is the centrepiece of an investment of more than $1 billion by Origin in providing cleaner natural gas-fired electricity. This month, the first of three 120 MW gas turbines was synchronised as part of a commissioning phase which will extend over coming months. A steam turbine will capture the waste heat from these gas turbines, increasing the efficiency and capacity of the plant. The key milestone follows completion of the 205km domestic gas pipeline linking the power station to Australia Pacific LNG’s

Staff celebrate this month’s milestone.

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“(This month’s) successful synchronising is a major milestone in bringing Darling Downs Power Station on line next year,” — Origin’s Andrew Stock

One of Darling Downs Power Station’s gas turbines is now synchronised. Power Station will bring Origin’s total generation capacity to more than 2100MW with

expected capacity to reach 2800MW by the end of 2010,” Mr Calabria said.

Corporation puts missing piece out there It is a vital piece of the puzzle but one that often gets lost in the rush, so the Surat Basin Corporation is taking it on first. In Toowoomba during March, the corporation will host an infrastructure forum, the first of nine similar events planned for 2010. CEO Richard Krause said rail, port and roads would all be covered at

PAGE 20

the two-day event. He also expected gas pipelines, Queensland's transmission network and demand on industrial land to be featured prominently. “These are the things that can often be overlooked during a period of great industrial change and growth, like the one the Surat Basin is going through at the moment,” Mr Krause

said. “We hope by highlighting the infrastructure shortfalls we can impel government and industry into action.” Mr Krause said the corporation hoped to have representatives from the Surat Basin Railway and Queensland Rail speak about the region's long awaited link to Gladstone. He said the forum

Surat Basin NEWS Thursday 17 December 2009

would also help build industry capability across the Surat Basin. “Those business owners who attend will get an idea of the level of construction work needed and the level they're going to have to have their businesses at — whether they're manufacturers, hairdressers or accountants — to keep up with the demand,” Mr Krause

said. Mr Krause said the flow-on effects into Surat Basin communities could be better services, infrastructure and a stronger, more capable industrial base. Nine forums will be held in 2010 covering areas such as coal seam gas, investment and coal mining. They will culminate with the annual Surat Basin Conference.

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The sell-off of QR will not delay the Surat Basin Railway, according to ATEC chairman Everald Compton. The State Government announced this month QR's coal and freight business would be packaged and sold, with Queensland residents to be given first access to the share offering. Mr Compton said whoever bought QR would retain the partnership agreement with Surat Basin Rail. He said the only change would be a new partner for the private consortium building the billion-dollar export link. “When we know who owns QR, that's when we'll bring them into the fold and start negotiating,” Mr Compton said. Surat Basin Rail's business case has yet to be approved by the State Government but Mr Compton said he was confident the railway would be opened by 2013. If the private consortium misses the mandated deadline, it would have to seek re-approval from the State Government. “We will finish in 2013 because that's the date in the mandate when we have to finish,” Mr Compton said. “We're just blazing away at all our work, all our engineering, all our environmental issues, and we're making steady progress.”

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The Surat Basin Corporation believes the first of the dominos have toppled at either end of the trail that meets in the heart of the Surat Basin. In October, Australian Transport and Energy Corridor announced its $900 million Border Railway between Moree and Toowoomba had been approved by both the NSW and Queensland governments. ATEC plans to start work on an EIS immediately with financial closure planned for 2011 to be constructed by 2014. That same day, Xstrata submitted plans to state and federal authorities for a new billiondollar harbour between Gladstone and Rockhampton. That project replaces the previously smallscale Port Alma and responds to Queensland’s coal port and rail infrastructure struggles to cope with renewed Asian demand. Surat Basin Corporation CEO Richard Krause said both projects consolidated the future of the Surat Basin Railway and the 16plus coal mines between Toowoomba and Wandoan that need access to export ports. “These two projects are more or less designed to link with the Surat Basin Railway,” he said.

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PAGE 21

INFRASTRUCTURE

We’re back at Plan A Arrow water may flow after all with parties out to broker a deal second time around, John Farmer reports. “Give us some timeframes and what it's going to cost,” he said. “We need to know before March because we're going into future budgets. “We're talking some serious dollars and we've got limited dollars in our budget. “Let's see where we can best spend those dollars.” The Dalby plant would be a world-first and could trigger similar plants in Chinchilla and Miles. Cr Brown said water was of concern across all of the Western Downs, especially as its towns continued to grow. “Council just can't keep going ahead having developments left, right and centre if you don't plan to have infrastructure in place

Chinchilla’s water supply is nearing a critical low along with most town supplies across the Western Downs. to cater for it,” he said. “Water is one of those issues.” Near Dalby, Arrow currently disposes of 10 megalitres of waste water every day through feedlots and for coal washing. That figure could reach 50 megalitres a day within three years. Manager of external affairs Gareth Quinn said Arrow wanted to see a supply agreement reached second

2921951aa

Dalby could know by March whether its dwindling supply is getting replenished with the water all but lost earlier this year. Western Downs mayor Ray Brown said he wanted an agreement with a coal seam gas company, most likely Arrow Energy, bedded down inside four months. He confirmed talks with Arrow had started again eight months after a similar arrangement collapsed with pens ready to sign. That was backed with $11 million in state and federal money. Cr Brown said the council would again want the government to cover some of the costs. But he said before any bills had to be paid, someone in the industry needed to take charge.

An example of some of the water harvested as part of the coal seam gas extraction process. time around. “Our preference is to treat this water and see it used beneficial-

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ly,” he said. “The resource is too valuable to dispose in waterways or reinject.”

Kogan still not quite its old self CS Energy's Kogan Creek Power Station is still operating at half capacity while ongoing repairs to a broken unit transformer are being conducted. The power station near Chinchilla has been without the transformer since early October when it failed to start during a routine shut down. CS Energy was unable to tell Surat Basin News when the transformer would be returned to Kogan Creek and when the power station would be operating at full capacity. Kogan Creek site manager Ivan Mapp has assured residents the problem has not affected the local power supply. “This has had no impact on power supply to the region as there is ample capacity available from other power stations on the national grid,” he said. “The broken transformer will be replaced over the Christmas/New Year break.” Earlier this year, Mr Mapp said he was unable to put a dollar value on what the outage would cost the company but said it would have a “substantial impact”. The unit transformers are used to provide Kogan Creek Power Station with electricity.

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ON THE JOB: QGC teams with Tara school to get indigenous trainees on the gas field, into on-the-job training

PAGE 24

TV campaign launched Origin Energy put its Surat Basin activities up on the small screen for all to see last month. Its new TV and internet campaign was launched at the Miles Historical Village.

Trainees hit QGC fields A strong partnership between the Tara Shire State College and QGC culminated last month with two boys starting on-the-job training. Jason French, a year 11 student, has started a Certificate III in Warehousing and Logistics and Trevor Massey, a year 10 student, started a Certificate II in Engineering. Both boys are receiving their training through Axial Training and host employer QGC. The indigenous school-based traineeships are enabling

PAGE 26

Santos powers local jobs in Maranoa Santos launched its apprenticeship program last month to train youngsters across the region and get them into local jobs.

“QGC is proud to be part of this program, which gives opportunities to young people to get a head start in the coal seam gas industry.” — QGC’s Neil Forsyth

Tara Shire State College transitions officer Joan Ford with newly appointed QGC trainees, Jason French and Trevor Massey. 2921956aa

City growth to ride resource wave Bob McCarthy's job is to predict Toowoomba's growth, so a keen interest in the Surat Basin comes mandatory. In October, Mr McCarthy was appointed head of the city's new economic development board, which features many of Toowoomba's business heavyweights. He said the level of mining and gas extraction projected for the Surat Basin made it

inevitable its effects would be felt not only into Toowoomba, but across the Darling Downs. “One of the major thrusts of growth in the greater region — the area west of the Dividing Range — is going to be the activity that’s going to place in the Surat Basin for the next 10, 20, 30 or even 50 years,” he said. Mr McCarthy said Toowoomba had the

chance to play a key role in the Surat Basin boom beause of the support education and training facilities could provide. He said that could be an attraction for many of the technology or logistics providers vital to the energy business. “It (Toowoomba) has the back up capacity that is required by high level technology like that used in oil, gas and mining,” he said.

Surat Basin NEWS Thursday 17 December 2009

After watching the growth explosion of the early Bowen Basin, Mr McCarthy knows all too well the importance of planning. “I’ve seen what can happen if you don’t get the planning right up front,” he said. McCarthy said Tooowoomba’s future would be decided by the work done now. “Toowoomba will be, if we get the planning right, much the same as

it is now just much bigger in the sense that it will be a major service centre for the mining industries,” he said.

“I’ve seen what can happen if you don’t get the planning right up front.” — Bob McCarthy

PAGE 23

PEOPLE

Origin’s gala launch of local TV campaign Set inside a living testament to the Miles district’s past, Origin launched a new campaign with a view to the region’s future in October. The local landholders, business owners and community identities who star in the two television commercials and web-based promotion were invited to an exclusive preview at the Miles Historical Village. Two weeks before they’d hit television screens, Origin stakeholder operations manager Brendan Barrett said the commercials recognised the role of local communities in the company’s Surat Basin emergence. He said that would not have been made possible without strong, local partnerships. “Origin has been very much at the forefront of growth in this region and that certainly would not have been possible without the support and togetherness we feel from the people

Simon and Kylie Drury with sons Lachlan, William, Timothy and Thomas during the filming of Origin’s television and internet campaign. of Murilla,” he said. Mr Barrett said the campaign aimed to make people more informed about the coal seam gas industry and Origin’s LNG ambitions. “People are concerned and, not only concerned, but interested in the new opportunities there are with this industry.” Simon Drury, a Condamine district grazier with four Origin wells on

his property Condabri, appears prominently in the footage. For years, he has dealt with Origin as a landholder, a councillor and, with his son employed through Origin’s skills scholarship program, as a father. “Those sorts of things are fantastic for local kids,” he said. Grant Bignell appeared in the television commercial

as a business owner and A Grade coach of the Miles Devils. Mr Bignell said Origin’s plans had the potential to boost local employment and strengthen sporting clubs by attracting people to town. “It might take a few years but I think we’re going to see a lot benefits flow into our communities,” he said.

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Murilla Community Centre Inc 73a Murilla Street, Miles Qld 4415 Phone: (07)4627 2027 Fax: (07)4627 2021 E-mail: mccm@bigpond.com PAGE 24

Grant Bignell appeared at the launch of Origin’s television campaign as a business owner and Miles football club president.

Dalby Herald Chinchilla News and Murilla Advertiser Surat Basin NEWS Thursday 17 December 2009

PEOPLE

Brett Kerdick, Ali Wangmann, Alex Nixon and Tom Nixon.

Judy Green (Origin) and Alan Kewley.

David Mundell (centre) with Origin’s Ken Horton (right) and James Dimer.

Nathan Maller, Selwyn Maller, from Origin Mick Galdal and Beth Newton.

Merl Murphey, Marie Klein and Phil Klein.

Anne Croft and Margaret Hart.

A photo presentation to the York family. 2921968aa

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PEOPLE

Santos’ Roma kick start Origin's Sarah Knights, workshop presenters Peggy Cole (Origin education) and John Sattler (Education Queensland) with teachers at the Roma workshop.

Energy into classrooms

Santos announced the first group of successful applicants last month in a major apprenticeship program expected to have positive growth effects across the Maranoa region. The program is part of a partnership between Santos and Golden West Employment Solutions aimed at promoting local residents into local jobs. For Santos this announcement is just the beginning of the company's plan to generate the apprenticeships and trainee positions needed to help deliver the GLNG project. The first group of successful applicants included Guy Cave from Roma, Matthew

The first round of successful applicants to Santos’ apprenticeship program are (in no particular order) Guy Cave from Roma, Matthew Williamson from Roma and Thomas Zerk from Wandoan, who have been taken on as electrotechnology apprentices and Bradley Harvey from Roma, Thomas Lindley from Mitchell and Michael Lingard from Wallumbilla Williamson from Roma and Thomas Zerk from Wandoan, who have been taken on as electrotechnology apprentices and Bradley Harvey from Roma, Thomas Lindley from Mitchell and Michael Lingard from Wallumbilla as engineering mechanical trade apprentices. Santos' Queensland area manager Sam Klaas said the appren-

ticeship program was a great way of promoting locals into essential local jobs. “On graduation, these apprentices will be qualified to work in jobs such as diesel mechanics, electricians and electrical instrument operators at our plant operations at Roma, Fairview, Arcadia and Wallumbilla,” Mr Klaas said. Mr Klaas said the

program was part of Santos' dedication to community development. Golden West's sales manager Graham Moore said it was great to see companies trying to benefit the local community through programs like this. “Santos' commitment to rural community vocational training and skills development is exciting and offers real vocational

opportunities to rural youth,” Mr Moore said. “Santos has done a deal in the bush to train bush kids and benefit bush communities — it doesn't get much better than that."

“...it doesn't get much better than that.” — Golden West’s Graham Moore

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Teachers from across the region recently came together to discuss energy education and how to equip students with the knowledge to use energy wisely. The workshops took place in Miles and Roma and were facilitated by John Sattler from Education Queensland's Roma district office, and Origin education's Peggy Cole. Mr Sattler said energy and environmental education were significant topics. All teachers received copies of Origin's free classroom resources and explored Origin's energy efficiency calculator during the workshop.

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ROMA FRONT: Store to keep Roma community up-to-date on Santos’ current and future projects

PAGE 31

Bright sparks in Brigalow Three students from Brigalow State School took on CS Energy’s challenge to electrify the imaginary town of Electrovale. With plenty of initiative and team work, they came out on top. PAGE 30

The year from the resource front 2009 proved another powerful year for the Surat Basin. We look back on the events, announcements and people that made news.

Santos Queensland area manager Sam Klaas and Maranoa Regional Council mayor Robert Loughnan at the official opening of the new Santos store in Roma. Hornery Institute. For the past 12 months the Hornery Institute has been consulting with a range of stakeholders from across the Maranoa region to develop an understanding of what well being means for Roma and the surrounding communities Later that day Santos' manager for community and environment, James Purtill, unveiled a

new sculpture commissioned by Santos which will stand at the entrance of the Roma on Bungil arts centre. The unveiling of the sculpture signals a three year community partnership between Santos and the Roma Arts Committee. Mr Purtill said the sponsorship was another part of Santos' commitment fostering community growth.

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Chinchilla extends a welcoming hand Chinchilla has been feeling a whole lot more welcoming ever since they shouted “cut” and the credits started to roll. Chinchilla Community Unity made its debut at August's Surat Basin Conference armed with a promotional DVD and a team with only eyes for Chinchilla. Ever since, CCU has been hard at work on a first for the town. Leanne Evans, a founding member, said with energy projects bringing so many new people to the region, it was time for a welcoming strategy. “There are a lot of people moving to Chinchilla looking to be a part of the community,” she said. “We want to embrace the diversity that is becoming the new Chinchilla.” CCU's first weeks were working with a film crew on a lifestyle DVD that was pack-

aged with promotional brochures. It proved an instant hit when handed out in its hundreds at the Surat Basin Conference. “The response was fantastic — a lot of people wanted the folders and the Chinchilla locals were proud to be handing them out,” CCU member Marion Loveday said. The rest of 2009 was spent extending a personal welcome to new arrivals to town at a series of social functions. Mrs Evans said CCU had come far enough this year to “really hit the ground running” in 2010. “There was a need and a passionate, committed team came together to help a community seeking to become one,” she said. “Our success so far has been the way we've connected new arrivals with the existing community. “We have also generated

passion and inspiration in Chinchilla. “We want to keep that going.” The need for a welcoming strategy in Chinchilla was highlighted by the Western Downs Skills Project, a federally funded program targeting regional skill shortages. CCU is an offshoot of Chinchilla Community Commerce and Industry, a recently formed business and community group. CCU's Di Ewen said an effective welcoming strategy would be as good for Chinchilla as much as it would be for newcomers. “It will encourage all members of our community to contribute and become a vital part of our community,” she said. For more information contact Doreen Goldsmid at the Chinchilla Family Support Centre.

Women break the isolation The women of Roma's flourishing gas and oil industries have teamed up to break the isolation. Formed by Maree Petty, Western Downs Skills Project (Roma) officer, and three others working in the industry, Women in Oil and Gas met for the first time in July for a social evening. Five meetings and 25 members later, Ms Petty said she had been taken aback by its popularity. “I've been really surprised by the way it's all unfolded,” she said. “They all want to be part of the community.” Only around a tenth of workers in Queensland's resource industry are women, according to the Queensland Resources Council. Ms Petty said she was surprised to learn few professional networking groups like Women in Oil and Gas existed east of Brisbane, especially with the challenges they faced in the male dominated industry. “After all, let's face it, the

guys can just go to the pub. A lot of women don't do that.” Ms Petty said word had spread of Women in Oil and Gas with interest from Dalby, Chinchilla and Toowoomba for similar groups to be formed. She said many who had contacted her were frustrated by the isolation. “A lot of them relocate or come here as part of the flyin, fly-out workforce. A lot are single, don't know people and have no family support," she said. “It's hard for them in their spare time to make friends or become part of a community.” Women in Oil and Gas members come from all tiers of the resource industry, including the major coal seam gas producers and the businesses providing off-site services. Ms Petty said the diversity had added a fair amount of spark to the meetings. “It's a really good mix of people who now look forward to speaking to others in similar circumstances,” she said.

Surat Basin NEWS Thursday 17 December 2009

On hiatus over Christmas, the group has planned several events for 2010 including skill development workshops, community fundraising and workplace meetings. Ms Petty said the work done in 2009 should allow Women in Oil and Gas to flourish with the industries its members represent. “At the moment it's really only an informal group but there are a few members who want to make it a bit more formal,” she said. “But, we've got to remember, Rome — or Roma in this case — wasn't built in a day.” For further information contact Ms Petty on 0408 547 669 or mareep@maranoa.qld. gov.au.

“After all, let's face it, the guys can just go to the pub. A lot of women don't do that.” — Western Downs Skills Project officer Maree Petty.

TOWNS

Christy Ferguson, Jess Clarris and Judy Green (front) with Matthew Rusford and Carla Haig. 2921987aa

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Origin brings Christmas to its Chinchilla crew Origin employees together with their families travelled to Chinchilla on November 28 for the 2009 Origin Family Christmas Party at Bulldog Park. Judy Green, landowner liaison supervisor said more than 120 people travelled from across the region to attend

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the Christmas party. “This was a great opportunity for family members to meet the people their partners work with on a daily basis,” she said. Santa Claus paid a special visit on the night providing children of all ages with gifts from his Santa sack.

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Boodle’s Concrete Consistent Quality & Service Privately owned and operated, Boodle's Concrete is a long established premix concrete manufacturer that strives to maintain consistent quality and service. Established in 1968, directed and managed by Mr Les Boodle, the company has primarily been associated with major concrete construction and infrastructure in the Western Downs Region of Southern Queensland. Boodle’s Concrete provides specialised mobile/onsite concrete services, with current plans of opening a new plant in the Chinchilla township! Quality and Service is the forefront of day to day business practice with the company maintaining consistent updates according to their quality assurance policy. Their NATA approved tester plays a major role in the quality assurance program, and uses the Australian standard A.S 3600 (2005) and A.S 1379 (2005) as primary building blocks. The vast range of construction projects that the Boodle’s Concrete team has supplied concrete to over many years is testimonial to their broad project experience, technical knowledge and their trusted name in the industry.

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Boodle’s Concrete can offer customers flexibility through their mobile concrete plants which can move at a moments notice and be set up in a matter of hours. This allows the company to diversify into other market places, providing reliable, customised service that is second to none. This unique family owned and operated business, is supported by technical personnel, who can provide support for any specialised concrete problems. Forty years of experience in the concrete industry, consistent outstanding service, a genuine friendly approach to their work, and most importantly, the drive to create exceptional quality concrete, is what makes this upbeat and customer focused family busiiness competitive in todays market.

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Please contact Les Boodle 0429 969 197 or Ben Boodle 0409 969 197 for further queries Or via email: boodlesconcrete@hotmail.com PAGE 29

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An appetite for Chinchilla resource served as the main course The experts of Linc Energy's engine-room were in Chinchilla last month to stoke a fire almost extinguished in 2008. Linc CEO Peter Bond and his technical team used the first of its Limelight series events to reaffirm plans to fully develop the Chinchilla pilot plant. The commercialisation of the site had grinded to a halt more than a year ago when conflict between UCG and coal seam gas producers could not be resolved. Linc refused to wait for a resolution and instead took its commercial ambitions to the Arckaringa Basin in South Australia. But Mr Bond, speaking 35km north-west of the pilot plant that had been the birthplace of Linc, said the company had not forgotten Chinchilla. “There's no use fighting over a piece of dirt when we've got 50 other places to be, including South Australia,” he said. “Our vision is in the next two to three years to evolve and value-add with the potential to becoming a very big business during that time. “We can come back to it then.” As part of the conflict between UCG and CSG, the State Government placed a two-year pilot phase on the UCG industry

PAGE 30

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Linc hopes to one day return to its Chinchilla site to begin commercialisation. Linc manager of environmental affairs Matthew Buchanan likened the hiatus to an environmental impact study on an industry, not just a project. Mr Buchanan said Linc was working with all stakeholders to convince them of the credibility of the UCG process. That has included an intense, daylong sit down with government decision makers. “That was an incredibly worthwhile experience because it allowed us to instill confidence in the governments of South Australia and Queensland and helped us make great inroads into improving our credibility in Queensland and South Australia,” Mr Buchanan said. Chief operating officer Stephen Dumble said Linc was confident its commercial projects would be realised due to UCG's benefit to the

Australian economy, environment and its energy security. He said the amount of resource for both UCG and CSG should not be an issue. “The reality is there are billions of tones of coal, much of it stranded and unsuitable for coal seam gas,” he said. “Therefore, there is more than enough room for all these energy players, including us, in Queensland.” Mr Dumble said with extensive improvements in technology and expertise made over the past year, the final ingredient was the support of shareholders, communities and governments. “We have a lot of people we need to take on the journey with us because we can't do it alone,” he said. The Limelight information evenings were also held in Brisbane and South Australia in the following weeks.

Surat Basin NEWS Thursday 17 December 2009

TOWNS

2921994aa

1(,/ 0$16(// 75$163257 3W\ /WG 3URXGO\ VHUYLFLQJ WKH $XVWUDOLDQ 7UDQVSRUW ,QGXVWU\ IRU RYHU \HDUV Brigalow State School students Will Dalgliesh (front), Ella Dalgliesh and Adam Goodwin showed they are switched on when they were announced small school winners of CS Energyâ&#x20AC;&#x2122;s Energise Electrovale competition.

Brigalowâ&#x20AC;&#x2122;s power saving students Nuclear, hydro, solar, wind, geothermal and... rodent power? Students of the Western Downs have delivered futuristic, environmentally friendly and downright bizarre alternatives to powering the imaginary town of Electrovale as part of CS Energyâ&#x20AC;&#x2122;s Energise Electrovale competition. However, out of the 13 entries, few did it better than Brigalow State Schoolâ&#x20AC;&#x2122;s Adam Goodwin, Will Dalgliesh and Ella Dalgliesh. The three students took out first place in the small schools section and, last month, were presented with their prizes and $1000 for the school by Kogan Creek Power Station manager Ivan Mapp. Adam, Will and Ella used a trio of energy sources â&#x20AC;&#x201C; hydro, solar and win â&#x20AC;&#x201C; to keep energy flowing around the clock into Electrovale. â&#x20AC;&#x153;There are three power sources so if thereâ&#x20AC;&#x2122;s no wind, thereâ&#x20AC;&#x2122;s the solar; if thereâ&#x20AC;&#x2122;s no sun, thereâ&#x20AC;&#x2122;s the water,â&#x20AC;? Will said. While power security was a priority, clean credentials also took pride of place in the entry, which was made up of diagrams, a written piece and video. â&#x20AC;&#x153;We wanted there to always be a backup but it had to be clean and renewable,â&#x20AC;? Ella said. The energy solutions chosen to power the imaginary, futuristic town might be a while from becoming commonplace but Adam said the sooner they became widely used, the better. â&#x20AC;&#x153;We need them so we donâ&#x20AC;&#x2122;t pollute the air and impact on the environment,â&#x20AC;? he said. Kogan State Primary School took out second in the small schools section while Dalby South was named overall winner.

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PAGE 31

YEAR IN REVIEW

Four quarters of action LOOKING BACK ON THE YEAR THAT WAS FROM THE RESOURCE FRONT

Land deal sets BG on course

February marked a milestone moment in BG Group's Queensland LNG aspirations when QGC secured land on Curtis Island after a deal was struck with the State Government. Deputy Premier Paul Lucas signed off on the sale, “It's great to see a company of BG Group's calibre investing in Queensland's future, to create jobs and economic growth,” he said.

he EIS for the 210km Surat Basin Rail was released allowing the billion-dollar project

to move closer to final approval. It revealed up to 24 trains, 2.4km long each, would use the link to Gladstone every day as they moved upwards of 42 million tonnes of coal every year. At least 140 crossings and 40 bridges would make up the new section, known as the Southern Missing Link, between Wandoan and Banana. arbon Energy's $20 million UCG trial at Bloodwood Creek struck gold in February when it started producing commer-

cial gas. The quarter kept getting better when the company's coal resource soared 125 per cent, enough to fuel six world-scale manufacturing plants for 30 years. n March, the newly named Surat Basin Corporation appointed former golf course architect and industry expert Richard Krause (pictured) as its CEO. The corporation's first paid employee —– and its new name — set it on course for an influential year. The highlight would come in Q3.

Haystack’s stay of execution

Haystack Plain farmers were given some reprieve in April when Tarong Energy announced it had delayed taking its mining licenses to the market. Action group chairman Jeff Bidstrup urged the State Government to use the delay to come up with a management plan for the Surat Basin. That plan could spare prime agricultural land like that of Haystack Plain from coal mining.

he Surat Basin Corporation launched into the final arrangements for its showcase

event, the Surat Basin Conference. To be held over three days in Dalby from August 19, organisers had assembled a who's who of the mining, coal seam gas and government worlds. More than 600 people were predicted to attend. G Group surged in its push to Gladstone when it sold 72 million tonnes of LNG to a Chinese energy company. The 20-year-deal could be in play by as early as 2014, with BG hoping for a final investment decision midway through next year.

on show. SBC president Greg West put it best in his closing address when he labelled the Surat Basin “a once in a lifetime phenomenon”. he Braemar 2 Power Station was officially opened and no sooner did ERM Power begin looking to add to its energy portfolio. The $546 million gas fired station, the second to be built at the Braemar site, was officially opened by Minister for Infrastructure Stirling Hinchliffe.

A third at Braemar could be switched on by as early as 2011 before ERM Power sets its sights on a significant solar power venture.

n August, GE Power announced plans to build a 400MW coal fired power station with Stanwell and Xstrata Coal at the Wandoan coal mine. It could be operational by 2015 and incorporate world-first carbon storage and capture technology to capture up to 90 per cent of CO2 for future storage.

he Arrow/Shell LNG bid got a move along when the State Government gave it sig-

nificant status, streamlining its government approval process. It became the fourth Gladstone hopeful to be declared a significant project.

yntech Resources went from minor developer to massive coal miner over night when it arrived at Cameby Hall with its 14 million tonne a year expansion plan. Working for the past year at the 600ha Cameby Downs mine, Syntech has set its sights on a possible 1.5 billion tonnes of coal spread over 15,000 hectares between Chinchilla and Miles. The mine's terms of reference are expected by November with hopes of the mine opening in 2013.

antos followed BG Group's lead and signed a 20-year deal with joint venture partner Petronas for up to three million tonnes of LNG a

year. The supply contract came two months after Santos became the first Gladstone hopeful to release its EIS for public comment.

Inside the December edition

• UCG players put case forward for commercialisation • Surat Basin Corporation enters second year • The winners (and losers) in the race to Gladstone

PAGE 32

rigin's $35 billion LNG project in partnership with ConocoPhillips hit the road for the first time with a series of information days across the region in May. The six or seven staff who boarded the road show paled in significance to the 5000 people needed to build what could become Australia's largest LNG plant. Origin's tour de force came five weeks after the project was declared of state significance.

Conference finally arrives

After months of planning, the nerves finally settled on the morning of August 19 when the 2010 Surat Basin Conference officially opened. Three days later, attendees had witnessed the Surat Basin from the sky, heard from the experts and met people who could take their businesses to another level. The Surat Basin Corporation chose “linking with opportunities”" as the theme and inside the Dalby Showgrounds in mid-August, there was a generation of opportunity

Deputy premier Paul Lucas signs a slice of Curtis Island over the QGC. 2922002aa

• Toowoomba deputy mayor joins corporation • Carbon Energy gives pilot plant a move along • Western Downs Regional Council returns to negotiations for Arrow water

Surat Basin NEWS Thursday 17 December 2009