SBN Dec 18 2008 by Chinchilla Newspapers Pty Ltd

GREEN HORIZONS Australia’s first grain-to-ethanol plant grinds into action outside Dalby - Page 21

Surat BasinNEWS Thursday 18 December 2008

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Linc far from finished: Bond But first commonsense must prevail Once commonsense prevails Linc Energy will return to Chinchilla, says chief executive Peter Bond. In late November, Linc packed up and took its billion dollar coal-to-liquids plant to South Australia because, in part, its resource was not secure. The company had planned to take gas from burning coal underground and convert it

BY John Farmer editorial @suratbasin.com.au

into 20,000 barrels of ultra clean diesel a day by 2013. It had already spent $50 million on its trial 15km south-east of Chinchilla. But Queensland Gas was

competing for the same coal and in August the dispute over the shared resource entered the Supreme Court. In Queensland, petroleum licences issued to coal seam gas (CSG) companies can overlap the mining licences governing underground coal gasification (UCG). Mr Bond said he was frustrated because Linc had become embroiled in the “greater argument”.

He said a decision should have been made on Linc’s project and the overlapping tenement issue left to the State Government to resolve. “Both CSG and Linc specifically could have worked out a first step program and then worked out the bigger issue later on,” he said. “At least that would have allowed both to take big strides forward.” cont’d on page 10

A tale way too close to home At 7 o’clock on a Wednesday night in Miles, they entered the room unnoticed, taking their seat in about the centre row. Around 50 people had gathered to hear what Xstrata Coal had in stall for Wandoan and surrounding towns. Words such as growth, investment and new beginnings were bandied around. They were words the two unknown people in the crowd had heard over and over again - words that six years later mean nothing. Sid and Merilyn Plant travelled to Miles to tell a story that soon will be shared by so many Surat Basin towns. Turn to page 4 for their ‘coal’ hard truth.

EMPTY PROMISES Lucas’ commitment to protect iconic farming land treated as politicking by those with the most to lose. Page 7

MEET MR BG Sid Plant struggles to recount the past six years without becoming overwhelmed by emotion. He is one of the last standing in the Acland district, the site of New Hope’s coal mine.

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Frank Chapman arrives on the Surat Basin. Page 16

LOCAL NEWS

INSIDE THIS EDITION:

Surat Basin NEWS The Team

Surat Basin News

THE SURAT’S FIGHTING QUALITIES Coal seam gas helps stave off economic gloom

THE FIGHT FOR OUR FOOD FUTURE

Surat Basin News ARBON PUSHES ON

LOCAL NEWS

PAGE 6

Hopeland under fire by gas company

Laurell Ison Advertising

David Richardson General Manager

Aggrieved landowners claim deception as Arrow attempts to gain access to their properties to plan a proposed pipeline. PAGES 7

Farmers rubbish Lucas’ promise Deputy Premier Paul Lucas last month committed to looking at ways to protect farming land but farmers are not convinced.

John Farmer Journalist

Beth Walker Graphic Design

The Newspaper The Surat Basin News will initially publish quarterly and will be delivered via the three dominant newspapers of the region: the Chinchilla News, Western Star and Dalby Herald. It will reach the homes and offices of almost 12,000 living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region. Plans are the make the newspaper more frequent once support has been established.

“We want to find out where and when the major projects are going to happen and look how we can maximise the benefits back into the area.”

WDRDC’s OBJECTIVES 1. Support and enhance the interests of its members and their constituencies 2. Formulate policies and strategies that support co-ordinated regional growth and management of change 3. Foster co-operation among members on issues of mutual concern, or to further joint interests 4. Act as an advocate to state and Australian governments or public entities on issues of concern to members 5. To collectively represent members on bodies that influence operations of the state, region, sub-region and communities of individual members 6. Encourage jobs growth and population growth in the region 7. Develop or encourage strategic alliances to progress regional development initiatives 8. Work with the local government and others on the provision of additional services in the region including water supplies, education, health and ancillary services 9. Work to improve the image and liveability of the region 10. Disseminate and co-ordinate information relating to regional development opportunities and issues.

acific GTL should now by next year hether it is going to roceed with a plant apable of turning oal seam gas into iesel. It will be tuated just east of Miles.

even at this stage has changed communities in many ways.” While mainly optimistic about the development, Cr

environmentalists at ease,” he said. “It's got to be treated in one form or another for us to see the real benefits.” Cr Loughnan expects such large developments to attract a spate of support industries to Roma. While private developers have ensured enough industrial land will be available to cater to the influx, Cr Loughnan said the council might have to address residential needs. “The amount of new industrial blocks coming on line will probably drive a need for residential and commercial development,” Cr Loughnan said. “That's where this council is probably going to have to become involved.”

Xstrata EIS eleased for Wandoan he document to uide the development Australia’s largest oal mine was leased this month nd it provides a aunting prospect for e region.

PAGE 25

Ensign’s Surat presence With more than 54 years experience in the industry, Ensign provides operators with fast moving and safer drilling solutions. PAGE 26

Budget gets the Surat moving Customer service and vehicle safety has propelled Budget into a new period of growth. It helps the company is local and understands local needs.

Queensland Gas Company triumphed at a prestigious awards ceremony for the resources industry, beating majors including BHP Billiton and Rio Tinto to be judged Australia’s Producer of the Year. QGC was honoured in front of 150 executives including Andrew Forrest, the chief executive of Fortescue Metals Group, at the ResourceStocks Best of the Best Awards in Perth on November 6. The company was one of six winners to overcome formidable competition from a pool of 1000 Australian and international mining, energy and services firms in the sixth annual awards. In the Producer of the Year category, the judges said they had weighed up the success of major producers such as BHP and Rio along with fledgling mining and energy companies. “Australia has not been short of successful producers in the past 12 months, although a slide in global commodity prices left the limelight to iron ore, coal and energy companies as the months rolled on,” the judges said. “Queensland Gas Company has had an incredible rise in the eight years since it listed, claiming the front-running as Australia’s leading coal seam gas producer with its Surat Basin reserves expected to supply about 20 per cent of Queensland’s domestic gas market in 2009.” Avoca Resources claimed second place and Fortescue Metals Group placed third in the Producer of the Year category, eclipsed by QGC’s superior performance in the face of deteriorating economic circumstances. Paul Larter of QGC’s communications team accepted the award on behalf of the company’s management and staff. QGC has been a finalist for two years in succession, with managing director Richard Cottee narrowly missing out last year to

Queensland Gas Company was recognised as Australia’s Producer of the Yea at last month’s ResourceStocks Best of the Best Awards. Andrew Forrest, chief executive of Fortescue Metals, for the Executive of the Year award. “The amazing story of QGC’s growth was underlined by its performance this year in the face of poor economic conditions which have affected many potential front-runners as Producers of the Year,” Ron Berryman, the editor of ResourceStocks magazine, said.

“While many of the resource sector heavyweights continue to dominate the industry landscape, few can boast the growth and success of QGC and it was considered a fitting winner.” The awards were established to promote the recognition of Australian resource companies that reward their shareholders and achieve measurable growth in the 12 months leading up to the awards.

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Landowners living next to New Hope’s Acland coal mine share their story. Farmers dismiss Deputy Premier Paul Lucas’ promise to consider protecting iconic land. Industry leaders reveal why the Surat Basin will survive the economic crisis gripping the world.

BG Group chief executive Frank Chapman visits the Surat Basin to view his company’s latest purchase. Xstrata Coal release the Environmental Impact Statement for the Wandoan coal project. Pacific GTL pushes ahead with plans.

Ensign brings experience and reputation to the Surat Basin. Budget gets the region moving with local knowledge. Queensland Gas Company becomes Australia’s number one producer. FK Gardner sees a silver lining in the midst of economic gloom.

Surat Basin News

MAPPING OUT A WILD CORRIDOR Diversified puts its brand behind local wildlife

S Surat Basin News

PAGE 29

Origin hosts thirsty ministers Last month, State Government ministers visited Origin Energy’s Spring Gully field after releasing a new water policy PAGE 30

rrow branches ut to develop fth field Arrow Energy has eceived permission to evelop its fifth coal eam gas project, ituated just west of Dalby. Gas will be fed o the Braemar II power tation

obtain feedback from various key stakeholders. "The CLG has a broad membership of conservation and industry groups, community members, landholders and representatives from the Banana and Dalby council to ensure we obtain a balanced and comprehensive view of the EIS process from the community's perspective," he said. Mr MacTaggart said SunWater planned to hold further public meetings and project open days in the coming year and continue to meet with the project's CLG. Mr MacTaggart said work on the project was continuing as scheduled, with tasks being undertaken on a range of activities. "We are progressing with the Indigenous cultural heritage surveys and our field investigations are on-going." Mr MacTaggart said SunWater was also continuing with its investigation into coal seam gas water and how this

THE PEOPLE

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THE TOWNS

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PAGE 32

resource could potentially be included as part of the Nathan

Dam and Pipeline Project's scope.

“We are progressing with the Indigenous cultural heritage surveys and our field investigations are on-going.”

THE MAIN PLAYERS Shareholders in the WICET consortium are: Anglo Coal Australia Aquila Resources BHP Billiton BHP Billiton Mitsubishi Alli (BMA)

Northern Energy Corporation QCoal Rio Tinto Coal A t li

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VOICE YOUR OPINION: editorial@suratbasin.com.au

Cottee’s typically flamboyant farewell

TIME IS OF THE ESSENCE: Wandoan liaison group sets out to minimise the disruptions and maximise the benefits

District liaison group hits its straps in time of upheaval

ink between Queensland Gas arms and mines managing director n September, Gerry bids farewell with McKie was appointed community liaison victory lap of the officer with the Surat Basin Department of Mines SunWater project manager Peter MacTaggert speaking at a recent meeting in Wandoan.

MODERN TIMES FOR OLD FAVOURITE Big Rig lends a hand to burgeoning industry

www.suratbasin.com.au

Surat Basin News

Worldly traveller lands in Surat Basin

Dam taken to the people unWater project manager Peter MacTaggart said a series of community meetings over the past two months had provided interested members of the community an opportunity to learn about the project and speak with project members. "We've had a lot of interest in the project and I am sure this will continue as we progress further into the project investigations," Mr MacTaggart said. "The public feedback period on the project's Environmental Impact Statement's (EIS) Terms of Reference is now closed and once the document is finalised it will be provided to the Coordinator-General. "The project's EIS is expected to be available for public comment by the middle of next year. "We have also formed a community liaison group (CLG) for the project which meets regularly in Taroom to discuss the EIS process and allows us to

LEGAL AID AID ON ON HAND HAND LEGAL Law now now on on landowners’ landowners’ side side Law

OPPORTUNITIES ABOUND

INFRASTRUCTURE

The Website

Surat Basin News is not a necessity. It was born out of a passion for Australia's fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin. Surat Basin News will allow local businesses to network and communicate with everyone in the 300 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region's future while profiling the colourful characters that define our communities.

Roma Regional mayor Robert Loughnan expects challenges are ahead.

Loughnan realises there are challenges ahead for his council. Santos released the Draft Terms of Reference for its LNG project in August and revealed at a meeting with Roma Regional Council last month around 2000 wells would have to be sunk to secure its resource. This would likely include 600 development wells prior to 2015 and possibly 1400 more wells after 2015. Cr Loughnan said it was imperative coal seam gas companies treated water harvested at the gas fields. “Even though I know treating the water will have some impact on production I think it's something that has to be done to put landholders and

PAGE 7

COMMUNITY INPUT: Taroom group helps guide Nathan proccess

The Vision

wo coal seam gas companies could soon invest billions across the Roma region and mayor Robert Loughnan admits challenges are ahead for his council. Santos and Origin Energy's LNG ambitions are centred on the Roma region's coal seam gas reserves and both plan to make a final commitment by 2010. Cr Loughnan believes the full utilisation of Roma's gas could have widespread benefits for the region. “This was unheard of 20 years ago but if we were still relying purely on agriculture I think we'd be in a bit of trouble in all our towns," he said. "It's a godsend for us that

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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.

Queensland Gas produces results at national awards

Mayor admits challenges ahead as LNG aspirants make moves

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REGIONAL PRESSURE: Roma Regional Council faces massive resource investment and the inevitable challenges

PAGE 15

into the area,” Mr West said. The diversity of Surat Basin industries and the expanses of the energy province are encapsulated in the group’s executive and directors, according to Mr West. He said it would ensure none of the opportunities would be missed. “While it’s all about coal, it’s certainly not all about coal mines,” he said. “It’s about gas, it’s about UCG and it’s about water. “There are such a multitude of industries and we need to be in the best position to take advantage.”

THE COMPANIES

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Pacific’s gas ambitions

The inaugural executives of the Western Downs Regional Development Corporation — secretary Di Paez, president Greg West, treasurer Matt Ostwald and vice-president Marco Waanders.

Weatherford’s world of experience

RESOURCES

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Western Downs to work as one in face of boom

reg West believes enough of the planning, now is the time for action. Mr West made the determined statement when elected inaugural president of the Western Downs Regional Development Corporation. “There is not a lot of time to plan and get things right,” he said. “Now is the time for action and to cement where things are going to go across the area. “Industry and businesses need to plan for their future. “Existing businesses need to understand their capability and capacity so they have a chance of winning contracts then we need to attract new businesses and industry to the area.” The corporation held its first annual general meeting in Chinchilla earlier this month attended by Surat Basin industry, government and community leaders. WDRDC had been run by a board of interim directors since June 2008 when the Western Downs Regional Development Working Group was incorporated. Mr West said the corporation would continue to encourage regional growth and employment as the previous group did for two years. “We want to find out where and when the major projects are going to happen and look how we can maximise the benefits back

ON THE MOVE ACROSS THE SURAT

BG Group’s billion dollar Surat Stake

Haystack Plain’s battle for our future

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Surat Basin News

BRITISH INVASION

esource dispute ails to slow oodwood ial

and Energy. The past two months have been anything but quiet for Mr McKie. PAGE 36

Building skills with Origin assistance One of Origin’s skill scholarship recipients has shone at a recent awards ceremony. Find out who he is.

rom the brink of collapse three times to Australia’s 33rd largest company, Richard Cottee stepped away from Queensland Gas this month with a Surat Basin victory lap. Mr Cottee visited the Berwyndale South gas field — the birthplace of QGC — to throw himself a farewell barbecue attended by around 100 employees. His guest was Frank Chapman, chief executive of BG Group, the company that should soon complete a $5.2 billion friendly takeover of QGC. Mr Cottee spoke of a “frenetic, exciting” and “incredibly stressful” six years that started in 2002 when he made the move from CS Energy. Even by 2005, the company’s shares were still trading at 40c. BG Group offered $5.75 a share in October this year. “I’ve given up pinching myself because I do think I’m in a dream,” Mr Cottee said. “That’s why I’ve got a wife, she keeps pinching me.” Mr Cottee leaves with the company’s gas reserves driving an $8 billion LNG project

PAGE 38

Coal tour drops by

Former QGC managing director Richard Cottee (right) hands over the reigns of the company to BG Group chief executive Frank Chapman on a recent visit to Berwyndale South. “We have created permanency.” While Britain’s third largest oil and gas producer, Mr Cottee expects BG Group will honour and re-invest in Surat Basin communities. He believes the first show of faith was when BG Group decided to retain the brand he helped create. “The fact that a company as good as BG is keeping the brand Queensland Gas says they are actually going to try to be knitted in the community,” he said. Mr Cottee grew up in a small, country town and admits bringing wealth to the Darling Downs is one of his greatest achievements. He gleams at the fact 30 per cent of QGC’s shareholders were from south east Queensland. He speaks of “creating real wealth and a new industry”. “The whole of the Darling Downs was the cradle of Queensland,” he said. “People forget this is where the original wealth was created but it was always to me somewhat disappointing to see the gradual decline of its importance.

“I thought wouldn’t it be good if you could reverse that.” Mr Cottee regrets he will not be with QGC when a viable and beneficial use for coal seam water is implemented. But he believes it will happen under BG Group. “I guess I’m really saddened that all of our work we’ve done on the water has not yet come to completion,” he said. “I think it will within two years but again you need to build your house upon a rock. “We need to store the water while we come to this long term solution but the long term solution is there.” While uncertain what the future holds, Mr Cottee is in no rush especially after cashing in his shares for $29 million. “When you’re going through times of enormous change it is not a time for decision making if you can avoid it,” he said. “And, you know, because the shares have performed so well I can afford to avoid making that decision. “I can still get my fish and chips on a Friday night.”

Researchers visit coal affected towns to discover the impacts of mining and develop strategies to minimise the negative impacts. Wandoan and Chinchilla were the final stops. PAGE 34

Roma looks to a big 2009 The Roma Chamber of Commerce has been re-invigorated and is looking to work with the resource companies to make 2009 Roma’s year.

ichard Golden feels the world is closing in on Wandaon and only locals can ensure the district is not swallowed up. Mr Golden is chairman of the Wandoan District Liaison Group, which formed earlier this year to give the district a voice in the face of unprecedented resource development. Involving around 20 community members, Mr Golden said the group needed to be formed before the projects started. “We stand to have a significant proportion of the nonurban heart of this whole region taken away by this development,” he said. “If we don’t have something in place before that happens I’d be surprised we’d get it up and running. “I think it’d be too easy through a sense of despair to just rollover. “We’re not pro-mine, we’re not no mine, we’re just saying if there is going to be a mine we must at all costs make sure all things are taken into consideration.” While a prominent figure at this month’s community meeting held in response to Xstrata

Mr Golden admits bringin different organisations toge er has proven to be one of th Wandoan District Liaison Group’s greatest challenges But he feels it is essentia to limiting the impact on loc communities and farming di tricts. “One of the key thing that comes back to us from community members is why can’t we minimise the scale the disruption of the whole community with one large, very large, corridor in which all these developments mus take place,” he said. “Well, the Co-ordinator General is faced with all the warring corporations who do want to work together. “Our feeling, is that’s not really our problem.”

Wandoan District Liaison Group chairman Richard Golden discusses Xstrata Coal’s plans with Rob Thatcher. Coal’s EIS release, Mr Golden said the group did not solely focus on the coal mine. “We certainly wanted to make everyone certain that we’re just not an Xstrata liaison group because there’s an

awful lot more happening in this community than just an Xstrata mine,” he said. “Xstrata’s the biggest, no doubt, but we’re dealing with issues so much bigger than just the coal mine.”

“Xstrata’s the biggest, no doubt, but we’re dealing with issues so much bigger than just the coal mine.”

Dalby’s makeover starting from the inside out

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Diversified Construction puts its brand behind a program to record wildlife along its pipeline corridor. The Nathan Dam continues to build momentum. Origin Energy hosts ministers.

Introducing the Department of Natural Resources and Mines’ community liaison officer. Landowners have the law on their side thanks to AgForce lobbying. A worldly traveller arrives on the Surat Basin.

Roma’s Big Rig steps up to help a burgeoning industry. The Coal Communities Tour visits Wandoan and Chinchilla. Commerce Roma is rejuvenated and looking to make 2009 a big year for Roma businesses.

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THE SURAT’S FIGHTING QUALITIES

Surat Basin News

Coal seam gas helps stave off economic gloom

THE FIGHT FOR OUR FOOD FUTURE Haystack Plain’s battle for our future

LOCAL NEWS

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

Western Downs to work as one in face of boom PAGE 6

Hopeland under fire by gas company Aggrieved landowners claim deception as Arrow attempts to gain access to their properties to plan a proposed pipeline. PAGES 7

Farmers rubbish Lucas’ promise Deputy Premier Paul Lucas last month committed to looking at ways to protect farming land but farmers are not convinced.

The inaugural executives of the Western Downs Regional Development Corporation — secretary Di Paez, president Greg West, treasurer Matt Ostwald and vice-president Marco Waanders. into the area,” Mr West said. The diversity of Surat Basin industries and the expanses of the energy province are encapsulated in the group’s executive and directors, according to Mr West. He said it would ensure none of the opportunities would be missed. “While it’s all about coal, it’s certainly not all about coal mines,” he said. “It’s about gas, it’s about UCG and it’s about water. “There are such a multitude of industries and we need to be in the best position to take advantage.”

“We want to find out where and when the major projects are going to happen and look how we can maximise the benefits back into the area.”

Toowoomba chamber offers first hand insight While they've lived next door for years, the two hadn't really been introduced as neighbours until recently. The Toowoomba Chamber of Commerce brought the sheer scale of the Surat Basin home to members last month with a daylong pilgrimage into the energy province. Around 120 members visited sites such as New Hope's Acland coal mine, Origin Energy's Darling Downs Power Station and Queensland Gas' Berwyndale South gas field.

Scott Playle, chairman of the Surat Energy Province Sub Committee, said for many members it was an eye opening experience. “They got to see how advanced the development was and they could appreciate the sheer size of the province, the sheer size of the projects and the size of the development,” he said. “It really brought home how quick the development is happening. “It's not just a pipe-dream —

this is actually happening and it's a major operation.” The tour was sparked by an energy summit held in Toowoomba in October, which also saw the chamber form the sub-committee focused on the Surat Basin. Mr Playle said the activities were centred on helping Toowoomba businesses reap the benefits of the Surat Basin's expansive development. “We needed to make businesses aware of what's happen-

Surat Basin NEWS Thursday 18 December 2008

ing on their very own doorstep and how they can capitalise on what's happening, either directly or indirectly,” he said. Future tours of the Surat Basin are planned while Mr Playle hopes to work with the business and industry groups of the energy province to keep members informed and on the front foot. “If we can work together and present a united front, we'll be in an ideal position to make the most of the opportunities,” he said.

PAGE 3

LOCAL NEWS

Government policy tackles waste water Deputy Premier Paul Lucas believes changes to how coal seam water is dealt with are critical to the long term sustainability of resource development across the Surat Basin. In September, the State Government introduced policy changes to how coal seam gas companies disposed of the waste water harvested as part of their processes. Key features of the policy include discontinuing evaporation ponds, making producers responsible for treating water and lining ponds to an EPA determined standard. Mr Lucas said storing coal seam water in evaporation ponds had to stop. “Treating coal seam gas water is about saying from an environmental perspective, it’s doing the right thing,” he said. “What it will also do is make water available for other users. “We will make them go to the expense of treating it. Therefore, they then are in a position to sell it very much like any other stream of by-product. “However, sticking massive quantities of coal seam gas water into massive evaporation ponds has got to stop.” The State Government is currently finalising a discussion paper which will provide an opportunity for the community to make informed comment on relevant parts of the policy. Mr Lucas called on coal seam gas producers to be more responsible and active when dealing with Surat Basin communities. “It is very important that communities feel there is a benefit from the presence of resource companies,” he said.

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CLOCKWISE FROM TOP LEFT: Sid Plant stands with his back to rehabilitated land. Overburden piles up at the edge of the mine. Mining takes place only metres from quality farming land. Dust spews from the mine site.

Life in the jaws of a coal monster Sid and Merilyn Plant have a story to tell that would resonate with many Surat Basin towns. The couple runs ‘Samarai', a mixed family farming operation near Acland, a town that has been pillaged to make way for a coal mine. Mr Plant explains how six years ago New Hope arrived in Acland, a tidy town winner in the late 1990s, promising so much. “They told us how wonderful it would be for the district,” he said. “They said it would be all good — jobs, money for the town, good roads, better facilities. “We knew from day one they wouldn't deliver on their promises and now look, it's nothing but a ghost town.” Today, only one home in Acland is not owned by New Hope. The town will not exist beyond 2009 because it stands in the way of the company's expansion plans. New Hope has applied to the State Government to increase production to 4.2 million tonnes annually by the middle of next year. Long term plans could see the mine increase to 10 million tonnes a year. Mr Plant admits the past five years have been nothing short of a living hell with an ever growing monster for a neighbour. Explosions and machinery from the

BY John Farmer editorial @suratbasin.com.au

mine shake the Plants' home and wake them at night, while a thick layer of dust has permanently settled over everything they own. “The dust, the pollution, the noise, etc, etc, etc,” Mr Plant said. “Our lifestyle has been replaced with stress, nothing but stress. “We've lost our sanity and about five years of sleep.” Despite an exploration lease hanging over Samarai, the Plants' property has been spared from development but the same can not be said for surrounding farming land. Steeply sloped areas of grassed overburden show where New Hope's mining activities started half a decade ago “They take A-grade farming country and turn it into Z-grade grazing,” Mr Plant said. Mr Plant's scorn is not totally levelled at the mining companies. He believes government policy is failing landowners and towns standing in the way of coal mines. “They are so blinded by the dollars,”

he said. “They're all part of the problem, not the solution — all three levels of government.” Similar scenarios are likely to unfold across the Surat Basin within the next five years. Six hundred metres from Wandoan, Xstrata has pegged out Australia's largest coal mine and might begin shifting soil as early as late next year. Warra and Brigalow face a similar story with Tarong Energy to sell a mineral development licence that covers the towns and surrounding districts. Mr Plant has a simple but stern warning to Surat Basin towns — trust nothing government or industry say and do not face them alone. “The mining companies, they're all different but they're also largely the same,” Mr Plant said. “They have professional people who come to you to buy your land at the best price and make promises about how they're going to treat you. “It's lambs to the slaughter for people who have never been exposed to it before or who try and go at it alone. “Form negotiating groups, find out your legal responsibilities and if you are within 20km of a potential mine come and look at Acland and New Hope’s mine and talk to some of the people in the district so you have some idea what to expect.”

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Surat Basin NEWS Thursday 18 December 2008

LOCAL NEWS

Why the Surat Basin will survive the global financial crisis Coal seam gas demand will help the energy province ride out the storm ndustry leaders are confident Surat Basin activity will not grind to a halt despite the economic crisis gripping the world. Global markets plunged in early November but demand for Queensland resources, especially coal seam gas, should see the energy province stave off the most crippling of impacts. Within the next 20 years, Queensland coal seam gas is expected to supply 40 per cent of a national demand likely to double in that time. There is also growing international demand for liquefied natural gas. Queensland Resources Council chief executive Michael Roche believes demand for Queensland coal seam gas holds the state’s resources sector in good stead. “No one is immune from global events but the bottom line for Queensland is that medium to long term demand for our minerals and energy is locked in to the continuing industrialisation of developing economies,” he said. Mr Roche urged governments not to turn their backs on the Surat Basin. “There have been some layoffs and project deferrals but the clear message from the QRC to governments — state and federal — is don't drop the ball on infrastructure,” he said. “We need to be well positioned for the demand upturn, which

many experts are telling me could be sudden and pronounced.” Less than a month after the global crisis broke, BG Group launched a multi-billion-dollar friendly takeover of Queensland Gas. Britain's third largest gas and oil company wants to build a world-scale LNG plant at Gladstone fed by the Surat Basin's coal seam gas. BG Group chief executive Frank Chapman said while not insulated from the economic crisis, he expected the Surat Basin to follow the trend of other onshore markets where inflation has been less severe. Marco Waanders has spent 25 years working in Australia's oil and gas industries and is today general manager of Easternwell Group. Mr Waanders does not believe the economic slowdown is going to have an impact on the Surat basin. “All these projects have been funded and approved and supply contracts for the gas are already in place,” he said. “There are already a large number of international tenders out for level one contractor type work and once those guys get awarded those contracts, you’ll see the next level down — the sub-contracters to those people — coming on line” Arrow Energy is one of four companies pursuing LNG aspirations with coal seam gas out of the Surat Basin.

Coal seam gas is helping keep the Surat Basin strong through a time of global economic downturn.

Queensland’s plan for change A South East Queensland Climate Change Management Plan will be developed to move the region to a low-carbon future and make it more resilient to the effects of climate change. Premier Anna Bligh announced the new plan as part of the release of the Draft South East Queensland Regional Plan, and said it would

include targets for reducing the amount of greenhouse gas emissions from land use, urban development and transport in the region. “Toward Q2: Tomorrow’s Queensland sets a statewide goal of reducing our carbon footprint by a third—now it’s time to identify how much of this will be achieved through urban planning,” she said.

Michael Roche QRC chief executive “No one is immune from global events but the bottom line for Queensland is that medium to long term demand for our minerals and energy is locked in to the continuing industrialisation of developing economies.”

Marco Waanders Easternwell Group “All these projects have been funded, approved and supply contracts for the gas are already in place.” Despite the global economic downturn, Arrow chief executive Nick Davies predicted another record year in 2009. “Despite challenging global market conditions, the demand for coal seam gas remains strong,” he said. “We are well positioned to build on the firm base that we have created and the partnerships that we have forged. “We have a world-class team, an Asia-Pacific wide alliance with Shell, substantial footholds and assets in four Asian countries, a healthy financial position and are fully funded for the next three years. The best is yet to come.” Xstata Coal released the Environmental Impact Statement for its billion dollarplus Wandoan coal project this month. While aware of the potential implications of the global slowdown, executive general manager of the Wandoan coal project, Reinhold Schmidt, remained determined. “We don't have the crystal ball in front of us to exactly say where we're going to go,” he said. “But as an organisation we've committed in excess of $300 million to this project to date — it's the most we've ever done in just the development of a project — and that just demonstrates how important this project is to us.”

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Resources to the rescue: Roche The Queensland Government’s midyear fiscal and economic review has reaffirmed the importance of confidence in the long-term future of the state’s resources sector. Queensland Resources Council chief executive Michael Roche said the State Government’s revised forecast of a $388 million increase in royalty

revenues to just over $4 billion in 2008-09 was comforting news for Queensland taxpayers against a backdrop of increasing global uncertainty. “Through a combination of factors including a substantial devaluation of the Australian dollar against record coal contract prices written in US dollars, Queensland is in an enviable position while

other developed economies face the harsh realities of recession,” Mr Roche said. “However, it’s also clear that when coal prices are renegotiated in 2009, they will reflect the state of the global economy. “To meet the state’s forecast of $3.2 billion in royalties from the resources sector in 2009-10, industry will need from government a determined focus on

speeding up project approvals and on delivery of key infrastructure.” Mr Roche said the State Government’s commitment to encouraging private sector investment in economic infrastructure was welcome and confirmed most recently by the coal industry’s proposal to take ownership of the Wiggins Island Coal Export Terminal at Gladstone.

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PAGE 5

LOCAL NEWS

Hope fades as gas company takes target Fifth generation Hopeland district landowner Arthur Gearon (front) and his father Paul (left) held a district meeting this month attended by Legal Aid solicitor Glen Martin and Department of Mines and Energy community liaison officer Gerry McKie.

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Landowners south-east of Chinchilla believe a coal seam gas company has attempted to deceive its way on to their land. Arrow Energy hopes to build a 450km pipeline from its gas fields just west of Dalby to Gladstone to feed coal seam gas to a liquefied natural gas plant. Last month, Hopeland district landowners were approached by Surat Gladstone Pipeline (SGP) — a wholly owned subsidiary of Arrow Energy — to allow access on to their properties. They were given a document titled “Land Entry Agreement” which would allow SGP to enter land “at any time... for the period of 12 months” with “reasonable” notification. Towards the bottom of the A4 document, it is referred to as a “waiver of entry notice”. On December 5, a community meeting at the Hopeland Hall saw about 50 aggrieved landowners meet with Department of Mines and Energy community liaison officer Gerry McKie and Legal Aid solicitor Glen Martin. Mr Martin said the waiver was “a little unusual” and attempted to “lock people in” to allow access on to properties for the next 12 months, the permitted duration of a petroleum survey licence. Landowners who signed the waiver would relinquish their rights to being presented an agreement 10 days before SGP surveyors were to enter their properties. “That just doesn’t seem to totally comply with the entry notice requirement,” Mr Martin said. “So I wouldn’t even bother to sign that.” Mr McKie agreed landowners should not sign the waiver. “I reckon they don’t know the act properly,” he said. “You’re better off letting them give you the proper notice of entry under the petroleum and gas act.” Arrow Energy external affairs manager Gareth Quinn denied the SGP had attempted to deceive landowners. He said the agreement was designed to limit interference. “We would rather establish a relationship with the landholder whereby we can access the property at a time that is mutually

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agreed upon rather than rely on the statutory provision of 10 days after issue of a Notice of Entry every time we need to access the property,” he said. Mr Quinn said the agreement complied with the necessary act and Arrow Energy was committed to establishing good working relationships with landowners. “Our field agents are highly professional and experienced who promote regular communications and encourage landholders to get in touch with them to discuss any issues they have,” he said. But a gas pipeline easement is only one of many concerns that have settled over the highly productive agricultural district. Paul and Naureen Gearon own the grain property ‘Bealla’, one of many properties facing the potential pipeline. Mr Gearon is concerned if the pipeline goes ahead it would trigger a rush of gas field development across the district. “I’m thinking it’s not a coincidence the properties facing the pipeline through Hopeland, everyone of them has a gas exploration licence granted to Arrow,” he said. “They’re going through their own ground.” The couple’s son Arthur Gearon — a fifth generation Hopeland district farmer — agrees the immediate future appears bleak. “The fear is not so much the easement, it’s the implications there of,” he said. “Given that they’re cutting through Arrow land, it’s what further infrastructure will become economically viable once this is established.” Mr Quinn said Arrow’s immediate plans were not to develop its tenements around the Hopeland district. “Arrow has government authorities to explore areas around Chinchilla but the company’s near-term focus is to expand its operations around Dalby,” he said.

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Surat Basin NEWS Thursday 18 December 2008

LOCAL NEWS

Deputy’s iconic claims rubbished Farmers could be spared from open-cut coal mining but at a cost, Deputy Premier Paul Lucas said at last month’s summit in Dalby. Speaking at the second of three Resources Summit, Mr Lucas said he would consider protecting iconic farming land but warned it could come with a raft of restrictions. “In certain parts of Queensland, people are saying to me why can’t I divide my cane farm for residential housing,” he said. “If it was iconic land it would be a bit hard to say one moment you want to protect it for food production and then for a different use.” Mr Lucas said suggestions from the Resources Summits would assist the government in defining iconic land. He said a clear cut definition was needed before a policy could be adopted. “People legitimately and in good faith have made suggestions and they deserve the government to seriously consider them and that’s what we will do,” he said. Haystack Plain landowners ignited the iconic land debate late this year when Tarong

Energy announced plans to sell a mineral development licence across the district. Spokesperson Jeff Bidstrup said the group had doubts over Mr Lucas’ promise. “I think he wants to keep mining so I guess whatever he can throw in the pot to try and destabilise us he will do and that’s what parliamentarians all do,” he said. Mr Bidstrup does not expect too many farmers to be discouraged by the threat of restrictions. He said farmers paid a cost everyday for adopting and implementing sustainable practices. “We do it because the long term benefits outweigh the short term costs,” he said. He said it was up to the State Government to bear the cost for Queensland’s long term future. “I don’t doubt there’s a cost but that’s the premium that a responsible government should pay to get sustainable development,” Mr Bidstrup said. The Haystack Plain Action Group has lobbied the government for a management plan encompassing the entire

“I think he wants to keep mining so I guess whatever he can throw in the pot to try and destabilise us he will do and that’s what parliamentarians all do.” Surat Basin and all its activities. Mr Bidstrup said regional management would give all sectors much needed security. “We need it for security, they need it for security and the government needs it for stable development,” he said. “Everyone needs it — the miners, the developments, the government and the farmers.” Tarong Energy is expected to put its mineral development licence on the market early next year.

Deputy Premier Paul Lucas considers the future of the Surat Basin and the fight put up by Haystack Plain farmers.

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LOCAL NEWS

The early days of the Haystack Plain fight After a decade of drought, farmers on the Haystack Plain are used to adversity. But finally a couple of good seasons had given them cause for optimism. So when a letter from Tarong Energy arrived out of the blue in September, informing the farmers that the Queensland Government-owned coal company intended to sell the right to mine coal on their land, it was a slap in the face. Around 40 families who farm food crops on the floodplains 25 kilometres south-east of Chinchilla face losing their land and livelihood if the coal mining licence goes on the market. But central to the farmers' campaign is the idea that a much bigger issue than their personal futures is at stake. They are pitching their battle as a fight between food security and a sustainable future versus the short-term profits of export coal. Landcare project officer Nevin Olm is leading the fight to save the farming land from being turned into an open cut coal mine. Mr Olm grew up on the family farm that was started by his grandfather 100 years ago. He bought his own farm on neighbouring property in the mid eighties and has focused on wheat, barley, sorghum and niche market crops. “This isn't a fight about my

welfare. It's about the world's population that will require land like Haystack for the generations to come,” Mr Olm said. “For me Haystack is a line in the sand. If Haystack goes, what chance have we got to stop developments owned by other mining companies.” Haystack Plain farmers have called on the Queensland Government to rescind the mining licence to the area. At the very least, they would like to see a moratorium on new coal mines until a land use plan for the state is developed. At a meeting of concerned landholders in Hopelands this month, Department of Mines and Energy community liaison officer Gerry McKie, gave assurance that the government would develop a policy to protect prime agricultural land. “This issue of this intense exploration and mining on top grade agricultural land, I've never seen so many submissions on one issue in my 40 years with the department,” Mr McKie said. “All the ministers are concerned and they're all very, very aware of it and they're trying to formulate some sort of policy to allow for that. “It's a decision that will be made right at the top level. They're calling for advice from everybody.”

FACES OF BEC MEYNINK Twenty-nine year old Bec Meynink has many fond memories of Christmas at Haystack Plain, yet this year will be like no other before. When the mother of three sits down at the kitchen table with her husband and young children, there'll still be the ham, the mince pies, the pudding and brandy sauce, but there will also be some dark clouds on the horizon. “There'll well and truly be a dark cloud hanging over our heads at Christmas when we sit down to a beautiful home-cooked meal,” Mrs Meynink said. “To know we may not be here in a couple of years, it's going to be depressing.” The Meynink family are among 40 grain growing families on the Haystack Plain, 25 kilometres southeast of Chinchilla, who face the prospect of losing

DANIEL WEGENER Twenty-seven year-old farmer Daniel Wegener has worked on Haystack Plain for eight years and bought part of

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their land and livelihood if plans to mine coal in the district go ahead. Just three months ago, growers in the district received letters from Queensland Governmentowned Tarong Energy, informing them of the company's plan to sell the rights to mine coal in the area. Mrs Meynink grew up at Haystack Plain and had imagined a future following in the family tradition of farming food crops. “It's been our dream to grow our business in the area," she said. “This has just taken away our dreams, our hopes and our livelihoods and we'll be given nothing back. “This is what we know and where we know. There's nothing else we want to do.” Like many of the Haystack Plain farmers, Mrs Meynink has no intention of leaving without a fight.

his parent's property just more than four years ago. Having dealt with drought for most of that time, Daniel says the forecast of a future coal mine is worse news than any weather report could bring. “You always know a drought is going to end one day,” Daniel said. “And at least with a drought you're still on your farm.” The past 18 months has given growers a break in the weather and

She believes the State Government will have to take notice of the campaign to save the area from coal mining. “I think they know we're here and we're not going to give up until they say they are going to take the mining leases off this land, and save this agricultural country.”

Daniel has finally been able to reap the rewards of the tough years. But now his future, and those of 40 other families, is up in the air, and he believes no amount of compensation would be worth its name. “It would be a loss of what I've set out to achieve. All that my dad's worked for could be lost,” Brendan said. “A lot of people don't care about the compensation because money doesn't buy you happi-

ness. “We just don't want to go.”

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Surat Basin NEWS Thursday 18 December 2008

LOCAL NEWS

HAYSTACK PLAIN BRENDAN TAYLOR

JAN COX

For the last 10 years since returning from university, 32-year-old Brendan Taylor has worked on the family farm at Haystack Plain. He had planned to continuing farming and eventually buy out the farm from his parents, but now his future is in jeopardy. “If the family farm gets tossed out, it's not just going to take my parents off the land, it's going to take the next generation, and where do you go?” Brendan asked. “It's not just destroying some of the best agricultural land you can get. You are destroying the people who farm the land and have the knowledge and skills of food production.” At this stage he has not allowed the thought the farm really could go to take over. “You have times when you start wondering what will happen if it does go, but when you're busy you don't think about it," Brendan said. Instead he has focused his efforts on wholeheartedly trying to stop Tarong Energy in its tracks. “It's just a free for all at the moment. The government is dishing out permits like paper plates,” Brendan said. The Haystack Plain farmers are calling on the Queensland Government to place a moratorium on all new coal developments until an independent, environmental study has been done across the Surat Basin. The fight is far from over for Haystack farmers, and in the real world, David more than often loses to Goliath, but they believe the government will have to take notice.

Jan Cox has lived and worked on the land at Haystack Plain since she married a local farmer 40 years ago. When Tarong Energy announced in September plans to put its coal mining development licence for the area on the market, Haystack Plain farmers were rocked into action. Before then, the farmers had not even known of the existence of Tarong Energy's licence to mine coal on the floodplains as it was listed under the Glen Wilga deposit. In the past three months they have tirelessly campaigned for the Queensland government to rescind the licence before it is sold to a private company. Like many of the Haystack Plain farmers, Jan does not like to dwell on what losing the battle to stop a coal mining development in the area would mean to her. “It would be devastating of course, but the real issue is not the personal loss, but the loss to the nation of top quality, food producing land,” Jan said. “There's not very much premium agricultural country like this left in the world, let alone in Australia, and it seems a very backward step to mine it. “There is plenty of coal on far less productive country that would disrupt fewer people.” Nevertheless, thoughts of losing the farm are never really far from Jan's mind. “You think about it every day. You can't really plan for the future because

“We're not defeated by a long shot. The government is waiting for us to rollover, but that's not going to happen,” Brendan said. “The government knows that in 50 years time there is going to be a food shortage.”

your life's put on hold,” Jan said. “It's the government that will make the next move and we're just doing our best to fight the issue. “You just hope that at the end of the day the right thing will be done and the government will try to preserve the best land there is.”

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LOCAL NEWS

Surat Basin diversity stuns training managers Last month, the three project officers from the Western Downs Skills Project invited the managers from Canberra to visit the Surat Basin energy province to see first hand what is being achieved. Bill Luteria and John Whitely from the Workforce Development Branch of the Department of Education, Employment and Workplace (DEEWR) and Linda Pearmine and Beverley Litster from the Department of Education, Training and the Arts (DETA) embarked on a three day trip from Dalby to Chinchilla, Miles and Roma to familiarise themselves with the diversity of industries across the region. Met by the project officers in Dalby everyone was able to travel in a bus hired by Gavin Walton of Condamine Electric Company to Mort & Co Feedlot at ‘Grassdale' where manager Ben

Maher explained the operation of the feedlot and an Arrow Energy representative discussed their Tipton operation. This was followed by a Dalby Regional Council meeting to listen to a presentation made by representatives of the Western Downs Regional Development Corporation (WDRDC) while that evening the Dalby Chamber of Commerce and Industry hosted a dinner with local business and community members. The following morning the bus tour continued with Gavin Walton as tour guide visiting significant businesses in Dalby town, including a brief stopover at Ostwalds Bros. It was then on to Chinchilla via both Braemar and Darling Downs Power Stations followed by Tong Park, along the way viewing some of the Warra district's prime agricultural land.

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Surat Basin NEWS Thursday 18 December 2008

The three project officers hosting visitors from Canberra on a tour of the Surat Basin. While in Chinchilla the group held a luncheon meeting with a number of community representatives to discuss specific local issues and initiatives. An hour was spent in Miles at Active Manufacturers where their workplace adult literacy program was explained. The visitors were impressed with the skill level of the young person employed to work the computer driven machinery. From there it was on to Roma where people from a range of businesses met to discuss their involvement with the project at a dinner at the Roma Bowls Club and the following morning a number of Visa 457 employees met with the visitors along with their employers Roma Diesel This was followed by a meeting with an Origin Energy representative Stephen Dore and one of the Origin Apprentice Scholarship winners, Brian Vincent, from Westlands Engineering and Hydraulics to discuss the history of the scheme. Both DEEWR representatives were very appreciative of the time afforded to them by local businesses and community representatives. They were obviously surprised by the diversity of businesses and the size of some of the projects being undertaken across the region.

Linc frustrated by greater argument cont’d from page 1 At November’s Dalby summit, Deputy Premier Paul Lucas said the State Government was working to resolve the issue of overlapping tenements. But he said the complexity of the issue had resulted in delays. “What we want to do is get it right,” he said. “Now if that doesn’t suit people because we’re taking time to get it right, I apologise for that.” But with Linc’s immediate future in Queensland uncertain, Mr Bond admitted too much was at stake to invest in the commercial plant. “We do believe there will be a resolution and we believe there will be a positive outcome for UCG and CSG — there will be room for both, there’s no doubt about that,” he said. “But we are in a very aggressive development program as a company and we didn’t want to be tied to something that could go on for two or three years.” Mr Bond said he was confident the issue would be resolved and both UCG and CSG could work together. Meanwhile, Linc’s research and development station will continue to operate southeast of Chinchilla. “I believe that it would be definitely in the state’s interests for Linc Energy to pursue its operations from both an investment and employment perspective and a state revenue perspective,” Mr Bond said. “There is also plenty of room for CSG and LNG. There is no us and them, there’s plenty of room and plenty of capacity for both.”

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

THE ISSUE:

MINING V FARMING The debate over the mining of iconic agricultural land was the issue that dominated Q4 of 2009. Ignited by Tarong Energy’s plans to sell its Mineral Development Licence across large tracts of land between Chinchilla and Dalby, debate swamped forums, newspapers and radio for much of November and December.

THE IDENTITY:

RICHARD COTTEE Flamboyant, passionate and exotic are all words used to describe former Queensland Gas Company managing director Richard Cottee. The Surat Basin bid farewell to Mr Cottee this quarter after his six years with Queensland Gas ended when the company was taken over by BG Group.

THE ANNOUNCEMENT:

XSTRATA’S WANDOAN PROJECT Xstrata Coal’s Environmental Impact Statement for its Wandoan coal project was the defining announcement. Shaping as Australia’s largest coal mine, the Wandoan project is expected to spark development north of Miles through to Taroom. The Surat Basin Rail is likely to follow along with the Wiggins Island Coal Terminal.

THE CONTROVERSY:

UCG V CSG Dispute raged in November between coal seam gas and underground coal gasification companies over their Surat Basin resources. The dispute saw Linc Energy bail on its Chinchilla project because of no resource security.

THE STATEMENT: “I think he wants to keep mining, so I guess whatever he can throw in the pot to try and destabilise us he will do and that’s what parliamentarians all do.” Haystack Plain Action Group spokesperson Jeff Bidstrup, responding to Deputy Premier Paul Lucas’ commitment to consider the protection of iconic agricultural land.

SEVENinSEVEN

A very critical balancing act The Surat Basin News sat down with Dalby Regional Cr Andrew Smith, spokesperson for economic development and tourism, to ask seven questions in seven minutes. SBN: From the point of view of economic development — your portfolio — what has the first nine months of regional government been like? AS: It’s been very hectic coming to grips with the enormity of the economic development across the region and the potential of the outcomes. It’s also been important to try and get an understanding of the effects those outcomes are going to have on our region. The portfolio of economic development, I feel, is maybe one of the most important in council because at the moment it is dictating everything that happens. SBN: Final commitments are to be made on several of the Surat Basin’s major resource and infrastructure projects next year. What is in store for council over the next 12 months? AS: One question we ask ourselves a lot is how we as a council should we position ourselves in response to the develop-

THE CRYSTAL BALL

SBN: What scares you most about 2009? AS: If we don’t move and we don’t move quick enough to take advantage of the development. I do believe there is a line — on one side are all the good things to come out of the development and on the other are all the negatives. We must make sure what we do as a council errs more on the right side of the line.

Councillor Andrew Smith admits the past nine months have been nothing less than chaotic.

“It has been a real rollercoaster ride — one minute we’re trying to support the Haystack farmers and the other we’re very prodevelopment. What is important is that the development is not at all costs. There has to be a line.”

ment. We must consider the impact of the global economic crisis and what projects are going to happen and not happen. With all of this in mind, we can’t stop planning. Everything from houses to jobs, we need to be ready for it. We can’t supply 200 workers to a specific project if we don’t have 200 houses for them to live in. SBN: What excites you most about 2009? AS: The same things that excited me when I first got on to council — the opportunity for local people and our local communities to reap the benefits.

What does 2009 hold for the Surat Basin?

SBN: The debate over mining on prime, agricultural land has reached fever pitch in recent months. What role can the council play in the debate? AS: This council has stated that it supports a registrar of sorts facilitated by farmers, Department of Natural Resources and other stakeholders that recognises certain areas across Queensland, not just this Dalby region, be spared from mining. But beyond that, we have an advocacy role to play. SBN: Unlike ever before, the region’s economic base is split down the middle between agriculture and mining. How tough from a council point of view is balancing the two sides? AS: It can be pretty tough but I see it as a challenge this council must address. It has been a real rollercoaster ride — one minute we’re trying to support the Haystack farmers and the other we’re very pro-development. What is important is that the development is not at all costs. There has to be a line. When it comes down to it, we have to ask what is best for our communities. WHO: Western Downs Regional Development Corporation members WHEN: December 8

GRAHAM SECOMBE

MATT OSTWALD

GAVIN WALTON

PAUL HODDA

“I think there are huge opportunities out here and a lot of the decisions that have been made won’t be affected by the global downturn. “They’ve already got their markets established, they’re prepared, they’ve got the money, they’re cashed up, ready to go “Just the coal gas projects alone amount to over $20 billion and they’ve got the funding and the markets ready to go, that doesn’t even take into account the coal mines that will be coming on line. “I think it’s a very exciting time.”

“I think the Surat Basin and this whole region is very lucky with the development that is bound to happen out here. “While we’re in uncertain times globally at the moment, I believe that with the oil, gas and energy in this area, while we will see a slowdown, the future is very bright.”

“I think it’s just going to be solid for us here. I think while the world’s had a downturn but what will see us through is that we’ve got constant work and constant opportunities. “It could take some pressure off as far as me and my business having skilled or trained people, I think it’ll relieve the pressure a little bit because there is such a consumption for tradespeople and skilled people out this way. “I think just positive — more construction, more development. Exciting times.”

“2009 is a critical year for the Surat Basin for a number of reasons. We’ve got ourselves to this point in time and we think we’re pretty well aware of all the issues and this is the year to start delivering back to the different businesses and communities in the area. “In terms of the projects that are going to happen, it’s going to be interesting times with the global situation. “Our intelligence so far tells us none of the projects are under immediate threat but that’s not to say something else might not come into play when the time comes to actually start committing funds.”

Surat Basin NEWS Thursday 18 December 2008

PAGE 11

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

LETTERStotheEDITOR

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

Lack of planning starting to show The Kogan Creek Power Station was first talked about in the 1970s but it was decades before when the coal deposit was discovered. Linc Energy set up in the late 1990s but the potential of the underground coal technology was prominent around the world long before then. For decades, the potential of the Surat Basin has been discussed, written about and considered by industry, government and community. But how far have we really come? The cost of a total lack of planning from the State Government is starting to rear its ugly head across the Surat Basin and for many it may be too late to rectify. The predicament facing Haystack Plain is a prime example of the cost of poor planning. This is a highly productive agricultural district that for years has produced large quantities of grain and cattle. By early next year, its fate could be sealed. Within five years, the district may not exist. Mining should look elsewhere and Haystack Plain should be spared. The State Government’s planning shortcomings were also highlighted by Linc Energy’s decision to take its billion-dollar coalto-liquids plant to South Australia. Because the government had not implemented a clear cut plan, Linc was uncertain about its future in the region and decided to go to a state where its resource would be secure. The Western Downs has long been renowned for its agriculture and its lifestyle. Both could be lost because mining and gas developments are being let loose with little restraint. This is simply because no regional plan has been put in place across the Surat Basin. The Western Downs has also been plagued by a population downturn because of a lack of industry and employment. This was supposed to be fixed by the resource boom. The boom may never be realised if companies like Linc Energy cannot operate without uncertainty over its resource. While it may be too late there is something to gain by introducing a regional plan across the Surat Basin. Without one, there may be even more to lose.

BY John Farmer editorial @suratbasin.com.au

LETTERS to the editor Address to: The Editor Surat Basin News PO Box 138 Chinchilla 4413 Email to: editorial@suratbasin.com.au The Surat Basin News welcomes letters to the editor but reserves the right to edit them. Letters should be no longer than 200 words.

PAGE 12

Exploiting local farming land On September 1, 2008 the Queensland Government issued a Mineral Development Licence for coal to the wholly Queensland Government owned Tarong Energy Corporation over the iconic Haystack Road farmlands. Harvest is over on the Haystack Plain which has once again been favoured with a bountiful crop. This may truly be our last harvest on this inherently fertile farmland. Tarong Energy, recently confirmed in writing that they will be considering in early 2009 when to take their assets (our farmland) to the market. Minister for Mines and Energy Geoff Wilson, last month stated that there is no need for new legislation to protect iconic farmland. Without new legislation there is no legal reason why Tarong Energy can not sell their asset (our farmland) to another company that will surely exploit the coal resource. At our expense the Queensland treasury will celebrate their one off win fall through the sale of their asset, (our farmland) but never again will the Haystack Plain produce a bountiful crop. Website: www.coal4breakfast.com.au Nevin Olm Brigalow

Destiny should be in nation’s hands Sir — Would it not be better if our nation's destiny is in our nation's hands rather than a foreign country? I'm talking about food... For example bread. Farmers plant some wheat then comes harvest then eventually it gets made into bread products. I'm sure most of us are aware of the process. Coal mining companies are buying prime agriculture land and turn that great grain producing land into coal. And I don't think we'd like to eat coal for breakfast. If grain producing areas keep getting taken to produce coal, our future generations will have to rely on other countries for food and I'm sure most of us would prefer if Australia could rely on their farmers to produce food for us and we help out other countries. On the Haystack Plain we grow sorghum which can feed stock that then produces meat, we grow wheat which produces bread products, we grow barley which produces the Aussie icon beer and we grow cotton which produces

The highly productive farming district of Haystack Plain is under threat from proposed mining activity.

Coal for breakfast anyone? Sir — Across Australia productive, environmentally sustainable farming land is under threat from huge mining companies seeking to destroy the land for coal and minerals to cash in on the current commodities boom. At Haystack on the Darling Downs, a mining development licence has been granted by the state government to the state government owned Tarong power to develop a mine on 13,000 hectares of prime agricultural country. This country is farmed in an environmentally sustainable way and has won national Landcare awards for the work done in the area to promote ecologically friendly farming practices. In the last year alone the area taken up by this mining licence has produced enough wheat for 68 million loaves of bread, enough sorghum to feed 14 million chickens as well as thousands of tonnes malting barley, ediclothes and provides medical supplies. All this is under threat on the Haystack Plain for a mineral development licence from Tarong Energy which is owned by the State Government. Aren't these the people who are meant to have our state’s best interest at heart and provide the best possible outcome for us? I truly hope that they pull their head out of the coal and smell the wheat growing! Craig Cox Warra

Please listen to the people Sir — One can only hope the State Government will listen to the people on the land where yet another coal deposit could lead to loss of prime agricultural land. We must focus on the longer term viability and preserve our country for future generations. Riding on the back of

ble chick peas and mung beans. In an era when food prices are rising, a United Nations report recently predicted that in the next 50 years the world will need to produce as much food as it has in the last 10,000 years! Can we really let this happen? In 20 years when the windfall for the state coffers has ended and the world no longer wants coal, Australia will stand condemned on the world stage for its greedy rapacious ways and environmental vandalism. This iconic farmland and much more will no longer produce food! Will our children and society really think it was worth it? Short term greed on Wall Street has left a shortage of money. Don't let short term greed on George Street leave us short of food. Wade Bidstrup Warra

the minerals boom will be here today and gone tomorrow leaving us with no productive and reliable food producing land. This land is our food security and should not be destroyed by short sited decisions of the Queensland Government. I grew up on a property on the Haystack Plain and have vivid memories of magnificent cereal crops and rich fertile soil which can produce under extreme conditions, an area that requires no irrigation therefore no drain on our water supplies. It would be very sad to see our land destroyed in this way. Lorelle Wolski Ferny Grove

Children’s right to safe food supply At a time when the safety of some overseas’ food sources is questionable due to general farming practices and contamination threats, the State Government has granted

Surat Basin NEWS Thursday 18 December 2008

Tarong Energy a Mineral Development Licence over some of Queensland's most fertile dryland farming country on the Haystack Plain. This development will destroy the productivity of Haystack Plain for eternity. At a time in history when the world has consumed more food than it has been able to produce in the last seven years. World grain reserves are at their lowest in 50 years. And in the last 18 months, food riots have broken out in 37 countries. The Haystack Plain is managed in an ecologically friendly way, using sustainable farming practices and could continue this production for another thousand years. We don't oppose mining but to destroy this highly productive food producing area for a quick gain from mining royalties is giving away our children's right to a safe and secure food supply. Don Meynink Jandowae

Too valuable to lose

Renewable resources

A landmark event

The LNP’s stance on the protection of iconic agricutural land Howard Hobbs, MP

Australia’s resources must be secured but it must be done with the environment in mind Bruce Scott, MP

Resources summit captures the controversy and disharmony of the Surat Basin Ray Hopper, MP

Sensible and considered approach a must During these difficult economic times I sincerely hope the resources of the Surat Basin will assist in sustaining our communities through the economic downturn which is slowly but surely impacting on families and businesses across the nation and regrettably has seen some go into receivership. However this needs to be done in a sensible and considered way to ensure that there is a balance between energy resource use and food production. This leads me to the LNP position on iconic farming lands. As a parliamentary member of the LNP I strongly support the policy to protect iconic farm lands from future mining development. The value of this land will be a very important factor in the extra public interest test that will be applied by an LNP government during the mining application process.

COMMENT Howard Hobbs MP Member for Warrego

If a mining company wants to spend its own money in exploring areas of iconic farm land then they need to know that under an LNP government the food production value of that land will be of paramount consideration in the public interest test that will be applied. Changes to legislation in state parliament enacted by the State Government, enable the LNP to fully implement their policy. The amendments to the Mines and Energy Legislation Amendment Bill ensure that the extra public interest test is applied to the process to upgrade a mining

tenement. During this debate I called on the minister to clearly signal that he too would use this legislative change to protect iconic land from mining. However I like many of my constituents are waiting to see if this State Government has the will to protect our peak food producers. Also there has always been the provision for the minister to apply the public interest test when the mining lease is applied for. This provision is applicable to those areas currently under a mineral development licence (ie Haystack coal) where a mining company applies to upgrade to a mining lease and the minister can reject the application for that mining lease. It is the responsibility of the State Government to ensure that the very best cultivated land is preserved for growing

“It is the responsibility of the State Government to ensure that the very best cultivated land is preserved for growing food for our future generations...” food for our future generations and as a former US president said: “The history of every nation is eventually written in the way in which it cares for its soil.” On that note of history I wish to welcome the new constituents who will be joining my electorate at the forthcoming state election from the Murweh Shire in the west and from the Jandowae and Jimbour areas in the east. As you state parliament representative, I will continue to work hard for everyone in the Warrego electorate. I remain as always, willing to assist anyone who should

phone or visit my office, no matter where they might live, or how big or small their issue might be, or if they just want someone to listen to them. I will be continuing my monthly funding and information updates and I welcome anyone who wishes to join the distribution list. I have also published my annual scholarships guide for those leaving school and seeking to pursue their education at university. I wish all the constituents of the Warrego electorate and those joining the electorate in the new year a very safe and merry Christmas and a prosperous new year.

Environmentally friendly energy Summit gives battlers a voice The topic of humaninduced global warming is certainly a popular one amongst journalists, scientists and indeed politicians. Whatever one’s view is on the cause behind climate change, it is important that we secure Australia’s energy resources while at the same time endeavouring to reduce our carbon emissions. Without the rest of the world agreeing to participate in a carbon reduction scheme, the introduction of the Rudd government’s proposed emissions trading scheme could be devastating for Australian industries and in turn, the national economy. At this time of global financial uncertainty, more emphasis must be put on assisting emissions-intensive industries in reducing or capturing carbon, rather than financially punishing heavy polluters. It is also important that we focus on pursuing renewable and clean energy options. The Surat Coal Basin holds potential not only for advancing low emissions coal technology but also for harnessing more environmentally friendly energy sources, such as liquefied natural gas (LNG) and ethanol. A clean and safe energy source, LNG is expected to play a major role in the devel-

renewable, providing an environmentally sustainable alternative to imported oil. COMMENT The by-product of Bruce Scott MP ethanol can also be Federal Member for used as feedstock, Maranoa making an important contribution to our food security. Indeed our food security is just as opment of the Asia-Pacific important as our energy region, China and India. With security, and it is imperative the global demand for energy our prime arable lands are estimated to increase by provided the same imporabout 40 per cent by 2030, tance as our energy coal seam methane gas is a resources. low-emission affordable It is the responsibility of option. the Queensland government Gas-fired power stations to ensure farmers’ rights are use around one percent of adequately protected. water and emit around half Many resource companies the greenhouse gas emissions are responding to the calls of coal-fired power stations. from farmers and local counThe water by-product of cils to engage more directly coal seam methane gas in the and more openly with Surat Basin has the potential landowners, and it is pleasto provide around 25 gigaling to see community conitres per year, which could be cerns being addressed. used for industry or even Yet there are still many domestic purposes. steps to take until the right On the edge of the Basin, balance is finally achieved the Dalby ethanol plant is in its early stages of production. and we must ensure our prime agricultural lands are Ethanol blended petrol is not sacrificed, as no amount more environmentally friendof coal, oil or gas exported ly than straight petrol and the ethanol blended fuel E10, will provide us with the affordable clean, green food for example, can reduce carwe today enjoy and often bon monoxide emissions by take for granted. up to 30 per cent. Ethanol is completely

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I would like to discuss the mining community summit, which was held in Dalby on November 21. This meeting was well attended by about 250 people who gathered to voice their concerns and to listen to the Government's proposed strategies to minimise the impact of mining activities within our region. This summit also gave the government an opportunity to hear first hand the concerns of landowners and how they are being personally affected by the resource boom. These landowners are battling to save their land and their livelihood. From a landowners perspective it currently appears that these mining companies have more rights than the title deed holder, which is an absolutely terrifying thought for those whose land has been earmarked by the mining companies. I am pleased that Agforce has recognised the concerns of the landholder by making available the services of a free independent legal advisor for rural landholders impacted by mining-related issues. It is my personal opinion that the current State Government should take a long hard look at their overall handling of the resources boom in Queensland. The Bligh government has failed all groups with their lame and somewhat pathetic attempts to really deal with this issue. Firstly they have failed to provide adequate support to the landholders and to fully comprehend the affect mining is having on their land. Secondly they have failed the mining companies as they have not put in place suitable legislation to eliminate overlapping licences between the petroleum and mining companies. This predicament has subsequently resulted in Linc Energy moving out of the Surat Basin and transferring their interests to South Australia. This same company had already spent $50million on its trial south-east of Chinchilla.

Surat Basin NEWS Thursday 18 December 2008

COMMENT Ray Hopper MP Member for Darling Downs

Now because of the Labor government’s inefficiency we have lost this company to another state and with that move we have lost their future investment and employment opportunities for this region. Ultimately there must be a balance between all groups - we must protect our iconic farm land to secure our most fundamental need, which is food security. We must also recognise the need for mining exploration and development to support and meet the needs of our ever increasing energy requirements. I understand that Queensland farmers are calling on the State Government to introduce a farming impact statement, similar to an environmental impact statement, as their land comes under pressure from mining. I believe there is an urgent need to look at agriculture in terms of state-wide planning. Consideration should be given towards defining the most productive use of our agricultural land and to implement protection mechanisms in respect to our food security. Ultimately we must strike a balance between mining development and the future viability of agriculture within this state. We must get this partnership right, as there is no going back if we allow mining to destroy our prime agricultural land, as this same land will be irreversibly destroyed in respect to post mining agricultural use. In summary, this summit was merely a listening tour for the minister and I commend him for taking questions from the floor. However what the minister must realise is that farmers want a solid outcome and this unfortunately does not exist at the moment.

PAGE 13

Surat Basin News CARBON PUSHES ON

BRITISH INVASION BG Group’s billion dollar Surat Stake

Resource dispute fails to slow Bloodwood trial

RESOURCES www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

REGIONAL PRESSURE: Roma Regional Council faces massive resource investment and the inevitable challenges

Mayor admits challenges ahead as LNG aspirants make moves PAGE 15

Pacific’s gas ambitions Pacific GTL should know by next year whether it is going to proceed with a plant capable of turning coal seam gas into diesel. It will be situated just east of Miles.

Roma Regional mayor Robert Loughnan expects challenges are ahead. even at this stage has changed communities in many ways.” While mainly optimistic about the development, Cr

PAGE 7

Xstrata EIS released for Wandoan The document to guide the development of Australia’s largest coal mine was released this month and it provides a daunting prospect for the region.

PAGE 14

Surat Basin pried open at resources summit Mining’s not so silent victims have called on the deputy sheriff to bring law and order to Queensland’s wild west. Farmers from Felton and Haystack Plain stood in silent protest as Deputy Premier Paul Lucas arrived at the Resource Summit in Dalby last month. Haystack protesters wore black, Felton green; some were dressed as sunflowers and others as the Three Blind Mice. Haystack Plain Action Group spokesman Jeff Bidstrup said the Surat Basin pillage for coal and gas threatened to spiral out of control. Many landholders feel their prime, agricultural line was in the destruction path. “It’s looking to us really like the wild west at this stage,” Mr Bidstrup said. “It’s shoot all the Indians and grab what you can before the social consciousness really hits and reality bites that people have to do the right thing.” Outside was where most of the 30 protesters expected to stay but the closed meeting never eventuated. The doors were thrown open and the crowd swelled close to 200 inside a room with only half enough chairs. Mr Lucas took to the stage met with a cold silence and placards raised to the ceiling. One read “Mine for extinction, farm for the future”. Later, Mr Lucas admitted he was surprised by the turnout and equally by the involvement from all parties. “We all know that there are problems but the real test is when they offer solutions,” he said. Broken into four discussion rooms, numbers and tensions were at their highest in the

Protesters await for the arrival of Deputy Premier Paul Lucas at last month’s Resources Summit in Dalby. mining issues session. Farmers called for a moratorium on mining until a plan to protect prime agricultural land from open cut coal mining was in place. They also demanded a study on the environmental impacts of Surat Basin development. Friends of Felton chairman Rob McCreath said any plan would have to see mining and

Surat Basin NEWS Thursday 18 December 2008

agriculture separated completely. “Our attitude is top quality farming and food production can’t co-exist with operations like open cut mining,” he said. “The mines are destroying prime farm land, polluting our rivers and destroying our aquifers. “We’re not interested in talking about working better together.”

RESOURCES

Northern Energy after cash Northern Energy wants a cash injection into its Surat Basin coal project. Late last month, the company appointed Investec Bank to seek expressions of interest for significant investment in the Elimatta coal project. The proposed coal

mine is situated northwest of Wandoan. Northern Energy managing director Keith Barker said the investment was needed after significant work at the site. “We believe that an investment in Elimatta would provide interested parties

with a unique opportunity to develop, potentially operate and own a significant interest in a quality coal asset,” he said. Elimatta currently has a coal resource of 224 million tonnes including 129Mt measured and 75Mt indicated.

S E RV I C I N G : GAS, MINING and AGRICULTURAL INDUSTRIES

Pacific GTL wants to take coal seam gas and convert it into diesel through a $1.5 billion plant just east of Miles.

Pacific’s new dawn for coal seam gas World scale diesel plant could begin by early next year Pacific GTL should make a final commitment on its world scale diesel plant by early next year. The company announced plans in October to build a $1.5 billion plant to convert coal seam gas into 17,000 barrels of diesel a day. The SunState GTL plant located just east of Miles is in the pre-feasibility stage that should be completed by January. Based on that study, Pacific GTL should move into funding, engineering and design of the first stage later in 2009.

General manager Philip Jackson said a second stage of similar capabilities would follow on almost immediately. He said negotiations had started with potential coal seam gas suppliers. Despite most companies focused on feeding LNG plants at Gladstone, Mr Jackson said he was confident the Surat Basin could support the plant. “We have a strong belief that there is more than enough gas for our project,” he said. The ultra-clean diesel produced at SunState GTL will be less smoky, less odorous and virtually contain no sulphur or sulphur derivatives. Mr Jackson said the product would remain domestic and focused on southern and northern Queensland customers. “The project itself has got a much broader market region than just where it

is located,” he said. The plant would be located near the Condamine Power Station where Queensland Gas pipes water and gas from nearby fields. Mr Jackson said the location provided a “synergy of gas, water, rail, road and access to markets”. Despite the global financial crisis and falling oil prices, Mr Jackson believes growing demand for diesel and Australia’s declining self sufficiency makes the plant viable. He said the SunState GTL project would decrease the need for importing diesel. “There is no great capacity to expand diesel production in Australia,” he said. “That suggests there is a great opportunity for this project.” Commissioning of the plant should start in late 2014 to 2015. Pacific GTL plans to build similar plants in New South Wales.

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LOCAL NEWS

“You can imagine therefore that they are steeped in the brand of QGC, they love this company and they are delighted that we intend to put all of QGC’s businesses under the umbrella of BG.”

British front row packs down in the Surat Basin BG Group chief executive Frank Chapman on this month’s visit to the Surat Basin.

CHINCHILLA

CRANE HIRE

BG Group chief executive Frank Chapman touched down in the Surat Basin late last month to look over the gas fields his company had weeks earlier bought for $5.2 billion. Britain's third largest gas and oil producer went from a failed takeover bid of Origin Energy to successfully absorb Queensland Gas. While QGC's brand, expansion plans and structure remain, its resources are bound for BG Group's global markets courtesy of a $15 billion liquefied natural gas project.

BY John Farmer editorial @suratbasin.com.au

“Our strategy really is to identify markets we want to supply with gas — developing markets — and to find resources that are competitively priced to connect to those markets,” Mr Chapman said. “We have identified over a period of time some very significant markets in Asia-

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RESOURCES

QGC gas fields across the Surat Basin are being expanded to feed a proposed LNG plant at Gladstone. pipeline. More than 4500 people will be employed between the gas fields and Gladstone if BG Group decides to pursue its LNG ambitions, a decision expected by the end of next year.

Work has already started on securing the necessary gas at a rate that even Mr Chapman struggles to comprehend. Every month, BG Group is adding a whole year's supply to one of the LNG plant's two

trains and heading rapidly towards sanctioning both. “That is far and away the most significant production capacity from the Surat Basin of any company operating here,” Mr Chapman said. “We're already making significant progress and we're going to continue that progress. “If we continue at the current pace we will be on time able to feed the LNG plant, which will start up by the end of 2013.” While the nearest gas fields to Chinchilla, Miles and Tara are now under the control of an international company, Mr Chapman said BG Group was committed to retaining the local support showcased by QGC. “We would be foolish in the extreme not to take that brand and try and enhance it and develop it even further,” he said. “We are intending to do that and we’re hoping to strengthen it further by connecting it to the global identity of BG Group.” He admitted retaining the QGC brand was not a difficult decision and made the remark when hosting around 100 of the company’s Surat Basin employees to a barbecue. “These people created this company. It is through their efforts that QGC is what it is today,” Mr Chapman said. “You can imagine therefore that they are steeped in the brand of QGC, they love this company and they are delighted that we intend to put all of QGC’s businesses under the umbrella of BG.”

WHO IS BG GROUP A leading player in the global energy market, BG Group is a dynamic growing business with operations in some 27 countries over five continents. While its headquarters are in the United Kingdom, more than 60 per cent of the talented professionals who make up the BG team are located outside the UK. BG Group has a proud history

in all aspects of the energy sector, particularly natural gas, where it has experience across the entire gas chain – from exploration to delivery to the consumer. BG Group is a publicly listed company on the London Stock Exchange and is also listed on the US over-the-counter market known as “International OTCQX”.

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PAGE 17

RESOURCES

Xstrata hands down future of the Surat EIS released on a project is expected to spark unprecedented development in the energy province’s northern extremes Wandoan coal project director Bill McKinstrey and the 17-volume Environmental Impact Statement released two weeks ago. andoan will stay put while half a kilometre over the horizon Australia's largest coal mine may begin to take shape from as early as late next year. On Monday, December 7 — an historic day according to Deputy Premier Paul Lucas — Xstrata Coal released the Environmental Impact Study for the Wandoan coal project. To produce 30 million tonnes of coal a year across a mine area of 10,000 hectares, it is expected to be the main driver of the Southern Missing Link and subsequently the trigger of vast development in the northern sections of the Surat Basin. With public comment open until February 2, Xstrata Coal representatives took the

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17-volume EIS on a tour of the region with community consultations in Wandoan, Taroom and Miles. The first stop —- the Wandoan Cultural Centre at 7.30pm Monday, December 7 — where 80 landowners and local residents heard three draglines would operate around the clock to feed seven coal trains a day bound for the ports of Gladstone. The nearest pit could be pried open only 600 metres from the town's western boundary if Xstrata Coal is able to prove the impacts on the town could be controlled.

Even then, draglines may not be used in the pit and mining may be kept to daylight. But with no plans to relocate the town, wherever the mining takes place Wandoan is going to have a very large neighbour in full swing from 2012. “To be brutally honest if we had to shift the town, the additional capital costs to do that, I doubt we'd get the mine off the ground,” project director Bill McKinstrey said of options to move the town. “I don't think we'll ever consider it.” The EIS revealed 1400 workers could begin arriving in

“To be brutally honest if we had to shift the town, the additional capital costs to do that, I doubt we'd get the mine off the ground.”

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PAGE 18

Surat Basin NEWS Thursday 18 December 2008

RESOURCES

DARRYL WAUGH

BILL BLACKLEY

ERIC BAHNISCH

“For the community as we know it, it’s another nail in the coffin but we have to look to the future and younger generations.”

“Frightening, shivering, distraught. Tonight proves this is not going anywhere — it’s here to stay and that’s frightening.”

“It’s a vital day for people in Wandoan because it’s the future of their town. We need to get serious about it.”

DON STILLER “It’s another step forward, or backward, I just don’t know. But it’s an important document that we as a town have to give serious consideration.”

On Monday, December 7, the day the Wandoan coal project’s EIS was released, the Surat Basin News was in Wandoan to ask: What does today mean to your town? Wandoan by late next year to begin 27 months of construction. They would be replaced by an 800-person transient workforce that would arrive and depart via a planned redeveloped or replaced Wandoan air strip. Xstrata Coal also plans to build several homes in the town and upgrade sewerage and water treatment plants. While welcoming hundreds of new residents, the district will lose close to 40 families, displaced to free up the 32,000 hectares Xstrata Coal needs for the entire mine area. Landowner Bill Blackley argued with so much lost, Wandoan was unlikely to see any benefits. “I don't think the community is being fairly compensated enough for the loss of 30 plus families out of the

community,” he said. “Blind Freddy can see there's going to be a major disruption to the community. “I haven't seen anything over the last couple of years while this process has been happening on how the community is going to be adequately compensated.” Mr McKinstrey said Xstrata Coal would ensure Wandoan would reap the benefits of the project. “As those people are displaced — if that’s the right word — and the mine develops the benefits will start to roll in as well,” he said. “Yes, you do lose some farming community members but we will continue to work extremely closely with the

community to make sure the community hasn’t been disadvantaged.” For many at Wandoan's meeting, concerns centred on what would be left once the mine had eclipsed its 30-year lifespan. The EIS states that land would be returned to grazing or cropping land but only when “practicable”. “There is nothing sinister about the word practicable or possible,” Mr McKinstrey said. “We will decommission the mine site effectively, properly and back to its original use, basically.” The EIS is open to public comment until February 2.

“I don't think the community is being fairly compensated enough for the loss of 30 plus families out of the community.”

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PAGE 19

RESOURCES

Carbon pushes through conflict Bloodwood Creek trial remains on track despite unfolding conflict over Surat Basin resources

Deep into its 100-day trial at Bloodwood Creek, Carbon Energy remains on track despite the conflict unfolding over Surat Basin resource. An underground coal gasification aspirant like Linc Energy, Carbon Energy has been working with the State Government to ensure it will continue to have access to its coal. The company has taken solace from recent comments of Mines and Energy Minister Geoff Wilson that policy would be developed in the best interests of all stakeholders. “There has been a great deal of discussion in the press recently, initiated by some aggressive lobbying by international giant British Gas, that UCG will be locked out of the Queensland market in order to accede to demands by CSG players for socalled certainty,” Carbon’s chief operating officer Andrew Dash said. Carbon Energy’s intention, once the current UCG trial is successfully completed is to pursue the feasibility of constructing, in partnership with existing business partners, a $1 billion ammonia plant and a separate $1-2 billion manufacturing facility near the Surat Basin site. These developments would be in addition to the LNG plans as proposed by the major gas companies. “The Queensland Government

is very aware of the significant potential these developments bring to communities in rural Queensland and the importance of UCG in making these projects happen,” Mr Dash said. “Our focus to date has been on ensuring that Queensland businesses and consumers are in a position to take advantage of the lower priced more environmentally friendly energy products that our technology can offer. “However, as an organisation, we also have a clear national and international commercialisation strategy that we will continue to pursue and execute.” The trial at Bloodwood Creek has attracted national and international attention with business and government delegations representing interest from India, Japan and Europe visiting the site within the past two weeks. Carbon Energy confirmed the Bloodwood Creek site, which employs a workforce of between 25 and 50, could produce syngas suitable for power generation. The company is now in the process of producing hydrogenrich syngas suitable for use as a high value chemical feedstock. The A$20 million UCG syngas trial is designed to demonstrate the sustainability and consistency of its commercial scale UCG syngas production before moving to development of one or more potential commercial scale production options.

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LOCAL NEWS

GREEN HORIZONS

Going green with Australia’s first grain to ethanol plant For a snapshot of the Surat Basin’s diversity, look no further than the outskirts of Dalby where Dalby Bio-Refinery Limited has opened Australia’s first grain to ethanol plant. Capable of producing 90 million litres of ethanol a year, the plant is expected to have wide reaching regional benefits for agriculture, industry and community. The Surat Basin News presents a three-page feature on greenest of green projects opening on the Surat Basin.

Dalby Bio-Refinery chief executive Kevin Endres opened Australia’s first grain to ethanol plant outside Dalby last Wednesday.

"At Leighton Contractors Industrial & Services Division we design, construct, operate and maintain mechanical and electrical-based plant and transport infrastructure in our chosen market sectors. Leighton Contractors are proud to have been a part of the Dalby Community whilst constructing the Dalby Bio-Refinery over the past eighteen months. During our time in Dalby we erected a shade structure, with the help of some of our subcontractors, over the swing for disabled children in conjunction with the Variety Club. Construction of the Ethanol Plant has finished and we have left the site however we look forward to future projects in the area."

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PAGE 21

DALBY BIO-REFINERY MILLING

LIQUEFACTION The sorghum first passes through hammer mills, that grind it into a fine powder called meal.

SACCHARIFICATION FERMENTATION

The meal is mixed with water and alphaamylase, goes through cookers, and starch is liquefied at higher temperatures.

The mash is then cooled and the secondary enzyme (gluco-amylase) added to convert the liquefied starch to fermentable sugars

GRAIN ETHANOL MANUFACTURING PROCESS

DISTILLATION

Yeast is added to ferment the sugars to ethanol and carbon dioxide in a batch fermentation process which lasts for up to 48 hours.

The fermented mash, (10% alcohol), the non-fermentable solids from the grain, and the yeast cells are pumped to the distillation system where the alcohol is distilled off. The alcohol leaves at 96% strength, and the residue mash, exits as a by-product.

New frontiers Australian first Last Wednesday, the shutter grinded into action inside Australia’s first grain to ethanol plant. Up to four million litres of alcohol should be produced at Dalby Bio-Refinery on the outskirts of Dalby before the end of the year bound for several locations, including the tanks of main customer Caltex. More than 8000 tonnes of grain will be consumed in that time. Dalby Bio-Refinery chief executive Kevin Endres conceded it had been a difficult two and a half years on the project. “It’s the first grain-toethanol plant in Australia and we’ve broken new frontiers in a number of places,” he said. “That’s made it difficult. “It’s not something you can

“Here we are, sitting on the Downs, able to take a big chunk out of the market; it’s an excellent opportunity for local growers,” do easily.” Next year, Dalby BioRefinery will consume 200,000 tonnes of grain on its way to churning out 90 million litres of ethanol. After two bumper grain seasons and the prospect of a third, Mr Endres believes Dalby Bio-Refinery’s opening is a “dream” scenario for the grain industry.

“Here we are, sitting on the Downs, able to take a big chunk out of the market; it’s an excellent opportunity for local growers,” he said. “We’ve got growers coming to table with long term contracts.” From the ethanol production process, around 140,000 tonnes of distillers grain and 40,000 tonnes of distillers

Darling Downs’ newest domestic grain market Commodities manager Peter Wylie believes Dalby Bio Refinery could help alleviate the sorghum glut felt across southern Queensland this year. Last season’s three million tonne national sorghum harvest was bolstered by the Darling Downs, where the best crops yielded in excess of 10 tonnes to the hectare. With large chunks of the harvest laying idle at depots across the region, the problem might be exacerbated with this summer shaping as last season’s equal. The Dalby Bio Refinery will consume 4000 tonnes of sorghum a week — more than 200,000 tonnes a year — with Grain Corp operated storage capacity in excess of 50,000 tonnes. While compared with last season's yields the ethanol plant's consumption is only minor, Mr Wylie is confident it will still make a noticeable difference. “It’s a lot in a dry year but not a lot in years like 2008 and what we expect in 2009,” he said. “But it’s still a new market and it’s an important new market in a situation like we’re in now with two good years in a row.” Mr Wylie also believes with the downturn in export prices and shortcomings in transport infrastructure, grain growers are desperate for more domestic markets. “It’s not easy to export big tonnages of surplus sorghum so it’s going to be of assistance to have increased domestic demand,” he said. Mr Wylie remains realistic about southern Queensland’s sea-

PAGE 22

Surat Basin NEWS Thursday 18 December 2008

sonal conditions and admits yields are not always going to mirror that of the current seasons. But he also has faith in the local farming community and its sustainable practices. “Farmers are getting better at growing sorghum and I believe it is inevitable that we’re going to see more three million tonne sorghum crops in Australia,” he said. Mr Wylie also manages the sale of ethanol production’s byproducts — wet distillers grain and syrup — to graziers and feedlotters as a high protein meal. Dalby Bio Refinery will produce close to 140,000 tonnes of wet distillers grain a year and a major contract has been secured for its sale. Down the track the grain could also be dried so it could be transported to the Queensland coast’s dairy industry. “It is very competitively priced when compared with other high protein meals and, as a result, the interest in the by-product has been very good,” Mr Wylie said.

“Farmers are getting better at growing sorghum and I believe it is inevitable that we’re going to see more three million tonne sorghum crops in Australia.”

DEHYDRATION

DENATURATION

The alcohol then passes through a molecular sieve to remove the remaining water from the ethanol. The alcohol product at this stage is approximately 99.8% purity.

CO-PRODUCTS Ethanol that is used for fuel is then denatured with a small amount (2-5%) of petrol, to make it unfit for human consumption.

The three main coproducts created in the production of ethanol - distiller's grain, syrup and carbon-dioxide

GRAIN ETHANOL MANUFACTURING PROCESS

crossed as switches on syrup - high protein don’t need potable water,” meals for livestock Mr Endres said. will be produced “We’re using it now annually. because that’s all that is But according to available but we could Mr Endres, storing take recycled or coal seam the co-product will methane water tomornot be an issue at row.” Demand for ethanol Dalby Bio-Refinery. has exceeded the plant’s “They (feedlots) design capacity of 220,000 have bought every litres per day and it will single drop of copushed to its maximum to product we can prokeep up with contracts. duce years in Within the next two “We’re talking advance,” he said. years, a decision will be about accelerating made on the plant’s Dalby Bio but Mr Endres Refinery has been and reviving com- expansion is already confident a secdesigned with the ond stage will happen. region’s water short- munities that othEven despite the ages in mind. erwise perhaps falling prices of oil, he With Dalby knows Dalby Bio Refinery Regional Council, may not cope.” can succeed because of the company will the importance of ethanol develop a recycling in Australia’s hydrocarbon pool. plant to produce the necessary one But the benefits of the grain-tomegalitre of water a day. ethanol plant will be felt in more Meanwhile, negotiations have places than just at the fuel bowser. started to source coal seam methane After years working in the United water from nearby gas fields and States’ ethanol industry, Mr Endres process it through an onsite reverse has witnessed the “incalculable” osmosis plant. “We can buy very substandard regional benefits. “Ethanol as a sustainable, renewwater and use it in the plant, we

Dalby company’s first on refinery project In February last year Ostwald Bros was selected to take on a major role in the construction of Australia's first grain-to-ethanol plant. The Dalby-based civil construction company initially carried out bulk earthworks at the Dalby Bio-Refinery and was later contracted to work on the refinery's reverse osmosis plant. Additional works included the construction of an evaporation pond lined with high density polyethylene and a sorghum pad. To prepare the site for development Ostwald Bros' initial works package involved the importation of 18,000 cu m of soil and 33,000 cu m cut to fill. After successfully completing the earthworks, Ostwald Bros was selected by Leighton Contractors to carry out large-scale structural concrete construction and to support the installation of underground services. Ostwald Bros' concreting crews completed major concrete works which included tank foundations, building slabs as well as the installation of pre-cast concrete panels and suspended concrete floors. The large-scale building slabs required up to 10 separate concrete pours. The project provided Ostwald Bros with an opportunity to break through into structural concrete work and consolidate its concreting capabilities. In recent years Ostwald Bros' has established static concrete batch plants in Dalby and Kingaroy as well as acquiring mobile plants to support remote projects. Chief engineer for the project Von Jones said open communication between Ostwald Bros, the client and other contractors had led to successful outcomes. "We maintained a high level of safety racking up 3,000 LTI free hours on site and worked hand-in-hand with the project team to produce a quality final product," he said.

able fuel, displaces oil and brings the level of trade down and I’d say more importantly — and this is often lost — are the opportunities for regional development that are absolutely enormous,” he said. “We’re talking about reviving regional development. “We’re talking about accelerating and reviving communities that otherwise perhaps may not cope. “That is an enormous benefit that cannot be underestimated.”

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s s i m Don’t ates! d e s e h t Future Editions will be inserted into Chinchilla News March 26 & June 25, September 24, December 17, 2009 Dalby Herald & Roma Western Star March 31 & June 30, September 29, December 22, 2009 Editorial Submissions: John Farmer editorial@suratbasin.com.au Advertising: Laurell Ison advertise@suratbasin.com.au Design: Beth Walker prepress@suratbasin.com.au

PHONE 4662 7368 FAX 4662 8474 PAGE 23

Surat Basin News

ON THE MOVE ACROSS THE SURAT Weatherford’s world of experience

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Queensland Gas produces results at national awards PAGE 25

Ensign’s Surat presence With more than 54 years experience in the industry, Ensign provides operators with fast moving and safer drilling solutions. PAGE 26

Budget gets the Surat moving Customer service and vehicle safety has propelled Budget into a new period of growth. It helps the company is local and understands local needs.

Andrew Forrest, chief executive of Fortescue Metals, for the Executive of the Year award. “The amazing story of QGC’s growth was underlined by its performance this year in the face of poor economic conditions which have affected many potential front-runners as Producers of the Year,” Ron Berryman, the editor of ResourceStocks magazine, said.

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PAGE 24

Queensland Gas Company was recognised as Australia’s Producer of the Year at last month’s ResourceStocks Best of the Best Awards.

Robertson-Kelk said. “In today's highly competitive employment market, the astute job seeker and career changer must view a professionally written resume as an investment for the future. “Whether a graduate or handyperson, full-time or part-time, we all want to be happy in what we do for a living and a professionally written résumé gives you the best chance.”

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COMPANIES

Innovation and reputation assured with Ensign Ensign can trace its delivery of contract drilling services in Australia back to 1954 when companies now absorbed in the Ensign Group commenced operation in this country. Ensign rigs have operated in all mainland states and currently operate nine drilling and workover rigs in South Australia and Queensland. Ensign’s international division has its operational head office in Adelaide and provides services to countries outside of North America which is handled by either the Canadian or the United States division. In recent years Ensign has focused on the provision of drilling services to the coal seam gas industry where it currently has three rigs under

contract in South East Queensland and is soon to add a coring package from North America to this portfolio. In 2007 Ensign deployed two ADRTM type rigs to Australia to provide operators with fast moving and safer drilling solutions. These rigs have a series of automated features meaning that crews avoid having to manually handle drill pipe thus reducing the potential for hand and limb injuries. The rigs are of a modular design meaning they can move and rig up faster than a conventional drilling rig. Ensign is committed to deploying more of this type of rig to Australia to meet market demands. Ensign in Australia operates base offices in Toowoomba and Perth which

provide support services to rigs and crews. These offices combined with the major operational head office in Adelaide and its associated warehouse provide necessary support services to field operations in the provision of a safe working environment for personnel and operators with equipment that is readily supported to ensure minimal operating down time and therefore lower well costs. For further information concerning Ensign’s capabilities and the services provided please contact John Bushell, Vice President International Marketing, Andrew Smith, Business Development Manager or Clint Russell, Contracts Engineer on 08 8255 3011 or by email adel@ensignint.com. 107 Duke Street, Roma

Phone 07 4622 5254 Fax 07 4622 3149 Mobile 0427 583 396 Email mark@fwsroma.com.au

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PAGE 25

COMPANIES

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World of experience brought to local coal seam industry Weatherford is one of the world's largest diversified upstream providers of oilfield services, with one of the industries broadest portfolios of products and services. Today's Weatherford is represented by more than 43,000 employees in 100 countries and has 125 manufacturing facilities supporting more than 800 service bases around the world. Surat Basin towns Chinchilla and Roma are home to two of Weatherford’s bases. “The Bowen basin has an established base in Emerald and we have a new base opening in Moranbah,” said Mike Wagner, business development manager for Weatherford’s artificial lift systems. “This puts us at Weatherford's in a good position to service the rapidly growing demands of the coal bed methane (CBM) sector, fuelled by both local market demand and booming exports.” As well as companies who are specifically exploring, developing and producing gas from CBM in the local area, Weatherford is providing support to the coal mining industry and other mineral mining enterprises. To be able to provide the most up to date services, Weatherford has invested heavily in spe-

cialised vehicles which are virtually mobile laboratories, static test facilities, warehousing and infrastructure and of course staff and training. “The need for talented technical staff has meant that a continuous program of recruitment is being pursued and Weatherford provide industry specific training to their employees supported by our world-wide technical resources,” human resources advisor Nicky Chung said. With exponential growth projections for the CBM sector, Weatherford has plans for the Surat and Bowen basins that will require considerable growth of their workforce in the immediate future. The company motto of "One Weatherford" encapsulates the reality of Weatherford's wide product and service range which can best be summarised by saying that Weatherford is a one stop shop for down-hole products and equipment. This is of great value to Weatherford's customers who can access an unequalled depth of technical knowledge, combined with comprehensive whole-of-well design and seamless integration of Weatherford's various service divisions to greatly simplify the logistics of any project.

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Surat Basin NEWS Thursday 18 December 2008

COMPANIES

Market leader’s local advantage Since August 2008 the Budget Rent-A-Car, South West Queensland franchise has operated under a new management team, with designs on offering their customers an untouched level of service in the vehicle rental business. Budget Rent-A-Car now operates as part of the Black group of companies owned by long-term regional resident Craig Black, which comprises of the Black Toyota dealerships in Roma, Chinchilla, Dably, Warwick and Oakey and Boonarga Welding which is a market leader in the production of trays, bullbars and brushrails based in Dalby. The Budget fleet has fully maintained passenger cars, 4WD utilities and wagons, trucks, and buses, comprising of approximately 150 vehicles. Budget's head office is at 174A James Street, Toowoomba and has recently The Budget Rent-A Car team of Eli Scott (fleet manager), Judi Brunner (administration manager), Kyly Mills (customer service) and Dick Webster (general manager). opened a service centre at McDowell Street, Roma and difficulties that customers in their regional 4WD vehior long-term rental. will be opening a service cenface in the regional areas. cles. Regional locations allow tre in Chinchilla in the new The growth has been genSafety is number one in customers flexibility for pick year. erated through a focus on the mining industry and up and drop offs. Being a The regional centres are customer service and vehicle Budget has committed to the long-term local and having located in Toowoomba, Dalby, safety. industry demand by investthat regional present Roma, Warwick, Charleville, Budget is committed to ing in the GPS unit. throughout the Surat Basin Gatton and Kingaroy. delivering vehicles that are The combination of the gives customers comfort and It's an exciting time for fully maintained and service. strength of the Budget franconfidence in renting vehiBudget and its service team The company offers a large chise and the depth of experihas really risen to the chalcles. late model product range ence of the Black Toyota lenges and grown the busiBudget has led the way in from small to family passenGroup throughout the Surat ness in a short time frame. meeting the demands of the ger vehicles, through to Basin will assure customers Being local, the team mining industry, by implebuses, trucks and 4WD mine receive a continuous quality understand the needs and menting GPS tracking units spec vehicles for either short service.

Surat Basin NEWS Thursday 18 December 2008

FK Gardner’s silver lining FK Gardner and Sons (FKG) is a local civil, building and plant hire company that's looking to take advantage of global uncertainty. Managing director, Gary Gardner, said the group sees a distinct advantage in the upcoming infrastructure requirements of the Surat Basin Energy Province (SEP) as it’s able to source construction professionals no longer required in other areas of Australia. The industry has not been in this position for a number of years. “Although we have a long term core base of skilled industry professionals, sourcing new people to fulfil the ebbs and flows of the construction industry has been testing,” Mr Gardner said. “We are hoping there will be an easing to this factor in the near future. “Locally we feel we are in a much better position than the rest of the country to deal with a perceived down turn.” FKG are one of the larger employers within the region with a current workforce of around 350 people. The enormity of the projects planned for the SEP will require local companies within the supply chain to increase their capacity or miss out on potential opportunities. FKG are already very active throughout the basin and have an optimistic view of the next five years. As FKG are the largest construction company within the defined SEP, and have existing relationships with many mining companies in the area, they have every reason to be optimistic.

PAGE 27

Surat Basin News

MAPPING OUT A WILD CORRIDOR Diversified puts its brand behind local wildlife

INFRASTRUCTURE www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

COMMUNITY INPUT: Taroom group helps guide Nathan proccess

Dam taken to the people PAGE 29

Origin hosts thirsty ministers Last month, State Government ministers visited Origin Energy’s Spring Gully field after releasing a new water policy PAGE 30

Arrow branches out to develop fifth field Arrow Energy has received permission to develop its fifth coal seam gas project, situated just west of Dalby. Gas will be fed to the Braemar II power station.

unWater project manager Peter MacTaggart said a series of community meetings over the past two months had provided interested members of the community an opportunity to learn about the project and speak with project members. "We've had a lot of interest in the project and I am sure this will continue as we progress further into the project investigations," Mr MacTaggart said. "The public feedback period on the project's Environmental Impact Statement's (EIS) Terms of Reference is now closed and once the document is finalised it will be provided to the Coordinator-General. "The project's EIS is expected to be available for public comment by the middle of next year. "We have also formed a community liaison group (CLG) for the project which meets regularly in Taroom to discuss the EIS process and allows us to

resource could potentially be included as part of the Nathan

Dam and Pipeline Project's scope.

“We are progressing with the Indigenous cultural heritage surveys and our field investigations are on-going.”

Queensland defies global financial crisis In a major vote of confidence for Queensland, Premier Anna Bligh has today announced a landmark deal that will see WICET Holdings granted preferred developer status for the new Wiggins Island coal terminal in the Port of Gladstone. The deal means private industry will fund and build the $4 billion terminal. Ms Bligh said WICET was a consortium of 16 coal companies which came together in early 2008 with a proposal to develop the Wiggins Island Coal Terminal, following State and Australian Government environmental planning approval for the terminal. "The WICET Group will own and finance the new terminal, under a long term lease, with Gladstone Ports Corporation as operator,'' she said.

The Premier said the global demand for Queensland coal has led to strong interest from coal mining companies for increased coal handling capacity at the Port of Gladstone. "Importantly, Wiggins Island will be a common user facility under the open access and terminal expansion arrangements proposed by the WICET Group. "The government and WICET will now work towards signing key documentation and ensuring the developers are able to secure finance. Financial close will be in 2009. "Wiggins Island is expected to be delivered in three stages, with the first stage creating additional port capacity of 25 million tonnes per annum by late 2012," Ms Bligh said. "Gladstone will be exporting up to 150 million tonnes a year when all three stages of

“The government and WICET will now work towards signing key documentation and ensuring the developers are able to secure finance. Financial close will be in 2009.” PAGE 28

SunWater project manager Peter MacTaggert speaking at a recent meeting in Wandoan.

THE MAIN PLAYERS Shareholders in the WICET consortium are: Anglo Coal Australia Aquila Resources BHP Billiton BHP Billiton Mitsubishi Alliance (BMA) Caledon Coal Cockatoo Coal Felix Resources Jellinbah Resources Macarthur Coal Wiggins Island are complete. "Construction of the Wiggins Island Coal Terminal would see the Port of Gladstone become one of the world's largest coal export ports." Ms Bligh said that access to the terminal will be based on long-term take or pay throughput contracts and Gladstone Port Corporation's capacity priority framework which has been agreed with the coal

Surat Basin NEWS Thursday 18 December 2008

Northern Energy Corporation QCoal Rio Tinto Coal Australia Syntech Resources Vale Australia Wesfarmers Curragh Xstrata Coal Queensland industry WICET's model will operate on a ‘cost pass-through' basis and not seek to extract a profit margin beyond the recovery of finance and operating costs. This arrangement should ensure timely and efficient delivery of new coal export infrastructure to meet the requirements of existing and potential coal producers in the Surat and Bowen basins.

INFRASTRUCTURE

Ministers flow on to Origin Energy’s Spring Gully field Origin recently hosted a visit to its Spring Gully Reverse Osmosis plant by the Deputy Premier and Minister for Infrastructure and Planning, Paul Lucas, and the Minister for Mines and Energy, Geoff Wilson. The visit followed the release of the Queensland Government's coal seam gas water policy. Origin has invested $20 million in the reverse osmosis plant. Its initial capacity of nine mega litres a day is being upgraded to 12 mega litres. Purified water from Spring Gully has been used in cereal cropping trials and on a Pongamia plantation which has the potential to be used in a future biofuel trial in partnership with the University of Queensland.

Origin has gone out to the community and called for proposals for the commercial and beneficial use of coal seam gas water. General manager, exploration and production, Paul Zealand, said Origin had received a range of proposals covering urban, industrial, agricultural, environmental and recreational water uses. “We have identified a short list of options we consider have merit and we're in detailed discussions with some of those proponents to identify preferred options for commercial and ben-

eficial water use,” he said. “We are also working with the Queensland Government and other CSG producers on long term strategies for CSG water use. “The issue for us as an industry is getting a commercial return on our investment in treating the coal seam gas water to a high quality. The pipeline cost to transport water to potential users is high, making it difficult to justify anything other than local uses without some additional infrastructure funding support.”

Mines and Energy Minister Geoff Wilson and Deputy Premier Paul Lucas (left) taste a drop of reverse osmosis treated water with Origin’s Paul Zealand.

“We are also working with the Queensland Government and other CSG producers on long term strategies for CSG water use.”

Work starts to link gas fields with Darling Downs power station Construction company Nacap Australia has started work on a 205 kilometre pipeline which will deliver gas to Origin's Darling Downs Power Station at Braemar, near Dalby. The first section of the pipeline will run from the Talinga gas field to the Darling Downs Power Station and connect to a second section running from the Wallumbilla gas hub near Roma. The pipeline project manager, John Lee, said the route chosen by Origin was designed to minimise the impact on landholders and areas with significant cultural heritage and ecological values. Mr Lee said initial works which are underway near Kogan include clearing and grading of the pipeline route in preparation for stringing works, which involve laying out the pipe to get it ready for welding. The pipes are then tested before being laid into the ground. The high pressure steel pipeline is 450 millimetres in diameter and manufactured

from high strength steel. It will be buried at a minimum depth of 900 millimetres. At road and watercourse crossings that depth will increase to at least 1200 millimetres. The pipeline licences for construction and operation of the pipeline were issued by the Department of Mines and Energy in September this year. Nacap is an international specialist pipeline construction company which has successfully completed a number of large pipeline projects in Australia in the oil and gas sectors, including the 390 kilometre North Queensland gas pipeline which runs from Moranbah to Townsville. Mr Lee said both the Origin and Nacap project teams are focused on the safe and timely completion of this strategic pipeline project. The project will directly employ up to 150 people in the field during the construction phase, with the crew being housed initially at a camp in Chinchilla and then moving to a camp near Dulacca as the pipeline pro-

gresses west, in order to reduce travel time and traffic impacts. The project will draw on the expertise of service providers in the local area such as mechanical and electrical tradespeople and machinery suppliers to support the project. Origin is also using its local team of dedicated landowner liaison officers to work with individual landowners and local councils to advise them of traffic movements and progress of work along the pipeline route. The pipeline is due to be completed by May next year. Origin's $780 million Darling Downs Power Station will be the largest combined cycle power station in Australia when it begins commercial operations in the first quarter of 2010. It will generate 630 megawatts of electricity into the grid and is expected to consume up to 44 petajoules of gas each year from coal seam gas fields in Queensland.

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Surat Basin NEWS Thursday 18 December 2008

PAGE 29

INFRASTRUCTURE

Rather than just a corridor of steel, Diversified is capturing a...

Snapshot of our wildest and rarest Diversified Construction is not only linking Surat Basin gas fields with southern markets but it is capturing a detailed snapshot of the region's wildlife. In September, the company started building a 112km pipeline from the Berwyndale South gas field east of Miles to a compressor station at Wallumbilla. Diversified launched a fauna management program led by its environmental officer Kel Sanson to rescue and record wildlife trapped in the pipeline trench. Two wildlife handlers, Ivan Edney and Matt Keleher, check the open trenches daily and so far have saved and then released 300 animals consisting of about 50 different species. Nine of those are listed as rare, vulnerable,

endangered or regionally significant. Queensland National Parks and Wildlife along with the Environmental Protection agency will receive a fill species list and the locations of all fauna recovered during the project. Diversified manager of environment, safety and health, Brian Ross, said the wildlife program was part of the company's approach to responsible development. He said Diversified always attempted to go “above and beyond” environmental regulations. “It's a pretty good way of demonstrating our responsible practices to not only the community but also our own people who have an interest in the environ-

Diverisified Construction is putting its brand behind a program to capture, record and release wildlife between Miles and Wallumbilla. ment,” he said. The pipeline should be finished by early next year and Mr Ross said he was confident Diversified's legacy in the Miles and Roma regions would be a positive one. “We're making sure we're doing the right thing by the environ-

ment,” he said. “We're here to build a

pipeline, not to harm the local wildlife.”

“It's a pretty good way of demonstrating our responsible practices to not only the community but also our own people who have an interest in the environment.”

Broad Acre Industrial Land

Arrow adds another field to portfolio Arrow Energy has been given the green light to develop its fifth coal seam gas project in Australia. The Queensland Government has awarded the company a petroleum lease (PL 252) to develop a 76km2 area at Stratheden, about 20km north-west of Dalby in the Surat Basin. The Stratheden project will be Arrow’s fourth coal seam gas field development in the Surat Basin, adding to the company’s Tipton West, Kogan North and Daandine projects. The company’s gas production project portfolio also includes the Moranbah Gas Project in the Bowen Basin. Arrow Energy managing director Nick Davies said it was another important milestone for the company. “We are pleased to be given the go ahead to develop our fifth coal seam gas field in Australia” Mr Davies said. “Stratheden will be developed in conjunction with an expansion to our Daandine Project to supply gas to the soon to be commissioned Braemer II power station and represents a further expansion of Arrow’s gas and power grid in the Surat Basin.” Arrow is in a 50/50 partnership with ERM Power in the development and operation of the Braemer II Power Station. Arrow will supply 11.5 PJ per annum of gas to the 450 mega watt (MW) power station.

Dalby Jandowae Road

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Toowoomba PAGE 30

Surat Basin NEWS Thursday 18 December 2008

LEGAL AID AID ON ON HAND HAND LEGAL

Surat Basin News

Law now now on on landowners’ landowners’ side side Law

OPPORTUNITIES ABOUND Worldly traveller lands in Surat Basin

THE PEOPLE

VOICE YOUR OPINION: editorial@suratbasin.com.au

PAGE 32

www.suratbasin.com.au

Cottee’s typically flamboyant farewell

Link between Queensland Gas farms and mines managing director In September, Gerry bids farewell with McKie was appointed community liaison victory lap of the officer with the Surat Basin Department of Mines and Energy. The past two months have been anything but quiet for Mr McKie. PAGE 36

Building skills with Origin assistance One of Origin’s skill scholarship recipients has shone at a recent awards ceremony. Find out who he is.

“I’ve given up pinching myself because I do think I’m in a dream. That’s why I’ve got a wife, she keeps pinching me.”

Origin’s dedicated information line for landowners Origin Energy has established a dedicated information line for landowners in south west Queensland. The 1800-LANDOWNER line will give landowners the opportunity to put forward ideas and ask us questions about the impact of Origin's coal seam gas exploration and production activities on their properties. General manager exploration and production, Paul Zealand, said Origin was extending its commitment to respecting

the rights and interests of the communities it's operating in by establishing the information line. “The increasing demand for gas for Queensland homes and businesses, and for the export market, is driving the development of Queensland's world class coal seam gas reserves,” he said. “This development will bring benefits and opportunities to south west Queensland in the form of jobs, spending on supplies and infrastructure and

Surat Basin NEWS Thursday 18 December 2008

increased services. “However, one message which came through clearly at last week's Queensland Government summit in Dalby is that people living in the region want more information about coal seam gas developments. “We already have a dedicated team of local landowner liaison officers working face-to-face with our neighbours and this information line will give landowners a further opportunity to talk to us about the impact of our operations in their area.”

PAGE 31

THE PEOPLE

The person to talk to when mining comes knocking Naomi Golden is Xstrata’s project liaison officer.

Local becomes point of contact Xstrata Coal Queensland announced last month the appointment of Naomi Golden as project liaison officer for the Wandoan Coal Project. Originally from Brisbane, Naomi moved to the Wandoan district more than 10 years ago when she married her husband, local Stuart Golden. The couple and their two children, Isabel and Angus, live on a beef cattle property west of Wandoan. In her role as project liaison officer, Naomi will act as the primary point of contact for locals who want to know more about the project.

Gerry McKie has seen a lot of the Surat Basin since he became the person to talk if a mining company knocked on your door. In September, he was appointed community liaison officer for the Department of Mines and Energy, a new role lobbied for by AgForce. Mr McKie has been the first point of contact for landowners whose properties attract the interest of coal or gas companies. In Hopeland this month, he admitted the Surat Basin had proven to be a hotbed of land access, compensation and environmental issues. Many of the issues, Mr McKie said, centred on disruption to prime, agricultural land. “There are more submissions and more angst coming out of this area about that issue than anything I’ve seen in 40 years,” he said, Mr McKie does not come without experience after he worked from 1996 in the field for the Department of Mines and Energy, with plenty of

time dedicated to rural Queensland. “During this period I gained a wealth of experience both in applying the legislation and in on-ground exploration and mining activities,” he said. “I travelled extensively throughout rural areas to liaise with landholders affected by exploration and mining.” Mr McKie stepped out of retirement to become the community liaison officer but its not the fire many would have expected him to step into. “I am there to provide on-theground information and advice about their rights and responsibilities and to work with them and mining companies to resolve any issues of concern about mineral and petroleum tenures associated with their lands,” he said. “Generally the landholders are happy someone with my experience is available to provide them accurate advice and information on the various aspects of the legislation and the processes involved.”

Gerry McKie has been appointed the Department of Mines and Energy’s community liaison officer.

Santos Providing vital energy to Queensland and proud to be part of the local community.

PAGE 32

Surat Basin NEWS Thursday 18 December 2008

@Work on the Surat Passion brought to the Surat The law is now on their side Iran is a long way from Queensland's Darling Downs but Iranian engineer Reza Ahmadi has had no difficulty fitting in with Ostwald Bros' civil construction team. Mr Ahmadi, a graduate of Tabriz University, joined Ostwald Bros in February and is now applying his engineering skills to the company's wide ranging civil construction projects. Before moving to Australia with his family last year Mr Ahmadi had 14 years experience as a civil project manager overseeing the construction of 34 strategic ports, major highways and commercial developments. Ostwald Bros is now giving Mr Ahmadi the opportunity to pursue his passion for engineering and advance his skills within the Australian construction industry. Mr Ahmadi is currently employed as a civil site engineer and hopes to eventually take on a project manager role within the company with plans to study a Master of Engineering Management through the Queensland University of Technology. Mr Ahmadi said the flexibili-

Reza Ahmadi is right at home on the Surat Basin. ty and training support offered by the company had already enabled him to advance his skills. "Ostwald Bros has been very

kind to me by giving permission to do English classes. They have been very patient with my need to learn different ways of working," he said. Mr Ahmadi left Iran with his wife, also a qualified engineer, and their seven year old son to find a freer and more stable lifestyle. "Here in Australia with work, there is no stress, we can afford to live better and the weather is good," Mr Ahmadi said. Ostwald Bros operations manager Von Jones said Reza's attitude and commitment to his responsibilities as a site engineer had been excellent. "Already in his short time with Ostwald Bros Reza has completed the West Darra substation civil works project for United Group and is now heavily involved with all the subdivision developments in Dalby. "He is a well respected member of Ostwald Bros' south east Queensland operations team.”

“Ostwald Bros has been very kind to me by giving permission to do English classes. They have been very patient with my need to learn different ways of working”

Farmers have the law on their side now and it comes free of charge. Toowoomba solicitor Glen Martin (pictured) was last month appointed to Legal Aid Queensland’s farm and rural section to provide assistance to landowners affected by mining. The statewide service was identified by AgForce in light of the accelerated rate of exploration and mine development in Queensland. Mr Martin said he was available to clarify mining-farming issues and assist landowners dealing with coal, gas and energy companies. “I’m here to attend meetings, give individual advice and to give assistance to individuals,” he said. “If anyone has a problem and they need legal assistance they should come and see me and I can help them. “It’s not just about attending

meetings, it’s not just about making phone calls, it’s about giving assistance if they need legal representation.” Mr Martin said he can not go to court or provide extensive legal advice but added many landowners were entitled to legal costs. “In a lot of these cases it’s not warranted I act for them because they’re entitled to their legal costs and they ought to go to see a private practitioner,” he said. Mr Martin believes one of his most important roles is making landowners aware of their rights. “What I like to think I’m doing is letting them know what they can do, should do and also making sure they do what they can and should do,” he said. Mr Martin can be contacted on 3238 3304 or at gmartin@legalaid.qld.gov.au.

ROMA INDUSTRIAL ESTATE Premium land in Roma’s Surat Basin. NOW SELLING. Roma Industrial Estate is rapidly generating interest from the mining, resources and bulky goods industries. Freehold land is now selling just moments from the Warrego Highway, with custom-build and lease options also available. • Strategic location 3km from Roma Town Centre • Exposure to approximately 3000 vehicles per day • Flood-free area • Type 2 compatible roads • Level platforms on all lots • Broadband and underground 3-phrase power and utilities • Lots from 2ha to 4ha

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Surat Basin NEWS Thursday 18 December 2008

PAGE 33

@Work on the Surat Shared knowledge the way forward for industry History is what defines us as a people and a country. It's not something which can be reversed, and there's a genuine need for us to learn from it in order to grow together. That's the thinking of Origin's native title and cultural heritage manager Alison John, who believes shared knowledge and a willingness to work collectively are the way forward for Australia's oil and gas industry. Twenty-four years at the country's largest integrated energy company have given Alison a firm grasp of the complexities associated with balancing exploration activity and the preservation of cultural heritage. And it's a challenge the Brisbane-based officer relishes. "Indigenous Australians are important stakeholders in Origin's areas of development and we acknowledge their culture and their ongoing connection to land and country as a very important element of our work," Alison said. "Like any industry, we have our hurdles to overcome; at the moment we're focused on strategies to increase the participation rate of Indigenous

Alison John is Origin Energy’s native title and cultural heritage manager. Australians in full time employment within the industry. "Another important and ongoing challenge is raising awareness and knowledge of the history and culture of Australian Aboriginal people. "I'm proud to say Origin has been proactive in facilitating a

number of cultural awareness programs for our employees to introduce them to information they may otherwise not have known." Alison's connection to Indigenous culture and Australian history is based on her philosophy of continued

learning. Grateful for the start in life provided by her hardworking parents, Alison has taken no shortcuts to reach her current position. Born and raised in Roma, she called the resource-rich town home until four years ago, when she relocated to Beerwah on the Sunshine Coast to take up a position at Origin's Brisbane office. The self-confessed country girl began building her skills base while completing senior studies, working as a casual at the local Woolworths supermarket. After graduating high school, she commenced full time employment with Westpac Bank before taking time off to start a family. She later returned to the workforce via a casual accounting role with the local Holden dealership before moving to full time employment as an administration assistant with Hartogen (later purchased by the Oil Company of Australia, now known as Origin). Since then, Alison has worked her way through roles in warehousing, landowner relations, environ-

ment, safety, and cultural heritage to her current position managing cultural heritage and native title for all Origin's exploration and production activities within Australia. "I've been with Origin for 24 years now, and I know other employees who've been here even longer. To me, that says more about the company than any PR brochure could because if they weren't good to work for, people wouldn't stay." Alison said the challenging nature of her work, as well as the personalities she meets, keep her coming back. "This job gives me the chance to meet people from all walks of life, from all over Australia; people who welcome you into their homes, and share their lives with you. "Possibly one of the best experiences is sitting and listening to the older generation of Aboriginal people talk about their customs, beliefs, history and language. "It's another world that not everyone gets the opportunity to share in, and it gives you a totally different outlook on life."

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Surat Basin NEWS Thursday 18 December 2008

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@Work on the Surat A global scope and ambition to admire Georges Angate sparkles when he talks about his new boss Frank Chapman. With Queensland Gas for just six months, Georges met the BG Group chief executive at a company barbecue last month. Straight away he was impressed by the company's vision, its global scope and Mr Chapman's innovation. “He doesn't value your work by the number of hours, he values it by the input,” Georges said. “That's how an entrepreneur thinks — not a boss — an entrepreneur.” Georges is from the Ivory Coast but left to backpack around Europe, broaden his mind and live the life he’d only read about in books. He heard about Australia through friends and lived in Sydney for 11 years before murmurs of a “mining boom” drew him to Queensland. E N G I N E

Georges arrived in Chinchilla on the day of an energy conference and since September has worked on QGC's gas fields. “It's very exciting,” he said. “When you're working for such a big company, it's always exciting… and always very busy.” When Georges first heard of BG Group's takeover, he immediately started thinking of opportunities to reignite his love of travelling. The British company operates in 33 countries around the world - from Brazil to England, Norway and Russia. “I'm going to put in the

hard work and in three, four or five years when I have the skills and qualifications I need, I'll put my application in for, I don't know, maybe Norway,” he said. Georges has only twice planned a return home; the first time civil war broke out and this month's trip was postponed when QGC came calling. When he writes to his family he uses words like quiet, peaceful and relaxed to describe the region and the country. “Education wise, work wise, if you really want to do something, it's here,” he said.

“I'm going to put in the hard work and in three, four or five years when I have the skills and qualifications I need, I'll put my application in for, I don't know, maybe Norway.”

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PAGE 35

@Work on the Surat Origin manager extends service

Perfect chance to expand skills Brian Vincent always knew he wanted to learn a trade, so when he was offered an apprenticeship with Westlands Engineering in Roma, it was the perfect opportunity. Last month Brian's hard work on the job was paid off as he won Roma TAFE's Apprentice of the Year award. In his second year of a mechanical engineering apprenticeship, Brian has relished in the practical work of repairing agricultural machinery and hydro-electric work for the oil and gas industry. A day on the job is never the same. “I do general machining, operating lathes and milling machines to fabricate the required work piece,” Brian said. “I enjoy hands on work and it has a bit of a technical element which I enjoy.

“I really enjoy it. At the end of the day get a feeling that you've achieved something.” While he completes his apprenticeship, Brian is being helped along the way through the Origin Skills Scholarship program. The wages subsidy helps cover his TAFE expenses and he also benefits from a mentor, Steven Doole, a local businessman in town. “It's another person to bounce ideas off and discuss things with,” Brian said. As he gets to work fabricating a shaft and gears of some farm machinery, he reflects on the bright future ahead of him. “Once I'm qualified, it will open a lot of opportunities,” Brian said. “The career options will be endless as far as work in this local area.”

Brian Vincent’s career path has started with the assistance of Origin Energy’s Skills Scholarship.

Origin Energy announced lastmonth that it had agreed with the managing director, Grant King, on the extension of his service agreement for a further five years . Origin chairman Kevin McCann said Mr King had led the company since its establishment in 2000. Over this time, the company had delivered significant value forshareholders. More recently, the company identified the prospects of coal seam gas production in Queensland and this investment culminated in the Joint Venture with ConocoPhillips to develop a LNG project at Gladstone based on these gas reserves. Origin is in a strong competitive position, with significant financial capacity as a result of the completion of this transaction. McCann said the board was pleased that Mr King will continue to lead the company for the next five years. Mr King’s fixed remuneration for the current year, which is $2.1 million, will remain unchanged. Under the service agreement it is reviewed annually on July 1 each year.

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71 Chrystal Street ROMA Queensland Australia 4455 Phone: +617 4622 6004 Fax: +617 4622 6003 Email: admin@wilddesert.com.au PAGE 36

Surat Basin NEWS Thursday 18 December 2008

Surat Basin News

MODERN TIMES FOR OLD FAVOURITE Big Rig lends a hand to burgeoning industry

THE TOWNS

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

TIME IS OF THE ESSENCE: Wandoan liaison group sets out to minimise the disruptions and maximise the benefits

District liaison group hits its straps in time of upheaval PAGE 38

Coal tour drops by Researchers visit coal affected towns to discover the impacts of mining and develop strategies to minimise the negative impacts. Wandoan and Chinchilla were the final stops. PAGE 34

Roma looks to a big 2009 The Roma Chamber of Commerce has been re-invigorated and is looking to work with the resource companies to make 2009 Roma’s year.

Mr Golden admits bringing different organisations together has proven to be one of the Wandoan District Liaison Group’s greatest challenges. But he feels it is essential to limiting the impact on local communities and farming districts. “One of the key things that comes back to us from community members is why can’t we minimise the scale of the disruption of the whole community with one large, very large, corridor in which all these developments must take place,” he said. “Well, the Co-ordinator General is faced with all these warring corporations who don’t want to work together. “Our feeling, is that’s not really our problem.”

awful lot more happening in this community than just an Xstrata mine,” he said. “Xstrata’s the biggest, no doubt, but we’re dealing with issues so much bigger than just the coal mine.”

“Xstrata’s the biggest, no doubt, but we’re dealing with issues so much bigger than just the coal mine.”

Dalby’s makeover starting from the inside out For the last two years, Dalby has been pampered, preened and spoiled from inside out as part of a makeover. The Dalby Community Welcoming Group formed in 2006 when the first people involved on Surat Basin projects began filtering into the town. Today, the group meets regularly to develop strategies to make Dalby more welcoming. It has held bus tours of the town, formed the Dalby Women's Network and hosted 60 people who had heard of Dalby at the Country Week Expo in Brisbane. Beth Wood helped start the group when she was a project officer with the Western Downs Skills Formation Strategy. During the two years, four community forums have been held to help the group lock in the characteristics that make a town welcoming.

"We realised if we're going to attract people to live in our community we needed to work on the attractiveness and image of the town," she said. "A very important part of that is how you are welcomed to a town." Mrs Wood believes the adage beauty is more than skin deep applies as much to a town as it does to a person. While governments work on streetscapes, parks and roads, the Dalby Community Welcoming Group is all about attitude. "It's not just bits and pieces like trees,

buildings and parks," Mrs Wood said. "A welcoming community is also about the attitude of the people." Like many Surat Basin towns, Dalby is faced with the prospect of transient workforces that only travel to the area to work. Mrs Wood hopes by making Dalby more attractive to new residents, some of those workers may decide to make the permanent move. "I think we can attract more people to town who want to live here rather than just fly in, fly out or drive in, drive out," she said.

“I think we can attract more people to town who want to live here rather than just fly in, fly out or drive in, drive out.”

Surat Basin NEWS Thursday 18 December 2008

PAGE 37

TOWNS

Coal tour visits just to listen After months of closed doors, shaking heads and brick walls, maybe someone to listen was all that was needed. The Coal Communities Tour visit to Chinchilla attracted a crowd of 30 made up mainly of Haystack Plan Action Group members. The two-hour workshop asked participants to consider the future of their communities in the face of coal mining. Five Queensland towns were visited by the tour including Gladstone, Emerald and Wandoan, with Chinchilla the final stop. Tour spokesperson Brad Smith said the group had witnessed mixed reactions during the tour. But where mining was a relatively new industry, Mr Smith admitted the response was mainly negative. â&#x20AC;&#x153;In towns where the coal industry is expanding - where itâ&#x20AC;&#x2122;s not already a dominant thing - weâ&#x20AC;&#x2122;re hearing a lot of peopleâ&#x20AC;&#x2122;s concerns about whether itâ&#x20AC;&#x2122;ll impact positively or negatively on the communi-

Concerned landowners attending last monthâ&#x20AC;&#x2122;s Coal Communities Tour. ty,â&#x20AC;? he said. â&#x20AC;&#x153;A lot of people are voicing severe concerns about that.â&#x20AC;? While a report will be made public and presented to the State Government, Mr Smith said positive outcomes had started to appear before the tour was completed. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m already seeing some of the outcomes so far in terms of linking the communities and showing people that theyâ&#x20AC;&#x2122;re not on their own, that these issues are state wide,â&#x20AC;? he said. â&#x20AC;&#x153;People can support each other across communities hopefully to empower them to fight

for solutions that work for them.â&#x20AC;? Mr Smith denied the tour was â&#x20AC;&#x153;anti-coalâ&#x20AC;? and he admitted many issues could be resolved through better planning and management. â&#x20AC;&#x153;I think that both things have to happen,â&#x20AC;? he said of mining and farming. â&#x20AC;&#x153;In some places it doesnâ&#x20AC;&#x2122;t make a lot of sense to put a coal mine on top of good farming country. â&#x20AC;&#x153;In other places itâ&#x20AC;&#x2122;s about having the right government regulations to make sure it doesnâ&#x20AC;&#x2122;t impact negatively on the community.â&#x20AC;?

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Surat Basin NEWS Thursday 18 December 2008

TOWNS

Big Rig steps up to assist industry Roma's Big Rig may be a tribute to the pioneering days of oil and gas but last month it became very much about the future. HSEplus brought a five-day training course from Brisbane to the doorstep of the workers on rigs around Roma. General manager Dean Devenish said similar courses on well control held in Brisbane had attracted clients out of the region. He said last month's course could be the start of regular visits to Roma. “It was very successful,” he said. “It's the right environment to do it in and there's no expense getting the guys to Brisbane.” While much of the machinery inside the walls of the Big Rig has not seen action in decades, it added a new dimension to HSEplus' training.

Participants were taken to displays like the drill rig in the tourist centre’s historical display. “For recognition, we went out the back and used the rig,” Mr Devenish said. Roma Regional Council tourism co-ordinator Perry Bacon said the partnership between HSEplus and the Big Rig just seemed right. “It's great location to hold a course like this,” he said. “There're a lot of people from Roma and across the region going to Brisbane to do the training but here they can do it close to home and they can see a lot of the things they're talking about.” HSEplus plans to bring a Rig Ready program to Roma that would allow participants to gain qualifications and hands on experience in working on a rig. Mr Devenish said any future courses in Roma would have to be

Andrew McHugh (DST) and Paul Sullivan (Ensign) using the simulator equipment, and course instructor Dean Devenish (HSEplus) assessing their competency. client driven but he does expect that to be a problem. “Even with the global crisis, business hasn't slowed one bit,” he said. “There'll always be demand for gas and there'll always be the need for training, quality training

and nationally accredited training.” And with coal seam gas production on a rapid rise across the Surat and Bowen basins, one day HSEplus may become a permanent fixture in Roma. “The gas industry is booming in the area

and, as a result, we're looking at possibly building a full training facility to run rig training,” he said. Information on HSEplus courses can be found at www.hseplus.com or contact Dean Devenish on 3277 5305 or 0448 177 473.

Commerce Roma looking to make a splash in 2009 Since Commerce Roma reformed in September, the organisation has already made a splash with the Shop Local campaign. Shoppers were out in force for the Christmas Street Carnival on December 4, showing the "buy local" message has made an impression. Commerce Roma president Rhonda Stephenson said it was a "use it or lose it situation." "I think it's really important for people to shop locally and I don't think people see the

benefits, such as creating jobs for our youth and having the products and services available right on our doorstep," Mrs Stephenson said. To that end, Commerce Roma is taking the "shop local" message to the oil and gas industry. "An issue for us is trying to get the oil and gas industry workers into the town because we feel there are too many fly in-fly outs," Mrs Stephenson said. The group will meet with oil and gas companies in the new year

and a pitch a plan for the workers' camps to source groceries from the town, rather than having them trucked in. Commerce Roma would also like to see a policy of employing more local people to work in the industry. "That's one of our main bug bears and I think it's a real shame for Roma," Mrs Stephenson said. "We should have more local families employed in those gas camps rather than fly in fly outs. "If every family that came to Roma were able to live in town

that would be beneficial." While many businesses in town have profited from the oil and gas boom, Commerce Roma was also trying to find ways to address the skills vacuum these

higher paid jobs have created. "We have a problem of skilled labour going to the mines because local business can't compete with the salaries offered," Mrs Stephenson said. In the new year,

Commerce Roma plans to lobby state and federal governments for subsidies to train and retain skilled staff. "If I want to put on a trainee accountant or bookkeeper, I could use that funding to keep them on rather

than them going to the mines," Mrs Stephenson said. "We need to subsidise some of these skilled positions because private enterprise can't compete with mining enterprises.”

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Origin and our local landowners

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Surat Basin NEWS Thursday 18 December 2008