SBN February 2014

SURAT BASIN NEWS

26 February 2014

$1.30 inc GST

INSIDE Page 8

Mayors say councils' TSBE funding is 'good value'

Page 18 QGC approaches $1 billion spend on Western Downs

Page 19 Inland rail concept receives strong Basin support • MACKAY • ROCKHAMPTON • SURAT BASIN

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SURAT BASIN NEWS

THE NEWSPAPER

The Surat Basin News publishes every month and will be delivered via the four dominant newspapers of the region: the Chinchilla News, Western Star, Dalby Herald and The Chronicle.

It will reach the homes and offices of almost 50,000 people living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region.

JOURNO’S

NOTE OVER the next decade, it is going to become a lot easier to travel in and out of the Surat Basin, be it along the blacktop or at 35,000 feet.

It doesn't matter whether you are a business involved with our booming resources sector, a primary producer or an avid traveller looking to embark on a weekend jaunt, the big-dollar infrastructure projects on our doorstep that have either been announced or are currently underway should be viewed as a huge positive.

This month's announcement that the $1.7 billion Toowoomba Second Range Crossing - the much-hyped project that Federal Industry Minister Ian Macfarlane told Surat Basin News in December was "absolutely rock solid" to kick off in 2015 - had finally been given the green light was met with rousing applause by anyone who has had to endure travelling between the Garden City and Withcott in the past 18 months.

While the completed bypass will undoubtedly save time, it will also provide a boost for Surat Basin businesses reliant on road transport and open up opportunities previously put on the backburner.

Commercial flights should be operating out of the Wagner family's Wellcamp Airport by October and, based on the conversations I've had with Surat Basin residents, workers and tourists over the past few months, will be well utilised.

For my money, making the Surat Basin easier to access can only mean it will become an even better place to live, work and play.

Surat Basin News is 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.

ONLINE

Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them.

THE VISION

Surat Basin News will allow local businesses to network and communicate with everyone in the 1200 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.

DISTRIBUTION

The Surast Basin News is inserted into the four dominant local newspapers for the region: the Chinchilla News and Murilla Advertiser, Western Star Roma, Dalby Herald and The Chronicle Toowoomba.

PURCHASE FROM Newsagents in Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope

WEBSITE

GENERAL MANAGER David Richardson Chinchilla 07 4662 7368 manager@suratbasin.com.au

ADVERTISING MANAGER Laurell Ison advertise@suratbasin.com.au 07 4662 7368 Karin-ane King Roma 07 4662 2411 karin-ane.king@westernstarnews.com Nicole Boyd-Taylor Dalby 07 4672 5500 nicole.boyd-taylor@dalbyherald.com.au

Jim Campbell

UPDATES

JOURNALISTS

Regular updates on www.suratbasin.com.au

This newspaper is a Platinium Member

THE

Lyndon Keane Owen Jacques Melissa Mobbs Lauren Gallagher

PAGE DESIGN Beth Walker

INDEX

BUILDING THE BASIN

IN THE NEWS Ray Brown Pre-selection Page 3 Toowwomba bypass Pages 4-5 Santos GLNG Page 6 Erin Brockovich Page 7 Pages 12 - 15

DOWN TO BUSINESS QGC Logistics Hub Bryan Payne Share prices Inland Rail Bob Carroll

TEAM

EDITOR

View our previous editions on www.issuu.com/suratbasinnews

OPINIONS

THE

Page 16 Page 17 Page 18, 19 Page 19 Page 21

Miles Boom FKG road repair Surat Basin Expo

Page 22, 23 Page 24 Page 25

SURAT BASIN NEWS 12 Mayne Street Chinchilla Q4413 PO Box 138 Chinchilla Qld 4413

PLACES & FACES TSBE Enterprise night Page 26, 27 Thiess donation Page 28

FRONT PAGE PHOTO: Premier Campbell Newman checks out where the Surat Basin's coal seam gas ends up during a tour of the Santos GLNG site on Curtis Island. Photo Mike Richards

PUBLISHED The Surat Basin News is published by Chinchilla Newspapers Pty Ltd 12 Mayne Street Chinchilla Q4413 The Surat Basin News is printed

by APN Print 50 Industrial Avenue Toowoomba

THIS WEEK

PROFITS SOAR FOR FMG FORTESCUE Metals Group has pushed its half-year profit out to a record level as cost-cutting measures and expansion plans begin to pay off for the iron ore giant.

In the six months to December, FMG posted a net profit of $1.9 billion, an eye-watering 259 percent increase on the amount recorded in previous corresponding period.

FMG chief executive Nev Power said the record result was due to the company's strategy to construct new capacity, increase production and slash operating costs.

"The ongoing strong demand for our products has allowed us to accelerate debt repayment, de-risk the balance sheet and increase returns to our shareholders,'' Mr Power said.

CLIVE PULLS PIN ON BANKRUPTCY PUSH MINING identity and Member for Fairfax Clive Palmer has abandoned plans to force CITIC Pacific into bankruptcy.

The outspoken politician and businessman had claimed the firm owed his company Mineralogy $12 million in administrative costs and had filed a court application to have the Chineseowned company into liquidation.

Mr Palmer's plan came unstuck when the validity of the wind-up order was questioned by a judge.

While he withdrew his application, Mr Palmer still went on the attack.

"I have denounced CITIC Pacific's behaviour as disgraceful and dishonourable," he said.

Mining magnate Clive Palmer has withdrawn an application to force a Chinese-owned company into bankruptcy.

MAYOR LEARNS OF PRE-SELECTION FATE TOMORROW

WILL BROWN'S SECOND POLITICAL TILT IN 10 MONTHS BE SUCCESSFUL? W

estern Downs Regional Council Mayor Ray Brown has his sights on a move to George Street and will find out tomorrow whether or not he will fly the Liberal National Party flag in next year's Queensland election.

With the 2015 election already looming on the political radar, the party announced on February 6 that four nominees - including Cr Brown - had put their hand up to don LNP colours for the seat of Condamine.

The other three nominees are Toowoomba Regional Council Deputy Mayor Mike Williams, sports administrator Phoebe Mitchell and primary producer Pat Weir.

At the time nominations were due, Cr Brown refused to clarify whether or not he had thrown his hat into the ring but admitted he had been "terribly dissatisfied" with the representation given to the region by Member for Condamine Ray Hopper.

The nomination represents the second attempt in 10 months at a step up the political ladder for the high-profile mayor.

In 2013, Cr Brown made a failed push for the Senate after then-senator Barnaby Joyce announced he was planning a move to the House of Representatives.

Under section 155 of the Local Government Act 2009, Cr Brown - if preselected as the LNP's Condamine candidate - would be able to remain in his mayoral role until he was elected as a Member of Parliament.

The situation has raised community question marks about whether Cr Brown's primary focus would remain on Western Downs ratepayers, or whether it would turn to the campaign trail.

When the question was posed to Cr Brown, he would not be drawn into speculation, stating that he had to "win the pre-selection first".

In the lead-up to the Senate preselection last year, Cr Brown said his political aspirations would not impede on his mayoral duties.

"I'm carrying on business as normal and still representing the Western Downs," he said adamantly in April 2013.

RAY VERSUS RAY: Will next year's battle for Condamine be between current MP Ray Hopper and Western Downs Regional Council Mayor Ray Brown?

"Everyone knows my calendars (are) chock-a-block ... with council things, so I will not be cutting back...; this (preselection) is all in my own time."

If Cr Brown and Mr Hopper do go headto-head for in next year's election, the stage will be set for fireworks, as there is no love lost between the two politicians.

During his endorsement of new Senator Barry O'Sullivan - the man who claimed the vacant Senate seat ahead of Cr Brown - in State Parliament on February 11, Mr Hopper took a thinly-veiled swipe at the Western Downs mayor.

"What we have is a National Party member pre-selected," he said.

"Ray Brown from Dalby stood for preselection.

"He was not good enough.

"The good survived and the good is Barry O'Sullivan."

Local LNP members will meet in Dalby tomorrow to endorse a candidate.

POLITICAL PUSH: Western Downs Regional Council Mayor Ray Brown will find out tomorrow whether or not he has been successful in gaining Liberal National Party pre-selection for the seat of Condamine.

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IN THE NEWS

IN THE

NEWS TOOWOMBA SECOND RANGE CROSSING

NEW HIGHWAY CONSTRUCTION TO BRING OPPORTUNITY T

oowoomba and Surat Basin businesses will face off with deep-pocketed international investors jostling for contracts to complete work on the Toowoomba bypass.

The announcement of the Government's $1.7?billion guaranteed funding base for the project has companies preparing business cases to

win the lucrative contracts, including some of the region's biggest employers.

The Government has made it clear that private investment - and 20- to 30-year ownership of the toll road - will still be needed.

Whatever necessary funds cannot be sourced privately will be shared on an 80 percent to 20% ratio between the State and Federal Governments.

IN THE NEWS

LOCAL COMPANY INVOLVEMENT

THREE - YEAR CONSTRUCTION T

here will be plenty of jobs to go around and Toowoomba companies like FK Gardner and Sons will be ideally poised to take advantage.

Development manager Dallas Hunter did not reveal whether FKG was involved in a consortium of companies vying for a major share of the project.

"Are we looking at it and hoping to gain work out of it? Yes," he said.

"But we've been working on it for a long time, over 12 months - it didn't just start on Friday."

A call has been made for companies to register interest in building the 41km road.

Mr Hunter said FKG management in Brisbane were still "studying the scope" to see if bids had to be made for the project's entirety, or whether separate and unaffiliated companies could simply bid on their areas of expertise.

Materials and mining services company Wagners is also one of Toowoomba's frontrunners in the bypass stakes.

The three-year construction phase of the 41 km Toowoomba bypass is expected to create 1800 jobs and locally-based companies do not want to be overlooked in the contract bidding war.

Wagners managing director Denis Wagner said being attached to a heavy-hitting consortium was "not necessarily" the only way benefit from the undertaking.

"We're looking at ways to get involved (and) we just hope the Government really pushes the local company side of things," he said.

"If you are involved (in a consortium), that's all well and good, but there are still a lot of options for local companies.

"I think everyone in business in Toowoomba will want to be involved in some way‌even the stationery suppliers.

"But the real benefit to this region will ultimately be safer roads.

"That's something we don't want to underestimate."

The equivalent of 1800 full-time jobs are expected to be created by the three-year construction phase of the much-hyped bypass.

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IN THE NEWS

COAL MINE GETS GO-AHEAD DESPITE strong public objection, the New South Wales Department of Planning and Infrastructure has given its backing to the controversial Wallarah 2 coal project.

On Feburary 18, the department handed down its preliminary assessment of the project, near Wyong on the central coast, ahead of the Planning Assessment Commission and public submissions.

The department said there is there is no reason to stop the coal mine on environmental grounds.

The announcement has enraged environmental groups, who have called on NSW Premier Barry O'Farrell to intervene and stop the mine proceeding.

BIG NUMBERS FROM THE SURAT BASIN TO THE SEA

$322M RESULT ORIGIN Energy announced last week it had recorded a statutory profit of $322 million for the half-year to December 31, 2013.

Chairman Gordon Cairns said he believed the result was due to the company focusing on its existing operations, including the Australia Pacific LNG project.

"The half-year result reflects the focus we have on improving the performance of our existing businesses," he said.

"The delivery of Australia Pacific LNG's project is one of Origin's key priorities and good progress continues to be made, with the upstream component 58 percent complete and the downstream component 62% complete."

Santos' mammoth GLNG project is now 75 percent complete.

T

he sheer scale of construction simply beggars belief.

It has cost more than US$18 billion to build from scratch.

More than 1500 workers call the place home at any one time, and is the final destination for a 420-kilometre underground pipeline weaving its way from the gas fields surrounding Roma to Gladstone.

The Santos GLNG project on Curtis Island is now entering its final stages in readiness for the first gas to be pumped next year.

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the opportunity to see the world-class project first-hand and praised the operation.

"In the not-to-distant future, we will see supplies of affordable and environmentally friendly energy going to the world," he said.

"There are other projects on the island that will be delivered over the next 18 months that will see large quantities of gas going to Asian markets.

"This will make Queensland a powerhouse state, not just among the other states, but the leading gas exporter in the world."

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"As an Australian owned and operated company, we are proud to be building this industry for Queensland," he said.

"Santos GLNG has provided $5.1 billion worth of work to Queensland businesses and over the coming decades will contribute billions of dollars in royalty payments to the people of Queensland.

"We have had a home in this state for more than 50 years and it represents a hugely important part of our future."

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THIS WEEK

LANDHOLDER CONCERNS

BROCKOVICH TELLS LANDHOLDERS TO UNITE

FULL FIFO WORKFORCE 'SCARY'

Isaac Regional Council Mayor Anne Baker has slammed the State Government's support of a possible 100% FIFO workforce at Red Hill.

Environmental campaigner Erin Brockovich meets Aaron Jenkyn following her address to CSG-affected landholders in Dalby on February 17.

by Lauren Gallagher he feeling of segregation experienced by CSG-affected Dalby landholder Sue Fulton ended last week when a community meeting led

by Erin Brockovich united her with a room full of others facing the same battles.

During a heated opportunity for attendees to ask questions and express their issues to the well-known environmental campaigner, Ms Fulton made a call for those who were impacted to support each other and make their voices heard.

Brockovich shot to international fame when she was portrayed by Julia Roberts in the 2000 film named after her.

The movie told of her fight against Pacific Gas and Electric, which alleged contamination of drinking water in the

T

Californian town of Hinkley.

Before her formal address to a captivated audience of more than 100, Ms Brockovich gave Ms Fulton a piece of advice which resonated with her.

"You said the squeaky wheel gets attention and that's so true," Ms Fulton said.

"We are the squeaky wheel."

Ms Fulton lives on a property 45 kilometres from Dalby's town centre and said she holds fears for the value of her home once gas companies conclude their work.

"Who wants to buy my place when it's all wrecked? I wouldn't," she said.

From her day-to-day experiences working in town, Ms Fulton said she believed the broader community was unaware of what was happening to landholders in the

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"Everyone needs to know that we all care about your issues," she said.

"Don't have the segregation that it sounds like we do have; we need to let people know what's happening."

Former Shine Lawyers consultant and Kogan landholder Karen Smith said she hoped Ms Brockovich's visit would have an impact on those who attended.

"We need to stick together as a community and make sure we don't give up," she said.

Ms Brockovich told the landholders the path to find a solution to their problems involved vigilance, patience and focus.

"You may lose a battle but that doesn't mean you've lost a war - you get up again tomorrow and you keep at it," she said.

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THE mayor of the state's biggest mining region has launched a stinging attack against the State Government, saying 100 percent forced fly-in, flyout will ultimately destroy the wealth of regional Queensland.

Isaac Mayor Anne Baker's comments came after Deputy Premier Jeff Seeney said Isaac Regional Council was "scaremongering" over its opposition to a possible 100% FIFO workforce at BMA's Red Hill project.

"If the Queensland Government condones 100% forced FIFO work practices at Red Hill, they are effectively allowing BMA to cut jobs in the region and lay the foundation for regional decline," Cr Baker said.

A BMA spokesperson said the Red Hill proposal gave the company "flexible workforce and accommodation arrangements".

SHRINKING WORKFORCE QUEENSLAND Premier Campbell Newman has dismissed concerns about the shrinking construction workforce in the state's coal seam and liquefied natural gas industries.

With many projects entering maintainence phases, Mr Newman said many of the workers had already moved on to gas operations around Australia.

"They are a mobile workforce," he said.

"They've got specialist skills and they go to where the projects are, but this Government will do everything we can to see gas continue in this state."

IN THE NEWS

WDRC CONTINUES FUNDING

MAYORS COME TO SUPPORT OF TSBE

'NO MONEY' ADMINISTRATORS have confirmed there is no money to pay the 1300 workers after the collapse of Forge Group.

Following the shock demise of the company, receivers KordaMentha and administrators Ferrier Hodgson have taken steps to remove almost the entire company's workforce.

"There is no money to pay employees," KordaMentha partner Mark Mentha said.

"We are working closely with the administrators Ferrier Hodgson to help the employees.

"We will be bringing the employees back to their home town and helping them apply for their entitlements."

MINER KILLED A MINER described as "one of the nicest guys in town" was killed at Gold's Harlequin mine during underground rock fall accident earlier this month.

Wayne Fowlie, 59, was fatality injured at the site on February 16 and was only months away from retiring and returning to his native New Zealand.

Mining operations at the site have been suspended while an investigation into the incident is underway.

Despite concerns raised by a colleague, Toowoomba Regional Council Mayor Paul Antonio says he believes the $450,000 given to the Toowoomba and Surat Basin Enterprise annually represents "good value" to ratepayers.

W

estern Downs Regional Council says the $20,000 it spends on supporting business and industry advocate Toowoomba and Surat Basin Enterprise annually is a "win-win" for both organisations and the local community.

The assertion comes in light of a call by Toowoomba Regional Council's planning and development committee chair, Councillor Bill Cahill, last week for the eye-watering $450,000 in financial assistance the organisation gives TSBE each year as a foundation partner to be scrapped.

"I want to make it crystal-clear that I'm not against TSBE or any individual organisations associated with TSBE," he said.

"What I'm arguing against is the public purse subsidising activities that are already happening - I don't believe for one minute that one entity is the answer for everything."

While many on the Western Downs view TSBE as a pro-mining lobby group, the

organisation describes itself as "independent" and "business-driven" with a focus on telling the Surat Basin's story to the world.

TSBE chief executive officer Shane Charles went on the attack following Cr Cahill's comments and said the financial support given by councils supported its "operational framework".

"TSBE is proud of its achievements to date," Mr Charles said in a statement.

"In just over two years, we have more than 350 members...(and) we have been a strong advocate for the region on the bigpicture infrastructure and service items vital to the future growth of our community.

"We have filled a significant gap in the market by providing a valued service to business and industry and successfully leveraging economic development outcomes on the ground for the region."

While Cr Cahill opposed the financial support, Toowoomba Regional Council Mayor Paul Antonio said he believed the organisation's investment represented

"good value".

"Council's investment makes up less than a quarter of the group's overall budget and I am completely comfortable the ratepayers of the region are getting good value from our investment," Cr Antonio said.

Western Downs Regional Council Mayor Ray Brown confirmed his council's financial support - which pales in comparison to its eastern counterpart's $1.35 million, three-year contribution given to TSBE was reviewed annually, adding that he believed the "current arrangement is working well".

"In just over two years, the Toowoomba and Surat Basin Enterprise has established itself as a successful advocate for business and industry across our growing region," Cr Brown said.

"It's a win-win situation (as) Toowoomba and Surat Basin Enterprise lobbies to ensure the building blocks for long-term economic success are in place for our region and the benefits flow through to our local communities."

Toowoomba and Surat Basin Enterprise boss Shane Charles has defended accusations the organisation is a pro-mining lobby.

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THIS WEEK

ARROW ENERGY REVIEW STAFF LEVELS

WORKERS AT ARROW SEEK CLARITY DURING TURBULENT TIMES A

rrow Energy is refusing to confirm how many jobs it has slashed across the region as a result of a downturn in operations.

The company, which is a joint venture between industry giants Shell and PetroChina, announced last month it was conducting "a review of staffing levels" across operations.

The announcement sent a shockwave through the Surat Basin with speculation rife that up to 400 jobs - about one-third of the company's entire workforce - would be culled in an effort to cut costs and tidy up its bottom line.

"Arrow Energy can confirm that it has conducted a review of staffing levels as it

manages costs," a spokesman said at the time.

"The company remains focused on finding additional value and reducing overall costs.

"Arrow will continue to assess development options, including collaboration opportunities, as it looks to develop significant gas reserves."

The axings came amid reports Shell was contemplating pulling out of a $10 billion LNG project in Gladstone as it reassessed its investment options in Australia.

One Arrow Energy employee, who spoke on the condition of anonymity, said they were "bloody fed up" with the company's reluctance to "offer a straight answer".

"All the everyday workers want to know is what's happening with Arrow and our futures," they said angrily.

"No one cares about the billion-dollar decisions; all I want to know is whether I'm going to have a job for long."

When Surat Basin News asked Arrow Energy this week to confirm exactly how many workers had been shown the door, a spokesman refused to provide a definitive number.

"Arrow has stated it is results and value focussed and not schedule driven," the spokesman said.

"Arrow is taking cost reduction actions, of which staff reduction was one element.

"We will not comment on numbers."

FARMERS RAISE CONTAMINATION FEARS

by Melissa Mobbs oncerned landholders say resources industry workers taking a careless approach to vehicle wash-down procedures could have disastrous financial implications for agriculture on the Western Downs. Currently, gas company employees and contractors are required to wash down their vehicles before entering a property, however there are fears in the rural sector that the procedures are not being rigidly enforced.

Such a procedural failure could potentially have catastrophic effects through weed contamination of the Western Downs' prime agricultural land.

One Western Downs primary producer, who spoke to Surat Basin News on the condition of anonymity, said weed contamination was "a huge worry".

"We've spent years keeping the properties our family operates free from weeds, but

C

the CSG boom definitely changes the playing field," they said.

"I want the gas companies to listen to us, really listen to us, and see why the threat of contamination isn't farmers just making noise."

Existing wash-down facilities were "hopelessly inadequate" and exposed farmers to serious threat of contamination, a Dalby solicitor representing landholders has warned.

Peter Shannon is representing several Darling Downs farmers who have suffered the impacts of contamination and said landholders might be forced to deny people entry to their property with the spread of weeds and soil-borne diseases continuously increasing.

"The best defence a landholder has is to deny people entry to his property," he said.

"There are many landholders who speak of occasions where the company doesn't have

a wash-down certificate or there is still mud over the machine and you see signs around the place saying 'speedy' washdown."

Deputy Chair of the Basin Sustainability Alliance Wayne Newton said resources companies were responsible for weed control.

"We are warning landholders to be very vigilant about vehicle movements and if there are issues with weeds to be straight onto the resource company," Mr Newton said.

A GasFields Commission Queensland spokesman said more could be done to continue to improve the current washdown practices.

"Landholders, local and state governments, and the gas industry all have a role to play to ensure they are wellmanaged and effective in reducing weed seed spread," the spokesman said.

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IN THE NEWS

POLITICIANS ACCUSED OF ELECTION BACKFLIP ON NEW ACLAND EXPANSION A

n expansion planned for New Acland coal mine has put Deputy Premier Jeff Seeney and an assistant minister on the defensive as they face claims of broken election promises. Member for Condamine Ray Hopper said a current $896 million proposal to expand the mine flew in the face of promises made on the hustings ahead of the 2012 state election, which was won in a whitewash by the Liberal National Party.

Since coming to power, the Government has worked with the mine's owner, New Hope Group, on a "revised" proposal.

Mr Hopper said this change-of-heart was a major reason he quit the LNP, adding there was little difference in the revision.

In Parliament ealier this month, Mr Hopper quoted a statement from Mr Seeney in late 2012, which stated "an LNP government would not support the expansion phase of New Acland as

proposed".

Mr Hopper then used a question without notice to ask why the Government had "broken this election promise".

Mr Seeney said the new mine expansion was "vastly different" to what was on the table at the time.

"What is being proposed will hopefully retain the jobs...important to the community and important to the people who work (at the mine)," he said.

Assistant Finance Minister and Nanango MP Deb Frecklington said in February 2012 - a month before the election - she had successfully lobbied the LNP to "not support the proposal for Acland stage three that would see the expansion of the open-cut coal mine digging up strategic cropping land".

"We will protect farm communities from being dug up from mining," she said at the time.

Mr Hopper said he felt he had "no choice" but to leave the LNP after the

Government reconsidered the expansion.

"It was a blatant lie and deception to the utmost," he said.

"I would like to see Acland go back to what it was and stage three abandoned altogether."

New Hope Group still plans to produce 7.5 million tonnes of coal per year after the expansion, down from its initial estimate of 10 million tonnes.

Deputy Premier Jeff Seeney, pictured during a Surat Basin visit last year, says the State Government's support of the revised stage three expansion of New Acland coal mine is not broken political promise.

Energy giant New Hope Group is aiming for an $896 million expansion of its New Acland coal mine, despite strong objections from community groups.

New Hope Group is aiming to extract 7.5 million tonnes of coal per year after the stage three expansion of its New Acland mine.

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IN THE NEWS

WILKE CREEK MINE UPDATE

WDRC REACHES OUT TO EMPLOY SACKED WILKE WORKERS HOPE FOR AXED WORKERS

T

he mineral reserves and onsite infrastructure at Wilkie Creek coal mine are on the market as Peabody Energy continues the reclamation phase of the embattled facility's closure.

About 200 jobs were lost late last year when the US-based energy giant announced it was winding up operations at the mine on the Western Downs.

At the time, Peabody Energy president Charles Meintjes said in a statement that the closure was due to a "strategic review".

While it is not known what sale price Peabody Energy is hoping to realise for the mine or exactly how many workers remain on site, a spokesperson told Surat Basin News a "core team" was overseeing the shutdown of equipment and reclamation.

"A core team of employees will remain at the mine to ensure that demobilisation of equipment and rehabilitation targets are

met," the spokesperson said.

"Good progress has been made with reclamation throughout 2013 and activities at the mine are now currently focused on reclamation.

"The mine's reserves and on site infrastructure remain for sale."

Since the closure of the mine, axed employees aiming to continue living and working in the region have been thrown lifelines by local businesses, as well as Western Downs Regional Council.

About 60 former Wilkie Creek miners have accepted roles at other Peabody Energy sites, while the council and Dalby-based resources and infrastructure services company Ostwald Bros both held information sessions outlining possible employment opportunities.

Ostwald Bros chief executive officer Brendan Ostwald said Peabody Energy had invited Ostwald Bros to meet with the workers.

"This is a difficult time for the coal workers and their families, and Ostwald Bros will work with Peabody Energy to do all we can to help those affected by the closure of the Wilkie Creek coal mine," he said.

"We are gearing up for major projects in 2014 and we need more people to join us (and) we hope to be able to find a place for the coal workers within our company."

The Peabody Energy spokesperson said employees who had not taken up other roles within the company had been made redundant.

"We have worked closely with the Wilkie Creek workforce to identify opportunities for redeployment of our affected employees to other Peabody operations," the spokesperson said.

"All those who employees who did not want to transfer or who were unsuccessful in securing alternative employment were made redundant."

AS JOBS are slashed across the Western Downs, one Wilkie Creek worker is confident about the future.

The employee, who asked not to be named, said he was currently weighing up his options before finishing at the mine. "There are a lot of opportunities," he said. "When one door closes another always opens."

The Western Downs Regional Council held a seminar for sacked workers looking to enter the council workforce. Former employees of Wilkie Creek and Arrow Energy were invited to attend. People, organisation and economic development executive manager John Gilroy said the council could utilise the skills for both the hospitality and energy sectors. "If people were interested in entering local government, they would be very competitive," Mr Gilroy said.

Mr Gilroy said many of the workers interested in council jobs were longterm residents of the area and reluctant to shift their families. "I would like to think these people would get snapped up pretty quickly," he said. "The skill sets from the employees is very different - there would be some crossover in admin roles." He said the council could offer stability over the high pay cheques in the energy sector. "We can't compete with remuneration, but we can offer a balanced lifestyle," Mr Gilroy said.

"The energy industry is influenced by external factors." The council has seen considerably more applicants for positions in the past 12 months.

"Twelve months ago we really struggled with labourers and plant operators," Mr Gilroy said. "We're starting to see them come back, and we hope they're here to stay." Mr Gilroy said he believed the diverse workforce of the council resulted in plenty of opportunities across multiple industries. "If they aren't there now, they will certainly arise," he said.

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OPINIONS

DISCUSSION PAPER FIRST STEP TO

$100 MILLION REGIONAL MOBILE COVERAGE PROGRAM AS SOON as a plane taxis to a stop at Roma Airport, most passengers dive a hand into a pocket or handbag until their fingers find their mobile phone.

Then, it's a flurry of activity as fingers dart across the mobile phone's keypad to hastily make a phone call, send a text message or check Facebook.

If you've had a stumble at the starting block and you were slow to retrieve your phone from the dark depths of your pocket, there's that disappointed click of the tongue as you wait for adequate reception.

The Surat Basin has been at the forefront of unprecedented growth as a result of the mining industry and, for those of us on the ground, we can tell when a plane lands in Roma.

This is because we also have trouble picking up mobile phone reception because this sharp increase of activity clogs our network.

The Liberal National Party Coalition is honouring our election commitment to invest $100 million to improve mobile phone coverage, starting from communities with the least mobile phone coverage.

Your feedback is needed as the Government seeks information to help structure the regional mobile coverage program - the first step towards improved mobile coverage in the electorate.

This discussion paper is an opportunity for Maranoa residents to provide input and to help make sure the electorate receives its fair share of funding.

Discussion paper submissions need to be lodged before 5pm on February 28.

I have long-fought for better communication outcomes and infrastructure in the bush and my advocacy is represented in the Coalition's Mobile Network Expansion Project and Mobile Black Spot Project.

At 731,297 square kilometres, Maranoa is larger than some European countries and the electorate will benefit from the Coalition's mobile phone projects.

There are numerous regional and remote communities that do not have access to adequate mobile phone coverage and lives

COMMENT Bruce Scott MP Federal Member for Maranoa

depend on such coverage in emergencies, so expanding that coverage has clear benefits to public safety, as well as to the productive capacity of regional communities.

The funding has two elements: the $80 million Mobile Network Expansion Project will improve mobile coverage along major transport routes, in small communities and Member for Warrego and keen flyer Howard Hobbs says deregulating the Brisbane-Roma-Charleville in areas that are prone to experiencing route would have a detrimental impact on residents in the west. natural disasters, while the $20 million Mobile Black Spot Project will improve mobile coverage in locations with unique coverage problems.

REGULATION WILL PROVIDE RELIABLE RURAL SERVICE

COMMENT Howard Hobbs MP Member for Warrego

A

s many of you know, I fly around my electorate and take a very keen interest in anything aviationrelated in this region and across the

state.

Recently, the State Government has announced that the airline route BrisbaneRoma-Charleville will remain regulated.

Currently, there are nine return flights from Brisbane to Charleville and more than 40 weekly return flights between Brisbane and Roma.

To further cater for the resources sector, Skytrans is also operating a Toowoomba to Roma return service and I welcome their participation in the Surat Basin region.

The resources sector has dramatically increased the flights in and out of Roma.

I understand the calls for other operators to utilise this airport - which they can do, as long as it is not on as part of the Brisbane-RomaIOR Petroleum Pty Ltd 100% Australian Owned & operated Charleville route.

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in Charleville would drop back from the current nine return flights per week to four or less per week, and there was no guarantee of pressurised aircraft or the type of aircraft that would be used.

We currently have a situation where the Surat Basin resources sector has provided a massive boost in airline services to the Roma community and, managed correctly with State Government regulation, it will provide a good service to the Charleville community with minimal taxpayer subsidy.

Now that the regulation decision has been made by the State Government, it now seeks contracts from the airlines and makes a decision on which operator will operate the Brisbane-Roma-Charleville route, as well as the other regulated and subsidised routes.

Currently, this is Qantas Link, however, there is no guarantee that any existing operator will continue as the process is competitive.

I understand that many people believe that competition brings out the best in many instances.

Unfortunately, when a full analysis was done on deregulating the Brisbane-RomaCharleville route, it would have cost the taxpayer millions more and provided a less of a service to those further out west in Charleville.

Therefore, full competition was not an acceptable option.

Regulation is the best outcome at the present time for the residents of the Warrego electorate - it will deliver a reliable service and continue to provide cheaper fares.

OPINIONS

QUESTION OVER AIRPORT SUSTAINABILITY

COOL HEADS NEEDED FOR SOLUTION

T

he Department of Transport surprised a few people - including myself - when it released its longawaited report on regulated air routes last week.

The talk around the traps signalled big changes and potentially a complete halt to subsidised transport.

In the end, though, only three services all of them in north Queensland - will be opened to competition, while the other seven will remain largely unchanged.

The debate around my council table was the benefits that arise from competitive pricing through the likes of Virgin Australia entering the Roma market are balanced by the need to keep regular flights in place, particularly to the important remote centres like Charleville and the other south-western towns.

Roma Airport, of course, is a tremendous council facility and has become a great strategic hub and access point for the resource sector into the Surat Basin.

In the last calendar, year we serviced over 204,000 passengers and this year's figures are tracking higher still.

In addition, Skytrans is now flying direct from Toowoomba and other players are considering further services as well.

The next step for the Department of Transport will be to put the lucrative Brisbane-Roma-Charleville service out to tender, and that is where the almost predatory competition in Australian air space will become clear, at least to those who will ultimately make the decision.

SMK

Without a doubt, QantasLink has provided a great service into Roma, but the likes of Virgin Australia may well field very competitive bids and change the colour of the airspace above our town.

I intend to ask Transport Minister Scott Emerson to make evidence of low base fares for local air travellers a strong consideration when assessing these tenders.

That might make the tender process a little more convoluted; however, evidence of low fares into comparable ports should be a consideration.

While the Minister's announcement clarified things significantly, there are some threats to the future of air traffic in the Surat Basin and beyond.

The long-term sustainability of groups building new airports and infrastructure on an ad hoc basis must be challenged.

While the Wellcamp Airport facility is clearly a concept at a whole different level to any other regional facility in Queensland, I am more troubled by the development of smaller facilities such as the Miles Airport.

Origin Energy has invested something like $20m into the Miles strip so it can become their major entry point.

However, both they and the Western Downs Regional Council will find themselves under pressure from the public to develop that into a passenger route, despite the ultimate concerns about its sustainability.

Origin's offer to start accepting their

clients as passengers on their chartered flights is just the tip of the iceberg, and I understand QantasLink has been asked to consider a passenger route.

We all know that public expectation can sometimes be a powerful driver of bad decisions.

The last thing we need is to build up the hopes of every town in the Surat Basin that they, too, can have direct passenger services to Brisbane.

I suspect if cool heads prevail, we will have two major airports in the Surat Basin in 10 years.

COMMENT Cr Robert Loughnan Mayor, Maranoa Regional Council

If they do not, we will have as many as seven airports all competing for the same dwindling numbers of passengers and all under increasingly large financial pressure.

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OPINIONS

WATER CONTINUES TO BE UPPERMOST IN MINDS

COMMENT Cr Ray Brown

Mayor, Western Downs Regional Council

W

ater is a very sensitive issue on the Western Downs as we work to develop our infrastructure to reduce our reliance on groundwater supplies.

At the moment, when resources sector workers' camps are built on tenements, the council has no visibility of the activity.

This means it's difficult for us to take into consideration any impacts the workers' camps will have on town infrastructure networks so as to monitor and supply adequate potable water.

For example, once a Western Downs town reaches Level 4 water restrictions - such as what Bell, Kogan and Tara are currently on - the use of water standpipes to truck water to workers 'camps stops.

With Brigalow, Chinchilla and Jandowae currently on Level 3, and the hot and dry weather continuing, there is a real possibility more towns will reach Level 4 soon.

As a Gasfields Commissioner, I am advocating for the State Government to give local governments more visibility and influence over where workers' camps on tenements are built, so that resources sector development can be supported in harmony with the existing needs of

townships.

In the meantime, we're in constant discussions with all proponents of workers' camps to monitor the water situation.

Our thoughts continue to be with farmers across our region as we wait for significant rainfall this summer.

Rural producers face real problems with feeding their livestock and I ask that all resources sector workers are mindful of the stress on landowners and their livestock.

There have been recent instances where livestock have followed any vehicle entering a property believing they're about to be fed, but, when they're not fed, their stress levels increase dramatically.

We've been in discussions with the major resource companies across the region to draw their attention to this issue so that if any vehicle needs to enter rural properties, it will be co-ordinated with landholders during this ongoing drought.

We really do live in a diverse and challenging region, where we can swing from flood to drought in a very short period of time.

I ask all of you to keep our primary producers in your thoughts as we endure WATER WARY: Western Downs Regional Council Mayor Ray Brown is advocating for more local the current weather conditions. government visibility when it comes to workers' camps and water. Photo David Vaney

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OPINIONS

LEVERAGING GAS TO ‘ECONOMY PROOF’ OUR REGIONAL COMMUNITIES COMMENT Michael Roche John Cotter Gasfields Commission Chairman

Chief Executive Queensland Resources Council

COMMENT

A

s someone who has lived and worked in regional Queensland all my life, I have witnessed firsthand the decline of many rural towns and communities.

That rural decline has been occurring over many years due to a wide range of factors, from declining terms of trade for the agricultural sector, lack of jobs and population drift, to limited services and opportunities in these regional centres.

However, as has been demonstrated in the Surat Basin over the past decade, economic diversification through the addition of new industries such as the onshore gas sector can help breathe new life into these same rural towns and communities.

It's not about replacing or favouring one new industry over an existing industry like agriculture, but rather adding and balancing the needs of all industries to ensure a stronger and more resilient local economy.

Those new industries bring new investment and we need to ensure that it is directed in the right way to deliver genuine long-term benefits for these communities and the wider region.

In the same way we talk about trying to drought-proof agriculture, we also need to take advantage of this new investment to help economy-proof our rural and regional communities.

The challenge is often to get individual resource companies, councils and communities to look beyond the immediate project footprint and construction phase. We need to think more long-term and collectively when planning these investments in critical infrastructure such as roads, water and telecommunications.

Better-planned roads, water and telecommunications have the potential to

F

not only benefit the resource projects and existing industries like agriculture and regional tourism, but can open the way for attracting whole new industries and jobs further adding to the diversification of the Surat Basin.

Encouraging a more holistic and collaborative approach to infrastructure investment planning was the key focus of a special workshop hosted earlier this month by the GasFields Commission, with representatives from the Surat Basin including gas industry, regional councils, Toowoomba and Surat Basin Enterprise and the State Government.

The GasFields Commission will continue to use these types of forums - including its GasFields Community Leaders' Council South meeting in Chinchilla next month - to bring relevant parties together to ensure they understand and address these important legacy issues for regional communities.

ebruary’s public hearing into the Queensland Regional Planning Interests Bill was a welcome opportunity for the Queensland Resources Council to contribute to discussions surrounding the future growth of both agriculture and resources.

In our view, the current bill is focused on the cost to agriculture of resource developments and not on potential benefits such as new water and transport infrastructure.

QRC research shows consistently that Queenslanders expect agriculture and resources to co-exist as the primary drivers of regional economic activity.

The statewide research also reveals that, despite understandable public support for farmers, it is widely acknowledged that agriculture alone is insufficient to drive regional growth.

Regional communities see co-existence as an important force for balancing the activity cycles that affect both industries.

However, the Government's commendable policy objective of trying to deliver productive co-existence risks being undone by delivery through a complex system of new planning zones.

Risking resources jobs while not contributing to the Government's goal of increasing food production is not coexistence - and certainly not in Queensland's interests.

The resources sector accepts that, in some

areas, the environment and agriculture should take precedence.

However, we say that precedence must be based on an assessment of impacts and one that measures the extent to which activities are compatible.

What we don't yet see in the bill is a clear means to weigh up the cost and benefits.

We must avoid falling into the trap of believing that resources companies can just "find somewhere else" in Queensland to operate.

QRC is not opposed to improvements to regional planning but believes some revisions are necessary to produce a superior outcome for Queensland.

Guide for FIFO workers THE QRC has released a new guide to help long-distance commuters working in mining and gas operations.

Fly-in, fly-out and drive-in, drive-out practices are integral to attracting and retaining skilled workers but we recognise that the lifestyle does come with some challenges for families.

The QRC guide provides valuable advice for people already working FIFO or DIDO rosters, or those considering them.

As other industries are discovering, you can't always expect families - particularly where dual careers are in motion - to pack up and move to remote or regional centres.

The guide can be downloaded from www.qrc.org.au.

THE FACTS Surat Basin News has built a reputation on the delivery information to the readers, consumers and companies of this region Surat Basin News is produced with local knowledge and experience gained through living and working here Phone Laurell 07 46627368

71 Heeney Street, Chinchilla

Chinchilla’s local property management specialists Phone 07 4662 7459 or email info@chinchillarealestate.net.au

DOWN TO BUSINESS

DOWN TO

BUSINESS

CHINCHILLA BASE TO EXPAND

NEW LOGISTICS HUB QGC has continued its investment in the Chinchilla region with the purchase of a huge site for its new logistics hub in Surat Basin Industrial Park.

Surat Basin Property Group chief executive officer Jason van Hooft said the decision by QGC to invest heavily in Chinchilla and set about developing a hub was a major vote of confidence in the area.

"The site they have purchased is at the entry to the industrial estate and involves three lots with a total area of approximately two hectares," he said.

"The site is suitable for a large industrial building, and storage facilities."

Mr van Hooft said the site, which industry insiders tipped to have sold for

about $2 million, would provide a base from which QGC would service all its Surat Basin gas operations.

Surat Basin Real Estate selling agent Bruce Holmes, who clinched the deal, said he expected to see more large companies following QGC's lead.

"Inquiry for industrial land and tenantready industrial facilities has increased considerably over the past six months, and we expect that momentum to continue in 2014," he said.

"The level of inquiries is at an all-time high and being matched by the number of transactions taking place, with four settlements and two contracts issued in the December quarter alone.

"Families will relocate to the town for

the jobs on offer and that will add to the social and economic fabric of the region."

The purchase of the site by QGC is the latest in a line of transactions involving leading energy company divisions and service providers in recent months.

These include QGC Pipeline, Schlumberger, Osmac and EnerMech.

Industrial land is also at a premium in Miles, where developer Son Ngo has been granted development approval for a large industrial park on the southern side of town.

Approval was granted for 12 industrial lots - ranging from 4000 to 8000 square metres - in McNulty Street.

Mr Ngo said the project was still in planning stages.

DOWN TO BUSINESS

PROFILE BRYAN PAYNE

COMMUNITY-MINDED ENGINEER WATCHES BASIN GROW R oma local Bryan Payne is the sort of selfless citizen that people aspire to be like and has been working for Surat Basin engineering company Brandon and Associates since 1977, well before the resources boom took the region by storm.

Bryan is currently a director and senior civil engineer, in addition to being the president of the Roma branch of Rotary.

He was Brandon and Associates' first and sole employee when he started in Roma 35 years ago after working for the company in Chinchilla.

"Some of my early stuff was road works and the augmentation of the water treatment plants in Chinchilla and Miles and from there it has been anything that becomes available," he said.

"I'll have a go at most things and I was the first person in our Roma office.

"We used to run Roma as a visiting

service from Chinchilla and then I moved to Roma in 1979 as the sole employee here, in an office at the council chambers.

"In Roma now, we have 10 people in Brandon and Associates and 30 based out of the soil laboratory."

Bryan has been P&C president at the Roma State College junior and middle schools and has been heavily involved in Rotary for a decade.

"I just like the way that service clubs‌work pretty selflessly for the community in one way or another," he said.

"There is also good camaraderie and through the Rotary club, I've became good friends with people I might not have had as much contact with if I hadn't joined.

"In my spare time, I tend to go home and sit in front of the television with a nice cold drink."

Well-known Roma identity Bryan Payne is an active Rotary member and says he has seen the town go from strength to strength on the back of the resources boom.

INAUGURAL WORKSHOP OF SOUTHERN QUEENSLAND LAND REHABILITATION GROUP

T

he first SQLRG workshop was held in Toowoomba during September 2013, with 92 people attending.

The workshop comprised of one day of presentations and workshops to discuss best practice rehabilitation of disturbed land, based around the theme Getting the Basics Right. The second day involved a field trip to Commodore coal mine and Millmerran power station, where a practical application of rehabilitation was presented and discussed.

SQLRG had its origins in the highly successful Central Queensland Mine Rehabilitation Group, which has been meeting for over 20 years to discuss rehabilitation practices and experiences on mine sites in central Queensland. At the last CQMRG workshop in 2013, the idea of starting a similar group in southern Queensland was raised.

The QLRG is a volunteer network promoting best practice rehabilitation of disturbed land in southern Queensland.

Membership and participation is sought from a wide variety of people, including environmental managers/officers, industry

representatives, government officers, conservation volunteers and specialist consultants. The group in southern Queensland includes representation from coal seam gas, mining, road, rail and power line infrastructure groups.

Workshops will be held twice yearly to offer a combination of presentation, discussion forums, and practical field trips to demonstrate actual rehabilitation practices. There will be opportunities during the workshops for brainstorming and group deliberation of issues facing environmental managers in the region. It is expected that the combined experiences of many will be able to assist in finding solutions for specific situations and difficulties regarding rehabilitation.

Next workshop 13 - 14 March 2014 Theme Rehabilitation Challenges and Goals For further information, please contact: Rob Loch: lochr@landloch.com.au Colin Schiller: colin.schiller@bigpond.com Louisa Nicolson:icolson@landloch.com.au 07 4613 1825

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0.045

0.75

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17.60

0.040

0.70

.010

17.20

0.035

0.65

.0095

16.80

0.030

0.60

.009

16.40

0.025

0.55

.0085

16.00

31 Jan

7 Feb

14 Feb 21 Feb

Share price listed was accurate at close of business on the days listed in 2014

31 Jan

7 Feb

31 Jan

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Share price listed was accurate at close of business on the days listed in 2014

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2014 FIRST YEAR OF LNG I

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What if there was a genuine heavyweight equipment rental alternative in the Surat Basin?

7 Feb

t will be the Year of First LNG in 2014 but QGC teams have already hit the ground running with several milestones early this year.

Updating progress on the expansion of its natural gas production in the Surat Basin, QGC has reported that QCLNG projects around Dalby are gathering momentum, which is critical to production of first LNG. The Ruby Jo Central Processing Plant was open for day and night shifts throughout Christmas, with this major piece of infrastructure now approaching mechanical completion and commissioning activities are on track.

In the Miles-Chinchilla area, hydrotesting has started at the Matilda-John Field compression station.

Helicopters are also stringing overhead 132kilovolt electrical lines that will connect Bellevue Central Processing Plant to Condamine Power Station.

At QCLNG's northern filed compression stations near Wandoan, all four compressors have been installed at the Cam site, piling and access road works have started at the Ross site and an 18megavolt transformer has been installed at the Kathleen site.

In the gas fields, QGC drilled 205 wells between October and December last year, taking the total number of wells in 2013 to 769 against a planned 631.

The pipeline team celebrated another key milestone on December 16 last year when first gas was piped from the Surat Basin gas fields to the LNG plant on Curtis Island.

Arrival of first gas to the island enables commissioning to begin on the first of two LNG production units, known as trains, which are being developed as part of the project.

Construction of the LNG plant and other key facilities is also well underway, keeping the project on track to deliver first LNG this year.

QGC's investment in construction, exploration and operations since January 2010 has now topped $19.4 billion.

Of that amount, $16.3 billion - or 84 percent has been invested with Australian firms.

About $915 million has been invested on the Western Downs and nearly $920 million in Gladstone.

QGC and its major contractors are currently employing 14,500 people on the project.

DOWN TO BUSINESS Origin - ASX Code: ORG

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14.80

14.20

1.20

3.60

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14.00

1.10

3.55

14.40

13.80

1.00

3.50

14.20

13.60

0.90

3.45

14.00

13.40

0.80

3.40

31 Jan

7 Feb

31 Jan

14 Feb 21 Feb

Share price listed was accurate at close of business on the days listed in 2014

7 Feb

31 Jan

14 Feb 21 Feb

Share price listed was accurate at close of business on the days listed in 2014

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31 Jan

7 Feb

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Share price listed was accurate at close of business on the days listed in 2014

Share price listed was accurate at close of business on the days listed in 2014

WORKSHOP IN TOOWOOMBA

INLAND RAIL TO BENEFIT AGRICULTURE A

Melbourne to Brisbane inland rail line would deliver huge benefits to the agricultural sector in the Surat Basin, according to industry experts.

The significance of the massive project and its potential impact on the rural sector was in focus at Toowoomba and Surat Basin Enterprise's Inland Rail Workshop.

Agriculture and agribusiness representatives from Toowoomba and around the region joined Port of Brisbane chief executive officer Russell Smith and John Anderson, chair of the implementation group put together to drive the project forward, at the event held in Toowoomba on February 13.

The outcome-orientated workshop gave an update on the progress of phase one of the project to date and sought industry feedback regarding the opportunities and

challenges for rail to support the future needs of industry.

The project is set to deliver a rail line which will create a new future for freight movement in Australia's eastern states, from Melbourne to the Port of Brisbane through New South Wales.

Mr Anderson highlighted his particular desire to see significant opportunities and doors opened for the agriculture industry, through the construction of the muchneeded infrastructure.

"I'm very passionate that this can make a significant contribution to agriculture," he said.

"The task that the implementation group has been given is to firstly lock in the last detail of the corridor (and) secondly, to prioritise the projects, so to look at the geographic sections that are going to give the best economic returns, and, thirdly, to

Business and industry identities listen to the inland rail project outline at the Toowoomba and Surat Basin Enterprise-hosted workshop.

John Anderson shares his vision for the inland rail project.

consult with government and stakeholders.

"We are hoping this calendar year to be able to put a blueprint to Commonwealth Government. "If we get it right, I hope they can move quickly and make this a reality.

"We want to see action this term of government."

TSBE chief executive officer Shane Charles said he was pleased TSBE was able to host an event where significant stakeholders could gain a greater understanding of a potentially gamechanging piece of infrastructure.

"It's apparent that Minister for Infrastructure and Regional Development

Warren Truss has made it quite clear that the implementation group, led by John Anderson, is to make a recommendation to government this financial year with work to commence, in one form or another, during the Abbott Government," he said.

"The sentiment from this workshop, and from Mr Anderson, was that Toowoomba and the south-western region are the most significance areas to ensure viability of the inland rail project.

"This project is vitally important to Toowoomba and indeed south-west Queensland, to further unlocking economic potential, particularly for agriculture." www.facebook.com/SuratBasinExpo

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USE IT OR LOSE IT

M

aranoa Regional Council Mayor Rob Loughnan says Roma residents and businesses need to start utilising the recently-launched Skytrans route to Toowoomba or risk losing the service.

In a boost for travel in the Surat Basin, flights between the Garden City and Roma began on January 13 but Councillor Loughnan said he did not believe the community had put its full support behind the Cairns-based regional airline.

"I've got some concerns about it," he told Surat Basin News.

"Certainly, I don't think the uptake has been as good as it has been (and) I think people just haven't woken up to fact the service is there.

"It's a case of use it or lose it."

While some travellers have opted to fly out of Brisbane Airport on the State Government-regulated

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route with QantasLink, Cr Loughnan said government departments and gas companies needed to support the Skytrans service from Toowoomba if it was to survive in a cutthroat market.

Skytrans also offers flights between Toowoomba and Sydney, and Cr Loughnan said he believed the "direct linkage" from the New South Wales capital to Roma was the key.

"Our politicians that have to come out here from Sydney, or go down there, should be using it and government departments should be using it, too," he said.

"It's not sustainable without numbers on there (and) not just numbers at the (discounted local level)…we need the resources sector and government services to use it at the higher fair."

Skytrans managing director Simon Wild was unable to be contacted

for comment before Surat Basin News went to press.

Maranoa Regional Council Mayor Rob Loughlan

INDUSTRY BRIEF TOOWOOMBA FIRM SNARES SANTOS DEAL CONSTRUCTION contractor McNab has secured a three-year oil and gas industry contract with Santos.

The Toowoomba-based firm was awarded a contract for design, construction and maintenance works on Santos' building infrastructure throughout Queensland.

McNab managing director Michael McNab said he was pleased to secure another long-term partnership with the

company.

"We have been working on Santos projects in the Surat Basin for a number of years, and are thrilled

to support Santos as they move into the operational phase of their GLNG project," he said.

Toowoomba-based McNab will support Santos for another three years after finalising a contract on the gas company's Queensland building infrastructure last month. Photo Contributed

THIS WEEK

I

INSIGHT INTO AUSTRALIAN EVENT BOSS

f there is one thing Australian Events director Bob Carroll knows, it is how to put on a show-stopping celebration While Mr Carroll is best-known as the exuberant public face of myriad shows and expos across the country, there is more to the 58-year-old's story than meets the eye.

Surat Basin News caught up with Mr Carroll for a chat as he and his team were preparing for next month's Central Queensland Industry and Resources Expo, the prelude to the 2014 Surat Basin Energy and Mining Expo, which will come to life in Toowoomba later this year.

How did your journey with Australian Events begin?

In a previous life, I was managing a travel company with Channel Nine in Brisbane called Starworld Travel. I was headhunted to take over and build up a fledgling travel office in Toowoomba called Darling Downs Travel. To increase my customer base and develop stronger relationships with my suppliers, I created a travel expo. I used that event to promote my own business and showcase the variety of holidays and holiday destinations, and I ran that event in conjunction with the annual Carnival of Flowers. It was highly successful and pretty soon, people started asking me to help run other events, so off I went. I eventually left the travel industry and concentrated on running all sorts of business and consumer events and expos all over Australia.

Given how much effort goes into planning an event, what keeps you going?

I have a wonderfully talented group of people around me and they make it easier and keep me grounded. I firmly believe that exhibiting at a good event or expo is still one of

the most cost-effective marketing strategies a business can have. Events are challenging and the key is to knock out as many variables as you can before you open the doors and therein lies the challenge, and therein lies the excitement.

Are any of your family members involved in the business?

My wife, Gai, also works in the company. She works with our sales team mostly and is very good at what she does. I have five children, all of whom have worked at some stage in the business on a part-time, casual or full-time basis.

How much has changed in the Surat Basin in the past decade?

I could see it coming, so it does not surprise me how quickly things can happen, because we have been running events for a long time in other boom areas like Mackay and Rockhampton. I witnessed the changes in those communities when the boom hit 15 years ago, but they were not prepared.

Toowoomba, Maranoa and the Western Downs are far better prepared, and I think very progressive. They are keen to learn from mistakes in other areas and they have a mutual respect for each other, and communicate regularly with each other.

What do you see for the future of the Surat Basin?

Agriculture helped build and sustain this region, and I think when the mining is all done and dusted,

agriculture will still be there, provided the government keeps the balance and does not allow reckless development. It is by far the most exciting region in Australia from the point that we are so close to everything.

We have a good depth of industry with a highly-skilled workforce.

With the energy and mining boom now upon us, plus all of this amazing

infrastructure development, we certainly are the flavour of the decade.

Who is a business leader you admire and why?

I don't have any one business leader that stands out above everyone else. I admire people who have a vision and then have the determination and commitment to make that a reality. Locally, we have people like Clive Berghofer, who is a humble man, but such a committed man and a diligent worker. He gets his hands in the dirt and is a formidable businessman. The Wagners, too, have achieved a great deal and there are plenty others who fly under the radar. You can learn from them all and that is what I try to do.

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BUILDING THE BASIN

BUILDING THE

BASIN

MILES AHEAD WITH GROWTH

T

he town of Miles is experiencing an accommodation boom as investors rush to meet the demands of a fast-paced resource industry in the Surat Basin.

Hundreds of motel and workers village rooms are currently being constructed in Miles, while swathes of residential blocks are being prepared and sold for new housing estates.

As well as the new accommodation, Western Downs Regional Council is embarking on a $18 million water supply and sewerage infrastructure upgrade to cater for the increased population.

Deputy Mayor George Moore, who was born and bred in Miles, said the current activity represented

the biggest change in the shortest period of time in the town's history.

"For me, it's very exciting," Cr Moore, who presides over the council's water services portfolio, said.

"There has never been a more exciting time in council due to the fact that our towns across the region are actually growing."

Cr Moore said motels in his hometown had been running at capacity for years, leading to the current situation where three motels were under construction and another was on the way after receiving council development approval.

"The benefit that I see with motels and workers' camps being close to town is that the workers are

buying supplies in town," Cr Moore said.

"They're going to our pubs and spending money locally."

With the town's current population of 1800 set to increase, the council will upgrade its water supply and sewage treatment capacity to initially cater for 2500 people by the end of this year and then further to 5000 people when required.

Miles and District Chamber of Commerce president John Hoffmann said he hoped the new supply of accommodation would help to bring down rents down in Miles as supply begins to finally catch up with demand.

MOTEL AND TRUCK STOP TEEOFF The motel boom looks set to continue with another 46-room motel approved by the Western Downs Regional Council.

The motel would overlook the Miles Golf Course and would be situated next to a large truck stop and food outlet, which was also approved by council.

Family developers from the Condamine area were behind the project and construction was expected to start early this year.

AMBITIOUS PROJECT PUSHES FORWARD Developers behind the sprawling accommodation facility planned for Laycock Road are determined to see their project go ahead.

Landtrak Corporation initially hoped to build a 3000-bed village but the council approved only stages one and two - about 1300 beds.

A Landtrak Corporation spokesman said the company was appealing the decision and was now in the process of mediation to avoid "unnecessary cost to the ratepayer" in the Planning and Environmental Court.

VILLAGE WAITS ON APPROVAL A development application is before council for a 650-person capacity accommodation village just north of Akers Gully on Racecourse Road.

The village would be an upmarket, resort-style facility with fully-landscaped grounds.

The accommodation would include single, double, and triple room singlestorey bungalows and would be open to the general public.

The complex would also include a 25metre pool, a gymnasium, and a restaurant.

WATTLE PARK GROWS AND GROWS THE next stages of the Kerwick family's Wattle Park Estate, off Colamba Street, should be released by the end of March.

Stages two and three feature 30 blocks, ranging from 740 square metres to 1200sqm.

The 12 blocks in stage one sold out and houses are now being constructed.

COLAMBA RISE IS ON THE UP COLAMBA Rise is a large estate planned for Colamba Street, neighbouring the new Wattle Park Estate.

The estate will feature 38 sites - 29 residential housing sites, eight duplex sites and one triplex site.

The developers have placed covenants on the estate to prevent future redevelopment of the existing approved densities.

Lot sizes range from 628sqm to 1103sqm.

MORE BLOCKS AT THE PINES THE Pines Estate on Hookswood Road is moving ahead with stage three - 36 blocks - and stage four - 42 blocks - now for sale.

The blocks range from 800sqm to 1100sqm.

Civil construction should begin in March or April and houses should be under construction by the end of 2014.

NEW INDUSTRIAL PARK Development approval has been given for 12 industrial lots in McNulty Street, with the smallest block being 4000sqm and the largest more than 8000sqm.

Developer Son Bac Ngo said while the engineering design process had already begun, the major project was still in planning stages.

PELHAM POCKET WORK UNDER WAY CIVIL construction works have started on a new housing development at the corner of Pelham and Hookswood Roads, near the old cemetery in Miles.

Kerwick's Earthworks commenced work on the 24-lot Sunshine Coast developer's project early in November and stage one lots are expected to be completed by March.

BUILDING THE BASIN

DEVELOPMENT TO MEET DEMAND bookings.

86 MURILLA STREET 26 self-contained, threebedroom units Cost: Almost $4m Completion: Complete MARTIN Fiebig moved his Gold Coast building business to the Western Downs looking for a new opportunity and it wasn't long before he found it.

The experienced builder based himself in Chinchilla more than a year ago, but his current major project is a new high-end accommodation complex in Miles.

Mr Fiebig's company, Martin Fiebig Constructions, will soon finish the Murilla Street complex for a group of three Gold Coast-based investors.

The project, worth almost $4 million, features 26 selfcontained units, each with three bedrooms, ensuites and kitchenettes.

The development also features an 80-square metre commercial space and fully-landscaped grounds.

Tenants are expected to continue moving into the complex this month.

In a sign of the strong accommodation demand in Miles, all of its 26 rooms have already been booked for six months by Origin Energy.

SWAGSMAN MOTOR INN 1 Marian Street 48 rooms at full scale Cost: $3.5-$4m Completion: First stage (28 rooms) by April WHEN Robert Hinds started his carpentry apprenticeship in Miles 27

years ago, he never dreamed of the scale of the career he could build in his home town.

Mr Hinds is now riding the town's resources boom by building his own 4.5-star motel - the Swagsman Motor Inn - on the bank of picturesque Dogwood Creek.

The two-stage development is well under way, with the first stage 28 rooms - expected to be finished by April.

A further 20 rooms will be built in the second stage.

The $4 million motel will also feature a large pool and the two-storey restaurant, Swags, overlooking the creek.

"It's in a position you can't really beat in town," Mr Hinds said.

The experienced builder is drawing on local tradesmen, as well as some from as far as Brisbane and Gold Coast, to complete the ambitious project.

"I never really expected

Miles to get this big," Mr Hinds said.

"But I am pretty confident of where the town is heading."

In a nod to Mr Hinds' confidence, a major company has already enquired about booking out all motel rooms for its first six months.

THE EASTWOOD Lot 10, McNulty Street 200 rooms Cost: $17m Complete DALBY-based construction giants Ostwald Bros have jumped on the Miles accommodation bandwagon in a big way with a sprawling 200-room complex.

The Eastwood, a $17 million project, will be operated by Ostwald Facilities and Accommodation on behalf of The Eastwood Joint Venture, which is a partnership with Miles developer and Foodworks owner Son Bac Ngo.

The 27,000-square metre facility will boast a pool and spa, tennis court, recreation room with pool table and darts board, a gymnasium and an undercover barbecue area.

The Eastwood's 200 rooms, each with a king single bed, flat screen television, internet access, refrigerator and room service, will be open to the general public, as well as industry.

THE ROYAL Cnr McNulty and Dawson Streets 24 rooms Cost: Undisclosed Completion: April 30, 2014 THE most recent starter off the accommodation blocks in Miles is a 24room motel being built by construction giants FK Gardner and Sons.

The Royal, located at the corner of McNulty and Dawson Streets, is being built by FKG for McNulty Dawson Pty Ltd, a developer from Dalby.

Construction of the project began on November 11, 2013 and is due for completion by April 30.

"The developer chose Miles due to the accommodation shortfall in this region, which has resulted from the local mining and gas operations," an FKG spokesperson said.

Included in the motel's 24 rooms will be two disabled units, a dining room with commercial kitchen and a guest laundry.

At the peak period of the project, it was expected that up to 30 workers will be required onsite.

CH

U

WESTERN DOWNS MOTOR INN 113-119 Murilla Street 35 rooms at full scale Cost: $4m Completion: First stage (23 rooms) by March CONSTRUCTION of a large and very long-awaited motel in the heart of Miles on Murilla Street is finally on the home stretch.

Starting in 2008, the project has kept locals guessing for years.

But, after a flurry of activity during the past 12 months, builder and developer Darryl McManus said he hoped the first stage - 23 rooms - of the Western Downs Motor Inn would be finished by next month.

The $4 million development will have 35 rooms upon completion of its second stage, which will involve the removal of a neighbouring house on the property.

The 4.5-star motel will also boast a restaurant and a separate upstairs bar, conference room, gymnasium, barbecue area and a pool and spa.

Mr McManus and his two business partners took over the project when they bought the land from a previous developer with the council development approval for the property already in place.

"We chose Miles because we liked the area," Mr McManus said.

"We knew what was going on with the resource sector, so we made the decision."

And that decision could well prove fruitful, with the developers already fielding inquiries for longterm, bulk accommodation

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BUILDING THE BASIN

LOCAL TEAM UNDERTAKES BIGGEST ROAD REHAB FOAM PROJECT IN AUSTRALIA

FKG's foam bitumen stabilisation project on the Gore Highway, valued at $70 million, is the biggest of its kind in the country.

I

n a demonstration of local business flexing its muscle on a large scale, FK Gardner and Sons, currently undertaking Gore Highway road rehabilitation works, has announced the $70 million foam bitumen stabilisation project is the largest of its kind in Australia.

Following the award of the project in December 2012, FKG, with a regional base in Roma, procured two new stabilisers, incorporated over seven million litres of bitumen and 6300 tonnes of lime to over 40 kilometres of rehabilitated pavement.

Situated on the Gore Highway between Toowoomba and Millmerran, the project is part of the critical road linkage between Brisbane and Melbourne which was damaged during the devastating 2011 and 2013 flood events.

The group is also at the forefront of the growing works in the Surat Basin,

including the Warrego Highway major recovery works, the LNG capacity upgrade project in five locations northeast of Roma and the Mitchell stormwater rehabilitation project.

This Gore Highway rehabilitation project is being delivered on behalf of the Department of Transport and Main Roads under the Natural Disaster Relief and Recovery Arrangements, a joint federal and state initiative.

Under NDRRA, the Federal Government provides 75 percent of the funding, with the remaining 25% coming from the State Government.

Murray Peacock, FKG area manager for Roma and the Darling Downs, said he believed the technology would provide "many benefits to the community".

"The foam stabilisation technology, used to rehabilitate the Gore Highway road asset, produces a flexible pavement which will provide improved resilience

during destructive weather patterns such as flooding," Mr Peacock explained.

"By implementing this technology, which is resistant to weakening, the management of extensive, significant cracking as experienced over many years on this road can be avoided.

"Foamed bitumen provides the asset with increased lifespan longevity, helping to reduce disruption to the local community in the long-term."

FKG project manager Grant Snelling said he believed the high safety standards and innovative safety processes implemented in the Gore Highway project had resulted in minimal safety incidents.

"Ensuring our core ethos of 'no injuries to anyone' was sustained throughout the project, we successfully implemented innovative safety measures and processes which allowed us to successfully deliver the project whilst managing the 4500vehicle-traffic-flow per day," he said.

Mr Peacock praised the local community for its patience during the project.

"This piece of infrastructure is imperative to local community logistics," he told Surat Basin News.

"We understood the importance of effectively communicating with the community on the temporary disruption to road flow, whilst communicating the great long-term benefit they would see in a more resilient road asset. "We endeavoured to provide a fast turnaround of the asset back to full public use, whilst ensuring safety standards were upheld and a quality product was produced."

The effective community collaboration seen throughout the project has contributed to the successful delivery and production of a resilient highway road asset that can withstand harsh weather events, which benefits the entire community.

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BUILDING THE BASIN

PREMIER EVENT HIGHLIGHTS GROWTH IN REGION

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2014 EXPO TO EXCEL IN JUNE

he Surat Basin Energy and Mining Expo - southern Queensland's premier resources event - is back for its fourth year in June and comes at a crucial time for the region, according to event director Bob Carroll.

Mr Carroll said the announcement of the $1.7 billion-dollar Toowoomba Range Bypass, a piece of infrastructure integral to the region's economic growth, came at a perfect time in the lead-up to the 2014 expo.

"The resources industry and business community understand that the bypass will have a significant impact on productivity and direct economic benefits for the area, so both business and

consumer confidence is high," he said.

"It's a fantastic time to be hosting the event and showcasing the dynamic projects underway, as well as proposed developments and all the latest trends."

The expo is designed to support the resources industry by providing an environment for businesses and visitors to network, market their products and services, and generate sales, leads and industry contacts.

The Toowoomba Showgrounds will come alive for the event, with record crowds tipped when the gates open.

In 2013, over 600 sites were occupied and the event generated more than $54 million worth of business.

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1. Councillor Bill Cahill from Toowoomba Regional Council, Bradley Neil from Herron Todd White and Neil Findlay from the Queensland Transport and Logistics Council.

2. Marlene Halter from Drake International, Scott Templeman from Toowoomba Regional Council, Kate Miguel from Drake International and Peter Marks from Ray White Commercial Toowoomba.

3. Richard Moore from RPD Pty Ltd, Peter Schriek from Master Builders Downs and Western, and Brett Collins Craig Warren from Moore Stephens.

4. Evan Horne from Engineering Training Australia and Brian White from Land Surveys. Photos LucyRC Photography

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6. Heather Allen from Endeavour Foundation, Jill Keen from Classic Recruitment and Barbara Gooch from Toowoomba Regional Council.

7. Stephen Osmond from Water Dynamics, Tanya Spark from ATI Australia, and Matt Knudson and Danny Brooker from JJ Richards.

8. Michael Parker from Queenscorp Insurance Services, Lauren Crampton from AMVL Migrations, and Bronte Neville from Queenscorp Insurance Services and Russell Neville from Queenscorp Insurance Services and TSBE board director Mark Crampton.

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THIESS DONATE PINE

he Chinchilla Men's Shed is on the way to building a bigger future after a donation of more than 300 lineal metres of pine.

The wood was donated by Thiess as part of the QCLNG project. When faced with the disposal of a large amount of timber used to support electrical equipment during transportation, site foreman Paul Thomas said he saw an opportunity to donate the timber back to the community, rather than throwing it out.

Thiess social performance advisor Tegan Plant said the donation demonstrated best-practice thinking on site.

"It is great that our site teams are getting involved in solving sustainability issues while at the same time, donating a reusable resource to a much-deserving community group," Miss Plant said.

"We are already looking at extending this practice across other sites to help recycle

waste products that may still hold value for others organisations, such as schools and community groups."

Chinchilla Men's Shed president Dave Howell said the timber provided would assist in creating new window frames for their shed, which is the hub of the group's operation.

"It's great that we won't have to source the timber and can get started straight away on these renovations and minor improvements," Mr Howell explained.

"The Men's Shed was originally established by the Chinchilla Apex Club, however, we formed an individual committee of eight members around six months ago.

"We meet every Thursday from 9am to 12pm and welcome new members that can help work on various community projects, including the refurbishment of garden seating at the Chinchilla Hospital."

Thiess Construction Superintendent Justin Gray and HSE Advisor Craig Alexander gather with members of the Chinchilla Men's Shed to inspect the donated timber from the McNulty Field Compression Station.

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