SBN Jan 2008 by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 24 January 2008

Green light for missing port

28 pages $1.00 inc GST

COUNTDOWN

TO REFORM

In less than two months local government amalgamations will create a resource powerhouse, a national leader, and...

Another piece of the puzzle falls into place

ladstone’s position as a world-leading coal port has been further enhanced with this month’s green light for the massive new Wiggins Island Coal Terminal, Acting Premier Paul Lucas said while visiting the state’s port city. “The Coordinator-General has approved the environmental impact statement, subject to conditions, for the $3.5 billion Wiggins Island Coal Terminal,” he said. “The project’s proponent, the Central Queensland Port Authority, plans to build it in three stages. The first, valued at $1.3 billion to be completed by 2012. It has the potential to boost Gladstone’s coal exports by up to a third, or 25 million tonnes, and generate up to $1.8 billion in export earnings annually. “Wiggins Island will greatly enhance Queensland’s ability to get our number one export across the seas to 33 potential markets. “The three-stage terminal has been designed to cope with up to 84 million tonnes a year. “More than 20 coal companies have already expressed interest in any extra capacity we can provide. “Gladstone will be exporting up to 150 million tonnes a year when all three stages of Wiggins Island are complete.” Associated with the announcement, the Department of Infrastructure and Planning has started the environmental investigation process for a $500 million rail upgrade — the Moura Link-Aldoga Rail Project — to transport coal to the new Wiggins Island Coal Terminal. “It is another part of the Bligh Government’s strategic plan for the coal industry which connects Gladstone to the Surat Basin Railway (Southern Missing Link) and key mining proposals like the Wandoan Coal Project,” Mr Lucas said. “(This) news is exciting for the Gladstone, central Queensland and state economies. It means jobs, jobs and more jobs.” “Just last month the premier was in CQ announcing a study into expansion of Port Alma so that it could export an additional 30 million tonnes of coal per year.

The

$10 BILLION supershire

BY John Farmer editorial @suratbasin.com.au

ver the next four years, more than $10 billion of public and private investment is expected to pour into the resources of the Surat

Basin. Premier Anna Bligh believes that will be money better spent because of her government’s forced amalgamations that were announced last year. She said regional government would have more capacity to deliver infrastructure and strategies needed to support mining and power projects. “It’s my view that those sectors are likely to be even more successful with stronger coun-

Continued on P.3

Burning bright Surat Basin gas steaming ahead

“...our (reform) process will take these regions forward in ways that were previously thought impossible.” cils overseeing their developments,” she said. “Councils that can grab the opportunities in the private sector, councils that are strong enough with enough grunt to put in place the infrastructure that will be necessary to see these opportunities develop. “These opportunities aren’t going to be realised without some significant investment in major roads and freight routes and councils can’t do that on their own, but they will need

capacity to develop those projects.” By 2012, the Surat Basin Railway will weave its through all but one of the six councils to be merged into Dalby Regional Council from March 15. The link to the Port of Gladstone is one of three pieces of infrastructure needed to open up the Surat Basin A myriad of coal mines and power projects are expected within the boundaries of the Dalby Regional Council over the next five years. Ms Bligh said creating the new council would be in the interests of the Australian economy. “When you contemplate the resources that are here and contemplate the demand for those resources, the prospect of having a strong, large regional council acting regionally is in the long term interests of the people that live here, of the Queensland economy and of the Australian economy,” she said. Continued on P.5

UCG Innovators Birth of a new cleaner energy DETAILS P.14-15 — www.suratbasin.com.au —

Surat Basin NEWS The Team

INSIDE THIS EDITION: Surat Basin News

INFRASTRUCTURE IN PLACE Miles business remains on track

THE NEWS

Surat Basin News

World first weeks away

THE NEWS R ESOURCES

Linc Energy pushes forward

Surat Basin News

INFRASTRUCTURE Drought proofing Miles

QGC begins construction

Wiggins Island approval

Cont’d from P.1 The Wiggins I s l a n d approval adds to recent achievements including; completion of the $116 million Abbot Point Terminal expansion (near Bowen) in November, committing a total of $46 million toward the Northern Missing Rail Link to Abbot Point, and another $103 million towards the RG Tanna Coal Terminal. Mr Lucas said that the Central Queensland Ports Authority and Queensland Rail plan to spend $1.3 billion on Wiggins Island first stage, plus another $2.2 billion in later stages. Stage One could take up to three years to complete and create up to 500 building jobs with 130 people required when operational. The new terminal will include a trio of dump stations, underground conveyer systems and ship loaders, a 2km-long jetty with four dedicated coal ship berths and two general industry docks. "New rail lines able to cope with both electric and diesel trains from the Blackwater mines and diesel trains from the Moura mines are also needed." The Wiggins Island Coal Terminal will now go before the Commonwealth Government for final endorsement. Subject to resolution of environmental issues at the Federal level, construction could begin in early 2009. From Saturday, January 12, the State Government started seeking public comments on the associated

“T

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Skilling the Surat Project officers appointed to skilled labour strategy

David Richardson General Manager

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Laurell Ison Advertising

Glimpse into super-shire Expanding on the front page, we take an in-depth look into the Dalby Regional Council

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The year that was 2007 Queensland Resources Council CEO Michael Roche looks back on 2007

Major port upgrades like the Wiggins Island Coal Terminal are needed to ease demand on Queensland transport links. Moura Link-Aldoga Rail Project - west of Gladstone and Calliope. “A substantial upgrade to the area’s rail system was originally part of the Wiggins Island Coal Terminal proposal,” Mr Lucas said. “However based on community concerns about additional coal trains Queensland Rail has outlined a new corridor to get coal to Gladstone Harbour. “The proposal is to now build a new track for coal trains from the Moura Short Line west of Calliope, to the North Coast Line south-east of Mt Larcom. (see attached map) “This proposed route will not increase coal train traffic in Gladstone, and it leaves the Byellee Wetlands untouched and removes the need for a Calliope River bridge.

"Plans include a new maintenance yard and locomotive provisioning facility near Aldoga and a doubling of track capacity - from two to four- on the North Coast Line between Aldoga and Wiggins Island." The CoordinatorGeneral declared Moura Link-Aldoga a significant project in September 2007, triggering a detailed Environmental Impact Statement (EIS) process. “Once the terms of reference have been finalised, Queensland Rail will have to prepare a detailed EIS outlining the existing environment, the project’s likely effect on it and their plans to minimise any negative impacts. People will have a chance to have their say on both the draft terms of reference and the EIS.” Around 350 jobs could

ockatoo Coal announced this month its wholly owned subsidiary SE QLD Coal has entered into an agreement, subject to consent to the assignment of tenements by the Queensland Minister for Mines and Energy. The agreement is to acquire 100 per cent of Exploration Permits for Coal 796 and 813 in the Surat Basin, for cash consideration totalling $3 million. The vendors of the subject EPCs being acquired are Aquila Coal (50 per cent), a subsidiary of listed Australian company Aquila Resources, and Bowen Central Coal (50 per cent), a subsidiary of CVRD Australia, part of the Brazilian based Vale, the world's second largest

diversified mining company. These tenements are contiguous with existing Cockatoo exploration tenements in the Surat Basin (most particularly, the Surat Project comprising EPC 1041 Miles and EPCAs 1135 Chinchilla and 1136 Dalby) which were acquired in July 2007. This strategic acquisition allows Cockatoo to further progress an integrated exploration strategy over contiguous and/or closely located exploration tenements running for over 150 kilometres along the Surat Basin from near Oakey in the southeast up to near Wandoan and Cockatoo’s existing Guluguba tenement in the northwest. The coal assets which Cockatoo has acquired are EPCs 796 (Horse

John Farmer Journalist

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

The Vision 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.

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An industry burning bright Queensland’s coal seam gas industry has been revitalised and Surat Basin companies are leading the way PAGE 13

More gas off to Gladstone Two Surat Basin companies join in attempts to export LNG around the world PAGE 10

The controversial Nathan Dam Marking the start of construction on Queensland Gas Company’s Condamine Power Station at last year’s sod-turning ceremony are Austrian Energy and Environment managing director Tony Sheehan, Barunggam group representative Deidre Daylight, QGC cultural heritage officer Joanne MacNeil, QGC general manager Leon Devane and Murilla Shire Mayor Roderick Gilmour. Queensland Gas Company’s (QGC) held a sod turning ceremony to mark the commencement of construction of its Condamine Power Station. With the initial stages of construction now underway, QGC is well on track in becoming an integrated energy supplier. The 140 megawatt, coal seam gas (CSG) fired plant is situated 8 kilometers east of Miles in Southern Queensland. The first stage of the power station is scheduled to be com-

pleted by February 2009, when QGC expects to commence commercial sale of open-cycle generated electricity to the National Electricity Market. Members from the Barunggam group, the traditional owners of the Condamine Power Station site joined the Mayor of Murilla Shire, Mr Roderick Gilmour in the welcoming ceremony. Austrian Energy and Environment was selected to build the combined cycle power station through an

Engineer, Procure, Construct (EPC) contract. Under the EPC contract, Siemens will provide gas turbines and a steam turbine to allow for flexible operation of the plant. “This ceremony marks a further step in QGC realising its strategy of being a strong, integrated energy supplier, but it also reinforces the good relationships with both the traditional owners and local community” said Mr Richard Cottee, QGC managing director.

Taking advantage of a strengthening market Queensland Gas Company (QGC) has entered into a hedge with AGL Energy for approximately 66 per cent of the Condamine Power Station output for the first three years. The strike price for the hedge takes advantage of the current strength in the electricity market by locking in pricing for 3 years that is approximately 40 per cent higher than pricing assumed for financing purposes. The hedge is on an as available “generation following” basis which reduces the risk to QGC if it is unable to generate electricity at any particular time, and applies to only “sent out” electricity which preserves all potential value available through Gas Electricity Certificates (GECs). “The hedge entered into with our strategic partner

AGL Energy is for only 66% of the Condamine Power Station output, but it covers all of our payments under the tolling arrangement in those 3 years.

value of our strategic relationship with its largest shareholder (AGL) and demonstrates the commercial value of QGC’s vertical integration and on-site

“This enables QGC to take advantage of the expected price volatility during those years in the knowledge that our costs have already been covered.” Additionally, because it is a generation following hedge, it does so with minimal risk to QGC”, said QGC managing director, Richard Cottee. “This enables QGC to take advantage of the expected price volatility during those years in the knowledge that our costs have already been covered”. “QGC sees the hedge as a further illustration of the

electricity generation strategy.” AGL's Managing Director Michael Fraser said that the deal worth approximately $80 million over three years1 would take effect in the first quarter of calendar 2009 and further bolster the company's strong Queensland position. The transaction has been structured as a financial derivative with no

upfront capital requirements. "This transaction enhances our already strong position in the Queensland energy market. Complementing our investments in QGC, Sun Gas and Powerdirect, this transaction builds on AGL's purchase of the dispatch rights from the Oakey and Yabulu power stations, the latter being a key component of the AGL-Arrow joint venture that last week acquired Enertrade's gas merchant business," Mr Fraser said. "The structure of this transaction delivers value for both AGL and our strategic partner QGC. By setting a three-year price for 66 per cent of the capacity, QGC has essentially locked-in its financing costs for the entire plant for this period and is well positioned to take advantage of any price volatility with the residual capacity.”

Surat Basin NEWS Thursday 24 January 2008

The future of the long delayed water project may not be known until 2010

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Acquisition act fair Queensland Minister defends his government’s land acquisition act

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Gateway to the world Export rail link another step closer with State Government declaration PAGE 18

Murilla Shire Mayor Roderick Gilmour. summer months (2.3 ML). QGC will make the treated water available at the delivery point which will be at the Condamine

Power Station site 8km east of Miles. Delivery will be via a new pipeline to be installed from the delivery point to the town. “The project has the potential to drought proof the township of Miles as well as provide for further urban/industrial growth,” Cr Gilmour said. “The beneficial use of coal seam water for urban purposes will also lessen the environmental impact that the storage of large quantities of waste coal seam water is having in this region as well as reduce the amount of water being taken from Dogwood Creek and Council's Artesian Basin supply.” The exact cost of the Murilla Shire project cannot be determined until all studies are completed, which is expected to be done by late February 2008. Council will be seeking funding support for the project from the State Government. Chinchilla Shire Council and Dalby Town Council are also in negotiations with coal seam gas companies to begin similar alternative water supply programs.

“The project has the potential to drought proof the township of Miles as well as provide for further urban/industrial growth.”

Moderate energy sector growth to continue oderate energy consumption growth to continue ‘Under a ‘no new policies’ scenario, ABARE projects that Australia’s energy consumption would grow by 1.6 per cent a year to 2029-30.’, ABARE’s Executive Director, Phillip Glyde, said today when releasing ABARE’s latest research report, Australian Energy: national and state projections to 202930. ‘Under that scenario, Australia would become less energy intensive in this time frame as it moves to a more services oriented economy and continues to implement currently established energy efficiency and conservation measures.’ ‘Coal and oil would continue to supply the bulk of Australia’s energy needs, although the share of gas

would be expected to increase strongly’, Mr Glyde noted. Natural gas consumption would rise by 2.6 per cent a year over the outlook period to account for 24 per cent of total primary energy consumption by 2029-30, under this scenario. ‘Renewable energy consumption is also projected to increase but from a smaller base’, Mr Glyde said. With the support of only currently established policy measures, such as the Mandatory Renewable Energy Target, renewable energy would increase by an average annual rate of 2.4 per cent out to 202930. The transport sector is the largest consumer of energy in Australia at the end use stage, but its share of total final energy consumption would fall from 39 per cent in 200506 to 36 per cent in 2029-

30, assuming no change in current policy settings. In contrast, with a large number of minerals and energy mining projects expected to be commissioned, in the same circumstances the mining sector’s share of total final energy consumption would increase from seven per cent to 12 per cent over the same period. ‘Australia’s production of coal and gas is projected to continue to grow strongly’, Mr Glyde said. ‘So coal and, increasingly, LNG will continue to be major export earners for Australia. With no change in current policy measures, coal exports would increase by more than two per cent a year to 2029-30 and LNG exports have the potential to grow by more than 7 per cent a year.’ ‘Several new oil projects are expected to increase Australia’s crude

oil production over the next few years’, Mr Glyde commented. ‘However, in the longer term, the ratio of oil production to consumption is expected to fall, with Australia becoming more reliant on oil imports in the period to 2030.’ ABARE’s practice in making these projections is to include policies only once they have been implemented. The implementation of new policies such as the introduction of an emissions trading scheme and an increase the Mandatory Renewable Energy Target to 20 per cent of electricity supply by 2020 will have implications for Australian energy consumption and production patterns in the future. However, since the policies have not yet been implemented, they have not been included in this set of projections.

Surat Basin NEWS Thursday 24 January 2008

RESOURCES:

INFRASTRUCTURE:

Surat Basin coal seam gas leads a new nationwide boom with impressive annual growth, while a strategy is locked in to better skill and strengthen the region’s workforces. Meanwhile, Actev Manufacturers begins a new era with the arrival of innovative technology.

Coal seam gas companies value add to their Surat Basin operations. We reflect on the lessons learnt during Kogan Creek while taking a glimpse into the emergence of underground coal gasification in the Chinchilla Shire.

Discover how the Nathan Dam remains delayed despite its role in Surat Basin expansion. Meanwhile, meet with Darryl Waugh, one of 40 Wandoan landowners facing the loss of their properties to make way for Xstrata Coal’s $500 million coal mine.

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

Take the politics out of the mix, and the amalgamation of Western Downs councils may in time be for the better. The reforms are going to create larger corporate entities that are more efficient and better long term planners. That is good news for towns at the heart of an energy province witnessing unprecedented investment over the next decade. Economies of scale should make for a financially stronger council, critical considering the downturn in government funding and the demands of the private sector. Dalby, Chinchilla and Miles are currently all trying to unlock the value of coal seam methane water. Each is facing mounting costs due to the level expertise needed to even consider the multi-million dollar treatment and delivery programs. Two have yet to secure state or federal government assistance. Under a regional government, one report would be needed and infrastructure could be just duplicated. The water would have more chance of reaching towns. Through strategic cohesion Dalby Regional Council is going to be a more effective at long term planning and infrastructure delivery. The breaking down of local government boundaries makes its easier and cheaper for private enterprise to realise projects. It will only take a single council to switch on the green light for projects like the Surat Basin Railway and Xstrata’s Wandoan coal project. Before the merger, these projects cut a sway across a number of electorates. Of course, the reforms have not been without controversy. Words like “undemocratic”, “takeover” and “loss of identity” have been used since they were introduced. But communities can use the united opposition to galvanise and take control of their own destinies. Wandoan already has, making sure a body is in place before the reforms have taken place. Surat Basin towns can follow this lead. And so can Dalby Regional Council by setting up committees to work with communities at the coal face to replace local representation. There is little doubt it is going to become dearer and harder to manage the towns and districts of the Surat Basin. It is not without a sense of loss that existing councils are farewelled. But it is renewed hope for a brighter, stronger and safer future that regional councils should be welcomed.

THE TOWNS

Sensitive to local needs Sir — Re “Resounding No” Chinchilla News 20-12-07. It is clear to me that there is a fear of loss of representation under the new Regional Council. The new Mayor and the new Regional Council must take this into account and work hard to alleviate these fears by being truly representative and inclusive in their approach. I would favour a system of community consultative committees for each area in the region. Individual councillors would be part of this process and bring issues and concerns to the board room of the Regional Council. I believe the new council must always be sensitive to local concerns and that we can all work together for the benefit of the region. Cr Barry O’Shea Candidate for Mayor of the new Regional Council

Sensitive to local needs Sir — The recent poll on forced Council Amalgamations certainly showed that the voters (citizens) of the affected shires overwhelmingly rejected the State Government's laws by 78 per cent to 22 per cent. If only an election could be won or lost on a landslide of this percentage. Look at Flynn - won by 253 votes - 50.16 per cent to 49.84 per cent. I find it incomprehensible and an insult to our democratic rights that the Bligh Government is still treating us with indifference and utter contempt by ignoring these figures. Anna Bligh is to be congratulated on taking on the bureaucrats in our Ambulance Service to give us

PUBLIC OPINION:

TAKING CONTROL

The Surat Basin News welcomes letters to the editor but reserves the right to edit them. Letters should be no longer than 200 words.

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hambers of commerce from across the Surat Basin met in Chinchilla last month to formulate a strategy to deal with local government reform. Representatives from Chinchilla, Miles and Dalby held a second discussion forum to look into forming a strong voice for business and development groups beyond March. All groups recognised while council amalgamations brings challenges to local government operations and structure, those challenges must also be dealt with by the region’s business community. Dalby Chamber of Commerce & Industry president Paul Hodda said co-ordination between the region’s chambers would ensure business and industry continue to be heard. “The Dalby chamber believes that by banding together as a regional voice we can liaise with the Dalby Regional Council to ensure that funding is appropriately distributed to all chambers and that our important work continues under the new council environment,” he said. “We also consider that by working together we can provide assistance to develop and strengthen smaller chambers.” Regional chamber representatives are also part of the Western Downs Development Group, a sub-

Vibrant, sustainable communities are at the heart of a new skills strategy.

We need the skills and the strategy Sir — It is an interesting time ahead and an equally important time. The Surat Basin is going to take off, there’s no question, and communities are going to have to find ways to cope without local councils. If we don’t find ways to adapt, these major projects are going to pass us by without any benefits for locals. That is why the continuation of a skills formation strategy is so important. It was absolutely imperative that the Western Downs Development Group found a way to lock in what has been so successful over the last three years. We need workers for projects like power stations, gasfields and infrastructure. We also need workers for the industries so important to servicing growing towns and populations. The Surat Basin skills development strategy will find ways not only to attract these people to jobs, but to communities. Transiet workers bring very few benefits for the short time they are in a community. But if workers more “troops” at the coal face. This is the kind of leadership we need and surely she can listen again to the people (voters) on this diverse and important amalgamation issue. She would endear herself to an awful lot of rural voters.

can’t be found locally, that is where companies will have to turn. If we attract people to our towns — to live, work and play over the long term — that will lead to more vibrant, sustainable communities. But before the need to attract people, maybe most importantly the skills strategy will find ways to upskill and train locals. It is important to also assist our current businesses and industries to adapt to these new and demanding times of the labour market and how it will effect as all. Finding ways for our long established and important agriculture sector and the resource sector to work together. It will focus on finding assist local people and businesses to find ways in working with the resource sectors. I feel only then the true key to realising the full potential of the Surat Basin will happen. This is why it is so crucial we have this strategy locked in for another three years. Greg West President Chinchilla Economic & Tourism Development Association

Congratulations to Chris Trevor on winning Flynn in a very close contest. His electorate contains the present Shire of Taroom that will be split in two in one of the most amazing and impractical decisions by an “expert” committee. We hope that he can see

his way clear to make representation on our behalf to persuade the State Government to revisit this problem and come up with a solution that is acceptable to the majority of voters. Adam C Clark Taroom

How do you envisage Wandoan in 10 years time?

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Thanks for the memories CS Energy and community together for one last farewell

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Testament to the pioneers Roma’s tribute to the history and prestige of gas and oil

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Waiting for the full potential Chris Guteridge

Megan Bradshaw

Darryn Jones “That’s the question isn’t it, It’s hard to say, the council’s around here need to spend more money on the infrastructure and put the money where its needed.”

“Because of the energy industry, there will be more businesses, but I don’t think there will be many locals left since the government is taking peoples land away and a lot of them are against it.”

Vince Harris “The country people will be flat bambicky trying to make a living. This energy business is driving the cost of living up all the time.”

Dalby’s future and the role of Surat Basin resources

Surat Basin NEWS Thursday 24 January 2008 PAGE 22

Warra State School principal Erin Chegwidden, Brigalow State School principal Kylie Todhunter, Chinchilla State High School principal Judy Guzzwell, and Chinchilla State Primary School principal Majella Frith and deputy principal Jenny Gross.

Sculptor Peter Kozina (centre) and former CS Energy acting chief executive Tony Andersen (right) present Chinchilla Shire Mayor Bill McCutcheon with a sculpture made with scrap metal from the Kogan Creek Power Station site.

Murilla Shire Council economic development officer Andrew Smith at a Chinchilla Chamber of Commerce meeting with Dalby Chamber of Commerce & Industry manager Kerryn Suttor and president Paul Hodda. committee of the Western Downs Regional Organisation of Councils. The group was formed prior to amalgamation where the need to take a collaborative approach to regional issues was addressed through the skills formation strategy. Funded by the Department of Education, Training and the Arts, this project addressed skills shortage and train-

ing needs in the region. The WDDG consists of members from industry, local government, TAFE and university and local councils. “The Western Downs Development Group is working on the best way to form a body that will promote investment and lifestyle aspects of the region as well as increasing local training and attraction of skilled workers,”

Greg West said, Chinchilla Economic and Tourism Development Association president. “It has also been identified that key areas of liveability, amenities and social factors associated with development could be addressed by such a group.” The WDDG held a meeting in late December to decide on the best way forward.

Major industr y closer to communities n 2008, for the first time, The University of Queensland will offer a postgraduate program aimed at improving the skills of community relations professionals in the minerals industry. Offered in partnership with the Minerals Council of Australia (MCA), the Graduate Certificate in Community Relations will take one year to complete on a part-time basis. Director of Studies for the Social and Behavioural Sciences Faculty, Associate Professor Julie Duck, said the program was developed in response to industry demand and increasing expectations about the industry's social performance. “The Faculty is delighted to be collaborating with the Sustainable Minerals

“I don’t know. If it goes like Rolsten or Springshaw, where the energy boom didn’t really have an impact then it won’t change much. But it has already had an impact on the land value around here.”

Marking the end of construction at the Kogan Creek Power Station cocktail party are Dalby Town Mayor Warwick Geisel, Wambo Shire Mayor Mick Cosgrove, Chinchilla Shire Councillor Maurie Smith and Murilla Shire Mayor Roderick Gilmour.

Wandoan and its destiny

Dealing with sweeping reform

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

THE TOWNS

Surat Basin News

LETTERStotheEDITOR

Surat Basin NEWS

In time for the better

suratbasin.com 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.

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Kogan Creek and the lessons the town of Chinchilla learnt

urilla Shire Council has taken another step towards drought proofing the town of Miles. One of council’s last tasks in 2007 was the signing of a water agreement with Queensland Gas Company to begin a study into treating and delivering coal seam water to the town. QGC has a significant presence in the Murilla Shire, with gasfields to the south-east and construction starting on a power station to the east. The agreement is part of an overall strategy in which consultants Gilbert and Sutherland will provide advice on an integrated water strategy. Murilla Shire Mayor Roderick Gilmour said the strategy would look at ways to improve water usage efficiency, reduce demand and improve water supply security. He said one component of the water supply security plan was the proposal to accept and reuse treated coal seam water from QGC. But the realisation of the project would depend on its overall costs. “The signing of the agreement only commits Murilla Shire Council and Queensland Gas Company to further investigate this component in order to determine whether the project is economically feasible for both parties,” Cr Gilmour said. The agreement provides a maximum daily delivery of 1.5 megalitres of water from Queensland Gas Company. This figure is more than the township of Miles currently uses during the winter months (0.7 ML) but less than the maximum the township uses during the hot

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be created during the twoyear construction program with up to 550 permanent positions when the line is at full capacity. “The CoordinatorGeneral will take this into account and make a considered decision, one that weighs community, environmental and social impacts against potential benefits to the local and State economies. “I encourage people to study the draft Terms of Reference and Initial Advice Statement and submit their comments to the Coordinator-General.” The deadline for public submissions to the Coordinator-General on the Moura Link-Aldoga Rail Project is February 13. For more information visit www.infrastructure.qld.gov .au or the Calliope Shire Council offices.

Creek) and 813 (Dogwood Creek), covering an area of approximately 816 square kilometres located in the Surat Basin. These acquisitions significantly increase Cockatoo’s already large footprint of exploration tenements and developments in the Surat and Clarence-Morton Basins. These new areas, together with Cockatoo’s existing portfolio of Surat tenements, are considered highly prospective for potential development of open-cut export thermal coal operations of significant capacity. Cockatoo is currently adding additional drilling and exploration capability in order to develop exploration targets and undertake requisite drilling programs in the Surat Basin.

Surat Basin NEWS Thursday 24 January 2008

Beth Walker Graphic Design

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The project we had to have

Cockatoo expands Surat Basin presence

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A VERY REAL THREAT Wandoan landowners and their uncertain future

“Community relations are integral to such industries and contribute to the overall wellbeing of the communities in which the industry operates.” Institute and the MCA in offering a new Graduate Certificate tailored to the needs of community relations practitioners in the resources sector,” Dr Duck said. “We recognise the need for the professionalisation of community relations practitioners working in mining and related industries, and the need for an enhanced focus on corporate social responsibility. “Community relations are integral to such industries and contribute to the overall wellbeing of the communities in which the

industry operates.” While the industry is already equipped with wellqualified professionals in areas such as engineering and geology, the Graduate Certificate will address the need for an appropriate academic program in Community Relations. “The program will support the professionalisation of community relations practitioners and enable the mining industry to work more collaboratively with local communities,” Dr Duck said. The Graduate Certificate will offer three core courses

aimed specifically at the resources sector: • Community Development for the Mining Industry • Community Engagement for the Mining Industry • Community Aspects in Mineral Resource Development An elective course, Mining Projects and Indigenous Peoples, is being offered through the Australian National University. The program is primarily aimed at those with relevant work experience in community relations roles within the minerals industry. Potential students can apply through the Sustainable Minerals Institute or the Faculty of Social and Behavioural Sciences.

Surat Basin NEWS Thursday 24 January 2008

Fond farewell

After three years of a considerable influence on the community of Chinchilla, to coincide with the end of Kogan Creek Power Project construction, CS Energy threw the town a cocktail party. Held at the RSL Memorial Club in early December, local government representatives and community leaders from across the region joined with CS Energy to celebrate a magnificent three years. “I don’t think people in the region would have appreciated what it was they were in for when we turned up three and a half years ago and announced this project,” former acting chief executive Tony Andersen said. “It was a momentous occasion for Chinchilla but it was also pretty awe inspiring for us to stand in front of 600 people in the cultural centre.”

Mr Andersen said the company had received “nothing but wholehearted” support from the community since the $1.2 billion project had started. “It’s been exciting, it’s been different but it will naturally transition to the phase we are now moving into to. “It won’t be as dynamic nevertheless for CS Energy it’s the money making phase,” Mr Andersen said. “Tonight is to primarily to thank the community of Chinchilla for this opportunity to be a part of you.” Chinchilla Shire Mayor Bill McCutcheon accepted on behalf of the community a sculpture by Peter Kozina. The sculptor used scrap metal from the Kogan Creek site to create a goanna, representing the transformation of the power station site.

CS Energy contract supervisor Ken French and Tina Duckitt

Kogan Creek Power Station manager Bill Pike and David Fuller.

Sue Mantell, Edna Neucom, Margaret Bell, Margaret Rogers and John Rogers.

Dot Fuller, Ailsa Gilmour, Chinchilla Shire Councillor Helen Townsend and her husband John.

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Jo Morecroft, Samantha Moore, Lynette Squire and Arthur Squire.

Surat Basin NEWS Thursday 24 January 2008

OPINION:

THE TOWNS:

THE PEOPLE:

QRC chief executive Michael Roche looks back on 2007 and the ongoing growth of innovative coal, gas and power projects across Queensland and the Surat Basin.

Dalby is set to become the commercial centre of the Surat Basin. Take a look at what is unfolding in the town to adapt to the demands of resource-based development.

Regardless of what development unfolds across the region, it is the people who will forever define the communities. Take a look at what has taken place in your town over the past few weeks.

S u r a t B a s i n News Circulation 10,500 Inserted into the three dominant media outlets in the Surat Basin area; the Chinchilla News, the Dalby Herald and the Western Star. IF YOU WOULD LIKE MORE INFORMATION, PLEASE PHONE 4662 7368

Feedback on this publication and ideas for future issues are invited.

advertise@suratbasin.com.au or editorial@suratbasin.com.au PAGE 2

Surat Basin NEWS Thursday 24 January 2008

Surat Basin News

INFRASTRUCTURE IN PLACE

THE NEWS

Miles business remains on track

Wiggins Island approval Continued from P.1

“T

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A run away success Surat Basin coal seam gas is leading a nationwide boom

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Skilling Surat Basin workers To meet demand, a strategy has been locked in to upskill and attract workers

he Wiggins I s l a n d approval adds to recent achievements including; completion of the $116 million Abbot Point Terminal expansion (near Bowen) in November, committing a total of $46 million toward the Northern Missing Rail Link to Abbot Point, and another $103 million towards the RG Tanna Coal Terminal. Mr Lucas said that the Central Queensland Ports Authority and Queensland Rail plan to spend $1.3 billion on Wiggins Island’s first stage, plus another $2.2 billion in later stages. Stage one could take up to three years to complete and create up to 500 building jobs with 130 people required when operational. The new terminal will include a trio of dump stations, underground conveyer systems and ship loaders, a 2km-long jetty with four dedicated coal ship berths and two general industry docks. “New rail lines able to cope with both electric and diesel trains from the Blackwater mines and diesel trains from the Moura mines are also needed,” Mr Lucas said. The Wiggins Island Coal Terminal will now go before the Commonwealth Government for final endorsement. Subject to resolution of environmental issues at the federal level, construction could begin in early 2009. From Saturday, January 12, the State Government started seeking public com-

Major port upgrades like the Wiggins Island Coal Terminal are needed to ease demand on Queensland transport links. ments on the associated Moura Link-Aldoga Rail Project — west of Gladstone and Calliope. “A substantial upgrade to the area’s rail system was originally part of the Wiggins Island Coal Terminal proposal,” Mr Lucas said. “However based on community concerns about additional coal trains Queensland Rail has outlined a new corridor to get coal to Gladstone Harbour. “The proposal is to now build a new track for coal trains from the Moura Short Line west of Calliope, to the North Coast Line south-east of Mt Larcom. “This proposed route will not increase coal train traffic in Gladstone, and it leaves the Byellee Wetlands untouched and removes the need for a

Calliope River bridge. “Plans include a new maintenance yard and locomotive provisioning facility near Aldoga and a doubling of track capacity — from two to four — on the North Coast Line between Aldoga and Wiggins Island.” The CoordinatorGeneral declared Moura Link-Aldoga a significant project in September 2007, triggering a detailed Environmental Impact Statement process. Once the terms of reference have been finalised, Queensland Rail will have to prepare a detailed EIS outlining the existing environment, the project’s likely effect on it and their plans to minimise any negative impacts. People will have a chance to have their say on both the draft terms of reference and the EIS. Around 350 jobs could

be created during the twoyear construction program with up to 550 permanent positions when the line is at full capacity. “The CoordinatorGeneral will take this into account and make a considered decision, one that weighs community, environmental and social impacts against potential benefits to the local and state economies,” Mr Lucas said. “I encourage people to study the draft Terms of Reference and Initial Advice Statement and submit their comments to the Coordinator-General.” The deadline for public submissions to the Coordinator-General on the Moura Link-Aldoga Rail Project is February 13. For more information visit www.infrastructure.qld.go v.au or the Calliope Shire Council offices.

Cockatoo expands Surat Basin presence PAGE 9

The year that was 2007 Queensland Resources Council CEO Michael Roche looks back on 2007

Surat Basin NEWS Thursday 24 January 2008

Creek) and 813 (Dogwood Creek), covering an area of about 816 square kilometres located in the Surat Basin. These acquisitions significantly increase Cockatoo’s already large footprint of exploration tenements and developments in the Surat and Clarence-Morton Basins. These new areas, together with Cockatoo’s existing portfolio of Surat tenements, are considered highly prospective for potential development of open-cut export thermal coal operations of significant capacity. Cockatoo is currently adding additional drilling and exploration capability in order to develop exploration targets and undertake requisite drilling programs in the Surat Basin.

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LOCAL NEWS

Vibrant and shining bright With 60 per cent annual average growth since 1998, Surat Basin coal seam gas is leading the sector’s second coming he coal seam gas subsequent east coast export industry has evolved facilities is resulting in renewed into one of the most vigour and adding value to vibrant and fastest Queensland’s coal seam gas growing resource sec- industry. The report states: tors in Queensland. “world demand for LNG is Today, coal seam methane expected to double by 2010 to supplies around 70 of the gas market in Queensland and grew from two petajoules in 2000 to 70 in 2006. Much of that momentum OTHERS has come from the Surat 15.80% Basin, where the sector has Origin steamed forward at almost Group 60 per cent every year 30.12% since 1998. And it isn’t hard to see why? Santos Four companies deeply Group entrenched in the Surat 28.72% QLD Gas Basin were listed in the Company PriceWaterhouse Coopers 9.75% 2007 report Value and Arrow Growth in Coal Seam Energy Methane as Queensland’s 15.38% largest gas producers. Origin Energy, which is looking to crack open the Walloons to feed its Darling Downs more than 280 million tonnes”. Power Station, owns 30.12 per Evidence of the market’s cent of the state’s resources. potential is highlighted in Santos, Arrow Energy and Western Australia, where the QGC are the other major play- author writes “gas markets ers listed in the report. have been transformed” by supThe report attributes the mas- ply agreements with global sive growth to factors such as the markets. Queensland Government’s 13% Current demand for Western Gas Scheme, growth in gas-fired Australian LNG is at around electricity generation and green- 11.9 million tonnes, according house gas abatement schemes. to the report. The report’s author writes: Santos and Sunshine Gas “the future for gas demand is are looking to join the ranks of unprecedented in Australian LNG exporters with plans to history and has already laid the feed LNG facilities at foundations for a second major Gladstone with gas from their CSM boom”. Growing demand Surat and Bowen basin gasfor LNG around the world and fields. Santos will decide by

TOP: Gas from Sunshine Gas’ Bowen and Surat basin field Lacerta is bound for a LNG plant at Gladstone.

MIDDLE: Over the last three years, QGC has emerged as an industry leader.

RIGHT: Three Surat Basin-based companies are proposing LNG exporting programs out of Gladstone.

ORIGIN ENERGY SPRING GULLY North of Roma, first stage of the project was completed in June 2005. Up to 400 CSG wells are expected to be drilled in the area over the next 20 years. Commissioned in June 2005, it will contribute to a contract signed with AGL for the supply of 340 PJ of gas over 15 years. Combined with the Fairview project, could yield reserves of over 4000PJ. DARLING DOWNS POWER STATION A 630MW gas-fired power station, 40km west of Dalby and the biggest combined cycle gas-fired power station in Australia, will operate as a baseload to intermediate power station. Construction contract worth $780 million to be operational within three years and supplied by Origin’s extensive coal seam gas reserves at Spring Gully and the Walloons.

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SANTOS FAIRVIEW Situated 100-200km north of Roma with a total area of approximately 5000km² stretching 175 kilometres to the north from Injune. SCOTIA North-east of Roma, 145km, 25 connected wells supplying gas via the Scotia/Peat lateral pipeline to join the Roma-Brisbane Pipeline. GLADSTONE-LNG PROJECT Proposed four million tonnes a year of LNG to be exported from a new facility at Gladstone with the project expected to cost between $5-7 billion. Gas supply of 170-220 petajoules per annum sourced from Santos’ coal seam gas (CSG) fields in Queensland’s Bowen and Surat Basins.

ARROW ENERGY KOGAN NORTH Arrow’s first production gasfield has 2P and 3P of 82.5 PJ and 160 PJ respectively. TIPTON WEST Potentially one of Australia’s largest onshore gas fields situated 20km south of Dalby. 1P, 2P and 3P reserves of 25 PJ, 174 PJ and 2265 PJ. DAANDINE Thirty kilometres south of Dalby next to Kogan North with 1P, 2P and 3P reserves of 4 PJ, 247 PJ and 362 PJ respectively. LIQUIFIED NATURAL GAS AGREEMENT Agreement with Liquified Natural Gas to supply 150TJ/day to a proposed one million tonne-ayear LNG plant at Gladstone. Expected commencement in 2010 with increase to two million tonnes a year possible by 2011.

Surat Basin NEWS Thursday 24 January 2008

2009 whether its project will go ahead, which would see around 150,000 tonnes of LNG shipped every 18 days from an export facility on Curtis Island, equating to four million tonnes a year. The project will cost between $5 billion and $7 billion a year, with some of the investment to be injected into the company’s gasfields. Sunshine Gas late last year signed an agreement with Japan's Sojitz Corp to develop a $570 million LNG plant at Gladstone in Queensland. Gas will come from Sunshine Gas’ Lacerta gasfield in the southern Bowen Basin and Surat Basin and the plant could be exporting up to two million tonnes a year by 2012. Looking to value-add to its Surat Basin gasfields, Arrow Energy last year joined the LNG aspirants with an agreement with Liquified Natural Gas to supply coal seam gas for a 1.3 million tonnes per annum LNG plant in Gladstone. Supplying coal seam gas to produce LNG, according to the PriceWaterhouse Coopers report, would “place pressure on gas production to more than double the current delivery capacity”. But “... Queensland gas reserves will be more than adequate to meet this demand, at a given net-back price,” the author writes.

QGC BERWYNDALE SOUTH Located 30km south-west of Chinchilla, supplies two gas-fired power stations with gas sales equivalent to 16 PJ a year. ARGYLE-KENYA Located 15km east of the Berwyndale South Gasfield, the second of QGC’s major gasfields was fast-tracked in 2007 to meet a 10-year gas sales agreement with Incitec Pivot (IPL) CONDAMINE POWER STATION Located 8km east of Miles, the 135 megawatt combined cycle gas-fired power station will be operational by February 2009, Costing $170 million to build, it will be supplied by QGC’s nearby gasfields.

LOCAL NEWS

Within the next five years, Dalby Regional Council is set to unlock the Surat Basin and become a...

Regional powerhouse Continued from P.1

ClOCKWISE: Whether it is transport, gas-fired or coal-fired power, ethanol, underground coal gasification, or mining, Premier Anna Bligh believes Dalby Regional Council has more capacity to support and deliver.

While Ms Bligh is confident amalgamations will mean a better outlook for regional communities, locally very few agree. The reforms have been widely condemned, most recently in a voluntary survey where 92 per cent of voters from across much of the Dalby Regional Council electorate voted in opposition. But Dalby Town Council chief executive Stephen Hegedus is able to see the benefits of regional government. He feels it will mean greater regional development “by making it easier to do business”. Mr Hegedus said the current shire boundaries often acted as a deterrent to investors because of the complexities of dealing with a number of councils to complete one development. “Large-scale developments are often spread across a wide area and can therefore impact on a number of councils,” he said. “Amalgamation would enable industry to streamline development processes for investors, business operators and industry when establishing work camp sites, roads, providing water or dealing with issues such as labour, rents and housing. “All this could be managed by the one council saving time and money and making investment in the region more attractive.” Mr Hegedus said a larger regional council servicing the population could also result in greater State Government

“All this could be managed by the one council saving time and money and making investment in the region more attractive.” support. “With an amalgamated regional council we will have a stronger local government positioned within the top 20 in Queensland and this could prove beneficial to regional development,” he said. Mines and Energy Minister Geoff Wilson agrees that communities will be better off under regional government because of its capacity to deal with private and public investment. “It has got to be good for long term planning for the future prosperity of this area,” he said. “All of the potential investors and developers, and mining and energy companies, wanting to build their businesses in this region, have only one regional

local authority to deal with. “And that authority will have been able to gather all the expertise needed to work out how to do good ,long term planning around those projects with good community outcomes.” Chinchilla Economic & Tourism Development Association president Greg West has for the past two years lobbied for regional collaboration. He believes it is simply about “power in numbers”. “Why not work together?” he asked. “Distance is really no longer an issue. We have technology and because of the sheer size of the Surat Basin and its projects, we’re all facing the same labour issues, the same social issues. “It makes sense to pool our resources and deal with these problems together. “We’ve proven lately it can work and now we have to make it work. If that can happen I can see it’ll be for the better.” Mr West said he understood the angst created by the reforms across the region, admitting such dramatic change can be difficult to accept. But he said over time, communities would adapt and eventually prosper. “It definitely comes with a sense of sadness to see our shire come to an end, but without those shire boundaries we open up a whole new wave of opportunity,” he said. “We can become better informed of the opportunities at our doorstep and with that we can make better business decisions.”

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LOCAL NEWS

Workforces for the future A State Development report last year predicted more people who live in Chinchilla today could be working in a Surat Basin mine by 2030. The report revealed that over the next 23 years, around 4000 fulltime positions would open up in the mining sector. A total of 16,000 skilled workers will be needed across the energy province. Project officers based in Roma, Chinchilla and Dalby over the next three years will begin work to ensure those positions can be filled, and preferably by locals. Megan McNicholl, Maree Petty and Beth Wood were last month appointed to the $600,000 Commonwealth Government-funded Labour and Skills Development Strategy to plan and prepare for the expansion of the Surat Basin. Their primary focus will be ongoing skill shortages across a cross-section of industries facing unprecedented growth, including the resources sector. The strategy was born out of the regional collaboration fostered by the Western Downs Development Group, which will be responsible for the strategy's implementation. The project officers will monitor, assist and guide actions taken by the WDDG, but according to Mrs. McNicholl, the strategy must remain community driven. Megan and Beth have co-ordinated the Western Downs Skills Formation Strategy over the past three years and will continue to work in their local areas. They have witnessed the challenges

STRATEGY:

Labour & Skills Development in the Surat Energy Resources Province Developing sustainable, vibrant and skilled communities facing local workforces and the difficulties in attracting new people to the area — factors all three project officers will address under the strategy. “I think it is now generally understood that we need to continue to focus on developing effective, regional attraction, recruitment and retention strategies,” Mrs McNicholl said. “Given that there is a world wide skills shortage, retaining our local workforce and young people will emerge as a priority.” Mrs Wood is concerned that without strong, local workforces, communities will not realise the full potential of the Surat Basin. Without addressing the key issues, she believes resource-based industries may be forced to look outside of local towns for workers, supplies and support. “If we are unprepared then we only repeat the mistakes of other regions that have experienced rapid growth,” Mrs Wood said. “It is important that communities are well informed and actively engaged in articulating what is valued in the community so that we control our future prosperity.”

Due to the extent of the Surat Basin expansion, existing workforces are not expected to meet the employment demand. New people must be attracted to Surat Basin towns and locals need to be trained and up-skilled. For that reason, the skill and labour development strategy will branch out into several related social and economic areas. Promotion of the region, lifestyle and workplace training will all be addressed under the strategy. “The key role of the project officers will be to facilitate regional attraction, recruitment and retention strategies,” Mrs Wood said. “To enable this to occur we will need to improve access to training and skilling programs including those for indigenous workers. “We will need to build better workplaces by developing leadership skills, encouraging employers to aim to be employers of choice “And we must develop supportive networks for individuals and families relocating to our area, including migrant workers.” Mrs Petty, as the Roma-based project

Roma project officer Maree Petty. officers, admits the issue of skill shortages is clearly apparent in the town. “The extent of the skills shortage in Roma is quite significant with employers trying to source most vacancies from outside of the general locality,” she said. “There are not many suitable applicants with the skills that are needed from the local pool of applicants because of the chronic skills shortage. “Most businesses are at a loss as to where to find suitable staff and how to successfully recruit and attract good applicants outside of Roma.”

Cracking open the potential During its short history, Surat Basin Developments has unlocked the full potential of a range of investments into Australia's fastest growing energy province. This week, the company was launched online to better inform potential clients and attract investment to the Surat Basin. The website links clients to the company's residential, commercial and industrial developments while providing a complete overview of the energy province. “We wanted clients, both potential and existing, to understand the complexities of this vibrant region,” company director Greg West said. “Not only can clients be confident they are dealing with a company with a proven track record, but they can be confident of the

region their investing in.” Surat Basin Developments works with a full spectrum of clients; from first home buyers and experienced developers, the first time investor and major corporations. The company can locate suitable investment opportunities and drive development through to completion. Government approvals can be addressed and any development catered to the needs of the investor and market target. “It's sound of mind development,” Mr West said. “We locate, recommend or confirm the best opportunity for any client and cater their project so it has the capacity to meet the demands of current and future needs. “It's all about maximising an

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“It's all about maximising an investment and limiting the pitfalls.” investment and limiting the pitfalls.” Surat Basin Developments director Warren Daniells believes it is local knowledge combined with “stress-free development” that attracts such a large and diverse client-base. “We can start and finish whenever and wherever our clients want us,” he said. “We can assist in any step along the way to realising a new home, business or residential development. “And we understand what this region is demanding and the potential it is offering. “Development can be daunting for most, but with our help that doesn't have to be the case.” Earlier this month, an associated company Alkrose submitted a development application to Chinchilla Shire Council for a new modern service station on the current BP site. Depending on approvals, construction should commence later this year. “This is a milestone project for the company,” Mr Daniells said. “It's larger and more elaborate than any other we've been involved in during our time and one that is really going to benefit the local community. “It demonstrates to our clients that coming to us produces results, for both their investment and for the local community."”

Greg West and Warren Daniells are helping make Surat Basin investment easier and more rewarding.

Surat Basin NEWS Thursday 24 January 2008

LOCAL NEWS

Michael and Chris Vowles have gone from weekly visitors with Miles State High School to critical assets in the ongoing expansion of Actev Manufacturers.

Actev delivers innovation to the Surat A 30-person production line teamed up with the latest in machining technology will within the next few weeks begin a new era for a Miles company. By May, Actev Manufacturers must begin delivering 16,000 winches to BlueScope Steel. The winches use a patented over-sensor load binder, invented by company owner Jim Camilleri, to provide a safer alternative for transport industry workers. After years of planning, the first notable signs of change occurred late last year with the arrival of a new five-axis lathe and water cutter. Much of the computer-controlled technology will operate around the clock to allow Actev Manufacturers to meet its

deadline while eliminating the need to out source work. A 30-person team will work six-hour shifts to complete the production line and the numbers are pretty simple: each winch can take no longer than three minutes to produce. In implementing the technology into the workplace, Mr Camilleri has stuck to his laurels. As Western Downs Careers Group chairman, he has been an advocate of skill building across the Surat Basin region. Two Miles State High School graduates involved in a training partnership between the school and company will be responsible for the CNC lathes. Michael and Chris Vowles visited with the school weekly to use Actev Manufacturers’ machinery in a school project

“They back up the work we’re doing to better skill and prepare local workforces.” while gaining an insight into the engineering industry. “They back up the work we’re doing to better skill and prepare local workforces,” Mr Camilleri said of the brothers. “Through a partnership with the high school, they had the opportunity to see how our business works and showed a lot of potential and interest. “Now the boys are learning to use technology you’d be lucky to see west of Toowoomba.”

Jeff Matthews from Hare & Forbes Machinery House, the supplier of the CNC lathe, was onsite in November last year to teach Michael and Chris how to use the machinery. Mr Camilleri said workplace training would benefit the brothers and the company. “They’re training using the actual machine in the actual workplace,” he said. “They’ve got the opportunity

to specialise in a growing industry and as a company we get two workers capable with a piece of machinery critical to our future.” Some of the new technology and expanded workforce will be applied to more than just the winches, with Actev Manufacturers experiencing strong demand from the region’s rural and mining industries.

Dalby gears up for main street redevelopment Plans for the final stage of Dalby Town Council's CBD Revitalisation Project are now on public display and works are underway. The start of construction followed community consultation held with main street businesses

recently. “The information session with local traders was an opportunity for council to present the plans and answer questions about the proposed works,” Dalby Mayor Warwick Geisel said. “It was also a meet and greet between the staff who will be work-

ing on the five month project and the businesses affected by the works. “We are very pleased with the feedback received from local businesses — it's all very positive. “Once completed, the southern end of Cunningham Street

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will really go ahead and match the rest of the CBD streetscape.” Construction on the project commenced last Monday including redevelopment of the Archibald to Cunningham Street intersection and continuation of the new style patterned paving. “The Archibald Street intersection and the southern end of Cunningham Street will receive a facelift in line with the rest of the already revitalised CBD,” Cr Geisel said. “The design includes feature trees, curb-side plantings, block walls, seating and raised pedestrian crossings for increased safety. “On the eastern side of the intersection a raised paved platform is proposed as a feature that could be used for alfresco dining or as a stage for street performers. “Major upgrades to services will also be carried out including improvements to the water main, storm water drainage, electri-

“We are very pleased with the feedback received from local businesses — it's all very positive.” cal and lighting.” Traffic disruptions and road closures are expected during construction from January

until May and residents are asked to follow signed instructions that will be erected for public safety. The CBD

Revitalisation Project plans are now on public display in the foyer of council's administration building.

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Surat Basin NEWS Thursday 24 January 2008

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OPINIONS 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

Editorial In time for the better Take the politics out of the mix, and the amalgamation of Western Downs councils may in time be for the better. The reforms are going to create larger corporate entities that are more efficient and better long term planners. That is good news for towns at the heart of an energy province witnessing unprecedented investment over the next decade. Economies of scale should make for a financially stronger council, critical considering the downturn in government funding and the demands of the private sector. Dalby, Chinchilla and Miles are currently all trying to unlock the value of coal seam methane water. Each is facing mounting costs due to the level expertise needed to even consider the multi-million dollar treatment and delivery programs. Two have yet to secure state or federal government assistance. Under a regional government, one report would be needed and infrastructure could be just duplicated. The water would have more chance of reaching towns. Through strategic cohesion Dalby Regional Council is going to be a more effective at long term planning and infrastructure delivery. The breaking down of local government boundaries makes its easier and cheaper for private enterprise to realise projects. It will only take a single council to switch on the green light for projects like the Surat Basin Railway and Xstrata’s Wandoan coal project. Before the merger, these projects cut a sway across a number of electorates. Of course, the reforms have not been without controversy. Words like “undemocratic”, “takeover” and “loss of identity” have been used since they were announced. But communities can use the united opposition to galvanise and take control of their own destinies. Wandoan already has, making sure a body is in place before the reforms take place. Surat Basin towns can follow this lead. And so can Dalby Regional Council by setting up committees to work with communities at the coal face to replace local representation. There is little doubt it is going to become dearer and harder to manage the towns and districts of the Surat Basin. It is not without a sense of loss that existing councils are farewelled. But it is renewed hope for a brighter, stronger and safer future that regional councils should be welcomed.

Sensitive to local needs Sir — Re “Resounding No” (Chinchilla News 20-12-07). It is clear to me that there is a fear of loss of representation under the new regional council. The new mayor and the new regional council must take this into account and work hard to alleviate these fears by being truly representative and inclusive in their approach. I would favour a system of community consultative committees for each area in the region. Individual councillors would be part of this process and bring issues and concerns to the board room of the regional council. I believe the new council must always be sensitive to local concerns and that we can all work together for the benefit of the region. Cr Barry O’Shea Candidate for mayor of the new regional council

Time to revisit the problem Sir — The recent poll on forced council amalgamations certainly showed that the voters (citizens) of the affected shires overwhelmingly rejected the State Government's laws by 78 per cent to 22 per cent. If only an election could be won or lost on a landslide of this percentage. Look at Flynn — won by 253 votes — 50.16 per cent to 49.84 per cent. I find it incomprehensible and an insult to our democratic rights that the Bligh Government is still treating us with indifference and utter contempt by ignoring these figures. Anna Bligh is to be congratulated on taking on the bureaucrats in our ambulance service to give us more

PUBLIC OPINION:

Vibrant, sustainable communities are at the heart of a new skills strategy.

We need the skills and the strategy Sir — It is an interesting time ahead and an equally important time. The Surat Basin is going to take off, there’s no question, and communities are going to have to find ways to cope without local councils. If we don’t find ways to adapt, these major projects are going to pass us by without any benefits for locals. That is why the continuation of a skills formation strategy is so important. It was absolutely imperative that the Western Downs Development Group found a way to lock in what has been so successful over the last three years. We need workers for projects like power stations, gasfields and infrastructure. We also need workers for the industries so important to servicing growing towns and populations. The Surat Basin skills development strategy will find ways not only to attract these people to jobs, but to communities. Transient workers bring very few benefits for the short time they are in a community. But “troops” at the coal face. This is the kind of leadership we need and surely she can listen again to the people (voters) on this diverse and important amalgamation issue. She would endear herself to an awful lot of rural voters.

if workers can’t be found locally, that is where companies will have to turn. If we attract people to our towns — to live, work and play over the long term — that will lead to more vibrant, sustainable communities. But before the need to attract people, maybe most importantly the skills strategy will find ways to upskill and train locals. It is important to also assist our current businesses and industries to adapt to these new and demanding times of the labour market and how it will effect us all. We must find ways for our long established and important agriculture sector and the resource sector to work together. The skills strategy will focus on finding and assisting local people and businesses to find ways in working with the resource sectors. I feel only then the true key to realising the full potential of the Surat Basin will happen. This is why it is so crucial we have this strategy locked in for another three years. Greg West President Chinchilla Economic & Tourism Development Association

Congratulations to Chris Trevor on winning Flynn in a very close contest. His electorate contains the present shire of Taroom that will be split in two in one of the most amazing and impractical decisions by an “expert” committee. We hope that he can see

How do you envisage Wandoan in 10 years time?

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 8

Chris Guteridge “I don’t know. If it goes like Rolleston or Springshaw, where the energy boom didn’t really have an impact than it won’t change much. But it has already had an impact on the land value around here.”

Megan Bradshaw

Darryn Jones “That’s the question isn’t it, It’s hard to say. The council around here needs to spend more money on the infrastructure and put the money where it’s needed.”

“Because of the energy industry, there will be more businesses, but I don’t think there will be many locals left since the government is taking away people’s land and a lot of them are against it.”

Surat Basin NEWS Thursday 24 January 2008

Vince Harris “The country people will be flat bambicky trying to make a living. This energy business is driving the cost of living up all the time.”

Building a future

Lumpy development

Shared benefits

Becoming sustainable under the headline issues of today Michael Roche, QRC

But region continues to move forward in a positive, upward trend Howard Hobbs, MP

Cutting back on the pitfalls for the benefit of a cross-section of industries Bruce Scott, MP

Resources sector controlling its destiny I

n years to come, 2007 may well be distinguished as the year in which the Queensland resources sector took firm control of its own destiny. From the QRC perspective of representing the interests of almost 150 companies involved in minerals and energy production in Queensland, there was no stronger evidence of industry commitment to building a sustainable future than under headline issues such as climate change, education, training, business infrastructure and community development. It is clear that enduring benefit from Queensland's rich mineral and energy resources will hinge on the actions taken now to meet a host of customer expectations. Nowhere is this more acute than in seeking to match ballooning global demand for electricity with substantial reductions in carbon emissions from proven energy technologies that have delivered great prosperity to Australia, particularly over the past 50 years. By 2030, global electricity demand is forecast to double and the bulk of that increase will come from developing countries in Asia. Many of these countries will look to Queensland as a potential source of that additional energy. Along with its proven 300-year supply of high quality coals — currently worth around $18 billion a year to the state's economy — we also have expanding inventories of coal seam gas and uranium as the result of new exploration. The challenge for us all is to continue to maximise Queensland's and Australia's resource-based wealth while transitioning to a low-emission economy. However, the coal industry has taken on additional responsibility by supporting the demonstration of new technologies that offer a fundamental, low-emission change in the way electricity is produced from from coal. The COAL21 Fund Levy was struck voluntarily by coal producers in Queensland and New South Wales in 2006. The first of its kind anywhere in the world, the production levy is expected to

COMMENT Michael Roche Chief Executive Queensland Resources Council

... the important message we continue to hear is that the demand pool is bigger, and growing. raise around $1 billion over the first decade of operation. Alongside of a host of other international commitments, the export coal industry is backing Australia's ability to deliver technology of global significance for the environment, and in turn, deliver long-term security for the industries underpinning our economy. The fund has earmarked around $600 million for projects in Queensland. Supported by a $300 million investment from the State Government, there's growing confidence that Australia's greatest contribution to reducing global greenhouse gas emissions could be in the form of breakthrough technology. In one example of the cooperative approach being taken, the coal industry and federal and state governments are providing almost $150 million to support

the demonstration of a revolutionary ‘oxyfuel' power plant at CS Energy's Callide power station near Biloela. One of the prime attractions of this technology is its potential for retrofitting to Australia's existing coal-fired power station fleet, currently valued at some $40 billion. Industry is also working with the Queensland Government on an assessment of coal gasification technologies, including a detailed examination of the ZeroGen proposal also in central Queensland. In contrast to the doomsayers grabbing media headlines, the application of new electricity production technologies to the most abundant and reliable fuel on earth is being viewed as part of the solution to both climate change and energy security in a world where almost a third of the population still doesn't have access to electricity. In another partnership with the state government, the QRC and member companies are taking the challenge of the skills shortage head-on with the Queensland Minerals and Energy Academy now an integral component of 18 secondary schools around the state. Its aim is to win the hearts and challenge the minds of students in those schools and assist them into resource sector careers. Academy hubs at Mount Isa, Moranbah and Gladstone provide practical coordination and in-school oversight of the $1 million a year academy's progress. The academy and the Queensland Mining Industry Skills Centre are also key components supporting an ambitious program to increase the number of indigenous people employed by the resources sector. Under a formal agreement, the QRC, its member companies and the state government have committed to a program aimed at making indigenous communities more economically and socially sustainable through greater engagement with the resources sector. Also on the recruitment front, the University of Queensland is reporting encouraging growth in the proportion of women undertaking second-year mining engineering. Under a 2006 Women in Resources

Positive upward trend for region elcome to the first edition of the Surat Basin News for 2008. Since the last edition I have attended the opening of the Origin Energy Darling Downs Power Station at Braemar. This project is significant to our region as it links two parallel activities. One being the expansion of the coal seam gas (CSG) production at Spring Gully and this supply source will later be supplemented by the development of Origin's CSG Walloons fields near Chinchilla. Fuel for the power station will be processed at Spring Gully CSG gas processing plan and then transported through an existing gas pipeline to Wallumbilla. A new $90 million 200km pipeline will be constructed from Wallumbilla to the new Darling Downs Power Station site. I understand there are some landholder concerns in relation to this pipeline and I have been working with both parties to try to resolve these issues. I do believe the State Government, who is a significant landholder in the Surat Basin, could play a more positive leadership role in relation to the positioning of pipelines, powerlines and other associated infrastructure. I am disappointed that the State Government takes the attitude that oil and gas infrastructure should be placed on private land rather than state owned land or forestry. It would make a significant difference to many projects if the State Government would allow access to state owned land or designated infrastructure corridors within that state owned land. I intend to visit more of the significant coal and gas projects in my electorate throughout 2008 in particular developments in the gas industry at Fairview north of Injune, the Kogan Creek Power Station and the Condamine Power Station which

COMMENT Howard Hobbs MP Member for Warrego

.... the attitude that oil and gas infrastructure should be placed on private land rather than state owned land or forestry. is in its initial stages of construction. Development continues to progress across the Surat Basin, however the development can be described as lumpy as projects commence and complete in various communities on various different timelines. Overall there is a positive upward trend for the region across many sectors. As local member I have regular contact with many of the oil and gas companies and their associated service companies. I look forward to continuing a strong working relationship with them.

A bright future ahead N

Action Plan, QRC members committed to doubling the ratio of women working in nontraditional sector roles by 2020. Following QRC's latest gender survey of member companies, just over 11 per cent of our workforce is female, and in traditionally male-dominated employment areas, women make up seven per cent of workers. While total employment in the Queensland resources sector over the past 12 months grew by just over 11 per cent, female employment was up by almost 16 per cent in mostly male-dominated areas. The QRC also looks back on 2007 with pride for the commissioning with the state government of an independent review of the Goonyella rail corridor servicing the Bowen Basin coal industry. Previously the subject of much conjecture and uncertainty in the face of record demand from customers, all the players from mine to port now know what needs to be done and what timeframes are required to address them. The coal industry and Queensland can't afford the annual recurrence of $1 billion in lost sales because of supply chain shortcomings. Of direct relevance to the future of the North West Minerals Province around Mount Isa and the proposed Northern Economic Triangle are the reliability and cost of basic infrastructure services. Energy and transport deficiencies identified by QRC members are now clearly on the state government's policy radar. In 2007, the QRC also enhanced its role in social policy development by working with governments to help improve the ‘livability' of resource sector communities. The formulation of a shared responsibility framework for resource communities will underpin future efforts. In 2007, the value of production from the Queensland minerals and energy sector passed the $25 billion mark for the first time. Most expect that record mineral prices are going to come off the boil as supply catches up with demand but the important message we continue to hear is that the demand pool is bigger, and growing. That's a message Queensland can take to the bank.

ow that 2008 is upon us it is with much anticipation that we look forward to the development of the Surat Basin and the benefits it will bring to nearby communities. Farmers have long thrived on the agricultural wealth of the Surat region and soon the mining industry too will enjoy the rich resources provided by the area, bringing with it a profound change to this important part of Queensland. The development of the Surat Basin will provide numerous employment opportunities, attracting small businesses and families to the local towns and in turn boosting the local economy. However, during this time of significant change it is important to not forget the region's farming communities. Many farms have been held within the same families for generations, and mining companies will need to recognise the strong emotional connection these farmers have with the land.

Surat Basin NEWS Thursday 24 January 2008

COMMENT Bruce Scott MP Federal Member for Maranoa

The coal industry must work cooperatively with communities to ensure impact on the farming sector is minimal. As both the nation's and state's largest export, coal is a key contributor to the economy and it is important we continue to utilise Australia's wealth of resources. Of course, the serious issue of climate change must also be addressed and scientists are working hard toward an affordable solution in which coal can still be used as an energy source without adversely impacting on the environment. As the industry establishes itself in the Surat Basin, I am sure additional opportunities for the use of coal seam methane gas will develop. It is important we find a viable way to utilise the water by-product, rather than see it wasted through evaporation. I will observe with much interest the many new opportunities and wealth the mining industry will bring to the region. It is my hope that these benefits will be shared by all communities in the Surat Basin.

PAGE 9

Surat Basin News

World first weeks away

THE NEWS R ESOURCES

Linc Energy pushes forward

QGC begins construction

PAGE 11

Investment set to grow The Darling Downs Power Station and associated Surat Basin investment

PAGE 13

New day for gas company Sunshine Gas to join the ranks of LNG exporters

PAGE 16

The project we had to have Kogan Creek and the lessons the town of Chinchilla learnt

PAGE 10

Marking the start of construction on Queensland Gas Company’s Condamine Power Station at last year’s sod-turning ceremony are Austrian Energy and Environment managing director Tony Sheehan, Barunggam group representative Deidre Daylight, QGC cultural heritage officer Joanne MacNeil, QGC general manager Leon Devane and Murilla Shire Mayor Roderick Gilmour. Queensland Gas Company’s (QGC) held a sod turning ceremony to mark the commencement of construction of its Condamine Power Station. With the initial stages of construction now underway, QGC is well on track in becoming an integrated energy supplier. The 140 megawatt, coal seam gas (CSG) fired plant is situated 8km east of Miles. The first stage of the power station is scheduled to be completed by

February 2009, when QGC expects to commence commercial sale of opencycle generated electricity to the National Electricity Market. Members from the Barunggam group, the traditional owners of the Condamine Power Station site joined the Mayor of Murilla Shire, Mr Roderick Gilmour in the welcoming ceremony. Austrian Energy and Environment was selected to build the combined cycle power station through an

Taking advantage of a strengthening market Queensland Gas Company (QGC) has entered into a hedge with AGL Energy for approximately 66 per cent of the Condamine Power Station output for the first three years. The strike price for the hedge takes advantage of the current strength in the electricity market by locking in pricing for three years that is about 40 per cent higher than pricing assumed for financing purposes. The hedge is on an as available “generation following” basis which reduces the risk to QGC if it is unable to generate electricity at any particular time, and applies to only “sent out” electricity which preserves all potential value available through Gas Electricity Certificates (GECs). “The hedge entered into with our strategic partner

AGL Energy is for only 66 per cent of the Condamine Power Station output, but it covers all of our payments under the tolling arrangement in those three

value of our strategic relationship with its largest shareholder (AGL) and demonstrates the commercial value of QGC’s vertical integration and on-site

“This enables QGC to take advantage of the expected price volatility during those years in the knowledge that our costs have already been covered.” years. Additionally, because it is a generation following hedge, it does so with minimal risk to QGC,” QGC managing director Richard Cottee said. “This enables QGC to take advantage of the expected price volatility during those years in the knowledge that our costs have already been covered. “QGC sees the hedge as a further illustration of the

Surat Basin NEWS Thursday 24 January 2008

electricity generation strategy.” AGL's managing director Michael Fraser said that the deal worth about $80 million over three years would take effect in the first quarter of calendar 2009 and further bolster the company's strong Queensland position. The transaction has been structured as a financial derivative with no

upfront capital requirements. “This transaction enhances our already strong position in the Queensland energy market. “Complementing our investments in QGC, Sun Gas and Powerdirect, this transaction builds on AGL's purchase of the dispatch rights from the Oakey and Yabulu power stations, the latter being a key component of the AGL-Arrow joint venture that last week acquired Enertrade's gas merchant business,” Mr Fraser said. “The structure of this transaction delivers value for both AGL and our strategic partner QGC. By setting a three-year price for 66 per cent of the capacity, QGC has essentially locked-in its financing costs for the entire plant for this period and is well positioned to take advantage of any price volatility with the residual capacity.”

RESOURCES

Darling Downs Power Station • •

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Driving regional development Origin Energy’s investment into the Wambo Shire resulted in programs promoting and creating regional development. Origin will fund two new community skills scholarships and a driver training program for learner drivers at schools or the agricultural college in the Dalby region each year The scholarships offer financial support of up to $13,500 to people and their employers to take up a school-based or full-time apprenticeship in any trade they choose. It does not have to be linked to the energy sector. Apprentices are given a bonus incentive as part of their financial package to stay with their employer for 12 months after being accredited. The objective is to encourage them to stay in the local community. Students from years 10 to 12 who attend the local schools and agricultural college in Dalby will be able to participate in the driver training program. Origin will subsidise the cost of the program, which would normally cost $280, so young people will only have to pay $40. The objective is to help deliver a safer community by teaching young people to be better drivers. Further information is available at www.originenergy.com.au/maranoa. Origin expects to open applications for community skills scholarships in early 2008.

The sod turning ceremony held late last year at Origin’s Darling Downs Power Station site west of Dalby.

630MW gas-fired power station The biggest combined cycle gas-fired power station in Australia Enough power to supply the equivalent of 400,000 homes Construction worth $780 million Saving 2.5 million tonnes of greenhouse gases a year — equivalent to taking 600,000 cars a year off the road; Air cooled using less than 3 per cent water that a conventional water cooled coal-fired power station Commissioned in early 2010; Workforce of 300 people during construction — up to 25 people when fully operational It will consume up to 44PJ of gas a year, which will be sourced from Origin's extensive coal seam gas reserves at Spring Gully and the Walloons; The development of gas fields, associated pipeline infrastructure and other projects costs related to the Darling Downs Power Station will be about $500 million. The development of the gas fields and associated infrastructure will employ an average of 140 people during the construction phase and up to 30 people once fully operational.

Origin to expand its Surat investment Origin’s $780 million gas fired power station and all the added frills. Construction continues on Origin Energy’s $780 million gas fired power station on the edge of the Wambo Shire. In October last year, Queensland Premier Anna Bligh marked the start of work on the latest Surat Basin coal seam gas project. The sector has been pioneered by companies like Arrow Energy, Origin Energy and Queensland Gas Company. The 630-megawatt combined-cycle power station will be the largest of its kind in Australia, generating enough electricity to meet the needs of 400,000 homes. It will emit half the emissions of a similar sized coal-fired power station, a saving equivalent to taking 600,000 cars off the road every year. “I’m very happy to see a cleaner form of energy out here on the Darling Downs,” Ms Bligh said at the recent ground breaking ceremony. Origin’s Darling Downs Power Station adds another notch to the State Government’s 13% Gas Scheme, launched in 2005 to boost the state’s gas industry and reduce greenhouse gas emissions. “Gas-fired energy is an exciting fuel

source that has created a whole new industry in the smart state and already, coal seam gas projects have yielded around $1 billion worth of

“As a result of this investment, Origin sees itself as a long term member of this community.” development across the state,” Ms Bligh said. “We expect this investment to continue at more than $160 million a year and this means local jobs and a further boost to our regional economy.” The ground breaking ceremony heralded the start of around three years

Surat Basin NEWS Thursday 24 January 2008

of construction that will see 550 workers living temporarily on the outskirts of Dalby. Gas will be piped from Origin Energy’s gasfields in the Surat and Bowen basins, including the Walloons in the Murilla Shire and Spring Gully near Roma. But the flow on effects will not be limited to the construction of the Darling Downs power station and associated infrastructure. Origin Energy managing director Grant King said the $780 million investment in the Surat Basin was part of a $1.5 billion long term plan. “As a result of this investment, Origin sees itself as a long term member of this community,” he said. “In recognition of this, Origin will fund two new community skills scholarships and a driver training program for learner drivers at schools or the agricultural college in the Dalby region each year.” Ms Bligh congratulated Origin on its community initiatives. “This is a great way for Origin to invest in and work with the local community and I congratulate the company on its innovation,” she said.

PAGE 11

RESOURCES

“The relentless execution of Arrow's high margin strategy by its 160 strong workforce is opening a promising new era of productivity for the company.”

Expanding and value adding New markets and growing demand for Queensland gas has Arrow Energy entering a new era of productivity Arrow Energy has moved to value add to an already impressive line up of Surat and Bowen basin gasfields by expanding into the LNG market. Last year, Arrow signed two agreements for the development of two liquified natural gas trains in Australia. In April 2007, the company agreed to supply two petajoules per annum over 15 years from its Daandine field in the Surat Basin to Liquegas Energy of Norway for use as a feedstock at a proposed small-scale LNG plant. First gas supply is expected by early 2009. Liquegas intend on building and operating Australia’s first small-scale LNG plant. The gas will be processed in a 100 tonne per day plant, built at Daandine, 35km west of Dalby and the LNG product will be transported by road to industrial, transport and power generation customers in Queensland and New South Wales.

A month after the initial agreement, Arrow signed a heads of agreement with LNG International to supply 55PJ per annum for 12 years from 2011 to a proposed large-scale LNG plant at Gladstone. The agreements mark a new era for the company. “The relentless execution of Arrow's high margin strategy by its 160 strong workforce is opening a promising new era of productivity for the company,” a company spokesperson said. “It continues to progress plans towards an Initial Public Offering of international assets and interests on a future overseas stock listing.” Arrow has four producing projects which account for around 20 percent of Queensland's overall gas production — one in the Bowen Basin near Moranbah and three in the Surat Basin near Dalby. The company plans to advance a number of highly prospective blocks

over time in reaching its net production target of 116 petajoules (PJ) per year by 2012. The company has access to 469 2P net reserves in the Surat Basin and 250 2P net reserves in the Bowen Basin. Arrow expects to have access to 1550 PJ of 2P net reserves by the end of fiscal 2008 following an exhaustive exploration and certification program

launched in July 2007. “Arrow is now working hard to realise the potential of its asset portfolio.” the spokesperson said. “While continuing its focus on being a low-cost producer, the company is targeting higher margin sales by increasing its investment in new countries and new products where gas is more exposed to oil pricing.”

Arrow in the Surat Arrow operates and has equity interest in three coal seam gas projects in the Surat Basin. The company has an office in Dalby staffed by 39 full time employees and serviced by around 40 sub-contractors from the local region. Arrow has initiated the development of a new reverse osmosis plant at Dalby to treat coal seam gas water from nearby gas fields. The company plans to supply up to five megalitres per day for household, agricultural and industrial use. More than 1387 Olympic swimming pools of water will be processed each year, providing drought relief to Dalby. The $16 million plus plant is scheduled for construction in the first half of this year and is being jointly funded by the state and commonwealth governments, Dalby Town Council and Arrow Energy. Arrow Energy will supply water produced from its Tipton West coal seam gas operation to the plant at no cost. The untreat-

ed water, which is slightly saline, is currently being put to good use in coal washing, and cattle feedlots. Irrigation The development of two additional reverse osmosis plants is currently being considered in the Dalby region to allow irrigation use of Arrow's coal seam gas water. Salt Water Fish Farm Arrow Energy is currently conducting a research project to investigate the viability of farming salt water fish in its coal seam gas evaporation ponds. Fifteen thousand fingerlings have been successfully raised over the past year by the Department of Primary Industries and Fisheries in coal seam gas water at Bribie Island. The fingerlings, which comprise Mulloway, Barramundi and Mangrove Jack species, are due to be transplanted back to Arrow's Kogan North evaporation pond where the trial will continue.

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Surat Basin NEWS Thursday 24 January 2008

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LNG project to transform Sunshine into major Australian producer and exporter

Sunshine Gas managing director Tony Gilby and exploration manager John Phillips at Lacerta.

New day for a bright Queensland company Following completion of a pre-feasibility study, Sunshine Gas Limited has signed a Heads of Agreement (HOA) with Sojitz Corporation to jointly develop a mid-scale liquefied natural gas plant at Gladstone. The proposed 500,000 tonne-a-year plant will be scalable and supplied from Sunshine’s Lacerta Coal Seam Gas (CSG) Project (ATP 795P & 767P SHG 100%) which currently has 3P reserves (Proven, Probable and Possible) of 1,097 petajoules, including 469 PJ in the 2P category and 44PJ in the 1P category. Lacerta’s 1P and 2P reserve volumes are expected to significantly increase over time as a result of further production programs to be undertaken by Sunshine Gas. Sunshine Gas and Sojitz are also discussing the possibility of using gas from other CSG fields owned by Sunshine to supply additional feed stock to the project. Under the HOA, Sojitz will have a 70 per cent operating stake in the LNG plant, with Sunshine Gas holding the balance. Sunshine Gas and Sojitz are also contemplating the direct upstream involvement of Sojitz in the Lacerta Project at up to a 20 per cent interest level. Sunshine Gas managing director Tony Gilby said work on permitting by consultant RLMS would start immediately while Front End Engineering and Design (FEED) was being scheduled to begin during the first quarter of 2008. Mr Gilby said the parties aimed to have the project’s bankable feasibility study completed by the end of calendar 2008 and production underway during the first quarter of 2012. “Sojitz is a major player in the global energy market and has brought together a first-class international engineering firm, as well as a leading energy marketer (LNG Japan), to deliver the

“Apart from the creation of hundreds of construction and permanent jobs, the development of this project would generate significant export income for Australia...” key project elements,” he said. Mr Gilby said the project had the potential to be of great economic significance to Sunshine Gas by transforming the company into a major Australian energy supplier and exporter. “Apart from the creation of hundreds of construction and permanent

jobs, the development of this project would generate significant export income for Australia and open up Queensland’s CSG gas supply market to the benefits of international pricing,” he said. Mr Gilby said the parties were in the advanced stage of negotiations with the Queensland Government to secure an appropriate site in Gladstone for the LNG plant. “The plant, designed initially to produce 500,000 tonnes of LNG a year, will be smaller than others that have been publicly proposed to date,” he said. “However, we think this factor, combined with the calibre of our partner Sojitz Corporation and that of the other participants, will deliver a significant strategic advantage by allowing us to expedite development.” The decision to proceed with the various aspects of the project is subject to respective board and shareholder approvals of Sunshine Gas and Sojitz Corporation.

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PAGE 13

LOCAL RESOURCES NEWS

Opening up commercial expansion CSIRO partnership paves the way to large scale UCG demonstration Work is scheduled to start this month on Carbon Energy’s underground coal gasification demonstration plant 55km west of Dalby. The 100-day demonstration plant will be the largest of its kind in Australia and was fast-tracked following Metex’s acquisition of CSIRO’s 50 per cent share in the joint venture company. The $20 million plant is scheduled to begin operating by the middle of the this year. The trial will involve an initial 1PJ per

annum, UCG synthetic gas module, sufficient to provide up to 10Mw of power per module. Recently, Metex managing director Ian Walker said the transaction with CSIRO was one of the most significant in the company’s 14-year history. He said it signalled the company’s decision to focus on the UCG venture, which will initially be trialled in Queensland and reposition Metex as a clean coal energy company.

Kurrajong Park Estate Stage 2 • • • • •

Carbon Energy will use the controlled retraction injection point (CRIP) process at its Bloodwood Creek demonstration. Under the joint venture company, engineering design and costings had been completed for the construction of the demonstration plant, which is located at Bloodwood Creek. Metex has announced an inferred resource of 100 million tonnes of high quality coal at the site, which is estimated to contain around 2000 petajoules of energy, with about about 1000 petajoules potentially recoverable. Due to the depth of the coal, less than five per cent of the energy could be unlocked using alternative coal methane extraction methods. Compared with similar operations that use verticle bore holes into the coal seam, Carbon Energy’s UCG extraction technology features an alternative controlled retraction injection point (CRIP) that uses sophisticated drilling techniques. Parallel production and injection wells are used along with a separate injection well, and minimal drilling is needed particularly for deeper seams. Metex has three defined commercial development options with different levels of capital expenditure, all offering the potential to generate substantial annual cash flows and returns: • Direct syngas sales to market — $87M capex, $28M EBIT per annum • Syngas-fuelled 130MW power station — $210M capex, $62M EBIT per annum • 8000 bbl/day Liquid (syn) fuels plant — $658M capex, $288M EBIT per annum. Mr Walker, said UCG was a process which offered enormous potential for the development of a new generation of clean energy projects. “Although there are inherent risks, if the demonstration plant and trial are successful, our next objective will be to move to addressing the three commercial options

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Surat Basin NEWS Thursday 24 January 2008

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Back to where it all started The reinvigoration of underground coal gasification in Australia could turn full circle if a company’s latest venture proves successful. Cougar Energy started exploratory drilling at its Kingaroy site in November ahead of the planned installation of the first three process wells, and gasification, later this year. Managing director Dr Len Walker founded Linc Energy and was involved in a Chinchilla-based UCG project and subsequent pilot burn. The success of the test has led to the renewed interest in UCG technology and the initiation of a number of new projects in Australia and internationally. Dr Walker formed Cougar Energy in February 2006, and within three months had acquired farm-in rights to a number of coal leases held by others in Queensland and the Surat Basin. Dr Walker said a return to the Surat Basin would be dependant on the successful realisation of the Kingaroy project. Cougar Energy has already established that an area of at least 2.5km² exists within the project area containing a coal seam with a minimum 11.8metre thickness at a depth of at least 157 metres. “Cougar Energy has a number interests in a number of different places,” Dr Walker said. “But, firstly the success of our Kingaroy project is a significant factor in the overall development of the company. “If the Kingaroy project is successful — even during the time we’re developing it — we will be looking at developing the significant coal resources in the Surat Basin as well. “We haven’t taken an interest in those leases for no good reason.” Dr Walker said Cougar Energy had a comprehensive understanding of Surat Basin coal resources due to the company’s geology team and the Chinchilla project. But he added any development in the area would have to be accompanied by exploration drilling. Cougar Energy announced last year that it had signed a new Memorandum of Understanding with Ergo Energy Technologies of Canada for the provision of its proprietary UCG technology. The MOU further cemented the close working relationship developed between the management of both companies over the past 10 years. Detailed license agreements are expected to be completed in the coming weeks. Dr Walker and Dr Michael Blinderman of Ergo Energy were together responsible for the conception, development and operation of the successful Chinchilla test burn which gasified 35,000 tonnes of coal between 1999 and 2002. Dr Walker said Cougar was looking forward to working with Ergo Energy on the initiation of gasification shortly after completion of the first Kingaroy process wells, and on the subsequent development of a commercial power project.

“...the success of our Kingaroy project is a significant factor in the overall development of the company.”

Weeks away from world first Leading Australian clean coal technology company Linc Energy should be producing barrels of ultra-clean, sulphur free diesel from Chinchilla coal by March Linc Energy should be producing ultra-clean diesel by March and well on to the way to churning out seven million barrels a year. Construction on the company’s gasto-liquids demonstration plant near Chinchilla is scheduled for completion by the end of February. It will be the world’s first GTL facility operating on underground coal gasification. The $6 million plant holds the final pieces to Linc Energy’s world leading commercial plant, which will produce 20,000 barrels a day. The demonstration is expected to run for between two and three years but Linc Energy managing director Peter Bond said work on the commercial plant would still push forward. “We’re not relying on the demonstration as proof before we build the commercial plant,” he said. “Actually, we’ve already started the initial design of the commercial plant with the idea being that about three quarters of the plant is using known process technology already in our grasp. “The last quarter or so we will get that knowledge from the pilot.” Mr Bond said while he expected the technology to be locked in within 12 months, the demonstration would continue to allow for fine-tuning.

“By the end of the year most of the technology will be successfully absorbed but that won’t stop us continuing the demonstration process,” he said. “We will be looking at expanding our knowledge and expanding the technology.” Linc Energy has a number of on-site, “high value” options in the pipeline to expand its operations, including a 200MW power station. But for the moment, sulphur-free diesel is top the agenda. “The primary focus is creating diesel from coal and that’s where we want to go,” Mr Bond said. “Our big focus is putting most of our material into turning coal into gas and that gas into liquids.” Components of the demonstration plant started arriving from South Africa before the end of last year, with the majority now on site. The modular design ensures ease of erection, commissioning and maintenance. The plant is over eight stories high and 70 metres long. Mr Bond said engineering and fabrication had been out sourced to South Africa due to the country’s leading engineering experience in GTL and the Fischer Tropsche reactor. He said the commercialisation of the Chinchilla project would open vast opportunities for the ASX-listed company.

Linc Energy managing director Peter Bond. While Linc Energy would initially target 20,000 barrels a day from the plant, Mr Bond said further expansion was a real possibility. “We want to take steps to build up and, the way we’ve been building up the site and building on our coal resources, there is definitely room to move to expand,” he said. “That’s our target — the ability, if we choose, to expand.”

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PAGE 15

RESOURCES

Our Kogan Creek A reflection on the three years that brought 1000 people to Chinchilla for the largest and most ambitious Surat Basin project to date

work with the large resource companies. “An important realisation that came about because of Kogan Creek is that local businesses learnt big business and these big companies are not necessarily to be feared,” he said. “CS Energy and the companies involved proved they can be good corporate citizens in the town and their overall impact can be very positive.” Over the next 12 months, construction and design will continue on projects like Linc Energy’s coal to liquids pilot plant, the billiondollar Surat Basin Railway, and Queensland Gas Company’s Condamine Power Station. After three years of Kogan Creek construction, Cr McCutcheon said local businesses would be better positioned to benefit from the financial boon of resource-based development. “I think business people and developers realised early in Kogan Creek that there were opportunities out there, but it took a while to figure out how to capitalise on those opportunities,” he said. “Before Kogan Creek it was all an unknown quantity but now, even with the big projects, our business owners, community groups and developers realise there is opportunity there.” Greg West grew up in Chinchilla. Today, he is a successful entrepreneur and president of the Chinchilla Economic & Tourism Development Association.

Queensland Premier Anna Bligh, Mines and Energy Minister Geoff Wilson and Kogan Creek Power Station project manager John Harten at the official opening.

KOGAN CREEK B Kogan Creek B first became public knowledge in late 2005 when CS Energy announced planning had started for the second coal fired power station. If it were to proceed, Kogan B would be located on the same site of the current power station. In opening Kogan Creek, Queensland Premier Anna Bligh said the second power station was still under consideration. “(Kogan Creek B) is in the melting pot moving forward to being in a position for final assessment in the not too distant future,” she said.

ith the 1000-person workforce long gone and the Kogan Creek Power Station now a permanent fixture on the local landscape, Chinchilla is preparing for the next wave of resource-based development. This preparation has been helped by the experiences that came with living, working and playing around what was one of the largest construction sites in Australia. Chinchilla Shire Mayor Bill McCutcheon entered office in 2000, only weeks before the Kogan Creek project was mothballed by the State Government. It was one of a number of delays since the project was first proposed in the early 1990s. But his re-election in early 2004 ensured he would be at the frontline guiding Chinchilla through a challenging time, but one that ultimately proved rewarding. “There were challenges — no one would doubt that — but it was also an extremely industrious time and one Chinchilla came out of a lot stronger,” Cr McCutcheon said. He believes with future Surat Basin developments on the horizon, Chinchilla is better prepared and positioned to deal with the inherent issues. Number one on the list is the ability to

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lessons “I think the town knew what was coming but the scale of the project and the impacts on the community surpassed expectations.”

CS Energy acting chief executive Tony Andersen, Queensland Premier Anna Bligh, Mines and Energy Minister Geoff Wilson and Siemens Australia and New Zealand managing director Albert Goller on a tour of the Kogan Creek Power Station. implemented and changes were made to ensure we, as a town, were able to first cope with, and then benefit from, such large-scale and ambitious development. “All that hard work won’t be wasted. The Surat Basin has a bright future ahead of it and as a town we are positioned to take a leading role on a regional stage.” In October 2007, CETDA joined with State Development on a tour of Gladstone, Emerald and Mackay. The trip focussed on regional collaboration and building local capacity to cater to the needs of major construction. Mr West said the tour was crucial to taking the next step beyond Kogan Creek construction. “For the last three years we saw first-hand what the Surat Basin is capable of driving and, as a result, groups like CETDA and the chamber of commerce have stepped up and are really looking to the future,” he said. “Kogan Creek has come and gone and it may be a while before we witness a project as influential as that was.

He believes the local community adapted to the changing economic and social landscape better than expected, highlighting the stance taken by community groups. In mid-2006, CETDA in conjunction with Chinchilla Shire Council hosted a forum aimed at attracting investors to the town. Since then, the association has flown Chinchilla’s colours at lifestyle and investment forums across Australia. “I think the town knew what was coming but the scale of the project and the impacts on the community surpassed expectations,” Mr West said. “But to the credit of the community and council, strategies were

“But we know there is plenty more to come in terms of coal, gas and power projects and more than ever Chinchilla is going to be ready.” As CS Energy community liaison officer, Tegan Plant had direct input into how the community and companies worked together. She believes the three-year construction phase changed the outlook of the local business community. “In terms of local business, I think it proved the importance and value of thinking outside the square,” Ms Plant said. “The economic positives of the project showed businesses they didn’t have to be afraid of extending their business.” But Ms Plant admits the Kogan Creek Power Project was just one factor adding to the renewed confidence in the local business sector. “In a way, Kogan Creek just provided the impetus — the confidence came from the general resource activity across the whole Surat Basin,” she said.

PROJECT OVERVIEW The Kogan Creek Power Station is a 750 megawatt coal-fired power station that provides baseload electricity into the national grid. The adjoining mine will supply about 2.8 million tonnes of black coal to the power station per year via a four kilometre conveyor belt. The Kogan Creek Power Station features supercritical boiler technology, which delivers higher production efficiency and reduces environmental impact. The air-cooling technology results in 90 per cent less water than a conventional wetcooled power station.

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New company chief executive The CS Energy Board recently announced the appointment of David Brown as the new chief executive of the company. A chartered engineer, Mr Brown is currently CS Energy’s general manager operations and holds first class honours in a Bachelor of Science degree in natural gas engineering from the University of Salford in the United Kingdom. He has worked in the energy industry for his whole career, both in the UK where he was born and since 1997, in Australia. Mr Brown started his career with British Gas plc before joining Southern Electric plc at a time of significant change in the UK power industry.

Pty Ltd, a Hydro Tasmania subsidiary company. CS Energy chairman Stephen Lonie welcomed Mr Brown

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PAGE 17

Surat Basin News

A VERY REAL THREAT Wandoan landowners and their uncertain future

INFRASTRUCTURE Drought proofing Miles M

PAGE 19

The controversial Nathan Dam The future of the long delayed water project may not be known until 2010

PAGE 20

Acquisition act fair Queensland Minister defends his government’s land acquisition act

PAGE 22

Gateway to the world Export rail link another step closer with State Government declaration PAGE 18

urilla Shire Council has taken another step towards drought proofing the town of Miles. One of council’s last tasks in 2007 was the signing of a water agreement with Queensland Gas Company to begin a study into treating and delivering coal seam water to the town. QGC has a significant presence in the Murilla Shire, with gasfields to the south-east and construction starting on a power station to the east. The agreement is part of an overall strategy in which consultants Gilbert and Sutherland will provide advice on an integrated water strategy. Murilla Shire Mayor Roderick Gilmour said the strategy would look at ways to improving water usage efficiency, reduce demand and improve water supply security. He said one component of the water supply security plan was the proposal to accept and reuse treated coal seam water from QGC. But the realisation of the project would depend on its overall costs. “The signing of the agreement only commits Murilla Shire Council and Queensland Gas Company to further investigate this component in order to determine whether the project is economically feasible for both parties,” Cr Gilmour said. The agreement provides a maximum daily delivery of 1.5 megalitres of water from Queensland Gas Company. This figure is more than the township of Miles currently uses during the winter months (0.7 ML), but less than the maximum the township uses during the hot

Murilla Shire Mayor Roderick Gilmour. summer months (2.3 ML). QGC will make the treated water available at the delivery point which will be at the Condamine

Power Station site 8km east of Miles. Delivery will be via a new pipeline to be installed from the delivery point to the town. “The project has the potential to drought proof the township of Miles as well as provide for further urban/industrial growth,” Cr Gilmour said. “The beneficial use of coal seam water for urban purposes will also lessen the environmental impact that the storage of large quantities of waste coal seam water is having in this region as well as reduce the amount of water being taken from Dogwood Creek and council's artesian basin supply.” The exact cost of the Murilla Shire project cannot be determined until all studies are completed, which is expected to be done by late February 2008. Council will be seeking funding support for the project from the State Government. Chinchilla Shire Council and Dalby Town Council are also in negotiations with coal seam gas companies to begin similar alternative water supply programs.

“The project has the potential to drought proof the township of Miles as well as provide for further urban/industrial growth.”

Moderate energy sector growth to continue nder a ‘no new policies’ scenario, ABARE projects that Australia’s energy consumption would grow by 1.6 per cent a year to 2029-30’, ABARE’s executive director, Phillip Glyde said recently when releasing ABARE’s latest research report, Australian Energy: national and state projections to 2029-30. Under that scenario, Australia would become less energy intensive in this time frame as it moves to a more services oriented economy and continues to implement currently established energy efficiency and conservation measures. “Coal and oil would continue to supply the bulk of Australia’s energy needs, although the share of gas would be expected to increase strongly,” Mr Glyde noted. Natural gas

consumption would rise by 2.6 per cent a year over the outlook period to account for 24 per cent of total primary energy consumption by 2029-30, under this scenario. “Renewable energy consumption is also projected to increase but from a smaller base,” Mr Glyde said. With the support of only currently established policy measures, such as the Mandatory Renewable Energy Target, renewable energy would increase by an average annual rate of 2.4 per cent out to 202930. The transport sector is the largest consumer of energy in Australia at the end use stage, but its share of total final energy consumption would fall from 39 per cent in 200506 to 36 per cent in 202930, assuming no change in current policy settings. In contrast, with a

Surat Basin NEWS Thursday 24 January 2008

large number of minerals and energy mining projects expected to be commissioned, in the same circumstances the mining sector’s share of total final energy consumption would increase from seven per cent to 12 per cent over the same period. “Australia’s production of coal and gas is projected to continue to grow strongly,” Mr Glyde said. “So coal and, increasingly, LNG will continue to be major export earners for Australia.” With no change in current policy measures, coal exports would increase by more than two per cent a year to 2029-30 and LNG exports have the potential to grow by more than seven per cent a year.’ “Several new oil projects are expected to increase Australia’s crude oil production over the next few years,” Mr Glyde

commented. “However, in the longer term, the ratio of oil production to consumption is expected to fall, with Australia becoming more reliant on oil imports in the period to 2030.” ABARE’s practice in making these projections is to include policies only once they have been implemented. The implementation of new policies such as the introduction of an emissions trading scheme and an increase the Mandatory Renewable Energy Target to 20 per cent of electricity supply by 2020 will have implications for Australian energy consumption and production patterns in the future. However, since the policies have not yet been implemented, they have not been included in this set of projections.

INFRASTRUCTURE

“We are now rethinking the Nathan Dam as a supplier of water into the Surat Basin.”

Urban supply:

Mining demands:

Central Queensland towns, most reliant on sub-artesian bores, could supplement their supplies with water from the Nathan Dam.

Xstrata Coal’s Wandoan Coal Project is just one of the mines that are demanding the water for coal washing facilities.

LEFT: Natural vegetation and rock formations could be threatened if the Nathan Dam were to proceed. Photo by Darren Burton.

The Nathan Dam: A controversial necessity The future of the Nathan Dam may not be known until 2010 despite admissions without it Surat Basin development may be held back. SunWater has $2 million out of the State Government’s 2007/08 budget to carry out engineering and environmental investigations. Early non-intrusive studies have started with more detailed work to begin next month. The Nathan Dam will be located in the Taroom Shire on the Dawson River, 2km upstream from the Nathan Gorge. An Environmental Impact Study could be ready before the end of 2009 with a business case — costing in the vicinity of $16.5 million — possible by mid-2010. That report will determine whether the proposed 880,000 megalitre dam will proceed . On a recent visit to Chinchilla, Queensland Premier Anna Bligh said the Nathan Dam was critical to supplying mining demands in the northern section of the Surat Basin. The area is home most notably to Xstrata Coal’s $500 million Wandoan coal mine. Ms Bligh made the admission as she announced significant project status for the Surat Basin Rail. “The rail link can (go ahead) but the full potential of the Surat Basin cannot be realised without a significant and reliable water supply,” she said. “The Nathan Dam certainly provides that and we made a commitment at the election last year that we would move to put the Nathan Dam back on the Commonwealth Government’s approval agenda.” Ms Bligh said negotiations were occurring with the previous developer Babcock & Brown to obtain the pro-

Key project milestones Environmental studies

Late 2007 - 2008

Cultural heritage study

February 2008

Geotechnical investigations

Feb - June 2008

Additional geological work

April 2008

Environmental impact study

late 2009

Business case

2010

ject’s intellectual property. The move is to position the government as the proponent of the dam. She said the Nathan Dam was one of three projects critical to unlocking the resources of the Surat Basin. “You cannot realise the coal resources that are here without a reliable and secure supply of water, without a reliable and secure supply of energy and without the rail,” Ms Bligh said. In the Queensland Government’s 2007 Statewide Water Policy, $120 million was allocated to the Nathan Dam’s design and construction. That funding falls short of the estimated $363 million cost and is subject to Commonwealth approval under the Environmental Protection and Biodiversity Conservation Act 1999. The Nathan Dam has had a checkered past due to concerns over the environmental impacts it could have downstream. The Dawson River flows into the Fitzroy River which in turn feeds into the Great Barrier Reef.

Much of the opposition came due to the role the dam would play in Dawson Valley agriculture. But Ms Bligh admitted the project’s focus had changed. “The Nathan Dam was originally conceived as a dam to feed agricultural growth and it was knocked back by the Commonwealth because it would see run off from the agricultural sector into the sensitive areas of the Great Barrier Reef,” she said. “We are now rethinking the Nathan Dam as a supplier of water into the Surat Basin.” In the initial advice statement for Xstrata Coal’s Wandoan project it is estimated the mine could need around 5000 megalitres of water a year, mainly for use in the coal handling and preparation plant. The report’s author wrote the Nathan Dam was “the only currently viable alternative to groundwater”. However, the report went on to state that option would require use of an 80km pipeline.

“You cannot realise the coal resources that are here without a reliable and secure supply of water, without a reliable and secure supply of energy and without the rail.” Surat Basin NEWS Thursday 24 January 2008

Irrigation: Around 25,000 hectares of land could be irrigated by the Nathan Dam, with a focus on the cotton industry.

Controversy: Links between the Dawson River and its catchments, and the Great Barrier Reef have delayed the Nathan Dam for decades. PAGE 19

INFRASTRUCTURE

Acquisition work under way at Wandoan

Frustrating. Confronting. Emotion charged.

INEVITABLE The very real threat facing Wandoan landowners whose properties stand in the way of what could one day be Australia’s largest coal mine

he Waugh family property ‘Wodonga’ has a distinct place in what could soon become the site of Australia’s largest coal mine. But its standing in Xstrata Coal’s overall scheme does not exclude it from one of the most confronting aspects of Surat Basin development. Wodongo could be one of 40 properties acquired to free up 25,000 hectares of land to allow the Wandoan coal project to go ahead. Less than half of the required land would be actual mine area — the remainder to support the necessary infrastructure. While Xstrata Coal’s plans have been known for years, the extent of the $500 million plus coal project became apparent at a Wandoan public meeting held on July 9 last year. “We went to that meeting and it felt like you had your guts wrenched out,” Darryl Waugh said. His father drew the now 1190 hectare Wodonga under the Soldier Settlement scheme in the 1950s. Mr Waugh explains since the mid1970s a number of projects have been mentioned around the rich coal resources of the Wandoan area. He admits none have have appeared as inevitable as Xstrata Coal’s most recent ambitions. “We’d seen so many proposals start up then they never got enough momentum,” he said. “I suppose we were bit lucky — we’d seen so many that could start and then never started and I just thought; ‘I’ll be dead before this starts’. “I honestly feel it will happen this time. It’s got a totally different feel.” Wodonga is situated at the heart of Xstrata Coal’s three mining leases, covering 70 per cent of the total lease width.

PAGE 20

While according to Mr Waugh the coal under Wodonga is considered “economically unmineable” due to its depth, the property remains critical to Xstrata Coal’s plans. “We’re very important in the scheme of working the two leases together,” Mr Waugh said. “The latest is the infrastructure is going to be somewhere just around here.” While Mr Waugh knows the threat of acquisition is a very real one, Xstrata Coal will not make a decision

“We went to that meeting and it felt like you had your guts wrenched out.” on the fate of the Wandoan project until 2009. It is that uncertainty he is struggling to come to terms with. “The hardest part I have to deal with — you get a lot of emotional things too — but the hardest part is most likely we’re here now but it’s going to be 12 months plus before we know for sure what is really going to

happen,” Mr Waugh said. “That 12 to 18 months to me is going to be the hardest part. “Should you sell, should you not, should you do this...?” But in the months leading up to the decision, according to Mr Waugh there are a number of things landowners can do. He believes legal advice is a must. “I would advise people to get legal advice first, before they even value their land,” Mr Waugh said. “You’ve definitely got to have some legal advice because you’re playing with too big an asset. “For some people, it’s their total livelihood.” Information and knowledge is also critical according to Mr Waugh especially in negotiating a sale price. “I went out and researched my position and the legal side of what they can and can’t do, and where I fit in the overall picture,” Mr Waugh said. “Landholders need to research everything, find out how your place fits the whole picture, and find out exactly at the different stages of time when this will happen and that will happen.” But regardless of the final price or how prepared he is, Mr Waugh admits after more than half a century at Wodonga, leaving is going to be devastating. “It’s going to be hard to deal with because you’re not going by choice,” he said. “For some people their life is just buy a place, keep it for a few years, dress it up a bit, sell it and go somewhere else. “When they do that, that’s their choice. “But if we’ve got to leave, it’s not our choice.”

Surat Basin NEWS Thursday 24 January 2008

Xstrata Coal has started the necessary work to securing all affected properties under the government-enforced deadline of mid-2009. The 40 affected Wandoan landowners within a proposed development area of 25,000 hectares have spoken with company representatives. A number community meetings and consultation initiatives have also taken place. A project team member has been appointed to work directly with landowners as part of the overall valuation process and will be available and directly contactable for landowners. Xstrata Coal has also provided a free and recognised 24-hour confidential counselling service through CentreCare. “The project team is committed to open two-way communication and will continue to consult affected landowners, the local community and key stakeholders on an ongoing basis,” a company spokesperson said. Xstrata Coal is also working with the Queensland Department of Infrastructure and Planning (DIP), which has already conducted a landowner information briefing. The information briefing provided landowners with a forum to discuss and better understand their rights and the process of moving forward. The attendees included the Department of Mines and Energy, EPA and the Department of Natural Resources and Water which covered general land tenure issues around Wandoan. DIP is also coordinating the establishment of a Wandoan Growth Management Committee that will seek the input of all key State Government agencies, local government representatives and community stakeholders for the future development of Wandoan and surrounding regions.

Act fair: Minister On a recent visit to Chinchilla to open the Kogan Creek Power Station, Mines and Energy Minister Geoff Wilson responded to questions on land acquisition and the frustration of landowners in the Wandoan district.

The Acquisition of Land Act: “The legal arrangements and legal provisions that apply to acquisition and also access for mining set up fairness principals. We have the Land and Resources Tribunal which is now part of the Land and Environment Court. “In that independent, objective process, issues of compensation can be fairly worked out between the parties or finally determined by the land court. “That’s the appropriate mechanism for ensuring that fairness is a guiding principal in arriving at compensation outcomes.”

Landowner frustration: “I do understand and recognise that when new, major development proposals are brought to a community — whilst there are enormous economic advantages from those proposals like local jobs, local businesses — that there is a level anxiety amongst some about the impacts upon established and traditional livelihoods, especially around access to land issues. “So I do recognise that and it’s understood the process of approaching those issues is one where fairness is a guiding principal and matters of disagreement between landowners and mining companies wanting access to mining rights are best handled by the land court.”

INFRASTRUCTURE

With the study corridor for the $1 billion Surat Basin Railway in place, the proponents are now...

Locking in the line he private consortium behind the $1 billion Surat Basin Railway has started work on the final corridor to take the region’s coal around the world. Queensland Rail and consortium representatives have met with Taroom Shire Council and the Dalby Regional Council transition committee to pave the way for more in-depth studies. In November, the Queensland Government declared the missing link a project of state significance after a 1km-wide study corridor had been identified. While much of the proposed rail corridor follows existing road reserves, the most contentious area is around Wandoan. Two different routes — south and north of the town — have been proposed but Taroom Shire Mayor Don Stiller is adamant there is only one viable option. He argues the railway must pass by the south of Wandoan, the location of Xstrata’s Wandoan coal mine. Areas to the north have been identified for residential and commercial development. “We need all this infrastructure on the one side of town,” Cr

Stiller said. “It would be a disaster for the railway to be on one side and the mine on the other. The expansion of the town would be crippled.” Dalby Mayor Warwick Geisel welcomed the announcement of state significance for the Surat Basin Railway. “This rail line will bring benefits to everybody,” he said. “It’s just good news it’s been made a project of state significance because that will fasttrack it and, with Gladstone being turned into the country’s biggest coal exporting port, all the limitations of transport of coal through Brisbane disappear.” Construction will require up to 600 workers over 30-months. Dalby Regional Council Local Transition Committee chairman Ray Brown said the consortium had identified the Wandoan and Cracow districts, and Theodore as the sites for accommodation camps. Queensland Premier Anna Bligh said the railway would become a massive economic driver for Surat Basin towns and Queensland. “The Surat Basin is set to get a new gateway to the world with

Dalby Town Mayor Warwick Geisel, Queensland Premier Anna Bligh and Mines and Energy Minister Geoff Wilson at last year’s announcement of the Surat Basin Railway’s significant project declaration. the Southern Missing Link that will take the very large resources from this area to the

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Port of Gladstone,” she said. “This link is critical to ensuring that we realise the full potential of the Surat Basin “The Surat Basin is the next Bowen Basin of Queensland and we’re determined to get the infrastructure in place — that means rail, that means water, it means energy.” The railway’s consortium must conduct detailed environment, social, economic and engineering investigations as part of the EIS process before the final route can be identified.But Ms Bligh said the significant project status, which would expedite the approval process, highlighted the project’s importance to Queensland. “This is a very significant investment in rail infrastructure,” she said. “It will be a very big investment into the region but it’s a critical piece of infrastructure that connects the Surat Basin to the export port at Gladstone. “That means further development here, big opportunities and ultimately the potential to drive a $10 billion economy here in the Surat region.” The Coordinator-General should release draft Terms of Reference for

public comment by March with the EIS due by December 2008. A decision to proceed with the project is not expected before 2009. An Initial Advice Statement, prepared by Surat Basin Rail is available at www.infrastructure. qld.gov.au. The public will have the opportunity to comment on the Environmental Impact Statement when it is released. S E RV I C I N G : GAS, MINING and AGRICULTURAL INDUSTRIES

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Surat Basin News

THE TOWNS TAKING CONTROL Wandoan and its destiny

Dealing with sweeping reform hambers of commerce from across the Surat Basin met in Chinchilla last month to formulate a strategy to deal with local government reform. Representatives from Chinchilla, Miles and Dalby held a second discussion forum to look into forming a strong voice for business and development groups beyond March. All groups recognised while council amalgamations brings challenges to local government operations and structure, those challenges must also be dealt with by the region’s business community. Dalby Chamber of Commerce & Industry president Paul Hodda said co-ordination between the region’s chambers would ensure business and industry continues to be heard. “The Dalby chamber believes that by banding together as a regional voice we can liaise with the Dalby Regional Council to ensure that funding is appropriately distributed to all chambers and that our important work continues under the new council environment,” he said. “We also consider that by working together we can provide assistance to develop and strengthen smaller chambers.” Regional chamber representatives are also part of the Western Downs Development Group, a sub-

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Thanks for the memories CS Energy and community together for one last farewell

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Testament to the pioneers Roma’s tribute to the history and prestige of gas and oil

Waiting for the full potential Dalby’s future and the role of Surat Basin resources

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committee of the Western Downs Regional Organisation of Councils. The group was formed prior to amalgamation where the need to take a collaborative approach to regional issues was addressed through the skills formation strategy. Funded by the Department of Education, Training and the Arts, this project addressed skills shortages and train-

Major industry closer to communities n 2008, for the first time, The University of Queensland will offer a postgraduate program aimed at improving the skills of community relations professionals in the minerals industry. Offered in partnership with the Minerals Council of Australia (MCA), the Graduate Certificate in Community Relations will take one year to complete on a part-time basis. Director of Studies for the Social and Behavioural Sciences Faculty, Associate Professor Julie Duck, said the program was developed in response to industry demand and increasing expectations about the industry's social performance. “The faculty is delighted to be collaborating with the Sustainable Minerals

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Murilla Shire Council economic development officer Andrew Smith at a Chinchilla Chamber of Commerce meeting with Dalby Chamber of Commerce & Industry manager Kerryn Suttor and president Paul Hodda.

“Community relations are integral to such industries and contribute to the overall well being of the communities in which the industry operates.” Institute and the MCA in offering a new graduate certificate tailored to the needs of community relations practitioners in the resources sector,” Dr Duck said. “We recognise the need for the professionalisation of community relations practitioners working in mining and related industries, and the need for an enhanced focus on corporate social responsibility. “Community relations are integral to such industries and contribute to the overall well being of the communities in which the

Surat Basin NEWS Thursday 24 January 2008

industry operates.” While the industry is already equipped with wellqualified professionals in areas such as engineering and geology, the graduate certificate will address the need for an appropriate academic program in community relations. “The program will support the professionalisation of community relations practitioners and enable the mining industry to work more collaboratively with local communities,” Dr Duck said. The graduate certificate

will offer three core courses aimed specifically at the resources sector: • Community Development for the Mining Industry • Community Engagement for the Mining Industry • Community Aspects in Mineral Resource Development An elective course, Mining Projects and Indigenous Peoples, is being offered through the Australian National University. The program is primarily aimed at those with relevant work experience in community relations roles within the minerals industry. Potential students can apply through the Sustainable Minerals Institute or the Faculty of Social and Behavioural Sciences.

THE TOWNS

Facing major change, Wandoan is...

A community

taking ofcontrol its own destiny imes are about to change in the sleepy, little rural town of Wandoan. By March, the district will have almost certainly lost council representation with the splitting of the shire and its amalgamation into regional government. That change is just a precursor to major infrastructure and socio-economic change brought

in its future, Taroom Shire Council and local community leaders have set out to form the Wandoan Growth Management Committee. And since first being suggested almost six months ago, the State Government has come on board to provide the necessary sway. A Department of Infrastructure representative

“We don’t want to stop development but we want orderly development.” on by one of Australia’s largest coal mines. Expected in the wake of Xstrata Coal’s project are large, transient workforces, unprecedented interest from developers and investors, and challenges no other Surat Basin community will have to face. A decision on the future of Xstrata Coal’s Wandoan project is expected by 2009. The company is targeting an initial production in excess of 20 million tonnes of coal a year and a expected life of more than 30 years. Five hundred people will be employed on the mine, more than half of the town’s population. To ensure Wandoan has a say

will chair the committee, which will bring together major stakeholders from the government, mining companies and community. Locals will get a voice with the formation of a community group to work in with the management committee. Taroom Shire Mayor Don Stiller, one of the main drivers of the committee, admits time is of the essence to get the “nuts and bolts” in place. Local government reforms will be introduced on March 15. “The main idea behind the group is to get some control on where we’re headed in the future because if we don’t set up a com-

mittee to guide our destiny, after the amalgamation we’re going to be left out in the cold,” Cr Stiller said. “Council wants to make sure this committee is up and running before we all get disposed. “We want to get the nuts and bolts of the committee working solidly so that come March 15 it will just keep going in some democratic form.” Cr Stiller said the committee would work as a regulatory body and would not stand in the way of positive development. But he added “unwanted” development would not be allowed. “We don’t want to stop development but we want orderly development,” he said. “We want to regulate it so we’ve got something to be proud of at the finish.” It is a power the committee could have due to the support from the Department of Infrastructure. “The Co-ordinator General’s department has given certain undertakings to us that they won’t allow things to happen unless this group has an involvement, is aware of all that’s happening and basically feels alright about it,” Central Queensland Enterprises’ Mark Winfield explained. Mr Winfield, along with his business partner Ted Jago, have been instrumental in the formation of the committee. Both have long associations with central Queensland mining communities

Main drivers of the Wandoan Growth Management Committee, Mark Winfield, Taroom Shire Mayor Don Stiller and Ted Jago.

and heir company has just completed the second stage of the Wandoan Accommodation Park, a multi-million dollar redevelopment of the existing caravan park. Mr Winfield said it was that type of “quality” development that the Wandoan Growth Management Committee would strive to encourage. That could be achieved by placing a control on the type of development allowed in Wandoan. “We want to be there so that those sorts of controls and that sort of quality passes on for other development that may occur here,” Mr Winfield said. “That’s what the government wants to see also. They don’t just

want to see squalor, they don’t want to temporaries. “They want to see permanent, good quality residential, commercial and industrial development that has longevity and sustainability about it.” But Mr Jago added the most important function of the committee would be to protect the interests of the local community. “This group is about the town taking control of itself with respect to the entering of mining companies that could cause a major transformation of the town,” he said. “We want it so there are no negative social and economic effects that have occurred in other towns when mining companies have come in.”

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Surat BasinNEWS 2008 EDITIONS WILL BE INSERTED INTO

Chinchilla News: March 27, June 19, September 25 & December 18 Dalby Herald & Roma Western Star: April 1, June 24, September 30 & December 23 Editorial Submissions: John Farmer - editorial@suratbasin.com.au Design: Beth Walker - prepress@suratbasin.com.au

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THE TOWNS

Fond farewell After three years of a considerable influence on the community of Chinchilla, to coincide with the end of Kogan Creek Power Project construction, CS Energy threw the town a cocktail party. Held at the RSL Memorial Club in early December, local government representatives and community leaders from across the region joined with CS Energy to celebrate a magnificent three years. “I don’t think people in the region would have appreciated what it was they were in for when we turned up three and a half years ago and announced this project,” former acting chief executive Tony Andersen said. “It was a momentous occasion for Chinchilla but it was also pretty awe inspiring for us to stand in front of 600 people in the cultural centre.”

CS Energy contract supervisor Ken French and Tina Duckitt

Kogan Creek Power Station manager Bill Pike and David Fuller.

Sue Mantell, Edna Neucom, Margaret Bell, Margaret Rogers and John Rogers.

Dot Fuller, Ailsa Gilmour, Chinchilla Shire Councillor Helen Townsend and her husband John.

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Jo Morecroft, Samantha Moore, Lynette Squire and Arthur Squire.

Surat Basin NEWS Thursday 24 January 2008

THE TOWNS

Roma’s living,

testament breathing

“They didn’t care what they found, they knew they’d be able to use gas, oil or water. They were winners either way,” historian has researched the history of gas and oil in and around Roma. As he recalls notable events of the past century, it is clear if the story were to be captured on film, it would not be out of place in the adventure section. As anticipated the local crew, Roma Mineral Oil Company, encountered a considerable amount of gas. But with limited technology, the high pressure discovery led to near disaster. High winds blew the fumes from the well to the steam boiler running the drilling rig, igniting and burning for the next seven weeks. From 1900 to 1941, 22 companies would drill for oil and gas in the Roma area but, even as technology improved, the failures far outweighed the successes. In 1927 at the Hospital Hill site, oil was discovered and sold locally as a crude, condensate petrol. “It ran vehicles quite well,” Mr Keegan said. But two years later, the well ran dry before the steady growth in the numbers of wells came to a grinding halt with World War II and the economic depression.

It was not until 25 years later that an industry of promise began to be fully realised. And as it is with all commercial operations, supply and demand dictated its realisation. The potential of the industry became apparent to Roma companies with the construction of the Moonieto-Brisbane oil pipeline in 1963. Following a new wave of exploration and development, the opening of a Brisbane urea plant in 1969 would propel the Wallumbilla-toBrisbane pipeline and the commercialisation of Roma’s gas industry. Gaining its name from the Emsco oil rig, the Big Rig museum explores 102 years of trial and tribulation through multimedia displays, restored drilling rigs and equipment, and Mr Keegan’s passion for the industry. There is also a 30 minute innovate night show to tell the story of early life in the oil and gas industry in Australia. While in June he will retire, Mr Keegan hopes there are others who will expand on the Roma story and bring it to life at the Big Rig. “This is not the only tourist attraction in town but it must include an element of research because we’re still discovering the past,” Mr Keegan said. “From my own point of view, I hope the whole thing will give recognition to the early oil pioneers who worked their backsides off looking for oil.” And with south west Queensland set to be transformed by the resources of the Surat and Bowen basins, Mr Keegan is confident Roma’s place in the story will continue to unfold. “It’s a good chance that anywhere oil exploration is being carried out, you could yell out the word Roma and someone will raise their hand,” Mr Keegan said. “They were either born here, worked here, or knew someone from here.”

The Big Rig captures a unique and celebrated history, Luke Dowidat reports

he Big Rig stands as a living testament to the pioneers of Australian gas and oil. Located in Roma, the museum’s vivid historical displays have attracted thousands of visitors since opening in 2002. Every year, manager Peter Keegan adds new chapters to the Big Rig from the chronicles of Roma’s role in today’s multi-million dollar industry. Mr Keegan’s deliberate and meticulous approach is in stark contrast to many of the 102 years before the realisation of the living memorial.

Roma is known the cradle of Australia’s gas and oil industry. The claim that can be traced back to the turn of the century and a fortuitous discovery of gas atop Hospital Hill. It was October 16, 1900. But in search of water, the significance of the discovery was simply overlooked until five years later when a local drilling crew went on a slightly more deliberate exploration. “They didn’t care what they found, they knew they’d be able to use gas, oil or water. They were winners either way,” Mr Keegan said. For years, the

PostScript Picture (OSB069D-surat basin ad V3.pdf)

Big Rig manager and historian Peter Keegan.

Surat Basin NEWS Thursday 24 January 2008

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THE TOWNS

Full potential yet to be realised

Medical heart of the Surat

COMMENT Warwick Geisel Mayor Dalby Town Council

There's been much talk about Dalby development in recent years but as global demand for energy continues to rise there can be little doubt that the full potential of the Surat Basin region is still to be realised. Exciting times lie ahead for the region and the pending amalgamation of the existing shires into one regional council presents an opportunity for the region to unite and maximise the benefits that are being presented. The coal and gas rich Surat Basin holds enormous capacity for the production of fuels over coming decades and millions of dollars have already been poured into the construction of power facilities. A 550 man work camp will be established in Dalby to house workers during the construction of the $1.3 billion Darling Downs Power Station and more work camps are imminent as energy companies continue their expansion into the region. Work is underway to double the size of the Braemar Power Station and more gas-fired power stations could follow as Australia joins the global search for greener energy solutions. Energy is also boosting the town's manufacturing sector with one Dalby company contracted to produce 80-metre high towers destined for southern wind farms. The Dalby Bio-Refinery is under construction and ready to draw on the Darling Downs' potential to support the biofuel industry. Recent rain has produced promising crop yields and buoyed hopes of a return to more productive seasons. There are signs of real confidence in the economic outlook of the region with new businesses moving in, and a number of existing businesses making moves to expand their premises. Regional development has resulted in more dollars being spent on town amenities. Already we've seen major upgrades to both state and private schools, the Dalby hospital is significantly improved and the multipurpose showgrounds facility is moving forward. The final stage of the CBD streetscape beautification is underway at the Archibald and Cunningham streets intersection and construction will begin on the planned waste recycling station this year. All this indicates good steady growth for a long period of time and council will be working with the community to ensure that as Dalby grows it retains its strong sense of community and distinctive country lifestyle.

All this indicates good steady growth for a long period of time

SOVEREIGN PARK will be the most sought after residential address for families to live in for many years to come. This PRESTIGIOUS ESTATE of 82 lots is situated on the southern side of town. Soil tests supplied. Stage 1 almost sold out. PAGE 26

Director of nursing Colleen Rasmussen takes Dalby Town Councillor Carolyn Tillman on a tour of the $10.85 million Dalby Hospital redevelopment.

A $10.85 million redevelopment of the Dalby Hospital is responding to demand and the future needs of an expanding region new maternity unit is at the centre of a $10.85 million redevelopment of the Dalby Hospital set for completion this month. The new unit responds to demand from across the Surat Basin which saw births in Dalby increase by 25 per cent to 200 over the last two years. The redevelopment also features a new emergency department while services such as medical imaging, pharmacy and pathology will move to a new clinical support area. Facility manager Colleen Rasmussen said the existing maternity unit, which had remained relatively untouched since 1965, had reached its used by date. “It’s antiquatable,” she said. Mrs Rasmussen said the Dalby Hospital‘s increased birthing rates could be attributed to the downgrading of other sites and the region’s gradual population increase. She also believes the standard of care at the hospital was a contributing factor. Theatre facilities allow for emergency caesareans and a safer environment for maternity patients. “We’re getting a lot of people from that area — Miles, Jandowae, Tara — where none of them deliver,” Mrs Rasmussen said.

“We have a huge catchment area and we also have an increase in medical staff which gives our ladies a lot better options.” Mrs Rasmussen expects the upgraded maternity unit to build on the birthing increases, attracting patients from the private sector and retaining those that in the past would have travelled out of town.

“You can live out of Dalby; you don’t have to go anywhere else” Dalby Town Councillor Carolyn Tillman, spokesperson for community well-being, said the new hospital would create an economic boon for Dalby. “It means a lot to the town,” she said. “It will stop people going to Toowoomba and Brisbane and that in itself is going to make a big difference

because the people from further out are going to stop here and spend their money here. “Economically for the town, it’s going to be much better for having them here.” Cr Tillman admitted a modern, better equipped hospital would add to the overall appeal of Dalby’s lifestyle. “I think there’s a few things that will draw people to a town and I think good doctors and good hospitals and good schools are just a few essential things that people really want to see,” she said. “They need to know they can be fixed and they need to know they will be able send their kids to good schools “And we do have all of those; we do have good schools and now we do have a great hospital. “Having similar things to offer that other towns have is important. While we aren’t going to be right up there with Toowoomba — not on that big scale — we are going to be able to offer exactly the same things.” Mrs Rasmussen, who has been based at the Dalby Hospital for more than two decades, agreed on the role the new facility would play in the town. “You can live out of Dalby; you don’t have to go anywhere else,” she said.

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THE TOWNS

Dealing with the inevitable influx from major development

New home for 550 given go ahead Origin Energy will build a 552 man work camp on the outskirts of Dalby to house workers during construction of the $1.3 billion Darling Downs Power Station. Dalby Town Council last month approved a town planning application for the camp on the grounds that the land was currently zoned residential and the temporary accommodation would not affect the long-term outlook for a more permanent residential development on the site. Director of community services Blaine Patterson said there were sufficient planning grounds to approve material change of land use for a period of four years. “The camp is only temporary and therefore will not restrict the proper sequence of development in the area in the long-term. “There is also an adequate supply of residential land available to meet current demand both in town and the

“The camp is only temporary and therefore will not restrict the proper sequence of development in the area in the long-term.” immediate area,” Mr Patterson said. Council is working with the construction company, Laing O'Rourke, to ensure the development is well presented and matches the

Surat Basin development forces towns to adapt and grow to deal with both transient and permanent workforces. area's residential standard. The facility will be built in five stages and incorporates 138 units, a kitchen/diner, office and car parks. The plan also includes a bus stop, as workers will be regularly bussed to and from the construction site located about 40km southwest of Dalby. The impact of additional traffic entering on to the Warrego Highway will be managed according to Department of Main Roads guidelines. Construction of the Darling Downs Power Station is underway with the completion date set for 2010. Once operational, it will be the biggest combined cycle gas-fired power station in Australia.

Bursary leads to council career A career with local government is the ultimate result for Dalby Town Council's 2005 Education Bursary recipient and university graduate Chris Land. “I graduated from Griffith University with a Bachelor of Science in Environmental Health last year and commenced full time employment with council as an environmental health officer in November,” Mr Land said. “My three years in the bursary provided paid vacation employment which helped financially as well as giving me real life work experience in my chosen field.”

Council's most recent bursary recipient Kim Parker (pictured) is completing a Bachelor of Regional and Town Planning at the University of Queensland in Brisbane. She says the practical experience gained with council transfers directly over to her studies. “The bursary is an excellent opportunity to get hands-on experience very early in your course. By the time I finish my four year degree I'll have a lot more experience than most people studying the same course,” Ms Parker said. “The bulk of my work this year has been assessing applications. I'll start third year studies next year and I'm looking forward to learning strategic planning at council.” To be eligible for the education bursary students must have completed their senior education and have applied for or be enrolled in a tertiary course within a field relevant to local government. Dalby Town Council chief executive Stephen Hegedus said the bursary was designed to give local youth an insight into the wide variety of professions that local government has to offer as well as helping to kick-start their careers. “As well as a range of career possibilities, local government also offers graduates job security and the certainty of career development opportunities,” Mr Hegedus said. “Bursary students have an advantage over their peers by gaining valuable work experience while they study, something that many employers look for when hiring graduates.” Applications for the 2008 Education Bursary should be lodged with council before close of business Friday, February 8. For more information visit council's website www.dalby. qld.gov.au or contact council's human resources officer Michelle Brown on 4672 1128.

Surat Basin NEWS Thursday 24 January 2008

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LOCAL NEWS

QRC awards innovation We are changing the world and we need your help! Linc Energy has been moving forward aggressively in delivering on the first Coal-to-Liquids demonstration plant in Australia utilising UCG (Underground Coal Gasification) and GTL (Gas to Liquids) technology. This facility, located in Chinchilla, will be the first of its kind in the world, delivering environmentally friendly fuel. Our team think outside the square, are creative, innovative and able to grasp great opportunities. We work with cutting edge technology and we will train you to be a world leader in your field. In addition we reward our employees with attractive salary packages with share options, in a growing Australian owned company.

Want to be part of the journey and reap the rewards? QRC president John Pegler, Premier Anna Bligh and QRC chief executive Michael Roche congratulate Professor Don McKee (second from right). Premier Anna Bligh has presented the inaugural Queensland Resources Council (QRC) medal to a long-time leader in the development of new technology for the mining industry. The award was presented today to Professor Don McKee director Sustainable Minerals Institute (SMI), University of Queensland at the QRC’s annual resources lunch. Professor McKee was largely responsible for establishing the SMI and has been its director since its inception in 2001. A metallurgical engineer by profession he worked on several continents specialising in the development of process control systems for mineral processing applications. Appointed director of the Sir James Foots Institute of Mineral

Resources an SMI predecessor— Professor McKee joined the University of Queensland in 1981 as a research fellow with the Julius Kruttschnitt Mineral Research Centre (JKMRC). He was the driving force behind the establishment in 1986 of JKTech, the centre's commercial division and a template for the technology transfer industry that has become an integral component of tertiary institutions throughout Australia. He has expanded the scope of minerals research at the University of Queensland to encompass programs in health and safety, social responsibility, sustainability and most recently, water. Through his initiative, three new centres have been established within SMI, which have

quickly built a reputation for excellence and the capacity to deliver innovative and useful solutions to the industry. “Professor McKee is highly regarded for his intellectual and organisational leadership and his vision for the R&D needs of the industry across many disciplines,” said QRC chief executive Michael Roche. “Professor McKee will shortly retire from his role as SMI director, but it is almost certain that he will continue to make a valuable contribution to the success of the resources sector balanced with more time to spend with his wife Gill and his family. “He has been instrumental in putting Queensland on the map as a global centre for excellence in mining and minerals processing research.”

We are currently seeking exceptional people to become UCG Operators & GTL Process Controllers based on site in Chinchilla. You will be a key part of our operations, working at our 24/7 facility.

UCG Operators & GTL Process Controllers Essential skills • Completed junior certificate • Competent using computers • Able to work 12hr day and night roster

Experience desired • Diesel or Electrical compressors • Control systems • Gas • Trade experience/qualifications

For a confidential discussion please contact Natalia Smyth or Darren Lynch on (07) 3229 0800. Please send your application, quoting UCGGTL1 to employment@lincenergy.com.au For information on Linc Energy Ltd www.lincenergy.com.au

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