SBN June 2008 by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 19 June 2008

36 pages $1.00 inc GST

SPECIAL WATER REPORT: THE PROBLEMS, SOLUTIONS AND THE ANSWERS

Pages 6-7

$7.7 billion gas project takes shape Santos' recent announcement to partner with Malaysia's Petronas to deliver its $7.7 billion LNG facility at Gladstone (GLNGTM) has reinforced the importance of regional Queensland in the state's burgeoning economy. Petronas is Malaysia's national oil and gas company, the third largest liquefied natural gas (LNG) company in the world, and the largest in Asia. Petronas tendered alongside some of the world's largest energy companies for a 40 per cent stake in GLNG, worth $2.508 billion. The company's experience as operator of the world's largest single integrated LNG facility — Malaysia LNG — will assist Santos to successfully deliver GLNG — the world's first large-scale project to convert coal seam gas to LNG on a large scale. Malaysia LNG produces 24 million tonnes of LNG per year. GLNG is expected to produce 10 million tonnes per year. Continued on P.3

THE CONFERENCE Making the region sustainable

On the

OFFENSIVE BY John Farmer editorial@suratbasin.com.au

oal seam gas companies and the State Government have gone on the offensive to find a beneficial use for waste water trapped at gas fields across the Surat Basin. Since the industry boomed two years ago, gas producers have been harvesting thousands of litres of water everyday as part of their extraction processes. With no infrastructure to treat or deliver the water to nearby towns — and no one to pay for the water — it has simply been stored and evaporated away.

The Surat Basin’s coal seam gas producers have teamed with the State Government to stop thousands of litres of waste water disappearing into the atmosphere every day. But with no one to pay for the water, is its fate sealed in storage ponds. But with intense pressure from local stakeholders, industry has teamed with government to find ways to release the water and let it flow into thirsty towns. Also on their agenda are the tonnes of salt left behind in the storage ponds.

The Queensland Government has established an inter-agency working group to provide advice on coal seam gas water. The group has met since 2007 to examine State Government policy on its beneficial use, working in close consultation with industry and

local councils. A spokesperson from the Department of Infrastructure and Planning said the government encouraged the beneficial use only if it was “economically viable and ecologically sustainable”. But under 2007 Environmental Protection Agency legislation, coal seam gas producers “are responsible, as a cost of production, for treating or disposing of this waste stream”, according to the spokesperson. That is the issue that has left many communities and gas producers hamstrung. Continued on P.12

— www.suratbasin.com.au —

Chinchilla will host the inaugural Surat Basin Energy Conference on August 21-23. The aim is to provide a comprehensive update while coming up with solutions to a sustainable future. Find out what is in store on pages four and five.

THE CONFERENCE Rail link’s formidable team

The proponents of the Surat Basin Railway now predict the line could haul up to 50 million tonnes of coal. On pages 26 and 27, find out the companies making their moves.

@ WORK ON THE SURAT The faces of the Surat Basin Who are the faces working on the major projects? What do they think of the industries their helping drive? @ Work on the Surat introduces the indentities of Australia’s next major energy province.

LOCAL NEWS

INSIDE THIS EDITION:

Surat Basin NEWS The Team

Surat Basin News

DISAPPEARING LIQUID GOLD The water problems, solutions and answers on pages 4-5

DEALING WITH SKILLS Des Caling’s innovative answers

Surat Basin News

SURAT LURES GLOBAL HEAVYWEIGHTS

NOT LONG NOW: Linc’s commercial ambitions

Surat Basin News

CRUSING THE SURAT: With Maguire Coaches

Pages 16-17

TAX TIME TIPS WITH BMO Get your financial affairs in order

LOCAL NEWS

RESOURCES

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

ACT NOW: Springborg calls for government and industry partnership

Lack of infrastructure prevents coal seam gas water delivery Continued from P.1

David Richardson General Manager

PAGE 13

Springborg calls for more

Laurell Ison Advertising

Surat gas down south New Hunter gasfired power station has paved the way for a link between Surat Basin gas fields and the markets of eastern New South Wales.

Queensland’s Opposition Leader claims the State Government is failing o support the boom being experience in he state’s regions. PAGES 4-5

Presenting the Surat Basin n two months, the uture of the energy rovince will come nder scrutiny at the naugural Surat Basin Energy Conference,

Beth Walker Graphic Design

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 Website

PAGE 7 Artist's impression of the Gladstone LNG processing and load-out facility on Curtis Island. Continued from P.1

The investment by Petronas represents a milestone for Queensland — as the single largest Malaysian investment in Australia's history. It is a clear sign of the strong global interest in Queensland's new LNG industry, and in the state's rapidly growing economy, built on resource development and investment. GLNG will unlock Queensland's abundant coal seam gas reserves in the Surat/Bowen Basins, to underpin both domestic and export needs. A 425km

offshore markets. The project will employ 3000 people during construction and 200 full-time thereafter. This should stimulate further business development and employment opportunities in the Gladstone and Roma regions through increased demand for goods and services. Santos has planned an extensive community engagement program to involve landholders, local industry groups and the broader community, including newsletters, a project website (www.glng.com.au), com-

which Santos will prepare as part of governments' approval processes for the project. GLNG is a significant clean energy project for Queensland — producing less than half the emissions of traditional energy sources. Queensland has Australia's largest onshore reserves of CSG in the Bowen and Surat Basins; enough to adequately supply growing domestic demand and LNG export opportunities, and ensure the long-term supply of competitively priced gas in Australia.

UCG and its boon for Queensland An independent review has revealed within 20 years UCG could be worth $600 million a year to Queensland and a lot more to the

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.

ueensland Gas Company currently extracts around nine megalitres of waste water a day from its Surat Basin gas fields. By 2020 when a major expansion to feed a liquefied natural gas plant at Gladstone is in full swing, that figure could climb to 100 megalitres. QGC commercial development manager Peter Bates explains while the company has undertaken several treatment studies, until someone can pay for it, the water will continue to be stored and evaporated away. “A lack of infrastructure to deliver this water is the major barrier to an immediate supply of quality drinking water to local towns,” Mr Bates said. “This infrastructure is expensive and the cost is not generally reflected in water pricing.” But while paying for the water remains an issue, QGC managing director Richard Cottee still wants to put the water to good use. Mr Cottee said QGC was willing to do whatever it takes, in the interests of tax payers and shareholders, to deliver the water to those who need it most. “We will look at whatever option is best for the state,” Mr Cottee said. “We would be happy for the state to operate the water treatment system if that is what they would like; we would be happy to do a PPP (public private partnership); we are happy for them to do whatever they like.

“We are simply saying ‘look at this water' — it is a scarce resource and a fantastic opportunity for Queensland.” QGC is not alone in its desire to stop what many have labelled “liquid gold” disappear

QGC commercial development manager Peter Bates speaking at a recent community forum in Chinchilla.

into the atmosphere. Origin Energy last month opened Australia’s first reverse osmosis water treatment plant integrated with a gasfield. Based at Spring Gully in central Queensland it will desalinate nine million litres per day — the equivalent daily use of 50,000 people. But with no one to purchase the water, it is simply being let to flow down a local creek. At Dalby, Arrow Energy and Dalby Regional Council are currently working on a project to supply the town with coal seam water. However, that project has also stalled due to a shortfall in government funding. Queensland Opposition Leader Lawrence Springborg claims the State Government has not done enough to make beneficial use of the water. He wants to see more work done with coal seam gas producers and for the State Government to better manage the water. “From our point of view, what we've got to do is proactively and positively work with those companies to say we expect all that water to be cleaned up and we expect that water to be actually put to some sort productive or environmental use,” Mr Springborg said. “I think in many cases the government has all the right to embrace this. “One of the reasons they haven’t, of course, is because they've been looking at the dollars involved, looking at the development involved, and they’ve taken their eye off the ball.”

Local group to talk sustainable growth The Western Downs Regional Development Corporation (WDRDC) has been selected to present a paper at the Sustainable Economic Growth For Regional

are taking in response to the significant growth and development facing our communities. “I am extremely pleased to be represent-

Paul Hodda, chair of the WDRDC, said. “Presenting our story at SEGRA is just another way to send a positive message about our terrific region and the opportu-

PAGE 22

Looking out for big rigs Diesel Electrics in Dalby has expanded o offer an mpressive new acility for heavy machinery working on the region’s arms, mines or highways. PAGE 22

Helping change attitudes As the largest employer of apprentices and rainees in Roma, Sharpe Engineering is changing the way ndustry looks at workplace training

Ostwald teams with Xstrata Coal Local company helps pave the way to Australia’s largest coal mine Ostwald Bros has secured a civil and mining construction and haulage contract with Xstrata Coal to support the prefeasibility phase of the proposed Wandoan Coal Project. Xstrata Coal is exploring the potential for an open-cut coal mine to be developed in the Wandoan district and has contracted Ostwald Bros to complete auxiliary works, sample pit and access road construction. Ostwald Bros crews have completed the access road from the Leichhardt Highway to the sample pit. Work is ongoing with coal crushing, loading and haulage of coal to Xstrata's Oaky Creek

Mine, where it will be washed, all underway. The sample pit is set to provide approximately 50,000 tonnes of coal for trial washing and coal sampling. Results on the pre-feasibility study of the coal project are expected by the end of the next year. Ostwald Bros. CEO Brendan Ostwald said the Wandoan sample pit crews were performing above expectations and the project was likely to be completed ahead of schedule. "A lot has been achieved in recent weeks and our crews are working effectively to complete

An Ostwald Bros truck preparing to haul coal from the Wandoan sample pit to Xstrata’s Oaky Creek mine. civil works at the site. "Our transport fleet is operating on the coal haulage project with all trucks equipped with satellite tracking and real time monitoring systems to allow full supervision of operations," Mr Ostwald said. If approved, the project will

comprise an open-cut mine, coal handling and preparation plant, train load-out, workshops, fuel, wash-down facilities and offices. The mine is expected to produce an initial rate of 30 million tonnes per annum of mine coal, for export markets, with an expected mine life of 30 years.

Website offers the complete Surat Basin picture

THE NEWS:

RESOURCES:

COMPANIES:

The Surat Basin Energy Conference — searching for a sustainable future. Des Caling’s innovative answers to the skill shortages. Opposition Leader calls for more investment and the water they do not want but we can not have.

Linc Energy and UCG are a company and a process set to change the global energy scene. Surat Basin coal seam gas attracts global heavyweights. Link between local gas and New South Wales markets.

BMO’s tax tips for the financial year. Cruising the Surat with Maguire Coaches. Dalby company teams with Xstrata Coal on Wandoan coal project. Diesel Electrics catering for the region’s heavy machinery and Surat Basin Development’s new salesperson.

Surat Basin News

OPINIONS Surat Basin NEWS 12 Mayne Street Chinchilla, QLD 4413 PO Box 138, Chinchilla, 4413 Phone: 4662 7368

PUBLIC OPINION:

LINE’S FORMIDABLE TEAM Two page report on Surat rail progress

Surat Basin News

Featured on pages 31-33

What do you think of QGC’s decision to host an information night?

THE PEOPLE

INFRASTRUCTURE

General Manager: David Richardson Advertising: Laurell Ison Editor: John Farmer

THE POTENTIAL: Water needs to be seen from holistic point of view

Waste water draws advisory council to the Surat Basin

The cost is too much to just ignore Dalby Regional councillor Bill McCutcheon “I think its good that these companies and in general, QGC are willing to be part of information nights like these and outlay their plans for the future. And those plans are extremely positive ones for the region.”

Doug Brodie “It was good. I personally have been pushing for nights like these for years because we need up to date information on all these projects. If we haven't got the information too many people make up their own stories, which are often incorrect.”

Judy Guzzwell “It was very informative and the crowd that attended showed the community is very interested in QGC's activities because they're going to affect all of us. I see this project as huge for our economy, employment and related industries.”

Greg West “Events like these are critical to ensuring we, as a community, are informed and able to make the best decisions about the future of our towns. It’s brilliant to see so many people here.”

COMMENT Howard Hobbs MP Member for Warrego

That is an issue that has been of great concern to me. One big problem that landholders are finding relates to environmental issues with regard to evaporation ponds. Quite a considerable amount of salt is in some of these water supplies. Some water supplies are good and some are bad in terms of high levels of salt. These are the questions people want answered: what sort of rehabilitation will be done on these sites? Exactly how will that occur? Will layers of soil be put over the top then be compacted? Will it be a contaminated site in the future? Will there be any impacts on landholders? Some of these issues need to be clearly spelt out. With regard to compensation, there does not seem

course that varies. Somebody might have pipeline through their plac with little impact. Recently at a meetin people said they could no get enough informatio from the Department o Mines and Energy’s we site and that there were no enough people in th department who coul advise people as to the rights and what is happen ing. Better information need to be provided and th Department has committe to assist. There is also concer about the amount of wate that is being produced — and I am talking about sev eral hundred megalitres day — and whether tha water is coming from th artesian basin. I have been advised b the Department that th water does not come from

PAGE 31

PAGE 28

aces at work n the Surat

Origin water plant opens

We talk to some of he identities who are shaping the Surat Basin’s prosperity — rom a power station manager to a geologist, apprentice and well services superintendent.

Origin Energy is now treating enough waste water at its Spring Gully gas field to supply 60,000 people. Find out why the reverse osmosis plant is a step in the right direction. PAGE 28

Expansion at Gladstone to handle boom To cope with the Surat Basin’s booming coal seam gas industry, the State Government is considering a major expansion of Gladstone’s

Great Artesian Basin Advisory Council chairman Roderick Gilmour on a tour of the Berwyndale South gas field with Queensland Gas Company commercial development manager Peter Bates.

t is hard to imagine in a drought stricken region thousands of litres of water simply evaporated away each day. But that is what has occurred across the Surat Basin since the emergence of the coal seam gas industry. The future use of what is today considered waste water drew the Great Artesian Basin Advisory Council to Miles for its first ever meeting in the town. Held in mid-May, members met over two days before setting off on a tour of Queensland

of the company’s coal seam gas project. Roderick Gilmour has chaired the council for the past six years. Its primary role is to advise the Minister for Natural Resources on issues pertaining to the Great Artesian Basin. Mr Gilmour admits one of the most topical and possibly controversial issues at the moment is finding a way for the practical use of coal seam water. “We’re here to increase our knowledge on the issue to

mayor of Murilla Shire Council and a long term resident of Miles. As a local in a town plagued by years of critical water shortages, the beneficial use of the waste water is close to his heart. “I believe it’s extremely important that this water is used for Miles, Chinchilla and Dalby not only to secure their supplies but to free up more water for the Murray Darling

Basin,” Mr Gilmour said. “We could also see reduce demand on the Great Artesia Basin and I think the benef cial use of this water could, the long term, lead to th decentralisation of industry. “With water, gas and power and relatively cheap land see a huge potential for indu try but we desperately need get the government and indu tries looking at this from holistic view.”

“With water, gas and power — and

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Money should not be the main reason coal seam water remains trapped at gas fields and in storage ponds across the Surat Basin. But the fact it is shows a genuine lack of innovation and forward planning from the State Government. After all, just take a look at the state of Queensland’s water at the moment. Only last week, Brisbane City Council hit ratepayers with an 8 per cent hike as a result of ongoing water shortages. The State Government’s latest water projects have blown out to $2.4 billion and the final cost is likely to be much higher. Toowoomba’s water supply is down to around 11 per cent and there is talk of multi-million pipelines, bores and dams. And in south-west Queensland, existing weirs, dams and treatment plants are proving inadequate as the drought continues to bite. Even where communities have taken the initiative to use coal seam water, they have either missed out on funding (Chinchilla) or been left significantly short changed (Dalby). Now take a look at the state of industry not in Queensland, but just the Surat Basin. The energy province is predicted to attract close to $10 billion of public and private investment over the next four years. Its projects will not only power Australia for decades to come, but its resources will boost the Queensland economy considerably. The Surat Basin will be the home for major coal seam gas companies - water producers and massive coal mines - water users. The availability of affordable land, gas, energy and, possibly water, will attract new industry and manufacturers to the region. That will create a decentralising effect, easing the pressure of government-owned infrastructure in the state’s south east corner. It also means major population growth, placing new demands on local services and authorities. Meanwhile, through all of the money making and money wasting, the State Government slams coal miners with a massive royalties hike. How can cost be the one factor preventing

@ WORK ON THE SURAT

ANOTHER ROUND OF ASSISTANCE: Origin’s 2008 scholarship program

Queensland Gas Company recently held an information night in Chinchilla to discuss its future plans. We asked four attendees:

Editorial

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

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

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VOICE YOUR OPINION: editorial@suratbasin.com.au

Major partnership pushes Santos’ LNG plant ahead PAGE 6

THE COMPANIES

PAGE 34

Roma tourism to light up again On September 6, Roma will celebrate the Great Fire of 1908, the event hat sparked not only he resource boom, but lso tourism in the own

Targeting jobs and the region’s diversity The 2008 careers expo out to provide the region’s students with a hands on knowledge of industry n innovative careers expo aimed at providing Year 10 students in the Western Downs area with information regarding various career options will be held on Wednesday, July 30 in the Chinchilla State High School grounds starting at 10am. Western Downs Career Expo committee member, and transition officer for Goondiwindi Training and Technology, Angela Suhr said the idea behind the annual expo was for exhibitors to provide practical and interactive demonstrations that informed the students about their particular industry. “The success of this annual event is largely due to the fact that the students are provided ith f h d

help them identify things such as what personality type they are and what traits are best suited to different careers.” If your organisation would

OPINION:

INFRASTRUCTURE:

THE PEOPLE:

QRC chief executive Michael Roche talks about the Surat Basin’s century of prosperity. Howard Hobbs MP calls for cooperation between landowners and industry. Bruce Scott MP seeks balance.

The Surat Railway’s formidable team of miners. Gladstone’s expansion to handle Queensland coal seam gas. Origin’s innovative treatment plant — an Australian first.

Origin Energy launches second round of community skills scholarship program. We meet the identities shaping Surat Basin growth. Queensland Health puts gas field workers through a pit stop.

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 19 June 2008

Surat Basin News

DISAPPEARING LIQUID GOLD The water problems, solutions and answers on pages 4-5

DEALING WITH SKILLS Des Caling’s innovative answers

LOCAL NEWS www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

Major partnership pushes Santos’ LNG plant ahead PAGE 6

Springborg calls for more Queensland’s Opposition Leader claims the State Government is failing to support the boom being experience in the state’s regions. PAGES 4-5

Presenting the Surat Basin In two months, the future of the energy province will come under scrutiny at the inaugural Surat Basin Energy Conference, being held in Chinchilla.

Artist's impression of the Gladstone LNG processing and load-out facility on Curtis Island. Continued from P.1

Roma workshop to guide career futures This year the Roma Careers Expo will be held on Thursday July 31 and is an exciting opportunity to connect with and guide the region’s future workforce. Western Downs Development Group project officer Maree Petty said because of the national skills shortages, more effort was needed to promote a business to the right person. She said one day, that person could become the business’ best salesperson, tradesperson, office assistant or professional employee, helping in future success. This year, the Southern Queensland Institute of TAFE — Roma campus will host

the careers expo for the Roma region. “This is an exciting opportunity to showcase your fantastic organisation to the local community, including students from the high schools in Roma as well as from schools in the outlying areas,” Mrs Petty said. “We are endeavouring to showcase the local area to our students for employment, as well as the tertiary education options, give advice for students and parents to gain better information about the career selection process, and allow local businesses to highlight their job needs and profile their business in the local community.”

Surat Basin NEWS Thursday 19 June 2008

Mrs Petty said the expo would include a guest speaker to motivate and focus students and additional speakers during expo session times. Apprentices from Origin Energy’s scholarship program will be roving throughout the expo to answer questions relevant to the uptake of trades. For further information on the careers expo, contact Mrs Petty at mareep@romaregionalcouncil.qld.gov.au or on 0408 547 669. Inquires can also be directed to Kaye Walton — Cooee, and Vanessa Pye — RICA, Roma College, Southern Queensland Institute of TAFE.

PAGE 3

2008 Surat Basin Energy Conference

Energy to grow - Sustainability in the Surat Basin

THE LOCATION

The region, the future and

THE SOLUTIONS Chinchilla Cultural Centre August 21-23

THE SPEAKERS LOCATION Combing key stakeholders from: • government • industry • environment • local business • community The aim is to provide a complete overview of activity across the Surat Basin while having people there who can implement strategies and make change.

THE COAL

A comprehensive insight into the companies that are developing projects in anticipation of vital infrastructure.

THE GAS

All the major players in the fastest growing Surat Basin industry that’s worth more than $160 million a year to Queensland’s economy.

More than just information, the 2008 Surat Basin Energy Conference sets out to find what it will take to make the energy province sustainable and livable. The Surat Basin News talked with conference co-ordinator Sandra Hobbs to discover what is planned for the August 21 to 23 event. BY John Farmer editorial@suratbasin.com.au

nder one roof over three days, the veil will be lifted on a region that will harbour $10 billion of investment and development over the next four years. The 2008 Surat Basin Energy Conference, an initiative of the Western Downs Regional Development Corporation, will take place in Chinchilla from August 21 to 23. Key company, government and community representatives will assemble at the Chinchilla Cultural Centre to update the community on projects that will power Australia for decades to come. Speakers have been engaged to delve into the Surat Basin's critical infrastructure needs and the key growth drivers - gas, coal, water and energy. Once updated, people attending the conference will be invited to take part in workshops on the final day focusing on a forum addressing skilling for future needs and opportunities. Conference co-ordinator Sandra Hobbs hopes the three-day event paves the way for more sustainable and manageable growth in the Surat Basin. “We hope from the conference we can develop some specific, positive recommendations that can be used for future planning,” Mrs Hobbs said. “We'll be targeting the impacts and opportunities for the community, for business and for investment. “The aim of the conference is to look at where the region is going in the future and how we can all work together for the best possible outcomes for business, industry and community.” Mrs Hobbs is confident the confer-

ence format and calibre of speakers will result in a comprehensive overview of the Surat Basin's burgeoning resource sector. She believes up-to-date and relevant information is critical to effective long term planning for business owners, investors and locals. “We need to be able to provide the region with information to raise awareness and knowledge for future planning purposes,” she said. “It's important that people have the capacity to make informed decisions about the future of their region. The conference will provide the opportunity to have input and raise issues and concerns.” While the Chinchilla Economic & Tourism Development Association and Western Downs Regional Development Corporation have been selected as the inaugural hosts of the Surat Basin Energy Conference, it is planned that similar events will be held across the region in coming years. “We hope the conference will provide the platform for people in the Surat Basin to embrace the challenge of working together and forming a better regional response to address issues and needs,” Mrs Hobbs said. “Small communities need to be working together to allow for more effective and efficient service delivery and response to the needs and issues in the area.” Mrs Hobbs admits she has been encouraged by the early level of interest from companies involved across the Surat Basin But she is also aware of the need those companies have for extensive involvement from the community. “For a company to operate effectively they need to have a good relationship with the community they're operating in to ensure their time in the area runs smoothly,” she said.

Date Claimer! WESTERN DOWNS REGIONAL DEVELOPMENT CORPORATION

Surat Basin Energy Conference 2008 Energy to Grow - Sustainability in the Surat Basin Chinchilla Cultural Centre — 21-23 August 2008 For further information and to express your interest in attending

Email: admin@chinchilla.org.au or contact Sandra Hobbs 0412 454 778 PAGE 4

Surat Basin NEWS Thursday 19 June 2008

“It's looking at where the community will be at in the future and how the region can work together for the best possible outcomes for business, industry and community.” “We are looking forward to some innovative outcomes and the development of partnerships and I’d encourage people to take the opportunity to have a say and be involved with what could happen in the future by attending the conference.”

2008 Surat Basin Energy Conference

Energy to grow - Sustainability in the Surat Basin

Chinchilla’s chance to provide a solid platform to tour from In five minutes, Greg West could name just about every company working in or around the Surat Basin. He could pinpoint their position, future plans and provide an update on their share price. He could even give an idea of what that price could look like in 12 months time. Mr West is a believer in the potential of the Surat Basin and, as president of the Chinchilla Economic & Tourism Development Association, an advocate for community engagement. For that reason, August 21 is a date he has looked forward to since the Chinchilla Cultural Centre was booked. CETDA is assisting the Western Downs Regional Development Corporation host the first Surat Basin Energy Conference over three days this August, providing the launching platform to an event that will tour the communities of the energy province. Mr West admits the chance to host the inaugural conference comes with a deal of prestige for CETDA and should mean the same for the Chinchilla community. “The plan is to make this conference

a regular event where we invite a range of stakeholders and government representatives to discuss with the community what is happening now and into the future,” he said. “But we don’t just want to hold a regular update on information. “We want to give the community, industry and government a chance to highlight and address the issues that come with the development. “Chinchilla has the chance to lay the foundations for what could become the business and community conference in the Surat Basin.” While CETDA hosted a similar conference in 2006, Mr West believes the 2008 version will stand alone because of its regional focus. Government, industry and community representatives from the Roma,

Dalby and Chinchilla areas are expected to attend. Mr West hopes the conference, which is an initiative of the Western Downs Regional Development Corporation, helps builds better regional partnerships across the Surat Basin. “We’ve had a great response from across the region and we’re hoping for a whole of region approach to how we can make our communities sustainable now and into the future,” he said. “Regionally is the best way we can implement strategies and make changes for the better.”

“Chinchilla has the chance to lay the foundations for what could become the business and community conference in the Surat Basin.”

The skills for a more sustainable future How will Western Downs communities manage skills’ needs in a time of unprecedented growth? That is the question that will be posed at a Skilling for the Future forum being held in Chinchilla on Saturday, August 23. The forum, which is being held in conjunction with the Energy to Grow — Sustainability in the Surat Basin conference, will be facilitated by Oliver Freeman, managing director of the Neville Freeman Agency — a

future focused consultancy. This forum is a first for the region and provides an exciting opportunity for community members to work alongside industry, business, local government and community leaders to explore how the region should: • Make communities ready for growth • Meet training needs for the future • Attract and retain a skilled workforce • Interact with the energy/resources sector

• Make businesses ready for growth “In light of the number of large energy projects being developed across Surat Energy province the issue of where will the workers come from is on everyone's lips,” CETDA president Greg West said. “There is a growing concern that poaching will become an entrenched culture unless industries work collaboratively to develop solutions to address the issue of local skills shortages.

“This forum provides us with a unique opportunity to develop a vision for our future. “It is my hope that all the major industries across our region will be well represented at this event. “I believe that together we can plan for sustainable growth in the Surat Energy province.” Further information on the Skilling for the Future Forum can be obtained from the Project Officers for the Western Downs Skills Project.

Position your company Showcase your potential Chinchilla Cultural Centre 21-23 August Limited spaces are available

Showcase what you can do for the future of the Surat Basin to key government and industry stakeholders

Chinchilla Cultural Centre

Whether it is rail, port or pipelines, the Surat Basin is lacking vital infrastructure to open its resources for development. Find out how infrastructure projects are progressing.

THE WATER

The hot topic at the moment for companies and communities alike - the fate of waste water from coal seam gas fields.

BUSINESS OPPORTUNITY

How can local businesses make the most of Surat Basin development? What do they have to do to win major contracts with major corporations? The conference plans to help answer those questions.

SKILLING FOR THE FUTURE

Trade displays are available for the 2008 SURAT BASIN CONFERENCE Labour shortages are plaguing much of Australia and the impact is being felt in the rapidly developing Surat Basin. A workshop on the final day of the conference will look at ways of solving skill shortages.

Promote and market your product to the key players in Australia’s fastest growing energy province. Prominent positioning and guaranteed exposure makes this an opportunity you can’t afford to miss.

At a conference that brings together such major companies in a region of such unbridled potential, you have to ask yourself... IS THERE ANY BETTER MARKETING TOOL?

THE INFRASTRUCTURE

Thursday 21 August Saturday 23 August

Contact Western Downs Regional Development Corporation

PO Box 42, Chinchilla Qld 4413 Conference Coordinator: Sandra Hobbs Mobile: 0412 454 778 Fax: (07) 46627145 admin@chinchilla.org.au Surat Basin NEWS Thursday 19 June 2008

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For further information contact: admin@chinchilla.org.au or Sandra Hobbs 0412 454 778 PAGE 5

T H E WAT E R

BY John Farmer editorial @suratbasin.com.au

Dalby Regional Mayor Ray Brown claims the only way forward is bringing industry, government and community together Dalby Regional Mayor Ray Brown has called for government and industry stakeholders to hold a round table discussion on the future of coal seam gas waste water. Speaking in an exclusive interview with the Surat Basin News, Cr Brown claims not enough is being done by higher tiers of government and coal seam gas companies to replenish water hungry Surat Basin communities. “We (Dalby Regional Council) are assisting them by investigating ways our communities can use the water,” he said. “We want to help fix the water. “But they (coal seam gas companies) should have the community commitment to assist us to utilise the water.” Cr Brown says if the waste water is left to evaporate away, the future lifestyle of the Dalby region is at stake. He said making water available to local towns would help negate the costs of such high impact, resource-centred development. “We need to sit down at a round table and get those seven companies in our region with state and federal and work out how we can make it work,” Cr Brown said. “We need the development, that’s for

sure, but we also need to find a balance. “We need to be left with a life out here. “I don’t want to be left with a desert in 20 years time but if they continue with this procedure of just creating evaporation ponds we will end up with deserts and salt sand dunes. “That's not acceptable.” Cr Brown questioned the current practices of coal seam gas companies to just evaporate the water away. Currently, Queensland Gas Company extracts 12 megalitres of water a day from its Berwyndale South gas field, which is stored in evaporation ponds. Cr Brown claims treatment plants should be in place before gas field developments start. “When they start these things they should have a reverse osmosis plant in from day one so that all they’re ponding is the bare minimum,” he said. While the waste water has attracted the interests of Toowoomba Regional Council, Cr Brown refuses to even consider that the local region may miss out. “I know what they (Toowoomba Regional) are after but I’m not going to let us just get left with all the waste,” he said. “No way in the world are we just going to be left with dams of salt when they get the water.” With the waste water a hot topic at the moment, the relatively new mayor has done his math. He explains by 2011, the seven coal seam gas companies of the region could be harvesting up to 200 megalitres of waste water a day. That is enough water to supply Dalby Regional, Toowoomba and other users. If the current policy of evaporation remains, close to 50,000 acres would be needed for evaporation ponds and to

EXCLUSIVE

WASTE WATER OR WATER WASTE?

Mayor calls for round table water talks

A SPECIAL TWO PAGE REPORT ON THE COAL SEAM GAS WATER

Thousands of megalitres of water a day just being evaporated away. Tonnes of salt just left behind. A solution seemingly at the hands of the companies and government. Yet the water just continues to fade away. We know the PROBLEM, we seem to know the SOLUTION, but what is the ANSWER?

Agforce welcomes government study

“We need to sit down at a round table and get those seven companies in our region with state and federal and work out how we can make it work.” handle around 1000 tonnes of salt a day. “That’s a lot of fish and chips,” Cr Brown said. In early May, Dalby Regional Council visited Origin Energy’s Spring Gully gas field where a new reverse osmosis plant had opened. Cr Brown says there is enough water being treated there to alone provide for 50,000 people or the demands of Xstrata's Wandoan coal project.

The Queensland Murray-Darling Committee (QMDC) has welcomed recent confirmation that a Queensland Government working group had been formed to investigate the use of water extracted from coal seam gas fields. “We were relieved to hear that this issue is finally being looked into,” QMDC chief executive Geoff Penton said. QMDC said that it had been contacted by concerned landholders worried about the potential for salt impacts on the land and soils. “We were already concerned about suggestions from gas mining companies regarding the use of water extracted from the gas fields as a resource, because coal seam gas water may have a very nasty side to it,” Mr Penton said. Given the high salt concentrations found in water that is extracted with coal seam gas, Geoff said that the risks to soil and water quality could also be high. “There are some options within the region to use gas extracted water for irrigation, town supplies and to augment environmental flows. “This could be great news, but the potential contamination issues need to be carefully investigated and managed,” he said.

Farmers warn of the potential environmental risks The headlong rush by energy companies to tap into the coal-seam gas industry in the Surat and Bowen basins is generating much excitement, but farmers warn the salts and other contaminants in the associated water are cause for serious concern if not properly treated and managed. AgForce water spokesman Kim Bremner says an environmental disaster is waiting to happen and the companies chasing the gas need to be held accountable and responsible for ensuring this is averted.

PAGE 6

“The prime agricultural land on the Darling Downs is essential for Queensland’s future food supplies and should not be compromised by an extractive industry that is building multiple pipelines and vast evaporation ponds across the landscape but may only be around for 20-30 years,” Mr Bremner said. “The evaporation ponds popping up all over the Downs will have long-term ramifications on farmland availability as well as the quality of soils, ground water in aquifers

and flood plain areas. “Condamine Alliance figures predict that if all proposed coal seam gas development goes ahead, there will be 50,000 hectares of evaporation ponds. “This will result in millions of tonnes of salt across the landscape. “From just one small field south of Dalby, it has been estimated more than 400,000 tonnes of salt will be brought to the surface with the associated water. “Each megalitre of coal-seam gas water

Surat Basin NEWS Thursday 19 June 2008

has between 1300 and 9000ppm salt, compared with normal river water which is 250ppm. “Cattle cannot drink water with more than 2000ppm and on certain soils that level of salts can destroy the land.” Mr Bremner said AgForce wants the Queensland Government working group set up to look at uses for the water associated with coal seam gas extraction to also consider the long-term environmental impacts of bringing such vast quantities of salty water to the surface.

“We want to help fix the water. But they (coal seam gas companies) should have the community commitment to assist us to utilise the water.”

“...what we've got to do is proactively and positively work with those companies to say we expect all that water to be cleaned up and we expect that water to be actually put to some sort of productive or environmental use.” Opposition Leader Lawrence Springborg

Dalby Regional Mayor Ray Brown

DRINKABLE WATER The current solution coming from both the companies and government is simply to store the water until it evaporates away.

Reverse osmosis is a technique that removes the impurities in coal seam water to make fresh water. It has been trialled by local governments and companies across the Surat Basin, including most recently by Origin Energy at Spring Gully.

THE KEY TO SOLVING THE WATER ISSUE? THE WATER’S SOURCE

Salt residue from coal seam gas water storage facilities is a major, ongoing concern natural resource management groups and landowners.

THE ANSWER While the technology needed as a solution is being trialled across the region — reverse osmosis — putting it into use is proving a difficult task. The potential cost of the water is the major issue. The government and gas producers appear hesitant to pay for the water. Until the pieces of the puzzle fall into place, even treated water like that at Origin’s Spring Gully (pictured) will simply be wasted away.

Coal seam gas companies are bringing thousands of litres of water to the surface everyday. The water traps the gas and most be released to allow wells to flow. Currently, QGC extracts around 12mg of water a day which is stored in evaporation ponds.

WASTE WATER OR WATER WASTE?

THE SALT LEFT BEHIND

THE CURRENT ANSWER

Water frozen by risks and costs Cost and risk are the two steepest stumbling blocks restricting the flow of coal seam water into local towns, according to Dalby Regional Cr Bill McCutcheon. The supply of waste water from gas fields has been targeted for Dalby, Chinchilla and Miles involving Queensland Gas Company, Origin Energy and Arrow Energy. Cr McCutcheon, whose portfolio is utilities, admits the companies are playing their part in the safe and affordable delivery of the water. “The companies so far have shown a willingness to be good corporate citizens and they realise they have a huge problem but huge potential on their hands with this water,” he said. “While they’ve been willing to discuss it we realise they’re learning as they go and the issue is a new one to all of us.” Since the potential of the waste water to local communities was realised, the costs of treatment and delivery have been of concern. Under a regional government the story is the same. “This council’s ambition is to make use of the water at the most reasonable cost to consumers,” Cr McCutcheon said. While government subsidies are the most obvious way to limit costs, Cr McCutcheon believes finding multiple users could work. Toowoomba Regional Council has indicated interest in the water while agriculture and industry could become potential users. “I could see major benefits in a large integrated pipeline but I could not see that being possible in the

“Our main focus is our communities but in saying that we’re not going to shut our eyes to an integrated network.” very near future,” Cr McCutcheon said. “With a very large program like that is can be very difficult to get up and running. “Our main focus is our communities but in saying that we’re not going to shut our eyes to an integrated network.” Another concern with the water is the impact it could have on infrastructure. Reverse osmosis treated water is low in calcium and could damage concrete structures if not dealt with. Cr McCutcheon is adamant the risk can be overcome and the cost of the solution is not “insurmountable”. He believes it is just about time. “It’s a difficult project to put together because nobody has done it in Australia and maybe the world,” Cr McCutcheon said. “We’re all breaking ground and we must realise the main focus of these companies is getting gas out of the ground. “But, in saying that, they’re rapidly coming to a position where they’re putting a lot of consideration into the use of the water.”

Surat Basin NEWS Thursday 19 June 2008

PAGE 7

LOCAL NEWS

Coal seam production increases Australian petroleum production slowed in the first three months of 2008 due to sharply lower production of crude oil and natural gas liquids. A key report — issued by energy economics group, EnergyQuest revealed that Australian petroleum production to March 31 fell 5.1 per cent to 106 million barrels of oil equivalent (MMBOE) — down from 112 MMBOE in the same threemonth period last year.

Meanwhile, continued growth in domestic gas saw coal seam methane production up 38.4 per cent “Coal seam methane production continues to grow strongly,” EnergyQuest chief executive, Dr Graeme Bethune, said. “It hit a new record of 34.3 petajoules (PJ) for the March 2008 quarter, making a total of 123.1 PJ for the 12 months to March This was nearly a quarter (23.8%) of the entire east coast gas production.”

Des Caling Drilling’s workforce taking part in a training workshop in Chinchilla last month under the guidance of an industry veteran.

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Meeting the skill shortage head on While Des Caling may have had the work, before his move to the Surat Basin he had to overcome a confronting issue affecting all industry — skill shortages Des Caling knows more than most the truth behind the adage it’s not what you know, it’s who you know. Three years ago he came to Chinchilla with the work, knowledge and technology to succeed. But, as most told him, staff would be the greatest barrier to that success. Rather than stand “flat footed”, Mr Caling has met the nationwide skill shortage head on and propelled his business forward. Des Caling Drilling started with two employee and one rig 10 years ago drilling for water in the greater Brisbane area. The business’ expansion has shadowed that of its only client — Queensland Gas Company. A Des Caling Drilling rig was the first to break ground in the major expansion of Berwyndale South, the gas field that in essence gave birth to QGC. Today, Mr Caling’s decision to come to Chinchilla has been validated with the company employing a workforce of 45 to service and run four rigs. “It was somewhat of a risk,” he said. But, what was more of a risk, was spending around $4 million on drilling equipment.

“In hindsight, it was a minimal risk.” Much of Mr Caling’s success has come from his ability to overcome the severe staff shortages plaguing the resource sector. That has not come easy. From day one he implemented an intensive training program run under the guidance of experienced supervisors. Today, industry veterans work alongside rig crews for two days a week. “Training is the future,” Mr Caling said. “If you stand flat footed the potential is that it could put you out of business. “Or, if you wanted to run with sub-standard workers — unskilled workers — it would only be a matter of time before there are severe accidents. “Training enhances your value in customers’ eyes.” But Mr Caling admits training is not the sole solution to recruiting and retaining staff in the competitive resources sector. When he first started out on the Surat Basin, staff would be trained only to be drawn away by other offers. “To find the right formula — it can be enormously soul searching,” Mr Caling said.

Surat Basin NEWS Thursday 19 June 2008

“In the highly lucrative world of resources, staff are often lured away to higher paying jobs jobs closer to cities or those that offer more benefits. “It's about much more than training, it's about career enhancement.” In early May, the continual training of Des Caling Drilling’s workforce centred on Chinchilla’s Great Western Motor Inn for a week. Singapore-based American Arthur Brazas of Energy Industries Training and Services was the latest industry specialist brought to Australia by Mr Caling. He conducted a week-long workshop on well control. It was not the first time Mr Caling had turned to overseas help to fine tune and upskill his workforce. “We're not waiting until trainers are available in Australia, we're bringing trainers to Australia,” he said. While Mr Caling’s contract with QGC and his company’s tailor made method to coal seam gas extraction ensures the work will always be there, he is aware training must continue. That is why his philosophy has and will forever be “training is the future”. “The future is blue skies only governed by our ability to keep training and to keep people motivated to be team participants for ourselves and QGC,” he said.

SPRINGB OR G

LOCAL NEWS

Time to give back Opposition Leader calls on State Government to get ahead of the resource game or to get out BY John Farmer editorial @suratbasin.com.au

pposition Leader Lawrence Springborg claims the State Government is not investing enough back into Queensland’s regions to support the resource boom. Mr Springborg’s comments, made at a business and community dinner in Chinchilla, came days before the coal industry was hit with a massive increase in royalties, up $2.2 billion on the previous financial year. He said the State Government’s failure to support boom regions of Queensland had left many communities languishing in the wake of “fast development”. “The mark of any good government is to make sure you’re ahead of the action,” Mr Springborg said. “That is the stark contrast between us on the non-Labor side of politics and the Labor side of politics. “They’re happy to just sit there and take the benefits of growth without actually reinvesting the benefits of growth.”

Mr Springborg claimed the Labor Government had not ensured regional Queensland was ahead of the need for infrastructure and services. He said the health, transport and emergency service sectors were prime examples. Mr Springborg argued the lifestyle of Queensland’s regions like the Western Downs was at stake. “If we're going to take the benefits of development than what we have to do is make sure that we re-invest to back up that development to ensure that services and facilities needed to maintain a lifestyle are put there in place, in time,” he said. “My real concern unless that's done — unless that happens here — we're going to see a micro-level happening in these regions that's now happening in the south east.” Mr Springborg said a nonLabor government would match the demands of the resource boom by ensuring communities were prepared for development. He said the approach would ensure a sustainable and long term prosperity, not the “boom and bust cycle” he claimed Queensland had been “subjected to for too long”. “Our approach to running Queensland will be understanding people have certain rights,” he said. “That in communities such as here on the Western Downs if we’re going to be encouraging development we’re going to be facilitating development.”

Opposition Leader Lawrence Springborg speaking at a recent community and business dinner held in Chinchilla.

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PAGE 9

OPINIONS Surat Basin NEWS 12 Mayne Street Chinchilla, QLD 4413 PO Box 138, Chinchilla, 4413 Phone: 4662 7368

PUBLIC OPINION:

Queensland Gas Company recently held an information night in Chinchilla to discuss its future plans. We asked four attendees:

What do you think of QGC’s decision to host an information night?

General Manager: David Richardson Advertising: Laurell Ison Editor: John Farmer

Editorial The cost is too much to just ignore Money should not be the main reason coal seam water remains trapped at gas fields and in storage ponds across the Surat Basin. But the fact it is shows a genuine lack of innovation and forward planning from the State Government. After all, just take a look at the state of Queensland’s water at the moment. Only last week, Brisbane City Council hit ratepayers with an 8 per cent hike as a result of ongoing water shortages. The State Government’s latest water projects have blown out to $2.4 billion and the final cost is likely to be much higher. Toowoomba’s water supply is down to around 11 per cent and there is talk of multi-million pipelines, bores and dams. And in south-west Queensland, existing weirs, dams and treatment plants are proving inadequate as the drought continues to bite. Even where communities have taken the initiative to use coal seam water, they have either missed out on funding (Chinchilla) or been left significantly short changed (Dalby). Now take a look at the state of industry not in Queensland, but just the Surat Basin. The energy province is predicted to attract close to $10 billion of public and private investment over the next four years. Its projects will not only power Australia for decades to come, but its resources will boost the Queensland economy considerably. The Surat Basin will be the home for major coal seam gas companies - water producers and massive coal mines - water users. The availability of affordable land, gas, energy and, possibly water, will attract new industry and manufacturers to the region. That will create a decentralising effect, easing the pressure of government-owned infrastructure in the state’s south east corner. It also means major population growth, placing new demands on local services and authorities. Meanwhile, through all of the money making and money wasting, the State Government slams coal miners with a massive royalties hike. How can cost be the one factor preventing coal seam water flowing into Surat Basin towns? The State Government must work with coal seam gas producers to make beneficial use of this resource. It must be willing to put its money where it really matters. There is simply to much at stake and the cost of not acting is far too great.

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 10

Dalby Regional councillor Bill McCutcheon “I think its good that these companies and in general, QGC are willing to be part of information nights like these and outlay their plans for the future. And those plans are extremely positive ones for the region.”

Doug Brodie

Judy Guzzwell

“It was good. I personally have been pushing for nights like these for years because we need up to date information on all these projects. If we haven't got the information too many people make up their own stories, which are often incorrect.”

“It was very informative and the crowd that attended showed the community is very interested in QGC's activities because they're going to affect all of us. I see this project as huge for our economy, employment and related industries.”

Talking up the pros and cons of an unstoppable industry This month in the Parliament I have raised issue of coal seam gas development in my electorate. I talked about the enormous size of this project, the speed of development and of course its value to not just the region’s economy but also the state and nation. New technology has allowed coal seam gas to be extracted, and of course we have stolen a march on the world. The world is now focusing on this area and there are many big players interested in making takeover bids for Australian companies. However, while this development is wonderful, there are also a number of issues. In the first stages of exploration there is a lot of traversing of landholders’ land. During the production phase wells are drilled and then evaporation ponds are built for the water. A significant amount of water comes out of these gas wells in the first instance, and that probably lasts 30 years. In fact, some wells do not produce much water, however the majority do, and the water diminishes over time as the gas flows. Then of course there is the export of this product. In this particular instance there will be a pipeline to Gladstone. It will cost nearly $5 billion to set up that pipeline as well as the export facility where the gas is processed

COMMENT Howard Hobbs MP Member for Warrego

then shipped across the world to run power stations etc. While there is this enormous development going on, landholders themselves are expressing concerns because of the speed of this development. In the past when there were pipelines, or exploration going through their properties, there was time for adequate consultation. However, there is a rush on at present moment. With the support of the government, most of these companies tend to want to put pipelines, roads on precleared freehold land that is owned by the landholder. Developers stay away from state forests in most cases where in fact they would be able to put pipelines through state forest using some of the existing roads and tracks.

course that varies. Somebody might have a pipeline through their place with little impact. Recently at a meeting people said they could not get enough information from the Department of Mines and Energy’s web site and that there were not enough people in the department who could advise people as to their rights and what is happening. Better information needs to be provided and the Department has committed to assist. There is also concern about the amount of water that is being produced — and I am talking about several hundred megalitres a day — and whether that water is coming from the artesian basin. I have been advised by the Department that this water does not come from the artesian basin. The big rush is on! There is a need for cooperation from both landholders and developers and an understanding that both parties play a valuable role in the development of our region.

“New technology has allowed coal seam gas to be extracted, and of course we have stolen a march on the world. The world is now focusing on this area and there are many big players interested in making takeover bids for Australian companies.”

Surat Basin NEWS Thursday 19 June 2008

Unbridled potential

We need co-operation

Finding the balance

The Surat Basin has given Queensland the chance at a century of opportunity Michael Roche, QRC

Landowners and resource companies must work together, not against each other Howard Hobbs, MP

Despite the Surat Basin’s riches, there is a need to ensure agriculture is not forgotten. Bruce Scott, MP

Keynote address: A century of opportunity An excerpt of a speech made at the Surat Basin Coal Conference In one year, tax receipts from mining grew by 18 per cent to 5.2 billion dollars. Overall, total direct and indirect tax contributions to federal and state governments from mining were 9 billion dollars – an increase of 17 per cent over the previous year. Governments need to recognise that there is a degree of windfall benefit in these revenue increases that should be applied to fundamental economic reforms, to drive future productivity and additional wealth creation. The resources sector is regional Queensland's biggest employer, responsible directly or indirectly for one in every eight

COMMENT Michael Roche Chief Executive Queensland Resources Council

jobs in the state. In the Bowen Basin, coal is responsible for one in every four jobs and there's every reason to expect a similar situation in the Surat Basin in coming years. Mining companies are matching market growth forecasts with new infrastructure investments that I spoke of previously but there is no denying increased social pressures on all the stakeholders. State and local governments – along with industry – have to come up with solutions. At the QRC, we are pleased to have been instrumental in the development of a Sustainable Resource Communities Compact, which I expect you will

hear a lot more about soon. It's a partnership between the resources sector, local and state governments to ensure that everyone is aware of and committed to their roles in improving the quality of life in resource sector communities. This is not an easy task, but one that has to be addressed if the so-called ‘mining boom' becomes a self-fulfiling prophecy because of skills and labour shortages. The latest national research suggests that mining in Queensland will require an additional 23,500 people by 2020. They will be mostly highly skilled people and well paid for their labours.

Balance needed during the boom Australia is indeed the lucky country. Blessed with an abundance of natural resources, Australians have long benefited from the land's mineral and agricultural wealth. The electorate of Maranoa, which I proudly represent, has been a major contributor to Australia's prosperity, playing a vital role in the coal, gas, cattle and agricultural industries. And with the Surat Coal Basin still in its early stages, we are yet to fully realise the true potential of the region. The Surat Energy Resources Province will undoubtedly make a significant change to the eastern part of the Maranoa electorate, and it is important that all levels of government focus on the urgent and increasing need for infrastructure upgrade. The Basin's development will bring a population surge that will in turn require safer roads, bigger schools and better health facilities. It certainly is an exciting time for the people of the Surat, Wandoan, Roma, Chinchilla and Dalby regions, and it is essential that the representatives at a local, state and federal level do all we can to ensure that the people of the province are not left behind during this rapid change. Perhaps most importantly, we must make certain our agricultural resources in the area are not forgotten. While Australia prospers from its natural wealth, many parts of the world are currently struggling with the scarcity of food supplies. With the United Nation's World Food and Agriculture

Whether they choose to live near where they work will depend on a number of factors, including the lifestyle issues that I alluded to earlier. ‘Company towns' in the mould of a Mount Isa or Broken Hill are a thing of the past. The only true company town left is …Canberra. Although usually a corporate preference, there is no winning argument for employees to live near mine sites at a time when a professional skills shortage running hot across the sector. For example, we know of senior coal mining people being poached to work in Western Australia's Pilbara region. The competition for skilled people is tight and we can not deny that money is a big factor. However, we also know that around a third of the country's miners live in Queensland even though they all don't work in Queensland. That's a straightforward, 100 per cent lifestyle decision. Today, around 25 per cent of mining jobs in the Bowen Basin are held by non-resident workers. However, anecdotal evidence suggests that up to 60 per cent of a workforce may chose to live locally if offered a real choice. To have a real choice, they need to be supported by adequate infrastructure and services including health

and education, and particularly, the availability of housing and land. Need I remind anyone who has noted recent land releases in the south-east, that these services are core state government responsibilities? While mining companies will continue to support their communities through proactive local programs – including in some cases the employment of essential medical staff – governments have got to take responsibility for providing services to taxpayers regardless of where they live. Everyone is under pressure to make things work right in the Surat Basin, and we welcome the role being played by local government in bringing their issues to the attention of the state and federal governments. I am sure Queensland and Australian Local Government Association president, Councillor Paul Bell, will make another outstanding contribution to this conference later this morning. Ladies and gentlemen – there are extraordinary opportunities unfolding in the Surat Basin. You will hear about many of them today. Listen to what people are saying and consider the possibilities for what is clearly more than a century of opportunity for the Surat Basin.

COMMENT Bruce Scott MP Federal Member for Maranoa

Organisation recently meeting in Rome, the subject of the looming food crisis has never been so pertinent. With world food prices at their highest, and stockpiles dangerously low, Australia has the potential to strengthen its international position as a global supplier of clean, green food. To do this, however, we must ensure our prime agricultural land is not sacrificed for the resources that lie below. More must be done to guarantee our agricultural resources will be protected. Our ability to provide food to the world will soon be as important, if not more so, as our ability to provide gas and coal. We must ensure, during this exciting but uncertain time of development, that we strike the right balance between taking advantage of the mineral wealth of the Surat Coal Basin and protecting the prime agricultural land of the Darling Downs and Maranoa.

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PAGE 11

Surat Basin News

SURAT LURES GLOBAL HEAVYWEIGHTS

NOT LONG NOW: Linc’s commercial ambitions

Pages 16-17

RESOURCES

VOICE YOUR OPINION: editorial@suratbasin.com.au

www.suratbasin.com.au

ACT NOW: Springborg calls for government and industry partnership

Lack of infrastructure prevents coal seam gas water delivery Continued from P.1

PAGE 13

Surat gas down south New Hunter gasfired power station has paved the way for a link between Surat Basin gas fields and the markets of eastern New South Wales. PAGE 7

UCG and its boon for Queensland An independent review has revealed within 20 years UCG could be worth $600 million a year to Queensland and a lot more to the global energy sector.

PAGE 12

QGC commercial development manager Peter Bates speaking at a recent community forum in Chinchilla.

Local group to talk sustainable growth The Western Downs Regional Development Corporation (WDRDC) has been selected to present a paper at the Sustainable Economic Growth For Regional Australia (SEGRA) conference. This year's 12th annual program will unfold on August 18-20 in Albury, New South Wales, and will have action agendas in five key areas including regional Australia and the national agenda, developing sustainable economic development, tools and models for regional development, successful case studies and climate change. Beth Wood, project officer for the Dalby and district component of the Western Downs Skills Project submitted a paper on behalf of the WDRDC entitled, ‘Daring to be different in the Western Downs'. The paper has been selected for presentation along with 40 other submissions across Australia, and is the only submission from south-west Queensland. Other accepted Queensland SEGRA submissions are from academics and universities in Rockhampton, Townsville, Brisbane and the Sunshine Coast. “Being part of the conference gives us the chance to highlight the progress of group and promote the positive steps we

are taking in response to the significant growth and development facing our communities. “I am extremely pleased to be representing our region and look forward to the opportunity to send our message far and wide,” Beth said. The regional development group was formed in December 2006 and recently adopted a more formal structure including the appointment of a board. The WDRDC encompasses a region that stretches from Dalby west to Roma, and Surat north to Wandoan. Members include local industry, council, state government, chambers of commerce and related organisations including the University of Southern Queensland and SQIT. “Already the group has seen the benefits of working collaboratively and have chalked up some successes on the board,”

Paul Hodda, chair of the WDRDC, said. “Presenting our story at SEGRA is just another way to send a positive message about our terrific region and the opportunity it presents for an idyllic lifestyle, as well as being a great place to do business.” In addition to focusing on solutions to address skills shortage, a key objective is to promote the lifestyle and investment opportunities of the Surat Energy Province. The next step in the communication plan is to develop a regional web portal, with an interim site currently in development with assistance from the University of Southern Queensland. The interim web portal is due to go online to coincide with the Surat Basin Energy Conference to be held in Chinchilla on August 21-23, where web viewers will be able to see live links from the conference.

“Being part of the conference gives us the chance to highlight the progress of group and promote the positive steps we are taking in response to the significant growth and development facing our communities.”

Surat Basin NEWS Thursday 19 June 2008

RESOURCES

Station powers Hunter pipeline Missing link in eastern gas network to finally go ahead

QGC production co-ordinator Jorge Pinedo at Berwyndale South, which could soon be supplying gas to a new NSW power station.

The missing link in the east Australian gas network will be built after an agreement was reached for Queensland Hunter Gas Pipeline (QHGP) to transport gas for a proposed major new gas fired power station in NSW. QHGP managing director Garbis Simonian said the pipeline will transport 50 petajoules of gas a year for 20 years for the 400-600 MW power station, proposed by Queensland Gas Company, ANZ Infrastructure Services Ltd and Toyota Tsusho Corporation. “This is approximately onethird of the pipeline’s ultimate capacity,” Mr Simonian said. The privately-funded QHGP will transport coal seam gas collected in the southern central Queensland fields to Newcastle, NSW, through an 820km underground natural gas pipeline. It will be the third major gas supply into the greater Sydney region. Mr Simonian said the proposed pipeline also provides opportunities for the transport of emerging coal seam gas reserves in regional NSW,

RIG 10

encouraging exploration and production along its route, including the gas rich Hunter and Gunnedah basins. Construction of the pipeline is anticipated to start late next year. Gas flow is expected to commence in the first quarter of 2011. “The pipeline will create approximately 600 jobs during construction and 25 direct jobs when operational. These jobs are in addition to the 400-600 jobs expected to be created during the construction phase of the proposed power station.” Mr Simonian said major beneficial flow-on effects for the Queensland and NSW economies are expected, particularly the regional towns of northern NSW, close to the pipeline route. “Many of these towns, where gas will be available for the first time, have enthusiastically embraced the project, both for potential localised power generation and industry.” The new power station development would supply electricity to between 320,000 and 500,000 homes. The location of the new power station is the subject of further discussion between its proponents and government authorities. The proposed pipeline route.

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RESOURCES

Commercial ambitions within sight Linc Energy’s dream is closer to reality with construction on its pilot plant almost complete and a growing resource base.

BY John Farmer editorial @suratbasin.com.au

inc Energy has started to prepare for commercial operations even before construction on a pilot plant at Chinchilla is completed. The company last month lodged a mining lease application with the Queensland Government for the commercial

E N G I N E

scale plant. The lease covers 10,000ha and is believed to contain a coal resource of 401 million tonnes, which could provide up to 60 years of syngas feed stock to produce 20,000 barrels-a-day of ultra-clean diesel and aviation fuel a day. Managing director Peter Bond said the application was a significant milestone for Linc Energy. “In this relatively small area, we will be producing huge amounts of energy that we will convert into sorely needed ultraclean diesel as well as power for our plant,” he said. “All this will be achieved with

S E R V I C E S

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Linc Energy chief operating officer Stephen Dumble and geologist Dave Carroll discuss the company’s exploration program. a minimal surface footprint. “This is the start of a very lucrative industry for the people of Queensland and the valueadded impacts of our proposed Gas to Liquids facility will be enormous.” Linc Energy’s pilot plant, designed to produce seven barrels of diesel a day, is close to being completed. Chief operating officer Stephen Dumble said plant utilities had been commissioned and operators had completed their

T U B U L A R

S E R V I C E S

training. A team of around 40 will operate the demonstration while progressing the commercial plant. “We’re in the final stages of preparing for operation readiness,” Mr Dumble said.

Fuel produced from the plant will be stored in three, 55,000litre storage tanks, with Linc Energy more concerned about the plant’s performance than the product. “The primary purpose of the

“This is the start of a very lucrative industry for the people of Queensland and the value-added impacts of our proposed Gas to Liquids facility will be enormous.” •

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“We’ve been going at a hell of a pace, a really good pace and we’re not going to slacken off.” plant is to demonstrate the technical feasibility of actually producing Fischer-Tropsch liquids from UCG synthesis gas,” Mr Dumble said. “The demonstration plant was never designed to be a commercial plant — it was designed to demonstrate that principal and we’ll try and learn as much as we possibly can about the performance of the plant so we can apply that learning to the design of the commercial plant.” Linc Energy plans to begin commercial operations by 2012 and Mr Dumble admits some of the company’s focus is on that date. “Obviously time is of the essence and we’re going to move as quickly and as aggressively as we possibly can,” Mr Dumble said. “That three to four years is probably a practical minimum but again it will depend on the rate at which we can keep pushing this business along. “We’ve been going at a hell of a pace, a really good pace and we’re not going to slacken off. “The intent is to move this business into being a commercial business as soon we can achieve that.” While the begin-

ning of the demonstration represents another major milestone for the rapidly growing company, Mr Dumble said commercialisation remained the ultimate goal. “We look beyond that milestone because we all believe this business has fantastic potential and we believe in the value that this combination of UCG, Fischer-Tropsch technology and our strong resource base here in Australia,” he said. “We’re looking beyond commercialisation but nonetheless those of us who believe in this dream seeing that demonstration plant produce liquid fuels will, be to some extent, reaffirmation the dream’s going to become a reality.” Meanwhile, last month Linc Energy announced a Memorandum of Understanding with Huadian Coal from China. The Huadian Coal is one of China’s largest coal mining companies. It produces more than 30 million tonnes of coal a year and owns in excess of 23 billion tonnes of coal in more than 21 provinces throughout China. Huadian Coal views UCG as an important

Linc Energy’s demonstration nearing completion. source of clean energy for both power and liquid fuels production. Linc Energy and Huadian Coal intend to jointly pursue opportunities to utilise Linc Energy’s UCG technology and expertise in gas-to-liquids within China. In addition the two groups will investigate investment opportunities whereby Huadian Coal may invest in Linc Energy and possibly some of Linc Energy’s Australian projects. Linc Energy general manager of business development Justyn Peters said Linc Energy had been approached by numerous international companies with proposals to enter into commercial agreements. “We choose our partners carefully and we are pleased to join with the Huadian Coal

plant, which will produce seven barrels of diesel fuel a day, is Industry Group,” he said. “They are an extremely large and ambitious company, with a growth philosophy similar to ours at Linc Energy.

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RESOURCES

Shell takes a $776 million stake in Arrow Arrow Energy’s plans to become Asia’s leading coal seam gas (CSG) company received a major boost recently after the company announced a major alliance with global energy giant Shell. Arrow Energy chief executive officer, Mr Nick Davies, said Shell Exploration Company, a subsidiary of Royal Dutch Shell PLC, will join with Arrow to develop the company’s Australian and international CSG projects. The two companies have signed a preliminary agreement, which details a number of domestic and international transactions due for final execution by the end of August. The $776 million deal represents a major step forward in the realisation of Arrow’s CSG to LNG strategy. Shell will have the right to offtake LNG produced utilizing gas from the Arrow/Shell upstream tenements, subject to the execution of a binding agreement for such offtake, on market based terms with the LNG sellers. Mr Davies said the deal was a company making event for Arrow. “Arrow has the largest CSG acreage position in eastern Australia and a growing presence in four Asian countries. Working with a world leading energy player like Shell will serve to make the most of our world class assets and expertise and deliver tremendous value to shareholders,” he said. “This is the most significant

PAGE 16

milestone in the company’s history. “Shell is extremely supportive of the potential for LNG development in Queensland. “This transaction is a significant endorsement of and further step in the execution of our margin enhancement strategy and will facilitate Arrow’s goal to connect its large onshore gas resources with high value and strongly growing international markets.” Shell intends to take a 30 per cent interest in Arrow’s Australian upstream tenements for up to A$644 million and a 10 per cent stake of Arrow International Pty Ltd which holds all of Arrow’s international assets for up to $132 million. The Australian acquisition consists of an $435 million upfront payment, an $140 million payment upon final investment decision of an LNG project; and a further $70 million payment when the LNG project is producing an annualised equivalent of one million tonnes per annum of LNG. The transaction excludes all of Arrow’s downstream assets, such as pipelines and generation assets and also excludes Arrow’s corporate shareholdings. “This alliance will significantly advance Arrow’s development plans, deliver exceptional value to our shareholders, create hundreds of jobs in Queensland, and position the company as a dominant player in the global CSG marketplace,” Mr Davies said.

The Surat Basin’s coal seam gas has sent some

Global giants begin Surat gas stampede Once just a hazard to farmers and rig crews alike, the Surat Basin’s coal seam gas reserves are driving an industry taking the state around the world, John Farmer reports. There is an old yarn told in bars and around water coolers in towns west of Toowoomba through to Roma and beyond. Man drills for water, strikes gas and sets something, sometimes even himself, alight. Chinchilla’s story comes from an old farmer in the Hopeland district — Roma’s will forever live in infamy as the tale of the Great Fire of 1908. But what was once considered a hazard has sparked a modern-era gold rush rising up from the state’s south-west. The coal seam gas industry is

currently worth $160 million a year to Queensland and soaring, with global energy giants everyday stampeding into the market. And their target — the Surat Basin. The expansive energy province covers an area of 270,000 square kilometres, from Toowoomba to Roma and south to the Queensland border. It could contain up to 15,000 petajoules of untouched coal seam gas on top of the 3500 already being pumped out of the ground.

Surat Basin NEWS Thursday 19 June 2008

Queensland’s current consumption of coal seam gas is around 150 petajoules a year, close to 65 per cent of total gas consumption. While largely undeveloped three years ago, the Surat Basin today hosts some of Australia’s largest and most productive coal seam gas fields. Travel west from Toowoomba and Arrow Energy is first on the list. Located 20km south of Dalby, the Tipton West gas field — one of three in the area owned by Arrow — is touted as the country’s largest onshore gasfield. A few weeks ago, Arrow signed off on a deal with global heavyweight Shell worth $776 million. Chief executive Nick Davies said the deal would propel Arrow, a company already worth more than $2 billion, through a steep growth curve

RESOURCES

of the world’s energy giants stampeding to claim their share in the riches

From Roma, Santos is leading the race to get Queensland coal seam gas to Gladstone LNG plants and around the world. The $780 million gas-fired over the next six years. By 2009, QGC could be supFurther west along the power station will be the plying around 20 per cent of rugged Condamine Highway largest of its kind in Australia Queensland’s domestic gas — past the crossroads leading when it is completed in 2009. market. to Chinchilla — is Origin The 630-megawatts of elecThe Queensland tricity it will produce is Government can take some Energy’s Talinga gas field. Relatively undeveloped enough to power 400,000 responsibility for the way coal compared to the company’s homes. seam gas has boomed in the Spring Gully field near Roma, Only kilometres from Surat Basin. Talinga is set for major expan- Talinga lies Berwyndale In 2000, it introduced the sion to feed the Darling South, a gas field that has 13% Gas Scheme that Downs Power Station, under transformed Queensland Gas required electricity retailers construction south-west of Company into the state’s to source at least 13 per cent Dalby. third largest company. of the electricity they sell in

Queensland from gas-fired generation. At that time, coal seam gas was supplying around two petajoules — less than five per cent of the state’s gas requirements. Today, it is supplying closer to 70 per cent. QGC’s production superintendent Aderian Nixon has spent his working life in the industry and explains the impact of the scheme. “They created a market whereas before it was a struggle to get into the market,” he said. “That helped and from there it’s been like a snowball. It’s got bigger and bigger as it’s built up steam running downhill.” But the coal seam gas producers of the Surat Basin have a hunger domestic markets can not satisfy. They are looking globally and at the highly lucrative liquefied natural gas market. There are four projects on the drawing board to pump coal seam methane gas from the Surat Basin through to Gladstone and turn it into liquid for export. The projects will add up to more $17 billion worth of planned capital investment and around 3000 construction jobs. It is a move that has attracted fervent attention from the global energy giants. BG Group signed an $8 billion deal with QGC to help develop an LNG plant before turning its attentions to Origin and an attempted $15 billion takeover. Last week, Santos signed with Malaysian company Petronas, the

third largest LNG company in the world, and the largest in Asia. That deal saw Petronas take a $2.25 billion stake in Santos’ $7.7 billion LNG plant. For the potential of the LNG market, look no further than Western Australia, where today 11.9 million tonnes of LNG is sent around the world every year. Energy Minister Paul Lucas agrees demand for Queensland LNG is only going to soar. “This growth is expected to continue, driven by increased electricity demand, rising oil prices, a desire by countries to reduce their reliance on the Middle East as a source of energy, and the cleanliness of coal seam gas compared with other fossil fuels,” he said. Times have changed from the days when gas meant little more to the region than fuel for bar room yarns. Today, it is driving a modernday gold rush set to create new found prosperity in the towns of the Surat Basin — from Toowoomba to Dalby, Chinchilla, Miles and Roma. But what will be the extent of that prosperity? QGC commercial development manager Peter Bates expressed industry’s point of view when he addressed a community meeting in Chinchilla last month. “We believe there are exciting times ahead and we want you guys to be involved,” he said. “We want the communities we operate in to prosper and share in these exciting times with us.”

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PAGE 17

RESOURCES

THE UCG PROCESS

The Linc to an innovative future An independent review of underground coal gasification has found within 20 years the process could transform global energy markets while boosting Queensland’s economy by $600 million a year

Courtesy of Linc Energy

UCG PRODUCTS Underground coal gasification creates a synthetic gas, which in turn through different processes can be used to produce: • power and steam • naphtha • waxes • diesel/kerosene • synthetic natural gas • acetic acid • methanol • methyl acetate • acetic anhydride • fuel/town gas • ammonia/urea • dimethyl ether • ethylene & propylene • polyolefin • oxo chemical

Underground coal gasification could within two decades be contributing $600 million a year to the Queensland economy while easing strains on global energy reserves. That is according to a PricewaterhouseCoopers review released last month that looked at the potential of underground coal gasification and its value added products. The report's authors were engaged by Linc Energy, a company that within weeks will turn the syngas created by UCG into ultra clean diesel fuel from its Chinchilla site. Linc Energy's demonstration plant, which is currently being commissioned, has been designed to produce seven barrels a day but will pave the way for a 20,000 barrel-a-day commercial plant. Linc Energy’s general manager, government and environmental affairs, Justyn Peters said the report was a landmark study into UCG for Queensland, Australia and “ultimately all countries with vast stranded coal resources”. “This study demonstrates that UCG is an industry that has enormous commercial potential, has very important and possibly massive implications on energy security and most importantly, can deliver on these two issues whilst delivering significant environmental benefits,” he said. “We commend this study to anyone interested in creating a genuine and viable new energy regime, whilst minimising the impact of coal on our environment.” The PricewaterhouseCoopers report stated that if within 10 years UCG represented 10 per cent of current coal

production, the gross economic impact in Queensland would be around $591.7 million a year. Furthermore, the reported estimated around 19 full time jobs would be created over the next 12 months, increasing to just less than 820 by 2028. The figures do not include royalties paid to the Queensland Government, which under the 10 per cent scenario would be just more than $164 million within 20 years. The report's authors wrote the scenario was “both conservative and responsible”. UCG's economic benefit will not come solely from Linc Energy with several other companies using the technique at projects throughout the Surat Basin and other parts of Queensland. Cougar Energy has announced a 40MW UCG power station near Kingaroy while Carbon Energy has started development at Bloodwood Creek, south-east of Chinchilla. One of the reasons UCG has the potential to “substantially increase global energy reserves” comes from its ability to make use of inaccessible or poor quality coal. The report's authors state: “A significant aspect of UCG is that it has the

potential to greatly increase coal resources as it enables the utilisation of coal reserves that, for financial or practical reasons, could not be otherwise mined. “In particular, UCG can access poor quality or deep coals that may not be economical to mine.” With that in mind, the report reveals 45 per cent of Australia's coal reserves are available to UCG extraction, equating to 16 billion tonnes in Queensland. However, the overall picture could be even better. The report revealed while there are currently 909 billion tonnes of proven coal worldwide, the resource is closer to the 6000 billion tonne mark, “suggesting that only 15 per cent of the resource is currently accessible”, the report states. The authors add UCG could “potentially access a portion of this otherwise uneconomic or unmineable coal resource”. Another reason UCG could ease strain on global energy is the versatility of syngas. According to the report, it can be “utilised in efficient power generation, transformed into synthetic natural gas or liquid fuels, or used as a chemical feedstock”.

“This study demonstrates that UCG is an industry that has enormous commercial potential, has very important and possibly massive implications on energy security...”

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PAGE 22

Looking out for big rigs Diesel Electrics in Dalby has expanded to offer an impressive new facility for heavy machinery working on the region’s farms, mines or highways. PAGE 22

Helping change attitudes As the largest employer of apprentices and trainees in Roma, Sharpe Engineering is changing the way industry looks at workplace training.

Mine, where it will be washed, all under way. The sample pit is set to provide approximately 50,000 tonnes of coal for trial washing and coal sampling. Results on the pre-feasibility study of the coal project are expected by the end of the next year. Ostwald Bros. CEO Brendan Ostwald said the Wandoan sample pit crews were performing above expectations and the project was likely to be completed ahead of schedule. "A lot has been achieved in recent weeks and our crews are working effectively to complete

Website offers the complete Surat Basin picture There is now one place investors, home buyers and developers can go to unlock the true potential of the Surat Basin. Surat Basin Developments went online earlier this year with the launch of a website that combines the projects of the energy province with the capabilities of the development company. The website (suratbasindevelopments.com.au) links users with breaking news on the activities of resource companies that everyday etch their mark in the dynamic region. The site also provides a complete overview of what Surat Basin Developments offers — whether it is complete project development or linking people with investment or construction opportunities. Managing director Warren Daniells said the idea behind the website was to offer the complete picture. “We could have gone online just to show people what as a company we’re capable of doing, but we wanted to do more than that,” he said.

“It’s all about peace of mind development and investment. “The website shows people that as a company we have a proven track record of meeting customer needs. “It also shows that as a region the Surat Basin is ideal for investment. “It’s not just what we can offer, it’s what

Surat Basin NEWS Thursday 19 June 2008

the Surat Basin can offer.” Mr Daniells hopes the Surat Basin Development website soon becomes the first point of call for potential investors and developers. Visitors can navigate to any of the developments the company has played a part in from Sovereign Park Estate to Glasson Street Villas and Bottle Tree Estate. From there, they can discover all they need about the region or their targeted investment. “From the comfort of their own home or office, investors, developers and home buyers can make an informed decision on how they want to make their mark in the Surat Basin,” Mr Daniells said. “Everything is at their disposal, from the price to block sizes, the type of developments available and even an idea on the future of the region they may soon be investing in. “In many ways the website is our silent salesman.”

PAGE 19

THE COMPANIES

Riding the resource boom in comfort and style Chinchilla company Maguire Coaches has won the contract to run the twice daily bus from the from Origin Energy's workers' camp in Dalby to the Darling Downs Power Station. A camp for 550 workers is being built at the Dalby site. At the moment two coaches are running early each morning and returning at the end of the shift, but another 50 workers are arriving soon. Maguire Coaches expects to eventually use up to 10 coaches to transport the workers. Kaye and Leo Maguire took over the bus company from Kaye's dad in 1988 when it used to be the school bus run, and now have four coaches and three mini coaches. "”I never expected that we'd be in this position,” Mrs Maguire said. “It's amazing to go from being a quiet town to the buzzword in the energy industry.” Mrs Maguire has been taking tour groups around the area for several years. “We're often called on to showcase the area when there's a conference on and during the Melon Festival,” Mrs Maguire said. She has ploughed through several local history books and used her local knowledge to come up with tours that are interesting and different. “I like to find some real sto-

Doug McNally demonstrates the Rhino Linings protective spray that can be used in ute trays and trucks to prevent dents and create a non-stick surface.

Making inroads with a new investment Kaye Maguire took Diversified workers from the QGC site near Condamine to town to celebrate two years without an accident on the site. ries about the places we go to, not just this building was built in this year,” she said. At the last Melon Festival in 2007, Mrs Maguire had some new attractions to add to her tour. She put together an energy and industry tour which visited Kogan Creek. Adding to the traditional industries of farming and forestry, she talked about Linc Energy's plans for coal seam gas and visited a Queensland

Gas Company field. “Queensland Gas and Origin Energy are taking people from an ordinary job and training them in new technology,” Mrs Maguire said “It's exciting. Things are happening in town. “I love this area, I grew up here. It's great to think there's a future for our young people here. “There's an opportunity for them to work, but not just in the same old jobs.”

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With the boom in industry in the Surat Basin, Rhino Linings look set to be in demand. Rhino Linings is the top brand in industrial protective coating, and can be used on utes and in industry to protect from abrasion and corrosion. Instead of plastic coating or paint, a polyurethane spray is applied to the surface of ute trays, and protects the ute tray from damage and also provides a nonstick surface. Like using a teflon pan for cooking, a ute tray protected with Rhino Lining means tools won't slide around and get damaged, and the surface is also dent-resistant. Doug McNally from Beaurepaires in Chinchilla is making inroads with his new Rhino Linings' business. “Its use is incredibly large. It can be used on floors, showers, utes, as far as your imagination can take it,” Mr McNally said. As the area is rapidly changing, Mr McNally is also looking for something new and believes his

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Surat Basin NEWS Thursday 19 June 2008

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THE COMPANIES

A place to live and work for Surat Basin workforces With projects like coal mines, rail lines and power stations, large yet temporary workforces are inevitable. The Surat Basin has seen 1000 workers come and go with Kogan Creek Power Station construction, while another 500 have set up in Dalby for Origin’s Dalby Downs Power Station. Recognising these workforces need somewhere temporary to live — and often fast — M&P Services will set up a base in Dalby to service the Surat Basin. The new premises will be similar to the modern 2000 square metre base located at the Mackay Port Authorities Harbourside Industrial Estate. M&P Services is a family owned and operated business established in 1986. The company deals in the hire, sale and manufacturing of transportable buildings. Since then M&P have put together a unique range of services to become on of the largest multiservices provider to many local, national and international companies operating in Queensland. Its range off services support mining, construction, sugar, agricultural, residential and tourism industries. Safety has been at the forefront of M&P Services success with many of their procedures, ethics and standards being adopted by

most who work around and with them. Max Lamb Jnr, who owns and operates M&P Services with his father, believes the company could have a long and successful association with the Surat Basin. The company has even purchased land in Wandoan pre-empting the start of development on the region’s major coal mines and the Southern Missing Link. The land will be used to develop accommodation for M&P Services’ workforce. That workforce will be deployed to build temporary accommodation, offices and amenities. “We’ve done a lot of big tenders and put a lot of thought and research into the Surat Basin,” Mr Lamb said. “There’s a lot of potential. You just have to look at all the coal seam gas technology, coal mines and power generation. “Projects like these need workforces who need accommodation.”

“We’ve done a lot of big tenders and put a lot of thought and research into the Surat Basin.”

CHINCHILLA

Tax time for fresh start Have you thought about your New (financial) Year resolutions? Dalby-based senior financial planner Shane Lee of BMO Financial Services, says the end-of-financial-year is a great opportunity to get all your financial affairs in order and get you on track for a prosperous new year. Here's Mr Lee's tips for kicking off the new financial year the right way: Get your tax refund sooner rather than later If you're pretty sure you'll be receiving a tax refund, get your 2007-2008 figures together as soon as you can. Mr Lee recommends using a qualified accountant to complete your tax return rather than the Do-It-Yourself method. “It might cost you a little bit more, but you'll usually find yourself in a better position if you get professional advice. And besides, accounting fees are tax deductible. “If you receive a refund you can use it to pay off credit card or personal debt or kick start an investment program. The sooner you're making that refund work for you, the better.” Review your spending Do a review of all of your income and spending for the year (as best you can). Where are you overspending? Where can you cut back? Some people find that small changes — like limiting take-away to one night per week, can have a big impact across the year. For example, deleting one family takeaway meal per week can add up to something like $1500 over the year! Discuss your goals Sit down with the family and talk about your short term plans for the 2008-2009 year. Do you want to save for a particular item — a new TV, a holiday, or the children's education fund? Then discuss your long term goals: What are your dreams for retirement? Do you have a picture of where you want to be? How much money will you need to be comfortable? Prepare a budget According to Mr Lee, the dreaded “B” word doesn't have to be scary if you are realistic about it. “Don't pretend that you're not going to buy a few frivolous things — but instead look at your spending patterns for last year and make allowances. If the budget is real then you have a better chance of sticking to it.” Most financial planners will have a program or template that can help you create an effective budget that's tailored to you.

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BMO Financial Services’ Shane Lee wants to help get our financial affairs in order. family stopped receiving your income because of injury, illness or death, would they still be able to make your mortgage payments, pay the electricity and phone, what about groceries or school fees? "”The last thing you want to do is lose the home you've worked hard for because you didn't have the right insurances in place. Most people discover they don't have nearly enough insurance protection,” said Mr Lee. Get professional help! “Many people don't realise the importance of using the services of a financial planner to get started on an investment program designed to grow wealth over time,” Mr Lee said. “A good financial planner can help determine your financial goals and needs — taking into account your personal goals and dreams, create a tailored financial plan for you, and recommend investment and financial products.” And he stressed that financial planning is not just for the wealthy. “You don't have to be in big business earning millions. Everyday wage earners can get excellent value from financial planners. Especially if you have started dabbling in investing or savings plans but aren't sure if you're on track. You might have a rental property or a few shares, maybe a mortgage — a financial planner can help you structure your financial affairs to give you the most benefit. “Simple changes to the way you have your investments structured, or the way you are saving for the future can make a big difference to the kind of retirement you're going to have.” Information provided in this article is general in nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend obtaining financial advice specific to their situation before making any financial decisions or investments.

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PAGE 21

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THE COMPANIES

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New drive-thru service catering for region’s heavy machinery Local transport, agricultural, earthmoving and mining companies are set to benefit from an impressive new auto electrical and air-conditioning service centre recently opened by Dalby business Diesel Electrics. Diesel Electrics, owned by husbandand-wife team Anthony and Kellie Wenning, relocated to the new customdesigned Warrego Highway building in May to address the needs of the area's expanding transport, energy, mining, ethanol and farming companies. The first of its kind in the region, the new service centre offers highway access to a ‘drive-thru' workshop for trucks and heavy equipment, a large new showroom and a purpose-built technical training room. “We have been watching the growth of our region and staying a step ahead by combining traditional auto electrical services with new technologies. “Relocating to the new building has allowed us to be even smarter about how we look after our clients.” The Wennings said their goal was to offer modern products and services, while still giving customers good old-fashioned country service. Known for their down-to-earth approach and genuine dedication to customers, the Diesel Electrics team offers a wide range of automotive and auto-electrical products, including • automotive air conditioning • central locking, electric windows and car alarms • alternators, starter motors and generators • batteries and accessories • auto guidance and GPS • car audio and communications • switches, circuit breakers and fuses • lights and truck/trailer accessories • monitoring equipment — watchdog systems • plugs and connectors The new facilities complement Diesel Electrics' three fully equipped field service vehicles that can attend to breakdowns on

Diesel Electrics owners Anthony and Kellie Wenning are responding to industrial growth across the region. site — 24 hours a day, 7 days a week. “We know how costly time delays can be for our customers, so if it means getting up at one in the morning to get a truck back on the road or keep a machine going, we'll do it,” Mr Wenning said. It's this dedication that saw Diesel Electrics recognised as a valuable part of the Dalby business community taking out the trade services award at the 2007 Dalby Chamber of Commerce and Industry Business Excellence Awards. Mr Wenning attributes Diesel Electrics success to its committed team. “Our staff are amazing — they each put in 110 per cent — and the way we work together as a team is our strength. “Giving our staff opportunities to expand their skills and knowledge through product and trade training is important to us.” To this end, the business has incorporated a custom-built training room into the new complex. The training room is equipped with a Bosch test bench for testing and rebuilding alternators and starters, multimeters, bat-

tery load tester, plus cross section models of a compressor, alternator, starter motor and battery (and is available for hire for interested parties). But Mr Wenning said that team building was just as important as technical training. “Part of running a good business is having a motivated team. It's no good having high technical competence, if your employees don't enjoy what they do and your customers don't feel happy about dealing with you. “We've done some really fun things like going away for a weekend to play skirmish. We've also put some practical measures into place in the workplace, like turning the business hierarchy upside down. “This is a good way to keep us focused on customer service and giving our team a bigger say in the direction we go with the business.” Diesel Electrics is always seeking out qualified tradespeople and service managers to join the team. Find out more at www.dieselelectrics.com

2008 Editions Success owed to experience and training will be inserted into Chinchilla News September 25 & December 18 Dalby Herald & Roma Western Star September 30 & December 23

Peter Sharpe started his career as an apprentice machinist at the West Australian Railway workshops. After a stint in the mines and five years working on offshore and onshore drilling rigs, he combined his knowledge of the oil and gas industry and his trade qualifications and became involved in oil and gas equipment manufacturing. In the ensuing years until 1995 Peter assumed managerial roles with overseas oilfield service companies in

Malaysia, Singapore and South America gaining invaluable experience before returning to Australia to start his own business with his wife Anne. Sharpe Engineering has experienced significant growth over the past 13 years with the company's success owing to the vast industry experience attained by Peter Sharpe and Mark Street as well as the program of continual training that has been in place since the beginning.

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Of the business' 32 employees, more than half are taking part in some form of training making Sharpe Engineering one of Roma's largest employers of full-time and schoolbased apprentices. “It is imperative to have the continuity of skilled staff, I don't think I could operate as well without apprentices,” Peter said. Peter also stated that training in itself is a full time job. “You have to have people who are dedicated to the administration of the training as well as keen employees who are willing to learn,” he said. The success of Sharpe Engineering's workplace training has been recognised through receiving the Employer of the Year Award in 2007. This is due to their consistent and positive approach to training and the excellent working relationship between the company and the local TAFE to enable the majority of the training of their apprentices to be undertaken within the local community. “More and more people are seeing the benefits of what we're doing and finding new confidence in putting apprentices and trainees on,” Peter said. “A few years ago the attitude was why put on an apprentice when after a lot of training they're just going to leave? “What people have to understand is that apprentices are going to leave to gain experience in other fields and, if you've got the right programs in place, there'll always be another upcoming apprentice to fill the gap when someone leaves.” Mr Sharpe went on to say that he is confident he has the workforce and training programs in place to develop through and beyond the current boom. “The future of the business is very bright and we anticipate this pace over the next five to six years,” he said.

THE COMPANIES

Protecting Surat Basin workforces Boosting the Surat Basin’s training field Protecting workers in the Surat Basin from toxic and explosive gases are portable gas monitors made by BW Technologies. The monitors are personal protection devices that detect the presence of poisonous gases, the modern-day version of the canary in the coal mine. The portable gas monitors are made in Canada and used all around the world. “They are for any situation where there could be dangerous gases,” said regional sales manager Jason Jones. For the past few years BW Technologies has worked with oil and gas companies and contractors in the Surat Basin. An advantage of BW Technologies was the readily available back-up service. “We have a simple to use and cost-effective

portable gas monitor,” Mr Jones said. “The distributors service on site.” BW Technologies started in Canada 20 years ago. It is now owned by US company Honeywell but still manufacturers the detectors in Canada for use in the USA, Europe and the Asia-Pacific. For 20 years, BW Technologies by Honeywell has been a Canadian-based, industry-leading producer of innovative gas detection instrumentation. BW’s success has been achieved through a commitment to providing customers with high performance, dependable products backed by exceptional customer service and support. Established in 1987, this home-grown Calgary business began with the pioneering Rig Rat, the world’s first wireless solar-powered gas detector.

Mechanic Fred Otto and school-based apprentice Bryce Dorries getting their hands dirty under a car bonnet as field officer Amanda Pacholke from The Apprenticeship Company pays a visit. With more than 600 different types of apprenticeships and traineeships available in Queensland, choices are available like never before. The Apprenticeship Company in Chinchilla currently has 82 apprentices with host employers throughout the region. In the past six months the company has employed 35 new apprentices and trainees, including school leavers and mature-age people. Field Officer Hayley Maben said her role was to increase the number of apprentices and trainees in the region through the promotion, recruitment, management and pastoral care of apprentices and trainees. Apprentices in the region are working in the areas of construction, agriculture, engineering, hospitality, automotive, business, retail and many other industries. The Apprenticeship Company does regular site visits to monitor the progression of the apprentice or trainee to allow the host employers to focus on their core business. “We have a number of apprentices and trainees that complete their qualification with the same host employer however The Apprenticeship Company has the ability to place the apprentice and trainee with other host employers to gain the required scope of work,” Miss Maben said. “School based apprenticeships and traineeships are an increasingly popular options for students who want to finish their senior studies and start learning a trade at the same time. Students can spend one or two days a week learning the trade of their choice.”

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Year 10 student at Chinchilla State High School, Bryce Dorries, is a few weeks into a mechanics apprenticeship at F and A Field Services. “It's been good. There's a lot of variety,” Bryce said. “It would be good to finish my school subjects — that way I get an OP — and I learn how to do mechanical stuff as well.” Bryce's field officer Miss Maben said the work was really hands on, not just cleaning and sweeping. Bryce had spent the day changing oil filters, fitting a tail light and putting a manifold pipe on the car. Mechanic Fred Otto said he tried to make the work interesting for his apprentice. “It's quite good to have someone one day a week. It takes a bit of time to train them but it should pay off in the long run,” Fred said. Operations manager with The Apprenticeship Company, Darren McDonell, said getting a trade apprenticeship is a great pathway to a well-paid and satisfying career. Mr McDonell said that with the boom that the Surat Basin is currently experiencing and will continue to experience in the future, there will be a labour shortage that will need to be addressed and this would open up many opportunities for companies to take on apprentices and trainees. The Apprentice Company currently has 15 vacancies and anyone interested should contact The Apprenticeship Company's Chinchilla office on 4669 1533. The company will be represented at Careers Expo around the region throughout July and August.

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PAGE 23

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PAGE 24

Contact Jay Wilms, PO Box 683, Chinchilla Ph: 07 4669 1288 Fx: 07 4669 1460 Mob: 0438 387 592 e-mail: jaywilms@bigpond.net.au www.suratbasindevelopments.com.au

• Electrician • Plumber • Chippies • Builders • Concreters • Truck Drivers • Site Supervisor

Surat Basin NEWS Thursday 19 June 2008

Surat Basin News

LINE’S FORMIDABLE TEAM Two page report on Surat rail progress

INFRASTRUCTURE www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

THE POTENTIAL: Water needs to be seen from holistic point of view

Waste water draws advisory council to the Surat Basin PAGE 28

Origin water plant opens Origin Energy is now treating enough waste water at its Spring Gully gas field to supply 60,000 people. Find out why the reverse osmosis plant is a step in the right direction. PAGE 28

Expansion at Gladstone to handle boom To cope with the Surat Basin’s booming coal seam gas industry, the State Government is considering a major expansion of Gladstone’s development area.

Great Artesian Basin Advisory Council chairman Roderick Gilmour on a tour of the Berwyndale South gas field with Queensland Gas Company commercial development manager Peter Bates.

Basin,” Mr Gilmour said. “We could also see reduced demand on the Great Artesian Basin and I think the beneficial use of this water could, in the long term, lead to the decentralisation of industry. “With water, gas and power — and relatively cheap land — I see a huge potential for industry but we desperately need to get the government and industries looking at this from a holistic view.”

“With water, gas and power — and relatively cheap land — I see a huge potential for industry...”

Safety first approach to mining in State Budget The safety and health of men and women who work in Queensland’s mines will be strengthened through a new industry safety and health levy. Mines and Energy Minister Geoff Wilson said the levy would boost the safety and health services provided by the state’s mine safety watchdog — the Mines Inspectorate. “We’ve entered a new era of mining. We’re in boom times when it’s more important than

ever to have a highly-skilled and well-resourced Mines Inspectorate,” Mr Wilson said. “The Mines Inspectorate provides vital safety and health services that help save lives and nothing is more important than that,” he said. The Inspectorate undertakes safety inspections and audits of mines and quarries around the state, investigates mine accidents, provides industry guidance and mentoring, and maintains

annual safety and health statistics from every mine and quarry. “My department also provides key research, development and training in mine safety and health,” the minister said. Mr Wilson said the Bligh Government would collect around $19.5 million from mines and quarries, explosives and industry employers and associated contractors in 2008-2009, which represents three-quarters of the $26 million annual cost of safety

Surat Basin NEWS Thursday 19 June 2008

and health services. “We’re asking for $19.5 million from an industry worth $26 billion to Queensland in 2006-2007,” he said. “Taxpayers shouldn’t have to foot the bill for these vital safety and health services. “We have the best mine safety legislation in Australia, and it must continue to be enforced from the ground up – mine by mine, employer by employer, worker by worker.”

PAGE 25

INFRASTRUCTURE

Momentum builds as coal haulage doubles and

Vital link attracts formidable team The coal to be carried along the Surat Basin Railway to the Port of Gladstone has soared to 50 million tonnes a year. That will be sourced from 16 new and existing coal mines located as far east as Oakey through to Xstrata Coal’s massive Wandoan project. The Surat Basin News looks at the progress of the rail link and how miners are progressing along the proposed railway. SURAT BASIN RAIL he Surat Basin Rail is expected to haul double the amount of coal first predicted. Early this month, Australia Transport and Energy Corridor chairman Everald Compton announced around 50 million tonnes of coal could be hauled along the line every year to the Port of Gladstone. Earlier predictions had the amount closer to 25 million tonnes a year but Mr Compton believes even the latest estimate may prove conservative. “The word is spreading that the Surat Basin Railway is unstoppable and other substantial companies have started digging holes,” he said. “We will soon find that the original estimate of reserves is a long way short of the mark.” The coal would come from 16 coal mines along the line developed by members of the railway’s private consortium, Xstrata and Anglo Coal, and a range of other companies. “They’re all doing their homework really well,” Mr Compton said of the companies’ current exploration programs. “They’re all going well, digging holes like you wouldn’t believe.”

David McDonald and David Tait from the Surat Basin Rail consultation group at a community information day held at this year’s Wandoan Show. ATEC plan to have the Surat Basin railway operational by 2012 and technical studies have gained pace as feasibility studies continue on the project’s corridor. In May, the joint venture held community information days in Theodore and Wandoan to coincide with the release of the draft terms of reference for the project’s EIS. More than 150 people attended the days. “The project team talked about access, water, resumption, fire management, construction impacts and noise with the local communities

at the information days,” a joint venture spokesperson said. “All feedback, questions, comments and concerns raised at the community information days have been recorded and will be addressed as part of our ongoing investigations. “The project team would

like to thank everyone who attended the community information days.” Community and stakeholder feedback remains open throughout all stages of the investigation. To comment, contact the project team on free call 1800 112 143 or visit www.suratbasinrail.com.au.

“The word is spreading that the Surat Basin Railway is unstoppable and other substantial companies have started digging holes.”

BORDER RAILWAY

ATEC chairman Everald Compton (right) with former Murilla Shire mayor Roderick Gilmour.

The rail line to link the nation Everald Compton is a man with a dream that everyday steams towards reality. Mr Compton is the driving force behind the inland rail, connecting Melbourne with the ports of Gladstone and Newcastle. As the Surat Basin Rail takes shape an unconditional exclusive mandate for the Border Railway - between Toowoomba and Moree - is expected by September. The mandate would fast track the development approvals on a rail line that essentially connects Toowoomba to Melbourne via an existing line from Moree. The 350 kilometre track between Moree and Toowoomba would be built by 2014 as a standard gauge, open access track at a cost of $900 million. It would also link to the Port of Newcastle. “We’re having constant meetings with departments and ministers from both governments and we’re progressing as fast as we can,” Mr Compton said. “We have a viable business case and there are no road blocks ahead - we believe the whole thing is going to happen.” The Border Railway would link with the Surat Basin Railway at a $150 million intermodal freight hub already approved at Charlton. Mr Compton believes the line through to Gladstone could become a major transport corridor for agricultural products — but only if industry plays its part. “Regions only prosper from a railway line if they put things on trains. You don’t prosper simply from having a train line,” he said. “If all agricultural industries come to a deal where they can carry products to the Port of Gladstone we would help them develop and built the right facilities. “But the extent of that is up to rural industries. If they come to us to put wheat, cotton, grain, whatever, through to the Port of Gladstone we’ll welcome them with open arms. The agricultural products would share the Surat Basin Rail with around 50 million tonnes of coal a year from 16 coal mines.

Pushing ahead but with plenty of patience NORTHERN ENERGY Northern Energy expects to announce its first resource early next month with its drilling feasibility program almost complete. The Elimatta project is situated west of Wandoan and could hold a possible 300 million tonnes of export quality coal. The company is aiming for a 100 million tonne marketable resource, which would provide for a 20-year mine at five million tonnes a year. While part of the marketable resource will be announced within a month, it will not be until at least September when Northern Energy cracks the 100 million tonne mark. But managing director Keith Barker admits regardless of the resource, the move from explorer to producer can not happen without

PAGE 26

the Surat Basin Rail and the expansion of the Wiggins Island Coal Terminal. Both projects are pencilled in for completion in 2012, a date Mr Barker said Northern Energy was working toward. “Progress is being made but, like with all these things, a lot happens in the process before you start seeing things happening in terms of pieces of steel on the ground or holes dug to mine the coal,” he said. While the State Government has provided some assistance and support to realise the vital pieces of infrastructure, Mr Barker admits the coal industry is frustrated by the lack of financial support. His comments came on the back of a massive royalties hike in the state budget. “We’re all spending money on

exploration, Surat Basin Rail is spending money on engineering and feasibility studies, and yet QR (Queensland Rail) and PCQ (Ports Corporation of Queensland) are saying if we want it to happen we’ll have to fund it,” Mr Barker said. “It means we have to come up with the money and somehow get a fragmented group of coal miners — which, let’s face it, are all competitors and are at different stages of development — to come to an agreement.” While production remains at least three years away, Northern Energy has started investigating several key needs for the project. One of those is water, and the potential use of waste water from nearby coal seam gas fields. “At the moment nothing’s finalised but we would expect to

use water sourced from coal seam gas fields, which I think is a winwin for coal seam gas producers, for us and for the community,” Mr Barker said. All of the work of the past few years has been aimed at one highly anticipated milestone for Northern Energy —

Surat Basin NEWS Thursday 19 June 2008

production. “You don’t explore simply to find things and leave them in the ground,” Mr Barker said. “We’re not a producer at the moment but we’re keen to make the transition.”

INFRASTRUCTURE

the mines climb

THE PLAYERS • • • • • • • • • • •

Xstrata Coal Anglo Coal Northern Energy Cockatoo Coal Newhope Peabody Australian Mining Holdings Waratah Coal Vale Metallica Macarthur

XSTRATA COAL

COCKATOO COAL

Spreading its wings Xstrata Coal applauds the community for assistance

Cockatoo Coal has this year taken off across the Surat Basin Cockatoo Coal is about to move into the next stage of drilling at its Guluguba tenement to secure a resource that will move the company from explorer to producer. Guluguba is one target of an exploration program that expands across the Surat Basin and has doubled in budget over the past 12 months. Recently acquired tenements across the south west have increased Cockatoo's total exploration area to more than 5000km², which has resulted in the need for a regional office in Miles. Subsequently, the company has doubled its exploration budget to $15 million for this year. While Guluguba, with a measured resource of approximately 100 million tonnes of thermal coal, is the most advanced of Cockatoo's sites, operations manager Tony Green explains exploration is spread across the Surat Basin. “Our focus is spread quite evenly across the whole region on several strategic targets,” he said. “But Guluguba is definitely our most advanced and, as a result, is seen not as an exploration target but as a resource.” Like most potential Surat Basin coal producers, a rail link to the Port of Gladstone is critical to their future plans. Mr Green said Cockatoo Coal had been actively involved in driving the rail link forward. “We haven't just been watching the

Exploration continues at Cockatoo’s Guluguba tenement. progress of the Surat Basin Rail, we've been very involved and encouraged by the progress,” he said. “The progress we've been making has been very good and we're more than happy with the strong management team both projects (Surat Basin Railway and Wiggins Island Coal Terminal) have and the support the Federal and Queensland government is giving to the building of new infrastructure. “Those projects are absolutely critical to the development of the Surat Basin projects.” While Cockatoo Coal must wait until 2012 at the earliest to begin producing from the Surat Basin — the date vital infrastructure should be completed — Mr Green admits the wait will be worth it. “We're very optimistic with our place in the Surat, which is one of our company's primary focuses,” he said. “There's a lot of potential here — a lot of untapped potential.”

Xstrata Coal Queensland (XCQ) has thanked the local community for its assistance and co-operation as studies for the proposed Wandoan Coal Project continue. Wandoan Coal Project Director Bill McKinstrey said the community’s continuing involvement with and contribution to the project was greatly appreciated. “Community involvement ensures important, local knowledge is captured and included in our technical studies,” Mr McKinstrey said. “We are committed to working with the community throughout each stage of the project and will continue to provide opportunities for information to be shared. “We believe that if a mine is eventually developed, it will bring significant benefits to the local district including new employment and business opportunities and upgraded local services.” Activity on the ground has increased in recent months with mining and haulage of coal from the site’s sample pit for quality testing, washability and combustion trials, now under way. “About 10,000 tonnes of coal has been removed from the sample pit so far and we expect to share the trial results with the community once finalised,” Mr McKinstrey said. “We are working very hard to ensure the trucking operations associated with the sample pit have minimal impact on other road users. “In response to recent community feedback, each truck is inspected and swept down prior to leaving the site to ensure loose coal doesn’t fall onto public roads. “We will continue to update the local community on our activities through our

community workshops and newsletters.” Recent workshops held in Wandoan, Taroom and Miles were attended by about 250 people, providing the opportunity for the community to comment on the proposed mine plan and infrastructure, environmental studies and non-indigenous cultural heritage. “The workshops provided our team with some great feedback from local residents and will be carried forward into our studies.” Planning is under way for a community open day at the Project’s sample pit site in the near future. The day will provide an insight into the removal of coal from the sample pit, and an understanding of the site’s safety and environmental management protocols. Details will be announced in local papers in coming weeks.

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Surat Basin NEWS Thursday 19 June 2008

PAGE 27

INFRASTRUCTURE

Surat gas boom drives Gladstone expansion

Origin opens first for industry Award winning plant treats nine megalitres a day — enough water for 50,000 people n a major boost to water conservation in the coal seam gas industry, Origin last month officially opened a new $20 million reverse osmosis (RO) water treatment plant at Spring Gully in central Queensland that will desalinate nine million litres per day — the equivalent daily use of 50,000 people. The award winning water treatment plant — located in Origin's coal seam gas fields north of Roma — is Australia's first fully integrated coal seam gas (CSG) water treatment facility. Marking the plant's official opening Origin's chief operating officer, Ms Karen Moses said the plant would continue Origin's industry leadership in coal seam gas and sustainability initiatives. “Origin is already a leader in sustainable energy projects, ranging from our investments in gas-fired power stations and wind turbines, to our strong support for renewable energy, demonstrated by having

The reverse osmosis plant at Origin’s Spring Gully gas field near Roma. more than 360,000 customers subscribing to our green energy products” Ms Moses said. “Investments such as at Spring Gully will turn what was seen as waste water destined for an evaporation pond into a new water resource.” “The fresh water being produced is now supplementing the local Eurombah Creek flow and has helped attract and support local fauna. “The opportunity now before us is to see what other options are available including using the water for irrigation for agriculture or reforestation, industrial use, supplementing town water supplies or more innovative solutions such as biofuel

projects. “Origin has invested more than $500 million over the past five years at Spring Gully to develop Australia's largest supply of coal seam gas. Our pioneering work can only help further support the coal seam gas sector's advance and its green credentials.” The Spring Gully reverse osmosis plant was last month awarded the Australian Petroleum Production and Exploration Association (APPEA) Environment Award for its contribution to the industry's environmentally sustainable practice. In 2007 Origin was awarded the Ethical Investor Sustainability Company of the Year Award.

The State Government is examining extending the Gladstone State Development Area to take advantage of Queensland’s vast coal seam gas reserves. Deputy Premier and Minister for Infrastructure and Planning Paul Lucas said Curtis Island had been identified as a suitable location for potential large-scale LNG processing facilities. “With companies already lining up for gas projects, Queensland has the chance to become a major exporter thanks to untapped coal seam reserves in the Surat and Bowen basins,” said Mr Lucas. “The Bligh Government is committed to planning for the future of this potential industry, that could inject billions of dollars into Queensland’s economy. “To that end, the CoordinatorGeneral will seek public submissions from Monday, May 26 2008 on a possible extension of the existing Gladstone State Development Area to Kangaroo Island and the southern area of Curtis Island below Graham Creek. “The Coordinator-General’s proposal would add another 6420 hectares to Gladstone’s existing 22,000 hectare SDA. “The extension is being considered to secure land for potential LNG projects, or other industry, plus buffer zones and management areas. “This area’s proximity to sheltered, deep water berths and large safety and security zones for carrier ships makes it ideal for LNG processing facilities. “Having said that, any such plant would have to undergo strict environmental assessments to gain approval in the future.” Already five major groups are investigating the feasibility of establishing processing plants in Gladstone: Santos, LNG Limited/ Arrow, Sunshine Gas/Sojitz Corporation of Japan, LNG Impel and BG/Queensland Gas Company. These add up to over $17 billion worth of planned capital investment and around 3000 construction jobs. “Those projects have potential

SOLD

SOLD SOLD

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long-term economic benefits of more than $15 billion and about 600 permanent jobs, however we must weigh those advantages against environmental concerns, future domestic energy requirements, and processing needs. “The State Government will consider these matters in the coming months.” The $7 billion Santos project has already been declared a significant project so that an environmental impact statement (EIS) can be conducted. It is expected that BG/ Queensland Gas Company will soon seek a significant project declaration for an estimated $8 billion project. Only a fraction of Queensland’s vast recoverable reserves of coal seam gas, estimated at about 16,000 petajoules (PJ), have so far been commercialised, although production is growing. “Less than a decade ago, Queensland produced only four petajoules of coal seam gas a year. By last financial year, production had increased 20-fold, to 86 petajoules,” said Mr Lucas “This growth is expected to continue, driven by increased electricity demand, rising oil prices, a desire by countries to reduce their reliance on the Middle East as a source of energy, and the ‘cleanliness’ of coal seam gas compared with other fossil fuels.” Domestic energy policies have already helped Queensland’s CSG suppliers expand. With a gas-fired power station emitting half the greenhouse gases of a coal-fired equivalent, the State Government has committed to further use of the cleaner energy. This week a Clean Energy Bill was passed that will fast-track Queensland’s mandatory gas-fired electricity generation from 13 percent to 15 percent by 2010, and 18 percent by 2020. Further information on this proposed extension to the SDA can be found at www.dip.qld.gov.au. Public submissions can be lodged until June 20.

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Surat Basin NEWS Thursday 19 June 2008

Surat Basin News

@ WORK ON THE SURAT

ANOTHER ROUND OF ASSISTANCE: Origin’s 2008

Featured on pages 31-33

scholarship program

THE PEOPLE

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

PAGE 31

Faces at work on the Surat We talk to some of the identities who are shaping the Surat Basin’s prosperity — from a power station manager to a geologist, apprentice and well services superintendent. PAGE 34

Roma tourism to light up again On September 6, Roma will celebrate the Great Fire of 1908, the event that sparked not only the resource boom, but also tourism in the town.

again this year had been quite strong and believes this is because of the opportunity exhibitors have to showcase and attract optimum interest to their particular industry. “Practical skills demonstrations and talks will be delivered again by people from numerous industries such as construction, automotive, health, age care, hospitality, manufacturing, information technology and business banking,” said Ms Suhr. One of the many exhibitors who will be providing students with a unique workshop is blacksmith Evan Horne. He will conduct a ‘Trade Ability Activity' that helps students to explore their capability at applying themselves to the blacksmith trade. “Evan's workshops give students the opportunity to create and make various metal objects such as horse shoes. This activity really tests a number of capabilities such as the individual's hand eye co-ordination and their technique over strength,” Ms Suhr said. Renowned comedian and guest speaker Mark Gladman will also open the Careers Expo

“Practical skills demonstrations and talks will be delivered again by people from numerous industries such as construction, automotive, health, age care, hospitality, manufacturing, information technology and business banking.”

Western Downs Career Expo Committee Member, and Transition Officer for Goondiwindi Training and Technology, Angela Suhr is bringing careers to the region’s students. this year with a humourous but powerful presentation on leadership, communication and values that will uplift and inspire the students. “We have been really fortunate to have secured Mark for this year's expo and we are sure that the students will very much enjoy his presentation,” Ms Suhr said. In the lead up to the Careers Expo students complete various activities and exercises to help them research and identify different career options they might be interested in and suited to. “Students were recently invited to participate in a photo competition where they had to submit entries featuring a job they found an interest in and were asked to provide five facts about that particular career,” Ms Suhr said. “As well as this, students also complete various exercises before attending the expo to

Surat Basin NEWS Thursday 19 June 2008

help them identify things such as what personality type they are and what traits are best suited to different careers.” If your organisation would like to exhibit or find out any more information regarding the 2008 Western Downs Careers Expo please contact Angela Suhr on 4671 2258 or email angela@gttc.com.au. The Careers Expo is organised as part of the Local Community Partnerships program that Ms Suhr from Goondiwindi Training and Technology delivers on behalf of the Australian Government to assist young people from ages 13 to 19 to achieve a successful transition through school to further education, training and employment. Through this program GTT offers assistance to schools in Goondiwindi, Millmerran, Inglewood, Tara, Chinchilla, Miles, Wandoan, Taroom and Yarraman.

PAGE 29

THE PEOPLE

2008 SKILLS SCHOLARSHIP RECIPIENTS

2008 COMMUNITY SKILLS SCHOLARSHIPS

Origin Energy Timothy Fox (Chinchilla) To undertake a carpentry/building apprenticeship with John Johnson Quality Builders Ross Batkines (Surat) To undertake a fitter and turner, boiler making and diesel fitting apprenticeship with Sharpe Engineering

Origin’s helping hand to the region’s future The Origin Energy Community Skills Scholarship is designed to help young people chase their dream careers.

Mark Lee (Roma) To undertake a fitter and turner apprenticeship with Rayham Engineering Pty Ltd Gregory Campbell (Dalby) To undertake an automotive electrical technologies apprenticeship with Diesel Electrics

William Slee (Dalby) To undertake a lock smithing apprenticeship with Lockfast

Neil Moy (Jandowae) To undertake a plumbing apprenticeship with Pitts Plumbing Naomi Bowman (Dalby) To undertake a hairdressing apprenticeship with Hair at Dalby

Justin Walters (Roma) To undertake a fabrication/boiler making apprenticeship with Fiedler Engineering.

PAGE 30

2008 scholarship recipients (back row) Naomi Bowman, Mark Lee, Neil Moy, Tim Fox, Origin Energy Darling Downs Power Station manager John Stewart, recipients Justin Walters, Ross Batkines, William Slee and Greg Campbell at the recent program launch with (front centre) Origin’s community liaison supervisor Meryl Eddie and Queensland stakeholders relation manager Martin McVicar. Mark Lee wants to be a successful fitter and turner. Timothy Fox has a burning ambition to be a carpenter. And Naomi Bowman wants to work as a hairdresser. All three Western

Darling Downs residents are receiving financial help to kick start their career ambitions through the Origin Community Skills Scholarship program — a partnership between inte-

grated energy company Origin and local business. Mark, Timothy and Naomi are three of eight local apprentices to be awarded a 2008 scholarship (full list below). Origin has committed up to $13,500 per recipient to help apprentices in the South West and Western Darling Downs regions get started in a trade. The funding is paid in instalments to match the completion of course competencies and can be used to purchase items like textbooks, tools and uniforms. The program also matches apprentices with local mentors to help guide them through their life and career decisions. Origin's Queensland stakeholder relations manager Martin McVicar said the scholarship program formed part of Origin's commitment to the local community. “Origin's Skills Scholarships are designed to support the local community's capacity to build and retain skills across all areas of business — not just for the oil and gas industry in which Origin operates,” Mr

Surat Basin NEWS Thursday 19 June 2008

“Origin's skills scholarships are designed to support the local community's capacity to build and retain skills across all areas of business...” McVicar said. He said the Skills Scholarship program made it more affordable for young people to get started in a trade. “Starting out can be a difficult time financially for apprentices, particularly because they are only earning a percentage of a tradesman's wage,” Mr McVicar said. “Most of the apprentices are now into their second year of study and progressing well. “The support from local businesses has been a very important factor in this success and I thank them for their ongoing contribution.”

From the plains of Africa to the heart of Indonesia, Norm Nixon has found a company and location that appeals. Norm Nixon likes a lot about his job but it’s the way his feet are firmly planted that he finds most appealing. Mr Nixon is Queensland Gas Company’s well services superintendent based at Berwyndale South but working on several gas fields across the Surat Basin. He has spent the last 20 years as a consultant on drill rigs sites in Egypt, Mozambique, Papua New Guinea and Indonesia. But since August last year, Mr Nixon has worked no more than 20

Queensland Gas Company

Feet firmly planted on the Surat

Queensland Gas Company well services superintendent Norm Nixon.

minutes from his family home in Chinchilla. “For me, going home every night’s good for me especially after spending 20 years of going away and coming back,” he said. As a well services superintendent, Mr Nixon overlooks the three workover rigs contracted out by QGC. A workover, or completion rig, is used to complete, repair or swub existing gas wells. While Mr Nixon spends a lot of time monitoring work practices, safe-

ty is number one on his agenda. “I make sure what ever they’re doing, they’re doing it in a safe manner,” Mr Nixon said. “Safety is very high priority especially on workover rigs where there can be an especially high ration of incidents. “But I also make sure they’re putting the right equipment in the hole we want them to put in the hole.” Mr Nixon has faith in QGC which is mirrored by the faith the company has shown in him.

“I like the freedom of my role and the company’s very good to work for - they’ve been very supportive,” he said. “They’re heading in the right direction and I like the direction they’re heading.”

Austrian Energy & Environment

Construction team takes top priority Geoff Hodson returned to Perth this month to see the opening of a nickel plant he helped build. The trip was a rare chance to take time away from one of the Surat Basin’s newest energy generation projects. Mr Hodson is Austrian Energy and Environment’s site manager for Queensland Gas Company’s Condamine Power Station. The construction company was selected to build the 140 megawatt coal seam gas fired plant in late 2007. Situated 8km east of Miles, the first stage of the power plant is scheduled for completion in February 2009. Under the Engineer, Procue, Construct contract, Austrian Energy and Environment will be responsible for the construction site from start to the end of commissioning. As a site manager, Mr Hodson has been onsite from day one until the power station starts generating electricity later next year. “We run this site and my role as site manager is to run this site,” Mr Hodson said. “My main role is the site as a whole with my managers under me to look after individual sections.” With 40 people on site at the moment and an expected peak of up to 120, Mr Hodson’s

greatest challenge is retaining a team focus. “In my experience to have a good team that works together means success,” he said. “If you can maintain that team focus than it will be successful. “We’re always going to have problems - we’re going to have technical problems, design issues, we’re going to have construction issues, commissioning issues - but they should be dealt with as a team. “It’s a team problem, how do we get around it?” While based in Perth, Mr Hodson’s role with Austrian Energy and Environment has taken him around the world. Since he entered the industry 38 years ago, he has noticed some major changes — a diminished reliance on coal and improved technology. But it is safety on construction sites that has undergone the greatest makeover. “From when I first started to now, the focus on how you go about maintaining a safety regime has changed enormously,” Mr Hodson said. “The culture of the workforce has changed too to where they just expect when they go on to a job they are handed a hard hat, a set of glasses, boots and clothing. “They expect that — it’s just the norm now.”

Surat Basin NEWS Thursday 19 June 2008

PAGE 31

Counting terajoules as industry powers ahead

PAGE 32

admin@descalingdrilling.com.au

DES CALING DRILLING

Queensland Gas Company pumps out 83 terajoules of coal seam gas a day to power stations and manufacturers across the state. More than two million cubic metres of gas comes out of the ground, through compressors and down the Roma-to-Brisbane pipeline. Former Dulacca local Aderian Nixon must account for every cubic millimetre. Aderian is Queensland Gas Company’s production superintendent and, from his office at Berwyndale South, ensures wells are flowing and gas is reaching compressor stations. He grew up in Dulacca and went to high school in Miles before completing an engineering degree at the University of Southern Queensland in Toowoomba. From his first job as a graduate engineer at Injune, Aderian’s working life has been entrenched in

“That helped and from there it’s been like a snowball. It’s got bigger and bigger as it’s built up steam running downhill.” the coal seam gas industry. And it is an industry that has swept along around him. “It’s grown dramatically,” Aderian said. “The biggest thing that did that was the government saying we must use natural gas for power. “They created a market whereas before it was a struggle to get into the market. “That helped and from there it’s been like a snowball. “It’s got bigger and bigger as it’s built up steam running downhill.” Aderian has been with QGC for the past three years and witnessed the

first gas sales from the company’s watershed gas field, Berwyndale South. The growth of the industry has been shadowed by Aderian’s employer and the gas field he works from. “The growth at Berwyndale has been tremendous,” Aderian said, explaining four years ago the gas field was made up of only four wells and no infrastructure. Aderian believes his time with QGC will be for the long term and its a commitment he is looking forward to fulfilling. “It’s been good, exciting and full of challenges — it’s fairly rewarding company,” he said.

Queensland Gas Company Aderian Nixon is Queensland Gas Company’s production superintendent based at Berwyndale South but keeping an eye on operations across the Surat Basin.

With 2 production rigs capable of drilling to a depth of 1500m, along with a core drilling rig and a top hole drilling rig, we can provide career paths and great jobs for the right people.

Our People are our Power For employment enquiries contact our office Email: admin@descalingdrilling.com.au

Surat Basin NEWS Thursday 19 June 2008

Making the switch from coal to gas Origin Energy’s Martin McVicar congratulates Mounts Machinery’s Jake Simpson after he completed his first year under the Community Skills Scholarship program.

Experience with a helping hand The latest round of Origin skill scholarship recipients were provided with a glimpse of what to expect in coming years at the 2008 program launch last month. Jake Simpson, a 2007 recipient, started a school-based traineeship in 2006 and became aware of the skills program through his high school. He is completing his apprenticeship at Mounts Machinery in Roma and spoke at the program launch held in Miles. “I have gained many life experiences and a great deal of ever expanding knowledge,” he said of his time as an apprentice. Jake admitted the financial implications of an apprenticeship can at times be daunting but a program like Origin’s had lifted some of the burden. He used the financial assistance to purchase everyday tools, the more expensive diagnostic tools and to cover his TAFE fees. “So far I have really enjoyed my time as an apprentice,” Jake said. “Okay, the money isn’t great but having the opportunity to learn like this is something you have to make the most of. “And the money side of things has of course been made easier by the scholarship.” But it was not just the money that had made Jake’s apprenticeship easier. He said the mentoring component had also helped through a challenging first year. “The mentoring side has come in handy because it gives you a neutral person you can talk to and ask questions on pretty much any topic whether its work related, home related or just someone to have a general chat to,” he said.

Power station manager follows the latest industry trend ike the industry he has worked in for more than 30 years, Steve Carter has recently made the switch from coal to gas. Mr Carter was last month appointed as manager of Queensland Gas Company’s Condamine Power Station. He will oversee the operations of the plant and ensure it is generating the 140 megawatts it was designed to by completion in February next year. Mr Carter, who previously worked as production manager on the Kogan Creek Power Station, admits he sees a bright future in power stations like Condamine. He has the same faith in his new employer and the coal seam gas industry in general. “I know gas fired power plants are the way to go — it’s cleaner energy,” Mr Carter said. “So when the opportunity came up I thought this is it,

Queensland Gas Company Steve Carter has started recruiting and setting procedures in place at the Condamine Power Station, a 140MW gas-fired power station he will manage. especially with Queensland Gas Company and coal seam methane. “It’s a very bright, very dynamic company with a very bright future and this (gas fired generation) is the way it’s all going to go.” While the power station is eight months from completion, Mr Carter still has plenty to do before electricity begins to flow. He must recruit a team of 14 to run the power station and there is a focus on employing locally where possible. Mr Carter will also use his experience from seven previous greenfield power station

sites to place his team on the front foot once construction winds down. “We’ll be setting up all the procedures and systems associated with that,” he said. “It’s a greenfield site and it’s a clean sheet of paper especially with QGC because its their first power station.

“So we want to get it right for QGC.” Mr Carter believes power stations like Condamine will set a benchmark for power generation in Australia. Like the change he made a month ago, Mr Carter can see much of the power generation industry following suit. “Kogan Creek was one of the last, if not the last, coal fired power stations to be built,” he said. “This is proven technology even though it’s new here. “It’s clean already. It’s about the greenhouse gas emission of a coal fired power station. “It’s the way of the future.”

Paving the way for innovation Dave Carroll is 23 years of age but his job revolves around a resource millions of years in the making. He is a geologist based at Linc Energy's Chinchilla site who is helping the company expand on its ever growing resource. When Linc Energy recently announced it had broken the 400 million tonnes of coal mark, Mr Carroll was in part responsible. He also helped pave the way to the company lodging the mining lease for its 20,000 barrel-a-day commercial plant, which the State Government is currently reviewing. With Linc Energy's innovative and world-first plans to turn that coal into ultra-clean diesel and aviation fuel, Mr Carroll could not be happier with his move from Brisbane.

Linc Energy Linc Energy geologist Dave Carroll is helping the company expand its resource base. Two years into a career in geology, he is helping Australia's leading clean coal technology company reinvigorate the world's energy markets. “I love it,” Mr Carroll said.

Surat Basin NEWS Thursday 19 June 2008

“I've got the opportunity to get out in the bush and help a company like Linc Energy find more coal. “And the more coal I help find the more they can do with it.”

PAGE 33

THE PEOPLE

Roma: from an industry birthplace to a cradle Roma Regional Mayor Robert Loughlan does not want Roma to be remembered as just the birthplace of oil and gas. The former Bungil Shire mayor took office on the new regional council at the March local government elections. Cr Loughlan believes through effective planning Roma regional could become the “cradle” of an expanding coal seam gas industry. “We must make sure we can take advantage of the resource boom and not just be remembered as the birthplace of oil and gas in Queensland,” Cr Loughlan said. “We need to have the structures and planning processes in place so businesses can come in and set up quickly. “They need to be able to do it cost effectively and easily or Roma and the surrounding districts will lose out to Dalby, Chinchilla and Miles, who are aiming for the same thing. “Essentially, we'd like Roma to not only necessarily be the birthplace of oil and gas but the cradle of the coal seam gas industry.” Last financial year, Roma Town Council's development approvals skyrocketed from $7 million to $35 million on the back of the coal seam gas boom. But Cr Loughlan believes more must be done to make Roma regional “more business friendly” and to accommodate for new industry. “At the moment the current

Roma Regional Mayor Robert Loughlan believes his region can deal better with the resource boom. demand is outstripping what we have available and, as a result, we're seeing industry and business set up in residential and rural areas,” he said. “That has got to stop and we must free up more land. “A major budget item this year will be to review our planning scheme to allow us to cater for the projects and the growth.” Roma Regional Council was formed with the merger of five councils and includes the major centres of Mitchell, Surat and Roma. It is home to some of Australia's largest and most established coal seam companies, including Santos and Origin Energy.

The year Roma tourism lit up

While Cr Loughlan is aware of the need to provide a point of difference to communities in the neighbouring Dalby Regional Council, he can also see the benefits of cross-council co-ordination. That council is at the heart of the Surat Basin while Roma regional crosses over into the Surat and Bowen basins. He believes a “dynamic” partnership between councils could provide a “holistic approach” to dealing with issues of resource development. The town of Roma is a hub for industries servicing the gas fields of the region and Cr Loughlan said he was confident the new regional government would better cope with the challenges. “Before, representing one or two towns and in my case only 2000 people, you couldn't get far with the government or the companies,” he said. “It (regional government) gives us a bit more clout and the opportunity to deal holistically and to cope with the rigours of gas and oil expansion,” he said. But whatever Roma Regional Council must do to deal with growth and new industry, Cr Loughlan believes it has to be balanced and sustainable. “We don't want to over cater and be left with something to maintain that's only catering for half the demand it's meant to,” he said. “It's hard to have a crystal ball but we're going to have a fair stab at it.”

Roma Regional Council manager of tourism development, Perry Bacon, at the Big Rig, which will host September’s Food and Fire Festival.

nly three months into his appointment, Roma Regional Council’s Perry Bacon has a ‘high pressure’ task ahead of him. The manager of council’s tourism development unit will spearhead the Food and Fire Festival, a celebration of the 100-year anniversary since the discovery of gas in Roma. Multicultural dining and entertainment, an art show and resource-themed events will mark 100 years since disaster provided a precursor to a century of prosperity for the town. Referred to as the Great Fire of 1908, a crew drilling for oil struck gas that ignited and burnt for 45 days. It took a local engineer to invent a large, cast iron device to extinguish the fire. Not only was the discovery of gas the beginning of a new industry for Roma, it was also the start of tourism. “The event made national headlines — people came from Brisbane and interstate,” Mr Bacon said. The attraction was that great Queensland Rail put on special trains to handle the demand. Mr Bacon hopes the Food and Fire Festival, which is being held on September 6, will demand as much attention from locals and visitors. “It was a fairly significant moment in Roma’s history and we want the festival to be a sig-

PAGE 34

Surat Basin NEWS Thursday 19 June 2008

nificant regional event,” he said. “It’s only a one off event so we want to go all out.” While the festival will focus on many parts of Roma including the historical Hospital Hill, the site of the gas discovery, the day will centre on the Big Rig parklands. Mr Bacon believes its only right the Big Rig hosts the main events of the festival. “The Big Rig is the number one attraction in Roma and is such a significant draw card for a number of reasons,” he said. “I think a lot of people are genuinely interested in resources like oil and gas. “I also believe the Big Rig offers not only entertainment but also education, which means people can become more engaged and be more likely to return.” The State Government has thrown its support behind the festival with $10,000 from a community funding program. Mr Bacon was tourism development officer with Chinchilla Shire Council before his newest appointment three months ago. While new to the area he has already been swept away by the tourism potential of the region. “It’s huge because there are so many good tourism products that probably just need to be packaged better,” he said. “Roma is at the centre of this fantastic, diverse region and we want to incorporate all the attractions into one package for tourists to enjoy.”

THE PEOPLE

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Skills scholarship mentor Judy Kelly socialises with Maria and Mark Walters, and their son Justin who received one of the latest Origin Energy scholarships.

Servicing Chinchilla, the Western Downs and surrounding areas

ANY THING – ANY TIME ANY WHERE Laurie and Diane Fitzgerald from Westland Engineering, Roma, Origin community liaison supervisor Meryl Eddie (second from right) and Robyn and Baden Waldron from Mounts Machinery, Roma, at the launch of Origin’s second Community Skills Scholarship program.

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Chinchilla’s Kaye Maguire, Kelly Wenning, Dalby Regional Cr Andrew Smith, Anthony Wenning and Stephen Dore at last month’s launch of Origin Energy’s second Community Skills Scholarship program.

“We Give Everyone a Lift”

07 4668 9755 or 0428 689 755 chincranehire@bigpond.com Origin Energy operations superintendent Peter Parker catches up with a recipient of a 2007 skills scholarship, Robert Webb and his wife Wendy.

Photos taken at the launch of Origin Energy’s Community Skills Scholarship program held at the Creek Cafe in Miles last month.

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THE PEOPLE

Origin employees put their bodies to a pit stop check Origin Energy employees recently hit their brakes and took a pit stop with the help of Queensland Health for a complete service.

Roma Primary Health Care’s Rodney Landers checks Mark Fleming’s ‘oil’ pressure at the Pit Stop.

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information available on sexual health and sexual violence. Participants were rewarded with a barbecue lunch featuring healthy food choices, including plenty of fruit and vegetables. Roma’s healthy lifestyles program coordinator Kathy Morrow said: “At our workplace pit stop sessions, the service is immediate and there’s no waiting rooms or

Queensland Health has challenged 90 employees at Origin’s oil exploration and production operations to tune their bodies for the same optimum performance they expect from the engines they operate in the Surat Basin. Seventy-nine men and 11 women from the company’s Spring Gully, Kincora and Roma operations have attended Roma Primary Health Care’s Pit Stop mobile health screening activities to put their bodies through a ‘roadworthy’ check. At various pit stop stations, they had checks of their oil pressure (blood pressure) to ensure they don’t blow a gasket; their chassis (hip to waist ratio) to remove bulges in the panels; and their torsion (flexibility and back care). Origin staff were also advised to regularly check their shock absorbers (mental health), spark plugs (testicles/prostate/bowel/breasts) and for rust on their duco (skin cancer). Queensland Health staff also helped them review their fuel additives (alcohol intake) and urged them to reduce their exhaust emissions (by quitting smoking), all with the aid of questionnaires, quizzes, brochures and information sheets. There were also group information sessions on healthy eating and serving sizes, and

Surat Basin NEWS Thursday 19 June 2008

appointments needed, so there’s no excuse that the men are ‘too busy’, ‘not sick enough’ or ‘not wanting to waste anyone’s time’. “We present the health issue, do the test and explain the solution; challenging participants to see if their body will pass the pits with flying colours or be issued a yellow sticker for follow-up maintenance.”