SBN Dec 2012

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Surat BasinNEWS THURSDAY 20 DECEMBER 2012

28 PAGES $1.10 inc GST

Merry Christmas and a Happy New Year

inside Still missing the link Page 4 Airport approved Page 5

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SBNEWS The Team David Richardson General Manager Laurell Ison Media Sales Manager Beth Walker Graphic Design Jillian Poulsen Editor The Surat Basin News will publish every month 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 20,000 living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region. Plans are to make the newspaper more frequent as the development increases. 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. With the Surat Basin region receiving national attention, Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them. View our previous editions on www.issuu.com/suratbasinnews Regular updates on

inside this edition in theNews

pages 4-9

Doubt surrounding Surat Basin Rail intensifies. Details Page 4. Gas companies and contractors come to the rescue during local bushfires on Page 5. The fugitive emissions debate. Find out what it is all about on Page 6.

"The RSPT (Resource Super Profits Tax) has created significant uncertainty for the future of mining investment into Australia and would impair the value of previously approved projects and exploration to the point that continued investment can no longer be justified," Xstrata Plc chief executive Mick Davis said after Xstrata announced earlier this month suspending $586 million of expenditure.

down tobusiness

pages 14-17 QRC releases data on teh resource sectors contribution to Queensland’s economy. Details Page 14. Newman Government has released a compliance plan to regulate the Coal Seam Gas industry over the next year. Read more on Page 15.

building theBasin

Placesandfaces

pages 18-23 pages 24-28 Origin opens new camp at Condabri. Details on Page 18. Santos committs to helping Roma’s housing shortage. Find out how on Page 19. Surat Basin Property Group CEO Jason Van Hooft’s column. Page 19.

November’s Face to Face with Scott Bird on Page 28. Out and about at the TSBE’s networking function in Toowoomba. Find out if you were snapped on Page 21. Origin great start new challenge in the Surat Basin. Details Page 28.

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Ray White Rural Chinchilla ..........................21 Rocla ....................................................................9 Skyreach ............................................................17 SMK Consultants ............................................12 Speciality Services QLD ................................23 Stonestreets Coaches ....................................22 Surat Basin Expo..............................................16 Tilly's Crawler Parts ......................................11 Toowoomba Truck Spares................................5 Trades and Services ..............................26 & 27 Tresed Liquid Waste ......................................23 Wild Desert......................................................20

www.suratbasin.com.au

Surat Basin NEWS

Published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street Chinchilla Q4413, Printed by APN Print Toowoomba, 50 Industrial Avenue Toowoomba Q4350 (2012) General Manager - David Richardson, 12 Mayne Street Chinchilla Q4413, PO Box 138 Chinchilla Q4413

Our unique position within the major centres of the Surat Basin allows this newspaper to supply relevant and required information to our local communities. This newspapers is staffed and driven by passionate locals who have an investment not only in their communities but also the people that reside in them. To gain a foothold in the Surat Basin talk to the people who will work as hard for your business as you do.

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Phone Laurell 07 4662 7368 and start building your business www.issuu.com/suratbasinnews PAGE 2

Surat Basin NEWS Thursday 20 DECEMBER 2012


this WEEK

Late reporting of five minor oil spills in the Great Barrier Reef costs Santos nearly $20,000 in fines

Santos caught out he company behind one of the Surat Basin's biggest gas projects, Santos Gladstone LNG, was fined nearly $20,000 for the late reporting of oil spills and other breaches of environmental approval conditions in the Great Barrier Reef World Heritage Area last year. The fines totalled $19,800 and were related to the company's late reporting of five minor oil spills and two increases in turbidity levels near the Curtis Island site in the World Heritage Area (WHA). The first public references to the fines were released in a departmental report tabled in parliament in late October this year. A Santos spokesman confirmed the spills were of no more than 40 litres of biodegradable hydraulic vegetable oil, and all spills occurred between March 21 and

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September 17 last year. The delay between the first spill and the actual reporting of the spill was about eight months, with all five oil spills reported on November 29, last year. That was despite Commonwealth environmental conditions on the Santos GLNG project demanding the proponent report any such breaches to the federal environment department within five business days of the breach occurring. A departmental spokeswoman confirmed the three infringement notices also related to the late reporting of two increases in turbidity levels in the WHA during the same period. She said the two increases in turbidity levels resulted from "inadequate sediment and erosion controls following significant rainfall events" at the Santos GLNG project. "The conditions associated with infrastructure development at Curtis

Island allow for the close monitoring of incidents that may adversely impact upon the Great Barrier Reef World Heritage Area," she said. "These conditions were put in place to allow the timely and thorough appraisal of any potential impacts." She said the department believed the five oil spills had not resulted in any adverse impacts on the reef WHA, and the fines should not be taken as an admission of liability for contraventions of national environmental law. A spokesman for Santos said the company had stringent reporting requirements required by the state government, Gladstone Ports Corporation, Marine Safety Queensland and the Federal Government. He said that while the company had reported "every incident" within the required timeframe to the state

government, GPC and MSQ; the reporting to the Commonwealth agency was late. The company spokesman said the company undertook an "internal reporting change in November 2011", and since then, no reporting timeframe had been missed, and all reports were made in accordance with federal environmental approval requirements. He said the company took its environmental responsibilities seriously, and the fines related to a "technical breach of a state government-imposed condition", despite the fines being imposed by the federal government in relation to its approval conditions. The three fines, of $6,600, were each the maximum individual amount the department can fine a company for breaches of approval conditions under the Environment Protection and Biodiversity Conservation Act.

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Surat Basin NEWS Thursday 20 DECEMBER 2012

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in the page 5 page 6 page 7 Wellcamp Airport approved

Fugitive emissions

Acland’s draft terms

In limbo Landowners are being left in limbo as doubts and delays emerge for the Surat Basin Rail project. The consortium behind the project, SBR Joint Venture, told the state government that global market conditions and delays in the coal chain projects meant it could not meet the government's requirements. The requirements included providing a security to the government for the Coordinator General to proceed with land acquisition for the rail corridor. Deputy Premier Jeff Seeney said he was concerned about the uncertainty for landholders who would be affected by the building of the rail line, running from Wandoan to Gladstone.

Project in doubt XSTRATA has conceded its $7 billion Wandoan Coal project could be in doubt. It follows Xstrata's $90 billion merger with Swiss mining giant Glencore International finalised this month. The revelations on the massive development came from Xstrata rail and port general manager Dierdre Mikkelson who spoke at a major projects conference in Brisbane earlier this month. Ms Mikkelson said Xstrata expected the State Government to approve its mining lease early next year but its future rested on market conditions and its ability to score funding. "The Wandoan coal project is yet to receive final investment decision," Ms Mikkelson said. During a panel discussion with representatives from Cockatoo Coal, Surat Basin Rail and the State Government, Ms Mikkelson was asked if Xstrata's merger with Glencore was the cause of the uncertainty. Ms Mikkelson said she felt it inappropriate to comment on what effect, if any, the merger would have on the Wandoan project. If given the go-ahead,Wandoan would take four years to build and employ between 700 and 800 permanent workers once complete. The Wandoan project is a vital cog in justifying the need for a large scale rail line and train set that would funnel Surat Basin coal through Wiggins Island.

"The SBR Joint Venture has advised the government that due to delays in the coal chain projects and global market conditions it could not meet the State's requirements," Mr Seeney said. "Subsequently the Notices of Intention to Resume issued to affected landholders are now discontinued. “While they could be re-issued the government is loath to do so until the situation is clearer. "I'm very aware of the impact this project has had over a long period of time." The state government is now in discussions with the SBR Joint Venture about the future of the project. Mr Seeney said the govern and the SBR Joint Venture were now in discussions about the immediate next steps to the project. He said he was concerned about the impact the uncertainty was having on landowners. "I'm very aware of the impact this project has had over a long period of time,” he said. "Apart from the costs there has been considerable disruption to people's lives and businesses. "While this disruption is regrettable, it is important that projects such as this…are

afforded a reasonable opportunity to proceed. " "Landowners have a right under the Acquisition of Land Act 1967 to seek compensation for costs and expenses in relation to the discontinued Notices of Intention to Resume. "I encourage landowners to submit claims for this compensation.To that end a letter from the Coordinator General will soon be with landowners outlining how to make a claim and what is covered under the legislation. The Surat Basin Rail Joint Centure said negotiations would continue on the project, despite telling the state government it would not meet the current requirements. The consortium did not respond to a

question from the Herald about the fairness of leaving affected landholders in limbo, but SBR Chief Operating Officer Allan Miller stating he was "fully committed" to the rail venture. "The Surat Basin Rail Joint Venture, the Deputy Premier and the Department of State Development, Infrastructure and Planning have been working together and negotiations are continuing to ensure the 204km open-access, multi-use railway… is delivered. "The Surat Basin Rail Joint Venture remains fully committed to the project and to the landowners in the corridor. "We will continue to work with the State Government to reach the agreements necessary to enable this vital project to proceed.

Santos sets sights on expansion Santos GLNG, has applied for a huge expansion in central and southern Queensland, with options to sink as many as 6100 new coal seam gas wells. The project has been on the company's books for most of the year and was approved early this month for environmental assessment under state laws by Environment Minister Tony Burke. In its application to the Commonwealth Environment Department, Santos wrote it planned to expand its current 7000sqkm CSG operation to an 11,000sqkm operation. Documents filed with the government reveal the company applied for approvals to sink 6100 CSG wells across southern and central Queensland, on top of the project's 2000-odd existing wells. In addition to the wells, PAGE 4 Surat Basin NEWS Thursday 20 DECEMBER 2012

the proposal would need new gas and water pipelines, construction of new water and gas treatment plants, roads, sewerage, pits and quarries, to help service the massive project. Documents also revealed the project would involve numerous accommodation camps to be built across the 35 petroleum tenements to hold a workforce of around 1700 during construction, and about 200 in operation. The project area encompasses the Maranoa,Western Downs, Central Highlands and Banana regional council areas, including towns such as Roma, Miles, Surat,Taroom,Wandoan, Injune and Rolleston. The company originally applied for the expansion - which will feed its GLNG export facility on Curtis Island off Gladstone in early 2012.


NEWS page 8 page 9 FIFO research revealed

Camp shortfalls exposed

bushfires oal seam gas company QGC stepped up to help local fire crews when bushfires tore through a forest on the Western Downs. QGC staff and contractors were involved in the effort to extinguish the blaze at Halliford, which eventually burnt out around 30,000 hectares. A QGC spokesman said the company did what they could to help respond to the threat. "We brought together an emergency management team which, after accounting for all staff and contractors in the area, provided support to fire brigades,” the spokesman said. "Fortunately, QGC and contractor assets and personnel have not

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CONTAMINATED WATER

been in immediate danger from the fires. "Our thoughts are with those who have lost property or otherwise been affected." The contractors included Murphy Pipe and Civil, Clein Excavations of Chinchilla, water transporter Jason Gates from the Tara area and Thiess. The QGC spokesman said the actions of the staff assisted greatly in stopping the fire's spread. "Clein Excavations and Murphy Pipe and Civil have used earthmoving equipment to clear fire breaks around homes,” the spokesman said. "Thiess and Jason Gates resupplied water bomber aircraft and fire crews. "Fire personnel said these actions saved several houses.”

N e w a i r p o r t f o r To o w o m b a g i v e n t h e a l l c l e a r t o t a k e f l i g h t oowoomba developer John Wagner has been given the allclear to start construction on Wellcamp Airport early next year. Mr Wagner was seated in the front row of the City Hall public gallery last

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building in March, 2013. "I think it's a fantastic decision for this region," Mr Wagner said. "I stand by my view that this is a game-changer for Toowoomba and the entire region." Cr Bill Cahill discusses the approval of Wellcamp Airport. While

week as his plan came under the scrutiny of council's development assessment panel. He declined to address the meeting, opting rather to hang back and wait for the decision he always expected. Wagners work crews are on standby to start

councillors were unanimous in their approval of the airport, they were concerned that minimal community consultation was required due to its code-assessable status. "I'm disappointed that a project of this magnitude is codeassessable, taking away the

local community's right to be part of the process," Cr Mike Williams said. Under Toowoomba's current planning scheme the undertaking would be impact-assessable, requiring an enormous amount of discussion with ratepayers and stakeholders.

AN UNDERGROUND gas company has been forced to pay a total of $102,000 in penalties after its executive officer pleaded guilty to releasing contaminated water between Dalby and Chinchilla. Carbon Energy operates a trial underground gasification project in the region. The firm is to pay $60,000 in fines, $40,000 in legal costs and Andrew Dash had to personally pay $2000 as its executive director after the incident. The fines followed an investigation launched by the Queensland Government in 2010. Carbon Energy faced three charges relating to breaking environmental codes and not reporting the breach. Environment Minister Andrew Powell said the result proved the department was closely watching underground coal gasification and other mining operations. "I have previously stated we will do everything we can to assist industry and help them do the right thing," Mr Powell said. "However if serious environmental harm occurs, then we will vigorously pursue those who break the law."

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in the NEWS

Tara’s fugative emissions study by Southern Cross University has raised suspicions about potentially high levels of fugitive methane and carbon dioxide emissions in Tara's gas fields. The SCU researchers used a Picarro G2201-i cavity ring down spectrometer to measure the presence of the gases in the air during a single tour of the area between and around Tara and Condamine. According to doctors Isaac Santos and Damien Maher 500 km east of Tara had lower concentrations of methane, roughly 1.86 parts per million. Thirty kilometres east of Condamine the spectrometer registered levels as high as 6.89 ppm, while the rest of the fields averaged well below 3.08ppm. Some local landholders see the preliminary research as a cue to begin a more serious investigation. Brian Monk was not surprised by the preliminary investigations from SCU after his experiences of bubbling puddles, and said the

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Talinga gas field was a prime example of gas leakage. "You can see the flares and the shimmer, that's all gases being flared off into our atmosphere that we're breathing," he said. Mr Monk said his faith in government reports was shaken after his flammable water bore was cleared for the third time in 18 months. "I turned my bore on and it came up 31% LEL (lower explosive limit)," he said. "It may be a number of gases, but it absolutely drove the meter to 31%." He said his meter was fully calibrated and certified last weekend. APPEA Chief Executive Rick Wilkinson expressed concern in a letter to the university that the unfinished research may paint a needlessly alarming picture. "It is deeply concerning the university has seen fit to only partly release information about the research rather than provide the general public, the media, and our industry with the full picture," the letter said.

"APPEA has always supported research in the field of fugitive emissions but research released under the guise of a funding submission does little to enhance public, open and transparent debate. "Any serious research into this field must also take into account all sources of potential and actual emissions, including both those which may be naturally occurring or derived from agriculture and other industries."

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in the NEWS

Terms of reference NP-defector Ray Hopper said the release of the draft terms of reference for a proposal to expand the New Acland Coal Mine was one of the things which fuelled his decision to jump ship to Katter's Australian Party. "We promised stage three would not go ahead ‌ technically it hasn't but that's where it's at," Mr Hopper said. "I told the people of Oakey I would fall on my sword if stage three went ahead." Mr Hopper said defecting to KAP gave him more power in parliament when it came to situations like this. "I am now in a position to put Private Member bills forward that the LNP will have to vote for or against," he said. The terms of reference were released for community input earlier this month, and follow

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New Hope's application for a smaller expansion. The State Government said it was expecting a "broad range of views" on the draft terms of reference but Deputy Premier Jeff Seeney said the revised expansion application would reduce its impact on agricultural land. "The revised proposal is 63% smaller with the project footprint reduced by 2,300 hectares," Mr Seeney said. "The reduced scope means mining over the town of Acland is no longer proposed and neither is the diversion of Lagoon Creek." Mr Seeney said the State Government understood communities had strong views on the proposal. "We acknowledge there will be a broad range of views on the proposal," he said. "The release of the draft terms of reference allows these groups to provide their input and shape the scope of the project's proposal."

P O O R A C C E S S TO I N F O R M AT I O N O N G RO U N D WAT E R S T U D I E S A D D R E S S E D

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roundwater has been the focus of water-related studies at various research institutes, according to a GasFields Commission report released last month. The report detailed a total of 188 water projects and studies relating to the coal seam gas sector. Gasfields Commissioner and engineering Professor Steven

Raine, who released the report, said 84 studies have investigated hydrogeology, groundwater impacts and aquifer injection. He said collating research into CSG and groundwater had been a top priority for him since joining the Commission. "This first wholistic snapshot has found there are a large number of science and research projects on the CSG sector either underway or completed," Prof Raine said.

"This demonstrates significant effort is going into understanding industry impacts and identifying strategies to minimise these impacts. "It is pleasing to see the

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amount of work scientifically investigating groundwater impacts and salt management." The Commission said surface water management, with topics investigating water treatment, irrigation and discharge, was the next major area of study. Prof Raine had previously promised that the Commission would audit water-based research into the CSG industry. He said prior to the report,

Surat Basin NEWS Thursday 20 DECEMBER 2012

the public had not had enough access to data and findings on the topic. "To date there has been a lack of information publicly available about what studies were being undertaken and who has been working in particular areas," he said. "While this report sheds light on what is going on, there is still a need for the research data and findings from these 188 studies to be released into the public domain."

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in the NEWS

FIFO workers feel undervalued ly-in, fly-out workers feel undervalued and their partners are generally dissatisfied with their lives, according to two academic reports from a Perth university. The two research papers, from Murdoch University's School of Psychology, are the latest in a string of attacks on the emerging need for FIFO workers to work

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on isolated mining and construction sites. Earlier this month, an awardwinning Brisbane academic said the FIFO nature of the industry was creating "hot boxes of crime". It also follows an expansive federal parliamentary inquiry that began in August last year but is yet to publish its findings. Of the two Murdoch reports,

one focussed on whether workers and their families were personally satisfied with their FIFO roles. It found that, in general, the FIFO staff were content in their roles, although partners were less satisfied. Those with primary school-aged children were more likely to be unhappy but those partners with no children reported feeling the

most stress. The second was taken with an interest in how workers felt about managers, their role and the amount of support received. In this research, of the 223 FIFO workers surveyed, the average response was that they did not feel a strong sense of belonging to their employer. They also reported, on average, to feeling unsure about the level of support given. Research supervisor Libby Brook said the papers showed workers did not feel valued for their contributions or that supervisors cared about their well-being. "Since workers see their supervisors' attitudes as a reflection of the organisation's attitude as a whole, this is

significant," Mrs Brook said. She said companies were making a major effort to improve support for these fly-in workers, but said the research showed more needed to be done. In early 2012, the Queensland Resources Council published research based on 2013 workers surveyed. Of those, roughly half lived near their work site and half had to either drive or fly to work. It suggested just 12% of workers reported wanting to change accommodation arrangements. The report also found 90% preferred to live on the coastline against living near their workplace. Murdoch University is continuing its research in the area.

Mining flights expand hartered mining flights will likely expand beyond the current hubs of Brisbane and the Gold Coast as high demand begins to delay flights. Brisbane Airport has reported flights running up to 40 minutes late on weekday afternoons because of a glut in passengers returning after a shift change. The topic arose during a panel discussion at the Major Projects Conference in Brisbane which included representatives from Queensland Airports, Alliance Airlines, BHP Billiton Mitsubishi Alliance, Adagold Aviation and the Western Downs Council. Queensland Airports managing director Dennis Chant said as congestion increased on the tarmac in Brisbane, mining firms would hunt for more locations. Mr Chant said the industry took little interest in scouting new airports to dispatch fly-in, fly-out workers because Brisbane served them well.

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No competition

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he State Government has defended its decision to extend the exclusive Qantaslink contract for the Brisbane-Roma-Charleville run for another two years. Goups such as the Toowoomba Surat Basin Enterprise (TSBE) had called for the deregulation of the Roma route. "The decision here is a pretty easy one from our point of view - that flights need to be increased so residents through the region have greater access," TSBE CEO Shane Charles said. However a spokesperson for the Minister for Transport and Main Roads said while they supported deregulating routes it is vital that regional communities retain access to air services. "Contracts were due to expire in March 2013

so in order to allow a proper review of deregulating these routes and to ensure continuity of services for regional Queensland, all contracts were extended," the spokesperson said. "This will give us enough time to work with the industry and local community to determine whether these routes can be commercially viable with more than one operator."

C O M PA R I S O N T E S T Cheapest flight Brisbane to Roma on December 20 is $152 (regulated route) Cheapest flights Brisbane to Emerald on December 20 is $106 (deregulated route) On the same day, cheapest flights Emerald to Brisbane is $279 while the cheapest fare Roma to Brisbane $364.

That was starting to change as other sites ask to help carry the load. "The Gold Coast and Sunshine Coast have made their intentions clear they see opportunities in that space," Mr Chant said. "It's about getting all sectors of industry together to say we can support a new service. BHP Billiton Mitsubishi Alliance asset manager Stephen Dumble said he would like to see workers coming from wherever suited them.. "We are interested in extending the benefits of what we are doing as widely as we can," Mr Dumble told the conference. "We see south-east Queensland as a whole, and in that regard, the providers who can give the best combination in service and skills will position themselves well." Alliance Airlines boss Scott McMillan went further, saying Queensland workers could be flown to parts other parts of the country, not just kept nearby.

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Surat Basin NEWS Thursday 20 DECEMBER 2012


in the NEWS

Research reveals camp shortfalls IN 'RE U O U'RE N Y O E Y H D "W P AN E F TH M O A C T A PA R YO U N O T U N I T Y, E S O F M X COM HOT BO ING E T EED CREA ME - BR LCOHOL I R A CR S FO ABUSE. P U G R O L AT E D RE

leading Brisbane academic and awardwinning criminologist has compared Queensland mine worker accommodation to detention centres, gulags and concentration camps. Queensland University of Technology School of Justice head Professor Kerry Carrington's research with colleagues into the mining industry won the year's top honour from the Society of Criminology last week. Her three-year-study - The Resource Boom's Underbelly - explored how construction and mining camps in Queensland and Western Australia created "hot boxes of crime". The research was also submitted to the Parliamentary Inquiry on fly-in, fly-out workers. It is a claim questioned by the state mining industry's peak body, the Queensland Resources Council. Following her return from the ceremony in New Zealand, Prof Carrington said Western Australia was the worst offender - but Queensland was starting to follow suit. "When you're in a camp and you're not part of the community, you create hot boxes of crime - breeding groups for alcohol-related abuse. "You create markets for illicit drugs,

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especially designer drugs because they bypass testing. "This is not the fault of individuals, it's the conditions they are put in. "Whether we are talking about refugee camps, gulags or concentration camps, you're taking people away from their normal lives. "Obviously, a concentration camp is an extreme example." Prof Carrington said not all camps matched this description, with plenty resembling luxury resorts with pools, gyms and activities. But some camps, particularly for those workers building the mines

"There is a huge variation." QRC research - done by URS surveyed almost 1000 "non-resident" mine workers on their accommodation. QRC chief executive Michael Roche said the results found 80% of mine workers were satisfied with the standards. Mr Roche is speaking for camps housing mine workers, not necessarily those building these projects. He said out of 2300 locals and nonlocals across the state, almost twothirds said they were content with

QRC chief executive Michael Roche said the results found 80% of mine workers were satisfied with the standards and infrastructure, were less like home and more like prisons, she said. She used examples of a camp in Blackwater and another in Pilbara where they were found to have been built illegally. "There is a real hierarchy in the camps," she said. "At the very bottom of the heap are detention centres converted to camps.

their living arrangements. "Queensland resource companies have great incentive beyond mandatory building codes to offer superior accommodation options and ensure they can attract and retain the best people," he said. He said workers have made clear they want the option to choose where they live or work or they would leave the industry.

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opinions

12 Mayne Street Chinchilla, QLD 4413 PO Box 138, Chinchilla, 4413 Phone: 4662 7368 General Manager: David Richardson Advertising: Laurell Ison Editorial: Jill Poulsen Design: Beth Walker

Editorial THE end of another year is upon us and it is one marked by tectonic shifts in the Surat Basin where the hackneyed phrase "two speed economy" is an everyday reality. Three of the four major coal seam gas projects are now in full swing with multiple major projects underway in drilling and pipeline building across the region. This is first and foremost a construction boom and it has had huge consequential impacts on our key towns (Dalby, Roma, Chinchilla and Miles) as well as having a considerable footprint in surrounding rural areas. Much of that impact is positive with low unemployment, high growth and tremendous business opportunities. But there are also stresses caused by difficulties attracting and retaining staff, co-existence with agriculture as well as an affordable housing shortage. Like it or not, our industrial operation is built around the fly in fly out (or drive in drive out) model causing societal strains that are difficult to plan for or deal with. Interestingly the number of voters in the 2012 council election has barely changed from the 2008 elections.Western Downs rose slightly from 19,261 in 2008 to 20,256 in 2012. In the Maranoa, the number was actually slightly down on 2008 (8240 voters in 2012 versus 8312 in 2008). Yet we know instinctively from the camps and the "rooms full" signs around the region, there are a lot more people in the neighbourhood than were there four years ago. Gone are the days when a mining company would build a town around its industry. Maybe that is a good thing. But having an imported workforce has its own deep seated issues, not least a lack of belonging. Companies must invest more in the region and that means planning for a permanent workforce with enforceable targets across all tiers of the business. As demographers like Bernard Salt will tell you, an ideal population for a town is around 30,000 where the population dynamics and economies of scale will attract big retailers keen to grab a slice of the action.These in turn become a virtuous circle attracting more people to the town's good facilities.We are nowhere near that benchmark with Dalby at 12,300 (according to the 2011 census) our largest town and just 8,000 permanent residents in Roma, the second largest. Tripling the size of our towns would involve a massive undertaking in government spending.We would need more schools, more hospitals, more police, more shops, more houses, more roads, more employers, more public transport, more everything. It is expensive to plan for this growth, but longer term the more expensive option is not to plan for this growth.

What do you think? Drop us a line at editorial@suratbasinnews.com.au

Property Sales & Rentals Margaret J Whip

Real Estate Lic 3007037

Leanne Clark 0427 816 774 Barry Tuxworth 0429 486 538

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www.chinchillapropertysalesrentals.com.au PAGE 10

Looking back

Ray Brown, Western Downs Regional Council Mayor

Robert Loughnan Maranoa Regional Council Mayor

Pipeline of new projects vital welve months ago, the Queensland Resources Council released a detailed study of 66 proposed major resource projects around the state.The potential capital expenditure on an optimistic 'all projects proceeding' basis was a staggering $142 billion over the next decade. What we also pointed out at the time was that $64 billion were in the 'committed' and 'under construction' categories and that the balance comprised projects classified as 'under study or consideration'. Unfortunately, most are still in that category today. A faltering global economy, low commodity prices, an Aussie dollar that refuses to budge and rising construction and operational costs are at the heart of the current downturn. However, there is good news for the Surat Basin, particularly as the region confirms its status as a major new global energy province. In 2011-12, resources sector companies

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COMMENT

SBNEWS

Rail disappointment

Michael Roche Chief Executive Queensland Resources Council

spent $1,280 million in the Darling Downs and South West statistical divisions in the form of wages, salaries, and goods and services from Queensland suppliers. This was an almost 30 percent increase over the previous year and contributed to a $36 billion outlay across the state. The level and extent of sector spending can be investigated down to the Local Government Area level on the www.queenslandeconomy.co m.au website. The data includes important community 'flow-on' calculations, which led economists to conclude that in 2011-12, the resources sector in Queensland was

directly and indirectly responsible for one in every four dollars circulating in the economy and one in every five jobs. Of specific interest to rural and regional Queensland is that the sector continues to produce an extraordinary level of economic activity from a tiny 0.09 percent of the state's land mass. The messages from the latest statewide survey are clear. • The resources sector is still driving the Queensland economy. • The extent of the sector's statewide spending suggests non-residential workforces are helping to spread the socio-economic benefits. • The very high Queensland content level at both construction and operational expenditure phases tells us that Queensland suppliers are highly successful in winning work. Of ongoing concern for the QRC is whether there will be a continuing pipeline of resource projects as the

current crop of major projects are completed over the next two to three years. That may be less of a concern if Queensland's other three economic pillars construction, tourism and agriculture - take up the slack. However, if that is not the case, then we must as a community understand that we can no longer take for granted Queensland's ability to attract an endless supply of resource investment. I don't just mean investment in additional production volumes; I also mean investment in sustaining existing levels of production. Queensland is in fierce competition for capital for resource projects with other jurisdictions that have superior cost structures and lower taxes and royalties. Future resource projects in Queensland will have to stack up against a host of new global criteria. If we are up to the challenge, we can play our part in Asia's century, but we cannot assume that capital will continue beating a to our door.

Industry pioneer honoured n industry leader also known as the 'father' of the coal-seam gas industry in Queensland is the winner of the 2012 QRC Medal. For Bob Bryan AM, it was his second award from our organisation. In 1995, he became the then Queensland Mining Council's first life member for his role in the successful merger of the Queensland Coal Producers' Association and Queensland Chamber of Mines. A geologist who worked extensively in outback Queensland and Western Australia early in his career, Mr Bryan founded Pan Australian Mining Ltd in 1983 and, as managing director, oversaw the development of a major gold mine at Mount Leyshon, near Charters Towers. He was also chairman of Highlands Pacific, a mineral explorer in Papua New Guinea. Awarded an Order of

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Australia, and an induction into the QUT Business Leaders' Hall of Fame, Mr Bryan is a founding director of the Sustainable Minerals Institute and the Bryan Research Centre at the University of Queensland. As founding chairman of Queensland Gas Company, Mr Bryan oversaw the company's stellar rise from a market capitalisation of less than $20 million to $5.6 billion in eight years. Among his many current

For Bob Bryan AM, it was his second award from our organisation activities, he has a charitable foundation that disburses about $2 million a year to education and health programs in disadvantaged communities. The foundation formalised a life-long interest in promoting education in disadvantaged communities, particularly in indigenous

Bob Bryan AM receives his award of the QRC Medal from Premier Campbell Newman and QRC Lunch special guest, Olympic sprint cycling champion Anna Meares.

communities. This QRC Medal recognises long and outstanding contributions to the resources sector in Queensland. Past QRC Medal winners include: • Director of the Sustainable Minerals Institute, Professor Don McKee

Surat Basin NEWS Thursday 20 DECEMBER 2012

• coal industry pioneer Ian McCauley • founder of Golding Contractors, the late Cyril Golding • a posthumous award to industry visionary the late Ken Talbot • former General Manager of the Queensland Geological Survey, David Mason.


opinions

One for the record books raditionally the Festive Season is a time when our thoughts turn to family and home, celebrations with friends and fellow workers, holidays and the tradition of giving and receiving gifts. I trust that you will be able to share the spirit of Christmas with those around you. It has been a big year and one for the record books again with floods, electoral majorities, heatwaves and bushfires. Some might even say there has been a few records with political bushfires and they would be on the mark too. Lets be honest it wasn't meant to be easy and Government at times is a welcome challenge to manage. However don't be desponded by the daily media cycles which forget why Electoral change happened earlier this year. The headlines don't report on the front page the great things that have been done such as the introduction of the Royalties to Regions program which will deliver projects to this Electorate such as flood mitigation, and

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fire

floods

improved roads. The Maranoa River Bridge project has been brought forward due to my calls at the beginning of the year to do so, and work has started on the new bridge. Local Hospital Boards have been introduced and are working their way through the massive task of restructuring our hospital service delivery. The Patient Travel Subsidy Scheme will be doubled for accommodation and mileage subsidy commencing 1 January 2013. More teacher aide hours will be delivered at Injune, Surat, Thargomindah, and Yuleba State Schools. The sustainability declarations for property owners wishing to sell homes have been abolished. Schools are now permitted to use local contractors for maintenance work. Small Miners have had their regulatory requirements slashed. The Gasfields Commission powers have been established and there is a Gasfields Community Leaders' Council which is a group of senior leaders from

agricultural and community groups, local and state government and the CSG industry. The Council will ensure wide community representation to the Gasfields Commission and that the Commission priorities are in line with the communities priorities and expectation. Local Government legislation has been overhauled to put Local Councillors back in control of their councils. Sporting Clubs across the electorate who applied for help have received funds to recover from flood damage. The penalties for assault on police have increased. A much needed long

awaited review into the Rural Fire Services, and a completed report on the land tenure in Queensland. Look beyond the headlines and doorstop grabs for what is actually happening locally, and sure there is some pain with some restructures, however there is an old saying 'no pain no gain'. We also have to balance the budget just as business and households have to. There is much more work to be done and I look forward to working with anyone who should seek my assistance or involvement. I ask that if you are travelling that you take special care on the roads during this

COMMENT Howard Hobbs MP Member for Warrego Shadow Minister for Local Government and ATSI Partnerships

extra busy time and what has been shaping up to be a hot dry Christmas. I will be continuing my monthly funding and information updates and anyone is welcome to receive these updates on email. I have also published the 2013 Scholarships Guide for those leaving school and seeking the next step in their education at university. Additional copies are available from my Electorate Offices. As we all look forward to entering 2013 and celebrating the festive season, with family and friends, I hope that many people will have time to reflect and relax with those around them.

I wish all constituents of the Warrego Electorate a Safe Christmas and a Happy New Year.

Surat Basin NEWS Thursday 20 DECEMBER 2012

PAGE 11


opinions

Reinforcing commitment to the region n my final column for 2012, I am pleased to report that the Government recently made some positive announcements regarding the future of the Surat Basin. As part of my Government's Royalties to the Regions program, we have shortlisted the Western Downs and Maranoa Regional Councils to provide full business cases for 14 major infrastructure projects in the region. After years of neglect by the previous Labor government, it's about time resource regions began to see their fair share of the dividends from their resources. The Royalties to the Regions program was an election commitment, with $60 million available under the first pilot of the Royalties to the Regions program; and $495 million over four years. The pilot funding round will address critical or urgent infrastructure needs, focusing on building new and improved community, road and flood plain

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security infrastructure. Of 20 regional projects chosen to progress to the next stage, 14 are in the Surat Basin area, reinforcing my government's commitment to your region.

COMMENT Campbell Newman Premier of Queensland

the Government's council flood and infrastructure money has gone to regional and rural councils for 2012-13. Almost $23.5 million of the $26 million allocated through local

government grants programs has gone to councils outside the southeast corner. This year's funding will see more than 100 flood and infrastructure projects get underway in about 50 regional council areas across the State. Finally, on behalf of Lisa, myself and the girls, I'd like to wish

T H E S H O RT L I S T E D P RO J E C T S F O R T H E S U R AT B A S I N A R E A A R E

Resource Community Building Fund

Of 20 regional projects chosen to progress to the next stage, 14 are in the Surat Basin area, reinforcing m y g o v e r n m e n t 's commitment to your region

• Roma Sewerage Augmentation Project • Miles Water, Sewerage and Recycled Water Scheme Stage 1 • Chinchilla Washdown Bay • Maranoa Water Supply Project • Winfields Road Landfill Upgrade

Roads to Resources • Fairymeadow Road Seal Widening • Goombi Fairymeadow Road Seal Widening • Bennetts School Road Sealing • Wallumbilla North Bitumen Seal • Weranga North Road Upgrade • Mary Road Upgrade • Joseph Road Upgrade • Beelbee Road Sealing

everyone a safe and enjoyable festive season. I look forward to keeping you up to date on what the Government is doing to deliver a better deal for the regions, a better government for Queensland and to ensure that Queensland is a great state with great opportunity in 2013.

Floodplain Security Scheme • Roma Flood Mitigation Project - Levee Construction Business cases are due on December 17, 2012 with announcements of successful

projects early in the New Year. I am also pleased to confirm that more than 90 per cent of

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opinions A month of announcements, findings and new beginnings am disappointed with the latest announcement regarding the Surat Basin Rail joint venture as it now puts at risk the shipment of coal out of the Surat Basin.This was a major consortium bid and Xstrata's project to transport coal to the Port of Gladstone and the recent developments have left this vital infrastructure on shaky ground. As well a recent announcement from Xstrata to cease some of the Powerlink provisions to their supply is also concerning. However, Xstrata have assured Western Downs Regional Council that it is still a viable project and at present we await financial decisions by the company.The other big news this month was Carbon Energy announced that it will look into three open-cut coal deposit areas and provisions other than underground coal gasification.

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COMMENT Cr Ray Brown Mayor, Western Downs Regional Council

This move signals the start of a new direction for the company's operations on this reserve in the Kogan area. Also new industry figures recently released have identified there is in excess of 10,000 personnel in camps and mining facilities across the Western Downs and Surat Basin regions.This is a substantial number that is growing rapidly and putting additional stress on the local authorities in terms of their capacity to supply water, sewerage and waste facilities and has to be planned accordingly. The latest discussions by the Gasfields Commission Queensland have acknowledged issues in

particular with fugitive gas emissions which is fast becoming an area needing to be addressed and in which information needs to be relayed to the general public. The Commission has also identified issues with Tight Gas and its potential impacts not only in the Surat Basin but throughout Queensland where many areas could be targeted for exploration and probability of production of this gas from shale deposits. In what is a major coup for the region,Western Downs Regional Council has signed an infrastructure agreement with Queensland Gas which will mean better planning ahead for the preservation of roads that may be impacted by the company's operations.This is a great initiative and one Council is aiming to extend to all other proponents operating in the region. Putting another foot forward the Western

Downs Housing Trust is in their final discussions with a major housing provider to implement Western Downs Regional Council's Affordable Housing Strategy programs earmarked to the region.This follows a comprehensive review process of how affordable housing could be delivered particularly in the towns of Chinchilla, Dalby, Miles,Tara and Wandoan where stresses on housing availability are evident. Across the region over the next 18 months people will see the enormous effort that road construction gangs are putting in to the reconstruction of roads damaged in the 2010/2011 floods as part of Council's $80 million flood reconstruction program dubbed "Operation Road Restore". Major upgrades will also be undertaken by Council in conjunction with the energy sector on local roads which

suffered significant impacts from the floods. Lastly, I would like to take this opportunity on behalf of Western Downs Regional Council to thank the energy companies, landholders and rural fire brigade volunteers for their contributions in combating the severe fire events that earlier this month threatened our local communities.All fires were able to be effectively contained ensuring the ongoing preservation of infrastructure and protection of the community. Words cannot express my gratitude to everyone for their efforts which averted a potential major fire disaster. The year has certainly flown and in 2013 Western Downs Regional Council looks forward to continuing to forge successful partnerships with proponents' part of the booming gas, coal and energy industries in the Surat Basin region.

Significant challenges highlights a resillient community eflecting on the last 12 months, it has been a great privilege to have been able to work again with a diverse, strong and resilient community that has accomplished a lot and faced up to some pretty significant challenges as well. The year kicked off with yet another big wet season, with unprecedented flooding in Roma and Mitchell and thousands of acres of country inundated up and down our rivers and creeks. Hundreds of homes and businesses were flooded, however our people rallied once again, showing incredible courage and generosity in helping to put lives and homes back together. I would like to thank all those who have acted in any way to support our affected residents; it has been a tough year for many of them and your compassion as a community needs to be acknowledged. The heavy rains and flooding had also taken a toll on our road network, with the bulk of Council's work this year focussing on reinstating roads.With a well organised roadworks' plan now

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in place, we are working towards constructing the best and safest road system possible. Not long after the floods, local government elections took place and I am delighted with the make-up of our new Council. Earlier this year, Queensland elected a new state government and with its' election came a sense of fresh optimism and new funding opportunities for our region, despite a fairly bleak state and national economic outlook. One of the latest successes is the Royalties for Regions funding program.We have been successful in being shortlisted to receive funding contributions for four out of the seven projects submitted this year. The year has also seen an increased development of the coal seam gas industry, with more wells being drilled throughout the region and work on the pipeline to Gladstone progressing. Having the resource industry in our region has provided various benefits, as we have received financial assistance with some infrastructure projects, as well as support with community events and

The heavy rains and flooding had also taken a toll on our road network, with the bulk of C o u n c i l 's w o r k t h i s y e a r f o c u s s i n g o n reinstating roads

COMMENT Cr Robert Loughnan Mayor of Maranoa Regional Council

programs. All these initiatives have the effect of removing a burden from our community and our rate-payers, who are essentially our shareholders. The agriculture industry has also seen a productive year, with favourable weather conditions providing ideal conditions for planting as well as an abundance of feed for grazing. Improved crop prices have also made for a successful year. On the flipside the traditional tourism traffic has suffered a downturn, mainly due to uncertainty about the safety of flood affected roads and the increased fire conditions which pose a danger that I hope will ease prior to the Christmas break. Although a tough year for many, I look forward to 2013 as a time for us to achieve even more. From your Councillors and everyone at Maranoa Regional Council, I wish your staff and all your readers a happy and safe Christmas and an outstanding 2013.

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down to page15 page16 page17 New CSG regulations

Fair deal for workers

Flood aftermath

Queensland’s big spenders O ne in every four dollars of the state's economy and one in every five jobs can be attributed to Queensland's resource sector. Earlier this month at its annual lunch and industry forum in WESTERN DOWNS LOCAL GOVERNMENT AREA D i re c t e c o n o m i c contribution

Brisbane, the Queensland Resources Council (QRC) released statewide spending data for 2011-12 that confirms that despite testing market conditions, the minerals and energy sector has increased its economic contribution to the state. The data demonstrates that on the back of higher capital expenditures, resource

companies created $36 billion in gross regional product over the 12-month period. These companies include the state's producers of coal, metals, gas, alumina and aluminium, mineral sands, electricity and liquid fuels. This represents a 40 percent increase on the resources sector's economic contribution in 2010-11.

QRC Chief Executive Michael Roche said that by using postcode-aggregated spending data supplied by its largest member companies, the minerals and energy sector is calculated to have spent $28 billion directly on goods and services from Queensland suppliers and $8 billion in wages to 64,300 direct workers who reside in Queensland.

In 2011/12, the resources sector in this LGA contributed at least: • $234 million in wages to 1,873 direct fulltime employees (not including contractors) • $288 million in voluntary community contributions and purchases of goods and services from employing local businesses (including contractors) I n d i re c t e c o n o m i c contribution This $522 million in direct Gross Regional Product (GRP) generated additional economic activity because: • Local businesses along the supply chain responded accordingly • Direct workers and workers along the supply chain spent their wages on locally produced goods and services • This equated to approximately $436 million in additional GRP and 5,026 jobs being generated in and around this LGA Total contribution The total economic contribution (direct and indirect) from the resources sector in 2011/12 amounted to approximately: • $958 million in GRP • 6,898 full-time equivalent jobs in and around the region PAGE 14

"On top of that direct spending, the sector via its high capital intensity and linkages with sectors such as transport, construction and manufacturing, supported and created another 416,000 jobs in those other sectors," Mr Roche said. "Queensland resource companies also paid $3.2 billion in royalties to the Queensland Government and about $11 billion in taxes to the Federal Government in 2011-12. 'This economic contribution by the resources sector is an extraordinary outcome for Queenslanders when you consider the sector's physical footprint covers just 0.09

percent of the state's land mass. "The strongest growth in resources sector spending occurred in the Wide BayBurnett (+144 percent), the North West (+102 percent) and the Far North (+80 percent)." Mr Roche said that, as we've seen with the current downturn in coal markets, there is tremendous benefit to Queenslanders of producing a diversity of resource commodities as a hedge against increasingly volatile global market conditions. "The challenge now is to ensure that there is a strong pipeline of projects across all

commodities to sustain and grow the resources sector in Queensland," he said. "Achieving that strong pipeline of new projects will require a clear focus on addressing cost disadvantages such as workforce inflexibility, ballooning tax and royalty imposts and regulatory green tape and red tape."

MARANOA LOCAL GOVERNMENT AREA D i re c t e c o n o m i c contribution

In 2011/12, the resources sector in this LGA contributed at least: • $29 million in wages to 236 direct fulltime employees (not including contractors) • $144 million in voluntary community contributions and purchases of goods and services from employing local businesses (including contractors) I n d i re c t e c o n o m i c contribution This $174 million in direct Gross Regional Product (GRP) generated additional economic activity because: • Local businesses along the supply chain responded accordingly • Direct workers and workers along the supply chain spent their wages on locally produced goods and services • This equated to approximately $104 million in additional GRP and 1,767 jobs being generated in and around this LGA Total contribution The total economic contribution (direct and indirect) from the resources sector in 2011/12 amounted to approximately: • $278 million in GRP • 2,003 full-time equivalent jobs in and around the region

DETAILS OF THE REPORT Queensland Statistical Division and specific Local Government Area data can be found at

Surat Basin NEWS Thursday 20 DECEMBER 2012

www.queenslandeconomy.com.au.


BUSINESS CSG world energy revolution is afoot, as the United States prepares to briefly overtake Saudi Arabia as the world's largest oil producer, but Australia's own resources upheaval could be jeopardised by fierce opposition to mining underground gas. By using new technology to mine underground shale oil and gas, the International Energy Agency's World Energy Outlook published a forecast for the United States to supply itself enough oil and energy that it no longer needs Middle Eastern suppliers But for Australia, the IEA used the report to repeat its view that public opposition to "unconventional gas" - which includes coal seam and shale gas - could endanger this country's own aspirations for a "gas revolution". Protests in Queensland and New South Wales from anti-CSG groups continue as energy companies explore, develop gas wells and plan refineries. According to the IEA report, there were "concerns about the environmental impact of producing unconventional gas that, if not properly addressed, could halt the unconventional gas revolution in its tracks". It recommended strict legislation for companies to prove their environmental credentials. The peak body for gas and oil companies - the Australian Petroleum Production and Exploration Association - agreed with the IEA, that industry ensured a strong environmental approach. "It would be poor business practice to behave in any other fashion," a spokesman said. "Today's modern gas production industry, which operates under a strict regulatory environment is already setting higher benchmarks and standards for itself and other industries."

Curtis Island gas project

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n just six months, a sprawling gas project on Curtis Island hired more than 1500 workers, an average of eight recruits each day. Gas powerhouse QGC released the figures as it submitted its latest progress report to the Queensland CoordinatorGeneral. As of September, QGC's Queensland Curtis LNG project had been fed $8.7 billion. Up to $6.9 billion of this was spent with Queensland businesses. In total, QCLNG is expected to cost roughly $20 billion to develop. QGC managing director Derek Fisher said more than 90,600 Australian businesses had offered to work with QGC since 2010 with 28,900 delivering expressions of interest between April and September this year. The massive undertaking by QGC - which is owned by the BG Group - includes 540km of underground pipelines that will funnel coal seam gas from the Surat Basin west of Toowoomba into Gladstone for processing. The Curtis Island plants are forecast to be exporting LNG from 2014.

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New plans to regulate gas industry he Queensland Government has released a compliance plan to regulate the Coal Seam Gas to Liquefied

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Natural Gas industry over the next year. Minister for Environment and Heritage Protection Andrew Powell said the CSG/LNG Compliance Plan 2012-13 is available online. "Earlier this year I visited communities across Queensland where the CSG to LNG industry is expanding, and I found that people want to know more about the obligations companies have in relation to the environment," Mr Powell said. "The Newman Government

has a robust regulatory and legislative framework, so we need to make sure industry operators understand their environmental obligations. "Equally, we want to ensure the public has confidence in the transparency and effectiveness of the framework. "This plan outlines how my department will respond to and investigate any community concerns regarding industry activities and take a consistent approach to any non-

compliance." The plan focuses on activities such as management of groundwater extraction, production and management of CSG water, fracking activities and pipeline construction. Mr Powell said the Government encouraged operators to voluntarily comply. "Where non-compliance is identified the department will work with the company to bring it back into compliance," he said.

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down to BUSINESS Coal mining lobby group wants Fair Work legislation dismantled

Fair go for workers national coal mining lobby group has called on the Federal Government to dismantle its Fair Work legislation claiming it was failing the industry. Australian Coal Association chief executive Nikki Williams described the industrial relations system as setting sides up against each other and creating a barrier to growth. Dr Williams said the skills shortage and high demand for coal meant unions had more power to "flex

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"There are provisions in the act that allows union to notify of stoppages then cancel them at the last minute." Dr Williams also referred to the "gruelling BMA dispute" as proof that the legislation was flawed. Workplace Relations Minister Bill Shorten defended the Fair Work Act following the deal signed by BHP Billiton Mitsubish Alliance and a number of unions last week "The Fair Work Act contains clear rules governing industrial action to ensure that is used appropriately and is not a step taken lightly," Mr

"There are provisions in the act that allows union to notify of stoppages then cancel them at the last minute." Shorten said. "The Act also provides a number of mechanisms to resolve bargaining disputes. "The vast majority of enterprise agreements are made without any industrial action at all. "Despite quarterly fluctuations in data - industrial disputation continues to trend downwards from the highs seen during Howard years."

survey commissioned by the mine workers' union has found four out of five Australians want mining companies to ensure local workers are employed before importing foreign employees. The survey, completed for the CFMEU, showed 80% of respondents said mining companies should have to prove they searched for Australian workers before being allowed to import temporary foreign workers. CFMEU general national secretary Dave Noonan said the survey showed a significant majority opposed the enterprise migration agreement (EMA) for the Roy Hill iron ore project in Western Australia. But government documents show under such EMAs, companies already have to prove they thoroughly searched the domestic jobs market for suitable applicants. The survey also showed 70% of respondents agreed a committee of regulators, unions and mine companies should be set up to oversee the EMA process. "Ms Rinehart may dream of a 'Wild North' in which mining magnates can fly in exploitable temporary foreign workers at will, but the overwhelming majority of Australians are simply not buying it," Mr Noonan said. "They want strict controls on EMAs and independent oversight."

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industrial muscles" into matters of management. This situation was not helped, she said, by Fair Work legislation that did not encourage sides to work together, but pitted them against one another. "What we've witnessed in the coal industry are skyrocketing wages and production losses running into the hundreds of millions of dollars," she said.

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down to BUSINESS

Storm season warning iners are being warned to be careful in storms, with the Queensland Government releasing an industry-wide safety notice about the danger of drowning on site. The bulletin was released following two recommendations from the 2011 flood inquiry that related directly to the industry. Both of these encouraged mine management to ensure they had the most up-to-date information from the Bureau of Meteorology for both the wet season and the present. The nature of digging into the ground means that in some areas, water can pool on the site leading to areas becoming waterlogged and unstable, or increasing the risk of flooding.

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Working with someone else and wearing a buoyancy vest were two recommendations for anyone operating near water Chemicals, equipment or gas also can also become unpredictable hazards if they are moved by heavy rains. It warned workers and management to be wary of abandoned mines, underground water channels that could add to flows, or waterways linked to the ocean that could become swollen. Working with someone else and wearing a buoyancy vest were two recommendations for anyone operating near water. The Department said these rules and recommendations were not exhaustive, but care had to be taken to avoid the risk of drowning or injury. Queensland Resources Council CEO Michael Roche said he was pleased to see the Newman government taking a scientific approach to the issue of water releases from mines during extraordinary weather events such as that seen in the 2011 wet season.

Brisbane

DALBY D ALBY A LBY

WATERED DOWN WATER ON THE MINE SITE C AN BE DANGEROUS. Q U E E N S L A N D D E PA RT M E N T O F MINING RELEASED SOME HISTORY O N HOW DANGEROUS.

1989 - 6 dead in underground mine in WA after heavy rain caused the pit to flood. 1996 - 4 drowned in NSW when water rushed into Gretley Colliery after machinery made a hole in the mine face. 1996 - Miner drowns in 1.6m of water at bottom of wastewater lagoon near partially submerged vehicle. 2010 - Flooding traps 153 in Chinese coal mine when workers accidentally dug into old water-filled shafts. 2012 - Water rushed into mine after sustained rain. 2012 - Mining bobcat rolls in normally dry area where water pooled.Worker narrowly avoids drowning after kicking out back window and escaping.

Glladstone G

Moranbah

Flood costs coal

Q

ueenslands’ two summers of flooding rains appears to have cost the state 75 million tonnes in coal

exports. New figures released by the Bureau of Resources and Energy Economics showed that in the past financial year, Queensland coal production roughly matched figures from seven years ago. The industry peaked in 2009-10, producing 271 million tonnes but in the years that followed, rains took a heavy toll. In 2010-11, that figure was down to 239 as the state was inundated. More rain earlier this year meant that mines were again struggling to dry out.

Mackay

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According to the Queensland Resources Council, there was more to it. A spokesman said the figures might also be down following the longrunning dispute between the Construction Forestry Mining and Energy Union with the BHP Billiton Mitsubishi Alliance. BMA is the world's largest seaborne exporter of metal-making coal, with much of that exported through Central Queensland ports. The industrial relations dispute meant frequent stoppages which cut into production. The mining sector is now hoping to see production come back strong in the next 12 months, even if coal prices take time to recover.

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PAGE 17


building the page19 page20 page21 Santos invests in housing

Bush pilots needed

TSBE social pictures

MILES RENTAL CRISIS TO EASE IN THE NEW YEAR

THE rental situation in Miles is sure to ease with Australia Pacific LNG unveiling a new onsite accommodation facility at Condabri to house its local workforce. The 400 bed facility, named 1844 Village in reference to the year Ludwig Leichhardt discovered the original town, will accommodate personnel working for Leighton's Contractors which is constructing gas gathering and water treatment infrastructure for the Australia Pacific LNG Project. Origin approvals land and stakeholder manager Rebecca Pickering joined a group of community representatives for an

insider's tour of the facility earlier this month. Rebecca said 1844 Village represented Australia Pacific LNG's commitment to minimising the impacts of its CSG to LNG Project on the surrounding communities. "Accommodating our workforce onsite will help to improve traffic conditions and

housing availability in town," she said. "Onsite accommodation means less vehicle movements because staff will be bussed to and from site rather than travelling in individual vehicles. "It will also free up accommodation in town helping to relieve some of the pressure on local housing."

Onsite accommodation means less vehicle m o v e m e n t s b e c a u s e s t a ff w i l l b e b u s s e d to and from site rather than travelling in individual vehicles

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Origin said the 1844 Village will complement other initiatives delivered by Australia Pacific LNG to target traffic and housing across the region. Which include: Funding the construction of 9 affordable homes in Miles in partnership with Horizon Housing Company; Funding for Western Downs Regional Council to employ a Technical Officer to assist in clearing a backlog of Development Applications with council. Funding for a specialist project officer to provide support across a range of business areas to Miles businesses.

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Surat Basin NEWS Thursday 20 DECEMBER 2012

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BASIN page23 Career on track

ANTOS GLNG and Horizon Housing Solutions (HHS) have announced the signing of a $1.1 million housing development contract to boost the availability of affordable accommodation in the Roma area. Work is scheduled to start in February on 16 fully furnished studio apartments, which is aimed at being an affordable rental option targeted at key workers and apprentices wanting to live and work in the Maranoa. Santos GLNG social performance manager John Phalen said Santos initiated the project as part of its $5.8 million housing commitment to the region with not-for-profit housing company HHS engaged to carry out the construction and operation. "We received feedback from community leaders that there was a shortage of affordable accommodation to support low- income workers,� Mr Phalen said. “ We believe this will make a considerable difference to help ease housing pressure for these workers. "This project will help with the attraction and retention of critical workers in the region." HHS chief executive officer Jason Cubit said the new apartments would feature an innovative design appropriate for the area and include a range of energy saving features. "The design is based on a "co-housing" model, which incorporates self-contained dwellings with shared domestic facilities, which reduces utility bills and promotes a great community atmosphere," Mr Cubit said. "Providing safe, well managed and affordable accommodation is a vital step in the process of attracting and retaining skilled workers in the Surat Basin region, and thus ensuring the continuation of key resources and infrastructure projects." The apartment project is expected to be finished by June 2013. It will comprise of two complexes with eight studio apartments with shared living, kitchen and laundry areas.

S

Affordable housing for Roma

SBPG surat basin property group

A YEAR OF GROWTH AND PROSPERITY

By Jason van Hooft CEO SBPG The coming year promises to be an exciting period for the Surat Basin as the growth of the resources sector marches on. The challenge for both private enterprise and local and State authorities is going to be keeping up with the pace of growth and planning for it in advance so we can meet the demands that such growth brings. Provision of residential housing will continue to be one of the biggest challenges for the region and it is up to the private and public sectors to work on ways to fast track development approvals and delivery of housing. House prices in Chinchilla have increased by more than 370 percent since 2003 and during the same period the value of homes in Miles has increased by more than 400 percent. Rents have also increased significantly and there is a real

risk that residential property will become unaffordable for many members of the community unless the supply pipeline is not significantly increased. Investment in the resource and mining, water and gas and transport and energy industries totals around $21.9 billion which translates to about 10,000 new direct jobs as a result. The mining and resources industry will continue to be the biggest contributor to the region's economy - tipping in $6.5 billion by 2031, with oil and gas expected to be the region's fastest growing sector over the next 20 years, with an 11.5 percent workforce increase. The largest number of workers required in 2031 will be in the following occupations - chefs, truck drivers, nurses, metal fitters and machinists, teachers, trades workers, livestock farmers and drillers and miners. All these people will require housing and Surat Basin Property Group is doing what it can to plan and provide homes to satisfy this growing demand. We have completed hundreds of homes in the region and we plan to develop hundreds more.The rewards for the whole community from the resources sector boom are significant and with the proper planning we can ensure that the benefits are shared by all.

Head ofďŹ ce Roma Surat Basin NEWS Thursday 20 DECEMBER 2012

PAGE 19


building the BASIN basin INDU S T RY S E E KS B U S H KN OWLE D GE FO R C U T T I NG EDG E H E LI C O P T E R S U PPO RT he mining industry is increasingly seeking the specialist local knowledge of 'bush pilots' in its quest to find the most efficient helicopter solutions. In recent years managers of remote mining operations have turned to aerial services to reap the benefit of safety, cost and production efficiencies for surveying and personnel

T

transportation projects. Innovators in helicopter safety MI Helicopters have seen a marked increase in the number of operators seeking the extra value offered by pilots trained in the refined art of bush flying. MI Helicopters Director and Chief Pilot Kevin Clark said it was hard to measure the value the bush pilots were adding to their

clients' operations. "These pilots have spent decades training and flying missions across the Queensland bush," Mr Clark said. "They know the land better than anyone else. "Plus there is a premium level of skill involved in navigation, flight and off airport landing in remote areas of Australia that coastal and city trained pilots just cannot match." Hailing from cattle country around Taroom, Kevin Clark learned the art of bush flying working on Cattle properties. He recognised the value his skills offered to the mining industry in the earliest stages of establishing MI Helicopters. "Bush pilots have excellent low level flying skills," he said. "Plus, they understand that their knowledge of the Australian landscape could be invaluable in particular to surveying projects for mining and energy operators.

PAGE 20

"Since then I have built a team of highly trained and skilled pilots. Just recently I added two new pilots to the team, both with bush flying experience. "We match our pilots to our clients' individual needs. "In many cases clients build a relationship with a certain pilot who has intricate knowledge of the landscape the client's project

is located on and continue working with that pilot on numerous projects in the future." MI Helicopters has built a strong partnership with mining and energy clients, including the Department of Primary Industries and Fisheries, Santos, Epic Energy, Jemena, Ergon Energy and Origin Energy thanks to not only its focus on bush

flying, but also its innovation in helicopter safety. "The mining industry's focus on safety extends to their suppliers, however not every helicopter supplier is equal in terms of the safety features they provide,� Mr Clark said. "In addition to being accredited with all standard Safety Management Systems MI

Surat Basin NEWS Thursday 20 DECEMBER 2012

Helicopters leads the industry in safety innovation. "MI Helicopters was the test subject of two ingenious safety innovations that are now available to the Australian market." Mr Clark said he believes that the mining industry will rely on aerial specialists more and more in the future.


building the BASIN

Toowoomba and Surat Basin Enterprise AGM marks end of whirlwind first year Board mem bers; John Dornbusch m, Shane Charles (C EO) and Jo hn Minz.

TSBE CEO Shane Charles thanked business, industry, government, the TSBE Board and staff for their support and commitment to working together for the betterment of the region ndependent regional economic development organisation,Toowoomba & Surat Basin Enterprise, has clocked up twelve months of operation. TSBE Chair John Wagner presented a list of achievements at TSBE's inaugural AGM this week. Mr Wagner spoke proudly of the organisation's progress over the past year making reference to a number of key successes such as lobbying hard for $5 million State government allocation towards the Toowoomba Range Bypass Business Case as well as TSBE's own contribution to

I

conducting a wider economic benefit report to support progress on the range bypass. TSBE has also been instrumental in facilitating engagement between Skytrans and the local business community resulting in the establishment of Toowoomba to Sydney flights, and more recently pushing for future Toowoomba to Roma air passenger services. Premier Campbell Newman gave public support to TSBE at its official launch at Parliament House in September indicating his belief that TSBE "is going to be one of the most successful organisations of its kind".

CEO Shane Charles said he is determined to ensure TSBE delivers for the region and complimented Mr Wagner's words with further details of achievements to date. Mr Charles outlined TSBE's performance so far in connecting business with networks and opportunity, noting that over 50 key organisations had been consulted and are partnering with TSBE to assist the region. Mr Charles made mention of the importance of understanding the how the region contributes to the national economy. "Diversity in industry is one of our strengths within the region,”

he said. It is interesting to note, that whilst we are in the middle of a resource sector boom, the Toowoomba region alone is the second most productive area in Australia in terms of gross agricultural production.” In what can only be described as a whirlwind first year,TSBE has hit the ground running, but said it is looking to build on current strategy and outcomes to

Mr Charles made mention of the importance of understanding the how the region contributes to the national economy.

Developing and Supporting the Community Providing a FREE CONFIDENTIAL SERVICE MURILLA COMMUNITY CENTRE INC.... • Rural Family Support Worker • Murilla Respite Service • Community Development • Outside School Hours/Vacation Care • Centrelink Agency • Miles NILS (No Interest Loan Scheme) VISITS FROM: • Employment Agencies • Legal Service - Video Conference

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champion the future of the Surat Basin region as the new year commences. Mr Charles thanked business, industry, all levels of government, the TSBE Board and staff for their support and commitment to working together for the betterment of the region and concluding that the work had just begun.

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Surat Basin NEWS Thursday 20 DECEMBER 2012

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Chinchilla PAGE 21


building the BASIN basin

Lonnie Krause, Phillip Stonestreet and Allan Sothmann.

tonestreets Coaches has been a family run business since taking over Centenary Heights Middle Ridge Bus Service in Toowoomba back in April 1993. With a modest fleet of only three coaches at the time, the bus empire has expanded its service and boasts 190 vehicles in total and nearly 150 staff. Stonestreet's Coaches directors Phillip Stonestreet and sister Bev Mules said the family aspect

S

of the business had played a pivotal role in its success today. "We provide a very personalised service, and our hands on approach when building the business is now working," he said. With a head office in Toowoomba, Stonestreet's now has depots in Bundamba, Dalby, Gladstone and the Bowen Basin. But Mr Stonestreet said the company wasn't afraid to move from its permanent depots. "We have a great ability to

Personalised service and hands on approach sets Stonestreets apart

Family ties the secret to success

Stonestreet's has a strong view when it comes to bus safety and by the end of next year all the fleet will be fitted with lap-sash seat belts. be flexible and to get out to the field quickly," he said. "We try not to say no and we have set up depots remotely before." It's more than just charted tours Stonestreet's provide, with the company also offering 4x4 tours, Australia wide tours, as well as school bus routes. The 4x4 tour is one of the company's more recent endeavours having provided the service for around three years.

"We started it to find another market," Mr Stonestreet said. "It's an opportunity for people to get off the beaten track." Stonestreet's has a strong view when it comes to bus safety and by the end of next year all the fleet will be fitted with lap-sash seat belts. "We put a lot of emphasis on safety‌ including fatigue management with the drivers and a new bus safety program," he said.

Stonestreet's Coaches can be contact on 1300 555 899 or by emailing info@stonestreetscoaches.com.au.

Your Contact Geoff West-McInnes PO Box 565 Roma Qld 4455

PAGE 22

Mobile: 0429 345 354 Email: roma@ior.com.au Phone: 07 4622 8333 Fax: 07 4622 8300

Surat Basin NEWS Thursday 20 DECEMBER 2012


building the BASIN

Kimberley’s career set at Ostwald Bros Company committed to providing career paths for local youths in the region

Kimberley was recently named Apprentice/Traine e of the Year at Our Lady of the Southern Cross College aw ards night.

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raduating from high school is a time of uncertainty for many teenagers but Dalby student Kimberley Clark can enjoy the holiday break knowing that her career is already underway. For the past two years Kimberley has been a school-based trainee at Ostwald Bros and will take up a permanent position as Corporate Administration Officer early next year. Ostwald Bros' Projects Administration Manager Linda Croft, who mentored Kimberley, said dedication to the task, good communication skills and attention to detail had earned Kimberley a place in the company. "Kimberley has been working for the project administration team since the start of Year 11 and she has been an absolute pleasure to work with," Mrs Croft said. "She asks the right questions, can work independently, and is always friendly and polite." Ostwald Bros has a dedicated learning and development team to help employees acquire the skills they need to advance their careers. Kimberley's training has included direction in the use of Pronto and Excel software, and reception skills. Kimberley's work at Ostwald Bros recently earned her the title of Apprentice/Trainee of the Year at Our Lady of the Southern Cross College. Ostwald Bros CEO Brendan Ostwald said the company was committed to providing career paths for local youth. "As a regionally based company, we give priority to locals looking to further their skills,” Mr Ostwald said. “Every year we place a number of apprentices and trainees from the local area in a variety of positions.” Next year Ostwald Bros will take on three school based apprentices and start six fulltime apprentices in a variety of trade work including automotive, engineering mechanical and engineering fabrication. "Over the years we have employed a number of outstanding young people who have proved an asset to Ostwald Bros," he said. "Our trainees and apprentices are to be commended on the positive start they have made to their careers and we look forward to welcoming them to the company full time next year."

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Dan Shepard Field Supervisor

PAGE 23


places and page 25 page 26 page 27

facetoface TSBE social pictures

Xstrata’s Christmas Party

Faces of Wandoan

Scott Bird Origin Regional Community Relations Manager

From teaching PE in Tassie to working in the Pilbara in WA, Scott Bird has had an interesting journey to arrive in Chinchilla. As Origin’s Regional Community Relations Manager Scott has become a well-known local identity. Surat Basin News caught-up with him to find out what lies beneath the magnificent moustache. Where did you grow up? North West Coast of Tasmania (Devonport) How did you first get involved in this industry? I was working in local government in WA and an opportunity to work in Community Engagement with BHP came up and I relocated to Newman in the Pilbara to give mining ago 5 years ago.

What do you love most about your job? Meeting new people from all different parts of the local community.

What do you think of Chinchilla as a town to live in? Chinchilla's great, I'm currently acting as the town’s promotion officer in encouraging all my friends from WA to move here.There's always something to do here with so many events and other things on each weekend.

How did you get where you are today? Plenty of luck and being able to adapt to change; 10 years ago I was teaching PE in Tassie. What made you relocate to Chinchilla? The opportunity to be involved in one of the largest construction projects in the world and still have the ability to live in a small town. Do you have a family/did you bring them with you? Yes; my wife Brooke. We were married in January this year. It’s been a big year, new job, new town, new house and new wife!

What do you see as the biggest challenges in your role? Dispelling a lot of the myths around CSG Production and explaining the benefits of the project to those that haven't been exposed to what we are doing.

What are you looking forward to doing while living here? Trying to knock down my handicap at the Chinchilla Golf Course and having a kick of AFL with the Chinchilla Suns next year. What do you do in your spare time? Scott and his lovely wife Brooke take to the dancefloor at Chinchilla’s Stockman’s Ball.

Try to keep fit by running and

A solid contributor to the community; Scott was only too happy to throw his suppport behind Movember this year.

swimming, but when that gets old I enjoy having a cold beer with friends. Where is the best place you have visited? Fraser Island is my favourite place in the world, but in and around Chinchilla a visit to the local Indian restaurant for a Rogan Josh always pleases.

www.suratbasin.com.au The only online information service that keeps our readers informed across the west Fed by your local newspapers

Western Times, Balonne Beacon, Western Star, Chinchilla News and Murilla Advertiser, Surat Basin News, Dalby Herald, Northern Downs News and Thirsty Work B U I L D I N G O U R A U D I E N C E A C R O S S M U LT I P L E P L AT F O R M S PAGE 24

Surat Basin NEWS Thursday 20 DECEMBER 2012


FACES page28 Origin great joins team

TSBE networking winds up

Brett Morgan and Max Fairbanks, Black Toyota

Julie Hawke, Clarity; Claire Bennet and Claire Feather from Feather & Lawry Design.

Mark Wright, GHD Pty Ltd; Amos Chew and Shamaul Alam of Xy Projects enjoy a drink at the TSBE’S networking function in Toowoomba earlier this month.

Tino Magatelli, AWX and Gary King, Equifab. Robin Hodge, Hutchinson Builders; Murray Leonard, NAB; Darryl Green, Green Property Projects.

Steve Streidl and Anthony Freer, Southern Cross Automotive Group.

Steve Watchman, McCormack Industries with Scott Fyfe of Rocla

Bill Gamack, Australian Migration and Visa Lawyers; Darren Da Costa, Davidson Recruitment.

Greg West, SBGP, Dennis Wagner, Wagners and Dallas Hunter, FKG.

LARGE INDUSTRIAL, TRUCK & HEAVY EARTH-MOVING RADIATORS, INTERCOOLERS, HEAT EXCHANGERS AND OIL COOLERS

Developers Panel Greg West, SBPG, Dennis Wagner, Wagners and Dallas Hunter, FKG with CEO of TSBE Shane Charles.

Surat Basin NEWS Thursday 20 DECEMBER 2012

PAGE 25


places and FACES

Xstrata’s Wandoan Coal

Aaron Davey, Sandy Jensen and Robert Hosking

Rick Mathews, Malcom Fraser and Ian Baker

Xstrata Coal communication and stakeholder relations officer Laura Cicchiello with Wandoan State School principal Bryan Power and wife Marg Power.

Mardi Sanes, Lindsay Moffat and Richard Moffat.

Ann Shannon and Gaylene Stanford

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PAGE 26

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Surat Basin NEWS Thursday 20 DECEMBER 2012


places and FACES

Project Christmas party

Andrew McQuade and Anthony Corcoran from the Queensland Police Service

Aaron Klass, Kyle Pearce and Jaedyn Harth. Kaylene Clarris and Sandra Gascombe

Ray Mortimer with Joy and Ian Baker

Bob Williams, Lachie Postel, Alan Postel and Graham O'Mara

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Joy Byrnes - Principal & Sales 0428 223 380 joy.byrnes@raywhite.com Kerri Collins - Sales & Marketing 0428 153 720 kerri.collins@raywhite.com Desley Oates - Finance/Office Manager Jessica Stansbie - Senior Property Manager Sarah Hancock - Property Manager Maree Mitchell - Reception Sam Schefe - Real Estate Trainee

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PAGE 27


Lockyer enjoys new Origin challenge in CSG industry hinchilla was buzzing with excitement when rumours surfaced Darren Lockyer was in town this month. Origin confirmed Lockyer was visiting a number of Origin's work sites in the Surat Basin, and has joined the team to play an important role in the delivery of a new internal safety campaign called 'Every Day is Game Day'. 'Every Day is Game Day' challenges employees and

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contractors working on the Australia Pacific LNG project to approach their work like high performing sporting teams approach game day with the same intensity and preparation. As a safety partner, Darren is sharing his experience and insights as one of Australia's greatest sportsmen to communicate with employees and contractors working across all parts of the CSG to LNG Project. Darren has been taking the 'Every Day is Game Day' safety message to employees

from Origin's local offices and the Talinga operational facility; as well to employees and contractors working on the major Condabri development near Miles. Lockyer said there are a lot of similarities between approaching a game of football and preparing yourself to be safe at work. "I want to share what I've learnt over the years, so that everyone in the team understands the rules that can save your life and ensure you make it home safely," he said. "As well as being involved in this program, I'm

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looking forward to learning more about coal seam gas operations and being involved in future programs that will support local communities across the region." Australia Pacific LNG CEO Page Maxson said Lockyer was a great addition to the project. "Darren is an inspirational leader who brings a level of trust and respect we know will greatly assist in reinforcing safety as the number one priority for everyone involved," Mr Maxson said.

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Darren Lockyer shares his experience and insights as one of Australia's greatest sportsmen

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Surat Basin News Published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street Chinchilla Q4413 Printed by APN Print Toowoomba 50 Industrial Avenue Toowoomba Q4350 2012 General Manager - David Richardson, 12 Mayne Street Chinchilla Q4413, PO Box 138 Chinchilla Q4413, Phone 07 4662 7368

Merry Christmas and a Happy New Year from the team at the Surat Basin News wishing all a safe and relaxing Christmas break

Surat Basin NEWS Thursday 20 DECEMBER 2012


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