Surat Basin NEWS Thursday 28 April 2011
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inside this edition
The Newspaper The Surat Basin News will publish every second 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.
The Vision Surat Basin News is not a necessity. It was born out of a passion for Australia's fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and opportunities.The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin. Surat Basin News will allow local businesses to network and communicate with everyone in the 300 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region's future while profiling the colourful characters that define our communities.
View Online 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
pages 3 -9
The big news for this edition is Linc Energy's diesel dash.We cover CEO Peter Bond's journey to prove the viability of his fuel.The next level of approvals has been reached for many of the projects in the region.A groundbreaking move by Ostwald Bros. has seen them implement a no fly in, fly out policy.
"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.
pages 14-19
Big news continues, with the opening of the Western rail line after closure due to flood repairs.Transfield Services recognise local value with a multi-million takeover of Toowoomba company Easternwell. Santos hand over a cheque for funding of the Roma Airport upgrade as the design is unveiled.
building theBasin
Placesandfaces
pages 20-27 pages 28-32 A big focus on youth and the disadvantaged this edition, with many initiatives underway to increase employment opportunities. Energy Skills Qld and BoysTown see success with their program as the first round of graduates find positions.
Wild Desert get into the flood fundraising effort with a dinner and auction in Roma featuring special guests Wally and Lincoln Lewis.We get an update on the Surat Basin Rail project. QGC open up to our journalists with a site tour, despite heavy protest action, and fill us in on the upcoming Drama at the Gasfields.
advertisers index Black Cat Queensland....................................23 BOC......................................................................4 Boobook............................................................16 Brandon & Associates ..................................28 Budden Contractors ......................................22 Chinchilla Crane Hire....................11, 19 & 25 Chinchilla First National Real Estate ..........29 Chinchilla Fluid Power....................................10 Chesterfield ......................................................26 CFMEU ................................................................3 Colliers International Toowoomba..............28 Construction Skills Queensland ....................6 Cressbrook Accommodation........................24 Dalby First National Real Estate..................26 Dalby Real Estate and Rentals..............1 & 28 Daley Furniture Traders ..................................1 DDM Liquid Waste ........................................30 Dixon Homes ..................................................33 Downlands College ........................................10
Surat Basin NEWS Next Issue will be available at the Surat Basin Energy & Mining Expo June 22-24 Double your profile and build your exposure in the unique Surat Basin Phone Laurell 07 4662 7368 and start building your business PAGE 2
down tobusiness
in theNews
The Team
David Richardson General Manager Laurell Ison Advertising Beth Walker Graphic Design Tegan Plant Editorial
Ergon Energy ..........................................13 & 31 F K Gardner & Sons Pty Ltd ........................11 Fleming's Welding Service..............................26 Fyfe......................................................................33 GW Training Plus Pty Ltd ..............................30 HEQ Services ....................................................5 IOR Petroleum ................................................23 JJ Richards & Sons Pty Ltd ............................24 Liam Shields ......................................................25 Loughlin Crane Hire ......................................10 M & P Services (Qld) Pty Ltd ........................1 Maguire Coaches and Travel ........................21 MI Helicopters ................................................21 Murilla Community Centre ..........................27 Murray Purves Betta Electrical ......................7 Onsite Rental Group......................................18 Pirtek Chinchilla ..............................................30 Ray White Rural Chinchilla ..........................20 Robbie Taylor & Sons Heavy Haulage ..........7
Roma Communications..................................11 Russell Heale Screw Piling ..............................7 Santos ..................................................................7 Savanna Energy Services Corp ....................32 Speciality Services QLD ................................27 Spitwater ..........................................................33 SQIT......................................................................8 Steps Disability Services ......................12 & 22 Surat Basin Developments ............................36 Surat Basin Energy & Mining Expo ..............15 Surat Basin Homes ............................................9 Surat Basin Real Estate ..................................19 The Rental Warehouse ..................................16 Trades and Services ..............................34 & 35 Western Auger Drilling..................................30 Why Not Kates ..............................................14 Wild Desert......................................................17 Work Stuff ........................................................12
12 Mayne Street Chinchilla — Phone 07 4662 7368 — Fax 07 4662 8474 email: advertise@suratbasin.com.au www.issuu.com/suratbasinnews
Our unique position within the major centres of the Surat Basin allow our newspapers to supply relevant and required information to our local communities. These local and parochial newspapers are staffed and driven by passionate locals who have an investment not only in their communities but also the people that reside in them. The Dalby Herald, Northern Downs News, Chinchilla News, Surat Basin News and the Western Star are the premium suppler of both editorial and marketing information for these vibrant communities. To gain a foothold in the Surat Basin talk to the people who will work as hard for your business as you do. Utilise our local knowledge to help you succeed in the Surat Basin Start now phone Laurell or David 4662 7368
Surat Basin NEWS Thursday 28 April 2011
in theNews page 4 page 6 page 7 page 8
Linc Energy Diesel Dash
Origin gains approval
Ostwalds no fly in fly out
Metro Coal seeks approval
Xstrata given conditional green light
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quarry which Xstrata has under a development application, has had dealings not only with Xstrata but with several members of the resource industry. A member of Xstrata's Community Reference Group, Mr Stiller said Xstrata had met with most of the affected landholders, who had raised several issues to the company. "The industry as a whole is not approaching rural people properly, their attitude is that we are just in the road of their resource," he said. "They've got to talk with the affected landholders and work with them. "The Wandoan Coal mining lease application covers an area of 32,000ha, however not all this would be utilised for mining and associated infrastructure. “Mining would be an open-cut operation, and infrastructure would include a coal handling and preparation plant, conveyors, haul roads, wash plants and workshops”. The mine would have the capacity to produce approximately 30 million tonnes of run-of-mine coal per year in its first stage, and an additional potential to expand to 100 million tonnes should some of Xstrata's other mining exploration tenures be developed. The proposed mine has a lifespan of more than 30 years, providing approximately 1300 jobs during construction and 844 jobs once the site is operational of which approximately 754 will be permanent operational employees.
T H E A P P ROVA L A L L OW S X S T R ATA C OA L TO C O N T I N U E TO T H E N E X T S TAG E O F I T S M I N I N G A P P L I C AT I O N .
Quick facts The government's conditional approval requires Xstrata to submit a Biodiversity Offset Strategy to the Queensland Department of Environment and Resource Management, and the Australian Department of Sustainability, Environment, Water, Population and Communities for approval prior to the commencement of any mining operations. Taking into consideration the size, location, ecological integrity, protection status, local/regional significance and connectivity of regional ecosystems to be cleared, the following minimum offset ratios have been recommended: • Zero offsets for 'least concern' regional ecosystems (Vegetation Management (VM) Act 1999 (Qld) status) or 'no concern at present' regional ecosystems (Biodiversity status) • 1:2 offsets for 'of concern' regional ecosystems (VM Act status and/or Biodiversity status) • 1:3 offsets for ‘endangered' regional ecosystems (VM Act status and/or Biodiversity status).
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Xstrata's Wandoan Coal project received Federal Government approval conditional to their satisfaction of the implementation of biodiversity measures in March. The approval allows Xstrata Coal to continue to the next stage of its mining application. The Wandoan project is dependent on the proposed Surat Basin Rail project for transportation of its coal to domestic and international customers. Surat Basin Rail has recently experienced delays due to additional requirements being put forward by the government. The Wandoan Coal Project was temporarily cancelled last year with Xstrata citing the affects of the proposed mining super tax as the death knell for the mine. However, when asked about the effect the Federal Governments Carbon Tax would have on the proposed operation, Xstrata Coal communications manager James Rickards said it was too early to speculate on its potential impacts to existing operations or the development of projects such as the Wandoan Coal Project. “Xstrata Coal takes its responsibility for the management of the environment very seriously and operate to legislative standards,“ he said. The government's conditional approval requires Xstrata to submit a biodiversity offset strategy to the Department of Environment and Resource Management, and the Federal Department of Sustainability, Environment,Water, Population and Communities for approval prior to the commencement of any mining operations. "Our EIS and supplementary EIS documents have outlined the management strategies we will be establishing throughout construction and operation," Mr Richards said. It hasn't been all clear sailing for Xstrata with the Friends of the Earth launching a legal objection to the mine based on its carbon emissions stated in Xstrata's EIS in February.This will be subject to a hearing in the Land Court in late April. Alongside this the mine's affect on the land and discontent among landholders remains a concern. Mr Rickards said Xstrata Coal Queensland and its joint venture partners have reached mutually-agreeable compensation and purchase agreements with 90 per cent of landholders within the mining lease application areas for the project. “Throughout the long negotiation period the company has negotiated honestly and in good faith, and the agreements entered into have been tailored to the needs of individual landholders and as such, include conditions such as lease - back arrangements and compensation for businesses affected by the agreements, the resource industry as a whole has been under scrutiny for its methods of dealing with affected stakeholders,” he said. Wandoan landowner Neville Stiller, whose property lies next to a
in the NEWS
Diesel dash drives UCG dream to reality As Linc Energy's CEO Peter Bond filled his car with synthetic diesel, his excitement and confidence at what could be a world first breakthrough in the production of fuel was clear. Mr Bond left Chinchilla on March 3, ready to travel nearly 6000km to showcase his company's product to the world, as an alternative to current fuel supplies, in Linc Energy's Diesel Dash. Local residents and shareholders watched as Mr Bond set off on his journey from Linc's Chinchilla facility, first stop Brisbane. From Brisbane the vehicle cruised on to Sydney, stopped in Canberra for a meeting with the Federal Resources Minister Martin Ferguson, before heading to Adelaide on its way across the Nullarbor to finish in Perth,Western Australia 10 days later. Mr Bond stopped off in various capital cities for a series
of planned media and shareholder events and nearly 600 shareholders and stakeholders were engaged at nine events in six different locations along the route. BY Tegan Plant
editorial @suratbasin.com.au
Mr Bond completed the journey driving on ultra clean diesel fuel created from Linc's own underground coal gasification (UCG) and Gas to Liquids (GTL) technologies and received quite a bit of media attention along the way. "The car used was a standard VW Polo sedan straight off
the showroom floor and not a single modification or adjustment was made," the Linc Energy CEO said. "Each morning the crew simply checked the oil and water and filled it up with Linc Energy diesel for the day's journey," Mr Bond said. Elated at the success of his journey and what it means not only for Linc but for the UCG industry as a whole, Mr Bond believes he has done what he set out to accomplish with the journey. "I have now proven to the world that this process can produce cleaner, more reliable and more efficient fuel than conventional diesel and that is suitable for commercialisation," he said.
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Surat Basin NEWS Thursday 28 April 2011
in the NEWS
"We have gasified our own coal through our unique Linc Energy UCG process and fed it through our Fisher Tropsch facility to create synthetic crude oil or syncrude, which was then refined into synthetic diesel, and that is what we used," the Linc Energy CEO said. Synthetic diesel produced from the Fischer-Tropsch process has superior emissions properties compared with conventional diesel.The production process involves a high degree of contaminant removal, so the final product contains almost no sulphur or complex aromatic hydrocarbons that, in conventional diesel, are the main contributors to air pollution.
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6180 square kilometres within the Cooper Basin. Earlier this year Linc Energy announced a $9 million oil and gas seismic and drilling program in the Arckaringa Basin and subsequently announced a full 10 well program in the Basin, expanding the original plan by a further 6 wells, which will take the 10 well oil drilling program in the Basin to an approximate $22 million program. Mr Bond said that Linc Energy's ability to produce diesel and jet fuel from coal synthesis gas or natural gas is quickly becoming one of their key assets for the future. "One of our next steps is to take the syncrude that we produce and convert it into jet fuel and maybe I'll be flying
"As we continue to use more energy, we need to master new and more efficient ways of accessing it. UCG to GTL is one technology process that can make a meaningful difference to improve the access to longer term, affordable energy sources,"
"It's like putting a premium diesel fuel in your car in terms of clean burning and environmental performance," the Linc Energy CEO said. Linc Energy plans to combine its UCG and GTL technologies commercially at sites in Australia and around the world as it realises its vision of becoming the world's leader in providing cleaner synthetic diesel and jet fuels from stranded coal resources. "We live in a world that relies heavily on coal, oil and gas for our industries and transportation needs," Mr Bond said. "As we continue to use more energy, we need to master new and more efficient ways of accessing it. UCG to GTL is one technology process that can make a meaningful difference to improve the access to longer term, affordable energy sources," he said. "The governments of Australia need to appreciate that combined UCG and GTL technologies can and will make a difference to the economy and our communities by providing cheaper, alternative energy solutions while also creating energy security," Mr Bond said. "Our Queensland Demonstration Facility is the only place in the world where this unique and remarkable process has been achieved," Mr Bond said. Government confidence in Linc Energy's ventures appears to be increasing, with the announcement on Tuesday 12 April of Linc's success in winning two more oil and gas exploration licences in South Australia, giving them access to an additional
across Australia soon on Linc Energy's jet fuel," he said. "This proves that what we have been saying is not just possible, it's a reality and we are ready to take it to the next commercial step." UCG-produced gas can also be used as a feedstock to generate power or chemical fertilizers, also resulting in reduced greenhouse gas emissions. Chinchilla resident Steve Kurtz attended the launch at Linc Energy's Chinchilla site and viewed some of the journey on Linc Energy's website. Mr Kurtz said Linc Energy's activities were good for the community both now and in the future. "The venture seems promising and is definitely something I'll be following in the future," Mr Kurtz said. Miles resident Anne Croft also attended the event and said it was great to be involved with such a progressive company. "Not only are Linc creating history here in Chinchilla with their own fuel produced on site, but they are progressing their business all over the world," Mrs Croft said. Mrs Croft and husband Greg followed Peter Bond's journey through their website, and said the footage and information had been very easy to follow. "We've thoroughly enjoyed the achievement and seeing Linc's hard work and research come to fruition".
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Surat Basin NEWS Thursday 28 April 2011
PAGE 5
in the NEWS
Joint venture gains Federal environmental approval
Origin Energy and ConocoPhillip's joint venture has at long last been given the official go ahead. Australia Pacific LNG gained Federal environmental approval for its coal seam gas to liquefied natural gas project on February 22. The project involves the development of coal seam gas resources in the Surat and Bowen Basins, building a 450km transmission pipeline, and construction of a multi-train LNG facility on Curtis Island, near Gladstone. Australia Pacific LNG project director Page Maxson
welcomed the Government's decision. "Approval is conditional on a large number of environmental strategies and ongoing monitoring and reporting requirements being put in place," he said. "The conditions outlined in today's approval complement those contained in the Queensland Coordinator-General's report and reinforce the commitments made in our EIS. "Australia Pacific LNG will pursue high
environmental, community consultation and development standards not only during the construction period but also throughout the ongoing operational life of this exciting project." State environmental approval was given to the project on November 9 by coordinator-general Graeme Newton after an extensive consultation process including meetings with more than 6000 stakeholders during an 18 month period.
The Coal Seam Gas/LiqueďŹ ed Natural Gas industry is developing rapidly in our state. Construction Skills Queensland already has a team in place to help local employers, career seekers, apprentices, trainees and workers ďŹ nd out as much as possible about the opportunities that will be created and the skills that will be needed at the construction phase of this exciting new industry.
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Surat Basin NEWS Thursday 28 April 2011
11/04/11 5:07 PM
in the NEWS
Time for comment is now Wandoan is fast becoming a centre for coal projects, with MetroCoal commencing the statutor y approval process for their two proposed coal mining projects in the area. The Bundi and Norwood coal mine projects are located south-west of Xstrata's recently approved coal mine. MetroCoal CEO Mike O'Brien said it was expected the Draft Terms of Reference would be finalised within the first half of the year, which would then allow the Environmental Impact Study to commence. He said this part of the process may take several years, and the production timeline would be dependent on the information gained from these investigations.
Mr O'Brien said that explorations of the area would be conducted along with the information gathering for the Draft Terms of Reference. "We want to start the process early to allow communication with key stakeholders," Mr O'Brien said. "The Draft Terms of Reference will be an investigation into what topics the EIS will be required to cover." "People are invited to review and comment on the Terms of Reference, which are
available on the MetroCoal website or the DERM website," he said. At the moment MetroCoals' exploration has revealed a single target seam of typical Surat Basin thermal coal, commencing at a depth of 100m. However Mr O'Brien said other seams are evident and will require further investigation. If approved, the underground mine site will consist of declines into the coal seam, as well as coal handling and stockpiling facilities. The coal will be exported internationally,
with a target of 5 million sale tonnes per annum (washed coal), or 6 million production tonnes per year (unwashed). Copies of the Draft Terms of Reference also available at the Department of Environment and Resource Management office Brisbane, the Miles Public Library, Department of Environment and Resource Management office Toowoomba,Wandoan Public Library, Roma Public Library, and MetroCoal's Brisbane office.The comment period for the Terms of Reference closes April 29.
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PAGE 7
in the NEWS
No Flies on Ostwald Bros Dalby based construction company Ostwald Bros has taken on the fly-in, fly-out mining mentality head on. The company is encouraging its employees to move to regional areas by promoting the benefits of rural life. Ostwald Bros chief executive officer Brendan Ostwald said he wanted to make sure local communities benefited from the mining boom. "You hear a lot of stories about communities missing out on opportunities to improve facilities because workers live just outside the towns and the workers themselves and their families can suffer from dislocation," he said. "We believe the company and the community function better if workers are able to go home to their families at night so we maintain a policy of supporting regional communities and reducing the numbers of (fly-in, fly-out) workers needed for projects." Chinchilla Community, Commerce and Industry president Wally Gleeson said
encouraging people to move to local communities was vital. "The long term project officers need to be based locally," he said. "The CCCI can understand that some work currently is temporary, but the big companies need to be looking at local employment services." Mr Gleeson said with so many projects ongoing at the moment, workers based out of local towns were ideally situated to move between companies. "People could be working for Thiess this year, then Origin next year and QGC the year after. "There's no need for these three companies to be flying people in and out when they could be encouraging people to live and work in local towns." Ostwald Bros has also begun encouraging
Ostwald Bros trainer Rex Davis (right), pictured with plant operator Todd Lovell, performs routine assessments at an Ostwald Bros project site.
local participation in the industry by training locals in order to remove industry's reliance on flown in workers. "Dalby has good state and private schools with strong industry links and we're working with them to facilitate job pathways for young people," Mr Ostwald said. "Unfortunately it isn't always possible for us to source our employees locally and not all
workers are able to relocate to regional areas, especially with short-term projects. "To address this problem we operate our own accommodation solutions and within those environments we work to create a sense of belonging," Mr Ostwald said. Ostwald Bros have also recently launched a major recruitment drive to encourage people from the cities to join their team in rural areas.
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Surat Basin NEWS Thursday 28 April 2011
Southern Queensland Institute of TAFE
in the NEWS
KOGAN CREEK shines with solar THE KOGAN CREEK POWER STATION'S massive Solar Boost project has been officially confirmed. BY Graham Osborne editorial @suratbasin.com.au
Prime Minister Julia Gillard and Queensland Energy Minister Stephen Robertson visited Kogan Creek to confirm funding to build the solar energy system. The Kogan Creek Solar Boost project costs $104.7 million and will be the largest integration of solar technology with a coal fired power station in the world. The Power Station will become home to a 44 megawatt solar thermal addition which will be the largest solar project in the southern hemisphere. Ms Gillard said the project was one of the greatest investments in solar technology the world has ever seen. "In the cleaner energy future I want for Australia this will be the norm," she said. "It is making our planet a cleaner place for our children and grandchildren for the future.
"It is a fine example of what can be done as we move to a clean energy future." Mr Robertson said he's immensely proud that the State government is able to bring this technology back to Australia. "It will go a long way to help us reach our target of 20 per cent renewable energy by 2020," he said. "What I like about this project is that it's the most cost effective large scale energy project that I've seen to date. "We are currently now generating 394 megawatts of power throughout the State and our target for the year is 500 megawatts. "That means there has been a 57 per cent increase in solar energy over the last 12 months." The solar power mirrors being built at Kogan Creek will cover 30 hectares of land directly behind the Kogan Creek Power Station. Areva Solar CEO William Gallo said the mirrors track the sun and focus the suns energy on the receivers used to
Queensland Minister for Energy and Water Utilities Stephen Robertson with Julia Gillard at the Kogan Creek Power Station.
produce energy. "This project uses Areva's technology but the construction of this technology will be on site," he said. Areva project manager Phillip Cotton said it will be a great thing for Chinchilla and the region. "To provide renewable energy from the sun is a great thing," he said. CS Energy CEO David Brown said Kogan Creek is amongst the most energy efficient power stations in Australia. "We will be a world leader in integrating solar power with coal," he said. "It's a world first and the eyes of the world will be upon us."
Ms Gillard also visited Origin's Darling Downs Power Station just outside of Kogan on Tuesday, April 5. The Prime Minister re-emphasised the government's commitment to the new carbon pricing scheme during the visit. "When we price carbon, that price will be paid by the thousand companies in Australia that are the biggest generators of carbon pollution," Ms Gillard said. "The way power is generated in this power station is different today than it was in the past, it's a cleaner way of generating power."When we price carbon around the country, we will be moving to a cleaner energy future."
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PAGE 9
in the NEWS
State GOC's to merge The Queensland State Government has announced that Tarong Energy, CS Energy and Stanwell Corporation will be combined into two companies by July.
The three government owned electricity generators will see their assets merged into one of two companies currently dubbed 'GenCo 1' and 'GenCo 2'. The process will see Tarong Energy's Glen Wilga Surat Basin coal asset merged with CS Energy's Kogan Creek power station. State finance minister Rachel Nolan said the changes would maximize the economic life of Queensland's energy assets. "The changes announced today to the allocation of Queensland's electricity generation corporations strengthen these entities for the future," she said. "The restructure will keep the generators in public ownership, and allow them to meet the challenges of both a competitive national electricity market; and to transition in a future where climate change must be addressed." Ms Nolan said the proposed encompassed a number of changes to the structure of the government's energy assests. "The restructure will be achieved by the reallocation of assets to the existing CS Energy and Stanwell corporate entities, using the provisions of Section 161 of the Government Owned Corporations Act," she said. "After feedback from the consultation process, the Bligh Government has altered the draft generator allocations to place the small hydro power stations and Mackay Gas Turbine within the Stanwell-Tarong portfolio. "We have also decided to combine the ownership of the Glen Wilga coal resource in the Surat Basin, currently held by Tarong Energy, with the adjacent Kogan coal mine which supplies fuel to the Kogan Creek Power Station." The restructure will be finalised on July 1.
New Hope takes stake in Surat Basin Brookfield based mining company New Hope concluded the takeover of Northern Energy in early March 2011 currently holding 80.8 percent of NE's shares. Northern Energy is involved in exploration and development of the Elimatta Project 30 kilometers west of Wandoan. New Hope is a medium sized coal mining company that is Australian owned and listed on the Australian stock exchange. New Hope chief financial officer Shane Stephan said New Hope is a very long established coal company. "The company has been operating since 1952 and exports thermal coal into Asia and domestically," he said. "We employ about 550 people and the headquarters are in Brookfield near Ipswich." Mr Stephan said New Hope
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"New hope has a significant balance sheet and seeks to grow," he said. The Elimatta Project completed bankable feasibility in 2010 and their Environmental Impact Statement is expected to be concluded later this year. Mr Stephan said the first shipments of coal were scheduled for mid 2013 but it is more likely to be 2015. "The timing of the project is linked to the Surat Basin Rail project and Wiggin Island Coal Export Terminal in Gladstone," he said.
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QGC fined QGC has been hit with a nearly $20,000 fine for unapproved vegetation clearing in the construction of the pipeline from the Surat Basin to Gladstone. The Federal Government issued three penalty infringement notices to QGC totally $19,800 worth of fines. Federal department of sustainability, environment, water, population and communities spokesperson Rosie Webb said up to six kilometres of vegetation was cleared without the appropriate permit. "QGC's failure to have these plans approved by the federal government and in place prior to commencement of the clearing of vegetation contravened conditions attached to the approval granted in October 2010," she said. "Matters of national environmental significance are unlikely to have been significantly impacted by the vegetation clearance in this case." The fine comes only weeks after protesters launched legal action against QGC stating the company had cleared more land than had been agreed upon in landholder agreements in the 16 kms of pipeline to be built north of Tara. A QGC spokesperson said the company had been the ones to advise the department on the breaches initially. "QGC in fact advised the Federal Government of the breaches. It thanks the Department for acknowledging QGC's cooperative attitude to dealing with the situation," she said. "(The fines) relate to vegetation clearing for its pipeline which, when completed, will transport gas from west of Dalby to Gladstone."
Xstrata cuddle up to wombats The Department of Environment and Resource Management (DERM) and Xstrata Coal held a presentation at Yarran Downs to celebrate the success of the second Northern hairy-nosed wombat colony. By Saira Carr Last month Kate Jones, Minister for Environment and Resource Management announced that one of the world's rarest mammals was spotted with a baby in her pouch at a Nature refuge north of St George on the edge of the Balonne Shire and Maranoa Regional Council. Ms Jones said the first group of Northern hairy-nosed wombats was re-located to the Richard Underwood Nature Refuge in July 2009, amid concerns having only the one colony at Epping Forest Park posed huge risk of extinction if there was a fire or flood. "The mother is regularly seen interacting with one of the males, but DERM researchers won't know who the father is until the baby is fending for itself and genetic testing can be done" she said. During the celebration on Wednesday, April 13 Terry Wall the Associate Director General of DERM announced the sighting of a second baby in a pouch at the Richard Underwood Nature Refuge where the wombats live. Infra red cameras are used throughout the enclosure and Tim Moore, a Communications
Officer with DERM, hopes that through these cameras there will be a world first and they will capture the babies' first steps outside of the pouch. The cameras have allowed them to see the first baby in the mother’s pouch, which they estimate is 5 months old and predict to leave the pouch in August. Mr Moore said the Northern hairy-nosed wombat is rarer than a panda or the Sumatran tiger because there were only 138 known in Queensland but with these two babies it will rise to 140. According to the wombat information centre the Northern hairy-nosed wombat is the rarest Australian marsupial, and probably the world's rarest large mammal. A few years ago the last remaining colony of northern hairy-nosed wombats were found within the remote Epping Forest National Park in central Queensland which was managed by DERM for over 25 years. The success of this small colony prompted them to seek out another suitable location for a second Northern
hairy-nosed wombat colony. Yarran Downs, a cattle property owned by the Underwood family was chosen as the location to resettle the wombats after a twoyear search to find suitable soils and food within Queensland. "Location, location, location, even when you're a wombat" Reinhold Schmidt, the Chief operating officer of Xstrata said. Even though Yarran Downs is a cattle property it is heavily wooded and the majority of the trees have never been cut down. Mr Moore said the Underwood's had the insight to leave all the vegetation which proved crucial in their decision to resettle the wombats there. Ms Jones said that the birth of these babies means the hopes that the wombats would mate and the population would start to grow at Yarran Downs are coming true. Corporate partner Xstrata has provided $3 million over the past three years to help DERM set up the new site and have announced their continued support for the next two years.
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PAGE 11
opinions Standing up Howard Hobbs, MP
SBNEWS 12 Mayne Street Chinchilla, QLD 4413 PO Box 138, Chinchilla, 4413 Phone: 4662 7368
Resource expansion Michael Roche, QRC
COMMENT Anna Bligh Premier of Queensland
Editorial
This unique region continues to grow through the development of our natural resources, bringing with it the question of benefits for our communities. Knowing that our towns can now offer jobs as well as their exceptional lifestyles is a plus for future school leavers and our communities no longer having to watch the annual migration of our youth.The opportunity to learn and utilise new skills will attract more people to our regions. Coming on the back of the two LNG project announcement the local rental market is already feeling the strain which means that there are more workers in our midst.With the extra workers it is unfortunate that this is not extending to our local social and sporting clubs. In a rural community be it sport or service clubs, rural towns have lead the way when it comes to community involvement, and this will be one of the new challenges that is faced in the developing Surat Basin.To remain vibrant and exceptional communities the involvement of all the residents are required, be they from local business, local towns, new business or resource workers and companies.To build for the future and ensure that these towns retain their character and appeal it is hoped that our clubs will be supported for the betterment of all the residents. With Roma now facing the threat of floodwater, the thoughts of the region are with them, and as with most rural people this will be just another of life's challenges that will be overcome.
Ray Brown, Mayor
Bruce Scott, Federal Member Maranoa
Former AgForce President John Cotter knows the challenges confronting Regional Queensland and has spent a large part of his working life striving for results for the bush.
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Now he is putting that practical experience to good use in a new role of great importance to Surat Basin residents. He heads up a group to advise the Government on issues relating to the coal seam gas industry. The Surat Basin CSG Engagement Committee includes representatives from landholder, farm and community groups, gas companies, the State Government, and Councils. Each group has a different perspective but they all agree on one thing: they want to ensure the CSG industry in the Surat Basin is well managed. As they sit face-to-face across the table it's Mr Cotter's job, as chair, to drive the discussion towards solutions. The Committee's first meeting, in Dalby in early April, was productive with people able to gain a better understanding of the differing points of view. Mr Cotter summed it up by saying the Committee
had "hit the ground running". Committee members agreed they needed to be strongly independent and transparent and they identified water as a top priority.
Phil Dash, Deputy Coordinator-General; Matthew Paull, Queensland Director Australian Petroleum Production and Exploration Association (APPEA); and John Cotter, Chairman Surat Basin CSG Engagement Committee, working towards a positive solution for relations between the Coal Seam Gas and Agricultural industries.
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group to ensure strong communication with the public about water issues and to review available groundwater science. A second group will explore opportunities for landholders to work in partnership with gas companies on issues such as site design and security. In other news, the proposed criteria for strategic cropping land have been released ahead of legislation to be introduced into Parliament later this year. Finally, new legislation banning the addition of BTEX chemicals to the CSG extraction process is in place, as are mandatory requirements to report chemicals used in hydraulic fracturing to landholders. These initiatives deliver on my Government's commitment to strengthen protection for landholders and protect our precious natural environment and water resources.
Surat Basin NEWS Thursday 28 April 2011
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opinions Resource expansion won't be at expense of prime land
Michael Roche says
A potential 10-fold increase in economic value generated by the Darling Downs region over the next decade will not occur at the expense of either the environment or prime agricultural land.
COMMENT Michael Roche Chief Executive Queensland Resources Council
The Queensland Resources Council and its member companies are actively seeking better communication and understanding between resource companies and regional communities. The number one priority for all resource proponents must be to earn the trust of the communities in which they propose to operate.Without community support, resource developers will see the sum of all their fears in expensive project rejections from
governments. There is more than $60 billion in new capital expenditure proposed for the Darling Downs region over the next five years, with the largest proportion slated for gas projects ultimately shared between upstream production in the Surat and Bowen Basins and downstream liquefaction activities at Gladstone. By 2020, we're forecasting the annual value of resource production on the Downs and the associated downstream processing at Gladstone to grow from $2.5 billion today to in excess of $26 billion. The upstream activities of these operations will need considerable goods and services, and the companies are focused on sourcing these as locally as they can. 'The QRC anticipates substantial additional employment, population growth and wealth
creation for the Downs from these capital investments. While some people continued to promote apocalyptic visions of Queensland's transformation into a giant hole in the ground, the reality is that minerals and energy operations physically impact just 0.09 percent of the state's land mass. 'That compares with 2.1 percent of the state that is currently used for cropping and 4.5 percent held in conservation reserves. The resource sector's land disturbance on the Downs is not much different from the state average. We estimate that the coal miners, the coal and gas-fired electricity generators and the oil and gas operators on the Downs currently account for about 0.1 percent of the Darling Downs land area. If all the oil and gas, electricity generation and coal projects that are currently moving through the stringent regulatory approvals processes proceed, when we combine the footprint of planned and existing projects, the resource sector's land disturbance footprint is set to increase to just 0.4 percent of the Darling Down's land mass by 2020. Such land disturbance calculations are very important and critical to informed discussion over food security. I'd urge the agricultural sector in the Darling Downs sector to think again about using food security as an argument against resources development in the region. As an argument, it just doesn't stack up. Research we've just completed and published
in our latest State of the Sector report, which is available on our website, shows that even under the most optimistic assumptions concerning yield rates and land usability, the resource sector's land disturbance footprint in the Darling Downs will be minimal and is highly unlikely to have a material impact on domestic or global food security. Indeed, there are many other more critical issues that need to be addressed on a domestic and global scale to address the global food supply and demand imbalance. These include sustainable population policies, falling productivity in the agricultural sector, the push for biofuels which is quarantining vast sums of land from human food production, water availability and the possibility of more frequent and severe droughts. On a related issue, my recent farm tour of the Dalby-Chinchilla region reinforced with me the mess that could result if negotiations over the state government's Strategic Cropping Land (SCL) policy framework strayed from the central task of identifying the state's prime cropping land. The government's so-called trigger maps cover more than four percent of the state, twice as much as the land area currently used for cropping.The maps also include existing mines and by our calculation, around $22 billion worth of new projects, where companies have spent tens even hundreds of millions of dollars in steering them towards fruition. If the policy intent is to dedicate the 'best of
Surat Basin NEWS Thursday 28 April 2011
the best' cropping land to that long-term role, it's very clear to me that places like Haystack Road and Jimbour Plain should be at the top of the list. Similarly, the pit at the Gregory-Crinum coal mine near Emerald is not the 'best of the best' - never was - never will be. I am alarmed at the increasingly cynical exploitation of the public's misunderstanding about the roles of resource exploration and resource development. However, I do not defend the indefensible. Some of the companies represented by the QRC and many more we don't represent have made mistakes, and in the worst examples have taken far too long to remedy them. But, it is easy for critics to portray resource companies in a cartoon sense as 'greedy robber-barons' who are above the law.The reality is that the public interest in owning the resources below the ground invites the state to reach right in and regulate almost every aspect of an operation.The resources sector is the most highly regulated industry in Queensland. I acknowledge though that QRC members could do a better job of promoting their environmental initiatives and innovation in not just meeting government requirements, but often going the extra mile. Our goal must be to do a much better job of explaining our industries, so that Queensland's two great primary industries can co-exist as good neighbours, as they already do in many areas of Queensland.
PAGE 13
opinions
Development putting pressure on roads Bruce Scott says
COMMENT Bruce Scott MP Federal Member for Maranoa
It is imperative that we begin strategically planning for the road network to accommodate the increasing volume of heavy traffic travelling through the region. The recent flooding in the region highlighted the need to develop additional transport corridors. Over Christmas and into the New Year, communities along the Warrego Highway were isolated for a number of weeks as roads were cut. Another link through the region would not only provide alternative access to communities, but would also take some heavy vehicle traffic off the Warrego Highway. Work is currently underway to upgrade the highway between Mitchell and Roma for Type 2 road trains and the next challenge will be to develop the same capacity for these trucks to travel to and from Dalby.The Condamine Highway was once the preferred route for heavy
Standing up for our regions A DAY I S A L O N G T I M E I N P O L I T I C S A N D T H I S W E E K H A S H A D A F E W O F T H O S E DAY S . COMMENT Howard Hobbs MP Member for Warrego Shadow Minister for Local Government and ATSI Partnerships
Campbell Newman is now the leader with my full support and a new Shadow Cabinet has been announced. I have strongly represented your views in the Shadow Cabinet and will continue to do the job you have voted me in to do - represent you, the voters. I make no apology for standing up and ensuring your voice has been
heard and will continue to be heard in the future. Being inside Shadow Cabinet or outside, will not stop me for standing up for my Electorate of Warrego or the Regions on the issues that are important to us. There is no shortage of issues after years of Labor neglect, and I want your concerns heard at every level. Under successive Labor Governments our roads are in a deplorable state, our taxes up, our cost of living is rising, our health and education services need better support, our communities need flood mitigation works, and our resources royalty wealth is not being
returned to our communities. There is a lack of Shadow Cabinet representation in the rural and regional areas; and that must be rectified. From Moggill to the Northern Territory border there is no Shadow Cabinet representative. An area larger than the State of New South Wales has no director on the board in Shadow Cabinet. I want to make it clear - we all want Campbell Newman to win Government in Queensland and defeat Labor and Anna Bligh the only way this can happen is with city and country together in an equal partnership and that is what I will continue to pursue.
Howard Hobbs says
The development of the Surat Basin is putting significant pressure on our roads.
vehicles travelling between Roma and Dalby, and in my opinion, it is the most sensible route. With royalties from the mining sector, a significant upgrade of the Condamine Highway could be undertaken to make it suitable for heavy vehicles. By moving some heavy vehicles to the Condamine, it would increase safety on the Warrego, reduce freight costs for business and provide an additional strategic corridor in Queensland and through to the Northern Territory. This does not mean, however, that we should neglect the Warrego Highway and funding must be allocated to continue upgrading the road east of Roma. We should also be looking at developing plans for Roma and Dalby to become inter-modal freight hubs.These towns are strategically located along the rail lines and also intersect a number of highways vital to the development of the Surat Basin. If we are to increase productivity in the Surat Basin and reduce the cost to business, it is crucial to have an additional heavy vehicle transport corridor between Roma and Dalby.
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opinions
A pressing need to get infrastructure on track in the Western Downs With new developments continuing to proliferate at great pace across the Western Downs, particularly in the Surat Basin corridor, billions-of-dollars of investment in infrastructure is desperately needed by the region to cope with the resources boom. There is still a lot to do in terms of the region's water supply, power supply, transport and road network, for environmental sustainability and community development. The two whirlwind visits to the region by Prime Minister Julia Gillard in less than a fortnight earlier this month, first to tour Origin's Darling Downs Power Station outside Kogan where she also discussed the government's Carbon Tax and the second to the Kogan Creek Power Station near Chinchilla was a major coup for the Western Downs. Both visits gave me an opportunity on behalf of
Ray Brown says
I hope in the near future the Prime Minister will be able to find additional time to be present in our region because the Surat Basin is unquestionably a productive industry to our region and a vital economic artery for the State and Federal Governments. Meanwhile, I am eagerly awaiting the final draft of the Surat Basin Future Directions Statement.This strategic framework will highlight the issues to the State Government including settlement patterns, transport and housing issues, social impacts as well as the economic development potential of our region. It will also look at the land access policy framework around the numerous large developments across the Western Downs and the Surat Basin.Also the workforce development plan will be outlined including the strategic cropping land network, which has been an eagerly awaited policy that many rural landholders are relying on. There will be a policy regarding coal seam gas water management -another key policy the community has been
COMMENT Cr Ray Brown Mayor, Western Downs Regional Council
achieve a sustainable balance between mining and agriculture. It's become paramount that regulations are adhered to by the mining sector in order to protect the region's agricultural sector and also ensure all industries in the region are able to co-exist as well as grow and prosper in the long term. The unprecedented flood events in December and January have not only adversely affected our urban centres but wreaked a devastating impact on the region's rural industries. It also must be acknowledged the impact the floods had on our energy sector, single-handedly bringing the region's coal and coal seam gas operations to an abrupt halt.Amid all the devastation, it was pleasing to see the energy sector avail their staff to assist in the clean up and recovery programs undertaken in our local communities. Making news recently was the ignition for pilot number two for UCG firm Carbon Energy in our region.This project has been highly regulated by the State Government and they have a significant number of staff currently onsite monitoring the
I am pleased to announce Western Downs Regional Council was recently appointed to the State Government's new Ministerial Coal Seam Gas Taskforce. campaigning long and hard to see come to fruition.The Future Directions Statement rests in the hands of the State Government with some formal announcement imminent in early May. I am pleased to announce Western Downs Regional Council was recently appointed to the State Government's new Ministerial Coal Seam Gas Taskforce.This open forum will allow Council to voice concerns our residents have about the industry and energy development. I was fortunate enough to be appointed on this ministerial committee that through Chairman John Cotter will pass on concerns and valuable input to policy driving the coal seam gas industry.This includes everything from beneficial use of the water to additional rules and regulations and compliance measures applied to companies operating in the Surat Basin.The key topics addressed at the first ministerial forum were landholder access issues and the engagement of landholders to be part of the industry. I recently attended an AgForce meeting in Dalby at which major concerns were aired about the coal seam gas industry and the mining sector.The discussions centred on how to
Council to address issues of concern to the Western Downs community. The issues I discussed at length with the Prime Minister were the coal seam gas industry and concerns around water and the protection of prime agricultural land, addressing the growing infrastructure needs, in particular the national highway and an overall transport infrastructure program including both road and rail networks for the region.
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progress of this demonstration plant. I was very pleased to see the State Government enforce additional monitoring regulations on this industry to protect our environment. With growing attention on the renewable energy industry, Western Downs Regional Council has not yet received a formal response back from the solar flagship programs of the Federal Government. Recently, residents across the region had voiced their concerns about a renewable energy project at Coopers Gap in relation to an AGL wind farm.Western Downs Regional Council will closely watch with great interest developments of this project in the coming months. The cracks in our over-burdened infrastructure are hard to ignore.The Western Downs has a bonanza of mineral wealth and the economy is strong. However, my fear is that with the prospect of future resource booms and going into another era of tight expenditure on infrastructure, our region will be left wanting. The bottom line is that for the Western Downs to cope with its burgeoning resource sector, more infrastructure investment by the State and Federal Governments is needed - it's as simple as that!
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PAGE 15
down tobusiness page17 page18 page19 page20
CSG engagement committee meets
Transfield buys Easternwell
Roma airport gains funding
CFMEU opens in Dalby
Flood fund receives boost After Verifact Security's Gary Christison and Dan Crowley drove through rising flood waters around Taroom in early December, the topic of conversation for the rest of their journey back to Brisbane quickly became what they could do for the flooded communities they were passing through.
Then it happened again. After seeing Queensland go through two extreme flooding events, Mr Christison and Mr Crowley knew they had to do something. In a rush to organise an event in ten days,Verifact Security and QGC worked together to gather sponsorship, auction items, arrange guest speakers and most importantly attendees. This culminated in a flood fundraising dinner with guest speakers former Origin and Test great Allan Langer, jockey and comedian Allan Robinson, and MC on the night ex-Wallaby Dan Crowley. Verifact Security Business Development Manager Gary Christison said the event had raised a net amount of $30,000 for the Mayor's Flood Appeal Fund, to be distributed by the Western Downs Regional Council. Mr Christison said QGC had been instrumental in getting their employees and their contractors to purchase tickets for the night. "QGC's field general manager Bruce Coats and access negotiator Mark Hickey really got in and helped," he said. "Morris Corporation from Brisbane, led by CEO Fiona Burkin, did the catering and supplied all the food themselves. "Fiona and 19 of Morris Corporation's senior managers prepared and served all the food themselves. "Chinchilla Cultural Centre manager Dean Jarman supplied the location free of charge, XXXX supplied the beer, and Ross Peoples from Running Bear productions supplied all of the memorabilia for the auction.
"We thank The Ghan for donating the major item in the auction, two gold class tickets on The Ghan's train journey from Adelaide to Darwin. "Ausco Stayover's Bill Karibalis gave free accommodation to the Morris Corporation volunteers and the guest speakers, and Chinchilla News covered our event. Western Downs Regional Council mayor Ray Brown and other councillors were in attendance and supported the event. Mr Christison said they plan to run more fundraising dinners of a similar fashion across the flood affected areas of Queensland, calling the initiative "We are Queensland".
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down to BUSINESS
Premier delivers on stakeholder committee Queensland Premier Anna Bligh delivered on her promise of a Coal Seam Gas stakeholder committee when the Surat Basin CSG Engagement Committee met for the first time in Dalby on Friday March 31. The group, chaired by former AgForce president and beef producer John Cotter, will focus on making its way through the myriad of concerns and issues around the rapid expansion of Queensland's CSG industry. It will aim to ensure the development of the industry, which is worth millions in both employment and royalties to State and Federal Governments, without jeopardising the long term security of agriculture. The closed door meeting involved key players from the major resource companies including Arrow Energy, Origin Energy, Queensland Gas Company and Santos.
The meeting also had local government representation from Maranoa,Toowoomba and Western Downs Regional councils and landholder lobby groups Basin Sustainability Alliance (BSA) and Jimbour Action Group. Agricultural groups AgForce and the Queensland Farmers' Federation also have delegations on the committee as well as representatives from the Departments of Environment and Resource Management and Employment, Economic Development and Innovation. But the Federal Government's absence did not go unnoticed with Western
Downs Regional Council Mayor Ray Brown describing it as "the elephant in the room". "One positive about this meeting was that we had all the main players in the room sitting at the same table for the first time," he said. "The only negatives would be that given this is a State Government driven initiative, the Federal Government is not represented and they are the ones getting the majority of the money so we'd like to see them come on board. "Realistically this committee is about getting results and getting them fast, but it should've been commissioned two and a half years ago, so we'll need to get the results much faster than normal." Mr Cotter said the meeting's preliminary concerns were a major discussion on the impact of the industry on underground aquifers, the Great Artesian Basin and the Murray-Darling Basin. "The discussion in Dalby today was characterised by respect and goodwill from everyone.” he said.We agreed on the need to maintain strong independence and transparency. "We've also agreed that communication with
the community on the water issues needs to be improved on." Two groups were established to develop a communication strategy and report back at the next meeting. Cr Brown's suggestion that landholders be trained in the maintenance and monitoring of CSG wells on their properties was well received with the committee agreeing to investigate it further. The BSA used the meeting as an opportunity for an early launch of its "Blueprint for Sustainable CSG Operations". Which outlines concerns and expectations of rural landholders and regional communities, recommends conditions around managing water, land, salinity and social impacts and proposes the adoption of more rigorous drilling standards to ensure aquifer integrity. "We see this blueprint as a way for us to clearly identify the key issues that BSA is taking to government and the CSG companies on behalf of our members and communities," Ian Hayllor said. The CSG Engagement committee meets in Toowoomba on May 5.
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Toowoomba businessman's success story pays off From its humble beginnings as a locally-owned Toowoomba business, Easternwell have established a clear presence in the Surat Basin resource boom. Nothing demonstrates thismore than a takeover bid worth $575 million. International buyers Transfield Services acquired Easternwell in December with a $540 million cash payment and $35 million in Transfield Services shares. For Transfield, predominantly concerned with operation and maintenance services in the past, the purchase gives them a foothold in the coal seam gas sector in the Surat Basin, and in Western Australia, where Easternwell are a leader in providing well services and well construction. At the time of acquisition, Easternwell operated 65 rigs, with a customer list including high profile corporations such as BHP Billiton, Rio Tinto, Santos and Woodside. The 800 Easternwell employees across Australia have been kept on the books, and CEO Mr Troy Campbell said it would still be business as usual. Mr Campbell, who's father Peter established the business, said he was proud of how far the company had come since it was started. "Transfield Services sees opportunities in the industries that we're in and they're looking at us to access to the growth in the coal seam gas sector west of Toowoomba, but also to our other projects in places like Western Australia," Mr Campbell said. "They see that there's growth and longevity in the Surat Basin," he said. With the growth of local businesses and their activities in the region, improvement of supporting
infrastructure in the region is essential. Toowoomba Chamber of Commerce president Geoff McDonald said an investment of this size was an added incentive for those trying to get the city's airport upgraded, bypass built, and Warrego highway repaired. "This does give weight to the fact that we need these projects funded. "Hopefully the confidence in Easternwell will flow on to help those decisions be made," he said. "2011 has seen the intensity of the spotlight shining on Toowoomba increase. A combination of the natural disaster on January 10 and significant project announcements in the Surat Basin has seen three visits from the Prime Minister, a visit from Federal Minister for Infrastructure and Transport The Hon Anthony Albanese MP, State Cabinet and Shadow Cabinet meetings including deputations at both. “The recent announcement by Boral's $173 million acquisition of Wagners static concrete plants, further highlights the level of interest in the region for investment” Mr McDonald said. Wagners will still remain one of Queensland's largest family owned and operated businesses employing over 700 people and growing. “The Warrego highway including the Toowoomba Bypass coupled with rail and air infrastructure continues to be the top political issue for the state and indeed the nation. Without doubt, the Easternwell sale and the Boral purchase will give greater leverage to the infrastructure argument shared by all regions in the Surat Basin," Mr McDonald said.
Rail OPEN THE WE S TE RN RAI LWAY HAS RE O P E N E D M O N THS AHE AD O F S C HE D U L E . After suffering severe structural damage during the floods the line was successfully opened on March 28, three months ahead of schedule. The closure of the line caused a major impact to the local resource industry with the Cameby Downs coal mine, unable to move coal. Cameby were forced to temporarily lay off most of their staff until operations could recommence. Queensland Resources Council chief executive Michael Roche said the speed of the repairs was a great boost for the industry. "The team led by Queensland Rail deserves enormous credit for their efforts in quickly re-opening a vital transport corridor for coal, grain, livestock and general freight," he said. "Considering that more than 260 individual sites on the Toowoomba Range alone required work, it's an outstanding piece of work by Queensland Rail and contractors Thiess that will contribute significantly to getting the region and the state back on their feet again sooner."
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Funding for Roma airport soars in BY Derek Barry
editorial @suratbasin.com.au
Santos handed over a cheque for $2.5 million on March 15 as it helped Maranoa Council unveil the exciting new design for Roma Airport. The cheque was part of a $4 million Santos commitment to Roma as it also pledged to invest significant funding in community and allied health services and housing support.
building and at 1000 square metres it will be four times bigger than the current facility. Last week the council approved a $2.62 million tender from Brisbane based Woollam Constructions for the terminal work which will include a fully air-conditioned passenger lounge, food and beverage kiosk, threebay check-in counter, wifi access, outdoor seating, car rental checkin and baggage-claim area. Work will begin next month and will take 18 weeks to complete. In preparation, the council has
Santos' Sam Klaas and John Phalen present the $2.5 million cheque to Maranoa Mayor Rob Loughnan.
The winning design of the $2.6m new A.T. Berry airport terminal. Santos Eastern Queensland regional manager Sam Klaas presented Maranoa Mayor Rob Loughnan with the $2.5 million cheque to help fund a new terminal building, 274-space carpark, larger runways and taxiways and a new apron. The council will build the new terminal to the south of the old
closed the old carpark and set up a new one 80 metres north of the current terminal. Traffic will be redirected on Airport Drive to accommodate the worksite but it will be business as usual at the airport during construction. Cr Loughnan said the upgrade was needed to support jobs and
lifestyle opportunities in the region. "The airport is struggling to meet demand and there is a need to increase capacity, extend the runway and modernise facilities for the benefit of users," Cr Loughnan said. "The awarding of the terminal construction tender is the first
step in an exciting big-ticket project which will support industry, community and sustainable economic development. "Congratulations to Santos for this outstanding commitment to a dynamic project which will benefit the entire south-west region."
Mr Klaas said Santos was pleased to work in partnership with the regional council to help the local economy grow and prosper. "As the region continues to experience substantial growth in areas such as mining, gas and tourism, it is natural the airport also expands to accommodate the influx of people," Mr Klaas said. "We are proud to be able to help Maranoa Regional Council get the much-needed upgrade off the ground." Cr Loughnan said the State Government had also committed $4.7 million to the project and he hoped the Federal Government and Origin would also get on board. "The council will continue to work with the Airport Advisory Committee on the project and would be prepared to fund any shortfall in project costs," he said.
The cheque was part of a $4 million Santos commitment to Roma.
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PAGE 19
down to BUSINESS
Glenda Starkey and Josh Wallin enjoying the official festivities.
Alan Puig from Acland, Boyd Webb and Shane Brunker.
Union increases in the Surat Basin BY Debbie Beaven editorial @suratbasin.com.au
The union designed to look after the rights of miners and energy workers is now even more dedicated to ensuring that workers in the Surat Basin region are protected from the effects of the pending mining boom.
The Construction, Forestry, Mining and Energy Union (CFMEU) is one of the most powerful unions in the country, and has now opened an office in Dalby. It is one of five regional offices in Queensland aimed at reassuring its membership that their rights are being protected as well as the rights of the communities in which they live and work. The mining and energy division of the CFMEU set up its office in Dalby last month to remain relevant to its members, while offering a range of support services to its more than 1000 members in this region alone. District Secretary Jim Valery helped to officially open the Dalby office on March 18 in front of about 50 of the union's faithful along with Brian Wise, Central Councillor and District Vice-President Shane Brunker who will be based in Dalby. Mr Valery said that it was important for the Union to have a presence here in Dalby, with the Surat Basin now a major growth market. "We want to be where our members are," Mr Valery said. "It is good for the workers to know they have local support, especially in this industry that is growing so rapidly. "We also want to hold many of these mining companies to account where their social responsibilities are concerned." He said just because the union represented the workers,
Ryan Sproxton from Wilkie Creek and Dave Anderson from Acland.
it also wanted to ensure that the communities in which they lived had adequate services such as health, education, roads and housing. Brian Wise said it was also important to ensure that these companies didn't just come into town, make their profits and leave town.
He said that mining companies must identify the effects they will have and are having on local communities and how they can so lve these problems. "We want to make sure they invest in the communities they are making money from," Mr Wise said. "We also must ensure that our workers' emotional and social needs are considered by the companies. "Many of our members work long shifts and the work is very hard, and sometimes they have very little time for their families, so this is one issue we need to look at very seriously." District vice president of the CFMEU Shane Brunker has relocated to Dalby from Mackay after a 17-year career as an underground miner. "The CFMEU is a very important union that has remained relevant throughout the Howard years and Work Choices," Mr Brunker said. "The Work Choices campaign waged by the liberals had a reverse effect on workers than was planned, and sent people back to the union movement in droves." "I am looking forward to the challenge of working in a new town and in an area that is at the beginning of its introduction to the mining industry," Mr Brunker said. The mining and energy division of the CFMEU had more than 1000 members in the region that had been neglected for many years, but now they have an office in Myall Precinct shopping centre on Drayton Street, Dalby.
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Construction on landmark industrial park begins Progress on the Surat Basin Industrial Park is full steam ahead, with the necessary infrastructure works now ensuring water, power and sewage services are available. Qld Civil has been contracted for construction and is already on site making preparations. Construction is anticipated to take 24 weeks, with clear titles expected by November this year. Prior to the construction phase, there was extensive preparation taking place to ensure the site was ready, as there were no services available. Works to provide essential services cost in excess of $1.5 million, and the anticipated investment in this project is in excess of $200 million dollars. Surat Basin Developments business development manager James Strongman said enquiries for leases had been strong, and ten of the 27 blocks had already been sold 'off the plan'. The estate covers an area of 160 acres, with block sizes ranging from 4,000 square metres to 40,000 square metres. Mr Strongman said owners or tenants of blocks will be able to lodge building applications during the estate's construction phase. This will enable them to start building as soon as titles and settlements are resolved. Plans for the estate commenced when it became clear something was necessary to deal with expanding gas and coal industries in the region. Mr Strongman said for a regional town to grow an industrial presence was vital. "It is almost a prerequisite to enable a range of employment opportunities for local residents and to provide the town's youth with training and apprenticeships," Mr Strongman said. "Traditionally rural towns in Queensland have had a drain on the kids leaving school because of the limited opportunities for employment. "By having a strong industrial base the youth have the option to stay in their home town or at least return to it at some future point he said”. "A strong industrial hub also benefits many of the other businesses in town and helps create wealth in the process. "This assists in providing local business sustainability whilst helping to build a stronger community."
Surat Basin Developments project manager Jack Egan and Surat Basin Developments business development manager James Strongman overlook a wet but successful start to the Surat Basin Industrial Park.
Profile Jim Knudsen
QGC's Senior Vice President Jim Knudsen arrived in Australia six months ago to take over the day-to-day management responsibility for all aspects of the LNG business. An Ohio-born engineer, Jim has worked all over the world and his focus now is on Queensland's gas fields and becoming as accessible as possible to all groups associated with its success. "I have overall accountability for QGC's upstream and midstream operations from well engineering to subsurface development and other parts of the business," Mr Knudsen said. "Over the past six months I have been to the gas fields many times, as well as Gladstone and Chinchilla. "It is these gas reserves and our people, working together with our communities, that is going to drive the future growth of the business." Over the course of his career, Jim has worked in the US, the UK, Dubai, China and now Australia.
He holds a Bachelor of Science in Mechanical Engineering from Louisiana State University and is a graduate of the Executive Development Programme of Darden College at the University of Virginia. He is married, a father of two daughters and a grandfather of two. He brings to Queensland more than 30 years' experience in the oil and gas industry. He formerly worked for ConocoPhillips in Houston, Dubai and China. "I am heartened by news from the Queensland Resources Council that the gas industry, comprising coal seam gas, LNG, LPG and processed natural gas, will contribute $25.2 billion to the Queensland economy in 2019-20," Mr Knudsen said. "It is forecast that within a decade LNG will rank second to black coal as the most valuable resource for Queensland. "Already, QGC has spent more than $17 million in Tara as part of the company's commitment to local content." He said the outlay was on a range of goods and services from earthmoving and construction to accommodation and social services. Last year QGC invested $700 million on goods and services in Australia, with more than 20% outside Brisbane in regional areas including Gladstone, the Western Downs, Rockhampton, Banana Shire and Toowoomba.
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The QMEA and QGC are working hand in hand to break down employment barriers and give students a hands on insight into the CSG industry and spark their interest.
Students fired-up for coal-seam gas careers Students from Chinchilla State High School were among the first school group to gain a practical insight into the coal-seam gas (CSG) industry after touring a gas field operated by natural gas company QGC.
'These field days are a perfect example of a school-industry partnership that is leading the way in coal-seam gas careers awareness. 'Being able to apply knowledge in a practical setting on a working site is an invaluable experience for students who are on the verge of making career decisions,' Mr Atkins said. While year 12 students delved into the science behind CSG, the year nine students were kept busy learning techniques used to test for macroinvertebrates in water. QGC senior vice president Jim Knudsen said Chinchilla was in the heartland of QGC's gas field operations and he hoped the tours would encourage local students to pursue rewarding careers right on their doorstep. 'This industry is going to provide jobs for many years to come and it is our preference to hire locally wherever possible,' Mr Knudsen said. 'We need a skilled workforce for both our domestic coal-seam gas business, which supplies about 20 percent of Queensland's demand, and expansion into liquefied natural gas export. 'This partnership provides an opportunity for students to learn at first-hand about the wide range of career opportunities that the industry has to offer.' QMEA schools Pittsworth State High School and Tara Shire State College also toured QGC's gas field. The QMEA is an initiative of the Queensland Resources Council and Queensland Government and works with 30 state and independent schools throughout Queensland to guide young people into highly rewarding and long-term careers in the resources sector.
The 50 year nine and 12 Queensland Minerals and Energy Academy (QMEA) students were among more than 150 students across Queensland welcomed to QGC's Windibri site recently. For year 12 'Science 21' students, the tour was a practical application of knowledge accumulated during the semester on energy and resources for the future. QMEA Director Roger Atkins said the students gained a hands-on understanding of an industry that will generate significant economic and environmental benefits for Queensland and Australia.
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building the BASIN BY Tegan Plant
editorial @suratbasin.com.au
Energy Skills Queensland have joined forces with BoysTown, in an initiative assisting indigenous and unemployed to get a foothold in the coal seam gas (CSG) drilling employment market. The program aims to train up to 180 indigenous and unemployed workers to be job ready for the Queensland CSG industry. CSG drilling skills program coordinator from BoysTown Jeff Green said the program was aiming at areas which were recognised as having high unemployment. Mr Green said they were running the program in Logan, Ipswich, Bundaberg, Gympie and Roma throughout the year. "We see the training as a way of maximising opportunities for these people," Mr Green said. "The program is a combination of work
preparation training, and industry specific skills training. "A registered training organisation for the mining industry runs nine modules of certified training in two stages over eight weeks," he said. Despite challenges in getting placements for successful graduates due to rain hampering drilling schedules, Mr Green said he felt the initiative was successful. "We've managed to place some graduates already, including four who started with Dynamic Drilling in Chinchilla (Monday April 18) as lease hands on the drilling crew," Mr Green said. He said some graduates had been placed in roles not specific to drilling as well until
drilling activities increased again. Dynamic Drilling Operations Manager Terry Day said the program was brought to his attention by Energy Skills Qld when they were trying to place a group of trainees who had just completed a "Rig Ready" program to get them into the CSG sector. "The major benefits to us were the fact that all of them had already undergone a very extensive training program, were fully ticketed in the majority of the industry requirements and had a mentoring program to assist them with their adjustment to the industry," Mr Day said. "Like a lot of other managers in the drilling industry we commonly see applications
Energy Skills Queensland and BoysTown training for future skills
"The program is a combination of work preparation training, and industry specific skills training. from hopeful employees but sadly in most cases if they have no experience in the drilling industry they are "green to the extreme," he said. "In this particular case we had a choice of potential employees who had already shown their resolve and determination by undertaking nearly three months of training to get themselves "Rig Ready", were clearly focused on their desire to succeed and were head and shoulders above the average applicants." Businesses that are interested in employing a successful graduate can contact Mr Green at BoysTown, or Kim Hetherington, Industry Engagement Consultant - CSG Drilling Skills Program for Energy Skills Queensland on 0418 722 775. Another round of funding may occur based on the success of this program.
John Green, Edwin Rodgers, Samuel Lee and Thomas Evans are eager to get to work with Dynamic Drilling.
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Downs Wash Downs and Vehicle Inspections With flexibility in our service we are available at any time at any place by appointment, and also offer a mobile wash down unit if required.The business provides certified hygiene and wash down inspections to clients to minimise the spread of weeds and seeds which are declared as pests by the Queensland Government. It is estimated that weeds cost the Australian agriculture industry around $4 billion a year. Due to the large costs and impacts pests have on agriculture and the environment, the Queensland Government has introduced legislation to restrict the movement of declared weeds throughout Queensland.These laws place obligations on
Downs Wash Downs and Vehicle Inspections have been operating now in Dalby for two years, providing service to gas, mining and contractor companies in the Surat Basin. everyone to ensure that they limit the spread of weeds and can deliver hefty fines for persons found in breach of the act (Pest and Stock Route Management Act 2002). Downs Wash Downs and Vehicle Inspections team members have collaborated to produce a preliminary plan that will enable safe, reliable outcomes on a daily basis to strengthen the weed washdown process, and produce long-term benefits and relationships with all stake holders. We are seeking pro-active forward thinking companies that have policies and procedures in place and have moved with the times. A company that offers if nothing else a vision for the future and
Surat Basin NEWS Thursday 28 April 2011
a vehicle by which all parties can achieve their goals. With our team of fully certified inspectors we give our customers full commitment as we are a team of professionals, who have a proven track record in this region, who can successfully transform your plan into reality if given the opportunity. Proprietor Mandy Krause commented that with the Government legislation getting more stringent on gas and mining companies, the business is developing rapidly, which is a good thing as it is good to know that these resource companies are trying to do the right thing by land holders and the communities where they engage their business activities.
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Australia Pacific LNG and Sinopec sign binding agreements for LNG supply Australia Pacific LNG Pty Ltd ("Australia Pacific LNG") and China Petroleum & Chemical Corporation ("Sinopec") today signed a Sale and Purchase Agreement for the supply of 4.3 million tonnes per annum of LNG for 20 years1 from Australia Pacific LNG's world-class coal seam gas resources and proposed LNG facility on Curtis Island, Gladstone in Queensland. Australia Pacific LNG and Sinopec International Petroleum Exploration & Production Corporation ("SIPC", a subsidiary 100% owned
by Sinopec Group) also signed a Subscription Agreement for SIPC to subscribe for a 15% interest in Australia Pacific LNG thereby reducing ConocoPhillips' and Origin Energy's ownership interest to 42.5% respectively. These agreements reflect the commercial terms outlined in the Heads of Agreement signed between Australia Pacific LNG and Sinopec on 25 February 2011.The agreements are subject to approvals by the Chinese Government and in Australia, the Foreign Investment Review Board and are conditional on Australia Pacific LNG reaching a final investment decision. Origin Energy Managing Director, Mr Grant King said, "Today marks an important milestone in the development of the Australia Pacific LNG project and represents the largest LNG supply agreement in Australian history by annual volume. At a press conference revealing the agreement, there was much discussion about the implications of the agreement for the industry and its relations with landowners and regional communities.
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Standard portable buildings range from 2.4m x and roof structures. No project is too big or small for the 2.4m through to 12m x 3m, but all units can Onsite Rental Group's portable building All Onsite portable buildings on offer be customised and combined to suit specific solutions team. From single units on one in the Surat Basin region are Steel needs.With the addition of custom-made site to complete large scale complexes Frame and come with a W50 cyclone shelter and access ways, Onsite can and buildings, Onsite provides a full and wind rating, the highest standard transform these portable units into the service industrial portables offer to suit required in Queensland. working centre of any industrial site. any requirements. Your local Onsite team representative Onsite's portables Grant Reilly, solutions are ideal for All Onsite portable buildings on offer in the Surat Basin Onsite's portables use in the mining, industrial and region are Steel Frame and come with a W50 cyclone and manager for northern region, residential construction, wind rating, the highest standard required in Queensland. leads a portables infrastructure, energy, team with events, government, and unrivalled technical Onsite's team offers an unrivalled level of manufacturing industries. All units can be expertise, responsible for providing technical expertise and support, working customised to suit each individual site. specialist advice and support for all The company's extensive range of alongside customers to provide the most your portable needs. portable products includes portable effective solution tailored specifically to Together with Scott Burke, area sales buildings, toilet blocks, containers, requirements for each project, delivering manager for Surat Basin, the team SuperLoos and custom-built buildings. true cost savings. combines Onsite's extensive range of They can be used for a wide range of The team provides portables planning rental products and services with a purposes including preconfigured and layout advice, installation, utility strong local and regional understanding lunchrooms, first aid units, change rooms services such as power and plumbing, to provide superior solutions. or security offices. interconnecting walkways, sun shades
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General Manager Wilkie Creek Blair Jackson and neighbouring farmer Neville Walton inspect the sorghum harvested from the mine's rehabilitated land.
By Jacinta Cummings It was business as usual at Peabody Wilkie Creek Mine on Wednesday, March 4…except for instead of mining coal on Wednesday, general manager Blair Jackson was watching sorghum being harvested. Mining started at the open cut coal mine near Macalister, west of Dalby, in 1994 with current production set at 2.35 million tonnes of thermal coal annually. The 5.6 acres of sorghum harvested was grown on mined land which has been rehabilitated over the last two years at Mr Jackson's initiative after he saw the farmland reclamation results achieved in Peabody's American operations. The rehabilitation site was picked in 2009 after management identified alluvial soils of reasonable quality and depth. Previously the major land use in this area was grazing on improved pastures, with some areas supporting dryland grain cropping.
Mr Jackson modified mining plans to salvage the top three metres of topsoil and subsoil so he could then replace this material on an available final landform to create an area that could be returned to a productive land use of grain cropping. Previous landholder and current mine site neighbour Neville Walton provided advice and suitable equipment for the cropping trial. Mr Walton said despite the crop only returning three quarters of a tonne to the acre, the project is a credit to Mr Jackson's desire for agriculture and the mining industry work alongside each other in the area. "It's important to recognise that Wilkie Creek and in particular, Blair, have made the effort to try and achieve what other companies probably haven't done in terms of rehabilitation in much of the area," Mr Walton said. "They want to operate sustainably and are putting in the hard yards to restore the
land to how they found it." Future Food QLD Co-Chair and local landholder Geoff Hewitt also commended Wilkie Creek. "It sounds like they've (Wilkie Creek) made a pretty fair fist of this, however it is a pretty sound indictment of the Queensland coal industry that this is its been operating in the state for 60 years and all they've got to spruce is a 1.2 hectare site which has produced its first sorghum crop this year," Mr Hewitt said. "Clearly proper rehabilitation is a very novel concept to QLD's coal industry and this is why it has the reputation it does." However, Mr Jackson believes the State Government's "Strategic Cropping Land Policy" being developed to regulate the mine approvals process will help address the issues identified by landholders and environmentalists as it has the potential to restrict the areas available for mining and increase environmental permit conditions. He acknowledges that the rapid expansion
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of the State's resources industry has seen increased exploration activities and development proposals on agricultural lands, leading to increased community opposition, but hopes that the stronger media focus on the sector will encourage companies to be more proactive in restoring mined lands to their former state. "What we've learnt from this reclamation project can now be used as a model for future interaction between open-cut mining and agriculture and serve as a positive contribution to the debate over mining on agricultural land," he said.
"It sounds like they've (Wilkie Creek) made a pretty fair fist of this”.
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Surat Basin HOMES With the high level of activity in Chinchilla and Miles with the recent resource industry approvals and subsequent contract distributions many workers are now arriving to commence their employment. Many of these people are seeking an alternative to mining camps and other short term accommodation. Surat Basin Homes have been liaising with resource companies for approximately two years and from these discussions have designed and constructed the Benchmark.
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The homes also feature six zoned ducted air conditioning (zoned individually to each room), all furniture, all whitegoods and all electrical items (even including two door stainless steel fridge and stainless steel bbq). The only thing that needs to be added is linen. These homes have been finished to a superior level. Three of these homes have recently been rented for between $880 and $920 per week. Limited opportunities are available for renting or purchasing the Benchmark. Rental demand is high for such a product and the rental returns are outstanding. For further information about purchasing, building or renting one of these unique homes.
The Benchmark design consists of four lockable bedrooms each with their own ensuite and robe, two living areas (including theatre), open plan living/kitchen and a large under roof alfresco area. Cars and hobbies are well catered for with a double garage and triple bay shed along with ample storage throughout the home.
Three of these homes have recently been rented for between $880 and $920 per week contact Pam Moloney or Vicki Kern from Surat Basin Real Estate.
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PAGE 27
building the BASIN Indigenous and Disability Career Lifestyle Expo opens up opportunities While the Surat Basin is seeing a boom in opportunity, many may still wonder what prospects the region holds for them. The Western Downs Indigenous and Disability Career Lifestyle Expo on Friday May 20 will showcase a variety of services that support both the Indigenous population and people with a disability who are considering studying, training or employment now or in the future. Held at the Dalby showgrounds from
10:00am to 2:00pm, the expo is designed to be a one-stop-shop and will specialise in providing attendees with information on training, employment, financial and personal assistance when they are planning their career journey. Coordinator - Targeted Projects (National Disability Coordination Officer Program) Mrs Nancy Nixon said the targeted age range for this expo is all persons aged 15 to 65.
"We would welcome any organisations within the area to attend and promote their services," Mrs Nixon said. "The expo's main focus is to let people within the Western Downs know about what services are out there and how they can tap into these services." Employers from around the Western Downs are also invited to attend. "Many of the service providers are larger organisations from out of town and I
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welcome local employers to attend and make valuable linkages," Mrs Nixon said. "If you're an employer that is considering hiring new staff, have you ever thought of an Indigenous candidate or a person with a disability? If not, why? Was it the lack of information that made you hesitate, well this expo is your chance to get all the information relevant to your business." She said this expo will also provide the opportunity to promote Indigenous and disability jobs. Mrs Nixon also said if people outside of Dalby wished to attend, transportation could be organised from other main centres, subject to numbers.
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Placesandfaces page30 page31page 32 page 33 Surat Basin Rail project update
Protest action
Stanmore: One step closer
Journalists Tour QGC
Wild Desert lay red carpet for the King This particular monarch is rugby league legend Wally Lewis and he was in town as guest of honour of the Rebuilding Dreams gala dinner at the Cultural Centre on Saturday April 9.
Hosted by Wild Desert, the dinner was held to raise funds for Lockyer Valley Flood Relief, with Wally and his actor son Lincoln Lewis as headline billing. The evening raised $21,000 through donations, auctions, raffles, and merchandise sold on the night. Business Manager for Wild Desert Annmaree O'Connor, said they had decided ten weeks ago to hold the Dinner to do their part in trying to help the people down in the Lockyer Valley region that had been so tragically affected by the floods. "We have a large percentage of our staff located in the Toowoomba area that were affected, and one of our staff and his family
lost their home down in Grantham", she said. Miss O'Connor said the night itself went very well and many people had a wonderful night. "We also had lots of great things donated from local businesses for our auctions and the multi-draw raffle." Miss O'Connor said there were 53 sponsors for the event, which was fantastic support from the business community considering this was Wild Desert's inaugural event. "It was great to see how many people were involved with this event and gave so much of their time to help make it a success," she said.
"Thanks to all our sponsors and to all our volunteers who made the Rebuilding Dreams Gala Dinner an evening to remember." While the fundraising was the main goal of the night, attendees were also provided with some first class entertainment. "I had a friend of mine Steve Jarrett who bought his band Duck and Cover up from Sydney to help out with the event and also with Wally and Lincoln Lewis as specialty Guest Speakers, they made a great combination and I know it will stay in the memories of many people for a long time to come," Miss O'Connor said. Mr Lewis senior entertained the large crowd present with the story of his career with sport in his blood from his league coach father Jimmy and international netball playing mum June. Mr Lewis said he was torn between league and union in his early days but league was his first love and his greatest ambition was to play for Queensland.
He made his state debut as a youngster in 1979 and played alongside Roma great Arthur Beetson in the inaugural State of Origin match a year later. "Arthur Beetson was my hero," Wally told the audience. Wally also gave the audience some humorous insights into his contract negotiations with English side Wakefield Trinity which he played for in 1983-84. Sydney band Duck and Cover continued to entertain late into the night and organisers Wild Desert are to be congratulated for such a successful event.
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PAGE 29
places and FACES Running from Wandoan to Gladstone, the Surat Basin Rail will connect one of the world's biggest coal mines to the port when completed.
Construction of the missing link is almost here The CEO of Surat Basin Rail Warren McReight gave a project update on the planned Surat Basin Rail project at Dogwood Crossing @ Miles on March 15.
••••••••
The rail project has already received environmental approval from the Queensland
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The proposed rail line will run from 10 kilometres south of Wandoan to Banana to join up with another rail line that will head to the port of Gladstone. The rail project has already received environmental approval from the Queensland State Government and customer commitments are underway with existing and potential coal producers. Surat Basin Rail has also entered into interface agreements with landowners directly affected by the proposed railway line and have applied to the State government for compulsory acquisition of land if landholders don't want to sell. Mr McReight said the proposed railway is the first of this nature since the State government sold off the industry side of Queensland Rail. "Before all rail line projects were State government run ventures," he said. "It is a challenge for the Queensland government because we are writing the script." Mr McReight said Surat Basin Rail is in negotiations with Xstrata about their proposed Wandoan coal mine. "The XStrata pit will be the third biggest coal mine on earth," he said. "The proposal is to run 22 million tonnes of coal per annum to Gladstone." Other parties interested in using Surat Basin Rails line include Syntec and Metro Coal among others. Mr McReight said safety is the number one priority for this project. "We are trying to minimize the impact on the
environment during this project," he said. Department of Local Government and Planning spokesperson Alison Brown said the Queensland government has granted an exclusive mandate to the Surat Basin Rail Joint Venture to develop the Surat Basin Railway as an open access coal and freight railway with capacity to meet demand from all users. "The Joint Venture must develop the project through to financial close by 30 June 2011," she said. "Under the terms of the exclusive mandate, the Government is responsible for securing and acquiring the identified rail corridor. "The Coordinator-General is considering recommending that a State development area be declared over a corridor that runs from the town of Wandoan to the QR National Moura rail system near the town of Banana. "If the SDA is declared, the CoordinatorGeneral will have the option to compulsorily acquire the land required for the railway." Ms Brown said the proposal to declare the SDA is presently under consideration. "The timing of a decision on this matter has been impacted by the need to review the proposed corridor following recent flooding events and the timing of actions which must be completed by the Joint Venture," she said. "Ultimately, the pace of development will be determined by private investment decisions on related mine and infrastructure projects in the region. "The Queensland Government remains in favour of private development of the missing rail link between Wandoan and Banana and is committed to meeting its obligations under the current exclusive mandate."
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Surat Basin NEWS Thursday 28 April 2011
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places and FACES
QGC open up to journalists Journalists from across the State experienced the passions that CSG can incite during a media tour of the company's facilities north of Tara. By Geoff Egan On a trip designed, in the words of QGC senior vice president Jim Knudsen, to show the media the "human face of the company", the tour was ambushed and parked in by anti-CSG protestors. The tour, which included journalists from the Chinchilla News and Dalby Herald, the Australia, Courier-Mail, Queensland Country Life and the Australian Financial Review, toured QGC's Kenya and Windibri facilities along with an area of land in the Tara rural residential estates where gas wells are planned to be constructed. A number of new pieces of equipment and processes were demonstrated by QGC regarding the next steps in the development of local coal seam gas reserves. QGC demonstrated Murphy Plant and Civil's spider plough as their next generation of trench digging and pipelaying technology while at the Kenya facility. According to Murphy Pipe and Civil site manager Clint Raven, the spider plough vastly reduces the time taken to trench and lay pipe as well as the impact on private land. "We run a roller over the trench and in two, three weeks you wouldn't even know we were there," he said. The spider plough digs and lays the trench in a single process, while using four GPS controlled independent wheeled legs to maintain the correct depth without having to level the land. QGC also demonstrated their under construction reverse osmosis plant at Kenya. The plant will remove salt from the water raised from the coal seams, which they will then provide to SunWater for use in irrigation. The trip didn't go entirely as QGC planned, however, with anti-CSG industry protesters parking the tour bus in near the Kenya plant. Friend of the Earth member Drew Hutton and Tara rural residential estate resident Dayne Pratzky were amongst the group that stopped the tour.
QGC general director of land access Tony Nunan.
Upon learning of the presence of a number of QGC executives on the bus, Mr Pratzky used the opportunity to tell them exactly how he felt about their company's operations. "You try living next to one of your bloody compressor stations," he said. "I'm going to ruin your life like you've ruined mine."
Ensign workers on a drill rig north of Tara.
Surat Basin NEWS Thursday 28 April 2011
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places and FACES
Stanmore one step closer A N OT H E R P RO J E C T R E L I A N T O N T H E S U R AT B A S I N R A I L G O A H E A D H A S TA K E N O N E M O R E S T E P TO WA R D S A P P RO VA L . Stanmore Coal recently completed an agreement for the right to purchase a key property within their 'The Range' thermal coal project area, situated 24km south east of Wandoan. There are three key properties within Stanmore's exploration area, and negotiations are currently underway to move towards the acquisition of the other properties. Acquisition of the property allows the company to move into evaluation and development work Stanmore Coal have applied for their mining lease and commenced environmental investigations in preparation for the release of
their Environmental Impact Study (EIS) later this year. Currently "The Range" thermal coal project is within the Pre-Feasibility Study stage. This stage involves drilling and quality testing, washplant design, and recognition of issues that may arise. Completion of this stage is expected by approximately September. Working towards a production goal of 2015, Managing Director Mr Nick Jorss said Stanmore Coal wanted to implement a better community consultation process during this time. Mr Jorss said they were working through
contacting every key stakeholder to take their concerns into consideration. "Talking to the neighbours and our interactions with locals and the council is very important to us," Mr Jorss said. "We still have a fair bit of work to do," he said. "We haven't run into a lot of negativity, people are interested in jobs and what we can do to add to the community." Mr Jorss said the Full Feasibility Study, which involves the release of the EIS, would be followed by a detailed design and construction phase. The mine would be reliant on the Surat Basin
Rail for transportation of its coal, as are many other proposed mines within the region. Mr Jorss said the possibility of sharing infrastructure with the other proposed mines was a possibility. "Although we are located a bit of a distance from the other mines, we are open to discussions around the sharing of infrastructure where possible," he said. The Stanmore Coal project covers a Mining Lease Application area of 5,200 hectares, with around a third of this designated for mining; however this would occur in stages across that area.
Ergon recruit 850th apprentice ERGON ENERGY INDUCTED THE ORGANISATION'S 850TH APPRENTICE IN A DECADE IN MARCH. - By Jacinta Cummins - DALBY HERALD
Nick Wright of Dalby and Tara's Zack Richardson are some of Ergon Energy's newest recruits.
The 61 new apprentices who started with Ergon in March include Nick Wright of Dalby and Zack Richardson of Tara. This apprentice intake increases the number of apprentices on Ergon Energy's books to nearly 300. Since 2002, the company has turned out over 550 qualified tradespersons. Ergon Energy Chief Executive Ian McLeod said this was a wonderful achievement for the organisation, which remains strongly committed to training the workforce of tomorrow. "There is currently a recognised skill shortage in Queensland for all electrical and fabrication skill areas and we have focused our recruitment this year on ensuring we are appropriately skilled for the task ahead," Mr McLeod said. To reflect this, the six apprenticeships being offered this year are systems electricians, communications technicians, mechanical fitters, sheet metal workers, electrical transmission linespersons and electrical powerline linespersons. Mr McLeod said more than 2500 people applied for the 61 positions which will be largely based in small regional towns like Dalby and Chinchilla. "This means they won't have to leave their homes to find work and they can gain valuable skills in a good, solid trade," he said.
HARNESS A NEW ENERGY. C AREERS WITH ENERGY
Savanna Energy Services are pleased to be operating in the Surat Basin of Queensland on multiple drilling and workover rig contracts. Savanna aims to hire people who want to further develop a career in the energy services industry. We are in this industry for the long term, and we want our people to be with us long term. This is a unique opportunity to work with a professional and experienced industry leader that believes its people are the key to its success.
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Surat Basin NEWS Thursday 28 April 2011
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A PLENTY Far from the peaceful environment it once was the area between Tara and Chinchilla has become the site of one of the most publicised protests in Australia. Since mid March anti-CSG protesters from the Lock the Gate campaign have been blockading QGC's actions in the region. QGC is attempting to construct a pipeline through the Tara rural residential estates to connect a number of their test wells with the main processing plant on their Kenya facility. The group, who have enlisted support from Brisbane via protests at Parliament House, have since begun campaigning outside Kenya and blockading the progress of QGC's machinery. Earlier this month the protesters enlisted the support of Greens co-founder Libby Connors, and father of the late Steve Irwin, Bob, to assist their campaign. Both were arrested on Tuesday, April 12 for failing to obey police orders. This came after protest spokesman, and fellow Greens founder, Drew Hutton was arrested the week prior. Even the Prime Minister found herself in the midst of the protests when she visited the Darling Downs Power Station. Dressed in robes and gas masks protesters flew their banners in front of the nation's most powerful woman. Alongside the protests legal action has been launched by the group on behalf of a Tara landholder. Paul 'Bryce' Keating has claimed that QGC have breached their agreement with him through clearing a greater amount of land than was agreed upon. The concerns have also prompted the Department of Environment and Resource Management to investigate if QGC have cleared more land than they were allowed to previously. Despite the high levels of activity neither QGC nor the protesters appear willing to give ground. The standoff is ongoing and is showing little signs of letting up.
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places and FACES
Drama in Chinchilla QGC's annual theatrical extravaganza Drama at the Gasfields will be performing in Chinchilla. For the first time on Saturday May 7 Drama at the Gasfields which has traditionally been held at QGC's Windibri property, will be held at the Chinchilla Showgrounds.
The day will see La Boite theatre perform 'Spirit of the Land', the production meant to be performed in 2010 before the event was washed out. Involved in the performance will be 27 Chinchilla State School drama students. The 11 and 12 students will be onstage for the entirety of the play. Chinchilla State High School students have been working with La Boite artists in residence Daniel Santangeli and Daniel Crestani to prepare for their performance. Chinchilla State High School deputy head of the arts Michelle Radunz said it was a great opportunity for the students. "The kids have got a lot out
of the workshops,” she said. The Daniels have exposed them to a number of different learning experiences that I usually couldn't." Spirit of the land directed by Sean Mee, is a collage of Australian stories focussing on Australian people's relationship with the land. "It will be really relevant to our community and our students, especially given the recent hardships we've suffered. "Not only will our students be performing for hundreds of people and working with professionals, they'll have the opportunity to be exposed to another form of theatre, which they usually would not encounter outside of the Drama classroom." The day has become one of the major fundraising days for community groups across the region. The Chinchilla Rotary Club will be sizzling steaks and sausages, Miles Chaplaincy cooking delicious German sausages and Chinchilla Lions Club will be running the bar on the day. Alongside La Boite's production the day will see entertainment from Fiesta Tropicale, indigenous dancers and, for the kids, Aboriginal art work shops, face painting and a range of rides. Children will also be able to get close to the kangaroos and possums of Woop Woop Wildlife Rescue. Free buses will transport people to and from Miles, Dalby,Tara and Roma. Onsite parking will also be available. For a bus timetable and reservations, which are essential, please contact Maguire Coaches on 4662 7634.
TRADES and SERVICES
ag, industrial, engineering
crane hire
earthworks
Miles Engineering
CHINCHILLA CRANE HIRE
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from 20 Tonne Frannas to 300 Tonne Slew Cranes Dry Hire Wet Hire Man Cages Kibbles Dogman & Rigger Labour Hire
Ryco Hydraulics Pty Ltd
Phone 4668 9755 Mobile 0428 689 755
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. Jobbing . Fabrication . Hydraulic Crimping .Safety . Steel Supplies .Welding Servces
28-46 Murilla St Miles - Phone 4727 1488
28-46 Murilla St Miles - Ph 4627 1488
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Scott Holmes MOBILE Mechanical
chincranehire@bigpond.com “We Give Everyone A Lift”
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20-25 Tonne Frannas 60 Tonne All Terrain Tele-Handlers EWPs Dogmen
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Situated in the heart of the Surat Basin
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PAGE 34
Specialising in Electrical Services
GILCOLM ENTERPRISES PTY LTD
Looking after the Farmer and Contractor
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Surat Basin NEWS Thursday 28 April 2011
36 North Street PO Box 174 Wandoan Qld 4419
Mobile: 0427 063 043 Licence Nos: 51884,L045842, 157873C, 39992S
Phone: 07 4627 5341 Fax: 07 4627 5342 E: gilcolm@bigpond.com.au ACN 096 501 950
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McCormack Engineering OAKEY Contract Fabrication & Fitting Maintenance • Trade qualified – with fabrication, construction, power station and washplant maintenance experience • Tickets – generic mine induction, first aid, blue card, confined space, work at heights, basic rigger, EWP, CN mobile crane, fork lift, DG dogger, front end loader, LBG gantry crane • Licences – HC, R, UD classes
For On-Site Maintenance, Repairs & Fabrication in our Workshop or Plant Operator Requirements
Phone Pat McCormack 4691 5216 or 0408 700 745
places and FACES Tony Heidrich, Social Performance Manager, Gary Carrington, Chinchilla Great Western Motor Inn, Matthew Cranston, Financial Review. Bruce Coates, QGC General Manager Field, Jerry Maher, Andrew Fraser, The Australian Newspaper, Jim Knudsen, Senior Vice President QGC.
Paul Larter, QGC and Glenn Hunt Financial Review.
Paul Sullivan General Manager Drilling, Tony Grant-Taylor, Courier Mail, Nigel Kassulke PR Consultant.
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equipment hire
engineering & mechanical services
water cartage
real estate elderschinchilla.com.au
Elders Real Estate Chinchilla •Property Management
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PO Box 322 Chinchilla • dncross@bigpond.net.au
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•Industrial •Retail •Commercial Jim Strongman – 0418 734 256 Warren Daniells – 0427 468 591 www.suratbasindevelopments.com.au plant hire
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DOWNS WASH DOWNS & VEHICLE INSPECTIONS • Vehicle Inspections (Weed Hygiene) • Heavy Vehicles & All types of Machinery • 24hr Service 7 Days Week • Vehicle Wash Downs • Mobile Pressure Cleaning Unit.
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Preventing the spread of weeds is difficult, but there are many ways you can help protect our region Dymar (Roma) Plant Hire Pty Ltd 160 Raglan Street, Roma Ph: 4622 7935, Fax: 4622 7936 Mob: 0418 746 748 or 0419 776 136 815F Compactors, Impact Rollers Smooth and Padfoot Vibrating 3 to 27 Tonne Tandem Vibrating 1.5 to 14 Tonne Multy Tyred Rollers 4 to 40 Tonne Combination Rollers 3.5 to 12 Tonne Drawn Road Brooms. Tractor & Rotary Broom IT28G and IT38G Loaders with Forks & Jib Water Trucks, Trailers, Horse Floats, Skid Steer with Spreader Bar, Forks, Bucket & Broom. Tractors 4x4 with Linkage, PTO Hydraulics, Slashers, Containers, Toilets, Site Safes, Lunch Rooms, Sand & Gravel Baggers, Water Pumps, Forklifts. Dozers, Scrapers, Graders Backhoes 4x4, 4 in 1 Bucket, Forks, Extendahoe, Sideshift
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Surat Basin NEWS Thursday 28 April 2011
Well Servicing Completions Workovers Frac stimulation setups Live completions
www.wilddesert.com.au PAGE 35
places and FACES The inaugural Surat Basin Energy and Mining Expo is set to become the premier Energy and Mining showcase for South West Queensland.
Opportunities on offer at Energy and Mining Expo
The Surat Basin Energy and Mining Expo will feature information on employment opportunities around the region.
The new event planned for Toowoomba has received an overwhelming response from the Energy and Mining sectors. Event Organiser Bob Carroll said it was a great event for the region. "This will be a great opportunity for organisations who have booked sites to meet delegates from the energy and mining sector, and there is no doubt that they will expand their customer base and grow their business as a result," he said. Delegates that have currently registered to attend the expo are of the highest quality. They includes mining company
managers and CEO's, chief engineers, purchasing officers and project managers from a variety of energy and mining companies, all curious to see what the exhibitors have to offer. One of the biggest challenges in the energy and mining industry is attracting the right people for the jobs on offer. The wages, conditions and future opportunities are diverse and plentiful so there are plenty of good reasons for people to move into this industry. Both SQIT and USQ (as sponsors of the Surat Basin Expo) recognise this fact and are
putting forward courses to gain the qualifications that will be necessary to further educate potential employees. A number of recruitment agencies will also be represented at the Expo which will give potential employees a chance to discuss the opportunities on offer. All people who work in the industry or want to find out more about working in the energy & mining sector are encouraged to register for free, to attend by visiting www.suratbasinexpo.com.au.
THE SURAT BASIN ENERGY AND MINING EXPO IS ON THE 22ND AND 23RD OF JUNE AT THE TOOWOOMBA SHOWGROUNDS. VISIT www.suratbasinexpo.com.au FOR FURTHER INFORMATION.
Act now to secure one of the few remaining blocks in
CHINCHILLAâ&#x20AC;&#x2122;S PREMIER INDUSTRIAL ESTATE
R E D N U W O N N O I T C U R T S N O C FOR FURTHER INFORMATION
Visit: www.suratbasindevelopments.com.au Phone: (07) 4669 1066 or Jim Strongman 0418 734 256 or Email: sales@suratbasindevelopments.com.au Warrego Hwy, Chinchilla QLD 4413 PAGE 36
Surat Basin NEWS Thursday 28 April 2011