SBN 25 AUGUST 2011 by Chinchilla Newspapers Pty Ltd

Surat Basin NEWS Thursday 25 August 2011

36 Pages $1.10 inc GST

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SBNEWS

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 â&#x20AC;&#x201D; 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

PAGE 2

down tobusiness

in theNews

The Team

David Richardson General Manager Laurell Ison Advertising Beth Walker Graphic Design Tegan Plant Editorial

pages 4-9 We cover the announcement of financial approval of the APLNG project, and also look at changes for some of the coal companies in the region. Ostwald show training expertise, and we give an overview of the CSG Inquiry in Dalby.

"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 14-21 Kogan Creek shares with the Surat Basin News progress on its first scheduled overhaul since they commenced operations.We take a look at how camps in the region impact on infrastructure in our towns, and investigate the accommodation and real estate issues in our communities.

building theBasin

Placesandfaces

pages 22-29 pages 30-36 We profile Cockatoo Coal, a company becoming increasingly involved in the Surat Basin.The resource industry has flow on effects for businesses - we find out their views on the current situation.This section also features an overview of some of the advantages gained by attending the upcoming Surat Basin Conference.

Xstrata gets involved in the community, with support for trainees, and catch up with recipients of their flood fund.We also cover the recent Dalby business breakfast and the opening of a new truck stop in Roma.

advertisers index Austrans Haulage Pty Ltd..............................33 BHD Oilfield Services ......................................9 Black Cat Queensland....................................33 Brandon & Associates ..................................33 Budden Contractors ......................................10 Bundaberg Sandblasting..................................10 Calibre Aviation................................................19 Chesterfield Australia ....................................31 Chinchilla First National Real Estate ..........18 Chinchilla Fluid Power....................................23 Dalby First National Real Estate ....................1 Dalby Real Estate and Rentals......................27 Daley Furniture Traders ..................................1 DDM Liquid Waste ........................................33 Don Warriners Earthquip..............................13 Downlands College ..........................................7 Downs Water Warehouse ..............................7 Easternwell ................................................3 & 32 Ergon Energy ....................................................11

F K Gardner & Sons Pty Ltd ........................17 Fleming's Welding Service..............................28 Global Training Systems ................................20 Globe Recruitment ........................................26 HEQ Services ....................................................5 IOR Petroleum ................................................26 JJ Richards & Sons Pty Ltd ............................20 KJ'S Signs ..........................................................33 Leonard & Co Raine & Horne ....................19 Loughlin Crane Hire ......................................27 M & P Services (Qld) Pty Ltd ........................1 Maguire Coaches and Travel ........................17 McDermott Aviation ......................................23 MI Helicopters ................................................24 Murilla Community Centre ..........................27 Murray Purves Betta Electrical ....................31 Onsite Rental Group ........................................8 Ostwald Bros....................................................19 Pirtek Chinchilla ..............................................24

Surat Basin NEWS Thursday 25 August 2011

PlantRent ..........................................................12 Ray White Rural Chinchilla ..........................15 Ray White Toowoomba ..................................29 Robbie Taylor & Sons Heavy Haulage ..........9 Santos ..................................................................9 Satin Touch ........................................................24 Southern Cross Ford ........................................6 Speciality Services QLD ..................................7 Spitwater ..........................................................31 SQIT......................................................................8 Steps Disability Services ......................24 & 28 Surat Basin Conference ................................25 Surat Basin Property Group ........................21 The Rental Warehouse ..................................24 Tilly's Crawler Parts..........................................2 Trades and Services ..............................34 & 35 Tresed Liquid Waste ......................................17 Unique Hire ......................................................10 Why Not Kates ..............................................16

this WEEK

Land Court meets T h e f o c u s i s o n Wa n d o a n t h i s w e e k , w i t h t h e L a n d C o u r t i n s p e c t i n g t h e s i t e o f X s t r a t a 's Wa n d o a n C o a l p r o j e c t l a s t w e e k i n p r e p a r a t i o n for hearings commencing this week. BY Tegan Plant

editorial @suratbasin.com.au

The legal proceedings have arisen from objections to the project from several landholders and environmental group Friends of the Earth. Friends of the Earth spokesperson Dr Bradley Smith said the mine would take the world a significant step closer to dangerous climate change. "Coal mining continues to be approved in Queensland without proper regard for the impacts on the environment and we're taking this objection to court because we think that this mine should be stopped," Dr Smith said. "The mine is huge and will have lasting impacts on the local area and on the climate. "The country and towns like Wandoan form the backbone of Australia and must be protected and we must make a stand." The eastern mining lease boundary, existing sample pit, an example of a drill hole and rig in the field and properties were inspected. However one objection to the coal mine was withdrawn last week, with the Wandoan District Liaison Committee having reached a suitable compromise with Xstrata Coal on their issues.

Committee president Bill Blackley said after four years of attempts to establish a two kilometre exclusion zone around Wandoan, they couldn't get through to the government or the coordinator-general, but after around eight months of negotiations with Xstrata Coal directly had reached a compromise. "It's a win-win for Wandoan and Xstrata," Mr Blackley said. "There was a trade-off on both sides for some conditions, but the committee believes the agreement reached with Xstrata was far better than what could have been achieved through the land court. "Our issues weren't all resolved, we had to compromise and they had to compromise, but there was a lot of goodwill shown on both sides." A briefing document from Xstrata Coal on the land court challenge details a signed formal agreement has been formed between Xstrata Coal and the Wandoan District Liaison Committee, meeting the following conditions: • Shifting the centre of the buffer zone to make it 2km from the edge of town. • Establishing further 'conditional' buffer zones at each end of the town. • Donating land and contributing $1 million to a green belt within the buffer zone.

•

Other initiatives, such as sponsoring independent environmental specialists to advise the community and installing additional environmental monitoring stations (over and above those specified by authorities). In addition to this, Xstrata Coal are also finalising an Infrastructure Deed with Western Downs Regional Council, including upgrades to water and sewerage systems, a new airport and landfill and other initiatives beyond direct requirements of the project itself. Xstrata Coal communications manager James Rickards said that the Wandoan District Liaison Committee's withdrawal of their objection was a positive result both for Xstrata and the community. "It shows we have been transparent and open to the community," Mr Rickards said. "Concerns have been raised and we have worked to try and address those outside of the courts appropriately and in the best interests of all parties. "The land court allows objections to be raised so new conditions are met and issues of compensation are resolved…the objection process is the mere final step in a long approvals process." Mr Rickards said Xstrata believe the majority

Surat Basin NEWS Thursday 25 August 2011

of the matters have been addressed through the Environmental Impact Statement and the Supplementary Environmental Impact Statement and then through their negotiations to date. Xstrata Coal put forward their response on Monday at a hearing, which will be followed by a hearing in Dalby on Friday to give local landowners an opportunity to have their say. On Monday August 29 the Friends of the Earth will put forward their objections to the hearing. The final financial decision on the Wandoan Coal project will go to the board later this year.

PAGE 3

in the page 4 page 5 page 6 page 7

APLNG project announcement

Yancoal purchase Syntech

Origin establishes committee

Ostwald excel at training

The third CSG 'mega-project', Origin Energy's APLNG operations, has received financial approval from their board.

Origin LNG to proceed T

he joint venture between Origin and ConocoPhillips will see local gas piped to the Curtis Island facility off the coast of Gladstone. Queensland Premier Anna Bligh dubbed the announcement the approval of the last of the three CSG 'mega-projects', with QGC's and Santos' projects having already received approval. The project will see a huge number of jobs created in the region and APLNG project director Page Maxson said there would be more than around 3000 jobs created across the Surat Basin over the construction phase with a further 770 in the operations phase. "The upstream construction phase will last for over 20, 25 years," he said. "Field development moves around the area, we won't be operating in one spot for 20 years. "This really will be a long boost to the local economy." Local business would be a major beneficiary of the project with Mr Maxson promising to use as many local contractors as possible.

"We're already using quite a few local contractors and we'll keep on doing so as the project grows," he said. "We will of course have some larger contracts as well." Mr Maxson said local contractors did not mean businesses from Toowoomba or Brisbane but rather

BY Geoff Egan

editorial @suratbasin.com.au

people who operate out of local communities. "(APLNG will be dealing with) people living and working in the area." Mr Maxson said most of APLNG's operations will be centred south of Miles. "We will be stepping up our activities gradually over the next six months, you won't see a sudden jump tomorrow.

"Most of our operations will be south of Miles and east of Condamine." APLNG chairman Grant King said the company had committed to developing the coal seam gas industry in a manner local communities would approve of. "(APLNG will be) developing this resource in a way that is acceptable to the community," he said. Premier Bligh said the approval of the project, along with the other two, put Queensland at the forefront of the energy industry in Asia. "I'm very excited for what it (the development of the gas industry) means, particularly for regional Queensland. "This positions Queensland to become the natural gas LNG hub of South East Asia.This is a major new export industry for Queensland." Despite ongoing opposition to the industry, the Premier denied allegation her Government's support of coal seam gas was for financial purposes. "I reject the notion governments cannot regulate industries that pay tax to them," she said. "That would mean no government could control anything."

"We're already using quite a few local contractors and we'll keep on doing so as the project grows," he said. "We will of course have some larger contracts as well." Chairman of Australia Pacific LNG and Origin Energy managing director Mr Grant King, Queensland Premier the Hon Anna Bligh MP, Minister for Reconstruction the Hon Andrew Fraser MP and Queensland Treasurer and Minister for State Development and Trade Mr Todd Creeger, ConocoPhillips Australia President PAGE 4

Surat Basin NEWS Thursday 25 August 2011

NEWS page 8 page 9

Cougar move on

CSG inquiry gives landholders a voice

Coal at Blackwood

Yancoal's operations at Cameby coal were formally owned by Syntech.

D L O S Syntech sold to Yancoal hinese company Yancoal has purchased Syntech and its Cameby Coal operations. The Cameby operation will be Yancoal's first mine in the Surat Basin. The company, a subsidiary of Chinese miner Yanzhou Coal Mining Company, currently has operations in the Hunter in NSW as well as in the Bowen Basin. Managing director of Yancoal Murray Bailey said the expansion into the Surat Basin was an important move for the company. â&#x20AC;&#x153;The acquisition of Syntech, encompassing the existing Cameby Downs Mine and surrounding tenements, represents an important step in the long

term growth strategy for Yancoal," Mr Bailey said. "It will diversify our product range, increase our resources and reserves, and provides for significant growth potential well into the future". The Cameby mine currently produces 1.4 million tonnes of thermal coal per annum, which is sold to electricity producers in Asia. Plans to expand the mine, under the proposed stage two, depend on regulatory approvals and market conditions, as well as the approval and contruction of the Surat Basin Rail line to Gladstone. Yancoal stated they will pursue the possible use of the coal in coal to chemical, gas and hydrocarbons.

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reliminary drilling in Blackwood Coal's 'East Wandoan' tenement has confirmed the presence of coal at the site. The company drilled and geophysically logged 14 open holes for a total 1409 metres, and is scheduled to be conducting infill drilling to find potential stripping ratios and optimum coal quality this month. The preliminary drilling demonstrated the tenement's maximum cumulative coal thickness occurred in the south west of the holdings, with a thickness of 11.69m.The thickness of the coal thinned in the north with 6.14m reported. However, Blackwood is conducting evaluation work in the north west of the tenement which they believe hold significant potential. A statement released by Blackwood Coal stated the drilling did not provide adequate information to assess the full extent of the coal under the tenement, however "the follow up drill campaign will determine the full extent of the coal coverage within the drilled region." Blackwood Coal managing director Matt Crawford said the company was pleased with the results. "The results are very encouraging and substantiate the prospectivity that the Blackwood Coal technical team believed was always there," he said.

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Surat Basin NEWS Thursday 25 August 2011

PAGE 5

in the NEWS Banana Shire region to benefit from dedicated community committee Notifications of committee meetings and outcomes will be posted on the Origin website.

The establishment of a local community consultative committee was recently announced by Origin to keep the Banana Shire community up to date on its operations in the region. It is hoped the committee will also act as a conduit for community feedback. The Banana Shire Regional Community Consultative Committee (RCCC) will meet quarterly, with the first meeting to be held in Theodore on Monday, August 22. The RCCC will oversee Australia Pacific LNG's social impact management plans for the construction and operation of the gas transmission pipeline. Dawson Valley Cotton Growers president Fleur Anderson will chair the committee which is comprised of business and community members from across the region. Origin group manager corporate affairs upstream Queensland Ken Horton

said Origin was pleased to provide a more efficient and effective communication channel for dialogue with the Banana Shire. "While we have community liaison officers and shop front staff in place across the region as access points for the community, this allows more in-depth reviews and dialogue," Mr Horton said. "The Committee will enable us to work collaboratively and cooperatively with these communities to identify challenges related to our industry in the Banana Shire and to implement real solutions. "We see this as an opportunity to more directly involve the community particularly, in how we implement our social impact management plan, including the direction of funding for community investment projects." Ms Anderson said she was thrilled to be part of a committee which had the potential to deliver significant social benefits to Banana Shire Communities. "This is a positive step for the communities that neighbour CSG and LNG operations in the region and sets a good example for community engagement," she said. Notifications of committee meetings and outcomes will be posted on the Origin website.

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Surat Basin NEWS Thursday 25 August 2011

in the NEWS Ostwald Bros reach Queensland Training Awards State finals

The word is out ... Ostwald Bros are top employers Energy and resources focused construction and services company Ostwald Bros has been nominated as a state finalist in the 2011 Queensland Training Awards (QTA) after winning Employer of the Year in the south west region. The company was one of 57 state finalists chosen from more than 750 nominations. Ostwald Bros CEO Brendan Ostwald said he was proud to receive the nomination recognising Ostwald as a top regional employer for providing training opportunities to its 500 strong workforce. "We believe staff members are our greatest asset and by providing consistent, quality training and mentoring we can offer real opportunities to progress within the company and achieve their personal goals," Mr Ostwald said. "Because we're based regionally and the bulk of company projects take place in remote locations, we've adopted a policy of 'train to retrain.’ "At any one time, one in four of our employees will be in training and this could include everything from tertiary scholarships to onthe-job instruction." Mr Ostwald said he was pleased efforts to continue extending and improving the skills of staff have been recognised, and the benefits of the company's commitment to training were obvious. "Within the construction and transport industries safety is pivotal to business success and we've achieved zero lost time injury (LTI) over the past two years," Mr Ostwald said. "This is largely due to our rigorous induction training which enables us to reach our safety and performance goals. "Training also allows us to achieve a higher level of expertise and maximise our time efficiency."

Using directly employed trainers is something Mr Ostwald believes ensures employees have the necessary skills to complete the wide range of projects the business undertakes. Mr Ostwald said the company have also built a state-of-the-art maintenance facility in Dalby, where training occurs as maintenance is carried out on transport fleet and company plant. Ostwald Bros human resources manager Rohan May said the Queensland Training Celebrating the Ostwald Bros win at the recent Queensland Training Awards regional Awards were fiercely contested each year finals were, from left: Peter and Julie Lovell, Renee Gordon, Rohan May, Claire and he was pleased Ostwald Bros had made Juratowitch, Jo and Kerry Ashurst, Jenny and Michael MacNellie. it through to the next stage after coming out on top in South West Region. "All our employees can take credit for the award we accepted at the prestigious ceremony in Toowoomba on infrastructure. Its broad capabilities include structural concrete Friday night," Mr May said. construction, premix concrete supply, quarry materials and transport "It acknowledges both the people who undergo the training as well including coal haulage. as the people who complete it." Ostwald Bros employs a range of apprentices and trainees to Ostwald Bros is a family-owned company based in Dalby. maintain and operate its fleet including fitter and turners, diesel The company specialises in regional and remote service delivery fitters and boiler makers. incorporating coal seam gas services, mining support and regional

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PAGE 7

in the NEWS

Cougar battle comes to an end A yearlong battle between Cougar Energy and the Department of Environmental Resource Management (DERM) appeared to have come to an end last month. On July 7 DERM upheld its proposal to stop Cougar Engery recommencing underground coal gasification at its trial plant near Kingaroy. Since it was forced to close down operations in July last year, the company was compelled to make a number of staff redundant, close down its Brisbane office and focus operations overseas. However they are determined to contest the decision. Cougar Energy general manager for corporate finance and investor relations Brad Glynne said they disagree with DERM's findings. "We are going through the appeal process under the Environmental Protection Act to contest the decision and that has to commence according to the act with us requesting an internal review by DERM of that decision," Mr Glynne said. "We did that on August 2 and we are expecting that internal review process to be finished by the end of this month and we'll know what the outcome of that is." The initial complaints put to the Magistrates Court by DERM alleged that the company failed to properly install a gas extraction well to a standard necessary to ensure

compliance with the Environmental Authority, claiming Cougar released contaminants into a groundwater aquifer and failed to notify DERM as soon as reasonably practicable of a water monitoring test. As part of DERM'S findings last month, Cougar Energy was given an amended Environmental Authority to follow. "Essentially it is putting the site on permanent care and maintenance and asking us to rehabilitate and decommission the underground cavity," Mr Glynne said. DERM stated the amended authority meant only rehabilitation and monitoring could be conducted by Cougar Energy at the Kingaroy site. DERM acting director general Terry Wall said they could also be required to remove all infrastructure from the site, unless agreed otherwise by the landowner.

"It means Cougar must treat and dispose of any contaminated water in surface storage and clean-up groundwater at the site," Mr Wall said. "Cougar is required to continue groundwater sampling until the department is satisfied that rehabilitation has been completed." Mr Glynne said those workers that remain in a job are to maintain the site, while the company has now focused its operations offshore in Asia, specifically in China, Mongolia and Indonesia. "We are waiting for the outcome of the situation in Queensland, we would still like to progress in Queensland but in terms of our growth strategy for the company in the short term we've got to look at other places while this plays out and we're getting through that process," he said. "Australia remains an option but we need to

go through this process with the Queensland government at the moment which is incomplete and we're not sure how long that will go for â&#x20AC;Ś it's definitely over the next three to six to twelve months but we can't really estimate a timeline." Mr Glynne said the company is doing well in a new office in Beijing and will continue to operate. "We still believe underground coal gasification does have a role to play in future generation of energy and we believe it's environmentally friendly, much friendlier than coal fired power stations and it's a whole lot more cost competitive and cost effective than coal seam gas." The department's monitoring program has confirmed that contaminants have not been detected outside the Cougar Energy site.

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Surat Basin NEWS Thursday 25 August 2011

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in the NEWS CSG Inquiry travels to communities to give them a voice By Sean Hourigan

he Dalby Bowls Club was packed to capacity recently with Senators, their attendants, journalists, evidence givers and various onlookers. The spectacle for the day was the Senate Rural Affairs and Transport Committee's public hearing into the coal seam gas industry. The only political party which was in obvious attendance was the right-wing conspiracy theorist Citizen's Electoral Council of Australia which handed out literature to most members of the audience. Four separate sets of representatives testified in front of the panel of five Senators which ranged all the way across the political spectrum from Nationals Senator Barnaby Joyce to new Queensland Senator Larissa Waters. The enquiry heard from four parties on Tuesday, those being members of the Basin Sustainability Alliance, private

citizen and landholder from Cecil Plains Ruth Armstrong, Central Downs Irrigators and peak agricultural body AgForce. What did seem evident from all parties both on the committee and testifying was an honestly held belief that the rights of landowners (whether it is seen through a green or a farmer's perspective) had been swept aside in the gold rush mentality to capitalise on the vast energy resources stored in the ground.The meeting itself was an entirely peaceful affair with no energy concerns providing testimony that the gathered crowd could boo and hiss at. This is though it was indicated the testimony in Roma (where the committee had held a hearing the day before) given by energy companies painted an entirely more rosy picture of the situation. The day wasn't without the usual theatrics and grandstanding by some of the senators coming up with colourful catch phrases which more than once provoked a round of applause from some of the crowd.

The members of the panel: Sen Barnaby Joyce, Sen Sean Edwards, committee Chair Sen Bill Heffernan, committee Secretary Jeanette Radcliffe, Deputy Chair Sen Glenn Sterle and Sen Larissa Waters. Photo: Sean Hourigan/Dalby Herald

The spectacle for the day was the Senate Rural Affairs and Transport Committee's public hearing into the coal seam gas industry.

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Our actions speak for us.

Our GLNG project has already added over $2 billion to Queensland’s economy. Over the next 25 years, the project will contribute over $6 billion to State revenue, generate $9 billion a year in exports and see the creation of 6,000 jobs. That’s just one part of over $40 billion worth of investments and tens of thousands of new jobs the coal seam gas industry is bringing to the State. Santos has been part of Queensland’s economic growth for nearly 50 years and we look forward to an even brighter future. Because we’re not just an energy company. We’re a company with energy.

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Surat Basin NEWS Thursday 25 August 2011

PAGE 9

opinions Carbon tax evaluation

LNP support CSG policy

Communities need support Investment & infrastructure

Michael Roche, QRC

Howard Hobbs, Member for Warrego

Bruce Scott, Federal Member Maranoa

SBNEWS 12 Mayne Street Chinchilla, QLD 4413 PO Box 138, Chinchilla, 4413 Phone: 4662 7368

Ray Brown, Mayor

$1 million Surat Basin Skills Investment Program

COMMENT Anna Bligh Premier of Queensland

General Manager: David Richardson

The Premier says

Advertising: Laurell Ison Editorial: Tegan Plant

Editorial Non Core Promise is now a commonly used phrase that can explain away just about anything that requires a commitment. This paper was reviewing some of the information printed in the EIS’s submissions presented for the current LNG projects when this phrase, though not printed was very much evident. The piece of information that was read with interest was “social perfomance. Looking at our region over the last few months, the impact of housing or lack of will no doubt bring our local communities to their knees.With rising rents comes extreme pressure, brought to bear on the workers who are not employed in the resource industry. With a low unemplyment rate our businesses now face the very real prospect of their non home owners leaving the region because they cannot afford to live here. This is why the News read with interest the statement in the EIS.The issue of why our housing is now fast becoming unaffordable can be spread over a vast number of reasons. The blame game at present will not solve the issues nor will a review or committee report.Time is the one factor that is not in abundance in the Surat Basin. “Lessons learnt from the Bowen Basin will not be repeated in the Surat basin” - we have heard this statement many times over the last four years. Now is the time for initiatives not studies, now is the time for more supply, now is the time for leadership, now is the time fot action,. It was not long ago that headlines in bold text championed the resource companies and their provision of over 200 dwellings in the Surat Basin - the reason was that they would not adversely affect their communities. Was this a non core promise?

Premier Bligh inspecting a RoadTech Depot with TMR workers. year ago I launched the Surat Basin Future Directions Statement to help the region deal with the resources boom. A lot has happened since then - we've introduced our policy to preserve our best cropping land, introduced tough new rules to monitor and manage coal seam gas water, and we've strengthened the land access code to protect the rights of land holders. We've also outlined strategies to meet the projected demand for workers, housing, and transport and to deal with the social impacts across the region. Many local people have helped shape the strategies adopted and I appreciate the advice and support offered by the mayors and other residents. Among the big achievements is a new health services plan for the South West Health Services District and

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improvements to the road network. The Wilkie Creek approach and bridge, the widening of a bridge at Angellala Creek, and the widening and sealing of sections of the Warrego Highway have all been completed. In this year's State Budget we also announced $96 million towards the Warrego Highway upgrade. Medical surgeries at both Injune and Mungindi Hospitals are under development, mobile kindergartens were trialled in Surat and Injune and an extra police officer posted to Chinchilla. A $1 million Surat Basin Skills Investment Program has also been developed to drive workforce skilling. Our ultimate goal in all this is to ensure the people of the Surat Basin benefit from the tremendous opportunities ahead while ensuring their region remains a place where people want to live, work and raise a family.

For more details about the strategies underway go to www.regions.qld.gov.au. Finally, it's important to keep local communities and landholders directly impacted by CSG operations informed. That's why we have funded a $3.5 million program run by AgForward. If you are not fully aware of the land access policy and your rights when dealing with resources companies, I urge you to register for the next series of information sessions. AgForward sessions coming up are: Warwick September 6 , Inglewood September 7,Talwood September 8, Morven September 13, Cunnamulla September 14, Charleville September 15, Roma September 27, Moonie September 28 and Goondiwindi September 29. Visit www.agforward.org.au to register.

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opinions Michael Roche says

Serious concerns carbon tax

COMMENT Michael Roche Chief Executive Queensland Resources Council

he following is an edited extract from recent evidence to Senate Select Committee on the Scrutiny of New Taxes by Michael Roche, Chief Executive of the Queensland Resources Council. Minerals and energy production directly and indirectly contributes 21 percent of Queensland's Gross State Product, and some 13 percent of the state's total employment. It is a sector willing to capitalise on the opportunities stemming from the rapid urbanisation and industrialisation of developing economies in the Asia-Pacific region. My member companies are looking to government for improvements in the operating environment and not further roadblocks in order to deliver a pipeline of new investment in excess of $100 billion. Therefore, the proposed carbon tax could not come at a worse time. The QRC supports action on climate change and the use of market-based mechanisms to address climate change. However, the introduction of a carbon price ahead of both major emitting countries and our export competitors is a substantial

e s n e s y g r e n e aving

structural change to the Australian economy. Perverse economic outcomes - with little or no environmental gain - are a real and immediate risk of our current path. It is imperative that we get the design of the scheme right, and the QRC has a number of serious concerns with the Federal Government's proposed carbon tax. " Our member companies who will have to pay this tax report a lack of abatement possibilities; and so, for trade-exposed companies, the tax will be a hit straight to their bottom line. " The in-built year-by-year reduction of assistance for trade-exposed firms is an issue for those fortunate enough to get some transitional assistance. " Our member companies report that none of their offshore competitors face comparable carbon costs and many of these competitors are already below Australian operations on the global cost curve. " For those able to do so, there will be a strong pass-through of the tax - especially through electricity costs, subject to the operations of the National Electricity Market At $23, Australia will have the highest carbon price in the world. It will apply equally to methane emissions from coal mines. No other country taxes or is proposing to tax unavoidable methane emissions from coal mining - also known as fugitive emissions. The reason is that they can't be measured accurately nor effectively abated. We are imposing this cost on an economy whose future growth is strongly linked to the

At $23, Australia will have the highest carbon price in the world. continuing competitiveness of resource businesses. Export businesses have limited, if any, capacity to pass costs on in global resource markets. In the absence of viable abatement technologies, reduced emissions will typically come from the premature shutdowns of mines and related operations. Even in the absence of a carbon tax, the Queensland sector's global competitive advantage faces serial challenges. These include real commodity price decreases (as demand and supply levels out), a significant reliance on liquid fuels (with attendant fluctuations in global oil prices), declining resource grades, deeper mining levels, and additional imposts such as high labour costs and resource rent tax charges. Despite being eligible for transitional assistance of up to 66 per cent from the government, the Australian coal industry has been arbitrarily excluded. We estimate that black coal mines will instead have to purchase $18 billion in carbon permits over the first 10 years, with over half of that coming from Queensland mines. In return, the sector will receive a package of

$1.3 billion over six years, which translates into an effective rate of assistance of seven percent. The impact on current and proposed coal investments is the subject of ongoing analysis but initial assessment of a $20 carbon price showed that as early as 2018, 2,700 Queensland coal workers would be out of a job due to the premature closure of both 'gassy' and low margin mines. Assuming a four times indirect employment multiplier, this means the loss of 13,000 Queensland jobs. For Queensland taxpayers foregone royalties will be worth around $1 billion by 2020-21, which I cannot understand that our State Government is not highlighting with their Federal counterparts. The QRC does believe in action on climate change and does support Queensland and Australia doing its fair share of the heavy lifting but we cannot support the carbon pricing package currently before the Australian public. The QRC supports the adoption of a phased approach to the auctioning of emissions permits for trade-exposed industries - just as in Europe. Their scheme applies a simple non-arbitrary test of trade exposure. If met, the scheme shields trade-exposed companies. In Europe they have no intention of cutting emissions by cutting jobs in trade-exposed industries. A simple question to this committee is why we aren't using this as our guiding principle in Australia.

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PAGE 11

opinions LNP State Convention give unanimous vote to CSG and mining policy

Resource sector wealth should be directed back to communities COMMENT

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

Howard Hobbs says

s I move around the Warrego Electorate there is no doubt that the build up of fuel for bushfires is at an all time high level. Some areas have received good rain for a twelve month period ensuring that the vegetation growth has been tremendous. This however could be lost as the spring thunderstorm season approaches or a careless cigarette butt goes out the car window and starts a fire. I ask that all landowners start their fire preparedness and this includes the State and Local Governments. I have written to the State Government asking them to detail the fire prevention strategies for all State Government owned and managed land in the Warrego Electorate and also asked what communication is being undertaken with the neighbouring landowners. This may be the drought we wanted broken and the bushfire season we could well do without. I would like to report to you the overwhelming support that the recent LNP State Convention gave to the Surat Basin Region. The 600 LNP Convention delegates unanimously carried the following resolution and I would like to

PAGE 12

thank both Graham Clapham and David Armstrong for their assistance with this resolution. That this Convention of the LNP acknowledges the release by the parliamentary party of a draft position on coal seam gas as a discussion paper and recognises the substantial effort involved. The final policy should provide that there be no coal seam gas activity and development on high value agricultural land if it is likely to have any significant adverse impact on the productive capacity of that land to produce food and fibre in the future including any adverse impact on adjacent aquifers. It requests the relevant policy committees and the parliamentary party to finalise the policy as a matter of urgency. Other resolutions passed by the LNP Convention include That this Convention of the LNP supports a policy for Coal Mining that takes into consideration the protection of our valuable farming land and water resources. That this Convention of the LNP call on the LNP in Government to protect Prime Agricultural Land from Mining and review all legislation that permits mining and exploration access to rural land to ensure that • Landholders are treated fairly by the mining companies who hold exploration and mining rights over rural land and • Fair compensation is paid to landholders, reflecting the disruption caused to the landholders life and business by mining and exploration companies. So what does this now mean for LNP and its members. The State Convention of the LNP determines the general policy of the Party. It is the role of the Elected Members ie the Members of Parliament of the party, to then implement that policy passed by State Convention. Anyone is welcome to have input into the LNP's policy, there is a discussion paper at http://lnp.org.au/policies/queensland-the-energy-state-asustainable-coal-seam-gas-industry-discussion-paper where people are welcome to post their comments.

Bruce Scott says

Bruce Scott MP Federal Member for Maranoa

ravelling through the Surat Basin, it is obvious that the resources sector is a significant driver of population growth in the region. Local schools and childcare centres are hitting record levels of enrolment, while rental and house prices in regional centres are soaring.The growth is also taking its toll on our health and community services, and the wear and tear on local infrastructure is now a major problem within Surat Basin communities. But current growth figures are still speculative, which is why it will be interesting to see the official population growth for the Surat Basin region following the 2011 National Census. Federal funding for local projects is inextricably linked to Census data. Significantly for the Surat Basin region, fly-in fly-out workers were required to fill out their own Census forms if they were on-site for the evening of August 9. If the workers spent, or intended to spend, more than six months of 2011 on-site, they were required to record the address where they stay when on-site when answering the ‘Where does the person usually live?’ question. Having these extra workers included in the region’s population figures, will ensure the Surat Basin receives their fair share of funding.This is funding which would address the state of the Warrego Highway, bolster local health care services and provide improved education facilities. It will also help all levels of government and private institutions when planning for future growth in the region. On a separate note, the LNP’s recent endorsement of a ‘royalties to the regions’ policy would deliver a significant investment in Queensland’s regional and remote areas.The policy would see a minimum of 25 per cent of mining royalties collected by the state government invested in infrastructure in regional and remote Queensland as well as improving services and liveability in the Surat and Galilee Basins.The policy was adopted by the party at the LNP’s annual convention in July. If the LNP won government, the policy would provide much needed funds to the regions generating Queensland’s resources boom. For far too long, Queensland Labor Governments have failed to address the terrible state of hard and soft infrastructure in the resources-rich regions of the Surat Basin.The LNP will reinvest in the region so it can continue to grow and prosper into the future. It is only fair that the Surat Basin, as a major player in the resources sector, receives its fair share of the wealth generated by the mining industry.

Surat Basin NEWS Thursday 25 August 2011

opinions

Western Downs energy capital of Australia

Ray Brown says

Western Downs Regional Council has welcomed the Federal Government's landmark announcement of a $1.2 billion Solar Dawn 250 megawatt solar power generation project near Chinchilla. Solar Dawn will be one of the largest plants of its kind in the world and touted as the most environmentally responsible with around 90 per cent of its power generation to be emissions free. News of this mammoth project undoubtedly consolidates the Western Downs region as the 'Energy Capital of Australia'.

This project is one important step towards having a good mix of power sources in the region. No matter how you look at it, renewable energy is the way of the future.The project will provide a significant boost to the region's economy as it will generate hundreds of jobs during construction and will lead the way in showcasing the many facets of renewable energy development the region has to offer. Solar Dawn is one of the six projects that make the Western Downs the energy capital of Australia. Other projects energising the Western Downs include LNG gas fields, Coal seam gas fields which are fuelling aspirations of four global energy companies, Wandoan Coal Mine, and Xstrata Coal's multi-million dollar mine is set to become the largest mine of its kind in the southern hemisphere. In another milestone event, strategies for the future of the Surat Basin region have been delivered with the release of the State Government's Surat Basin Futures Direction Statement Final Report.This document provides a blueprint for regional development to generate outcomes that manage growth in the region. In this Statement, the government aims to deliver a series of initiatives to address the challenges and opportunities stemming from the new

multi-billion-dollar energy industry at our doorstep. In the past 18 months, the State Government together with all local governments across the region have worked with key industry stakeholders to identify the principal issues of the Surat Basin region and to devise and implement strategic actions for the future. I would like to thank those stakeholders and residents of the region involved for their valuable input throughout the consultation process. The spotlight was on the Western Downs

encourage local businesses, landholders and organisations to attend. In facilitating growth and investment potential of the Surat Basin, the recent inaugural Business Investment Tour hosted by Western Downs Regional Council was a great showcase to encourage businesses outside the region to be a part of the Western Downs and the Surat Basin.The tour provided a building block in cultivating burgeoning investment opportunity and was the perfect platform for local businesses to

Western Downs Mayor Ray Brown with Coordinator-General Steve Davies on tour of Kumbarilla Lane.

business sector at the Surat Basin Futures Expo recently held in Toowoomba. It presented an opportunity for business and industry and the community to discover what the Surat Basin region has to offer. And the focus on business and industry will continue with the annual Surat Basin Conference to be held at Roma in September.The Conference has become a pinnacle event in our region and will highlight the wealth of investment opportunity and hive of activity that's presently occurring in the region. I

network with prospective business clients and also for business clients to gather information from local business houses. The recent announcement by the State Government where penalties were imposed for companies failing to disclose under an environmental clause 2009 shows the government has taken serious steps forward to address and ensure all resource companies are held accountable for their actions. From day one,Western Downs Regional Council has been consistent in holding companies and the State

Surat Basin NEWS Thursday 25 August 2011

COMMENT Cr Ray Brown Mayor, Western Downs Regional Council

Government accountable for all actions posing environmental and social impacts to local communities on the Western Downs. The State Government's strong interest in the region has continued with a recent visit by Coordinator-General Keith Davies.The visit was opportune for Council to outline Western Downs Regional Council's priorities for the region and to voice our community's concerns in regards to the impacts of the energy and mining sectors. Councillors made the most of the opportunity to voice their concerns on many issues such as the approval processes for energy developments, affordable housing and the infrastructure needs of the region. During the visit, the Coordinator-General gained a grassroots understanding of the level of impact occurring across the region particularly in regard to the coal seam gas industries. I took the opportunity to show him the work camps, power stations, and numerous pipelines and wellheads in the region, and he got to see first-hand the poor state of the local roads and the Warrego Highway. Hopefully, our communities can look forward to some positive announcements from the State Government in the near future stemming from the Coordinator-General's tour. With the amount of coverage hitting the airwaves and in the press in relation to the Federal Government's Carbon and Resources Taxes in the past twelve months, there is always this feeling of uncertainty in the resource sector even though contracts have been let. However, while several of these contracts have been extended some delays have occurred across development in the region. Despite this, the region's energy sector has all the makings to be a growing force in the future. The sooner some solidarity is achieved on all fronts in relation to these taxes the better off the region will be, as this will serve to nurture rather than thwart resources sector growth and keep the local economy powering forward. Our region is home to a strong and burgeoning agricultural sector, several coal mines, coal seam gas fields and gas or coalfired power stations and now with the Solar Dawn project announced for Chinchilla, the Western Downs is on the cusp of becoming a national and international showcase for energy production.

PAGE 13

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Koganâ&#x20AC;&#x2122;s first scheduled shutdown

Camp regulation required

Origin trial CSG irrigation water

QGC provide apprentice rental aid

Kogan Creek

OVERHAUL The 35 day, $38 million overhaul of CS Energy's Kogan Creek Power Station has reached the halfway mark. Kogan Creek Power Station site manager Ivan Mapp said work was progressing to plan on the first major overhaul of the 750 megawatt coal-fired power station since it commenced operation in 2007. "Major overhauls are typically carried out on power stations every four years to keep the plant in peak condition," Mr Mapp said. "There are around 550 people on site at present - from trades assistants, to specialist technicians and engineers with the wide range of skills and

expertise required to undertake the maintenance and upgrades to the power station equipment. "It is expected that the total job will take around 180,000 man hours." Mr Mapp said work started at the end of July, and if work progresses to the current schedule, we will have the power station back online in early September. "The overhaul project includes statutory inspections of pressure equipment, replacements of key plant such as the auxiliary transformer, boiler nose and

One of the new 6.5 tonne main steam stop valves being installed at Kogan Creek Power Station.

stop valves, as well as the installation of condition monitoring equipment. "We're working closely with contractors and suppliers to ensure everything happens as smoothly as it can, and working with the community to make sure people working on the

project can be accommodated." While the overhaul is in progress, CS Energy is making other plant modifications to allow for the future connection of the world-leading Kogan Creek Solar Boost Project to the power station.

Kogan Creek Power Station is one of Australia's largest and most efficient single unit coal-fired power stations.

Welding in the air heater, between the boiler and the fabric filters during the Kogan Creek Power Station shutdown. PAGE 14

Surat Basin NEWS Thursday 25 August 2011

business page18 page19 page20

Companies provide housing support

Regional rental issues

Motels at capacity

A new legislation bans mining exploration near residential areas

D E N N BA

A recent ban on mining exploration permits near residential areas has been supported by the Local Government Association of Queensland (LGAQ) who believe it will provide certainty for the future of the state's resource towns.

The State Government said it will no longer issue permits within 2km of towns with a population of more than 1000 people and introduce legislation to remove existing permits in those areas. LGAQ president Paul Bell said the legislation was long overdue. "We should have had this certainty a long time ago but certainly appreciate that it's here now," he said. LGAQ took into consideration that communities have had concerns about mining leases over the top of things like cemeteries, industrial areas and encroaching into the residential and future residential development areas. Meanwhile, Queensland Conservation Council (QCC) spokesperson Toby Hutcheon said there was a place for gas mining, but not in prime agricultural land or near connected aquifers. Rural lobby group AgForce said the state government's commitment to ban mining exploration permits in urban areas is unfair for farmers and small towns.

However AgForce chief executive Robert Walker said the move sends a message that private landowners and remote communities will be treated differently. "It is OK to have an exclusion zone of two kilometres around a town, but a farmer can have a CSG well 100 metres from his front door - we don't believe that is fair," he said. Mr Walker said the Government sent the wrong message to people who live on properties or smaller towns where exploration is occurring. "They've obviously got concerns about mining close to townships and it shouldn't matter whether there are five people living in a township or five people living in a homestead - these same exclusion zones should apply. "It is a step backwards for farmers and a step backwards for people who live in towns of less than 1000 people," he said. AMEC spokesman Ross Musgrove said members are entitled to compensation but nothing is planned at this stage.

Regulation required for camp accommodation

majority of the influx of workers to the region are housed in camps throughout the districts; however Council has concerns about the effects this is having on infrastructure in Surat Basin towns. Western Downs Regional Council mayor Ray Brown said Council has no say in the location of camps on freehold land with a petroleum lease, and on top of this, as landowners are paid for the use of their land, the companies can basically make any use of that land. "We have asked the government to be able to have a say, because they are taking our water and dumping their waste here," Cr Brown said.

"It's not fair on our communities, and we don't know if our infrastructure can handle it. "The Western Downs Regional Council also voted against liquor licences in these camps but the liquor commission makes the final decision." Mayor Brown said camps outside of towns don't pay rates because they are classed as 'temporary' for anything up to eighteen months. "We have made a detailed submission to the government and coordinator-general, and ask to at least be asked for advice in applications," Cr Brown said. "I'm aware of at least nine camps above 50

personnel (in the western downs region), and the biggest is in Chinchilla. "But there are camps of up to 30 people on many of the drill rigs in the area too, so it's hard to judge with the smaller camps." Mayor Brown said he is still trying to get details of how many are out there. "We want this information for disaster management, the floods were a classic example, but what if there was a fire?," Cr Brown said. "Each place has their own plan, but we want to have a regional plan. "We also want to be able to advise against building these camps on bends in roads or on low land near watercourses, of which there are

two cases already, it's dangerous." Mayor Brown said Origin Energy and MCJV would be showing him their plans, and he wants more to do this. "I don't want great infrastructure to go out there (on the camps) like pools, lights, football fields etc," Cr Brown said. "The greatest asset we can have is to promote our community and infrastructure like water and waste and our facilities. "These companies should be contributing to the improvement of infrastructure in our towns." The camps are operated by private companies such as ESS, Ausco and Dominion as contractors to the major resource companies.

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Chinchilla PAGE 15

down to BUSINESS

Origin focused on agricultural productivity

here has been much discussion on the quality of Coal Seam Gas (CSG) water and the possibility of using it on properties in the region. Now in a trial by Origin, results will soon show if this will become a reality and a benefit for local farmers. Origin recently acquired an 1100 hectare property south west of Chinchilla which they will use for maintaining and improving the productive use of agricultural land. This will be used through the establishment of an ongoing irrigation and land management program at the location on Monreagh. As part of the program, treated CSG water from the neighbouring Talinga Water Treatment Facility will be used to irrigate a range of broad acre crops as well as support grazing activities. Origin land and environment manager Rebecca Pickering said the organisation was committed to maintaining and improving the productivity of agricultural land purchased to support CSG activities in the region. "We are committed to finding the best use for treated CSG water and the irrigation of agricultural crops is one sustainable method we are investigating," she said. "We are also striving to maintain the productivity of our land, purchased as part of our broader property portfolio to locate sites for current and future major infrastructure facilities, through ongoing farming and cropping activities. "Monreagh will continue to be managed as a highly productive property with the use of treated water, the farm will be able to produce crops even in times of drought, ensuring an ongoing supply of grain and fodder supplies to local consumers, as well as provide local employment opportunities." The property will also be developed to include around 12 producing CSG wells, providing a working example of how an intensive irrigation property can be integrated and productively co-exist with the CSG industry. It will then continue to be worked as an operational farm during this development period with around 400 hectares of wheat and oats planted this winter.

Origin have purchased the Monreagh property. The land will be used for an ongoing irrigation and land management program using CSG water from their neighbouring Talinga water treatment facility.

"We are also striving to maintain the productivity of our land, purchased as part of our broader property portfolio to locate sites for current and future major infrastructure facilities, through ongoing farming and cropping activities.

FRIENDS F OF EARTH OBJECT

riends of the Earth have brought out their big guns in a legal battle for the future of Xstrata's Wandoan Coal Project. FoE is objecting to the massive coal project, due to the emissions that will be produced by the mine and its impact on climate change. Friends of the Earth campaigner Dr Bradley Smith said the case was the first of its kind. "We want the Queensland Government to reject the mine, because of the massive carbon emissions and environmental impacts from the mine," he said. "We are taking this action to protect our climate and the environment." The group announced it will call a number of leading climate change experts as witnesses in the case to discuss the impact the mine would have on the environment. Included in the number of experts who are expected to testify against the mine are Potsdam Institute for Climate Impact Research in Germany senior research fellow Dr Malte Meinshausen, University of Queensland professor of marine studies and director of the Global Change Institute

Ove Hoegh-Guldberg, Griffith University emeritus professor Ian Lowe and American National Oceanic and Atmospheric Administration researcher Hans Hoegh-Guldberg. FoE is stating, based off Xstrata's Environmental Impact Statement, that the Wandoan mine will alone produce 0.15 per cent of global emissions. Dr Smith said he believed FoE had public opinion on their side. "The coal from the proposed mega mine at Wandoan will be exported and end up contributing to climate change," he said. "This mine will create upward of 1.3 billion tonnes of carbon emissions over 30 years which will contribute to impacts on the Great Barrier Reef thus leading to job losses and massive impacts on the Queensland economy. Xstrata Coal communications manager James Rickards said they remain committed to the Wandoan Coal project. “We believe the court will deal with the facts appropriately and remain hopeful the mining lease will be approved to allow us to commence construction in 2012,” Mr Rickards said. “The objection process is the mere final step in a long approvals process.”

Why Not Kate’s S E RV I C I N G M I N I N G a n d G A S C O M PA N I E S a n d B A S E D a t DA L B Y, Q U E E N S L A N D C A L L K AT E F O R . . . S A F E T Y S I G N AG E , H E AV Y V E H I C L E a n d EQUIPMENT SIGNAGE, MINING SPECIFIC BRANDING, and PPE

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Surat Basin NEWS Thursday 25 August 2011

BUSINESS

$1.2m QGC deal to provide rental help for eligible Gladstone youth pprentices and trainees across Gladstone now have access to a new rental assistance scheme thanks to the Gladstone Regional Council and Queensland Gas Company (QGC). As part of QGC's Queensland Curtis LNG Project, $1.2 million in rental assistance will be awarded to eligible youth, particularly apprentices and trainees. QGC will fund the scheme for a period of two years which will be administered by the council's community advisory service. The funds are designed to cover rental subsidies and salary for a council housing officer. Depending on individual circumstances, an apprentice could be given up to $80 a week. Gladstone Regional Council mayor Gail Sellers said the scheme was a practical support for youth workers in Gladstone. "About 2800 young apprentices are living in Gladstone and some of them, particularly those just starting out, may have trouble paying their rent because of heavy demand in the rental market," she said. "By providing rental supplements in this way, QGC and Council are not only helping retain our community's young people, but we are helping to build the workforce necessary to help our economy expand. "This scheme is a practical solution and a good example of how we can work with industry to benefit everybody." QCLNG general manager construction Joe Dougherty said the scheme was part of an overall integrated housing strategy as set out in the project's plan to manage social impact. "This scheme is a good way for QGC to work with council to ensure young apprentices are kept in Gladstone and available to move into work on the QCLNG Project," Mr Dougherty said. "It is a part of our work with the council and the community to ensure people in Gladstone get the best opportunity to work in Gladstone."

The QCLNG Project plan to manage social impact covers housing, local employment and economic development, road and marine traffic, and community health, safety and social infrastructure. The value of initiatives under the plan, developed over two years of consultation, assessment and studies, will exceed $150 million across the QCLNG Project from the Surat Basin to Gladstone. It is Queensland's first social impact management plan for a major project to be prepared under new Queensland Government policy. Apprentices seeking assistance must be under 25; a Gladstone resident for at least three years; must be in full-time employment; and must be in a current apprenticeship or traineeship. It is anticipated the program will be implemented by mid September 2011.

"This scheme is a practical solution and a good example of how we can work with industry to benefit everybody."

Jim Walker of QMI Solutions (seated left) and Greg Courts, QCLNG sign the QGC-QMI Solutions Business Capability pilot program agreement while Gary Christian of QMI Solutions (standing left) and Brett Smith, QGC look on.

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PAGE 17

down to BUSINESS

Companies address housing concerns The housing crisis across the Western Downs may soon be alleviated thanks to the Queensland Gas Company (QGC) planning to invest more than $60 million on housing and rental assistance. The Queensland Curtis LNG Project will provide up to 100 new houses for project staff and affordable housing and rental assistance in communities from Chinchilla to Gladstone as part of its integrated housing strategy. QGC's vice president corporate Brett Smith said the strategy has taken two years to develop in discussions with councils, government agencies, consultative committees and other LNG proponents to assess community needs. "We are confident the strategy has the right balance, flexibility and commitments to help manage different housing needs across the project area," Mr Smith said. "It also recognises the needs of those most at risk right now, including apprentices and trainees, low-income families and indigenous people." Western Downs Regional Council Mayor Ray Brown said he supports the strategy but urges all parties to be cautious of the accumulative affects. "There are things that will be fleshed out in the housing strategy, it will pick up on all the varying factors, the committee will go away with the different stakeholders including developers and find ways everyone can assist, if we can assist," he said. "It's very important though that developers are included because something needs ot be done and the state and federal governments aren't going ot put houses in our region at the snap of a finger so we need those private developers as well. An investment will also go into the gas fields of $32 million on up to 56 houses. Funding also included $5.2 million for affordable housing at various locations and $500,000 for community housing assistance for indigenous people and $200,000 over a period of two years for a council housing strategy consultant. At peak, QGC will accommodate up to 2000 construction workers in temporary accommodation camps at Dalby and Wandoan and on QGC's Kenya property,

about 30km south-west of Chinchilla. In Gladstone, they will invest up to $28 million to build 45 new homes, assist the Urban Land Development Authority to accelerate the development of more than 250 housing lots at the Clinton Estate and provide $5.7 million for affordable dwellings, including indigenous housing assistance. Cr Brown said it is also vital to ensure the type of housing is understood. "In the past other companies have stated things like 'we're putting in 280 housing units' but you need to understand what a housing unit is, is it a donga or a three bedroom house? â&#x20AC;Ś There's no point putting in 1 bedroom units if that's not

we need to ensure there is affordable housing for them and take care of everyone." The LNG industry is working with the Gladstone Regional Council and the Queensland Government to maximise the benefit of a total industry contribution of $13 million for affordable housing in Gladstone. In addition to the Queensland Curtis LNG project, the gas company has also awarded a $57 million contract to Hutchinson Builders in Toowoomba. This will result in 130 locals given employment to supply modular accommodation units for construction staff. QGC senior vice president Jim Knudson said he expects that 5000 jobs on average will be

The Queensland Curtis LNG Project will provide up to 100 new houses for project staff and affordable housing and rental assistance in communities from Chinchilla to Gladstone as part of its integrated housing strategy. what's required," he said. "The other important thing is that we will ensure everything is right for everyone because I still want this to be a community town, we want families, we want young people, we want pensioners we want everyone and

created during the construction phase and add $32 billion to Queensland's economy in the first decade, with nearly half of that addition to occur in the local region. "What we end up with is a body that looks after housing across the Western Downs and

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Downs Western il mayor c n u o C l Regiona n said he Ray Brow e strategy th o supports parties t ll a s e g r but u us of the io t u a c e b ts. tive affec la u m u c ac

Surat Basin NEWS Thursday 25 August 2011

those people understand that planning in crucial and we've got to get to the delivery stage but in a careful manner," Cr Brown said. The strategy will be looked at and presented back to council before Christmas. "Not only us but the proponents will have some major discussions between now and then," Cr Brown said. The GLNG consortium has also taken housing issues into consideration, and invested more than $5 million in the Roma community to construct affordable housing. As part of the company's housing strategy, they will give $4 million to the Maranoa Regional Council to construct affordable housing for low income earners in the Roma region. Santos, member of the GLNG consortium, community engagement manager John Phalen said the company was acting to offset the rising cost of rent for low income earners. "There was some fear that the resource industry would drive up rents in Roma," he said."$4 million will go to the Maranoa Regional Council to help supply new, affordable housing infrastructure in the Maranoa region. "There will be a significant number of new dwellings created from this, and there will be an application process to see the people who need them the most will get them."Mr Phalen said the initiative was not designed to house resource sector workers, but rather to ensure low income housing would remain available in the region. In a similar project in Rockhamption, the GLNG consortium will create a not-for-profit organization to run the development of these dwellings. In Maranoa the money will at this stage be given to the Council, however, Mr Phalen said they were considering the creation of a similar company in Roma. Picture: BG Group's QGC have extensive works across Queensland, including this field compressor station at their Windibri site.

down to BUSINESS

Rent in Surat Basin to rise Surat Basin renters are expected to feel the same financial pain as Gladstone residents where the cost of rent in some cases has gone up by more than 300%.

By Kieran Moran

espite State and Federal Government mitigation plans and promises, like Gladstone, the Surat Basin is expected to experience a housing crush that will push-out lower to middle income earners, pensioners and the unemployed. "There has been extremely strong demand for house and land packages and new homes in recent months," Surat Basin Homes director Colin West said. "We have had record enquiry levels in recent months." When British Gas first announced its financial investment decision (FID) in October 2010, investors began snapping up Gladstone housing in preparation for the coming liquefied natural gas (LNG) boom. When Santos announced their FID a few months later, investors tripled overnight with rental availability dropping below 1% within the month.

At this time no construction of LNG facilities had officially begun and despite government stipulations within the environmental impact statements (EIS), contractors to LNG companies were renting out homes and hotels across Gladstone and the same is now happening in the Surat Basin. Like the Surat Basin, Gladstone was told by the gas companies and the government that under the EIS, all companies will build workers camps to accommodate their workers, however, the first camp is not expected to be finished in Gladstone until October. "I was approached by a real-estate company to rent out my house to Bechtel," one Gladstone local who would like to remain anonymous said. "I resisted for as long as I could, but by the third approach they were offering $1000 a week where at the time I was only getting $330 a week. "How could I say no, it was just too good." At the time,The Surat Basin News asked the Queensland Coordinator General why companies were renting out houses despite assurances from both the companies and government that this

would not happen. "The conditions from the Coordinator-General's (CG) Report on the LNG project EISs apply to all companies involved in undertaking the project, including for example the proponent and any agent, contractor, subcontractor or licensee of the proponent," the spokesperson said." "Where Bechtel is acting as a contractor for LNG proponents, it must comply with CG Report conditions. "Furthermore, due to the State Government's Sustainable Resource Communities Policy, it can be reasonably expected that similar conditions will be placed on significant projects, be they in Gladstone or elsewhere in the future."However, those similar conditions changed in May this year when QGC told the Gladstone Regional Council that instead of building the EIS stipulated 280 houses they will now build 45. QGC said that the reasons for lowering the EIS stipulated required housing was that they didn't want to blow the market out when they leave. The Surat Basin is now being promised the same

from the government and industry, however, where the "EISs applied to all companies," and where companies "must comply with the Coordinator General report conditions," this no longer applies. "It's the accumulated effect, not the EIS," Western Downs Regional Council mayor Ray Brown said. "We are dealing with 37 companies with up to eighty projects and even though an EIS is an estimate it is not the bricks and mortar. "It's the social impact management plans we are concerned about in particular QGC, Origin and Xstrata and they have said so many houses will be built." "Currently there is no houses to rent in Chinchilla, Miles,Wandoan and Tara so it is clear we have an affordable housing issue," Mr Brown said. "It's alright for a company to say they will build houses, but why should my rate payers have to fund this. "Certainly, the proponents are probably saying they are screwing us, but I can tell you we are not bending over easily."

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down to BUSINESS

100% full R e s i d e n t s l i v i n g i n t h e We s t e r n D o w n s a r e n o s t r a n g e r s to the ever increasing resources industry; many have welcomed new business to town while others have shunned it.

egardless of opinion, staff working in those industries such as coal, gas, power and energy have in turn had a large impact on the economy. One of those has included filling the local accommodation sectors to capacity. Across towns such as Chinchilla, Dalby and Roma staff at various hotels, motels and motor inns have all said they are 100 per cent full Monday to Thursday

Creek Motel manager Jodie Spence said they are booked out usually three weeks in advance and also sit on 100 per cent Monday to Thursday. "We are usually full with workers from Origin or Santos and come the weekends it gets a bit quieter," she said. Around fifteen varying accommodation facilities were surveyed and all claimed they have been filled to capacity for the past few months, a majority

through Roma they've driven through Miles they get here and are out of luck," he said. "I've had people also come in at 9am asking for a room because they've had to sleep in their car overnight." That is something that is seen across the board including at Dalby. BY Katie Lingard editorial @suratbasin.com.au

centre has joined with local hotels and motels to create a weekly vacancy itinerary. "Basically they get all the occupancy details from the local venues and distribute a summary to each of them so when someone comes to a motel for a room and there isn't one, the person at that motel can check this itinerary and direct them to someone who might have a room spare," Mr McCallum said. "We usually ring around a bunch

rooms extended onto their venue to help out. "We started with 47 rooms and have already added a further 23, it's still not enough so we're now hoping to build another 20," she said. However some manger claim it is not just a result of incoming tradesmen. "There's certainly a lot of work going on in Roma, not only the oil and gas that everyone is blaming it on, but the airport is

Workers are camping in the Chinchilla showgrounds due to a lack of accommodation.

with industry trade workers. Chinchilla Club Hotel manager David McKillop said for the past few months the hotel has been full during the week but weekends tend to slow down. "We mostly fill with tradesmen and they all tend to go home on the weekends so come Friday we drop off a little bit," he said. It is a trend that seems to be all too common around the region. Roma's Best Western Bungil

of them to the point where they have to turn visitors away. Chinchilla White Gums Motor Inn manager Nev McCallum said too often he sees families pass through town expecting to find a room available, because they are unaware of how busy the district actually is. "We get the unsuspecting traveller, mum and dad and two kids rock up here at 6pm and can't get a bed, they've driven

Drovers Motor Inn manager Crystal Rush said they are 100 per cent full with waiting lists and she often sees travellers oblivious to the current situation attempt to get a room to no avail. Some venues have felt bad for those possible customers and, realising the situation is not going to get better, that they have taken it upon themselves to try and alleviate the situation. Chinchilla's tourist information

of places looking for them but this way its saves those phone calls and it saves them driving around with no hope because the information is right there." The system has only been running for a few weeks, but Mr McCallum said it is working ok, the only issue is that places are still simply too full. Roma Explorers Inn manager Mags Staley said the Inn has applied to have a further 20

being upgraded and there's roadwork's plus there's just our usual corporate conferences and various functions," Ms Staley said. Dalby's Homestead Motel manager Tali Rich said while they are full during the week, the capacity drops to about 25 to 50 per cent on weekends but that can also still sometimes be pretty full due to various functions on the weekend.

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Surat Basin NEWS Thursday 25 August 2011

PAGE 21

building the page23 page 24 page25 page26 Surat Basin Group gets industrial

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Surat Basin Conference

Flow-on effects for Wandoan

Drill rigs By Kim Ryan

s you drive throughout the Surat Basin you may notice signs pointing to various drill rigs. But what exactly is a drill rig and how does it work? A drilling rig is a machine that is used to create boreholes or shafts in the ground and operating one of these is a complex procedure. Drill rig operators require a high level of skill and attention as their decision making process is one of the only things that stops a well from collapsing. The machine itself can vary in size dependent on its different uses, some are large permanent structures, such as on offshore oil rigs, and others are portable.

A drill rig is often utilised when creating water wells, oil wells or extracting natural gas but is also used to take samples from the earth and test rock, soil and water properties. The equipment can undertake impressive tasks and is capable of drilling through thousands of metres of earth. To achieve a successful drill the operator takes on a variety of intricate and complex tasks and taps into a specialised knowledge. They need to be familiar with the hardware as there are specialty tools as well as the usual drill bit. The operator would also need to assemble the chosen tool, the piece of the equipment that is lowered into the well, for each particular task. Following assembly the drill bit would be lowered into the earth's crust and drilling fluid would pump through that drill into the well. Drilling fluid ensures the drill bit remains lubricated and also aids the removal of clippings from the bit to the surface. The choice of drilling fluid and its chemical composition would be altered to fit different well conditions - if this is not done effectively the well may not hold itself together. The drill operator is in charge of the rotation speed and pressure utilized to achieve the depth needed, it is a delicate task. At a certain stage in the operation the pipe section would end and the drill attachment would be switched to continue progression. The drilling fluid that comes out of the well is separated into clippings by a special machine that has a shaking motion.

What is a

g i r l l i dr work do How do they

What do they

From these samples a geologist will determine what kind of substance is being penetrated and if a different drill bit needs to be used and alert the operator. Depending on the purpose of the well the borehole will be finished in different ways. An exploratory well would be closed off with cement and a production well, such as one to extract oil, would be hooked to a pump system to keep making the extraction. A production well is also linked to storage such as an off-shore well and from there it is shipped to a processing plant. PAGE 22

Surat Basin NEWS Thursday 25 August 2011

BASIN page27 page 28 Easternwell support community

Effects for local businesses

Local real estate representative to manage industrial land tender in Chinchilla The Western Downs Regional Council (WDRC) recently announced the appointment of Bruce Holmes of Surat Basin Real Estate to manage the tender process of industrial land now available in booming Chinchilla. The sites consist of two vacant industrial lots (each 1892sqm in Malduf Street, Chinchilla) and a large industrial development site (3.298ha in Carmichael Street, Chinchilla) which has development approval for up to six industrial lots. Western Downs Regional Council chief executive officer Phil Berting said he was very pleased it was a local agent to be appointed. "We considered a large number of agents to appoint to manage the tender process of these valuable pieces of industrial land, and the proposal submitted by Bruce Holmes on behalf of Surat Basin Real Estate was the most advantageous to Council," Mr Berting said. Surat Basin Real Estate's Bruce Holmes believes there are considerable savings to be made on the industrial development site. "The WDRC recently increased its infrastructure charges, but as DA

approvals for the industrial development site are already in place, the charges for the proposed lots will be at the lower rate" Mr Holmes said. While the need for residential housing is at an all time high in Chinchilla, Mr Holmes said the need for commercial and industrial land is at least equal to that. "With 47 huge new projects from a diverse range of industries confirmed for the Surat Basin and with 80% of those projects being within an hour's drive of Chinchilla, there is already a huge demand for industrial and commercial development," Mr Holmes said. "The knock on affect of the confirmed projects is enormous as they are all needing support services. "Another Industrial Park in the region, developed by Surat Basin Developments, has already sold spectacularly well." Mr Holmes said tenants or buyers are usually either businesses who have been awarded contracts by the large resource

companies and needing to set up in the area, or they are local businesses who have grown to such an extent that they now need to move to larger premises.

Surat Basin Real Estate's Bruce Holmes believes there are considerable savings to be made on the industrial development site.

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Cockatoo Coal is an independent, ASX listed coal producer and explorer with interests in NSW and QLD.The company currently holds various interests in the Surat Basin region of South East Queensland, inclusive of the Kingaroy project. All projects, other than the Woori project, have not been fully explored and have further significant resource potential. Exploration activity is therefore forming the main focus on Cockatoo's activities at the moment. The company is currently operating four multipurpose drilling rigs in the Surat basin and drilling to further explore the resource potential of a number of projects. Cockatoo Coal has a 51% interest in a joint venture with Japanese trading house, Mitsui, which collectively controls a number of permits and licences for the Collingwood,Taroom and Woori exploration projects. Cockatoo Coal manages the three exploration projects on behalf of the joint venture.

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Cockatoo Coal acquired the Collingwood project near Wandoan and the Taroom project at the end of December 2010, but it has been known since the 1980s that there is a defined resource in the area. Exploration drilling currently underway in Taroom & Tin Hut Creek Further meetings with land owners across our projects in a more formal setting in coming months Ecologists and surveyors will be working in Taroom.

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building the BASIN

Surat Basin Conference provides local business focus Businesses in the Surat Basin can expect all the benefits of a capital city level conference at the upcoming Surat Basin Conference in Roma. Surat Basin Conference coordinator Rebecca Gleeson said the conference will provide the forum for a series of interactive panels. "We will have panels on energy, sustainable environments, capturing opportunities and sustainable communities," Ms Gleeson said. "These panels will cover topics such as how our cultural demographics are changing, how to manage infrastructure for sustainable communities and how to keep and attract a workforce, from an industry to business perspective." Those wishing to attend are required to register for the event, which will be held September 7-9. While most major decisions for projects in the region are announced from Brisbane, the conference will provide an opportunity for local delegates to gain information from the Energy group panel, with attendance from CEOs from Santos, Origin, Arrow Energy and QGC.

The CEOs will present as an interactive panel that will deliver and discuss the next phase of industry development, reportedly several times larger than the region has to date experienced. The conference will also deliver exclusive procurement details from conference

stakeholders, gather information and discuss regional impacts and strategies and continue to be recognised for supply opportunities. Ms Gleeson said many local businesses are experiencing unprecedented growth, that growth is expected to escalate

"We are pleased to be able to facilitate such an impressive line up of presenters and stakeholders all in one place at one time. sponsors Santos and Arrow Energy, so that local businesses can have access to contractors such as Fluor as the starting point of the tiered supply chain. Conference delegates and exhibitors will have access to the region's senior

substantially and how this will impact local infrastructure and local businesses has been recognised by the major projects and by government who are all confirmed to attend this regional industry engagement event.

Surat Basin NEWS Thursday 25 August 2011

"Sustainability of regional business is not just about access to opportunities, local businesses are now faced by staff retention issues," said Ms Gleeson. "We are pleased to be able to facilitate such an impressive line up of presenters and stakeholders all in one place at one time. "This is an unparalleled opportunity for any business wanting to grow and stay sustainable." Trade displays and networking opportunities will also be available at the event. Guest speaker, internationally renowned trend forecaster Bernard Salt, will also deliver an 'economic estimate' for the region to conference delegates. Ms Gleeson said Surat Basin Conference Engage Local, Deliver Global, organisers hope to have 300 delegates attend the event. For further details visit www.suratbasinconference.com.

PAGE 25

building the BASIN

Change of focus needed Communities across the Surat Basin do not only have to adjust to increased projects in the region, but local businesses have to change their focus to keep running.

"I did approach Cockatoo Coal at the beginning to see if I could work for them transporting workers, and the first person I spoke to said they didn't want local businesses to die, and would get back to me. "I didn't hear from them for quite a while so rang them again and the second person didn't really seem to care, it was just too bad." Mrs Clarris said camps were bypassing local businesses for supplies and it was getting too expensive for people not in the industry to live in the town. "Yes, they contribute money to organisations and clubs, but it's too small and not what we need," Mrs Clarris said. "It's killing our whole community. "People are moving away and all we've got to look forward to is being blanketed in coal dust." Mrs Clarris said that everyone had held hopes and dreams of the benefits from the companies coming in, but it wasn't eventuating. "We need businesses and with people moving away it's not viable for them anymore," Mrs Clarris said. "It would be great if the government said a certain percentage of workers should live here and they should be families.

"The older people are really going to suffer, and they just want to live out their days in their local community." Mrs Clarris said there had been a change in community spirit in Wandoan as well. "There's certainly been a decrease in the number of people that would normally volunteer," Mrs Clarris said. "People are starting to realise that the benefits just aren't coming in. "It's a bit scary actually, the prospects for people in town aren't good if you don't want to work in the mines." Cockatoo Coal external affairs manager Kelly Lofberg said they recognise that it is important to be a part of the community in which they operate and do support local businesses where ever possible. “For example we recently purchased cars and agricultural machinery through local deals,” Ms Lofberg said. “Engagement with the community to date has been focused on land owners within the tenement and talking with them about Cockatoo Coal’s general operations and timeline and arranging access for exploration drilling and baseline environmental studies. “We are committed to establishing a consultation process that is inclusive and respectful.” Xstrata Coal communications manager James Rickards said the recent removal of the Wandoan District Liaison Committee’s objection from the land court process was a pleasing outcome.“It shows we can work with people to resolve these matters,” Mr Rickards said.

"People are moving away and all we've got to look forward to is being blanketed in coal dust."

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Surat Basin NEWS Thursday 25 August 2011

3222839aaH

While some effects are clear, such as property owners selling up to resource companies, and some farmers downsizing their rural operations due to taking on offfarm work, the flow-on effects aren't as obvious but just as influential on rural communities. In many towns across the region, there are a multitude of changes occurring that are affecting the structure and community spirit. Wandoan resident Kaylene Clarris operates the school bus runs, and said she has gone from having a full bus run to nearly having to shut down the operation. "There are no more contract workers coming into town and properties are being sold," Mrs Clarris said.

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usinesses in Chinchilla predominantly associated with the rural industry are having to change their business plan or shut down. Chinchilla Carrying Company owners Ken and Nerida Dolbel have been in operation for 13 years, and have definitely noticed recent changes having an effect on their business. Mrs Dolbel said while she thinks (the resource industry) has been brilliant for the area, and certainly the town's gone ahead, the sale of properties has affected their cattle trucking business greatly. "Around 15 to 20 per cent of our customers have either sold their property or are now working off-farm, so now they're not operating to the capacity that they used to," Mrs Dolbel said. "It's just very quiet, we've been doing subcontract work for other companies. "We've shifted to other avenues like grain." Mrs Dolbel said everyone says how good the gas is, and it is if you're involved in the industry, but not for businesses associated with the rural industry. "I'm hoping it won't (get worse), I really don't know how big it (the resource industry) is going to get," Mrs Dolbel said.

"Ken's looking at approaching the companies themselves for work with the trucks as well." Scoullers Saddlery owners John and Lara Dolling were given pre warning on the effects the resource industry might have on their business, and have been tracking the changes. Mr Dolling said they were told right from the word go that the resource companies would damage the rural industry. "All our towns are set up to supply the rural industry, so when all your main clientele get bought out your business suffers," Mr Dolling said. "We've kept an eye on it as we were prewarned. "I would say we are down $168,000 yearly from clients that have been bought out and moved on." Mr Dolling said they have adapted to try and cater for what the resource companies may need, like work wear. "At the moment most of the companies deal out of town," Mr Dolling said. "We do have a couple (of companies) who have replaced those they've taken out. "We also have some companies that take eighteen months to pay," Mr Dolling said a lot of businesses haven't taken on strategies to cater for the resource industry and haven't realized how many of their customers have gone.

"The resource companies are going to have to step up and start working with local businesses or the businesses will shut down or possibly take legal action," Mr Dolling said. Both Mr and Mrs Dolling have also noticed the effect on the community, commenting that community organizations

in some cases can't fill a committee, as people either aren't interested or don't have time after working a twelve hour day to go to a meeting. The trends from Chinchilla are not an isolated case, and are being noticed across the Surat Basin.

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editorial @suratbasin.com.au

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PAGE 27

building the BASIN Easternwell launches new community grants program More than $40,000 worth of community grants will be awarded to local community groups, clubs, associations and committees over the next year thanks to Easternwell. Australia's leading integrated energy and mining service provider opened its submissions on August 23 with a specific focus on the Surat Basin. The grants were established to provide financial and social assistance to the regions where the company has operations. The Easternwell Community Grants (ECG) program aims to build diverse and conected communities in the areas of health, education, training, safety,

community, youth and indigenous. Projects such as purchasing of equipment, contributing to building or infrastructure and development of training programs are all examples of projects which will be looked upon favourably during assessment by the selection panel. Easternwell chief executive officer Troy Campbell said the company is committed to ensuring that allocated funding enables communities to deliver positive outcomes and help improve the lives of its residents. "The ECG program is one way in which we can make a connection with Easternwell's close neighbours by assisting groups which

are searching for ways to provide lasting benefits to their community," he said. "Easternwell is about breaking new ground and finding better solutions ... as a business, we are committed to not only delivering efficient, responsive and cost effective solutions for our clients but in the communities where we conduct business." The Easternwell Community Grants program will have two rounds assessed biannually in September and March. Eligible groups may apply for funding up to $2,000. Submission Forms for round one must be received by September 23 2011.

For more information visit www.easternwell.com.au/ourcommunity.

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PAGE 28

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PAGE 29

PLACES page 30 page 31 page 32 page 33 Xstrata meet with fund recipients

Dalby business breakfast

New truck stop for Roma

Construction in Wilsonton

Community rebuild with Xstrata Coal

strata Coal recently hosted a morning tea to acknowledge the rebuilding efforts of flood-affected community groups in the Taroom area. The financial assistance of more than $200,000 from Xstrata Coal's Flood Relief and Rebuilding Fund helped communities get back on their feet. Recipients of funding support included the Lions Club, Taroom District Development Association, Taroom District Fishing Restocking Club, Golf Club, Kindergarten, Taroom Polocrosse, Taroom Shire Cancer and Palliative Care, Taroom State School and the Taroom Tennis Club. Xstrata Coal general manager for the Southern Region Bill McKinstrey said he was impressed by how the community had worked together to recover from the

$3 million was contributed by Xstrata Coal to flood recovery and rebuilding projects to almost 30 community organisations in the region and around $5 million to flood recovery and rebuilding projects across Queensland. "While many people throughout Queensland continue to rebuild and recover following the floods, we hope that this contribution highlights our commitment to supporting communities in the regions in which we operate and has helped ease some of the challenges that were faced." Of the $5 million contribution, $3 million was contributed by Xstrata Coal to flood recovery and rebuilding projects across Queensland, which follows an initial $2 million donation to

Since the establishment of the fund, Xstrata Coal has contributed around $300,000 to almost 30 community organisations in the region flood events in late 2010 and early 2011. "The Flood Fund was set up to provide financial support for community organisations in and around the areas of Taroom, Miles, Condamine, Chinchilla and Dalby that were adversely affected by the floods," Mr McKinstrey said. "Xstrata Coal is pleased to meet with Taroom community groups and organisations to hear about the rebuilding progress in and around the local community. "Since the establishment of the fund, Xstrata Coal has contributed around $300,000 PAGE 30

the Premier's Flood Relief Fund. Xstrata Coal allocated $100,000 to the Banana Shire Council to assist with the restoration of flood-damaged local roads and the Taroom airstrip. Taroom District Development Association President Greg Hill said Xstrata Coal's support had been essential to recovery efforts on the ground. "The availability of funding from organisations like Xstrata Coal has meant that people in our community have been able to move forward in their day-today lives," Mr Hill said.

"As part of our organisation's long-term plan, Xstrata Coal has enabled us to not only repair the Dawson River Walk but also upgrade it for the benefit of the local community and other visitors to the area." The Dawson River Walk is a recreational walking track along the Dawson River in Taroom where local people enjoy walking and bike riding. The walk was washed away in the floods. The Xstrata Coal funded upgrade is part one of a four stage plan to upgrade the existing walk between the Taroom District Development Association and the Banana Shire Council. Xstrata Coal is proposing to develop the Wandoan Coal Project at Wandoan, an opencut thermal coal mine, for which conditional State and Federal environmental approval has been granted.

Xstrata Coal Queensland, Wandoan Coal Project, Project Manager Phil Price, Community Relations Officer Adrianna Webster, General Manager â&#x20AC;&#x201C; Southern Region Bill McKinstrey, Banana Shire Councillor Vaughn Becker, Community Relations Liaison Officer Naomi Golden. Photo contributed.

Taroom District Development Association Doug Adam, Dawson Jockey Club Graham Rewald, Phil Price. Photo contributed.

Thomas Hayes, Chelsea Rose, Georgie Lamb, Stacey Tweed, Allan Harris,Taroom SES (background), Gai Durham Principal,Taroom State School, Dayna-Therese McCorley.

Recipients of the Xstrata Coal Flood Relief and Rebuilding Fund with representatives from Xstrata Coal Queensland. Photo contributed.

Surat Basin NEWS Thursday 25 August 2011

& FACES page34 page35 Santos informs

Wandoan trainee receives grant

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concerns with water and hydraulic fracturing, or fraccing. "The coal seam gas industry in Queensland does not use chemicals that are known to cause cancer and supports the government ban on using BTEX, or benzene, toluene, ethylbenzene and xylene," Mr Knudsen said. "Notwithstanding, BTEX occurs naturally in oil and gas and unnaturally if you smoke cigarettes or breathe motor vehicle or aircraft emissions or use axle grease - it is not unique to coal seam gas." QGC supplied about 20 per cent of Queensland's gas demand in 2010. Natural gas from coal seams now forms more than 70 per cent of the total gas produced in Queensland.

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Surat Basin NEWS Thursday 25 August 2011

Surat Basin News published by Chinchilla Newspapers Pty Ltd 12 Mayne Street Chinchilla General Manager David Richardson

Gavin Walton of CEC and Brendan Ostwald at the Chamber breakfast. Photo: Debbie Beaven/Dalby Herald.

Council to ensure Dalby would benefit from the economic benefits associated with our construction workforce. "And yesterday (Thursday August 18) you might have heard that QGC has awarded a $57 million contract to Hutchinson Builders in Toowoomba which will result in 130 locals being employed to supply modular accommodation units for our construction staff." With 200 current vacancies and an expected 5000 jobs on average during construction, QGC's operations will contribute to the housing issue across the region. Mr Knudsen also detailed the progress being made on the Queensland Curtis LNG project, opportunities for local businesses, and spoke on public

on line www.issuu.com\suratbasinnews

QGC Senior vice president Jim Knudsen, guest speaker at the Breakfast organised by the Dalby Chamber of Commerce. Photo: Debbie Beaven/Dalby Herald.

Senior vice president of QGC Jim Knudsen was guest of the Dalby Chamber of Commerce Business Breakfast at the Dalby RSL recently. About 100 people from all parts of the Dalby business and mining industries listened to the plans QGC had for coal seam gas projects for the region. A number of questions came from landowners in the audience concerned with the lack of communication and misinformation in the community about the CSG industry. Mr Knudsen said QGC has a fundamental belief in the long-term coexistence of the gas industry and agriculture. "Despite what you sometimes hear, it is possible for these industries to work side-by-side and to our mutual benefit," Mr Knudsen said. "Much has been said about our relationship with landholders and much of it is surprising to us because it does not reflect our experience on the ground. "I am the first to agree that we have made mistakes and that we should have done some things better. But the rap we get does not match reality." Mr Knudsen said one of his company's major priorities was addressing the region's housing crisis. "We presently have about 60 people in a camp in the industrial park up the road and this will grow to 550 by the end of the year," Mr Knudsen said. "We used this existing camp at the request of the Western Downs Regional

PAGE 31

places and FACES Truckies across the west will be delighted to note there is a brand new truck stop on the edge of Roma.

Caltex Roma

BY Derek Barry

editorial @suratbasin.com.au

The Caltex Roma diesel truck stop was officially opened by Maranoa mayor Rob Loughnan earlier this month and is now open for business. The truck stop was built by FK Gardner & Sons Group and leased to Caltex. Situated on Billy Bob Way it has easy access to the Warrego Highway and Carnarvon Highway (via Roma Downs Road) and serves the fuel supply needs of the growing number of trucks, four wheel drives, and light commercials in the region. The facility is open to the public and allows any diesel vehicle a place to fuel up 24 hours a day, 7 days a week, paying by eftpos or account card. With 140,000 litres of diesel storage, the facility is well equipped to service the increasing demand for diesel stemming from the growing energy resources

PAGE 32

industry in the region, as well as traditionally strong agricultural and grazing industry including trucks attending the nearby saleyards. The unmanned Diesel Stop gives a place where trucks and four wheel drives can come and fill up at any time of the day or night at Roma East Industrial Estate, next door to Enerflex Services. The long run-up caters for large vehicles without the need to decouple for fueling up in town. FK Gardner & Sons Group is also constructing a base for their Roma region operations on the property, expected to be open by the end of the year.

Maranoa mayor Rob Loughnan cuts the tape to officially open the new Caltex diesel truck stop on Billy Bob Way. Photo Derek Barry / The Western Star

Surat Basin NEWS Thursday 25 August 2011

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currently non-existent in the Toowoomba market. FKG expects to announce the first business who will be establishing in the estate in the coming weeks. Mr Hunter also believes that another competitive advantage for businesses basing their operations out of Toowoomba is the cost of land. "We are able to provide our clients with a cost advantage as we offer $110 per square metre compared to Ipswich or the Trade Coast which are up around the $300 to $500 square metre rate," he said.

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places and FACES All welcome to Santos GLNG Project pipeline community session Santos GLNG Project chief executive officer Mark Macfarlane and senior members from his team have been travelling through various locations providing community information sessions. Mr Macfarlane said the sessions keep residents informed about how the pipeline will be constructed while minimising impacts on local communities. "We have been in regular communication with the regional councils and landholders along with the pipeline to keep the community abreast of our developments," he said. "We have recently lodged our environmental management plan with the Department of Environment and Research Management (DERM) and would like to explain to the community how we plan to develop the pipeline while mitigating potential impacts." The community engagement sessions provide an overall update on the GLNG Project, show the pipeline route as well as display the pipeline route. "Our aim is to work with landholders to ensure

The past few days residents across the Western Downs have been filling their minds with facts and updates on the construction of the GLNG underground gas transmission pipeline.

there is minimal impact and this involves having strategies in place to manage such things as noise and dust, weed management, traffic and transport and construction workers," Mr Macfarlane said. Mr Macfarlane said the 420km pipeline would stretch from the Fairview gas fields to the LNG facility on Curtis Island, Gladstone. "The pipeline will start about 40km east of Injune and travels north up the eastern side of Arcadia Valley," he said. It will approach Gladstone from the south west, entering the Gladstone State Development Area and cross Port Curtis between Friend Point and Laird Point." Mr Macfarlane said the Santos GLNG Project worked extremely hard to ensure it had good relations with landholders and local communities. Community information sessions have already visited the Moura Kianga Memorial Hall, Biloela Civic Centre, Calliope Community Centre and Arcadia Valley School via Injune.The final session will be held today at the Injune Memorial Hall from 12.30pm.

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Phone: (07) 3265 5570 - Mobile: 0401 328 478 Fax: (07) 3865 4951 Email: admin@sidebysidescaffolding.com.au Website: www.sidebysidescaffolding.com.au

Specialising in Electrical, Refrigeration, Airconditioning & Instrumentation

Phone Noel on 0427 628 107

2230381ad

28-46 Murilla St Miles - Phone 4727 1488

28-46 Murilla St Miles - Ph 4627 1488

Phone 07 5549 2144 Fax 07 5549 0261 steve@dowells.com.au corey@dowells.com.au

Situated in the heart of the Surat Basin

Specialising in Bulk Sales of • Road base • Crusher Dust • Aggregates & Deco Products

Phone 07 4164 1204

Email: david@fortrusquarries.com.au

Surat Basin NEWS Thursday 25 August 2011

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

TRADES and SERVICES engineering & mechanical services

pre cast concrete products

marketing

traffic control

TRAFFIC CONTROL LOCAL, CENTRAL & RURAL AREAS Specialising in • Traffic control designs • Traffic control permits Qualified Traffic Controllers Level 1,2,3,4

• Field Service Units/Mine Complient • Workshop • Component Rebuilds/Clean Room • Diesel Fitters/Boilermakers

make your business stand out in the Surat Basin Call Laurell on 4662 7368 for an information pack e: advertise@suratbasin.com.au

equipment hire

Phone 07 5549 0267 Fax 07 5549 0261 andrew@dowellstraffic.com.au

wash down

22,500L Holding Tanks Waste water treatment plants Class ‘A’ quality water Pre cast slabs Pits - chambers Retaining wall panels Products made to your design

www.toowoombatanks.com.au toowoombatanks@tpg.com.au Neil Martin: 0409 279 327

Access Portables Fencing Power & Air Pumps More on the horizon…

CHINCHILLA ROMA WEB SCOTT BURKE

10-12 Cooper St 160 Raglan St www.onsite.com.au

0459 200 170

for sale

Do you need portable sleeping accommodation?

real estate elderschinchilla.com.au

mechanical repairs

SERVICING THE SURAT BASIN COAL MINES & GAS FIELDS

MECHANICAL FIELD SERVICE & REPAIRS ON ALL TYPES OF EQUIPMENT

LAWRENCE PERKINS P O Box 944 Chinchilla Q 4413

mail@diverseindustries.com.au www.diverseindustries.com.au

Tel - 0409 570 783 www.sharpescorner.com.au

investment opportunities Buying - Selling Joint Ventures • Sovereign Park Estate • Bottle Tree Estate • Surat Basin Industrial Park • The Pines Estate Miles C o n t a c t u s fo r a l l y o u r I n d u s t r i a l , Commercial, Retail & Residential needs Warrego Hwy Chinchilla P. 4669 1066 F. 4669 1460 Warren Daniells 0427 468 591 Jim Strongman 0418 734 256

sales@suratbasindevelopments.com.au www.suratbasindevelopments.com.au

•Property Management

DIVERSE INDUSTRIES AUSTRALIA PTY LTD

0411 309 221

Sharpe Com Au specialize in the supply of sturdy, steel framed, ex-government buildings that are suited to rough conditions in remote areas. A variety of buildings are now available, from kitchens, site offices and ablution blocks, through to accommodation for one person or a large camp. Go to www.sharpescorner.com.au to see the full range.

Elders Real Estate Chinchilla

plant hire

•Sales

Have you checked your vehicle? Kev

Owner/Principal

Ph 4662 8555

0409 466 233

114 Heeney St

Livestock

0409 033 988

0417 511 455 I 0407 148 803 water cartage

real estate

Ray White Roma Joy Byrnes - Principal & Sales 0428 223 380 joy.byrnes@raywhite.com Kerri Collins - Sales & Marketing 0428 153 720 kerri.collins@raywhite.com Anita Zahner - Office Manager Jessica Stansbie - Property Manager Brooke Farmer Administration for Property Manager Maree Mitchell - Reception Melinda Burke - Finance Morgan Cloherty - Trainee

• 9, 12 and 24,000 Litre Tanks available • Body Truck to Semi Loads • Using Chinchilla Town Water

Dan Cross 0429 691 309 PO Box 322 Chinchilla • dncross@bigpond.net.au

water cartage

McInnis Water Cartage

www.raywhite.com 07 4622 2688

Dymar (Roma) Plant Hire Pty Ltd 160 Raglan Street, Roma Ph: 4622 7935, Fax: 4622 7936 Mob: 0418 746 748 or 0419 776 136

Dozers, Scrapers, Graders Backhoes 4x4, 4 in 1 Bucket, Forks, Extendahoe, Sideshift

Call Your Local Vehicle Machinery Hygiene Inspectors 3248663aaH

With the district thriving, the Roma office has been exhibiting success across all fronts of the property business. For an office that specialises in residential and small acreage sales, commercial and business sales, industrial sales and property management, contact Joy and her team at Ray White Roma.

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.

• Vehicle Inspections (Weed Hygiene) • Heavy Vehicles & All types of Machinery • 24hr Service 7 Days Week • Vehicle Wash Downs • Mobile Pressure Cleaning Unit. Preventing the spread of weeds is difﬁcult, but there are many ways you can help protect our region

•Livestock Tess

DOWNS WASH DOWNS & VEHICLE INSPECTIONS

Roma

ABN 13 251 942 807

■ Civil construction

■ 9m3 Tipper

■ Road works

■ 5T Excavator

■ Dust control

■ Bobcat

■ Domestic water

■ All 300/450/600 attachments

* Reasonable Rates * Will travel * Free Quotes

Mal McInnis 0419 825 419 E: mcinniswater@hotmail.com

real estate

water cartage

Rob Davidson Water Carting Phone 4669 1790

Shop 2, 1 Warrego Hwy, Chinchilla www.suratbasinrealestate.com.au PAM

VICKI

RESIDENTIAL COMMERCIAL & INDUSTRIAL

WARREN

BRUCE

Our team of experienced professionals have over 58 years of combined real estate experience. P: 07 4669 1790 F: 07 4662 7250

Shop 2, 1 Warrego Hwy Chinchilla Q 4413

www.suratbasinrealestate.com.au

Surat Basin NEWS Thursday 25 August 2011

• 12,000 or 24,000 litre water • Can carry 20ft containers (pins)

FAMILY OWNED BUSINESS SERVICING CHINCHILLA FOR 15 YEARS

Phone 0427 627 084 or 0438 612 734 PAGE 35

places and FACES

Wandoan trainee receives support School Captain of Wandoan State School Lachlan Baker is excelling in his school-based traineeship for a Certificate II in Engineering with local business G.J. O'Mara Engineering. This traineeship has now been supported with a $7500 grant through Xstrata Coal's Corporate Social Investment partnership with Education Queensland and the Queensland Minerals and Energy Academy (QMEA). Xstrata Coal's Wandoan Coal Project executive general manager Steve Bridger said the Xstrata Coal partnership will provide $720,000 over three years to Wandoan and Taroom State Schools and Miles State High School. "We are very pleased to be able to provide new education and training opportunities for local students like (Back L-R) Wandoan State High School's Simon Pendergast, Louise Oakman and Bryan Power with Lachlan, through our partnership (Front L-R) Xstrata Coal's Kate Campbell, and Lachlan and his mother Tania Baker. program," Mr Bridger said. "To date, initiatives supported by the partnership have included the Pendergast and Louise Oakman, with showing so much support for our development of a new science support from G.J. O'Mara Engineering school and we look forward to curriculum and the upgrade of a new and Xstrata Coal. continuing this partnership into the science laboratory at Wandoan State future." Lachlan Baker thanked Xstrata Coal " We a r e v e r y p l e a s e d t o b e a b l e t o p r o v i d e for the financial support, which assisted him in undertaking the new education and training opportunities f o r l o c a l s t u d e n t s l i k e L a c h l a n , t h r o u g h o u r training. "I am enjoying the work I do through partnership program," Mr Bridger said. the traineeship. I hope that Xstrata can help others like me in the future," he said. School." "This is a fine example of what can be Wandoan State School principal Bryan Graham O'Mara, owner of GJ achieved by the education sector and Power said the school-based traineeship industry working together," Mr Power O'Mara Engineering, praised Lachlan grant initiative was a result of the hard said. as a quick learner and a good work put in by Lachlan's teachers Simon "We are pleased that Xstrata Coal is student.

Next time in the Surat Basin News

ONE LUCKY LOC AL TRAINEE IS EXPERIENCING THE BENEFITS OF HAVING XSTRATA IN HIS COMMUNITY.

ISSN 1835-6400

Water on tap A review of water coming from QGC to the Chinchilla Weir.

Cultural Heritage An overview of the groups involved, their history, and how projects manage it.

Surat Basin NEWS

to get a fix on the entire surat basin region purchase your copy of the Surat Basin News from these selected newsagents

$1. 10 T inc GS

PAGE 36

chinchilla casket & news roma newsagency dalby newsagency calliope news kin kora newsxpress - gladstone sun valley newsxpress - gladstone tannum news boyne newsagency moura news wilsonton news - toowoomba margaret st news - toowoomba toowoomba chronicle office

Phone 07 4662 7368 e: advertise@suratbasin.com.au e: editorial@suratbasin.com.au 12 Mayne Street PO Box 138 Chinchilla Q4413

Extreme Value For Money

Inserts into Biloela Central Telegraph Blackwater Herald Emerald CQ News The Observer Gladstone Rockhampton Bulletin

Linking Suppliers and Retailers to Industry and Employees To book your advertising contact us today Gladstone p 4970 3030 e advertising@gladstoneobserver.com.au Biloela p 4992 1533 e advertising@centraltelegraph.com.au Emerald p 4980 0800 e advertising@cqnews.com.au Rockhampton p 4930 4202 e tmbads@capnews.com.au Have an interesting story, contact our editorial team

Gladstone

p David Sparkes 4970 3025 p Shari Allen 4970 3085 e newsroom@gladstoneobserver.com.au Biloela p 4992 1533 e newsroom@centraltelegraph.com.au Emerald p 4980 0800 e news@cqnews.com.au Rockhampton p 4930 4283 e tmbully@capnews.com.au 4109397aj

Surat Basin NEWS Thursday 25 August 2011