Surat Basin News by Chinchilla Newspapers Pty Ltd

Surat BasinNEWS Thursday 25 June 2009

32 pages $1.00 inc GST

SANTOS SPROUTS INNOVATION

The CSG company’s solution to waste water overflow on Pages 28-29

Race north heats up This quarter, the four aspirants out to create a multi-billiondollar LNG export industry in Queensland all claimed milestone achievements in the race to Gladstone. While the Surat Basin may still be four years out from linking to an LNG plant at Curtis Island, activity on the province’s gas fields is at fever pitch. Check inside to see how the LNG race is unfolding.

BG GROUP - P13

ARROW - P13

ORIGIN - P16

SANTOS - P18

PHENOMENA BY John Farmer editorial @suratbasin.com.au

Richard Krause has in his lifetime seen a lot of regions swept along by a wave of new industry. He was raised in the Bowen Basin when coal was being consumed faster than it could be mined; he helped propel Mackay through a surge of new industry and investment. Mr Krause even brought resort golf courses to cities where the only greens were found in the public domain. So from his new job as CEO of the Surat Basin Corporation, he was not expecting to be overawed by the potential of an energy province only just being realised. Three months into the job, Mr Krause now knows that was never going to be the case. "There is such huge potential — potential that has never before been repeated in history — in this relatively restricted

CONFERENCE PREVIEW - P4 area,” he said. “It's a one off phenomena — a once in a lifetime phenomena.” Mr Krause said the extent of the activity across the Surat Basin's resource rich country would be on show at the 2009 Surat Basin Energy Conference, opening on August 19 in Dalby. As CEO of the host body, Mr Krause is one of the key players organising the second installment of the conference, which last year attracted close to 600 investors, business owners and executives to Chinchilla. He said two months out hun-

dreds of potential delegates had already expressed interest, sponsors had thrown their support behind the event and most of the major players were committed. Mr Krause said the Surat Basin's resilience in the face of the global economic downturn had intensified an already healthy interest in the region. “We've got a huge amount of interest coming from outside the region from people who are curious to see why we're still flourishing out here,” Mr Krause said.

“It's a one off phenomena — a once in a lifetime phenomena.” — Surat Basin Corporation CEO Richard Krause — www.suratbasin.com.au —

Surat Basin Corporation CEO Richard Krause has been amazed by the level of activity across the Surat Basin.

LOCAL NEWS

Surat Basin NEWS The Team

INSIDE THIS EDITION: Surat Basin News

Surat Basin News

EAST COAST EXPANSION Enerflex outgrows Brisbane headquarter headquarters

SANTOS SECURES CUSTOMER Twenty-year deal has LNG aspirant racing

RESOURCES

LOCAL NEWS

CAPITAL TO MOVE: Northern Energy’s $12 million capital raising moves Elimatta another step forward.

FREE TO OWN: QGC landmark event now free to own on DVD from your local newspaper.

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David Richardson General Manager

Laurell Ison Advertising

Arrow rolls into Dalby Showgrounds Arrow Energy turned the Dalby Showgrounds into a temporary gas field in April as it hosted a two-day community information display. PAGES 7

Planning for the 2009 conference The Surat Basin Corporation is making good progress on the upcoming 2009 Surat Basin Energy Conference, which this year is being held at

Beth Walker Graphic Design

John Farmer Journalist

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

Drama comes to DVD D rama at the Gasfields has become Drama at your local newspaper — on DVD. Queensland Gas Company's captivating Drama at the Gasfields returned to Berwyndale South this year to retrace how Chinchilla boy Pete Murray rose to music superstardom. To celebrate the success of the event, headlined by the La Boite Theatre Company's production 'Opportunity', QGC has released a commemorative DVD available free at the Chinchilla News, Western Star and Dalby Herald offices. The seven minute film captures the essence of the day including scenes from Opportunity, based on the life of Pete. Regional editor John Farmer said the DVDs had proved popular with locals since released early this month. “Drama at the Gasfields is a great celebration of our

local culture and also our future, considering the role a company like QGC is having on our economy, employment and industrial landscape,” he said. “The latest installment not only brought Pete Murray's story to life on stage, but brought Pete back to Chinchilla for the first time in a long. “If anything deserves to be given the full DVD treatment, it's Drama at the Gasfields 2009.” With 2500 people keen to see if they made it on to film, make sure you are quick to receive your free copy.

Wandoan ready for change

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Chinchilla News administration officer Ashleigh Stark and th free Drama at the Gasfields DVDs.

Gas companies join forces to train Indigenous students

K ith B k

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Linc with local crews Linc Energy invited local emergency crews on to its site last month to put its emergency management to the test. PAGE 22

Arrow open for business in Dalby Arrow Energy broke ground at its new, $7.5 million office complex in Dalby this month. To be completed in 2010, the office will accommodate Arrow’s expanding workforce.

hinchilla's on a real estate high at the moment, just ask the newest member of Surat Basin Homes'

sales team. New home consultant Di Ewen, who joined the locallybased builders from Ray White Rural two months ago, said demand for new homes had taken off since she made her career change. “In just the short time I've been here we've had a lot of enquiries from all across the board — first home buyers, second home buyers, local and out of town investors,” she said. “Locals and people from away seem generally interested in what is happening out here. “They've got the mindset things are moving forward.” The Surat Basin Homes construction team has been designing and building new homes for five years. Clients choose from a growing range of designs, which can be purchased as part of a house and land package. Miss Ewen admits she has had to get used to selling a home yet to be built, a task made easier by the support of

The Surat Basin Homes sales team of Colin West, Di Ewen and Steven Bradford. the experienced Surat Basin Homes team. “It's good and it's also challenging because it is a different area of real estate for me.” “Fortunately, I've had a very supportive team behind me.” With Steven Bradford also joining Surat Basin Homes in recent months, Miss Ewen said the sales team had retained its exceptional customer service despite a growing client-base. “We're committed to providing the highest level of customer support to all our clients,” she said. “We provide everything they

want to meet their needs and surpass their expectations.” Sales manager Colin West said Surat Basin Homes’ fixed price contracts appealed to investors and homeowners, which helped explained the growing demand. “A lot of people realise there could be extras when building a

home,” he said. “Our flexible designs and ou fixed price contracts appeal to the complete spectrum — from first and second home owners t investors. “They go in confident they are going to get a quality product with none of the extra costs.”

“Locals and people from away seem generally interested in what is happening out here.” — Surat Basin Homes’ Di Ewen

Design, create or hire at Jonker Engineering Recognising the relationship between heavy earthmoving equipment and heavy engineering, the Jonker Group has diversified and established J k E i i i D lb

and one of eastern Australia's largest CNC milling machines. To meet client demand, Jonker Engineering's capabilities have been widened to i l d

moving equipment, attachments and associated components Jonker Engineering's turn around time in addition to i li

• Dozers • Articulated Dump Trucks • Wheel Loaders • Off Highway Trucks • Graders W T k

RESOURCES:

COMPANIES:

Origin Energy shifts its second round of driver training courses into gear. The Surat Basin Corporation unveils plans for the 2009 Surat Basin Energy Conference. Arrow Energy rolls into Dalby to set up a very temporary gas field and Haystack farmers get a stay of execution.

The four proponents behind Queensland’s LNG industry mark milestone announcements around their projects. Syntech Resources gets a $250 million boost to begin work on Cameby Downs and Carbon Energy begins planning for its next stage.

Surat Basin Homes grows in size to keep up with client demand. Bullivants continues to enhance its key role in safe workplaces. Enerflex begins a major east coast expansion and Arrow Energy starts construction of its $7.5 million office complex in Dalby.

Surat Basin News

A GREEN, VIABLE SOLUTION

Surat Basin News

Santos has coal seam water flowing

THE PEOPLE

INFRASTRUCTURE

PAGE 26

Surat gas linked to south Epic and AGL joined together to open a new gas pipeline network linking Surat Basin coal seam gas with the massive markets of the south. PAGE 27

Surat Basin News is not a necessity. It was born out of a passion for Australia's fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin. Surat Basin News will allow local businesses to network and communicate with everyone in the 300 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region's future while profiling the colourful characters that define our communities.

“Fundamentally, I think it’s a belief in the assets of the company... (and) a belief in the company.”

er value so we'll likely be run ning Maryborough in paralle with the early development o Elimatta.” Northern Energy plans to open a five million tonnes a year coal mine from Elimatta south-west of Wandoan, in lin with the opening of vital infr structure — the Surat Basin Railway and Wiggins Island Coal Terminal. Mr Barker said proceeds from the capital raising woul allow the company to provide further cash backing for bank guarantees to underwrite fea sibility, engineering and desi studies for the proposed port and rail expansions. “The challenge for Elimatt and indeed the whole Wando region is infrastructure,” he said. Northern Energy last mon announced the marketable reserve at Elimatta, southwest of Wandoan, had increased 54 per cent from 69 million tonnes to 104 million tonnes. That was followed by the lodging of a mining lease application. Mr Barker said he was con fident in the financial viabili of the Elimatta project even with the Rudd Government's proposed emissions trading scheme. “Whether it makes it unvi able or not, that we're going have to assess over the next

www.suratbasin.com.au

THE NEWS:

The Website

The Vision

Northern Energy managing director is readying his company for the move from explorer to coal producer.

N th

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

Syntech ready to unwrap Syntech Resources next month starts work on the $250 million Cameby Downs coal mine between Miles and Chinchilla.

orthern Energy now has the financial backing to move its Surat Basin project forward after raising $12 million this month. Managing director Keith Barker said the strong interest around the placement of 22 million ordinary shares reflected confidence in the company and Surat Basin resources. “Fundamentally, I think it's a belief in the assets of the company — not just Elimatta either — a belief in the company, and a belief that the infrastructure will happen and the Surat Basin will open up,” he said. “There's also a fundamental belief in the outlook of coal.” Net proceeds from the capital raising will be used to develop the Environmental Impact Statement for the Elimatta project, complete final feasibility studies for associated infrastructure and conduct mine optimisation studies. Northern Energy plans to also conduct infill drilling and metallurgical testing at its Maryborough hard coking coal project. “They're very different projects — Maryborough is smaller and potentially can be commenced earlier,” Mr Barker said. “Elimatta is a much bigger

As Xstrata Coal continues working just over the western ridge, a group of Wandoan locals are prepared for the upheaval to come.

“If anything deserves to be given the full DVD treatment, it's Drama at the Gasfields 2009.” — Editor John Farmer

PAGE 14

Northern Energy’s $12 million of belief

THE COMPANIES Sales team grows as demand skyrockets C

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Linc opens Chinchilla plant A year after Linc produced the first liquid fuels from its birthplace in Chinchilla, Federal Member for Resources Martin Ferguson opened the facility.

LOCAL SUPPORT: The State Government has delivered on a promise made to Surat Basin stakeholders at Dalby summit

Budget’s vote of confidence in Surat Basin

Mines team hits the ground to calm Surat Basin tensions

The 2009-2010 State Budget may have painted a grim picture for much of Queensland but it featured a clear vote of confidence in the coal seam gas reserves of the Surat Basin. The Queensland Government announced $30 million would be spent on land to build an LNG precinct at Gladstone and a pipeline from the Surat Basin to support a burgeoning, multi-billion-dollar industry. Plans are to acquire a 70km long and 200-metre wide “gas super-highway” between Callide and the Gladstone State Development Area to accommodate the co-location of LNG pipelines to Curtis Island. Eight proponents are currently proposing more than $40 billion in LNG export industries in Queensland. Premier Anna Bligh said the Budget allocation was another step towards creating an industry that

could provide thousands of jobs and generate billions of dollars. Construction on the Curtis Island plants is expected to start in 2010 and is estimated to employ more than 6000 workers during construction. “It is estimated that when this multi-billion dollar industry is up and running up to 450 km of pipelines will feed into this common use pipeline to take the gas to the Curtis Island facility to be processed,” Ms Bligh said. “But the first step towards creating this LNG gas super-highway is acquiring the land." Ms Bligh said LNG could create a whole new export industry for Queensland. “We have been working hard with companies to get the ball rolling,” she said. “Now we will buy the corridor for this essential piece of infrastructure sending a clear message to industry. We are committed, we are confident

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Arrow sets up in Dalby

The State Government has made a $30 million commitment to opening up a gas super highway that will feed Queensland’s new LNG export industry. and we are ready to roll.” The first shipments of this proposed new LNG industry are predicted to begin from 2012 onwards. If all eight projects reach capacity, Queensland could be exporting around 50 million tonnes of LNG, equating to the consumption of 3000PJ of coal seam gas a year. “A thriving LNG industry has the potential to create thousands of jobs at gas fields right across our Surat and Bowen Basins and in Gladstone and the surrounding regions,” Ms

Bligh said. To provide industry with a ‘one-stop shop' for enquiries and to co-ordinate government activities, the state has established the LNG Industry Unit, under the guidance of the Co-ordinator—General to: • Ensure co-ordination of the government's response to industry issues; • Implement government policy regarding CSG / LNG; • Plan and schedule key government activities across agencies to meet

industry decision making timelines; • Establish a program of activities for government agencies designed to assist the development of the industry and regularly reporting on performance; • Provide forums for the identification and resolution of issues between industry and government parties; and • Facilitate common user infrastructure such as pipeline and transport corridors, bridges and other needs at no cost to government.

“We are committed, we are confident and we are ready to roll.” — Queensland Premier Anna Bligh

Federal member on Warrego collision course F d

Arrow Energy brought a gas field to the heart of Dalby last month as it held a community day at the Dalby Showgrounds. Hundreds flocked to learn about the coal seam gas industry. PAGE 26

Local returns to represent farmer needs Will Nothdurft is back in Chinchilla to work with landowners as Origin Energy’s senior landowner liaison officer.

ines and energy now has a Surat Basin team of four on the ground, with its ear to the gas well and nose to the coalface. In May, Todd Ellis and Waanda McCarthy were appointed as Roma-based deputy mining registrars to assist landowners, mining companies and communities across the Surat Basin. They are supported by administrative staff Hogarth and Maggie Burey, who are Roma residents now based from the Alfred Street field office. The Department of Mines and Energy committed to the positions at the Resources Summit held in Dalby last year as a result of growing friction between landholders and the resource sector, a department spokesperson said. “Issues have arisen due to the growth of exploration activity in the coal seam gas and liqueified natural gas industries in the area and locally based staff will help sort them out.” Queensland Resources Council CEO Michael Roche said the absence of a Surat Basin field office had been

Department of Mines and Energy administration staff Maggie Burey and Janet Hogarth (second front right) with deputy mining registrars Waanda McCarthy and Todd Ellis. flagged as an impediment to regional development. “It's important that all stakeholders are aware of their rights and responsibilities during this period of unprecedented opportunity.” Mr Roche said other service providers needed to take a similarly “fresh look” at the Surat Basin. “Decades of slow decline in

the western Darling Downs are being turned on their head by the promise of long-term, world class energy reserves,” he said. “Surat Basin communities deserve the support of all governments in realising their potential as the next engine room of the Queensland and Australian economies.” Todd and Waanda can help

ticeships. Golden West employment solutions, sales manager, Graham Moore said it had been a long

Santos said the company looked forward to building a relationship with Golden West. “With the current

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HOT DATE FOR ROMA: The Santos Fire and Food Festival makes a triumphant return this September.

resolve mining and exploration issues, inform landho ers of their rights or initiate compliance action where required, the department spokesperson said. “Landholders and explore in the Surat Basin will have better access to information about mining, petroleum an gas exploration in the regio with two new deputy minin registrars based at Roma.” Mines and Energy Minist Stephen Robertson said the registrars would help balan the rights of landholders an explorers. “Agriculture and the resource industries are both vitally important to the Queensland economy and th government believes both industries can continue to coexist harmoniously as the have for many years,“ he sa Todd and Waanda service Dalby by visiting on Wednesday of each week th Department of Environmen and Resource Management office on Level 3, Ergon Energy Building in Marble Street. Extra visits can be made as required. Appointments for both office can be made by calling 4624 1512 or 4624 1536.

Santos jobs out west just gold Golden West Employment Solutions and Santos announced this month their partnership employing country

THE TOWNS

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SUPER HIGHWAY: The 2009-10 State Budget included $30 million to clear the way for a gas super-highway

Documents that make

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Miles hits growing pains Developers in Miles have volunteered to reach into their own pockets to ensure development in the rapidly growing town takes place in an orderly fashion. PAGE 34

Wave of trash gets regional tip moving The Dalby Regional Council has set out to establish a regional mega-tip to deal with growing demand on local landfills.

Roma festival gets ready to light up again for 2009

he Santos Food and Fire Fest, an exciting mix of multicultural cooking, fantastic entertainment and brilliant fire-art, is set to return to the Big Rig Parklands, Roma, on September 12. Roma was named after Lady Bowen, formerly Contessa Diamantina Roma, the wife of Queensland's inaugural Governor, Sir George Bowen. She was born on the Greek island of Zakynthos, and to commemorate this, a Mediterranean flavour will be added to the festival. Cuisine from countries such as Philippines, Netherlands, South Africa and Mongolia will be complimented by woodfired pizzas, traditional Aussie tucker and wineries. The dining experience will

be made complete by the striking backdrop of the colourful lanterns. After their stunning display last year, LightnUp will return to create their own unique form of fire art. This culminating event of the festival will be complimented by fireworks and a delightful lantern parade. Locals will be able to contribute by participating in lantern making and fire art community workshops leading up to the event. An upbeat performance of world music, enticing markets, miniature train rides and the chance to experience the night show at the Big Rig will keep the whole family entertained. The 2009 Food and Fire Fest is an indulgence of all the senses and an evening to be savoured.

The colour and vibrancy off Roma’s Santos Food and Fir Fest is back again this year.

Federal Opposition listens to Roma locals

INFRASTRUCTURE:

THE PEOPLE:

THE TOWNS:

A new east Australian gas grid is created to pump Surat Basin coal seam gas into southern markets. The State Government invests in the gas super-highway and Warrego concerns continue to build.

Will Nothdurft returns to Chinchilla to work with local landowners. The Department of Mines and Energy positions two deputy mining registrars in Roma to help resolve conflict between farmers and miners.

Property developers are helping Miles overcome its growing pains. Dalby Regional Council about to trash local tips. Roma ready for the return of the Santos Fire and Food Fest in September.

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Surat Basin NEWS Thursday 25 June 2009

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FREE TO OWN: QGC landmark event now free to own on DVD from your local newspaper.

PAGE 4

Arrow rolls into Dalby Showgrounds Arrow Energy turned the Dalby Showgrounds into a temporary gas field in April as it hosted a two-day community information display. PAGES 7

Planning for the 2009 conference The Surat Basin Corporation is making good progress on the upcoming 2009 Surat Basin Energy Conference, which this year is being held at Dalby.

“If anything deserves to be given the full DVD treatment, it's Drama at the Gasfields 2009.” — Editor John Farmer

Chinchilla News administration officer Ashleigh Stark and the free Drama at the Gasfields DVDs.

Gas companies join forces to train Indigenous students The four major coal seam gas companies of the Surat Basin have joined forces to get more Indigenous people employed in the oil and gas industries. Arrow Energy, Origin Energy, QGC and Santos have offered a range of traineeships to 16 Indigenous students who attend school in Chinchilla, Dalby, Miles, Roma and Tara. Eight trainees were accepted this month and another eight will be accepted in 2010.

All applicants are required to participate in selection workshops. The first selection workshop was held at the Columboola Environmental Education Centre this month and involved leadership and teambuilding exercises, as well as activities to strengthen interviewing skills and understanding of company standards. After the workshop, company representatives met with both suc-

Representatives from the Surat Basin’s coal seam gas companies and the Indigenous students taking part in a traineeship program. cessful and unsuccessful applicants to provide feedback on the assessment. The companies and schools are currently in the process of develop-

Surat Basin NEWS Thursday 25 June 2009

ing traineeship plans for the successful students. The pilot program was launched in March this year through a series of information sessions for high school stu-

dents, their parents, teachers and mentors, as well as members of the community who have supported the companies in developing the program.

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LOCAL NEWS

An all access pass to Surat powerhouse 2009 conference offers a unique insight for industry, community and government Want to see the Surat Basin from the ground, from the sky and from inside the energy powerhouse's engine room? The 2009 Surat Basin Energy Conference will build on the fervent interest and unparalleled investment opportunities created when 500 delegates touched down in Chinchilla last year. The Surat Basin Corporation is organising the Dalby Chamber of Commerce and Industry hosted event, which will be held over three days from August 19. Corporation president Greg West said the second installment promised to surpass last year’s conference. “This one is not just going to be a showcase of the major projects, it’s going to be a showcase for all the company’s along the supply chain,” he said.

2009 SURAT BASIN ENERGY CONFERENCE WHEN: August 19, 20, 21 Dalby Showgrounds WHO: Surat Basin Corporation, Dalby Chamber of Commerce and Industry HOW: Contact 0427 373 632 “It’s a chance for the major companies to show people what they’re doing across the Surat Basin and for local companies to discover how they can get involved.” The conference opens with a networking day with delegates able to see the Surat Basin from plane, bus or helicopter. Across the three days, more than 100 exhibitors will pack the Dalby Showgrounds showing off their equipment and services. The 2009 conference will culminate with a day designed to show local business how to engage with major industry. “Businesses can’t afford to miss out on this opportunity,” Mr West said.

Surat Basin Corporation president Greg West keeping up to date with what is happening across the region ahead of August’s Surat Basin Energy Conference.

“Businesses can’t afford to miss out on this opportunity.” — Surat Basin Corporation president Greg West

Have your say Gladstone LNG Project (Santos and PETRONAS) Environmental Impact Statement The Coordinator-General invites you to have your say on the environmental impact statement (EIS) for the proposed Gladstone Liquefied Natural Gas (GLNG) project. The proponents, Santos Limited and Petroliam Nasional Berhad (PETRONAS), propose to develop a liquefied natural gas (LNG) export facility at Gladstone in Central Queensland to commercialise their Queensland coal seam gas resources in the Comet Ridge and Roma region. The designated proponent for the project is Santos Ltd. The project involves extraction of coal seam gas from fields around Roma, Emerald, Injune and Taroom, a 435 kilometre gas transmission pipeline from the gas fields to Gladstone, an LNG Facility of approximately 10 million tones per annum (mtpa) on Curtis Island near Gladstone and associated infrastructure including marine facilities, port dredging and a potential access road and bridge at Gladstone. The LNG Facility is proposed to be developed in three stages, the first of which will have a capacity of approximately 3-4mtpa. The LNG will be exported to overseas markets. On 16 July 2007, the Coordinator-General approved the declaration of the project as a ‘significant project for which an EIS is required’ in accordance with Part 4 of the State Development and Public Works Organisation Act 1971 (Qld) (SDPWO Act). On 31 March 2008 and 14 April 2008, the Australian Government Minister for the Environment, Heritage and the Arts determined that the five referrals relating to the project, being coal seam gas fields, the pipeline, the LNG terminal, marine environment and the bridge, are each a ‘controlled action’ pursuant to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act). The collective controlling provisions of the referrals are: • sections 12 and 15A (World Heritage properties) • sections 15B and 15C (National Heritage places) • sections 18 and 18A (listed threatened species and communities) • sections 20 and 20A (listed migratory species). As a consequence, the project requires assessment and approval under the EPBC Act. The Australian Government has accredited the EIS process, to be conducted under the SDPWO Act, under a bilateral agreement between the Australian and Queensland Governments, pursuant to s.87(1)(a) of the EPBC Act. The release of the EIS does not indicate support for, or approval of, the project by the Coordinator-General or the Queensland Government. It is an opportunity to provide feedback to the Coordinator-General on whether the EIS satisfactorily addresses and manages the impacts of the project. Availability of the EIS The executive summary of the EIS can be viewed online at www.dip.qld.gov.au/projects under the project name. The complete EIS can be viewed at www.glng.com and is available for review from 22 June to 17 August 2009 at the following display locations: • Santos Ltd Offices, 39 Currey Street, Roma • Santos Ltd Offices, 114 Goondoon Street, Gladstone • Santos Ltd Offices, Level 14, Santos House, 60 Edward Street, Brisbane • Gladstone Administration Centre, Gladstone Regional Council, 101 Goondoon Street, Gladstone • Roma Regional Council Offices, Cnr Bungil & Quintin Streets, Roma • Banana Council Shire Chambers, Cnr Kroombit & Prairie Streets, Biloela • Dalby Customer Service Centre, Dalby Regional Council, 107 Drayton Street, Dalby • State Library of Queensland, Cultural Centre, Stanley Place, South Bank, Brisbane. An executive summary of the EIS or a DVD containing the complete EIS is available free of charge from Santos Ltd at Level 14, 60 Edward Street, Brisbane. Please contact the GLNG freecall number on 1800 761 113 for further information. How to have your say All submissions on the EIS must be in writing and received by the Coordinator-General by 5 pm Monday 17 August 2009 and be addressed to: The Coordinator-General C/- EIS Project Manager: Gladstone (LNG) Santos Significant Projects Coordination Department of Infrastructure and Planning PO Box 15009 City East Qld 4002 Australia fax: +61 7 3225 8282 email: SantosLNG@dip.qld.gov.au Submissions must state the grounds of the submission and the facts and circumstances relied upon to support the grounds. Submissions must be signed by each person who made the submission and include their name and address. Guidelines and a template for making submissions on an EIS are available at www.dip.qld.gov.au/projects under the project name or by contacting the department. Submissions will be treated as public documents and copies provided to Santos Ltd. People or groups with special communication needs who wish to comment on the EIS should contact the EIS Project Manager on (07) 3234 1380 to make alternative arrangements. Please note under section 157O of the SDPWO Act, that it is an offence to give the Coordinator-General a document that contains information known to be false or misleading. TMP Q063127

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Surat Basin NEWS Thursday 25 June 2009

LOCAL NEWS

Industrial park first for the region Moving They have seen the impact of big industry, what it wants and the blueprint needed to get it here — now they just have to mix the concrete. Greg West and Warren Daniells, the Chinchilla business partners behind Surat Basin Developments, are about to embark on a first for south west Queensland's next major energy hub. Surat Basin Industrial Park has been approved and by September the first heavy machinery should be rolling on to the site, 2km west of Chinchilla's CBD and a stone's throw from the Warrego Highway. Mr Daniells said the $200 million estate had been designed with big industry in mind, the sort that would service draglines, drill rigs and heavy machinery and manufacturing. He said those types of companies had been eyeing off the Surat Basin

A development company based in Chinchilla is embarking on a first for the Surat Basin — an industrial estate that caters to the major industries working with the resource heavyweights. for years as demand grew for their services. “We know the demand for this estate is there,” Mr Daniells said. “Chinchilla really is right at the heart of the Surat Basin, where companies digging for coal or drilling for gas want a quick response from their support industries. “From Surat Basin Industrial Estate, they can just roll on to the Warrego and within 10 to 60 minutes of many of the major projects.” Surat Basin Industrial Park's 27 blocks ranging from 4000m2 to almost

"Chinchilla really is right at the heart of the Surat Basin, where companies digging for coal or drilling for gas want a quick response from their support industries.” — SBD director Warren Daniells

1.4ha. They are connected by a 30-metre wide asphalt roads and threephase underground power. It has been four years in the making since Surat Basin Developments was part of a tour of the Bowen Basin organised by Chinchilla's business leaders. Mr Daniells said he was immediately struck by the size, location and safety offered to companies setting up in the coal cities of Mackay, Gladstone and Biloela. "We thought the region — not just Chinchilla — was missing out on a lot of opportunities because there was nowhere across the Surat Basin catering to the big players in the supply chain. “That's why we went to Dalby Regional

Surat Basin Developments director Warren Daniells at the site of the Surat Basin Industrial Park. Council with this idea and we commend them for having the foresight

to give us the green light. “It shows a lot of faith

in Chinchilla.” Work should start in September with stage one of the estate completed early next year. Daniells said interest had already been strong. Businesses can start their design process now so that can start building their premises early next year to be ready to service the construction/operation explosion mid next year. He said when completed, Surat Basin Industrial Park would change Chinchilla's commercial landscape, while creating considerable employment and investment opportunities. “You could have 200300 people working on one of these sites — there could be more than 1000 working in that area alone,” Mr Daniells said. “I wouldn’t hazard a guess to the amount of investment that it will bring to Chinchilla.” Surat Basin Developments can also offer businesses wishing to establish in the estate various leasing options on sites or on fully completed buildings ready to move in at Surat Basin Industrial Park, with blocks priced from $350,000.

We’ll Get MovingYou Moving Faster Taroom Miles

Graincorp

Jandowae Chinchilla

Coming Soon

Meandarra

Tara Dalby

Coming Soon

Malu

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PAGE 5

LOCAL NEWS

Stay of execution for Haystack farmers Tarong Energy delay gives landowners time to regroup and re-focus plan of attack Haystack Plain farmers are hoping Tarong's decision to delay selling the coal from under their properties helps them avoid becoming mining's "sacrificial lamb". On April 8, Tarong Energy announced it had deferred taking to the market its mineral development licences over agricultural land around Brigalow. Haystack Plain Action Group chairman Jeff Bidstrup said the “stay of execution” would allow farmers to continue frenetic talks with the State Government, Agforce and Future Foods Queensland over a management plan for the Surat Basin. “It's about trying to help the government understand the need for a planning process,” he said. Tarong Energy CEO Helen Gluer said the State Government-owned company had not given up on selling its coal tenements. “I know this will continue to be a difficult issue for many landowners, but Tarong Energy has a

responsibility to manage its assets, ultimately owned by the people of Queensland, in a prudent and efficient manner,” Ms Gluer said. Mr Bidstrup said the pressure on the State Government to begin working on a regional plan was mounting as support grew from all Surat Basin stakeholders, including the resource industry. “The community from all angles want a planning process that is fair to everyone so it really is now the role of the government to actually institute a proper planning process,” he said. “And we will offer help anyway we can.” The Haystack Plain district is in the midst of a bumper planting and harvests are expected to add further weight to the Coal 4 Breakfast campaign. Mr Bidstrup believes the Surat Basin will one day get a plan that spares prime, agricultural land from mining, but he is not certain it will come in time. “The fear is we slip

through the cracks before we get one,” he said. “We become the sacrificial lamb, the one that makes everyone sit up and realise.” With a year of his life dedicated to lobbying against the mining of Haystack Plain, Mr Bidstrup plans to use the time given to him by Tarong's decision to regroup. He will still lobby, meet, speak and fight, but he just won't live with the dread every day. “I'm still spending time on it but no where near as much as I was thank goodness,” he said. “It really was all consuming before. “That part makes me really angry, that they can come along and claim six or 12 months of your life. “It's been a big cost on us financially and personally, but you have to fight it. “It's wrong what they're trying to do, wrong for humanity, wrong for our community. “In the long term, they'll understand it.”

ROUND TWO OF A COURSE

Origin’s safe back on the Hugely successful program hits top gear for 2009 undreds of south west Queensland school students are gearing up for a special lesson in road safety as part of this year's Origin Young Driver Training Program. Around 200 year 11 and 12 students from Roma, Dalby, Chinchilla, Miles and Tara have taken part in a theory session exploring issues like hazard avoidance and the consequences of driving under the influence of drugs or alcohol. They are now preparing to hit the tarmac with road safety experts from Safe Drive Training for some practical skills training. Origin launched the Young Driver Training program last month with a series of parent information sessions to share course content, and provide practical tips for reinforcing road safety at home. Origin's general manager of exploration and production Paul Zealand said by working together with parents, Origin hoped to help young drivers develop better skills on the road — skills that will help save lives.

“Driving is a complex task and no matter how many years experience you have behind the wheel, it's important to maintain an attitude of safety first on the road,” Mr Zealand said. “Origin's Young Driver Training Program is designed to help students develop that attitude, and to teach them safe driving practices that will stay with them for life. “If parents can reinforce those lessons at home, the message becomes even more powerful.” The Young Driver Training Program is a partnership between Origin and Brisbane-based driver education group Safe Drive Training. It was initiated in 2007 and, due to popular demand, will now be a regular fixture on Origin's community events calendar. The $280 course is offered to students at a cost of $40; the remainder is subsidised by Origin. In a first for the program, Origin will offer some parents the chance to accompany their children on this year's course at no cost. Mr Zealand said driver education had to start at an early age in

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LOCAL NEWS

SAVING YOUNG DRIVERS’ LIVES

driving course region’s roads

Waste water’s future sealed The Queensland Government is expected to hand down a policy dealing with the Surat Basin’s coal seam water tidal wave by the end of this year. The policy follows eight months of landowner, community and industry consultation. Several key parts of the policy have already been decided upon, including putting a

stop to evaporation ponds for disposing of the waste water. It also forces all necessary ponds to be lined and makes a water management plant mandatory for all gas field projects. Member for Warrego Howard Hobbs said it was important current requirements for managing the waste water were being tightened because of the sheer

scale of the industry and its potential impacts. “We’ve got a major industry that will power the world but we also need to make sure that we don’t impact on the local environment,” he said. “Landowners themselves have to be confident their land is not going to be degraded by this major industry.”

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Chinchilla State High School students Jess Pohlmann and Sam Robinson are taking part in Origin’s 2009 Young Driver Training Program order to reduce car crash statistics. “Research shows young drivers are most at risk of accident or serious injury in their first six to 12 months of solo driving,” Mr Zealand said. “It also indicates that practice and training are the more effective ways to improve safety on the

road. “In running this program, Origin is not only educating our youth on the need for care and attention behind the wheel, we're also helping make local roads safer for all users.” “If it helps to save just one life, then it's well worth it.”

“In running this program, Origin is not only educating our youth on the need for care and attention behind the wheel, we're also helping make local roads safer for all users."

Golf Day J Workshop opportunities J Flights over Surat Basin Region J Trade display of over 100 exhibitors J Bus trips to current energy infrustructure J Guest Speakers from Industry and Government J Details of the massive projects and their timelines J 3 days of opportunities for business to grow in the Surat Basin J

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PAGE 7

LOCAL NEWS

“It's a relatively new industry and I think people appreciate the opportunity to see how it works and to learn all about it.”

— Arrow Energy’s Gareth Quinn

Arrow’s fleet rolls into town Community days attract hundreds to learn about coal seam gas An Arrow Energy convoy rolled into the centre of Dalby early last month and set down at the site of a very temporary gas field. The coal seam gas producer owns several fields to the west of the town but on the Friday and Saturday decided to move a very small selection of its vast fleet of drill rigs, compressors and pumps into the Dalby Showgrounds. External affairs manager Gareth Quinn said the two-day event, part of Arrow Energy's community engagement program, attracted more than 700 people including a visit from schools. Mr Quinn said attendance at the two days was mainly due to the innovative nature of the coal seam gas industry. “I think the coal seam gas industry is largely unknown for a lot of people,” he said. “It's a relatively new industry and I think people appreciate the opportunity to see how it works

BY John Farmer editorial @suratbasin.com.au

and to learn all about it.” Inside the showgrounds' conference centre, information stalls traced Arrow Energy's processes from exploration through to sale, including its proposed arrival at an LNG plant in Gladstone. Outside, interactive displays provided a practical insight into how gas was found and brought to the surface. Mr Quinn said he hoped those who attended the two-day event left with a better understanding of the coal seam gas industry and its potential. “I'd like to think they leave informed about what is going on in their backyard and the potential it offers Dalby,” he said.

Dalby Regional Cr Ray Jamieson climbs aboard the drill rig with Arrow technical assistant James McKern.

Brian Weier takes a look at a drill rig with Arrow Energy’s senior drilling supervisor Les Friske.

Arrow Energy exploration manager Brad Pinder talks geology with Hans Young.

Arrow Energy’s Rubina Smith discusses the company’s LNG plans with Dalby General Steel’s Andrew Groenewald.

PLANTING SEEDS FOR THE FUTURE Santos is proud to be part of the local community, and we’re continuing our commitment to making a positive contribution. We’re using the water that comes from coal seam gas production in eastern Queensland to create one of Australia’s largest forestry plantations.

PAGE 8

Surat Basin NEWS Thursday 25 June 2009

OPINIONS QUARTERLY CONDUCT The issues, identities and announcements making news over the last three months.

THE ISSUE:

INFRASTRUCTURE IN ALL FORMS Whether is was multi-million-dollar water deals falling through, town services pushed to breaking or highways crumbling, this quarter revealed how desperate the Surat Basin is for an infrastructure injection. We did see a few highlights too though. The gas super-highway got a push along and Surat Basin gas got flowing to southern markets.

THE IDENTITY:

RICHARD KRAUSE Surat Basin Corporation CEO Richard Krause moved to Chinchilla with his fair share of industry experience. What he has witnessed and the potential he has seen has left him awestruck.

THE ANNOUNCEMENT:

BIG SALES DEALS Two of the four major players in the LNG race to Gladstone secured sales deals this quarter. On May 13, BG Group signed a 20year deal for 3.6 million tonnes of LNG per annum as part of its QCLNG project. Little more than a month later and Santos came to a three-million-tonne deal for the same duration.

THE CONTROVERSY:

REGIONAL PLANNING Twelve months since Haystack Plain blew up and still no sign of a regional plan for the Surat Basin. The delay was made no easier for the regionâ&#x20AC;&#x2122;s farmers as New Hope Coal moved on to land around Jimbour.

SEVENinSEVEN

Business manager hopes to get Surat Basin Corporation building Weeks after he moved into the role of Surat Basin Corporation secretary, the Surat Basin News asked Graham Secombe seven questions in seven minutes. SBN: You have just taken over as secretary of the Surat Basin Corporation after being on the board of directions since its inception last year. What has impressed you most about the corporation? GS: The fact that the organisation has positioned itself across the entire Surat Basin region to act as the voice of industry. It is a huge undertaking. SBN: Why did you decide to become a director and what do you bring to the table? GC: I was excited by the challenges surrounding the complexities involved with bringing industry together with the energy sector, government and communities. I bring to the table more than 20 years experience dealing with all levels of the construction industry. I have also been an active committee member of the local Urban Development Institute of Australia and have owned many different and diverse businesses throughout south east Queensland. SBN: The Surat Basin is growing at a rapid rate. What are the challenges ahead and what role can the Surat Basin Corporation play? GS: As mentioned the challenges are enormous. We need to look closely at the positive and negative

effects that the development of the Bowen Basin has had on communities and learn from them. The Surat Basin Corporation can assist in providing the link between industry and the energy sector to ensure that the maximum benefit is returned to local communities throughout the region. SBN: The Surat Basin Corporation is only in its formative days with the potential to play a leading role for many years to come. What is needed to make sure the corporation can be a leader in the region? GS: Strong support from local business and communities alike. A united voice is paramount to assist in building a group that will open doors to all levels of government as well as all of the associated energy companies. SBN: You are based from Toowoomba, which is at the gateway to the Surat Basin. What role can the city play in the development of the province? GS: I see Toowoomba playing much of the same role that Mackay plays to the Bowen Basin. With the proximity to a large population base, transport infrastructure, schools and hospitals, many of the support industries may position themselves here. Preparing for controlled

Graham Secombe, FK Gardner & Sons business development manager, brings his 20 years of construction industry experience to the Surat Basin Corporation. growth will be a area that needs to be closely monitored.

effected by the economic down turn as other energy sources.

SBN: Should we believe the hype? The Surat Basin has been touted as Australia's next major energy province but what makes you confident it is going to reach its full potential? GS: The Surat Basin is the most underdeveloped energy province in the world, and it is on our doorstep. The world will continue to grow and consequently demand for energy will grow with it. Both the coal seam gas and thermal coal reserves that exist here in huge quantities have not been as

SBN: The Surat Basin Corporation is organising the Surat Basin Energy Conference for August. What does the board hope to achieve from the conference? GS: The conference was a stand out last year and it was a talking point throughout the industry. With the change of venue to the Dalby Showgrounds we have increased our capacity to facilitate many more exhibitions and delegates. We are looking to use the conference to raise our profile and showcase opportunities for the region.

THE STATEMENT: "We're keen to put Miles on the map because the town has missed some opportunities in the past.â&#x20AC;? - Miles property developer David Sweetapple on plans for developers to pay head charges for the first time in the town.

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PAGE 9

LETTERS TO THE EDITOR EMAIL: editorial@suratbasin.com.au POST: 12 Mayne Street, Chinchilla, 4413

LETTERStotheEDITOR

Surat Basin NEWS

Wildlife group calls for solutions

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

Here are a few ideas for all the development that is taking place in this wonderful area and how we should plan to get the maximum “bang for our bucks” without compromising the opportunities of further generations. This means having the productive land and water resources to help feed and clothe a growing population; but most importantly to look after our environment in a viable and sustainable condition. Our branch has been an advocate for long term overall planning for the area that will deliver these outcomes into the future. As so many of

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

Editorial

Infrastructure drain We have seen an air of confidence settle over the Surat Basin unlike any we have seen in the last two years. Companies like Syntech Resources ($250 million), Carbon Energy ($32 million) and Northern Energy ($12 million) have been backed heavily by shareholders and industry partners. The four proponents behind a new, multibillion-dollar Queensland LNG industry marked milestone moments in their march to Gladstone. Meanwhile, industry is finding new and innovative ways to get its product to markets, such as AGL and Epic’s new eastern Australia gas grid. Though with this massive investment from private industry, we have been left high and dry by government when it comes to funding for vital support infrastructure. The Surat Basin is going to struggle to reap the full benefits of the resource boom if it does not have the infrastructure it needs to sustain, survive and remain viable. The state of the Warrego Highway needs to be addressed, we need a rail link through to Gladstone and basic yet vital services like health, education and employment need to be fixed now before the strain becomes too much. This emerging energy province is set to become the engine room of the Australian and Queensland economies for decades to come. It is about time the state and federal governments did their share to keep the engine firing.

Welcome to the latest edition of the Surat Basin News. Last edition I talked about the LNP policy on iconic farming lands. The LNP is committed to protecting Queensland’s prime agricultural farming areas from mining and urbanisation. I have attended a meeting at Jimbour in April about this very issue. I want to say how disappointed I was that New Hope Coal started drilling on the Jimbour Plain the day after the State Election. About 80 people attended the Jimbour meeting organised by myself and Member for Darling Downs Ray Hopper, to discuss the potential impacts on the community and the rights of landholders and resource companies. I am happy to host similar forms in any community should they wish to do undertake similar meetings. I am not opposed to mining and petroleum based development, in fact strongly support them however, will not support the destruction of our prime agricultural farming land.

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

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in the area. 3. Has the potential to generate great wealth for the Nation and sections of the local community. 4. Would help supply the energy source for underdeveloped countries to get their populations out of poverty. 5. Would contribute to the amount of CO2 in the atmosphere as it is burnt locally and overseas. All this is fairly formidable and needs to be carefully thought through. It is our generation's responsibility to get this right. Short-term selfish and quick fix solutions are not the answer. There is a pause in the global economy and the rush to develop these resources has showed from the hectic

pace of last year. Now is the time to take stock of not only immediate solutions but also where do we, as a community, want to be in 50 to 100 year's time. The government is to be congratulated on their discussion paper about gas seam water and our branch has put in a submission to this paper. What we need now is an informed discussion on mining productive agricultural land. We hope that the next Surat Basin Energy Conference held this year will highlight these suggestions. Adam Clark Project officer Wildlife Queensland, Upper Dawson

Mining’s ongoing rift with agriculture

LETTERS to the editor

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these developments are short term and extractive, we have to be extremely careful. Our area has to plan for development proposals and those already on the ground that1. Would damage if not completely ruin extremely fertile land that will be sorely needed in the future to produce food and fibre on a continual basis. 2. Has the potential to degrade our river system that is the heart and soul of the area by a) Damming it and therefore ruining the present environment. b) Contaminating it with Gas Seam water salts c) Putting it in danger of contamination from flooding from the proposed coal mines

COMMENT Howard Hobbs MP Member for Warrego

The State Budget has been brought down and it contains some nasties for our local areas. The fuel subsidy rebate is gone as of July 1 and we will now all pay more when we fill up with fuel, flick on the light or go to the supermarket. There has been no commitment by the State Government to return some of the royalties that are received from mining areas back to the communities where the wealth is generated. This is a matter which I will continue to pursue because the community infrastructure and roads suffer plenty of wear and

tear with the influxes of activity associated with mining. I welcome the Department of Mines and Energy opening an office in Roma. Two deputy mining registrars are now based in Roma, Todd Ellis and Waanda McCarthy at 1-3 Alfred Street Roma. They also travel to Dalby and are available for meetings and bookings can be made by contacting the Roma office or the Dalby office on 4672 4800 or fax 4672 4850. The State Government has released a discussion paper “Management of water produced from coal seam gas production” for comment in May and unfortunately the comment period was very short and closed in June. My office has copies of the paper should anyone wish to obtain a copy. In 2007, 12.5 gigalitres

of water were produced in Queensland from coal seam gas activities. This is equivalent to one tenth the size of Beardmore Dam (81 gigalitres) every year. Estimates indicate if the coal seam gas industry continues to supply gas to the Australian domestic market it is estimated that in the Surat Basin annual average of 25 gigalitres (for example, one third of Beardmore Dam) of CSG water will be produced for the next 25 years. The State Government has already signalled that they want to make the Surat Basin to Gladstone a gas super highway for liquefied natural gas export, therefore the amount of CSG water is bound to increase. This has implications for both resource companies and landholders and a matter which I will watch very closely.

I am not opposed to mining and petroleum based development, in fact strongly support them however, will not support the destruction of our prime agricultural farming land.

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Mix needed

Protecting towns

Need to plan

Agriculture and resources working together the answer for Queensland Michael Roche, QRC

Towns need to stay vibrant and sustainable if the Surat Basin is to benefit from boom Bruce Scott, MP

The LNP is committed to protecting prime agricultural land from mining and coal seam gas production Howard Hobbs, MP

Resource mix the best protection

ccording to state budget forecasts, Queensland's minerals and energy sector is settling back into its trademark pattern of long term growth after what can only be described as a tumultuous 12 months. Volleyed from record commodity prices to the worst global recession in 70 years, Queensland's minerals and energy producers still managed a record $3.4 billion in royalty payments to taxpayers in 2008-09, free and clear of state government infrastructure projects underwritten by industry. This financial year, resource royalties and rents are forecast to generate around $1.8 billion, which while reflecting the ferocity of the recession, will be the state's second highest royalty return on record. The steady trend growth in royalties — past and future — brings into serious question the traditional notion of constant ‘boom and bust' cycles in the minerals and energy sector. It also sends a powerful

COMMENT Michael Roche Chief Executive Queensland Resources Council

message to government that steady industry growth in a secure regulatory environment is more financially sustainable than the temptation to rip money out for short term gain. Queensland's diversified resources mix is its greatest protection against the vagaries of global markets. From a Surat Basin perspective, there were budget announcements of particular note given the Queensland Resources Council's efforts to put them on to the political agenda. These include: • The streamlining under the auspices of Mines and Energy 'case management' of mining and petroleum exploration and development approval processes;

• An additional $1.2m per annum to enhance Environment Impact Statement (EIS) assessments; • Enhanced payroll tax concessions for apprentices and trainees who have been a core focus of resource sector employee retention programs since the onset of the global financial crisis; • The creation of a gas super-highway pipeline corridor between the Callide and Gladstone state development areas to support the start-up of Queensland's export liquefied natural gas (LNG) industry; • A Science Spark program to fund the employment of 100 new science teachers in primary schools and expansion in the number of Earth Smart Science schools from 60 to 1000 • Through industry underwriting, QR's $862 million for coal network track works, new and upgraded rolling stock. There are inevitable comparisons between the development of the coal seam gas industry and the

rise of Queensland's export coal industry more than 50 years ago. However, the QRC has been at pains to point out the difference in the timeframes under consideration for coal seam gas compared with the decades of investment behind coal's status as the state and the country's leading export. At the moment, the Queensland Government is considering five proposals to develop export LNG facilities based on coal seam gas supplies from the Surat and Bowen Basins. This is an Australian industry showing considerable courage and vision. Amid increasing talk of industry collaboration, if not consolidation, the recent visit to Darwin's LNG plant by the Minister for Infrastructure and Planning Stirling Hinchliffe is significant. Construction of the Wickham Point plant began in June 2003 and by February 2006, the first LNG tanker left Darwin. This underlines the pace of development in the CSG and LNG industries, which will also test the capacity of the state government to

manage this growth in the best interests of Queensland. It should be clear that after more than a century of unprecedented technological development anchored by abundant and inexpensive energy supplies that the world is facing a host of new challenges. While industrialised nations struggle with the double-edged challenge of energy security and demands for a low carbon future, people in developing countries want their share of what we take for granted. And say what you like about oil, gas and coal but there are not many people who have voluntarily surrendered the convenience of plastics, electronics, motor vehicles, aircraft and that most desired energy — electricity. The International Energy Agency's Outlook for 2009 has been released and among other things, it points to world marketed energy consumption rising by 44 per cent to 2030. Total energy demand in emerging and developing economies increases by 73 per cent compared with an

increase of 15 per cent in developed economies. The fossil fuels — oil, gas and coal — are expected to continue supplying much of the energy used worldwide. Electricity generation is forecast by the IEA to account for 35 per cent of the world's total natural gas consumption in 2030. It's a market outlook that could have been written for coal seam gas essentially colocated with at least 300 years worth of coal reserves in Queensland. At current rates of production, Queensland and northern NSW have more than 250 years' worth of natural gas and there is increasing optimism among geologists that further exploration will add substantially to identified reserves. In closing, the QRC is delighted to see planning moving ahead strongly for the 2009 Surat Basin Conference in August. This is an opportunity to foster greater interaction between the region's growing communities and industrial diversity.

Surat Basin communities must be able to thrive post-boom or the small town economies of the Surat Basin to truly benefit from its underground mineral resources, we must ensure our communities remain vibrant and sustainable. While this may seem a logical and obvious point to make, there are many obstacles on the path to achieving long-term viable communities. And whilst it may be several years and many decades before the basin’s finite resources are exhausted, we must ensure that after the coal and gas is gone the region’s communities will continue to thrive, not

COMMENT Bruce Scott MP Federal Member for Maranoa

just survive. Currently it is a popular trend for resource companies based in rural Australia to employ fly-in/ fly-out workers. I believe it is in the best interest of our regional communities for companies and governments to discourage this as much as possible. One such avenue is a change to the current eligibility guidelines for the

zone tax offset. The zone tax rebate is currently provided to people who have lived or worked in a remote area for 183 days or more. While the rebate is certainly welcomed by workers and people living in non-metropolitan Australia, the zone classifications which determine the amount of the rebate are antiquated and in dire need of revision. Cairns, for example, is located in Zone B for the purposes of the Australian Tax Office. This means the more than 150,000 residents receive a $57 refund as well as 20 per cent of a base amount calculated on items claimed on a tax

Waste Management

to work in remote areas for 183 days continuously, many people who work in rural Australia and live in coastal cities can claim this rebate. This means many rural towns miss out on the benefits of a locally spent income as the workers fly home to their families in metropolitan Australia. We must make changes to ensure these people are instead encouraged to work and live locally. Whilst the Henry review into Australia’s taxation system will undoubtedly examine the fairness and effectiveness of the zone tax rebate, I believe more should be done to increase tax incentives for workers

and small businesses based in regional, rural and remote areas. Attractive tax incentives will encourage more industries to base themselves outside metropolitan areas and it is my hope that as the Surat Basin towns become powerhouses for the rest of the state, other businesses, such as manufacturing, will move in and complement current industries. Permanently based staff and their families will in turn strengthen the sustainability of these communities, ensuring that they remain strong and vibrant for many decades, even centuries.

Make sure you do not miss the next issue of the

Surat Basin NEWS

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return, such as a tax offset for dependent children or being a single parent. The more than 23,000 residents in Mt Isa, which is located in Zone A, receive $338 and a further 50% of the base amount. Roma, Chinchilla and Dalby fall under neither zone and as such residents in these towns receive no rebate. With Cairns receiving at least 10 direct flights from Brisbane daily, and Roma receiving just two, it is easy to understand why the classification of rural and remote Australia is outdated. Similarly, because the eligibility for the rebate does not require a person

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PAGE 11

Surat Basin News

SANTOS SECURES CUSTOMER Twenty-year deal has LNG aspirant racing

RESOURCES

VOICE YOUR OPINION: editorial@suratbasin.com.au

CAPITAL TO MOVE: Northern Energy’s $12 million capital raising moves Elimatta another step forward.

PAGE 14

Northern Energy’s $12 million of belief

Wandoan ready for change

As Xstrata Coal continues working just over the western ridge, a group of Wandoan locals are prepared for the upheaval to come. PAGE 20

Syntech ready to unwrap Syntech Resources next month starts work on the $250 million Cameby Downs coal mine between Miles and Chinchilla.

Northern Energy managing director is readying his company for the move from explorer to coal producer.

“Fundamentally, I think it’s a belief in the assets of the company... (and) a belief in the company.” — Northern Energy managing director Keith Barker

er value so we'll likely be running Maryborough in parallel with the early development of Elimatta.” Northern Energy plans to open a five million tonnes a year coal mine from Elimatta, south-west of Wandoan, in line with the opening of vital infrastructure — the Surat Basin Railway and Wiggins Island Coal Terminal. Mr Barker said proceeds from the capital raising would allow the company to provide further cash backing for bank guarantees to underwrite feasibility, engineering and design studies for the proposed port and rail expansions. “The challenge for Elimatta and indeed the whole Wandoan region is infrastructure,” he said. Northern Energy last month announced the marketable reserve at Elimatta, southwest of Wandoan, had increased 54 per cent from 69 million tonnes to 104 million tonnes. That was followed by the lodging of a mining lease application. Mr Barker said he was confident in the financial viability of the Elimatta project even with the Rudd Government's proposed emissions trading scheme. “Whether it makes it unviable or not, that we're going to have to assess over the next little while,” he said.

Cougar sinks claws into Wandoan lease A second Queensland underground coal gasification project is being targeted by Cougar Energy with the announcement last month of a new drilling campaign on its Wandoan lease. The drilling program — scheduled to start this month and be completed by the end of June — is designed to establish an initial JORC compliant coal resource of between 200 and 300 million tonnes. The Wandoan project is sep-

PAGE 12

arate from Cougar's current UCG and power station project at Kingaroy. The target of the new Wandoan drill program is the Macalister seam, which occurs near the top of the Walloon coal measures over the entire tenement at depths between 250-300 metres. A drilling program of six holes completed by Cougar last November intersected coal seams of a thickness and at a depth suitable for application

of the UCG process. “The establishment of a JORC resource on EPC1118 is of great significance in Cougar's longer term plans,” Cougar managing director Dr Len Walker said.

“It gives the company the opportunity to commence the planning of a second UCG project in Queensland to follow successful development of the proposed UCG gas-fuelled power plant at Kingaroy.”

“It gives the company the opportunity to commence the planning of a second UCG project in Queensland...” — Cougar managing director Dr Len Walker

Surat Basin NEWS Thursday 25 June 2009

RESOURCES

BG GROUP’S MILESTONE AGREEMENT: Sales secured for next 20 years

British lock in LNG sales It is five years out from when BG Group takes coal seam gas from the Surat Basin and pipes it 400km north-east to be turned into LNG, customers are already lining up. On May 13, BG Group signed an agreement with China National Offshore Oil Corporation, one of China's leading integrated energy companies, to purchase 3.6 million tonnes of LNG a year. The supply should start by as early as 2014, the proposed start-up date of the Queensland Curtis LNG project, and continue for the next 20 years. BG Group chairman Frank Chapman, who was in Beijing to sign the agreement, said it was another important milestone for the QCLNG project. “It builds on an already strong and productive relationship with CNOOC,” Mr Champan said. “We look forward to working with our CNOOC partners as we drive forward our plans to establish QCLNG in the

vanguard of a new worldclass LNG industry in Australia.” BG Group and CNOOC intend to complete negotiations and execute fullytermed transaction documents prior to BG Group's final investment decision, expected in 2010, to sanction the QCLNG project. Queensland Gas Company, BG Group's wholly-owned business, continues to make good progress with QCLNG. Upstream exploration, appraisal and development activities are advancing while Front End Engineering and Design work is under way. In February 2009, BG Group entered into an agreement with the Queensland Government to acquire a 270ha site at North China Bay on Curtis Island near Gladstone. The first phase of the QCLNG project will produce around 7.4 million tonnes per annum of LNG from two trains.

The only way is up for BG Group after it signed a deal securing LNG sales for the next 20 years.

Arrow secures significant status

Another proposed liquefied natural gas project has been declared a “significant project” by the Queensland Government. The multi-billion dollar Shell CSG project is the fourth LNG project in the Gladstone area to be declared a “significant project” by Queensland’s CoordinatorGeneral Colin Jensen. Mr Jensen will now oversee a streamlined whole of government approval process through a rigorous Environmental Impact Statement. “The Bligh Government is committed to doing everything in its power to encourage an LNG industry and create jobs across Queensland,” said Infrastructure and Planning Minister Stirling Hinchliffe. “Shell Australia and Arrow Energy Ltd have agreed to work together to investigate LNG developments in Queensland. “Up to 3000 construction jobs could be created in one of the largest liquefied natural gas export projects proposed in Australia. “The proposed LNG facility is on Curtis Island opposite Gladstone, utilising coal seam gas developments in the Surat and Bowen basins.”

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PAGE 13

RESOURCES

The last line of defence As Xstrata Coal nears the moment when it can lock in its billion-dollar Wandoan coal mine, the town is bracing itself for massive upheavel. Every day counts for the group of locals entrusted with getting Wandoan through. ill Blackley heads a Wandoan community group literally at the coalface of the town's future. The Wandoan District Liaison Committee formed after council amalgamations and evolved into Wandoan's frontline to the mining magnates settling over the western ridge. The latest fight has the committee attempting to

fortify the town, which within four years could neighbour Australia's largest coal mine. Xstrata Coal plans to mine just 600 metres from Wandoan's western outskirts while the Surat Basin Railway — with its seven coal trains a day — may run within two football fields of the town. The community wants a 2km exclusion zone and has written to the Department of Infrastructure and

“We don’t know of another town with an

Room for Wandoan to Former mayor of the Taroom Shire, Don Stiller has been called in to assist the Dalby On one side of town they’re building a buffer zone but on the they’re trying to open it up. The Dalby Regional Council in April employed the help of former Taroom Shire

Planning demanding action. Mr Blackley said the proposed location of the mine and railway would strip Wandoan of its liveability. He said the noise, dust and visual pollution would take too much of a toll on local lives.

mayor Don Stiller to negotiate Native Title over land it wants to buy around Wandoan. The 21 hectares to the town’s south and east was set aside by the State

“We want to see the town remain a great place to live for the people here now and for the workers who'll be living here,” Mr Blackley said. “We don't know of another town with an open-cut coal mine so close.” Mayor Ray Brown said

Government for future expansion. The land is now needed to accommodate the expected growth of Wandoan, propelled by Xstrata’s coal mine. Mr Stiller spent his final

adequate distance between Wandoan and coal infrastructure would help retain the town's lifestyle. “There's blasting, dust, noise, visual pollution with the lights at night — they'll be working 24 hours — all these sorts of things have an impact on

“Fundamentally, I think it’s a belief in the assets of the company... (and) a belief in the company.” — Northern Energy managing director Keith Barker

a town,” he said. Cr Brown said the exclusion zone would have to be guaranteed for the lifespan of the mine to ensure works did not start encroaching during its 30-year lifespan. He said he had heard reports Xstrata Coal would consider the request but wanted the company's written guarantee. “When I see it in black and white I’ll believe they're going to do it.”

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The Wandoan community got a sign of the scale of growth and where it is heading when the Dalby Regional Council approved the first stage of an 1100-person workers camp. The Mac Group was granted approval for only 48 units with preliminary approval given to another four stages. Dalby Regional Council spokesman for planning Ray Jamieson said upgrades to Wandoan sewerage and water services would have to be considered before such a large development could be approved.

“We had to show that we’re positive about encouraging development but we do have to bare in mind these small towns are not ready for accelerated development at the moment.”

“We had to show that we’re positive about encouraging development...” — Dalby Regional Council spokesman for planning Cr Ray Jamieson

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Surat Basin NEWS Thursday 25 June 2009

RESOURCES

PUBLIC OPINION

open-cut coal mine so close.”

SHOULD XSTRATA UPGRADE WANDOAN’S PUBLIC AIRSTRIP?

Xstrata responds to town concerns

EIS MAIN SUBMITTERS • Queensland government agencies • Community organisations • Local community members and affected landholders

Xstrata Coal says it hears the concerns of Wandoan and is working to overcome them. After receiving 62 public submissions as part of the project's Environmental Impact Statement, Xstrata must respond with a supplementary EIS expected towards the end of the year. That will give the Wandoan joint venture the opportunity to respond to submissions and report on any further studies. Even before the second EIS is released, Xstrata Coal has in part agreed to a request from the Wandoan community. Mining will not take place within 2km of Wandoan's western outskirts during the mine's initial year's of operation, with any activity in later years facing environmen-

KEY ISSUES RAISED • Effects of mining in Frank Creek Pit on the township of Wandoan, in terms of dust, noise and vibration • Effects on ground water • Effect on soils of coal seam methane water used for dust suppression on haul roads within the mining area • Road re-locations and closures • Weed management • Post mine landform and rehabilitation of land • Community growth and development

Reuben Gerecke “Yes I do, for safety reasons and especially for the community — flying doctors and all that.”

Judith Hurndell “I wouldn't mind an airport, hey I could go travelling! It would also be good to get freight in for cheaper; and for health reasons.”

Margaret Holland “With the mining facilities there will come a day when we will need a bigger one.”

Cheryl Tarry “I certainly do because needs are arising for people in the country.”

move Regional Council free up land around Wandoan. two years on Taroom Shire Council negotiating with central Queensland’s Iman people to develop a standard agreement that would assist in lifting Native Title. “It’s an absolute must

Wandoan District Liaison Committee, which from a town of only 500 people received 19 board member nominations, meets monthly but is all the time listening to the community. At a public meeting

because we’re fenced in by Crown land,” he said. Dalby Regional Council director of planning Ian O’Donnell said negotiations were expected to take up to 18 months.

hosted by Xstrata Coal last month, ears pricked when company representatives announced plans to build an airport in Wandoan had been scrapped. Mr Blackley said Xstrata had promised an

airstrip open to the public as well as its workers. “They simply canned the idea, saying Dalby Regional Council was not interested in running it,” he said. “What we hear though is that there was no discussion with the

“The airport would have at least been a win for the community.”

— Bill Blackley, Wandoan District Liaison Committee president

Public comment to the Wandoan coal project's EIS closed in February and Xstrata Coal has continued to move steadily towards a final commitment.

council. There is going to be a fair disruption to the community. Thirty-five properties, which I regard as businesses, are going to be lost. “The airport would have at least been a win for the community." An Xstrata Coal spokesperson said the company was still considering the option of a public airstrip at Wandoan.

rom beyond the western ridge, Mr Blackley said activity had slowed but it was only a matter of

tal approval. “If this happens, the community will be consulted with at the time and prior to commencement of any extended mining activities,” a company spokesperson said. Working through governmental approvals, Xstrata Coal remains on track to have construction started on the 30-milliontonne-a-year Wandoan coal mine by 2012. The spokesperson admitted though that there may be other powers outside of government that decide the fate of the Wandoan mine. “Ultimately, the feasibility of the Wandoan Coal Project will be determined by a number of factors, including the economic climate, thermal coal market outlook and resolution of infrastructure plans and costs.” time before the inevitable kicked into gear. “We can't do anything about it — they're the ones spending the big money and who want to do the development,” he said. “The government has given them significant project status so it's going to go ahead anyways. We just have to try and make it a win-win as much as we can.”

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RESOURCES

Origin gears up for

LNG giant regional On the back of a declaration of state $35 billion LNG project on the road

D I N D U S T R I A L B O LT S A N D FA S T E N E R S

Origin held a series of community information days across the region, visiting Dalby, Chinchilla, Miles and Roma. In Chinchilla on May 14, Origin EIS and stakeholder manager Ken Horton said feedback from people who attended the information days was largely positive. He said activity across the Surat Basin would be long term, with Origin targeting between 350 and 500 wells a year for the next 20 years The gas fields Origin plans to develop cover an area of around 370,000 hectares from Wallumbilla to Millmerran. “This is a 30 year project — we're not going to be developing everything at once,” Mr Horton said. “What we're going to be doing is

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eclared significant and with another milestone approaching, Origin Energy took its $35 billion liquefied natural gas project on the road last month. Australian Pacific LNG, jointly owned by Origin Energy and the US company ConocoPhillips, could employ up to 5000 people to build potentially Australia's largest LNG plant at Gladstone. One thousand people may be needed to run the gas fields and LNG plant. APLNG could be exporting 3.5 million tonnes of LNG a year by 2014 with production to climb to almost 16 million tonnes by 2015. Five weeks after it was declared of state significance,

Surat Basin Corporation president Greg West talks with Origin’s Ken Horton during the community information day in May.

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RESOURCES

project worth $35 billion and employing 5000

taken on road trip significance, Origin took its to visit Miles, Chinchilla and Roma. developing some of the major infrastructure, the wells close to that infrastructure and then building out from there.” Mr Horton said the Australia Pacific LNG project remained on track despite the global downturn. “There's always going to be a need for energy, there's always going to be a need for clean energy,” he said. “We also feel that we've got the best project out of all the proponents and we're confident that our project is going to go ahead.” Origin Energy will be responsible for the development and management of the CSG facilities including the gas fields and

pipeline. ConocoPhillips will take care of the construction and management of the LNG plant. Project director Todd Creeger said the declaration was an important milestone for the project. “We're creating a new long term industry in Queensland which will deliver jobs and further investment in the region,” he said. “We have Australia's largest and most developed CSG resource and we will use that resource to supply this project.” The Australia Pacific LNG project Environmental Impact Statement should be released by early next year.

Origin’s executive general manager, upstream oil and gas, Paul Zealand (right), discusses the Taloona plant with Minister for Mines and Energy Stephen Robertson.

Leadership consolidated The Spring Gully gas field near Roma is now supplying about one quarter of the state’s gas needs as a result of a new gas plant coming on stream. The Taloona plant was constructed as part of the $250 million Phase Five of the Spring Gully development undertaken by Origin. The plant was officially opened in May by Minister for Mines and Energy, Stephen Robertson.

Origin’s executive general manager, upstream oil and gas, Paul Zealand, said the plant would enable the further development of the gas resource in the southern end of the Spring Gully field. “With Taloona, we now sup-

ply approximately one quarter of Queensland’s natural gas needs from the Spring Gully site,” he said. “This reinforces APLNG’s position as a leading player in the CSG industry with Queensland’s largest undeveloped reserves.”

“This reinforces APLNG’s position as a leading player in the CSG industry...” — Origin Energy’s Paul Zealand

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PAGE 17

RESOURCES

Santos in pole position Santos could be leading the LNG pack to Gladstone after striking a 20-year supply deal In the race to LNG shipping out of Gladstone, Santos may have just edged ahead this month after securing a customer for a large slice of its product. The 20-year deal with joint venture partner Petronas, a Malaysian energy business, ensures from 2014 Santos can begin selling two million tonnes of LNG a year with an option for another million tonnes. Of the four LNG proponents working in the Surat Basin, BG Group is the only other with a supply contract. Santos CEO David Knox said the marketing agreement was a very important milestone for the GLNG project, which

EIS DELIVERED The 13,500 page GLNG project EIS examines the impacts and benefits of the three major project components: • Coal seam gas fields (near Roma) • Transmission gas pipeline (435km pipeline connecting Roma to Curtis Island) • LNG liquefaction and export facility on Curtis Island

Santos team leader environment Nick Fox, president GLNG Rick Wilkinson and the EIS for the GLNG project. would pipe gas from fields near Roma to a liquefaction plant on Curtis Island where it would be shipped to Asian markets. “The development of the GLNG project will see the creation of thousands of jobs in regional Queensland and bring long-term benefits to the communities in which we are working, from our

coal seam gas fields around Roma to the site of the LNG plant in Gladstone,” Mr Knox said. “Up to 6000 jobs would be created in the development of the three train LNG plant outlined in the Environmental Impact Statement recently submitted to the Queensland Government."

The document is available online at www.dip.qld.gov.au/projects, www.glng.com or www.santos.com. The EIS for the project was released publicly on June 22 with both Santos and Petronas on track for a final investment decision early next year. GLNG president Rick Wilkinson said GLNG

was the first major integrated CSG-to-LNG project to release an EIS for public comment — an important step in the environmental assessment process for the project.

“It is the result of almost 18 months of investigations by environmental and other specialists to examine the impacts and benefits of the GLNG project,” he said. “At almost 13,500 pages of general and technical information, the GLNG EIS assesses the project impact from our gas fields near Roma, to the proposed plant on Curtis Island.” Mr Wilkinson said the Coordinator-General had reviewed a draft of the EIS to ensure that it sufficiently addressed the terms of reference, and to allow assessment of the project to progress to a new public consultation stage. “This important stage of public consultation is a major milestone for the project,” Mr Knox said. GLNG will commence a fourth round of full public consultation meetings and briefings throughout the state.

“This important stage of public consultation is a major milestone for the project.” — GLNG president Rick Wilkinson

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Surat Basin NEWS Thursday 25 June 2009

RESOURCES

“We will be generating more production history and generating revenue, which helps the business and helps our proof of concept.”

Sparks fly on and off the share market Carbon Energy's meteoric rise out of Bloodwood Creek should have it creating a spark or two within the next six months and not just on the share market. With $32 million raised this month Carbon has set its sights on having a five megawatt power generator operational by the end of 2009 — 12 months after the first syngas was produced as part of a 100-day trial. CEO Andrew Dash said power generation would allow Carbon to create a revenue and test its technology as it worked towards more ambitious commercial options. “We will be generating more production history and generating revenue, which helps the business and helps our proof of concept,” he said. Another 20 megawatt unit is expected to follow in 2010. “What we're doing in parallel with the smaller generation project is the feasibility and design of the largest project,” Mr Dash said. Carbon's plans have always been to move into power generation before using its syngas to feed major manufacturing plants located on-site at Bloodwood Creek. With Incitec Pivot, 2011/12 has been the tentative date set for the opening of a fertiliser plant capable of producing 1000 tonnes a day. Mr Dash said the $32 million capital raising highlighted the confidence in Carbon and what it had achieved in its short history. “We're pretty pleased,” he said. “We went from this time last year raising money, to doing the trial and successfully constructing a world first design in October last year. “And we've been successfully gassifying coal since that time.” While Bloodwood Creek is located 40km south-west of Dalby and is closest to the small, country town of Kogan, Mr Dash still expects Carbon's activities to benefit local communities. “The local community is very important to us,” he said. “Already, we are employing 12 local people out on site and we're looking at getting very engaged with the towns of Kogan, Dalby and Chinchilla.”

Coal miner targets UCG project Sixty kilometres south-west from Wandoan a coal miner is branching out into an industry it feels contains answers to Australia's growing appetite for fuels. MetroCoal, an 84 per cent owned subsidiary of Metallica Minerals, has announced an initial resource at its Juandah site large enough to support a major underground coal gasification project. Chief executive Mike O'Brien said the 171 million tonne resource could see MetroCoal one day producing 20,000 barrels of high quality, cleaner liquid fuel a day. He said trials and the commissioning of a demonstration plant should be completed within three years. “We've still got a lot of work to do to establish the final shape of a UCG interest and at this stage we're exploring a

number of options,” Mr O'Brien said. “But the size of the resource is such that it could support a significant installation producing in the order of 20,0000 barrels a day.” Unlike other UCG companies working in the Surat Basin, MetroCoal's project is not burdened by overlapping coal seam gas tenements, a considerable advantage according to Mr O'Brien. With the State Government policy that resolved conflict between CSG and UCG companies earlier this year, MetroCoal was been granted exclusive tenure at Juandah. “That means that there is no other competition for the resource in the area and we essentially have sole access to it," Mr O'Brien said. Mr O'Brien said Australia's growing reliance on imported

fuels made UCG a commercially viable option but the challenge would come in developing the technology. “The individual components of UCG and syngas processing are reasonably well understood,” Mr O'Brien said. “What remains is the significant challenge of joining all the aspects together into a single commercial application. “But we have no doubt the demand is there and that Queensland and Australia will be looking for alternative sources of liquid fuels for years to come.” Along with its UCG project at Juandah, MetroCoal has an extensive network of coal tenements across the Surat Basin it plans to mine, potentially before its commercial UCG plant opens. “At the moment, we're essentially an explorer,” Mr

O'Brien said. “But we'll be building up to becoming a producer. “UCG I suspect is longer term - a project for further in the future.” With its coal mining aspirations hinging on the realisation of the Surat Basin railway, Mr O'Brien called on all tiers of government to assist in the development of the key project. “I think this is one of the very important infrastructure projects that have slipped through the net,” he said. “We think both the state and federal governments need to make a firm commitment to infrastructure by getting involved in that.” Mr O'Brien said exploration would continue at Juandah while MetroCoal finalises its technological options, possibly with joint venture partners.

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RESOURCES

Ready to roll on Cameby Downs ext month, Syntech Resources will start unwrapping one of the Surat Basin's largest coal deposits. The $250 million Cameby Downs coal mine, located on top of 1.7 billion tonnes of coal between Chinchilla and Miles, should be operational by 2010. Syntech will take 1.4 million tonnes of coal a year through to the Port of Brisbane in the initial stage but within the next four years that could grow to 20mtpa as access to Gladstone becomes available. CEO Darian Hielscher said major expansion of the Cameby Downs resource would take place in line with the Surat Basin Railway and Wiggins Island Coal Terminal. Up until 2013 though — the expected completion date of both projects — he said the company would consolidate and enhance its place as a producer.

“What it gives us is the opportunity to get into the market early (and) develop a customer base...” — Syntech Resources CEO Darian Hielscher

“This view is enhanced by our confidence in the stability of the Queensland business environment.” — Direct Invest director Erik Schaefer

With a $250 million investment from Direct Invest, Syntech Resources is lining up to begin works on a Surat Basin coal mine that should be operational by the middle of next year. “What it gives us is the opportunity to get into the market early, develop a customer base and there's also a learning curve that comes with the deposit itself and with processing coal. “When we go into major expansion, we've had the practical experience.” Stage one should take a 100-person workforce 12 months to construct while 100 employees will be employed during operations. Stage two could see the workforce grow to 600.

German global investment company Direct Invest paved the way for construction to start when it announced a $250 million investment into the project at a June 11 meeting in Brisbane with Queensland Premier Anna Bligh and Federal Trade Minister Simon Crean. Direct Invest director Erik Schaefer said

Queensland had huge potential to become a leader in sustainable energy developments. “As well as the jobs and regional development represented by these investments, we believe there is significant scope for further value adding because of Queensland's rich resource base,” he said. “This view is enhanced

by our confidence in the stability of the Queensland business environment.” Cameby Downs first made headlines in 2005 and Mr Hielscher said a lot of hard work had gone into securing coal contracts and Syntech's place on the Queensland Rail network. “It's a credit to QR to find the space in the net-

“When we go into major expansion, we’ve had the practical experience.” — Syntech Resources CEO Darian Hielscher

work,” he said. “It was very hard — very, very hard — and it's taken a long time and a lot of hard work from everybody involved." Mr Hielscher said Syntech's use of waste water from coal seam gas fields to wash coal was another benefit of the Cameby Downs project to Surat Basin towns. “I think it's a bonus for the whole Surat Basin to have a beneficial use for the water,” he said. Mr Hielscher said Cameby Downs was a significant resource of in excess of 1.7 billion tonnes of open cut high quality thermal coal of which more than 700 million tonnes was already drilled to JORC standard. He admitted being excited about the impending start to mining. “We're a private company so we've kept a low profile but we thought it was time to let people know we're around and we've got big things planned,” Mr Hielscher said.

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Surat Basin News

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“Locals and people from away seem generally interested in what is happening out here.” — Surat Basin Homes’ Di Ewen

Design, create or hire at Jonker Engineering Recognising the relationship between heavy earthmoving equipment and heavy engineering, the Jonker Group has diversified and established Jonker Engineering in Dalby. The company was established by acquiring a local engineering company which had been operating in the area for the past 30 years, employing the region's best qualified staff to service a variety of industries, including mining, agriculture, construction and transport. Since the Jonker Group acquired this business in 2007, it has expanded services by supplying some of the largest specialised engineering equipment on the east coast. These include varieties such as an 800-tonne steel press, guillotines, three-metre lathe, profile cutting machine, the latest in computer aided drafting

and one of eastern Australia's largest CNC milling machines. To meet client demand, Jonker Engineering's capabilities have been widened to include: • any-size Idler rebuilds • fabrication of compactor wheels, water tanks and compactors • re-skinning of dozer, grader blades and dump truck trays • re-lugging of dozer plates, D8 and up • refurbishment of dump truck trays, grader circles, equaliser bars • repairs of all excavator buckets • compactor conversion • sandblasting and painting • mechanical repairs • general fabrication • line boring of all sizes • milling • design and repairs of earth-

moving equipment, attachments and associated components Jonker Engineering's turn around time in addition to expertise saves a client money. Crack testing, sandblasting and painting rims and hydraulic cylinder re-sealing are two small but critical services provided within a 24-hour turn around. Design and engineering of efficient coal bucket cutting edges, dump truck tray volume enlargement and many other specialised engineering requirements are also undertaken. As part of the Jonker Group Service, the hiring of earth moving machinery is also available. Personnel, equipment and systems have enabled Jonker to undertake and assist in many major projects Australia wide. The fleet consists of late model machines including:

Surat Basin NEWS Thursday 25 June 2009

• Dozers • Articulated Dump Trucks • Wheel Loaders • Off Highway Trucks • Graders • Water Trucks 8000 — 50000 litres • Compactors • Site Vehicles • Smooth and Padfoot Rollers • Mobile Lighting Towers up to 24,000 watts • Containers • Self bunded shipping containers for oil storage • Tyre handlers Equipment can be offered on a short or long term basis with fully maintained mechanical services. As an integrated service provider, Jonker Group has the resources, expertise and industry experience to provide clients with cost effective solutions to engineering and plant hire requirements.

PAGE 21

COMPANIES

Arrow’s ground zero Arrow Energy has started construction of a new office, workshop and warehouse complex in Dalby to accommodate its expanding workforce in the region. The $7.5 million project will be located in Healy Street and is expected to be completed by February 2010. The complex will be the operational hub for Arrow’s coal seam gas developments in the Surat Basin and consist of three main buildings and associated facilities. Speaking at a sodturning ceremony to commemorate the start of construction of the project, Arrow Energy CEO (Australia) Shaun Scott said the new project demonstrated the company’s commitment to the Western Downs region. “The company is making this investment because we expect to double our Dalby workforce from 70 to 140 within the next two years as well as engage a large number of contractors to service our growing production and workload,” Mr Scott said. “Arrow currently has three producing fields in

Work starts on Dalby operational hub

the Surat Basin and plans to add several more as we realise our longterm vision for the region. “This new office complex will offer first-class facilities for our staff to work and develop their careers as well provide room to move, grow and

function at the highest operational standards.” Mr Scott said it was Arrow’s intention to spend as much of the budget in the local area as possible and the company is currently talking to a number of local builders and suppliers

about their involvement in the project. Toowoomba-based company Stafford Adamson are responsible for managing the project’s design and construction. A two level main office

block will accommodate more than 60 people and feature a training facilities, meeting rooms, kitchen, first aid room, and change facilities. A primary warehouse will provide storage area for spare parts and supplies and incorporate a

major casing yard and forklift storage area. Other buildings include a main workshop and washdown area and an undercover outdoor meeting area capable of seating 140 people. Rainwater harvesting will take place from various roofs in the complex and be used to irrigate the gardens that will be a part of the site. Extensive green areas will be used to minimise heat and dust to minimise disturbance of neighbouring properties. Existing mature trees on the site will be retained where possible. LEFT: Dalby Regional mayor Ray Brown and CEO Phil Berting join Arrow CEO Shaun Scott (with shovel) in the start of works on the company’s new office complex. They are watched by (second from left) asset manager Peter Roles, production manager Jason Schroder and Dalby Chamber of Commerce and Industry vice-president Roz Skerman.

‘Linc’ with emergency crews Emergency crews were called to Linc Energy’s gas-to-liquids demonstration plant in May. The mock exercise involved fire, police and ambulance crews responding to two injured workers, a gas explosion and toxic chemical spill. Linc site safety adviser Mark Baldacchino said the exercise would improve the company’s capacity to deal with an emergency. “We want to learn from it and identify any opportunities to improve,” he said. “That’s what this is all about.”

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COMPANIES

Company opens new Chinchilla headquarters H&R Block, Australia's largest network of tax accountants, is pleased to announce the opening of a new office in Chinchilla. Rapidly changing and expanding taxation laws in recent years have resulted in an increased demand for professional taxation return preparation services. In fact more than 70 per cent of individual tax returns are lodged by a tax agent. The introduction of the new H&R Block office, dedicated to serving the tax needs of Chinchilla and surrounds will provide local clients and businesses with a fast, accurate service that is covered by the H&R Block guarantee. With more than 35 years experience in the Tax return preparation business in Australia, H&R Block has a network of over 370 offices throughout Australia. The company brings a history of strong growth and stability to their operation. H&R Block is the largest lodger of individual tax returns in Australia. Andrew Wilson Franchise, manager from H&R Block, said confusing and stressful taxation time worries could be a concern of the past. “Taxation laws are constantly changing, often creating a headache for people whose main concern is receiving a prompt, accurate tax return. “Our professionally trained team can answer any questions, and importantly provide an answer on the spot to your individual tax query.”

Bullivants a key partner in safe workplaces Is your lifting and height safety equipment safe to use? Bullivants Toowoomba is now carrying out all inspections by utilising the Bullivants Electronic Asset Management (BEAM) system. This is a system designed to provide customers with maximum operational efficiency when dealing with their lifting registers and any other assets which

ABOVE: Bullivants’ mobile test trailers allow technicians to go to clients. INSET: All of Bullivants qualified technicians use PDA units. ing our customers are always meeting their compliance requirements Bullivants is able to offer a complete solution (supply, inspect, test, repair, certify, design and reporting). The company has the latest NATA accredited laboratories and operators to

carry out your inspection work and the flexibility of its mobile test trailers allows staff to come to you meaning that your valuable assets never need to leave site. For more information on Bullivants and its capabilities please contact Brad Redgrave or Matt Sweet on (07) 4634 9155.

Walsh and Ford breaks into drilling industry Longstanding Dalby company, Walsh and Ford is taking steps to capitalise on the Surat Basin mining boom, signing a distributor agreement with national drilling supplier, DPSA Drilling Equipment. Walsh and Ford, which has been

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require periodical inspection and testing. BEAM brings asset management into the 21st century by replacing hand written registers with a 24/7 online electronic method. All Bullivants’ NATA accredited technical service representatives now carry hand held PDA units to enable instant upload and availability of registers to our customers within one working day via a secure web portal. Any assets which require inspection can be handled by BEAM, whether it be lifting chains, fall protection equipment or fabricated product. Correct testing procedures are crucial in keeping a workplace safe and the Bullivants system provides an electronic reminder when an asset is due for inspection so ensur-

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serving the agricultural sector for 60 years, will now distribute and service a range of DPSA Drilling Equipment products, including hammers and bits, drilling consumables and Australian-made drill rigs. Walsh and Ford director Peter

Walsh said the agreement will be a win-win for both companies. “Walsh and Ford can now offer an on supply service to the region’s drilling contractors and our contacts and stature will help DPSA increase their presence in the Surat Basin.”

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Enerflex on an east coast expansion Headquarters in Brisbane on the move as Roma expands and diversifies Enerflex is experiencing significant growth on the east coast of Australia where it has been operating for more than two years through its Brisbane location. In this short period, Enerflex has quickly established itself as a key player in the local market with more than 160 staff, located in the office, workshop and project sites. With this rapid expansion, Enerflex has out grown its premises in Eagle Farm. Taking into consideration the long term growth prospect in the region, a new office is planned to be constructed at Trade Coast Central Brisbane,

due for completion in 2010. As part of an expansion strategy, Enerflex Service opened the doors of the Roma office 12 months ago with two staff members. Since that time, the Roma facility has grown to 13 staff members and a new warehouse/workshop is currently being built to enable Enerflex to continue the high level of service to a growing client base. The Roma office is not only expanding in staff and facilities, but also in the variety of services available. Enerflex Service offers full Waukesha engine and Ariel compressor rebuilding and maintenance services including performance optimisation, commissioning, preventative maintenance and an extensive range of parts to assist in completing Enerflex Service projects successfully. So what’s driving the Enerflex expansion? The development of the coal seam gas reserves in the east coast of Australia for domestic and international LNG demand

Surat Basin NEWS Thursday 25 June 2009

and export. Enerflex capitalises on the associated infrastructure needed to develop and transport this resource to market. Enerflex is a leading supplier of products and services to the global oil and gas production industry. Its core expertise is the supply of products and services between the wellhead and the pipeline. Enerflex provides natural gas compression and process equipment for sale or lease, hydrocarbon production and processing facilities, electrical, instrumentation and control services and a comprehensive package of field maintenance and contracting capabilities. Through the ability to provide these products and services in an integrated manner, or as stand-alone offerings, Enerflex offers its customers a unique value proposition. Headquartered in Canada, Enerflex has about 2870 employees worldwide with upwards of 600 employed in Australia.

Surat Basin News

A GREEN, VIABLE SOLUTION Santos has coal seam water flowing

INFRASTRUCTURE www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

SUPER HIGHWAY: The 2009-10 State Budget included $30 million to clear the way for a gas super-highway

PAGE 26

Surat gas linked to south Epic and AGL joined together to open a new gas pipeline network linking Surat Basin coal seam gas with the massive markets of the south. PAGE 27

Linc opens Chinchilla plant A year after Linc produced the first liquid fuels from its birthplace in Chinchilla, Federal Member for Resources Martin Ferguson opened the facility.

Budget’s vote of confidence in Surat Basin The 2009-2010 State Budget may have painted a grim picture for much of Queensland but it featured a clear vote of confidence in the coal seam gas reserves of the Surat Basin. The Queensland Government announced $30 million would be spent on land to build an LNG precinct at Gladstone and a pipeline from the Surat Basin to support a burgeoning, multi-billion-dollar industry. Plans are to acquire a 70km long and 200-metre wide “gas super-highway” between Callide and the Gladstone State Development Area to accommodate the co-location of LNG pipelines to Curtis Island. Eight proponents are currently proposing more than $40 billion in LNG export industries in Queensland. Premier Anna Bligh said the Budget allocation was another step towards creating an industry that

“We are committed, we are confident and we are ready to roll.” — Queensland Premier Anna Bligh

Federal member on Warrego collision course Federal Member for Maranoa Bruce Scott is on a collision course with the Federal Government over the state of the Warrego Highway. Mr Scott was angered when the 2009-2010 State Budget revealed only $8 million of federal money would be spent over the next year on works between Mitchell and Roma. Another $32 million is to spent over the next four years. “This is not acceptable,” Mr Scott said. “It should be a priority

and the money brought forward.” Mr Scott was even more concerned to discover $15 million of a $55 million commitment to the highway at the last Federal election had gone missing. That money was for passing lanes between Dalby and Oakey and rest areas along the Warrego Highway. A 2008 Main Roads report estimated it would cost around $565 million to fix the stretch of highway from Toowoomba to the western Queensland.

Federal Member for Maranoa Bruce Scott is demanding action on the standard of the Warrego Highway. Mr Scott wants as much of that $565 million

Surat Basin NEWS Thursday 25 June 2009

he can get out of the Rudd Government and has a

petition to that effect circulating across Maranoa.

PAGE 25

INFRASTRUCTURE

Epic managing director Steve Banning discusses the new east Australian gas grid (show on the inset) to Queensland MP Michael Choi, South Australian Minister for Infrastructure and Energy Patrick Conlon and AGL managing director Michael Fraser.

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The heartland of Queensland’s coal seam gas was connected to a new artery in May pumping gas into the fuel starved southern states. Outside Wallumbilla at Epic Energy’s compressor station, delegates from the South Australian and Queensland governments opened the valve on the final missing link needed to connect the states. The 180km pipeline known as the QSN Link was one

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try. “Queensland’s gas has come a long way in the last 15 years but today’s opening represents an exciting new phase for Queensland’s industry as well as the whole east coast energy market,” he said. From Wallumbilla, coal seam gas will be piped 1716km to Adelaide while future extensions will connect with Sydney, Mt Isa, Gladstone and Brisbane. South Australian Minster for Infrastructure and Energy Patrick Conlon said the network would grow increasingly critical as Australia moved towards an emissions trading scheme “This will give us a smooth flight path into a carbon restricted future,” he said.

section of an extensive network opened on May 14 to allow Surat Basin coal seam gas to flow into South Australia and New South Wales. AGL managing director Michael Fraser said opening the east Australian gas grid created by AGL and Epic’s pipeline network was a watershed moment for both. “I don’t think there’s been one more important than this one in terms of energy supply for the country and the commercialisation of what is such a large resource here in Queensland,” he said. Queensland Minister Michael Choi agreed the network was another important milestone for the state’s burgeoning coal seam gas indus-

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Surat Basin NEWS Thursday 25 June 2009

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Linc opens birthplace of world first technologies Linc Energy might be doing its money making down south but showed in April that Chinchilla had a part to play. The pioneer of underground coal gasification in Australia officially opened its demonstration facility 25km south-east of Chinchilla. The billion-dollar gas to liquids plant was started in 2007 and produced the first liquid fuels in April last year. It was to be the site of a major liquid fuels plant but Linc’s commercial

BY John Farmer editorial @suratbasin.com.au

ambitions earlier this year controversially moved to South Australia. At April’s site opening, Linc CEO Peter Bond said the Chinchilla facility would be integral to research and technology development. He said Linc’s journey from the first pilot burns

of the late 1990s to the April 22 opening owed a lot to its staff on site. “This was just a green paddock with cows and now it is a world first operation and world first achievement,” he said. Federal Minister for Resources Martin Ferguson was in Chinchilla for the opening. He said GTL technologies like those being pioneered by Linc could be Australia’s answer to energy security. “This technology

unlocks energy from Australia's significant stranded and uneconomic coal reserves and has the potential to dramatically reduce Australia's dependence upon imported oil and refined products.” Mr Ferguson said the industry would create employment in the Surat Basin — “a key regional centre” — and become the platform for a new export industry. “We’re here to celebrate the terrific success of a home-grown industry,” he said.

Linc Energy CEO Peter Bond takes Federal Minister for Resources Martin Ferguson on a tour of the Chinchilla demonstration plant.

“We’re here to celebrate the terrific success of a home-grown industry.”

- Federal Minister for Resources, Martin Ferguson

Kogan Creek switches off

CS Energy's Grant Mintram behind the control panel of the Kogan Creek Power Station.

The Kogan Creek Power Station supported Earth Hour 2009 in March by switching off all nonessential electricity onsite. Station manager Ivan Mapp said power demand dropped by a reported 10 per cent across the east coast during Earth Hour. During the event on March 28, a small band of workers stayed ‘switched on’ in the control room of the power station. Their job was the same as every other shift - monitoring the plant and ensuring the power station’s systems remained stable.

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PAGE 27

INFRASTRUCTURE

“For each plantation, there may be opportunities for commercial timber harvesting or carbon sequestration, or both.”

Waste water has Santos sprouting green innovation Santos to create one of Australia's largest Chinchilla white gum plantations Santos president GLNG and Queensland Rick Wilkinson at the launch of the CSG water irrigation project, which will see one of Australia's largest Chinchilla White Gum plantations sustained using water produced during CSG extraction.

One of Australia's largest Chinchilla white gum plantations will be developed near Fairview by Santos, as part of its multi-billion dollar GLNG project. The $50-million first stage of

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the plantation has been approved by the Queensland Government. It comprises two million native Chinchilla hardwood gum trees and agricultural feed crops over 2234 hectares. It will be the first large-scale plantation project approved for the beneficial use of water produced in the extraction of coal seam gas. Plans are currently under discussion to extend the plantation up to six million trees. GLNG and Queensland president Rick Wilkinson said more than 515,000 trees had already been planted and 1300 kilometres of irrigation pipelines had been laid. A further 715,000 trees would be planted in the next three months. “Gas producers around the world, and particularly here in Queensland, have been working to find a way to beneficially use up to tens of megalitres of water produced each day in the extraction of gas from coal seams,” he said. “It is the major difference — and challenge — between extracting conventional natural gas, and producing coal seam gas.” “Coal seam gas is natural gas trapped in deep underground

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coal seams by pressure and water. “When the gas is brought to the surface, the water contained with it in the coal seams rises too. Maximising the use of this water has been a long-standing challenge for CSG producers around the world.” Santos, one of Australia's largest oil and gas producers, and its partner Malaysia's Petronas have 10 drilling and completion rigs operating in the Fairview/Roma area as they develop the gas reserves to feed the proposed GLNG plant on Curtis Island in Gladstone. Mr Wilkinson said the plantation not only delivered an innovative Australian solution to a global challenge, but it offered significant sustainable benefits to the environment and the Queensland community. “For each plantation, there

“Maximising the use of this water has been a long-standing challenge for CSG producers around the world.” — Santos’ Rick Wilkinson

INFRASTRUCTURE

“This is a Santos and Petronas funded commitment that will improve the sustainability of rural communities.” — GLNG’s Rick Wilkinson

ABOVE: Santos Glen Anyon at the forestry plantation RIGHT: CEO GLNG operations Roger Kennett, Roma Regional mayor Rob Loughnan, president GLNG and Queensland Rick Wilkinson and Petronas CEO Majid Khalil at the plantation launch.

“We anticipate up to 20 specialist contracting companies and four full time staff will be needed to maintain and monitor the forest.” — Santos’ Rick Wilkinson may be opportunities for commercial timber harvesting or carbon sequestration, or both. “Timber harvesting could occur at years six and eight. “For stage one alone, we could expect to be producing up to 400 cubic metres of saw logs per hectare for milling — during final harvesting 25 years from now.” A further 234ha of centre pivot irrigation has been constructed which is currently providing water to winter crops and will eventually be applied to leucaena. “This high quality cattle forage could be expected to significantly increase beef production in the area,” Mr Wilkinson said. “In stage on, four new water treatment plants and an existing desalination plant will treat around 24 mega litres (10 Olympic sized swimming pools) of water a day for drip irrigation onto the native hardwood gums, and irrigation of agricultural crops. “In the plans for further expansion, the combined water handling capability would be up to 72 megalitres a day.” Santos has also installed state

of the art water and soil monitoring facilities at locations throughout the plantation and on local rivers and adjoining properties. Mr Wilkinson said Santos was committed to the sustainable management of the plantation within strict guidelines that had been agreed with the regulators. He said the project would create up to 100 jobs as well as major research opportunities for the Australian agroforestry and water industries. Mr Wilkinson expected there would also be educational opportunities for schools and universities around beneficial water use and carbon emission reduction. “There are already eight local and regional contractors with 60 staff engaged in cultivation, mulching, tree planting and ongoing site preparation,” he said. “We anticipate up to 20 specialist contracting companies and four full time staff will be needed to maintain and monitor the forest. “This is a Santos and Petronas funded commitment that will improve the sustainability of rural communities.'

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PAGE 29

Surat Basin News

THE PEOPLE

www.suratbasin.com.au

VOICE YOUR OPINION: editorial@suratbasin.com.au

LOCAL SUPPORT: The State Government has delivered on a promise made to Surat Basin stakeholders at Dalby summit

Mines team hits the ground to calm Surat Basin tensions PAGE 26

Arrow sets up in Dalby Arrow Energy brought a gas field to the heart of Dalby last month as it held a community day at the Dalby Showgrounds. Hundreds flocked to learn about the coal seam gas industry. PAGE 26

Local returns to represent farmer needs Will Nothdurft is back in Chinchilla to work with landowners as Origin Energy’s senior landowner liaison officer.

flagged as an impediment to regional development. “It's important that all stakeholders are aware of their rights and responsibilities during this period of unprecedented opportunity.” Mr Roche said other service providers needed to take a similarly “fresh look” at the Surat Basin. “Decades of slow decline in

Santos jobs out west just gold Golden West Employment Solutions and Santos announced this month their partnership employing country people for country jobs. This relationship will initially involve Golden West apprentices hosted to Santos in the Surat Basin gas field projects. Four apprenticeships will be employed locally in the first year with the possibility of increased apprentice employment in subsequent years. The initial apprentice positions include electrician instrumentation apprenticeships and engineering mechanical (diesel fitting) appren-

PAGE 30

Department of Mines and Energy administration staff Maggie Burey and Janet Hogarth (second front right) with deputy mining registrars Waanda McCarthy and Todd Ellis.

resolve mining and exploration issues, inform landholders of their rights or initiate compliance action where required, the department spokesperson said. “Landholders and explorers in the Surat Basin will have better access to information about mining, petroleum and gas exploration in the region with two new deputy mining registrars based at Roma.” Mines and Energy Minister Stephen Robertson said the registrars would help balance the rights of landholders and explorers. “Agriculture and the resource industries are both vitally important to the Queensland economy and the government believes both industries can continue to coexist harmoniously as they have for many years,“ he said. Todd and Waanda service Dalby by visiting on Wednesday of each week the Department of Environment and Resource Management office on Level 3, Ergon Energy Building in Marble Street. Extra visits can be made as required. Appointments for both offices can be made by calling 4624 1512 or 4624 1536.

ticeships. Golden West employment solutions, sales manager, Graham Moore said it had been a long process coming to the agreement. “Santos' commitment to rural community vocational training and skills development is exciting and offers real vocational opportunities to rural youth.” Jamie Miller, a community liaison officer for

Santos said the company looked forward to building a relationship with Golden West. “With the current skills shortage in western Queensland we believe it is important to employ applicants locally.” If you are interested in registering as an apprentice, trainee or host employer please call 1300 650 775 or visit www.goldenwest. org.au.

“With the current skills shortage... we believe it is important to employ applicants locally.” — Santos’ Jamie Miller

Surat Basin NEWS Thursday 25 June 2009

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PEOPLE

@Work on the Surat Diversity and innovation

Local fields call Will back from overseas shores Origin's operations, and working with them to ensure their needs are addressed. “I really enjoy just having a good yarn,” Will said. “Every property owner I meet has a different outlook on life and a different vision for their property, so I'm constantly learning new things. “I'm the one who represents their needs to the rest of the company, so it's important I understand their concerns and make sure they're properly addressed. “In this role, no two days are the same, but I suppose that's what keeps life interesting."

Will Nothdurft is back in Chinchilla working for Origin Energy.

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TOOWOOMBA REGIONAL COUNCIL

Career Opportunities At Toowoomba Regional Council Toowoomba Regional Council is servicing a regional population of 151,000 with a staff of 1,600. The rapidly growing region offers a wealth of opportunities for those looking for a rewarding career based in one of South-East Queensland’s most sought-after areas. It offers all the beneﬁts of urban and country living including some of Australia’s ﬁnest education facilities, highly regarded health services and a growing reputation for restaurants, coffee shops and wineries. Some of our vacant positions are in Engineering, Planning, Environmental Health, Administration and Plumbing.

To ﬁnd out about all positions currently available please visit our website

www.toowoombaRC.qld.gov.au/jobs Ken Gouldthorp CHIEF EXECUTIVE OFFICER

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After working in an underground mine on the other side of the continent for four years, Origin Energy senior landowner liaison officer Will Nothdurft finally saw the light and moved back to the Western Downs town of Chinchilla. Returning to his home town was an ‘inevitable' step, as all the things he loves can be found in this small but thriving community — family, friends and his work with local landowners. More than happy to be out in the field rather than behind a desk, Will travels the district talking with landowners about

Operations supervisor, Fairview, Belinda Wells has been with Santos for eight years, working across the organisation. With a degree in mechanical engineering, she held roles in maintenance and engineering before taking on the plant supervisor role at Fairview earlier this year. Working back-to-back two week shifts, Belinda is in charge of the day-to-day operation of the gas plant at Fairview. Her responsibilities cover operations and maintenance, safety and environmental issues, managing minor projects, and co-ordinating about 12 employees. “I am lucky to have a job that offers such great diversity, allows me to work with terrific people and live in such a beautiful part of the country”' she said. “It is exciting to be a part of the CSG industry in its early stages, especially when I see Santos working closely with the local community to realise mutual benefits.” When not on site, Belinda spends her time in Taroom Santos’ Belinda Wells is enjoying with her husband Matt, who, the diversity an innovative is the site supervisor at industry like coal seam gas offers. Santos' gas plant at Scotia.

PO Box 3021 Toowoomba Village Fair QLD 4350 T 07 4688 6611 www.toowoombaRC.qld.gov.au/jobs

Surat Basin NEWS Thursday 25 June 2009

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PEOPLE

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Working in the oil and gas industry might just be in Jason Bunt's blood. The 35-year-old father of two has had a long history in the industry, as has his father Neil who has served as a fitter in the Roma and Jackson oil fields for the past 30 years. In his role ensuring gas production from Spring Gully, Strathblane and Taloona Gas plants, Jason is in charge of keeping infrastructure working to its full potential.

“The best part about this job is that I'm constantly learning and being challenged, and I enjoy the opportunities working within a rapidly expanding organisation brings,” Jason said. “But I guess what really keeps me coming back is the fact that if you don't show up you apparently stop getting paid.” Jason manages a team of plant operators, mechanical and electrical tradespeople and

apprentices to meet daily targets in the three plants. He also completes the onsite scheduling and maintenance activities and makes safety a priority for his team. “If we all work with a safe focus, look out for each other and follow procedures, we all get to go home at the end of our shift.” Jason travels from his family home in Roma to the Spring Gully gas field for his two week shifts.

Life’s a picnic on Yellowbank Origin's ‘Yellowbank' gas field can be found 165 kilometres north of Roma, set amongst grazing properties on the edge of the central Queensland sandstone belt. Hidden among the gum trees, the bush site houses all the workers who make it operational, and often hosts a few of the other local residents when the wallabies and an occasional echidna turn up to sample the lawns. Operator and apprentice diesel fitter Scott Martyn resides at the permanent camp two weeks every month. “We've got eight houses here with two people assigned to a house, although we're on opposite shifts so it's not like you

cross paths often,” Scott explained. “I've got my own cooking area, bedrooms, TV, living area.... it's not quite like home, but it's the next best thing.” Scott appreciates the variety his job offers outside an office environment — assisting with machine maintenance, monitoring gas well heads and checking equipment in the field. With shift work part of his family routine now, he has also learned to appreciate his wife's support. While most of the other blokes shop for their own food to take with them on shift, Scott has discovered all he has to do to prepare is make a list and his order ends

Scott Martyn checks on a gas field well. up neatly packed in his esky at the front door.

Family of 40 keeps Santos Bill busy A mechanic by trade, operator maintainer Bill Loof has worked with Santos for the past 12 months. Although he's based out of the Fairview plant, he spends most of his time on the road, checking and maintaining about 40 gas wells. “My patch covers quite a large area, there are a lot of miles to be driven,” he said.

Each well has plenty to test Bill's mechanical expertise — the valves, piping, engines and associated mechanical equipment must all be working at their peak. With the increasing activity around coal seam gas extraction to supply Santos' GLNG project, Bill's priority is to make sure each well is performing reliably.

Surat Basin NEWS Thursday 25 June 2009

As well as maintaining the wells, Bill is responsible for checking and reporting production data. Each well produces digital read-outs that show the amount of gas and water coming through the well. This data is then put into a report and sent to Santos' Brisbane and Adelaide offices to be analysed.

Surat Basin News

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HOT DATE FOR ROMA: The Santos Fire and Food Festival makes a triumphant return this September.

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Miles hits growing pains Developers in Miles have volunteered to reach into their own pockets to ensure development in the rapidly growing town takes place in an orderly fashion. PAGE 34

Wave of trash gets regional tip moving The Dalby Regional Council has set out to establish a regional mega-tip to deal with growing demand on local landfills.

Roma festival gets ready to light up again for 2009

The colour and vibrancy off Roma’s Santos Food and Fire Fest is back again this year.

Federal Opposition listens to Roma locals The Federal Opposition’s eye was fixed firmly on Roma on Friday, as deputy leader Julie Bishop embarked on a blinkand-you’ll-miss-it tour of the town. “This visit is an opportunity for me to hear first hand the issues and concerns of the people of Roma, which I will take back to Canberra, as we develop policy for the next election,” she said. One of the major ports-ofcall on the visit was a roundtable meeting with business owners, who are facing major staffing issues with the government’s tightening of restric-

tions on 457 visas. “Previously there were pathways for people on the 457 visa to become permanent residents, but the goal posts have shifted now and workers now have to go home when their Visa expires,” said one business owner. “Last week 46.7 per cent of our labour hours were filled by our Philippino workers, we just can’t replace them. “It was a worthwhile meeting and I’m sure Mrs Bishop will take our concerns back to Canberra, just not sure how much she can do from the opposition side of government.”

Member for Warrego Howard Hobbs, Opposition Deputy Leader Julie Bishop, Roma Regional mayor Robert Loughnan, RSL president Robert Menz and Member for Maranoa Bruce Scott during Mrs Bishop’s recent visit to Roma.

Surat Basin NEWS Thursday 25 June 2009

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TOWNS

Tips to be trashed as region moves towards mega-dump Surat Basin council starts work on state-of-theart $4.2 million Dalby waste transfer station ome waste may pose a problem to growing Surat Basin towns but not household trash. A state-of-the-art $4.2 million Dalby waste transfer station could become the model for other towns as the Dalby Regional Council moved towards a regional landfill site. The transfer station would be located outside of Dalby and built with a $3.75 million State Government grant awarded this month. It could be operational by late next year to collect, sort and compact rubbish. Cr George Moore, spokesman for environ-

ment, said the council planned to phase out local tips over the next 10 years and build a series of transfer stations. Rubbish would be redirected from those sites to a proposed regional tip, which remained in the early stages of investigation. Cr Moore said the council would also address an outdated and over full Dalby dump. “We think it (the Dalby dump) has between three or four years left so that should buy as enough time to work towards a new regional facility,” Cr Moore said. Other transfer stations should not be as expensive or elaborate as the Dalby

one, Cr Moore said. “This will be the Rolls Royce one in our region because it has the population to support it,” he said. “Other towns will have waste transfer stations suitable for the amount of rubbish they're producing.” Cr Moore said many dumps across the region were near capacity and under pressure from a growing population. He said a regional dump would better cater to future demand and also be more financially and environmentally manageable. “With the rapid expansion of the Surat Basin increased usage is experi-

Trashing tips... Dalby Regional Council spokesman for environment Cr George Moore wants to revolutionise the way the region deals with its trash. enced at all waste facilities and the construction of a new waste transfer station will assist in catering for this demand,” he said. “These projects will

also be a major economic stimulus to the region creating jobs during the construction and operational phases, and the money saved by council will be spent on other regional

waste management projects.” Construction on the Dalby waste transfer station could start before year's end and be completed by late 2010 or early 2011.

“We think it (the Dalby dump) has between three or four years left so that should buy as enough time to work towards a new regional facility.” — Spokesman for environment George Moore

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In March this year, the Toowoomba Regional Council approved the relocation of the Acland District War Memorial to Vince Gagen Park, Kulpi subject to further community consultation. The council has committed to relocate the war memorial in time for Remembrance Day services this year and in partnership with RSL Western District Branch and New Acland Coal is working with the community to facilitate the relocation. Mayor Peter Taylor said further community consultation had recently taken place with a local meeting at Vince Gagen Park to finalise the relocation details. “Council understands that the Acland War Memorial,

like all memorials around the country, has significant community value. We are in the final stages of the relocation,” Cr Taylor said. The relocation is also supported by RSL Western District Branch Inc. “While the RSL recognises that the Acland War Memorial has many memories for a number of people, the relocation of war memorials across Australia is quite common as some towns decline and development and infrastructure increases,” RSL Western District Branch president Max Foot OAM said. The proposed New Acland Coal Stage 3 expansion includes the township of Acland and has been

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Surat Basin NEWS Thursday 25 June 2009

declared a project of state significance. New Acland Coal general manager corporate development and government relations Dennis Brown-Kenyon said the company was aware that among the community items in Acland, the war memorial is one of significant local interest. “In partnership with council and the RSL, we’re contacting descendants of those people listed on the War Memorial to notify them of the relocation. “We recognise that engagement is key and that is why all stakeholders are working together to finalise the relocation details,” Mr BrownKenyon said.

Property developers get Miles on the right track Infrastructure in the rapidly growing town of Miles can no longer keep up with demand for new residential blocks. Rather than allow development to spiral out of control though, a group of property developers have agreed to fund infrastructure upgrades.

roperty developers have volunteered to reach into their own pockets to get a Surat Basin town moving for-

ward. They have decided to help pay for upgrades to Miles' water and sewerage plants to prevent the town's growth coming to a standstill. Predictions are Miles could grow 65 per cent in the next decade with the town's residential areas to branch out to the north-east. Major commercial development is expected to the south. However, the water treatment plant is at capacity with 650 existing connections and the Dalby Regional Council has applications for an additional 800 connections — a 120% increase. David Sweetapple, a local property developer, called a meeting between developers and the council to assist council in adopting a holistic approach to the problems of water, sewage and traffic. Each development in isolation had little impact on the town; however when considering a 120% increase in water and sewer connections, the combined effect was significant and had to planned properly. “If you put 800 new water connections on the system; no one would be able to

brush their teeth,” Mr Sweetapple said. He said something needed to be done before it was too late. “We're keen to put Miles on the map because the town has missed some opportunities in the past.” For the first time, property developers are offering to pay headworks charges to connect to water and sewerage. Mr Sweetapple said the charges were the norm in most urban centres but had not been adopted fully in Miles in a bid to encourage investment. He said times had changed for the town, which is at the heart of the Surat Basin resource boom. “Whether Xstrata and Cockatoo Coal go ahead or not, the Ryalls Road project is starting with a demand for 500 men,” Mr Sweetapple said. “And I'm confident the rail line from Wandoan to Banana will go ahead and that will be a catalyst for industry to come to town.” Mr Sweetapple said it would not be fair for existing ratepayers to pay for the multi-million-dollar upgrade, which could be aided by State Government subsidies. “Someone has to pay for it. “Developers are keen to co-operate with council to

Resource industries such as coal seam gas production is creating unprecedented growth and demand for land in Miles. make housing blocks available in Miles,” he said. “This is the normal and best process to ensure there is orderly development.” Cr Brown agreed it was time developers paid “realistic costs” with less of a need to convince private industry to invest in the region. “What's happened in the past is a lot of local authorities — and I'm certain the whole five and a half shires would have done it — subsidised a lot of development out of general rates,” he said. “Now that we're looking at this massive influx we're are looking at realistic costs.” The Dalby Regional Council has completed a needs analysts on Miles' treatment plants and was currently in the planning

stage. Cr Brown said there were similar infrastructure concerns in Chinchilla, but not to the extent of those in Miles, which are expected to cost millions to fix. “It's certainly going to cost millions,” he said. “Millions for water, millions for sewerage.” Cr Brown said he was concerned about an announcement in the 2009-10 State Budget that subsidies to councils would be slashed. He said the subsidies were factored into the cost of Miles' water and sewerage plant upgrades. The State Government has yet to release to what extent the Dalby Regional Council would be affected by the funding cut.

“Now that we're looking at this massive influx we're are looking at realistic costs.” — Dalby Regional mayor Ray Brown

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It’s about a fair go for everyone.

Ron Carr, Chinchilla landowner.

At Origin, we’ve learned a lot about energy development from local landowners like Ron Carr. Like how best to work together to minimise disturbance to cattle or crops and where to build infrastructure that suits landowners’ needs as well as our own. That’s the beauty of working together. Because while the Coal Seam Gas industry is set to bring new benefits to Queensland, it won’t come without a few challenges along the way – especially for the landowners whose properties lie above these reserves. That’s why at Origin, our relationships with our land partners like Ron are paramount. Because by working together, we can make sure everyone gets a fair go. Together we can make a difference.™

If you’ve got any questions, call us on 1800 526 369. bcm:ore 0142

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Surat Basin NEWS Thursday 25 June 2009