Surat basin news march 2016

Thursday, March 24, 2016

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INSIDE: LIFE IN THE BASIN - PEOPLE TELL THEIR STORIES OF THE GAS BOOM AND BUST

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SURAT BASIN NEWS

THE NEWSPAPER

EDITOR'S

NOTE HELLO and welcome to the March 2016 edition of the Surat Basin News.

Earlier this month I attended the Australia Pacific LNG milestone celebrations on Curtis Island.

You can read the story on Page 13, where there were congratulations given all round by politicians and company executives alike.

We now have three Liquefied Natural Gas plants operating and exporting from Curtis Island, and so the celebration doubled as an endpoint to the massive infrastructure expenditure we have seen over the last 10 or so years.

As these moments often do, it got us journalists at the Surat Basin News thinking: It’s been a wild ride, so why not talk to people about it - the whole decade-long journey from inception to production, warts and all.

Accordingly you will find within the first 12 or so pages of this month’s edition a series of portraits of Life in the Basin.

What we’ve tried to do is convey a selection of people’s experiences in various towns around the Basin over the decade since gas infrastructure construction began.

This is by no means a permanent feature of the Surat Basin News, but if we receive good feedback, we’ll endeavour to continue it in some form in future editions.

Please let us know what you think.

In the meantime, happy reading and happy travels.

Cheers, Matthew Newton

THE VISION

The Surat Basin News publishes every Surat Basin News will allow local month and will be delivered via the four businesses to network and dominant newspapers of the region: the communicate with everyone in the 1200 Chinchilla News, Western Star, Dalby sq km basin, providing unprecedented Herald and The Chronicle. It will reach access to new clients and markets. It the homes and offices of almost 50,000 will give a revealing insight into major people living, working and playing in the industry while lifting the veil on current Surat Basin, connecting the business and and proposed developments. It will be mining communities throughout the there for each and every announcement booming region. Surat Basin News is a shaping the region's future while necessity. profiling the colourful characters that It was born out of a passion for Australia'sdefine our communities. fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and The Surast Basin News is inserted into opportunities. The newspaper, the four dominant local newspapers for professionally designed and regionally the region: the Chinchilla News and topical, will be a must read for anyone Murilla Advertiser, Western Star Roma, associated with the exciting Surat Basin. Dalby Herald and The Chronicle

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EDITOR Matthew Newton

UPDATES Regular updates on www.suratbasin.com.au

PAGE DESIGN Beth Walker

SURAT BASIN NEWS 12 Mayne Street

THE

INDEX

Chinchilla Q4413 PO Box 138 Chinchilla QLD 4413

IN THE NEWS

Brett and Diane Griffin ..........................P7 PUBLISHED Kogan Creek update ..............................P4 Noelle Nevin ..........................................P10 The Surat Basin News is published by Push for inland rail ................................P5 Shannon McDermott ............................P11 Chinchilla Newspapers Pty Ltd Calls for industry support..................... P6 12 Mayne Street DOWN TO BUSINESS APLNG marks milestone ....................P13 T+W Earthmoving................................. P8 Chinchilla Q4413 Major projects which will transform the Supply Group Recruitment .................. P9 basin........................................................ P14 Base Camp .............................................P12 The Surat Basin News is printed by Easter in the Country .......................... P16 APN Print Warwick Solar plant canned ............................... P17 OPINION ..............................................................P20,21

LIFE IN THE BASIN

Bill McCutcheon...................................... P3 PLACES & FACES Sharon Colley ..........................................P4 TSBE Enterprise Evening Wandoan .P22 Senior Sergeant Barry Winter .............P5 APLNG celebrations ............................P23 Bruce Holmes.......................................... P6

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LIFE IN THE BASIN

BETTER OFF: Former Chinchilla Shire mayor Bill McCutcheon said the community has benefited from the gas industry over the past decade.

People profiles: how life in the Surat Basin has changed

Chinchilla’s journey with CSG Former shire mayor Bill McCutcheon on what the town has gained and lost during the CSG expansion

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The council had formerly dealt with a handful of new development applications for two-to-three hours a week, “but it grew to 20 to 30 new applications a month”.

“Perhaps it was overdone,” he said.

“We just about hit the perfect storm, with speculators around, predicting oil running out and gas taking its place.

“We soon found out oil had turned into a glut; you just can’t trust these advisers from overseas.”

Now the region is in a downturn, but Mr McCutcheon reckons more has been gained than lost, despite the over-speculation.

“We’re in transition now – Chinchilla is now a base for maintenance operations,” he said.

It has been mixed fortunes for local business.

“There are lots of new businesses in town, although some older businesses struggled,” Mr McCutcheon said.

“There have been big benefits in hospitality; there was no KFC or McDonald’s, or Coffee Club. They all came in a rush.

“And we now have two large supermarkets.

“But the motel industry has suffered.”

But he says the overall impact has been positive.

“Some quite large businesses are here now, concentrating on maintenance.”

Different resources companies chose different towns to centre their activities, which has spread the benefits, Mr McCutcheon said.

“That was the major rationale – every major town benefitted from it.

“Chinchilla is most associated with QGC, while Arrow are based in Dalby, Origin in Miles and Santos in Roma. “[Gas] was considered a sunrise industry at first – early contracts were seen as major – now they are tiny compared to now.”

Mr McCutcheon said because the state and federal governments also saw it as a sunrise industry, they underestimated the concerns.

“Council was always concerned about the industry impact on land and aquifers,” he said.

“Some say we didn’t do enough to get monitoring in place, but we put pressure on both levels of government, who thought they

were small concerns and who could self-monitor.

“Now we have much stricter monitoring, so we can pick up any failings as fast as possible – but it took a lot of pressure from us to get state and federal to take an interest.”

The resource companies were at first a little slow in acknowledging the community, Mr McCutcheon said.

“The companies worked in trying to meet the community’s expectations, but they didn’t feel obliged to do more than what was asked at first,” he said.

“But since then they have been involved in community housing, and funding for sporting bodies.

“So the community has benefited as well as the wages coming in.

“Some people will disagree with what has happened, as they are against the mining companies – they are entitled to their opinions.

“But we now have a much stronger police presence, and more community benefits than before.”

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HE resources boom in the Surat Basin began in 2007, but Chinchilla got an earlier taste of things to come.

“It started earlier with the new Kogan Creek power station in 2004,” Chinchilla stalwart Bill McCutcheon said.

“That got the ball rolling, and they built the first thousand-man camp, which is still open as it transited across to gas workers.

“That was the first big industry to move here.”

Mr McCutcheon, now retired, had been in local government since 1985, serving with the former Chinchilla Council as councillor then mayor to 2008, and a further term as a Western Downs councillor.

The local economy formerly depended for 100 years or so on agriculture and timber, including grain, cotton – and of course the famous watermelons.

Then came the big resources players.

“There was pressure on council resources,” Mr McCutcheon said.

“The construction phase took a while to wind up; when gas came it really boomed.”

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LIFE IN THE BASIN

Local firms in power station overhaul

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FUTURE PLANS: Miles motelier Sharon Colley said council needed to focus on promoting tourism in the wake of the boom.

A plan for the future: Where do we go to from here?

Regional branding key to attracting tourists says motelier Sharon Colley

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UYING the Starline Motor Inn in the town of Miles back in 2003 seemed a pretty good idea to Brisbane-based Sharon and Anthony Colley.

And leading into the resources boom in 2007, the idea seemed even better.

“We moved to Miles from the northern suburbs of Brisbane,” Sharon said.

“It was a big change, but we wanted to bring our kids up in the country.

“It was hard, with both of us having to work, but we wanted a business where we could still be parents too.”

The family was well-received into the community, but more than a few locals questioned their business wisdom.

“Everyone said ‘you bought what?’ when they heard,” Sharon said.

They survived the first 12 months. “It was a struggle; we had 22 rooms on the main road next to a roadhouse, which was both a help and a hindrance.

“But everyone was welcoming, and it was good to get involved in the community.”

The Colleys enjoyed a reasonable return on their investment – then the boom hit in 2007.

“We should have been averaging 44% occupancy [and were doing a little better than that] then come 2007, we really noticed bookings increasing, up to 75%,” Sharon said.

“Life was perfect – we didn’t think it could get any better than that.”

They invested the extra income in the motel – and the community – by renovating, which was a two-year process.

“We employed local people to do the work, to keep the money in the community.

“The boom was still peaking for us through

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.

We employed local people to do the work, to keep the money in the community.

Sharon Colley 2012 and 2013. “But in 2014, the phone stopped ringing.”

People and bookings started drying up as the boom slowed, and the Colleys had to make some tough decisions, Sharon said.

“We were caught completely unawares.

“Because of our longevity and reasonable tariffs we managed to stay afloat but had to make some tough decisions.”

That included laying off permanent staff and hiring juniors.

“A lot of [other] people were also caught unawares, but you just have to have a positive attitude.”

Sharon said it was now up to the community to pull together to see the tougher times through.

“People need to put their hands up and volunteer.

“We’ve got new tennis courts, a new bowling green, irrigation on the golf course, all brought by the companies, but we as a town are struggling.”

Meanwhile the motel is getting about 48% occupancy, so managing.

“We’re good at what we do, and this motel is iconic; it’s been around for 49 years.

“Every local has worked here at some time or other.

“It was very hard when we had to let

permanent people go.

“And I feel sorry for other motel operators, many of whom arrived in the eye of the boom, and paid high prices.

“But you have to look after your own.”

She said the worker camps changed the dynamic for accommodation providers in the region. “I said at the time ‘the camps are going to kill us’.

“Now the gas work has dried up, and we have the drought. It’s a perfect storm.”

More tourism is one answer, Sharon reckons.

“Most of our identity was lost under council amalgamation.

“We’re not the Southern Downs, or the Granite Belt, or the Peanut Country up by Kingaroy; we need to work to develop our own identity.

“The council needs to do more on this.

“Compare Surat Basin to Broken Hill – the mines closed there and art and culture kept it going. We have such beautiful country and gardens.

“We need to promote the ‘Great Western Way’. We need to brand the region.”

Notwithstanding the issues facing them, the town of Miles and the surrounding region, the Colleys are staying put.

“There will never be a boom again, but we will see industrious people do things,” Sharon said. “[But] it will take two years for people to get over the shell-shock.”

The motel will pay its way meantime, and the Colleys are coping, and a little more trade at this time will see them through.

“We just need that little bit more [to make it through].”

Surat Basin NEWS Thursday 24 March 2016

EVERAL Dalby and Chinchilla firms are providing technical support for the upcoming major overhaul at CS Energy’s Kogan Creek Power Station.

With just one month until the overhaul starts on April 8, major contractors Mitsubishi Hitachi Power Systems, Siemens and Australian Laboratory Services have appointed their workforces for the overhaul, which will make up the bulk of the 400 extra contractors on site.

A number of Kogan Creek Power Station’s regular suppliers are also assisting with the overhaul, including Daybreak Equipment at Dalby and Chinchilla’s Regional Instrumentation and Electrical Services, Chinchilla Fluid Power and Healy Contracting.

Daybreak Equipment proprietor Ross Milne said his company provided a range of mechanical engineering, drafting, design, fabrication and machining services to Kogan Creek Power Station.

“We’ve worked for CS Energy for a number of years,” Mr Milne said.

“The overhauls are the busiest time. For this one we’ve been preparing for the last three months.

“We do onsite inspections at the power station and our fabrication and machining is carried out here at our workshop just outside Dalby.

At the moment I have 12 of my employees working on overhaul preparations.” Kogan Creek Power Station General Manager Phil Matha said the 400 contractors that have been appointed to work on the overhaul will work alongside the power station’s permanent workforce of 72 people, seeing the power station’s workforce swell to 500 during the period.

CS Energy’s Kogan Creek Power Station.

LIFE IN THE BASIN

Policing in the Surat Basin Senior Sergeant Barry Winter looks back at nine years of policing in Roma and Chinchilla

TSBE CEO Dr Ben Lyons.

Inland rail necessary

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REFLECTIONS: Senior Sergeant Barry Winter and Constable Natalie Mazza on the job in Roma.

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T MIGHT be only natural to think that, when a region’s population virtually doubles during an employment free-for-all, the police would have their hands full.

But as far as Dalby-born Senior Sergeant Barry Winter is concerned, the Surat Basin handled its resources boom with grace and distinction – and no crime spike to speak of.

Snr Sgt Winter saw the whole episode, having worked the region he loves for the last nine years, including his stint at Chinchilla in the early stages, and now as officer-in-charge at Roma station.

“It began in Chinchilla when the gas fields were being prepared and the pipelines being laid,” he said.

“There was a lot of itinerant workers in camps, a lot of new housing going up.

“But as far as policing went, the biggest effect for us was the traffic.

“There were many wide loads coming through, which required escorts.”

There was “bumper-to-bumper” queues quite frequently, so traffic management was paramount.

There was also some opposition to the industry’s development.

“In the gas fields themselves, we had people against the activity.

“Police do not take sides, but we had to be there to keep the peace.

“We developed a pretty good working relationship with both sides though, as

.

There was also some opposition to the industry’s development Senior Sergeant Barry Winter things took their natural course.”

Chinchilla itself enjoyed high employment levels as a result.

“There was no significant change in crime levels, and we didn’t have a lot of issues socially.

“The odd sub-contractor might have played up a bit, but the town was well-prepared, the wages were good – really good – and the companies would not tolerate bad behaviour.”

Later, in Roma, it was much the same.

“There were more fly-in fly-out people there, with the airport; there was up to 300,000 people came through in one year,” Snr Sgt Winter said.

“The place was humming.

“In the initial stages there were a few more disturbances – but then the workers went out to the camps. After that it was all well-controlled; they are only allowed light beer and a restricted number of drinks.”

Again, traffic was the primary policing issue.

“There was a lot more people around, so there was the potential for issues, but never anything that could be specifically applied to the gas companies.”

Then came the downturn.

“Obviously there are a lot more empty houses, uninhabited properties,” he said.

“We are doing a project with real estate agencies to provide information for security for these houses.”

Property prices are plummeting, so there have been some who have bought when they were high and are paying a penalty now, Snr Sgt Winter said.

“But there has certainly not been any crime spike [as a result].

“The town organises its own events, it’s vibrant – but a lot quieter.”

Snr Sgt Winter said there was some drug detection issues happening, involving drugs like methamphetamines or ice, but that was happening in many country towns.

As the nine-year experience changed the region – has it been good for the people, and will it now go back?

“There has been big changes to the towns,” he said.

“The experience has had its good points – it has supported a lot of things.

“Those work camps – I have been very pleased with them – they have been well-controlled “It has certainly brought the region into the spotlight – and it has given our kids jobs.

“My own son is an electrician and he has got a lot of employment out of it.

“Some say it will go back to where it was, but I don’t think so.”

OOWOOMBA and Surat Basin Enterprise (TSBE) chief executive officer Dr Ben Lyons has highlighted the importance of the nationally significant Melbourne to Brisbane Inland Rail Project if Australia’s agriculture and agribusiness sector is to fully capitalise on growing global export opportunities.

Dr Lyons said that an inland rail solution was particularly essential for the Toowoomba and wider Darling Downs region to maintain international competitiveness and ensure products get to market more efficiently.

“It’s a great time to be in this region. We are the number one agriculture region in Australia, and with our very own internationally capable airport preparing to welcome regular air freight services later this year, Toowoomba is an engine room of growth for Australian agricultural exports,” Dr Lyons said.

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LIFE IN THE BASIN

Gas needs government support

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OPTIMISTIC: Bruce Holmes saw good opportunities in the Surat Basin when he moved here in 2011.

People profiles: how life in the Surat Basin has changed

Trading Cairns for country Real estate agent Bruce Holmes’ reflects on five years in the industry

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T’S a long way from Cairns to the Surat Basin.

But there was enough intrigue about the resources boom here to attract real estate specialist Bruce Holmes to the region in 2011.

He now holds the position of commercial and industrial sales manager at Surat Basin Real Estate in Chinchilla.

“We came from Cairns; this region looked like a good opportunity,” he said.

“The global financial crisis was still affecting everywhere but this area was looking to do well – and it did.”

Bruce arrived with partner Robyn “just after the floods”.

“Business was starting to explode here; things went nuts for a while,” he said.

“A lot of people were turning up for work, there was no space available for businesses to move into.

“There were no sheds, no offices, no retail

spots – so everyone was in competition for what was on the market.”

Bruce said rents went high “because there was no vacancies, commercial, industrial or residential”.

“Our industry did very nicely for a while [as a result] – we were happy making money.”

But then the “tap turned off” in mid-to-late 2014. “We didn’t know about it for a couple of months – there were peaks and troughs happening – but once we hit a trough for four months that was it.”

Things have been fairly sluggish since, “but I’d like to think we are on a slight arc upwards”.

“Enquiries are really good from all corners – but people are hesitant about committing – they are waiting for contracts from the major players.

“The signs are things are going to improve – but like before, you need to see two-to-three

months of it.”

Bruce is hoping for slow progression, not a rush.

“Whenever you hear the word ‘boom’ you know the next word you hear will be ‘bust’,” he quipped.

“So I am hoping for slow progression, which is sustainable.

They are now well settled into the country life, with Robyn also working in council.

“Once it turned out it would be a good place to live we were committed,” Bruce said.

“The people are friendly and it’s a good lifestyle.”

He said it was “an eye-opener” living in the country.

“I like the climate – some cold, some hot.

Cairns was always hot and wet.

“We have no plans to head back – there would have to be a good reason to.

“It was a big move – but a good move.”

OVERNMENTS in eastern Australia must pull out all stops to encourage the investment needed to address predicted gas shortages as highlighted by the Australian Energy Market Operator.

The latest Gas Statement of Opportunity (GSOO) warns that developed gas reserves in eastern and south-eastern Australia can only meet forecast demand until 2019.

“The information released by AEMO is a sobering reminder that the east coast needs rapid development of new gas reserves to guarantee supply,” APPEA Chief Executive Dr Malcolm Roberts said.

“We have long argued that if we wish to achieve a more competitive market, put downward pressure on prices and ensure stable, adequate supply, we must bring more gas to market.”

Dr Roberts said the commercial climate for exploration and development in Australia was already extremely difficult.

Fewer onshore exploration wells were drilled in 2015 than at any other time in the last 20 years. “In eastern Australia, the number of exploration wells drilled almost halved from 2014 to 2015 – from 70 wells to just 40,” he said.

“Sound policies are needed to provide greater certainty and investor confidence to support exploration.”

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LIFE IN THE BASIN

Brett and Diane Griffin, on their property 'Sydeva', 54km north of Yuleba.

People profiles: how life in the Surat Basin has changed

F

CSG helping ease drought burden

OR the first time in his life, Yuleba farmer Brett Griffin managed to handle a drought with relative ease.

It was last year, but thanks to financial compensation for gas wells on the Griffins’ 16,000-acre cattle property 54km further north of the township, the drought didn’t impact as it once would have.

It was 2008 when Origin knocked on the Griffins’ door – and changed their lives.

“When they first came, they wanted to do one test well,” Diane Griffin said.

“We had no idea there was gas here; we had 10 water bores but we had never seen gas rising.”

But it was discovered the opposite was true.

“We were on a very big field; both us and our neighbours,” she said.

The Griffin family had been on that property for nearly 100 years – the neighbours even longer at 155 years – but they were able to work together to ensure a good compromise with Origin.

“We didn’t let them railroad us, and with two properties working together we had more bargaining power,” Diane said.

“CSG companies usually want to buy the properties that are over the good fields but we were never going to sell.

“But we only own the top six inches of the land – you can’t stop them anyway.”

The first two years involved a lot of “haggling” and some difficulties but things improved after a time – and the Griffins are seeing some of the benefits.

“We sent some cattle away for agistment in the early stages,” Diane said, but that’s no longer necessary – in fact farming activities are back as they once were.

“Our [gas] development is nearly finished now; the first two years were difficult but we are happy with Origin now,” she said.

“Our kids wanted to get into the industry too; they were at the right age to use the opportunity.

“Our boys Harley and Hamish started their

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own contracting business – they had one machine at the beginning and now they have five and employ other people.

“Over the years they developed good roads.

There was a lot of give-and-take. It takes a long time.”

The Griffins were, like so many in the region, worried about Artesian Basin water quality too. “But Origin showed us it is cleaning the water to a high level and is able to put 80% back into the water table around the Combabula field and Reedy Creek gas facility.

“The state government gave us free self-monitoring readers for the bores – we’ve not noticed any change on monthly readings,” Diane said.

She said there have been winners and losers in the nine years since the boom began.

“The towns were busy – now they’re hurting and some businesses have gone to the wall.

“It’s always a cycle in these industries … but I think it will pick up again.

“They are starting work on a property next door – and I’ve heard there are a lot more wells still to come.

QGC is ramping up west of Wandoan – the town’s packed out.

But Mr Griffin reckoned the industry could be even more helpful to the towns if they didn’t place their camps so far out.

Closer to home, Diane said thanks to their compensation arrangements, supplementary drought feeding was not the enormous financial burden that it once was.

“Some got one-off payments, some are ongoing – there are all different arrangements,” she said of financial arrangements between Origin and landowners.

As for the how the community has changed, Diane is pragmatic.

“The community has changed. We now live with the gas industry.

“It’s not everyone’s cup of tea; not everyone’s happy – [but] it’s part of the culture now.”

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DOWN TO BUSINESS

BUSINESS PROFILE

Business profile: T & W Earthmoving

Brothers moving on up 15 years in the earthmoving industry sees Condamine-based family business grow exponentially

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OCAL brothers Tim and Wayne Collie established their earthmoving business in 2000 with a single D6C open can bulldozer.

Since then the Surat Basin boys have gone from strength to strength, embracing the opportunities of the gas industry.

They received their first job from George Ladbrook of Roma, which consisted of stick raking, tree clearing and dam building; netting them a massive $10,000 to keep the family business going.

But it wasn’t always full steam ahead, with many breakdowns to hold them up.

They sought knowledge from their father, Lionel Collie, and were taught the basics of heavy vehicle mechanics at an early age.

This gave them the skills of prompt mechanical problem solving in the field.

While 90% of their work was rural property based they saw an opportunity to expand their business by entering into the coal seam gas industry in the mid 2000’s.

Tim and Wayne were able to maintain both rural and coal seam gas work during this period, which grew T & W Earthmoving to where it is today.

“Our Company expanded its scope of works to include the development of well lease pads, access roads, erosion sediment control, site rehabilitations and has become a well-respected competitive contractor in the

Coal Seam Gas Industry (Surat Basin),” Tim and Wayne said.

“We deliver a high standard of civil

infrastructure works building our reputation on compliance, quality, safety and environmental awareness with flexible

solutions that deliver project outcomes.”

Over the past 15 years, T & W Earthmoving has gone from a two man business to an experienced team of over 137 staff at the peak of operations.

The main base and head office for T & W Earthmoving is situated in Condamine.

This comprises of a workshop, equipped with capable and experienced workshop mechanical staff.

The company also has a small office in Roma; workshop and laydown yard in Surat, and a laydown yard in Wallumbilla.

Tim said he and his brother pride themselves on their work.

“We are one of the region’s leaders in earthmoving and look forward to continued long term relationships with our clients including local councils, local landowners, Origin, QGC and international engineering consultancies,” Tim and Wayne said.

“We are proud to be able to engage and support our local community through employment opportunities, our local procurement policy and work hand in hand with other local industry supplies wherever possible.

“It is our aim to continue to provide a valued service within Surat Basin area and in turn be able to support local entities and provide sponsorship to local sporting clubs and GO FOR GROWTH: Tim and Wayne Collie at T&W Earthmoving have diversified their business to keep up with associations.” demand from the CSG industry.

We Specialise in the Following: Servicing the Surat Basin Safety & Environmental Compliant Specialising in the Management and Completion of projects in Oil and Gas, Road Maintenance & General Earthworks

Current Machinery Available:

Communication is the Essence of production

P: (07) 4627 7115 | F: (07) 4627 7018 14 Wambo St, Condamine, QLD 4416 | www.twearthmoving.com.au PAGE 8

Surat Basin NEWS Thursday 24 March 2016

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DOWN TO BUSINESS

BUSINESS PROFILE

Labour hire with bold ambition Locally owned labour hire company expands into the Surat Basin

S

upply Group Recruitment is an Australian owned and operated business specialising in the placement of warehousing, supply chain and logistics personnel for coverage in all sectors including but not limited to mining, construction, oil & gas and industrial throughout Australia and overseas.

With over 20 years industry experience in various facets of the supply chain within the resources sector throughout Australia and overseas, and 12 years in the recruitment and labour hire industry as an owner-operator, the company’s managing director Terry Ingram ensures any first-hand knowledge of job requirements is shared with his team.

Raised in Taroom, a small township located on the northern end of the Surat Basin, Mr Ingram is familiar with the Surat Basin and firmly believes in working with the local communities to assist them in growing their businesses and to help the local workforce gain employment in their own environment.

Mr Ingram said he didn’t want to be known as “just another Recruitment agency”.

“We have no ambitions of becoming the biggest company in the recruitment and labour hire industry, however our aim is to be the best,” he said.

“Our mission is simple; be the very best in everything we do including personalized customer service to all clientele and labour hire personnel, excellent communication and competitive pricing..

“Our passion for this industry drives us to be

successful and becoming a market leader and a preferred supplier to your company for all your staffing requirements.

“Expanding to Surat Basin through collaborations with TSBE, we are starting to facilitate our services to the Surat Basin regional area and its surrounds.”

SERVICES ON OFFER: ■ Labour hire for short or long term contracts ■ Permanent placements ■ Payroll ■ Special projects ■ Consultancy ■ Services provided for Industrial, mining, construction, oil and gas, commercial, government and overseas sectors ■ Supply personnel provided include Warehouse officers and storepersons, purchasing officers and analysts, contracts personnel, inventory controllers, cataloguers, materials expeditors, materials controllers and operations supervisors and management.

■ We also have the ability to assist in the placement of white collar, blue collar, construction, civil, resources, OH&S and hospitality personnel, on request.

GOALS: Supply Group Recruitment doesn't want to be the biggest company in the Surat Basin, it aims to be the best.

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Labour Hire for short or long term Contracts | Permanent Placements | Payroll | Special Projects | Consultancy Supply Personnel Provided (but not limited to) include: • Warehouse Officers • Purchasing Officers • Contracts Personnel • Inventory Controllers • Cataloguers • Materials Expeditors • Materials Controllers • Operations Supervisors & Management

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PAGE 9

LIFE IN THE BASIN

Agriculture softens mining bust

CHANGES: Occupational Therapist Noelle Nevin has seen both good and bad come of the gas boom in the Surat Basin over the last decade.

People profiles: how life in the Surat Basin has changed

Changing demographics bring new challenges Occupational therapist Noelle Nevin on social pressure and counselling

M

AJOR and rapid change in a region can have its downsides, particularly for local people.

But according to Chinchilla occupational therapist and mental health counsellor Noelle Nevin, the Surat region has not been hit hard by it.

That’s not to say everything’s perfect, but if anything, it’s new arrivals to the region who are having greater social issues rather than locals, she said.

While Ms Nevin operates a private practice in town she also assists companies with work and safety issues as well as mental health counselling, adding part-time for Centacare to her repertoire.

Growing up in Brisbane, Ms Nevin frequently visited her grandmother in Miles and grew to

PAGE 10

love the area. She has now been a Chinchilla resident for 19 years, so she has seen the changes since the resources explosion began in 2007.

“I saw change; I saw more families in town, and more who could afford private services such as mine,” she said.

“I also worked with the new companies, with injured workers and rehabilitation.”

Local people coped with the big changes well.

“People are generally happy with things – people are adaptable,” she said.

“There has been a lot of positives.

“The place is slightly more cosmopolitan.”

As for the pressure on house prices that inevitably follow an employment boom, Ms Nevin said she did not see any evidence of families in difficulty.

“Older well-established people had fewer

THE QUEENSLAND economy is still feeling the after-effects of the mining sector downturn, but its diverse agricultural industries offer the opportunity to help fill this economic gap according to John Swete Kelly, Principal - Business Consulting at Crowe Horwath.

Mr Swete Kelly spoke at a CBA/Crowe Horwath agricultural economic investor seminar in Dalby recently.

Keynote speaker CommSec Chief Economist Craig James said while Queensland ranked sixth on CommSec's State of the States report, the bright spots were dwelling starts, and unemployment, which had fallen to two-year lows in trend terms.

Mr Swete Kelly highlighted the Queensland economy could be entering a new growth phase as agriculture was likely to generate economic activity of $1.2 trillion between now and 2030. "For Queensland, with its diverse range of agri-industries, this represents an enormous opportunity.

"But the industry has to seize the day. As the pace of innovation globally continues to increase, this booming sector has to grab the vast growth opportunities before it and leverage technology to remain at the cutting edge.”

CBA and Crowe Horwath, part of Findex, have partnered with the National Farmers' Federation to assist farmers prosper as the sector moves into a new era of intense global competition where innovation will play a critical role.

issues – they owned their homes.”

But the last 12-18 months have begun to show signs of social pressure.

“In the last 18 months there has been a change of demographics,” Ms Nevin said.

“There’s a new population coming to town – perhaps they’re attracted by cheaper rents. “[But] there are lots with complex social problems.” It also marks a change in Ms Nevin’s own practice as the number of families with higher disposable income has dwindled. “I’ve seen more of these cases in last 12 months with issues of abuse and poor financial management,” she said “It can weigh heavily dealing with such issues.”

Surat Basin NEWS Thursday 24 March 2016

CONSTANT: Farming will soften the effects of the mining downturn in Queensland.

LIFE IN THE BASIN

People profiles: how life in the Surat Basin has changed

W

Ebbs and flows of the industry

HEN Shannon McDermott started up his Enzed hydraulic equipment supplies franchise in Chinchilla in late 2010, he anticipated a flood of enquiries, given the resources boom.

Instead, he just got the flood.

Born in Brisbane, Mr McDermott spent his early years in remote South Australian towns like Oodnadatta, his father working on the railways, followed by stints in Victoria and WA, then raising a young family in a small town close to Toowoomba.

“I’d been planning to move to the region for some time,” he said.

“I saw great potential here, I saw it as a good place to commence a business – and the country lifestyle always appealed to me.

“So I started the Enzed franchise. They were keen to get me on board; I had been 10 years as an operations manager for the opposition.”

He opened the doors, just in time for the floods to arrive.

“We weren’t able to do our first job for two months,” Mr McDermott said.

“It was a difficult start – but we got through.”

The next two years was full-on during the boom, but in November 2012 the coal sector took a downturn.

“Peabody Coal closed its doors, along with another mining client,” he said.

“We lost 70% of our business overnight.

“It has ebbed and flowed since then; CSG has been flat-out, but the last 12 months we have been fighting tooth-and-nail to continue.”

But Mr McDermott sees the future as “quite promising”.

“We are doing more maintenance work rather than construction so the longer term is good. “[But] it’s a tough year this year.”

Based in Chinchilla, life is good.

“It’s just my wife and I – the kids are grown up and living their own lives – Tanya was a little apprehensive about the move, but we’re both happy now.

“She runs a hairdressing salon from home and is pretty busy.”

As far as the town is concerned, Mr McDermott has seen the positives and negatives of a boom experience.

LOOKING AHEAD: Shannon McDermott said the future of the Surat Basin is promising.

“There has been a lot of changes,” he said.

“There was a boom in the housing market, but people see the writing on the wall now.

“Investment-type property [speculation] sent prices sky-high; now it’s gone the other way.”

He said the large profits made during the boom were eroded by a number of factors, not least the cost for staff to pay the inflated price of living.

“The cost of doing business was high, and it was difficult for the staff to afford it – just to cope and help them ate into our profits “A lot of the agricultural sector was doing it tough, too.

“Agriculture needs labour, and mining companies paid much more in wages.”

The real estate market is quite cheap now, he said, “and there’s people coming in from other walks of life, but the crime rate is on

the increase”.

He spoke to locals who had been there before the boom to gauge their responses.

“It was a mixed bag – some embraced the changes, some liked their quiet little town the way it was.

“It won’t go back now; there are too many businesses where owners have invested their life savings, keep them moving forward.”

“But there’s one exciting thing: the agriculture sector has picked up.

“Beef prices are good, diesel costs are down – it’s not so hard [for them] to attract people to work on the farm.”

So will the McDermotts stay now the boom is over?

“The resources boom brought me here – I’ll admit that,” he said.

“Coal may have taken a backward step – but

the CSG industry and agriculture are there.

“There is diversity so I still see a long term future.” The company started with one truck and now has three mobile services – and has moved to bigger premises “We get involved with sponsorships around the town, support the community.

“I see a good long-term prospect – I can adjust for business in more normal conditions.

“It was fantastic to go through the boom – but it had its own challenges.

We’re now adjusting to the other side.

“The challenges have made me a better businessman – I am more analytical now.

“There’s more time to do things more efficiently.

“And I can have a life now – that’s always a bonus.”

5798825ah

Surat Basin NEWS Thursday 24 March 2016

PAGE 11

DOWN TO BUSINESS

BUSINESS PROFILE

Business profile: Base Camp

Creating a home away from home Base Camp owner Rowan Woodforth believes the key to a productive workforce is to keep them happy

T

HE goal for Base Camp owner Rohan Woodforth was always to create a home away from home for the region’s workforce.

The central philosophy underpinning Mr Woodforth’s vision is that a happy workforce is a productive workforce.

At Base Camp, the cars are parked outside the village, and large ‘doors’ welcome people back to camp. “That’s them coming home,” Mr Woodforth said.

“If you asked any person here, they would say it’s the gardens, it’s the amenities, the opportunity to socialise, and that’s what makes it special.

“Murphy Pipe and Civil were here for three months last year, they booked out the whole camp and their production rate went up.

“They had the happiest workforce staying here and the productivity levels on site had never been as high.”

Mr Woodforth said the most important aspect of running a popular camp was creating a culture of respect amongst staff.

He said the 314 room accommodation village, which was built three years ago, set a new standard of accommodation for the Mining, Energy, Construction and Agriculture industries in the Surat Basin region.

“Everyone’s a paying customer. I don’t accept anything less than 100%. I’ll taste the food

HOME IS WHERE THE HEART IS: The crew at Base Camp, Chinchilla. every night,” he said.

“It’s extremely important that workers feel at home. They live half their life here.

“Regardless of what happens during the day, at least they can come back, feel relaxed, walk around and do what they like in terms

of activities. They don’t have to stay in their rooms. “This place is special that’s what I set out to create.”

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IN THE NEWS

APLNG milestone celebrations

LNG shipments celebrated

Pollies, executives, landholders toast project’s success

T

HE story of the coal seam gas industry in Queensland is one of extraordinary innovation, Australia Pacific LNG chairman Grant King said.

Speaking at a 200-strong celebration, APLNG celebrated its first shipments of liquid natural gas to overseas customers earlier this month.

He said the idea of CSG first came about in response to Queensland’s dwindling conventional gas supplies in the 1990s.

The first CSG well – called Comet Ridge 1 – was drilled in 1993, around the area now known as Spring Gully, north of Roma.

“That well did nothing other than encourage us to drill more wells,” Mr King said.

With the bi-partisan support from the Queensland and federal governments, the CSG industry went from its first well in 1993 to its first CSG production in 1997, Mr King said.

That first production facility produced 2.5 petajoules of gas a year, the entire annual production of which would keep Curtis Island’s three LNG plants running from breakfast until lunchtime.

“That’s the scale on which this industry

.

The $60 billion CSG-LNG industry is now generating royalties that will ultimately benefit all Queenslanders

State Minister for State Development Minister for Natural Resources and Mines Dr Anthony Lynham, Premier Annastacia Palaszczuk and Origin Energy managing director Grant King.

Premier Annastacia Palaszczuk operates today,” he said.

Premier Annastacia Palaszczuk welcomed APLNG’s success, with six cargoes shipped from the facility since its first shipment on January 9.

“To establish an export industry of this scale in such a short timeframe is a credit to investors, partnering companies, construction workers, engineers, government officials and importantly,the communities and landholders upstream,” she said.

“The $60 billion CSG-LNG industry is now generating royalties that will ultimately benefit all Queenslanders.”

Ms Palaszczuk said the CSG industry’s direct contribution to Queensland’s economy last financial year was $10.6 billion or 3% of Queensland’s GDP.

INFRASTRUCTURE: Media and executives tour APLNG's LNG plant on Curtis Island earlier this month.

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PAGE 13

IN THE NEWS

Looking ahead at what’s to come for the Surat Basin

Projects on the horizon Here are the four big ticket items which when completed will transform the Surat Basin into an industry megahub

B

IG business certainly has a home here on the Darling Downs, and in one area in particular.

The western corridor is proving a boon for development with the Toowoomba Enterprise Hub gradually taking shape.

Over a massive 2000 hectare space, the hub is a hot wicket for some of the state's most ambitious projects the benefits from which will flood the Surat Basin.

Either love or despise them, the developments are providing a confluence of industrial, agricultural and logistical avenues that will bolster the region for decades to come.

Here are four big ticket projects transforming the Surat Basin.

■ INTERLINK SQ: It’s big, bold and when it comes to fruition will provide the perfect convergence of road, rail and air.

The 200 hectare InterlinkSQ estate carries a $235 million price tag and the ambitious goal to open up the western rail corridor and link the region's freight to the Melbourne and Brisbane ports.

Spearheaded by Toowoomba businessman John Dornbusch, the InterlinkSQ project has the agricultural and logistic sectors firmly in its sights and the first phase of the lofty

plans have been lodged with the council.

■ CHARLTON MEAT PROCESSING PLANT: In what has become one of the most contentious projects planned for Toowoomba's western corridor, the future of Charlton's proposed meat processing plant remains unclear.

Developer FKG Group lodged plans for an $80 million abattoir in the Witmack Industrial Park, 10km west of the Garden City, with the council last year.

A vocal group of residents rallied against the project citing noise and odour pollution as well as criticising a lack of public consultation.

FKG Group has rejected those claims and instead reaffirmed the company had gone through the appropriate channels to get approval, and the new facility would boost the Darling Downs.

Protestors also criticised the plans for a nearby workers accommodation camp but developers refuted any suggestion it would be used to house overseas plant employees.

■ SECOND RANGE CROSSING: The works Toowoomba hardly believed would happen have finally started. Excavation works on the Second Range Crossing are progressing, fences installed and geo-technical site testing

RAMPING UP: The Toowoomba Second Range Crossing is under construction. being carried out on the $1.6 billion landmark project. The long-awaited 41km project is being developed by international consortium Nexus and its design, which includes open cuttings rather than tunnels, has been recognised as one of the best major construction projects in the world. Workers are on site at present and employment is expected to ramp up next year during the bulk and intensive building period.

You can expect to drive on the bypass in 2018.

■ WELLCAMP AIRPORT: Other projects in

the city's western corridor have either taken shape or will shortly, the loftiest goal of them all is still a fair way off. But it's no secret that the ultimate objective of the nation's newest airport is international flights - either passenger or freight.

And with two new routes to Cairns and Melbourne launched this week on the back of the popular Toowoomba-Sydney path and a highly successful trial flight to Asia, the Brisbane West Wellcamp Airport's aspirations are certainly within reach.

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PAGE 15

IN THE NEWS

Easter in the Country

O

All roads lead to Roma

NE of Australia’s favourite country music stars will be the headline show at this year’s Easter in the Country.

Multi-award winning singer-songwriter James Blundell is expected to attract thousands with his own Australian brand of country music.

The event organisers have worked tirelessly with sponsors ORIGIN energy to bring the man and his incredible live show to town.

“It is one of the biggest acts ever known to the west and brings international status to the event, thanks to sponsors ORIGIN Energy,” Easter in the Country president Jenny Flynn said.

“He’s as local enough for us to claim him.”

Acknowledged by many as the act single-handedly responsible for turning a younger demographic of Australians onto country music, Blundell was the first young Australian country artist to create an impact on the mainstream pop charts and for many years was the highest selling country artist in the nation.

He was also the first Australian country act to sign a major label recording deal in Nashville paving the way for the likes of Keith Urban, Kasey Chambers and others.

Having penned hits for Lee Kernaghan, Slim Dusty and Jimmy Little, Blundell has been the recipient of nine Country Music Association of Australia Golden Guitar Awards, double platinum, platinum and gold sales awards and is a five-time ARIA Award

nominee with one win to his name.

Ms Flynn said when discussions about the act began with ORIGN, the answer soon became clear.

“The committee and ORIGIN wanted a local act that understands the region and would be

MUSIC MAN: James Blundell is sure to draw a crowd at Easter in the Country.

able to capture the spirit of community since that is what drives events such as these,” she said.

“He sings about getting his education down on the farm where you can learn life’s important lessons. and he brings plenty of local knowledge coming from down the road in Stanthorpe and starting out as a farmer.

“He’s a country fellow, he’s returned to live in the Warwick area and he’s keen to do join with us and welcome home that special flavour that is Easter in The Country.”

The Origin’s Music Festival directly follows on from the street parade at 10am on Saturday 26 March and will be the event’s Premier Act at this years’ free open-air concert.

Ms Flynn says Roma is now bracing for a huge turn out this Easter.

“James draws crowds from interstate and across the world. As organisers we must thank our sponsors Origin Energy,” she said.

“For them to assist us in ensuring that such huge talent is able to join with us for 2016 is both welcomed and embraced by locals and our thousands of Easter in The Country visitors from across Australia.”

Something special for everyone out west this Easter standouts from the past few years’ floats.

But the true highlight isn’t the dazzling sights or the music; it’s the community pride, she said.

“It delivers a pride to our town; it’s the time when our community groups, businesses, and organisations lash out, decorate up and promenade to showcase their role in our town,” Ms Flynn said.

“They’re saying to us ‘Come share with us, come and be Roma together with us, come be a community.’”

This years’ Parade will kick off a 9am and will take about an hour to wind its way through key streets to arrive at the final destination at 10am.

Judges will be on site to inspect and award prizes, with some standing to win as much as $1,500.

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E

ASTER in the Country always has something special for everyone, and this year’s celebrations are certain to have heads turning at the sight of the Street Parade.

President of Easter in the Country Jenny Flynn said she was always amazed at the pleasure the parade brings to the community.

“As the street market kicks in on Easter Saturday morning, above the hustle and bustle and barter with it, you can see them arrive and assemble on the street,” she said.

“And it begins – loudly, and as if on cue with a bang and a clatter music of different zones and tones fill the air.”

Ergon Energy’s Easter in the Country Street Parade has always been a highlight of the past festivals, and Ms Flynn is confident that this year’s parade will be one of the

IN THE NEWS

Local content advisor at CPB contractors Ben Hughes speaks at TSBE's Wandoan enterprise evening.

INDUSTRY UPDATE: QGC Vice President - External Affairs and Sustainability, Joanne Pafumi updates TSBE members on the progress to date on QGC's Charlie project.

TSBE Wandoan Enterprise Evening

QGC provides Charlie supply chain update M

ORE than 200 people gathered in Wandoan earlier this month for Toowoomba and Surat Basin Enterprise’s (TSBE) March Enterprise Evening to hear first-hand about the newest CSG development in the region – QGC’s Project Charlie.

QGC Vice President – External Affairs and Sustainability, Joanne Pafumi, updated attendees on QGC’s overall project to date, highlighting the lead contracting firms involved with the project and providing

insights into the projects contribution to the Queensland Resource Sector.

TSBE chief executive officer Dr Ben Lyons said it was positive to see such strong support in Wandoan for Project Charlie.

“It was great to see such a strong turnout to hear from QGC in regards to their latest development,” Dr Lyons said.

“Project Charlie is the industry’s first example of ongoing investment within the Surat Basin resource sector with the $1.7 billion project representing the ongoing

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‘sustain phase’ of projects, where smaller targeted locations are developed as new gasfields to keep supply to Gladstone for export."

Local Content Advisor at CPB Contractors, QGC’s main works contractors, Ben Hughes also briefed guests regarding the project’s local content engagement to date and gave an overview of the project’s overall requirements.

“The project is expected to create 1,600 jobs in the next two years so it was pleasing to

hear from Mr Hughes in regards to the project’s local content engagement and how they are engaging with local companies,” Dr Lyons said.

TSBE Gold Level Member and specialist telecommunications provider MarchIT sponsored the evening.

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PAGE 17

IN THE NEWS

QRC Listening to the Community Project

Solar boost off the boil

New guide for sector Updated initiative reflects current commodities slump and its effects on regional Queensland

T

HE release of a new guide for resources sector communities reflects the current commodities slump and its effects on those in regional Queensland who are feeling the pinch.

Queensland Resources Council chief executive Michael Roche said the QRC’s Listening to the Community initiative was designed to assist companies to engage effectively with those who are in the heartland of their operations.

The project, which saw the initial release of findings in 2013, has been reviewed and updated to reflect communities’ needs in 2016, in the post construction-boom environment.

“The economic and social landscape looks a lot different to when we first undertook this initiative, so we thought it was timely to review and update the guide in 2016 to better reflect the needs of local communities where resources companies operate,” Mr Roche said.

“Many communities are experiencing the adjustment from construction to production as well as the severe cost cutting forced on to most resource operations in the face of plunging commodity prices.

“The original work involved social researchers conducting focus groups with 200 community members at 19 regional centres across Queensland to establish the

Queensland Resources Council CEO Michael Roche. effectiveness of community engagement practices used by resource companies and how they could be improved.

“Researchers then analysed community feedback about the good and not-so-good elements of companies’ practices.

“While the findings revealed that communities valued company contributions, it was successful in identifying improvements that were incorporated into a Guide for Effective Engagement.”

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CS ENERGY has announced it will not complete the Solar Boost demonstration project located at its Kogan Creek Power Station near Chinchilla.

The decision was made due to a number of technical and contractual difficulties encountered during construction and the resultant negative impact on the project’s commercial prospects. The Solar Boost project was to provide, in peak solar conditions, a 44 megawatt (MW) solar thermal addition to the 750MW Kogan Creek coal-fired power station. The project commenced construction in 2011 and was designed to use AREVA Solar’s Compact Linear Fresnel Reflector (CLFR) technology. In August 2014, AREVA announced that it would withdraw its operations from Australia and exit the solar thermal business worldwide.

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Mr Roche said while the sector was a heavy lifter for jobs and economic growth, many resources companies took great pride in going beyond compliance in the interests of strengthening their ‘social licence’ to operate and exceeding community expectations.

“Our members understand that their social licence needs to be earned, renewed and reinforced by listening to the communities when times are good but, more importantly during the tougher times that we’re experiencing now,” Mr Roche said.

“We know from our research that communities want companies to listen and actively engage in their community – to attend and be part of the local school fete rather than simply handing over a cheque.”

The Listening to the Community project has identified five principles for effective engagement – communication, integrity and transparency, follow through, understanding and awareness, and respect.

Mr Roche said communities also wanted clear, honest communication from companies even if that involved unwelcome news, such as job losses, during the tougher times.

He said the Listening to the Community project provided an essential toolkit for resources companies to support the development of stronger and more durable partnerships with regional Queensland communities.

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PAGE 19

OPINION

Team to fly Surat Basin flag on world stage

.

COMMENT Ben Lyons CEO TSBE

N

EXT month, some of the TSBE team will be heading to Perth to attend LNG18 – International Conference and Exhibition on Liquefied Natural Gas, the world’s largest global LNG event.

With all three Surat Basin CSG projects now exporting LNG from Gladstone, TSBE will be representing the region and putting the Surat Basin Resource Region success story on the global stage as LNG industry leaders

.

Balance and transparency for all levels of government COMMENT Dan McGaw State Organiser Electrical Trades Union South West Queensland

T

HERE has been much debate lately particularly around local government and who should and should be able to hold a position in public office.

Luckily we live in a democratic country where everyone has the right to free speech and freedom of association. We have a proud history of having parliamentary representatives from all walks of life. No matter what your background, colour, race or religion everyone has the right to “throw their hat in the ring”.

This was the Australia I thought I knew until the local Toowoomba Regional Council elections. Unfortunately certain groups and influential individuals came out publicly stating that union representatives or ALP aligned candidates have no place in council. What are they scared about?

From my point of view an ideal council would be made up of equal representation. Someone from the business community, someone representing the working class, someone representing youth and an elderly councillor with views of their age group. Wouldn’t council flourish if there was robust debate from all sides of the community?

I have stated in this piece previously that the union movement has achieved so much for everyday Australians.

Everyone has something to be thankful for. Why is it that there is a constant attack on the unions in Australia? Yes there are some crooks in the movement but as there are in every group and sector in Australia. Is every businessman like Christopher Skase and rips off their workers? Of course not.

Unions in Australia have proudly represented workers for as long as there have been employers. We proudly represent the interests of average working Australians and will continue being their voice for years to come.

PAGE 20

gather to discuss the future of the sector.

From a global perspective we can talk in broad terms about the industry in Australia and why an event such as LNG18 being hosted in Australia is important: Australia is the third largest LNG exporter in the Asia-Pacific region and the fourth largest LNG exporter in the world.

However, with Australia developing the fastest growing LNG projects in the world, Australia could be the largest by 2020.

From a local perspective, the Surat Basin region is considered one of the leading onshore CSG producing regions in the country. The region houses three major upstream projects in the APLNG, GLNG and QCLNG projects, and the industry supports

local communities through jobs and economic injections. These projects alone have encompassed a construction spend of approximately $75 billion having a major positive impact for regional Queensland, now and well into the future.

However, as we have all experienced and seen, the industry is not without its challenges. These challenges, and how industry leaders are evolving to meet the commercial, technological, social and environmental challenges facing those working in a global industry, will be a key focus of LNG18.

TSBE is joining this conversation with TSBE chairman Shane Charles presenting alongside TSBE Board Member and Oil and

Gas Executive, Lisa France on the Surat Basin’s positive legacy story for onshore gas development in regional Australia.

More than 60 countries will be showcased through the five-day event, and TSBE is proud to be flying the flag for the Surat Basin region, its partner councils and commercial members.

If companies from the Surat Basin region are attending LNG18, I encourage you to stop by the TSBE exhibit site to meet with our Surat Basin Supply Chain team Reagan Parle and Lance MacManus. LNG18 will be held from April 11-15. To keep up-to-date during the event, follow @LNG18Perth on Twitter, and @TSBEnterprise to see TSBE in action at the event.

Relationships key to long-term gas business .

COMMENT John Cotter Chairman of GasFields Commission Queensland

T

HE importance of maintaining strong supplier-customer relationships for firms working in the onshore gas industry was highlighted at two recent local business forums in the Surat Basin.

While price remains paramount, gas operators reiterated that local businesses had plenty to offer as competitive, convenient and reliable suppliers of goods and services in the Surat Basin.

Gas operators have to be open to accommodate local suppliers and at the same time local businesses must be ready and able to meet the industry’s changing requirements. That’s where developing and maintaining strong relationships and open communication are crucial for local businesses with their immediate customer and the broader supply chain network.

In February, the GasFields Commission brought together CEOs of the major onshore gas operators and Maranoa business representatives at the Gasfields Community Leaders Council meeting in Roma. With the fall in global energy prices, the industry CEOs highlighted the economic challenges for these gas projects and the need to work

closely across their entire supply chains including local firms to improve cost efficiencies.

One operator highlighted the efficiencies gained over recent years in the cost of drilling and completing a gas well which had fallen from almost $4 million to close to $2 million. It was a similar message for the more than 100 businesses that turned out for the Toowoomba Surat Basin Enterprise function earlier this month, which canvassed supply opportunities for Project Charlie – the next phase of a gas field development involving the construction of a field compression station and 300 gas wells. For more information visit www.gasfieldscommissionqld.org.au.

Policy makers need to show more foresight

.

COMMENT Ann Leahy MP Member for Warrego

I

WAS fortunate to be able to visit the Origin Energy APLNG facility on Curtis Island earlier this month. It is a massive project and can be fully appreciated when seen on site.

I would like to thank APLNG for the opportunity to see where the Miles and Chinchilla gas leaves the Australian shore and understand more about gas being used for domestic purposes. It was a learning experience and a privilege to attend.

The size of the project is evident when one sees the extent of one of the gas processing trains, shipping port and other associated infrastructure.

There are three individual company projects of this size on Curtis Island, at three different sites. This has raised public policy questions after seeing one facility for the first time.

I do not wish to appear critical of any of the projects and acknowledge it is very easy to make comment with the benefit of hindsight.

However there are some public policy questions that need to be asked next time Queensland is in a position to take advantage in technology that enables resource development.

Who knows what the next development could be, geothermal energy, or something else which we have not even heard of today.

Technology will not stop advancing and there will be more opportunities in the future as advances and investment opportunities evolve.

There are questions – why build three similar sized plants on an island that has no

transport bridge to the island? Everything for the three Curtis Island gas plants had to be boated across the harbour waters.

Why build three processing plants, three workers’camps, three shipping ports? The answer is simple – because they can and the government approvals were given to enable this to occur.

This is where the public policy framework comes into play.

If governments had said one plant capable for three companies, I have now been told this could have then been an end result by those involved.

There would have also been considerable cost savings to each of the companies and contractors.

A consideration that Queensland policy makers should always take into account to attract private investment, given the high costs in our country to undertake business compared with other parts of the world.

Asian demand to grow farm exports .

COMMENT Barry O’Sullivan Queensland LNP Senator

S

OME of the best and brightest in the Australian agriculture sector gathered in Canberra earlier this month for the 2016 ABARES Outlook conference.

The ABARES conferences have increasingly generated significant attention in recent years as the Australian economy continues its successful transition from the mining-led investment boom to broader-based growth,

driven by services, exports, innovation and technology.

Some of Australia’s greatest exports—particularly agriculture, international education and tourism—are spearheading this transition, and they have helped to add more than 300,000 new jobs to our economy over the past year.

As the latest figures show, Australia’s economic growth is about 3%, which is better than the OECD average.

The gross value of farm production for the financial year ending 2015-16, however, is predicted by ABARES to be at 9.3%. This is three times better than the national average growth across the whole economy, and at

Surat Basin NEWS Thursday 24 March 2016

least four times better than the OECD growth.

Livestock is a classic example of this. In the 2014-15 financial year Australia recorded a 13.3% gross value increase in livestock production. These are the highest prices for livestock in 20 years.

The increasing middle class of our major trading partners means the demand for protein is increasing rapidly. Farm exports are forecast to reach nearly $45 billion in 2015-16. That’s a 37% increase since 2010-11.

Our exports to Asian markets, in particular, are expected to grow even more as a result of FTAs with our three major markets in North Asia, and eventually the TPP.

OPINION

Lazarus gas inquiry will hear the facts

.

COMMENT Michael Roche CEO Queensland Resources Council

D

ESPITE being the lynchpin of the Queensland economy – and one of the state’s most crucial employers – resource development is under constant attack from green activists.

The latest – in a very long line of inquiries and inquisitions into the gas industry – comes from former rugby league player Glenn Lazarus, who is now a Queensland Senator.

Senator Lazarus is fighting for his political existence as the Federal Parliament moves to

reform an electoral system that has delivered Senate control to a bunch of Senators who attracted a handful of votes in their own right at the 2013 Federal Election.

While the QRC believes Senator Lazarus’s inquiry into so-called unconventional gas mining is unnecessary, we believe that the Queensland gas sector has nothing to fear from it and have welcomed the opportunity to make a detailed submission.

Because we believe the inquiry is an opportunity to present all the facts about the social, environmental and economic performance – and benefits – of the Queensland gas industry. Given the weight of facts, QRC hopes that the Senate committee

New ideas bring growth .

COMMENT Pat Weir MP Member for Condamine

W

E LIVE in a very fortunate part of Queensland with a diversity of industries and businesses from agriculture to manufacturing to commerce.

Although there have been downturns in certain industries other sectors have bridged the gap to some extent. In the past two years agriculture has risen in production on the Darling Downs and commodity prices have been favourable. This has enabled the fallout from the end of the construction phase of the coal seam gas industry to have a less negative impact in some towns.

Once the construction phase ended,

businesses had to find alternate ways to manage the bottom line. Towns like Dalby struggled and it has been a slow road to recovery for many small business owners.

Finding new markets and diversifying has proven to be difficult for some industries but I have seen new ideas emerge to strengthen and grow businesses, and hopefully provide a profitable and sustainable outcome. There is still significant growth in the Condamine electorate and we can have confidence in this growth continuing with many projects about to enter the construction phase.

In closing, a redistribution of Queensland’s 89 electorates will take place this year. I urge you to look at the Electoral Commission of Queensland’s website to find out more and lodge a submission with your views. The Condamine electorate is over quota for the number of enrolments by 8.57% meaning a change in boundary this year.

will confirm the findings of many other independent reports into natural gas.

But perhaps the die was cast in the first week of the inquiry’s hearings in Dalby last month.

There was a procession of the standard critics featured on the Lock the Gate website, given carte blanche by Senator Lazarus as committee chair to attack the gas industry and the people who work in it.

In our submission, we will present the facts about the gas sector’s economic and social contribution to Queensland and about how it is regulated. We will make the point that Queensland’s land access laws do strike a fair balance between providing the community with the benefits from

.

development of the state’s resource wealth, and respecting the rights of farmers.

No one is saying that companies should have the right to place gas wells and associated infrastructure where it suits them. Farmers should have the right to determine who can come onto their land and when, whether they be in search of gas, minerals or coal. And that is exactly what our current land access laws do. In Queensland, more than 5000 conduct and compensation agreements have been struck since the Land Access Framework was put into effect in 2010. Under these agreements farmers have negotiated compensation agreements totalling hundreds of millions of dollars.

CSG industry supports agriculture COMMENT Chris Lamont APPEA Queensland Director

A

USTRALIA is the driest continent on Earth, so for the agriculture sector a new relationship that offers water during drought is a good starting point.

The Surat Basin agricultural sector and natural gas companies have formed working partnerships delivering tangible benefits for both.

These partnerships required negotiation on land access, well placement, infrastructure and compensation to name just a few.

Water, is one area where both sectors have worked hard to produce results that benefit farms while meeting the standards required

of the Queensland Government’s CSG water management policy.

Natural gas in coal seams is held in place by the pressure of groundwater. When water is pumped to the surface by wells, pressure is relieved allowing gas to flow and be collected.

CSG production water tends to be relatively saline (usually it is brackish, like estuarine water) but when treated it becomes an invaluable resource.

Origin Energy’s Fairy Meadow Irrigation Pipeline Project is one of many putting CSG water to good use. Treated water is delivered via pipeline from reverse osmosis water treatment facilities at Talinga and Condabri.

It is stored in the Monreagh Dam, then transferred to landholders via a 22 kilometre distribution pipeline. The project may provide up to 15 gigalitres of treated water per year during peak production.

Scientific committee appoints new members .

COMMENT Bruce Scott MP Federal Member for Maranoa

M

Y HOME town of Roma was where oil was first discovered in Australia and, having grown up on the land, with my family connected to the area since before the town was gazetted, I have a real appreciation of establishing the right balance between community and mining.

That’s why I was a strong supporter of the introduction of the Independent Expert Scientific Committee on Coal Seam Gas and

Large Coal Mining Development.

The IESC provides vital independent, expert scientific advice to all levels of government and the community on the potential impacts of coal seam gas and large coal mining proposals on a very important asset – our water resources. Take the Great Artesian Basin as a significant example because this vital water resource stretches from Queensland, New South Wales, the Northern Territory and South Australia.

It has always been my belief the IESC should not just be loaded with “scientists” because it’s important to achieve a balance on this committee, to include members with varying backgrounds. I believe the committee should include people who have an understanding of

community, of environment, of the way aquifers work and recharge and, of course, of the importance of aquifers to rural and remote communities.

It’s also important to note that state governments have the overriding Constitutional responsibility for the regulation and operation of our resources, the Federal Government is limited to environment and biodiversity issues associated with mining approvals.

During the recent parliamentary sittings, the Coalition Government announced two new IESC members – Dr Ian Prosser and Dr Glen Walker.

Dr Ian Prosser is currently head of BOM’s Water Information Services and has

experience with hydrology research and science covering almost 30 years. He is also the author of scientific publications on a wide range of aspects of hydrology and was lead author of Water: Science and Solutions for Australia.

Dr Glen Walker has more than 30 years’ experience in hydrology, groundwater and salinity research. He is also the author of numerous scientific papers and worked at the CSIRO for two decades.

Dr Prosser and Dr Walker have distinguished research backgrounds in hydrology and will further contribute to the high-standard of advice provided by the committee.

For more IESC information, check out: www.iesc.environment.gov.au/.

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AA&ES' Steve Keating, Joe Wagner, AA&ES' Ursula Keating and Rocla's Scott Fyfe at the TSBE enterprise evening in Wandoan this month.

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APLNG celebrations HUNDREDS of people, ranging from landholders to executives to politicians gathered on a hill overlooking APLNG’s Curtis Island LNG facility earlier this month to celebrate the company’s milestone first shipments. Beginning with a tour of the facility, the group, which included Premier Annastacia Palaszczuk, sat down to lunch and a series of speeches.

The project was hailed as a testament to what bi-partisan political support could achieve in Australia.

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Members of the Gasfields Commision on Curtis Island for APLNG's milestone celebrations earlier this month.

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PAGE 23

IN THE NEWS

QGC Communities Fund

Into the digital age $50,000 grant helps Wandoan State School kids get to grips with STEM skills

W

ANDOAN State School kids will be getting to grips with robotics, coding, laser cutting and 3D printing thanks to support from the QGC Communities Fund, which is currently open for grant applications.

The QGC Communities Fund gives not-for-profit organisations and local governments in the Western Downs and Gladstone the opportunity to benefit from $10,001 to $50,000 of support for projects up to 12 months that enhance regional liveability.

Vice President External Affairs Joanne Pafumi said QGC was committed to helping develop strong, diversified economic growth and sustainability in communities where it operates.

"By focusing on skills development, service capacity and science, technology, engineering and maths (STEM) education, we’re supporting communities to lay the foundations for a prosperous future."

The types of projects eligible for support include training programs for employees and volunteers, new facilities and equipment to support STEM education, improvements to buildings or resources, events and festivals.

The current funding round closes on March 31, when applications will be assessed by panels comprising QGC and

community representatives.

From the last round between August and September last year, grants worth about $422,530 were provided to help deliver 13 community projects.

These included a total of about $216,550 granted to seven groups in Gladstone and about $205,980 to six groups in the Western Downs.

Wandoan State School Principal Rowie Price said a $49,819 grant is allowing the school to purchase resources to be able to implement a Digital Technology Program with a focus on strong STEM skills.

"The digital technology program will help develop skills in our students that will give them career opportunities in the digital space in the future.

"It will also help foster a local future workforce for our community that can tackle the challenges our local communities are facing – innovation and change.

Representatives from not-for-profit organisations and local governments can register for free information sessions about the fund through (freecall) 1800 030 443 or email community@qgc.com.au Nominate your session from the list below. An application form and guidelines can be downloaded through www.bg-group.com/australia.

VIEW THE BACK EDITIONS ONLINE Read all of our back issues www.issuu.com/suratbasinnews

THE LATEST NEWS ONLINE Keep in touch with the latest news with just a mouse click www.suratbasin.com.au

SURAT BASIN NEWS Published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street Chinchilla Q4413 Printed by APN Print Warwick 56 Kenilworth Street Warwick 4370 2013

COMMUNITY BOOST: A grant from QGC's Communities Fund has allowed Wandoan State School to purchase robotics, coding, laser cutting and 3D printing equipment. Pictured are Dakota Davies and Daniel Gunnulson.

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