The state government moved last week to apply a 2km buffer zone between towns of more than 1000 people and CSG drilling.
In addition, the state’s Environmental Protection Agency would become the lead regulator of health and environmental impacts from CSG activities, while the state’s top scientist, Mary Kane, will undertake a review of CSG activity in the state.
Almost as soon as the announcement was made, both companies working in the state and peak body the Australian Petroleum Production and Exploration Association came out in unison to warn of the devastating economic consequences of the decision.
Now the ESAA has joined the chorus, warning about the effects of the decision.
“Coal seam gas reserves in NSW are owned by the people of NSW, not by a handful of landholders,” ESAA chief executive Matthew Warren said.
“Saying no to appropriate developments means the state government will have less money to provide hospitals, schools, and transport.
“Households want relief from rising energy bills and the state desperately needs new investment to unlock growth. This decision to block CSG development in NSW does everything to make the situation worse.”
EnergyNews confirmed with the ESAA that the $2 billion figure pertained to the latest measures rather than a blanket freeze on development in the state.
While Dart Energy and Metgasco are thought to be directly affected by the measures, Santos has told media that its early exploration program in the Pilliga Forest remains unaffected.
AGL confirmed this morning that its existing CSG plans for the state would escape the worst of the legislation.
It told investors during the release of its half-year results that its existing Camden project and the recently approved stage one Gloucestor project would not be harmed, as the projects had already received approval.
However, the northern extension of the Camden project appears to be all but buried, while it admits that expansion beyond the first phase of the Gloucestor project may be problematic.
It insists that the book value of the Gloucestor project will not be changed materially.
