Metgasco Limited finds itself friendless – with all seven Northern Rivers local government councils having put their concerns and/or outright opposition on the public record and, the NSW Government standing by its decision to suspend operations at the company’s PEL 16 Rosella E01 Bentley gas exploration well.
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The Hon Anthony Roberts MP
Minister for Resources and Energy
Special Minister of State
Thursday 26 June 2014
STATEMENT ON METGASCO
As requested by Metgasco, a review of the Office of Coal Seam Gas (OCSG) decision to suspend operations of Metgasco under the Activity Approval has been undertaken.
Metgasco was provided with opportunities to submit additional material to be taken into account in relation to this review.
Metgasco took the opportunity to submit additional material during the course of the review which has been taken into account.
The outcome of the review is that the decision to suspend the operations of Metgasco under the Activity Approval remains in place until the OCSG is satisfied that the company
has met the conditions of its title and the conditions of the Activity Approval.
An Executive Summary of the reasons will be published by the OCSG on its website in due course at: www.csg.nsw.gov.au
As this matter remains the subject of ongoing litigation, I will be making no further comment.
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Statements on Metgasco
Metgasco - petroleum exploration licence 16
Status of Rosella exploration well activity approval
26 June 2014
The decision to suspend the operations of Metgasco under the Activity Approval remains in place until the Office Of Coal Seam Gas is satisfied that the company has met the conditions of its title and the conditions of the Activity Approval. Read the decision here.
14 May 2014
On 14 May 2014 the Office of Coal Seam Gas OCSG put a hold on Metgasco's approval to drill an exploration well at Bentley, near Casino in the Northern Rivers, on the basis that the company was not in compliance with its community consultation obligations under Petroleum Exploration Licence 16 (PEL 16).
Metgasco Ltd wrote to the OCSG on 15 May 2014 requesting that the OCSG review its decision of 14 May 2014.
Metgasco provided the OCSG with additional material about its community consultation activities for the proposed drilling of the Rosella Exploration Well to consider as part of the review.
OCSG met with Metgasco on 16 May 2014 to discuss the regulator's decision of 14 May 2014 and the company's submission.
The OCSG has reviewed this additional material. At this stage, the decision of 14 May 2014 still stands, given the company has not effectively and genuinely engaged with the community or put in place an appropriate community consultation plan in accordance with the Guideline for community consultation requirements for exploration ("the Guideline").
OCSG has informed Metgasco of this and given the company a further 10 days to make any further submissions. A final decision on review will be made following full consideration of any further submissions.
The OCSG has maintained an ongoing dialogue with Metgasco in relation to this matter.
Compliance with Community Consultation Condition
Community consultation and engagement is a key element of the regulatory framework for petroleum exploration projects in NSW.
This is reflected in the imposition of a specific condition on petroleum exploration licences (PELs) issued under the Petroleum (Onshore) Act 1991 (the Act). The conditions make it mandatory for petroleum exploration licence holders to "engage with the community in relation to the planning for and conduct of prospecting operations". This condition is supported by a guideline: Guideline for community consultation requirements for exploration (the Guideline).
In addition, licence holders must report on compliance with the above condition annually.
The OCSG acknowledges that some sections of the community are opposed to the development of a gas industry for a variety reasons. We do not expect licence holders such as Metgasco to be able to change their view points.
We do however expect that licence holders such as Metgasco will develop a detailed consultation plan in compliance with the Guideline and demonstrate an ability to effectively and genuinely engage with the community.
The plan should be appropriate to the circumstances of the case and include a detailed analysis of stakeholder groups in the Richmond Valley, Kyogle Shire and Lismore City Council areas.
The OCSG has advised Metgasco that works could be recommenced under the activity approval once an acceptable community consultation plan is in place and the company demonstrates an ability to appropriately engage with the community, in compliance with relevant obligations under PEL 16.
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