NSW Gov't Buys Back CSG Licences

[icyfroth]

The NSW government is moving to make it harder for major mining proposals to get planning approval, backflipping on a move it took 18 months ago to smooth the path for major projects.

Today the Baird government will release a draft amendment to the state environmental planning policy on mining, removing a ­provision making the significance of the resource the principal ­consideration.

The mining planning policy was changed by the O’Farrell Liberal government after residents of Bulga, a small hamlet in the Hunter Valley, won a court battle against Rio Tinto’s expansion plans for its Mount Thorley Warkworth mine. The NSW Land and Environment Court found in favour of the Bulga Milbrodale Progress Association, due to adverse environmental and social impacts, which it found outweighed the economic benefits of the proposal.

Rio resubmitted a new, pared- down expansion plan after the planning policy was changed to tilt the balance in favour of mining proposals. Rio says the mine, which employs 1300 people, is coming to the end of its economic life unless it is granted permission for its expansion.

The independent Planning ­Assessment Commission sugg­ested that the town could be relocated. It recommended that the benefits of the project outweighed the potential impacts on Bulga. That idea pleased no one, with Rio disowning it and Mr Baird saying he did not agree.

The latest move is yet another politically-driven response to mining projects. In 2013, while the government was making coalmining projects easier, it was also making it tougher for coal-seam gas developments.

It has been buying back CSG exploration licences in order to reduce the political opposition to CSG, including three yesterday which cover 1.5 million hectares — two in the Hunter Valley and one which stretched from south of Sydney to the Central Coast.

Entire Article Here

Finally someone in Government is listening.

[lloydslights]

Icy, that reference is for subscribers only. 

Here's an ABC News article .http://www.abc.net.au/news/2015-07-06/agl-csg-licences-bought-back-hunter-sydney-illawarra/6597714

The Govt bought back some properties here on the Central Coast in the recent past.  I will follow up with the story, when I locate it.

DEB

[lloydslights]

http://www.afr.com/business/energy/gas/agl-energy-surrenders-central-coast-coal-seam-gas-licence-201...

March 19, 2015 - The Financial Review - Full story below.

Energy has become the latest company to sell back a coal seam gas licence to the NSW government under the state's buyback scheme, intended to limit land subject to development.

While the utility said the Petroleum Exploration Licence (PEL) 5 on the Central Coast was not "commercially viable", the move casts further doubt on AGL's commitment to upstream gas after new chief executive Andy Vesey placed the business under review within a week of assuming the post last month.

The NSW government's CSG licence buyback scheme, introduced in its gas plan, offers holders of exploration licences a one-off opportunity to surrender titles for limited compensation. The AGL buyback is at least the fifth to be announced this month.

The government aims to cut the proportion of the state covered by exploration licences to 15 per cent from almost 50 per cent.

The scheme has been criticised by the Greens, who oppose the use of taxpayers' money to bail out CSG companies from otherwise worthless licences.

The 39,837-hectare PEL 5 licence is mostly covered by lakes and mining leases, and the 10 per cent available for exploration doesn't have the "technical elements required for a successful gas project", according to Scott Thomas, AGL's acting head of upstream gas. 

The move doesn't affect AGL's Camden CSG venture south of Sydney, nor its proposed Gloucester project.

  UNCERTAIN FUTURE

Uncertainty hangs over the future of AGL's upstream gas business, after Mr Vesey's announcement of a "comprehensive review" which followed a recent CSG water-contamination problem at Gloucester.

Citigroup analyst Dale Koenders said last month that should negative sentiment around the controversial Gloucester CSG project influence AGL's retail position, AGL may be better off walking away or selling it to protect its brand.

NSW Resources and Energy Minister Anthony Roberts also announced on Monday the cancellation of two CSG exploration licences in the Northern Rivers region after buying the permits back from Clarence Moreton Resources and ERM Gas. Privately owned Pangaea and Dart Energy have also surrendered CSG licences in the past week.

DEB

[lloydslights]

not "commercially viable",      and  for limited compensation.

I wonder how much above the original purchase price they will be "compensated".   That's one way to make money isn't it?  

Buy up tracts of land for CSG or coal or whatever,  decide that it is no longer appropriate for that intention and sell it off to the government; after having had dislodged the original owners (and destablized communities) who were paid a mozza and bought investment properties in Sydney and other areas which helped boost housing prices.

Ring-a-round-circles with $$$$$s

DEB

[icyfroth]

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@lloydslights wrote:

Icy, that reference is for subscribers only. 

Here's an ABC News article .http://www.abc.net.au/news/2015-07-06/agl-csg-licences-bought-back-hunter-sydney-illawarra/6597714

The Govt bought back some properties here on the Central Coast in the recent past.  I will follow up with the story, when I locate it.

DEB

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ok thanks Deb.

[icyfroth]

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@lloydslights wrote:

not "commercially viable",      and  for limited compensation.

I wonder how much above the original purchase price they will be "compensated".   That's one way to make money isn't it?  

Buy up tracts of land for CSG or coal or whatever,  decide that it is no longer appropriate for that intention and sell it off to the government; after having had dislodged the original owners (and destablized communities) who were paid a mozza and bought investment properties in Sydney and other areas which helped boost housing prices.

Ring-a-round-circles with $$$$$s

DEB

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I was thinking the same thing. They wouldn't have backed offso readily if it were "commercially viable" to press on.

A lot of  credit goew to organisations like Lock the Gate who has coordinated campaigns and rallied communitiy protests.