Category Archives: Mining

Eraring coal-fired power station’s expansion plans a recipe for disaster

The Greens have condemned EPA approval for Origin’s Eraring coal-fired power station to expand an ash dam over a disused coal mine, despite expert concerns about potential hazards.

Energy and Resources spokesperson Jeremy Buckingham said, “Expanding the Eraring ash dam over the top of an old underground mine is a recipe for disaster.

“Sinkholes are likely to connect the toxic ash dam with the abandoned underground mine which will then leak to pollute Lake Macquarie.

“The expansion plans exponentially increase the area where the ash dam would be located over the the old underground coal mine. Origin Energy and the government should look for a less risky option for disposal of ash from the power station.

“The government should thoroughly investigate whether the current ash dam configuration is leeching toxic chemicals into the old mine and Lake Macquarie before it even considers this risky expansion.

“This issue demonstrates some of the hidden environmental and financial costs of coal, and is yet another reason we should rapidly transition from coal to renewable energy.

“The sooner Eraring power station closes, the less the ash dam will need to be expanded and the less risk of water pollution.

“This kind of geo-engineering will have long-lasting impacts and the government must ensure the rehabilitation bonds are adequate and liabilities are covered into the future when coal-fired power stations are remembered as a folly that went on for far too long,” he said.

📷: Google Earth image from Sydney Morning Herald

 

Greens welcome cancellation of Central Coast CSG licence and push for stronger community protection

Media Release – 26 September 2018

The Greens have welcomed the announcement that the NSW Government has cancelled the PEL 461 coal seam gas exploration licence on the Central Coast following strong community opposition.

Greens Resources spokesperson Jeremy Buckingham called on stronger action from both the NSW and Federal governments to protect communities against the impacts of coal seam gas activities.

He said the NSW Government should cancel the remaining coal seam gas licence covering Santos’s mega-gas field proposal in the Pilliga and the Federal government must halt gas exploration off the coast of Newcastle and the Central Coast

“The buyback and cancellation of the PEL 461 exploration licence is a great win for the local community and all who have joined the fight to protect our land and future from coal seam gas,” he said.

“But there is important and unfinished business when it comes to protecting communities from the dangers of coal seam gas exploration and production.

“The Central Coast community does not support an offshore gasfield off its coastline that would put at risk whales, marine life and threaten valuable fisheries. Prime Minister Scott Morrison should prohibit offshore gas and oil development off the NSW coast.

“All NSW communities deserve equal protection from the risks of coal seam gas, farmers and landholders need safety as much as urban communities in marginal electorates.

“Right now, there is an active proposal from Santos for a controversial 850-well coal seam field over 95,000 hectares in the Pilliga.

“The Narrabri coal seam gas field would become the largest coal seam gas in the state and risk vast areas of woodland, threatened species and groundwater from the Great Artesian Basin. Exploration activities for this project have already seen toxic wastewater leak from holding ponds and contaminate local aquifers.

“Coal seam gas is too risky for the Pilliga. The NSW Government should buy back the Santos licence and give the local community greater security over its precious water resources, the Pilliga forest and its future,” Mr Buckingham said.

42 Days to Respond to Vickery Coal Mine Extension proposal too short for drought-stricken farmer

MEDIA RELEASE – 24 September 2018

NSW Greens Resources spokesperson Jeremy Buckingham today called on the NSW Government to extend the review period for the Environmental Impact Statement (EIS) for the Vickery Coal Mine Extension from 42 days to 90 days, to allow the local community adequate time to review the 4,000 page EIS.

The Extension Project proposes to increase mine extraction from 4.5 to up to 10 million tonnes per annum, with potentially significant impacts on surrounding landholders.

“The idea that farming families in Narrabri, Boggabri and Gunnedah, currently dealing with the drought, could get across the detail of 4,000 pages in 40 days is disrespectful at best. These are complex, technical documents that take time to digest and respond to,” said Greens MP Jeremy Buckingham.

“Planning Minister Antony Roberts sitting in his Lane Cove electorate office clearly has no understanding of the pressures on farmers in the day to day operation of their businesses.”

“This is effectively a new mine in a sensitive agricultural area, and the community must have adequate time to respond to the potentially significant impacts of the proposal on groundwater resources and noise especially.”

“The Greens strongly back the farmers’ very reasonable request of the Planning Minister to provide an extension of time to 90 days to review the documents. This extension of time will go some of the way to ensuring that there is proper scrutiny and consideration of the impacts,” said Mr Buckingham.

“There should be no new coal mines or coal mine expansions in an era of worsening climate change, especially with the impacts of climate change so evident in the impacts of this severe drought. It is negligent and irresponsible for the Government to be allowing this proposal to proceed.”

‘Ludicrous’: First new coal license set to be granted in Sydney Basin since 1993

MEDIA RELEASE: 14 August 2018

The Greens NSW mining spokesman Jeremy Buckingham today expressed outrage that the NSW Government intend to grant the first new coal exploration license in the Sydney basin since 1993 to South 32 despite the company breaching its Environmental Protection Licenses 447 times in the past 18 years at its four existing collieries in south west Sydney.  The allocation of this license near Picton in the catchment of the Nepean River comes at the same time that the Liberals have sought to renew over 1000 km2 of existing coal exploration licenses in the Sydney basin held by the Government.

“South 32’s south-west Sydney coal mines have breached their environmental protection licenses 447 times in the past 18 years without any consequences, making a mockery of the law,” said Greens MP Jeremy Buckingham.

“It beggars belief that the Liberals are actually considering granting a new coal exploration license in the Sydney Basin to this repeat offender. The destruction caused by coal mining is clear and the community opposition is overwhelming.

“We need decisive leadership to end the NSW addiction to coal and a basic principle should be to not renew or issue new licenses and approvals in the Sydney Basin and our drinking water catchments.

“Why in 2018, with climate change biting, are the Liberal Government opening up new areas and renewing exploration licenses over massive parts of the Sydney Basin, paving the way for new coal mines here?

“It is ludicrous that the Government is even considering an application for a new coal exploration license in the catchment of the Nepean River in the Sydney Basin.

“The people of Sydney will not tolerate new or expanded coal mining and the Greens will be making an end to coal mining one of the key issues in the lead up to the state election,” said Mr Buckingham.

Endeavour Coal (a subsidiary of South 32) have had non-compliances with their Environmental Protection License at the West Cliff, North Cliff, Appin and Appin West Collieries every single year since 1999 for a total of 447 non-compliances. They have never had a single Penalty Notice for this.

This comprises 182 non-compliances on EPL 2504 since 2002, 218 on EPL 758 from 2000-2010 (in 2010 EPL 758 was combined with EPL 2504) and 47 non compliances for EPL 398 between 1999 and 2010 (when it was also combined with EPL 2504).

The new exploration license application is the yellow one in this map:

picton license

There are three massive exploration licenses held by the NSW Government (officially the Secretary of the Department of Planning and Environment) which are located in the Sydney Basin, including parts of the drinking water catchment that have expired recently and the Government has recently applied to have them renewed:

Title Date granted Date expired Size (km2)
AUTH 6 17-Jul-72 1-May-18 727
AUTH 278 18-Nov-87 15-Nov-16 262.5
AUTH 281 15-Dec-81 1-May-18 52
Total: 1041.5

Contact: Jack Gough 9230 2202 or 0427 713 101

Greens call on Government to block new coal mine in Sydney drinking water catchment after WaterNSW raises serious concerns

MEDIA RELEASE: 3 August 2018

The Greens NSW energy and resources spokesman Jeremy Buckingham today called on the NSW Government to step in and end the uncertainty over the Hume Coal project at Berrima in the Southern Highlands after WaterNSW raised numerous serious concerns about the impacts on Sydney’s drinking water catchment.

In a submission to the Planning Department, WaterNSW said that “the Hume coal project may significantly reduce the quantity of water in the Sydney catchment area and available for WaterNSW’s supply requirements.” WaterNSW also highlighted “several shortcomings in the EIS” including hydrogeological models which “likely underestimate the reduction in groundwater levels and baseflows”, “inappropriate” assessment of the neutral or beneficial test, “a lack of conservatism in predictions”, and concerns about coal dust emissions which are “likely to deteriorate water quality”.

“WaterNSW has made it clear that building a new coal mine is incompatible with ensuring the security of the drinking water supply for millions of people in Sydney and it is time for the Berejiklian Government to step in and stop this crazy project,” said Greens MP Jeremy Buckingham.

“The submission from WaterNSW is damning. The age of coal is over and we should not be putting digging up even more coal ahead of Sydney’s drinking water supply.

“It is clear that any genuine application of the ‘neutral or beneficial effect’ test, which is supposed to apply to all developments in the catchment, precludes the development of this coal mine. That should be the end of the story.

“The community are sick of the uncertainty and of a planning system which has no red lights so it is now up to the NSW Government to show some ticker and say no to Hume Coal,” Mr Buckingham said.

Contact: Jack Gough 9230 2202 or 0427 713 101

 

Greens expose Santos’ multimillion dollar CSG royalty loophole

MEDIA RELEASE: 1 August 2015

The Greens NSW water spokesman Jeremy Buckingham today accused the NSW Government of creating a loophole which has allowed Santos to avoid paying $3.68 million in royalties on the 4,250,938 gigajoules of gas supplied to Wilga Park Power Station in the four years to last month and millions more in the years ahead. The calculations to substantiate this assertion are below.

Last week Santos were granted approval to send all gas produced from 12 existing coal seam gas wells in the Pilliga to their Wilga Park Power Station for 1000 days under a ‘beneficial use’ exemption for gas exploration. The Greens refute Santos’ claim that this is genuine exploration.

“Gladys Berejiklian needs to explain why her government has created a loophole which allows Santos, and Santos only, to avoid paying millions of dollars in royalties,” said Greens Energy Spokesperson Jeremy Buckingham.

“Santos has clearly been given special treatment with a loophole in the regulations which allows them to avoid paying royalties when any similar new development would be required to.”

“The NSW Government and Santos should also drop the outrageous fiction that this is genuine gas exploration. Santos have been operating these wells for up to 8 years, they have submitted a detailed application for a commercial 850 well gas field and they have dodged the key question about how much more gas will be sent to the power station than would otherwise have been flared.”

“Santos were only seeking between one and three years to operate the Tintsfield and Dewhurst wells when they got approval in 2009 and 2013. They have now been operated these wells for between four and eight years and there is no justification for an additional 1000 days of testing. There was certainly no detail in the woefully inadequate development application from Santos that has just been approved. 

“This whole process stinks.  It is coal seam gas production by stealth and a multi-million dollar taxpayer subsidy to Santos.

“The Greens oppose coal seam gas as unnecessary, unwanted and unsafe.  We do not need a new fossil fuel in an age of climate change and competitive renewable energy technologies,” Mr Buckingham said.

Contact: Jack Gough 9230 2202 or 0427 713 101

Santos NSW CSG production and lost royalties

2014

(from 18 July)

2015 2016 2017 2018

(to 30 June)

Bibblewindi West (MSCF) 47,960 340,879 433,887 519,421
Bibblewindi East (MSCF) 233,194 844,192 755,588 572,383
Total (MSCF) 281,154 1,185,071 1,091,804 1,091,804
Converted to GJ (MSCF  = 1.0551 GJ) 296,646 1,250,368 1,151,962 1,151,962 400,000
East coast average wholesale gas price (ex. transmission costs) about $7 $7.60 $9.78 $9.19 $8.60
Estimate of well-head value $2,076,522 $9,502,796 $11,266,188 $10,586,530 $3,440,000
Total well-head value $36,872,036
Estimate of royalty (10% of well-head value) $207,652 $950,280 $1,126,619 $1,058,653 $344,000
Total lost royalties $3,687,205

 

  • Based on the previous Gas Price Trends Review 2015 report, the gas price for 2014 was about $7.
  • According to the ACCC Gas Inquiry 2017-2020 interim report from April this year the “range of producer prices for gas supply in 2018 under the more recent GSAs is between $8.60/GJ and $9.80/GJ”.

 

Under the exemption Section 28B of the Petroleum (Onshore) Act 1991, which allows the beneficial use of gas yielded through prospecting, it is left up to the regulations whether a royalty is payable.  The regulations were silent on this until 2016 and so no royalty was payable before then.  When the 2016 regulations brought in a 10% royalty for beneficial use (Section 16) the government put in a loophole which means that if the recovery and use is authorised by a relevant development consent granted under Part 3A, 4 or 5.1 of the Environmental Planning and Assessment Act 1979 before 18 December 2015 they don’t have to pay. Santos’ Wilga Park power station is the only project to which this loophole applies.

Timeline of Wilga Park development applications and modifications

  • On 18 July 2014 the Government approved an amendment to the Wilga Park Power station approval allowing the use of coal seam gas from existing or future wells within PAL 2 or PPL 3 at the Wilga Park Power Station.
  • Following concerns raised by the Wilderness Society, the Planning Department’s assessment report at the time specifically mentioned that Santos’ use of the gas from their test wells should not be open ended, saying:

“the Department is concerned to ensure that the resource appraisal period for carriage of gas from PAL 2 and its use at Wilga Park is not open-ended. It considers that a reasonable time period should be included in the modified approval to provide an upper limit for the use of gas gathered from wells within the PAL, before a modified approval for ‘petroleum production’ and a consequent PPL, is required for continued use.”

They then said that “Santos considered that an appropriate period for future resource appraisal was 3 years, from the date of any modification approval.”

And so, despite Santos seeking unlimited and open ended use of the gas in their application, the approval specifically restricted it to 3 years as so that it “is limited to a reasonable period”

1.4A Gas may only be received for use at the Wilga Park Power Station from wells located within Petroleum Assessment Lease 2:

a) for a period of 3 years from the date of approval of Modification 3, in the case of any existing well; and

b) for a period of 3 years from the date of commencement of such receipt, in the case of any well which is drilled following the date of approval of Modification 3.

Note: The purpose of this condition is to ensure that the supply of gas to the power station arising from gas flow appraisal at exploration and/or appraisal wells is limited to a reasonable period. Supply of such gas to the power station from wells located within a Petroleum Assessment lease for longer periods would require further modification to this approval.

  • Santos then applied in August 2016 to expand this ability to use gas at Wilga Park so that it applied to all their “existing or future wells within PEL 238” –  they subsequently dropped this application.
  • In May 2017 they applied to scrap the 3 year limitation on use of the gas and extend it for another 3 years “to enable the ongoing use of natural gas extracted from coal seams in the Wilga Park Power Station whilst continuing to assess and appraise the gas.” This was approved in July 2017.
  • Santos then applied for a further extension of their beneficial reuse, along the lines of the withdrawn 2016 application, for gas “from the Tintsfield and Dewhurst South 26-31 pilot wells located within PEL 238.” The justification given for this increased use is to “increase the supply of gas available to the power station”.  This will mean Santos is able to extract gas from an additional 12 coal seam gas wells in the Pilliga without any Environmental Approval – essentially production by stealth.  This was approved on 23 July 2018.

Draconian anti-protest laws need to be repealed despite Wollar Three charges being dismissed

The Greens NSW resources spokesman Jeremy Buckingham today congratulated the ‘Wollar Three’ protesters – Bev Smiles, Stephanie Luke and Bruce Hughes – after serious criminal charges for obstructing a mining operations were dismissed for lack of evidence.  He called for the law to be changed so that the act of protesting against mining operations could not lead to a potential seven year jail term.

“I’m very pleased that the court has dismissed the serious criminal charges that these brave protesters faced, but the draconian anti-protest laws brought in by the Baird Government need to be urgently repealed as future cases may result in a significant injustice,” Greens MP Jeremy Buckingham said.

“While the prosecution failed to present enough evidence in this case to convict the protesters under the draconian anti-protest laws, it’s alarming the magistrate noted that a different charge of ‘interfering with equipment associated with the mine’, may have been interpreted far more broadly and resulted in criminal convictions.

“The lack of evidence also meant that the magistrate did not have to consider whether these anti-protest laws breach the implied freedom of political communication under the Australian Constitution.  This is still a live question that should be answered by the parliament by repealing these laws and guaranteeing the freedom of political communication – the right to protest.

“The Greens call on the Premier Berejiklian to listen to the legal experts who warned that these laws and associated penalties represented significant overreach. These laws are far too harsh and far too broad.

“Australians should have the right to express their views and protest projects they see as harmful to the humanity and the environment.”

The Big Lie: Calls for transition plan away from coal following T4 cancellation

MEDIA RELEASE: 31 May 2018

The Greens have welcomed the news that the proposal for a fourth coal loader at Newcastle Port has been cancelled and called on the government to use this as a catalyst to develop a serious plan for a just transition away from the coal industry.

Greens Resources and Energy spokesperson Jeremy Buckingham said:

“This is wonderful news. Reality is catching up with the great lie that we can continue to export coal in an age of climate change.

“The possibility that we might have yet another coal loader at the world’s largest coal port made a mockery of Australia’s commitments to action on climate change.

“The Greens call on the government to develop a transition strategy away from coal and will be making this a key election issue,” Mr Buckingham said.

Greens Newcastle City Councillor John Mackenzie said:

“This is fantastic news for our city.  T4 was part of the old Newcastle and the air pollution and heavy industry that it represents has no place in the modern emerging global city that Newcastle is becoming.

“From the outset the economics was against this, the science was against this and the community was against it but because of our broken planning system it was approved anyway.

“Cancellation of T4 means that we can now open up Newcastle’s port capability to more diversity rather than having it quarantined for a coal industry that is on its last legs.

“Communities are sick of being placed in limbo by a planning system which has no red lights and a Government who won’t show leadership by refusing new fossil fuel projects at the outset,” Councillor Mackenzie said.

Contact:  Max Phillips – 9230 2202 or 0419 444 916

John Mackenzie – 0408 533 010

Cancel or buyback gas exploration licences covering the Liverpool Plains

MEDIA RELEASE – 16 May 2018

NSW Greens energy and resources spokesman Jeremy Buckingham called on the government to cancel or buyback petroleum exploration licences (PELs) covering the Liverpool Plains after the resources minister Don Harwin admitted in Question Time that the PELs were connected to the Narrabri gas project proposed by Santos.

NSW Greens energy and resources spokesman Jeremy Buckingham said:

“The minister has let the cat out of the bag and confirmed what farmers have always fears – that the Narrabri gas project is the thin end of the wedge for coal seam gas across the region.

“It’s concerning that the Narrabri gas project may eventually expand to include coal seam gas wells on the Liverpool Plains.

“While Santos says it has ‘no plans’ to drill for gas in its exploration areas over the Liverpool Plains, the exploration areas are clearly connected and if the Narrabri project is approved they may become active exploration areas.

“The nature of unconventional gas is that it has to continually look for new gas wells to replace older wells. It moves across the landscape in a grid pattern.

“Farmers on the Liverpool Plains and elsewhere are right to be concerned that if the Narrabri gas project goes ahead, there area may be targeted for gas in the future.

“The government should give the farmers and community of the Liverpool Plains certainty and cancel or buyback these gas exploration areas.”

Video of the Question and Answer: https://youtu.be/lmO0vqOFsE4

LIVERPOOL PLAINS PETROLEUM EXPLORATION LICENCES

15 May 2018

Mr JEREMY BUCKINGHAM ( 16:23 ): My question is directed to the Minister for Resources, and Minister for Energy and Utilities. Six petroleum exploration licences cover part of the iconic Liverpool Plains. Given that at Santos’ recent annual general meeting its chief executive officer Kevin Gallagher told farmers that Santos has no plans to drill the wells in the Liverpool Plains but it cannot excise those parts of its licences that cover the Liverpool Plains and that it is something it will have to live with, will the Government provide certainty to the farmers of the Liverpool Plains by cancelling or buying back the parts of the petroleum exploration licences that cover the Liverpool Plains and permanently rule out gas extraction in this area?

The PRESIDENT: Order! I call the Hon. Rick Colless to order for the first time.

The Hon. DON HARWIN (Minister for Resources, Minister for Energy and Utilities, and Minister for the Arts) ( 16:24 ): I thank Mr Jeremy Buckingham for his question. As he indicates, those licences do have a connection with the Narrabri project that is currently being investigated by Santos. The Santos-Narrabri project and its associated environmental impact statement [EIS] were lodged on 1 February 2017 and exhibited between February and May last year. It is a matter of public record that the EIS attracted a large number of submissions from the community and Government—the highest number of submissions ever received for a publicly exhibited EIS.

On 13 April, just a few weeks ago, the Department of Planning and Environment received Santos’ formal response to submissions for the project. The department is currently reviewing the response to submissions, which will be thoroughly considered by the department on its merits under legislation and New South Wales Government policy guidelines alongside the EIS. The application is currently progressing through a system of processes under the State significant development provisions of the Environmental Planning and Assessment Act. I am sure Mr Jeremy Buckingham would be aware that the development assessment process is being handled by the Minister for Planning, but there are clear project benefits from the Narrabri—

Mr Jeremy Buckingham: Point of order: My point of order relates to relevance. I do not believe the Minister is being genuinely relevant to the question which related to petroleum exploration licences over the Liverpool Plains. The Narrabri gas project is a distinct project. I asked a question about petroleum exploration licences [PELs] and not about the Narrabri gas project. The Minister has talked only about the Narrabri gas project. I ask that he be drawn back to the substance of the question.

The PRESIDENT: I will look at the question. I thank Mr Jeremy Buckingham for his point of order. I believe that the Minister is being generally relevant. The Minister has the call.

The Hon. DON HARWIN: The project can deliver on the Government’s priorities for a secure, reliable and affordable gas supply for the residents of New South Wales within the current market and related gas supply framework. It can provide a mid-to long-term domestic gas supply in New South Wales. It can also offer certainty to wholesale and retail customers in the short term by providing insulation from price shocks. It will have the capacity to generate up to 50 per cent of the State’s gas supply at peak production, or 200 terajoules a day for more than 25 years. I visited the site of the project and some of the wells that have been dug. I spoke to people in the community who are concerned about the project and I met with a range of groups in the Narrabri community. There is extremely strong support for the Santos-Narrabri gas project in the town of Narrabri. The community understands what this project is worth to the town. It also understands the royalties and what that would mean for the State Government.

The PELs surround the Narrabri Gas Project. Nevertheless, the project and what is affected is dealt with by the EIS. While the project is in the development assessment phase, I am not proposing to take any action on the PELs until that process is concluded. I note that the PEL that covers the area south of Gunnedah— [Time expired.]

Mr JEREMY BUCKINGHAM ( 16:30 ): I ask a supplementary question. Will the Minister elucidate his answer about his comment that the petroleum exploration licences over the Liverpool Plains were “connected to the Narrabri Gas Project” by informing the House how they are connected to the Narrabri Gas Project?

Canavan ignorant of technology and climate. Coal should be phased out in a decade

MEDIA RELEASE – 28 March 2018

NSW Greens energy and resources spokesman Jeremy Buckingham today labelled federal resources minister Matt Canavan ignorant on disruptive technology and negligent on climate change as Canavan sets up a panel to push more fossil fuel mining in Australia.

“Pushing coal mining in an age of climate change and cheap, mature renewable energy is not only negligent, but is like advocating fax machines in the age of the internet,” said Greens MP Jeremy Buckingham.

“The science very clearly says that 90% of coal must remain in the ground if we are to have even a 50% chance of keeping global warming under the two degree target that Australia signed up to at the Paris climate summit.

“The Greens want coal mining in NSW phased out within a decade. That is the only path to preventing runaway climate change.  That’s not hyperbole,  that is unfortunately the physical reality we face.

“Rather than ignorantly promoting polluting fossil fuels, Australian governments should be working on transition packages to rapidly transition our energy system to renewable energy and to transition mining dependent communities to other economic sectors.

“History is full of disruptive technologies rapidly replacing existing technologies. The motor vehicle and the horse and cart, film and digital cameras, sailing ships and steam ships, mobile phones, computers, and it is clear that renewable energy, which is rapidly decreasing in price and does not pollute the atmosphere is a disruptive technology that is spreading very fast.

“To tie the Australian economy to the extraction of fossil fuels and runaway climate change is a shockingly bad move from a government that is failing on climate change and lacks a sensible energy policy.”

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