GRAINGER Energy is considering appealing the NSW Government’s refusal of their application for petroleum exploration licences in the NSW Riverina.
Grainger Energy submitted an application late last year for five separate exploration licences to search an area of about 43,000 square kilometres, including parts of the Balranald and Wakool municipalities, for gas and petroleum deposits.
Local property owners were apprehensive at the potential of coal-seam gas in the area, citing unknown environmental impacts — such as effect on groundwater — among their top concerns.
The NSW Government also announced plans to freeze the processing of new petroleum exploration licence applications (PELAs) and audit existing licences and applications.
Minister for Resources and Energy Anthony Roberts said the government decided Grainger Energy lacked “financial and technical capabilities to undertake the work program it has proposed”.
“Grainger Energy which has one owner/director, was formed just six days prior to lodging its application, has no history of conducting petroleum exploration activities and has submitted a manifestly deficient application,” Mr Roberts said.
“The Office of Coal Seam Gas has found that the proponent (Grainger Energy) does not have a technical understanding of the existing geological information in the region, has provided scarce work programs that are not sufficient to effectively explore the large areas covered by the application and that the proponent has significantly underestimated the costs of the work program that they have proposed.”
Member for Murray-Darling John Williams also weighed in on the debate, commending the government’s decision to freeze PELAs.
“The O’Farrell-Stoner Government is sending a very clear message that only reputable operators are wanted in NSW — speculators and cowboys need not apply,” Mr Williams said.
Grainger Energy spokesperson Emma Montgomery said the company had been told it had “satisfactorily addressed” the criteria under the Petroleum Onshore Act.
However, she said Mr Roberts’ comments to the media following the refusal had not reflected this.
The announcement came before the company had the chance to respond to public comment on the application, Ms Montgomery told The Guardian.
For the full story, pick up a copy of Friday’s Guardian (March 28).
