NSW chief scientist Professor Mary O’Kane’s final report into coal seam gas (CSG) activities says the risks associated with exploration and production of CSG can be managed.
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But the reports states drilling should only be allowed in areas where geology and hydrogeology can be characterised adequately.
It also calls for appropriate engineering and scientific solutions to be in place to manage the storage, transport, reuse or disposal of produced water and salts.
Released yesterday the review was commissioned by the former Premier Barry O’Farrell in February 2013 during a period of what the report says was community unease about CSG extraction.
That unease has not lessened over time and the ‘Final Report of the Independent Review of Coal Seam Gas Activities in NSW’ acknowledges those community concerns saying environmental impacts and impacts on human and animal health were among the major worries raised by stakeholders during the review process.
The report clearly states there are risks associated with the CSG industry and calls for risk management to be improved to reach best practice.
“Management of potential risks associated with CSG, as with other industries, requires effective controls; high levels of industry professionalism; systems to predict, assess, monitor and act on risk,” the reports says.
The major theme of the report is the need for the CSG industry in concert with government and regulatory bodies to ensure the industry adopts best practice and the latest technology to minimise risks.
“All industries have risks and like other industries, it is inevitable that the CSG industry will have some unintended consequences, including as the results of accidents, human error and natural disasters.
“Industry, Government and the community need to work together to plan adequately to mitigate such risks and be prepared to respond to problems if they occur.”
With this in mind among the 16 recommendations contained in the report is a call for a robust and comprehensive policy of appropriate insurance and environmental risk coverage of the CSG industry including having a three layered policy of security deposits, enhanced insurance coverage and environmental rehabilitation fund.
Another recommendation is the need for the government to designate those areas of the state in which CSG activity is permitted.
There is also a call for the establishment of an expert advisory body on CSG but also possibly extended to cover all extractive industries which would among other things look at the cumulative impacts at project , regional and sedimentary basin scales.
This body could also investigate whether or not unconventional gas extraction (shale gas, tight gas) should be allowed to proceed.