Last week the energy company announced they will undertake a “comprehensive review” into their  operations in the area, along with the early retirement of group general  manager, Mike Moraza.

The review will encompass the management structure and the operational and management practices required to position the business to deliver on its goals of safely exploring for and producing gas resources for AGL’s customers.

The Department of Energy and Resources, and the Environmental Protection Agency (EPA) are also conducting an investigation into AGL’s activities after closing down its Gloucester test drilling site.

They are looking into irregular test results and complaints over the treatment of waste water.

AGL’s exploration activities in the Hunter Valley began in late 2005, when they entered into a joint venture with Sydney Gas Limited (SGL) which was exploring for gas in PEL 4 and 267.

These PELs cover much of the Hunter Valley, an area from the outskirts of Newcastle in the south through to Scone and Merriwa in the north.

In April 2009, AGL assumed 100 per cent ownership and operatorship of the PELs after the acquisition of SGL.

Since acquiring the PELs, AGL has continued to explore for gas in a number of prospective areas, including the Broke Fordwich wine growing region.

A move that has been met with some stiff opposition from local landholders concerned about the adverse environmental and health impacts associated with the controversial industry.

“I would like to think they are doing the right thing but so far they have not given us any reason to believe so,” Mrs Brown says.

“When completing their Environmental Impact Statement (EIS) they did not consult with the local community and made claims such as there is no significant agriculture or population in the area.”

“Two years ago they attempted to sneak during the Christmas period and start to take a core sample across the road from my shiraz block.”

Hunter Valley Protection Alliance’s Graeme Gibson says they have always had difficulty dealing with Mr Moraza and that hopefully now AGL will listen to the community.

“AGL doesn’t appear to have had any cohesive or coordinated plan regarding its activities and has continually breached licence conditions and appears to have, a crash through or crash mentality, showing that it has no real idea what it is doing and without any plans for the disposal of hundreds of millions of litres of contaminated fracking water, salt and other contaminants,” he says.

“AGL has a lot of ground to make up if it is to be trusted by the general community and also by the scientific community. 

“It has a lot of science to study. It has to comply with all the recommendations of the Chief Scientist. 

“It has to immediately cease its activity in areas of prime agricultural land, in the vineyards, in the Gloucester Valley and in the horse breeding areas of the Upper Hunter.”

He says the company must realise in its review that it is counter-productive to pursue these areas.

“They should leave the Critical Industry Clusters (CICs)  alone and acknowledge that co-existence with Wine Tourism regions is not possible; stay well away from water ways, artesian basins, aquifers, and all quality agricultural land.”

We also need the state government to amend the CIC’s so the whole Broke/Fordwich region is one contiguous area, he says.

AN AGL spokesperson says they believe agriculture and coal seam gas projects can co-exist. 

“As it is, we have long-held landholder agreements with a number of cattle farmers both in Gloucester and Camden.

“AGL was open with the Hunter Consultative Committee last year that we have been, and still are, reviewing our project plans in light of the critical industry clusters and residential zones. 

“AGL’s current exploration activities, such as groundwater monitoring around Broke and Bulga, have the necessary approvals in place for this work to continue.

“There’s a lot of talk locally about the economic pressures the Hunter is currently facing and the AGL Hunter team is looking at ways to develop our project to bring employment and other benefits to the local community.

“AGL produces award-winning wines at Spring Mountain and Yellow Rock vineyards that have coal seam gas wells on the properties so we do not believe that there is any threat to prime agricultural land.”

Barbara Brown says she does not understand why the oldest wine growing region in Australia is not protected.

“All the other regions, like the Barossa Valley in South Australia and Margaret River in Western Australia, are.”