The mining company planning to drill for coal seam gas in St Peters holds a gas exploration licence that covers nearly all of suburban Sydney and may expand its operations to other parts of the city.
Apollo Gas told the stock exchange the factor determining where it would drill was a report to be released in the next few weeks by the City of Sydney, outlining plans for gas-driven ”trigeneration” energy plants.
”The master plan may indicate to Macquarie Energy numerous other sites rather than the St Peters site, as preferable for exploration activities,” the managing director, Andrew Mayo, said in a statement to the ASX.
Moves to expand beyond the proposal for one drill hole in St Peters would involve ”broad community consultation”, he said.
”Ultimately, it is the decision of the community and its leaders to decide whether or not to utilise this resource beneath the city.” There are big coal seams containing coal seam gas several hundred metres underground stretching from the city to the Hunter Valley.
Apollo Gas, via a subsidiary, Macquarie Energy, was granted petroleum exploration licence 463 in October 2008, allowing it to prospect across the region. The licence covers 3285 square kilometres - most of greater Sydney - from Kurnell to Gosford and west to Eastern Creek.
But the terms of the licence say Apollo must not drill or prospect within 200 metres of inhabited houses or within 50 metres of gardens or orchards, without written consent from the owners, the Department of Industry and Investment said. This means any drilling will probably be confined to less populated areas.
The St Peters site, an open area south of Sydney Park and alongside Alexandra Canal, is mostly surrounded by unoccupied industrial buildings. Drilling would involve a mobile drill rig, about the height of a telegraph pole, and trucks to move water and chemicals used in the drilling process in and out of the site. The government said the operation would be subject to ”stringent environmental checks”.
Environmental groups and the Greens said the development should be halted and a wider public debate take place.
”Any adequate coal seam gas process requires dozens, if not hundreds, of wells,” said the Greens MP Cate Faehrmann. ”Sydney’s inner city, being a built-up area, is obviously completely inappropriate as a coal seam gas drilling area.”
The director of the Total Environment Centre, Jeff Angel, said a public inquiry into coal seam gas extraction was needed.
”The gas companies and their coal mining allies have very ambitious plans in and around Sydney about which they have not told the public,” he said.
