Discharge water from coal-seam gas wells throughout southern Queensland will be released into the head of the Murray-Darling River system.
The gas well discharge is fuelling concerns about contamination following the discovery of more carcinogenic chemicals from exploration wells in the Surat Basin.
The discovery of BTEX chemicals in eight wells around Miles, about 700km west of Brisbane, adds pressure on Environment Minister Tony Burke, who will determine the fate of the controversial burgeoning industry in Queensland tomorrow.
Energy company Origin filed a statement to the ASX on Tuesday night in which it said that small traces of benzene, toluene, ethylbenzene, and xylene, a compound known as BTEX, had been found in eight exploration wells of 17 tested in its holdings near Miles on the western Darling Downs, about 350km west of Brisbane.
The wells are part of a joint venture between Origin and multi-national Conoco-Phillips known as Australia Pacific LNG. The company claimed the highest reading of the BTEX chemicals in any of the wells was 100 parts per billion, or the equivalent of half a cup in an Olympic swimming pool.
But the Queensland government has ordered independent tests, and the results of these are not expected before Mr Burke’s decision tomorrow.
Former environment minister Peter Garrett delayed approvals on the future of the industry until after the election following protests by environmental and farming groups.
Queensland’s peak farming body as well as the peak conservation group both immediately called for a moratorium on future development of the CSG industry yesterday in the light of the admission, but a spokesman for Mr Burke said yesterday that the timetable was unaltered.
Australia Pacific LNG general manager Paul Zealand said the company had reported the presence of the BTEX chemicals as soon as it became aware of them.
“I don’t think you can translate this event to a major industry problem. It’s a localised problem and we will take any action that the regulator says we should take.
“The community should have confidence in the processes we’ve put in place, as soon as there are issues we inform the regulator.”
The BTEX chemicals were found in water associated with the company’s exploration program rather than its production program, and as such the water was not released into the general river system or consumed by animals but was kept in a secure pond.
AgForce Queensland president Brent Finlay said there should be a moratorium on further development until the state and federal governments devised a comprehensive framework for the operation of the industry.
He said the growth of the mining industry in rural Queensland meant “the framework through which these industries are held accountable for their cumulative on-ground impacts is lacking”.
While the Queensland and federal governments are mindful of a possible backlash against the industry, it has economic pull, with the possibility of 18,000 jobs and investment of $40 billion and for the state government, an increase of $3bn in gross state product and $850 million in royalties each year.
