Santos, which is among 15 companies exploring and testing for coal seam gas (CSG) in NSW, says criticism of the industry is based on misconceptions.
Santos has interests in nine exploration licences in the Gunnedah Basin which cover about 22,000 square kilometres across the Gunnedah, Coonabarabran, Scone, Quirindi and Boggabri districts.
Late this year it began pilot testing at two sites with well heads and surface installations on private land near Caroona and Mary’s Mount, drilling up to 315 metres below the surface.
Santos spokesman, Sam Crafter, said CSG already accounted for about 80 per cent of Queensland’s gas supply and the technology had been proven over 15 years, with present progress representing “an unparalleled economic opportunity that is expected to generate up to 18,000 jobs in Queensland.
He maintained that NSW had the potential to follow the same path.
Mr Crafter said the CSG industry was spending “many millions of dollars carrying out the studies and assessments required to deliver a safe and sustainable industry that can operate alongside landholders, and risks of adverse impacts on groundwater were “very unlikely”.
Santos has partnerships with Australian Coalbed Methane and Macquarie Energy and in July, 2009, it acquired “significant additional acreage” and invested in CSG company Eastern Star Gas (ESG); combined permits between the two companies cover an area of about 63,000 square kilometres.
While Santos has NSW Government approval to explore for coal seam gas it has not yet applied for approval for commercial extraction of gas.
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