In a dramatic turn of events, the NSW government has suspended AGL’s licence to operate its Waukivory Pilot Project to mine coal seam gas (CSG) in Gloucester, pending the result of an investigation launched on January 28.
The suspension came just a day after AGL said it was "voluntarily" suspending work at the site after it had detected banned carcinogenic benzene, toluene, ethylbenzene and xylene (BTEX) chemicals in flowback water from two of the four wells and an above-ground storage tank.
In a statement to the stock exchange on January 27, AGL attributed the presence of the toxic chemicals to natural sources. It said “none of the hydraulic fracturing fluids used at Waukivory contained any of the BTEX components”.
“The BTEX detected in the samples is most likely to be naturally occurring, from within coal seams located at an average depth of approximately 600 metres and brought to the surface as part of the flowback of water from the hydraulic fracturing process.”
The Environment Protection Authority (EPA) was disturbed that it had not been informed of the BTEX chemicals in the samples when the company first knew about it on January 15.
The EPA's chief environment regulator, Mark Gifford, said on January 27 his agency was "very concerned at AGL’s lack of timeliness and transparency in informing us of these results and we will be conducting a full investigation".
The government has dispatched investigators from the Division of Resources and Energy (DRE) and the EPA to inspect the four CSG wells.
Energy Minister Anthony Roberts said the investigation would be "a priority" for the department. He also confirmed that the company would be able to continue work to ensure the safety of the well during the suspension of its licence.
He said: “It is appropriate that operations at the Waukivory Pilot Project site remain suspended while all the facts are gathered by DRE investigators.
"BTEX has previously been identified in baseline groundwater tests carried out before the commencement of the Waukivory Pilot Project. The use of BTEX chemicals was banned by the government in coal seam gas fracture stimulation in 2011.”
However, the ban on BTEX chemicals in fracking fluid is irrelevant if they are naturally occurring where drilling takes place. The chemicals are buried safely deep underground. It is the drilling and fracking of the ground that brings them to the surface. It is far safer to just leave them there.
The suspension of the Gloucester pilot project has been welcomed by groups opposed to CSG mining.
John Watts, a Groundswell Gloucester spokesperson was reported in the Sydney Morning Herald as saying: "We congratulate Minister Roberts on finally having the courage to suspend AGL's operations. However it is vital that this be seen as only a first step leading to licence cancellation.
"The disturbing disclosure about BTEX chemicals is simply the latest in a series of events which have shown the folly of allowing AGL to frack in the beautiful Gloucester Valley."
Regional coordinator for Lock The Gate Steve Phillips said: “AGL's alarming pollution monitoring results in Gloucester highlight the risk fracking poses to our precious water resources.
“Chief Scientist Mary O'Kane warned the Baird government that many unanswered questions remain about the risk coal seam gas fracking poses to our land, water, and communities. But the government allowed drilling to continue in Camden, Gloucester and Narrabri, and pushed ahead with a flawed Gas Plan that failed to implement many of the Chief Scientist’s recommendations. Today, the NSW Gas Plan is in tatters.
"Communities throughout NSW are alarmed at what's happening in Gloucester and will now redouble their efforts to protect land and water in the lead up to the NSW election.
“We call on Premier [Mike] Baird to freeze all coal seam gas activities in NSW until there has been a full investigation into BTEX detection at Gloucester and until the Chief Scientist’s recommendations have been fully met.”
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