POLI3001

Group Assignment
The Coal and Gas Industry Association
Jason Gibb, Cynthia Hill, Matthew Daniell, Timothy Conway 5/10/2013

The government is proposing a ban on all new coal seam gas projects to protect farms and groundwater.

Executive Summary

What Is CSG? For clarification coal seam gas, commonly abbreviated as CSG, is a natural gas made up primarily of methane gas (around 90-97% pure CH4) along with small amounts of other gases, and is located and extracted from coal seams anywhere from 200 to 1000 metres underground. CSG is an unconventional gas, which means it is generally produced from complex geographical systems that prevent the migration of gas and require technological solutions in order to extract. (CSIRO, 2012) Process of Extraction In order to extract CSG, small diameter wells need to be drilled down into the dense geological rock layers called aquitards. Aquitards are found below what is called aquifers, which are porous and where water can easily flow. This geological layer is typically where farmers access their groundwater The aquitards below this are much denser and do not allow free passage for water found there. The coal seams where CSG are found are surrounded by aquitards. CSG is typically attached by adsorption in the coal seam and trapped in place because of the pressure exerted from both formation water that is unable to move and the less permeable sediment. After a hole is drilled to the required depth, steel casing needs to be installed and cement pumped to fill the space between the casing and the well bore. When the cement hardens it provides a barrier between the gas flow and outlying aquifers, with the aim being prevent cross contamination and to give a secure flow path. In the process known as 'fracking', a mix of water and chemicals is pumped at high pressure down the well and into the coal seam. This process creates a network of fractures in the coal, reducing the pressure and releasing the gas and water trapped inside. In some instances, gas companies will drill horizontally into the coal seam to increase access. As the water is then pumped out of the coal seam, the gas trapped inside is released and flows to the surface mixed with the water. They are then separated and sent for processing. The water is very salty and may contain toxic chemicals from the fracturing process, as well as those naturally present in the coal seam REWORD!!! FIND A SOURCE

Intent of the Policy/Issues Surrounding CSG A proposed ban on new CSG projects is obviously intended to appease farmers and environmental advocates, and also due to the huge debate over its sustanability and the harm it may be possibly be doing to the land. The intention of a policy of this sort is clear. In recent times the controversy and backlash against CSG has become unavoidable for governments, and they are clearly feeling the pressure from

disgruntled farmers, landowners, environmentalists and other anti-CSG organisations such as the Lock the Gate Alliance. Also, the potential impacts of CSG developments, especially the collective effects of
various large scale projects, are not well understood and there is real apprehension as to the impacts of CSG developments on water supply and land. Some of the more contentious concerns regarding CSG are as follows;

CSG development disrupting land owners current farming practices and the local environment due to construction of the needed infrastructure and access roads. Coal seam gas resources are not owned by the property owner but by the Crown, who can grant licenses which give access to these resources on private land to gas companies. (National Water Commission 2010) The impact of extracting large volumes of water from the water supply will have on sustainable water management. Extraction of CSG does require large amounts of water being removed from groundwater systems, which companies under the current policy are entitled to. The National Water Commission (2010) projections indicate the Australian CSG
industry could extract in the order of 7,500 gigalitres of co-produced water from groundwater systems over the next 25 years, equivalent to ~300 gigalitres per year. This much water being extracted could impact on surface and groundwater systems.

Impacts on other water users and the environment from the depressurisation of the coal seams including changes in water availability due to changes in aquifer pressure, reductions in surface water flows, land subsidence over large areas which can affect farming and irrigation,

Concerns regarding the large volumes of treated waste water that will be a by product of extraction. The water pumped from the ground during extraction is highly salty and can contain a range of other chemicals. Once at the surface the water needs to be stored, treated and desalinated. If the treated water is released to surface water systems it could affect natural flow patterns and water quality, and give rise to clean water pollution of turbid systems. Also reinjection of treated water into other aquifers has the potential to change their characteristics.

Significant concerns with the process of fracking. In a report from CEDA (2012) they stated that In addition to concerns over contamination of aquifers and groundwater quality from the chemicals added to fracking fluid, issues have also been raised about contamination of water supplies from fugitive gas after fracking, and seismic activity and tremors associated with the drilling and fracking process".

It seems the government has proposed this ban to hold off on new projects until further research and testing can be done regarding the existing infrastructure and development, and whether the concerns raised are viable or non-existent.

References CSIRO. 2012. What is coal seam gas? CSIRO. URL: <http://www.csiro.au/news/coal-seam-gas>. Consulted 4 March 2013. Lock The Gate Alliance. ??. About Coal Seam Gas. Lock the Gate Alliance. URL: <http://www.lockthegate.org.au/about_coal_seam_gas>. Consulted 6 March 2013. CEDA. 2012. Australias Unconventional Energy Options. Committee for Economic Development of Australia.URL: <http://ceda.com.au/media/263565/cedaunconventionalenergyfinal.pdf>. Consulted 6 March 2013. National Water Commission. 2010. The Coal Seam Gas and water challenge. National Water Commission. URL: http://nwc.gov.au/__data/assets/pdf_file/0003/9723/Coal_Seam_Gas.pdf>. Consulted 5 March 2013.