Australia has vast Coal Seam Gas (CSG) reserves offering the potential for cleaner and more cost effective energy supplies both for domestic use and as a valuable commodity for export.
However, concerns around the extraction process, including wastewater, the depletion and pollution of aquifers, fracking and the chemicals associated therewith and the impact on other land uses (including farming), make CSG extraction in New South Wales very controversial.
Addressing these concerns is critical to the short and long term success of the CSG industry and to the protection of the environment and landholders’ rights. A discussion of the science and processes associated with CSG extraction is beyond the scope of this paper and, no doubt, will continue to be debated for some time to come. This article will focus on:
• the legal regime governing the granting of exploration licences; and
• access arrangements between the gas companies (licence holders) and the landholders for prospecting and exploration.
Paton Hooke Lawyers
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