Coal seam gas approvals – Frequently asked questions: Australian Government

What is coal seam gas (CSG)?

Coal seam gas (CSG) is largely methane, but it may also contain small amounts of carbon dioxide and nitrogen.

Under the ground, CSG is trapped by water pressure in layers of coal, or coal seams. It is released by lowering the water pressure in the coal seam, by removing water.

Water taken out of the coal seam is sometimes called ‘coal seam gas water’ or ‘produced water’.

What are the environmental issues?

The environmental issues relevant to coal seam gas development largely relate to water. These include the following.

• Drawdown of groundwater from the coal seams, which are often deep (e.g. 400 – 800m below the surface). Related to this is the potential for impacts to aquifers and groundwater-dependent ecosystems.

• The use of coal seam gas water on the surface. Related issues include the management of salts which may be produced as a by-product of treating the coal seam gas water.

Further information on these issues can be found by following the links below, under the heading ‘Where can I get further information?’

What is the Australian Government's role?

Australia is a country with large reserves of coal seam gas, for which there is a local and global demand.

The Australian Government environment minister is responsible for assessing and making decisions on coal seam gas proposals if those proposals are likely to impact on matters protected under national environment law – the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act).

The Australian Government environment minister cannot intervene in a proposal if it is not likely to have a significant impact on a matter of national environmental significance, even though there may be other likely environmental impacts.

This is not because these other environmental matters are not important. It is because, under the division of powers between the Australian Government and the states under the Australian Constitution, it is the states that have the primary responsibility for environmental protection. In contrast, the Australian Government environment minister only has authority over defined matters of national environmental significance. The Australian Government environment minister also has authority over proposals taken on or that may impact on Commonwealth land, or actions undertaken by Commonwealth agencies.

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Department of Sustainability, Environment, Water, Population & Communities