The Queensland government could have avoided the legal action it is facing after shutting down an underground coal gasification (UCG) project, an industry body says.
Three Queensland bureaucrats are being sued for shutting down Cougar Energy's $550 million UCG project at Kingaroy in the state's south-east after a cancer-causing chemical was found in a monitoring bore on the site.
The Australian Syngas Association (ASA), which represents UCG companies as well as those which use gas-to-liquid (GTL) and coal-to-liquid (CTL) technology, says these industries are overregulated compared with coal seam gas (CSG) mining, and the decision to shut down Cougar's project could have been premature.
"The regulations are applied to us somewhat more rigorously than they are to other operations," ASA executive director Paul Clauson told AAP on Tuesday.
9Nine News
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