THE NSW government could lose hundreds of millions of dollars in royalties as mining companies seek to capitalise on a tax concession that sees them avoid paying any royalties for the first five years of coal-seam gas production.
The federal government's concerns that the coal-seam gas industry has grown too quickly are in direct contrast to the NSW government's policy of encouraging rapid expansion.
Under NSW law, coal-seam gas companies pay no royalties on gas extracted during the first five years of production, and are charged discounted rates for a decade after commercial production begins.
The law, passed by the NSW government in the early 1990s to attract players to the infant industry, has been strongly criticised by the NSW Farmers Association.
The Australian
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