MEDIA RELEASE – 5 January 2012
The Greens NSW spokesperson on mining Jeremy Buckingham has hit back at Santos’ claims on coal seam gas royalties saying Santos spokesperson Matthew Doman claims where either disingenuous or highlights a lack of understanding of the financial contribution resources projects make to governments and communities, after he told Sky Business yesterday that Santos would start paying royalties once they entered the production phase.
In NSW there is a royalty holiday for the first 5 years of production. In the 6th year a royalty rate of 6% applies, rising 1% per year to 10% from the 10th year onwards.
Mr Dorman told Sky News “That’s right, you pay royalties once you enter the production phase”, omitting the very important fact that there is a five year royalty holiday for petroleum products in NSW where the Pilliga project is located.
“Santos are trying to spin their way out of the fact that NSW taxpayers will be ripped off in terms of the return they’ll get for the exploitation of this gas resource. Yet it is the community that will bear the risks to water, agriculture and the environment,” said Greens MP Jeremy Buckingham.
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