DERM to issue a new notice of environmental evaluation to Cougar Energy

The Department of Environment and Resource Management will be issuing Cougar Energy with a new notice for an environmental evaluation for the company's Underground Coal Gasification Plant, near Kingaroy.

DERM Director-General John Bradley said the new notice would require Cougar Energy to supply information the company failed to provide in response to their original notice, as well as additional information relevant to the contamination incident on the site earlier this year.

Mr Bradley said the new notice follows a meeting senior departmental staff held with Cougar Energy last Friday, to outline why the company's original environmental report submitted last month did not meet the requirements of the Environmental Protection Act 1994.

"Cougar Energy was previously directed to investigate the source, cause and extent of groundwater contamination resulting from its operations and to provide a report on this investigation to government," Mr Bradley said.

"A broader level of sampling and analysis required under the new notice will help confirm information that Cougar Energy has previously provided about the consequences of the incident on surrounding groundwater.

"A thorough risk assessment of all aspects of the company's operations, as well as measures in place to manage these risks, will be included as a requirement of the new notice."

Action required of the company under the new notice includes:
* at least four additional monitoring bores will need to be installed, with sampling and analysis to be undertaken from the additional bores;
* a further technical review must be undertaken of hydro-geological information previously provided about the distribution and movement of the groundwater at the site;
* a thorough assessment on the "root causes" of the failure of the well will have to be carried out and reported to DERM.

Mr Bradley said this new notice is further to the notice DERM issued on 17 July 2010.

"Cougar Energy has committed to providing all the materials requested at the meeting for its forthcoming environmental evaluation report," he said.

"The company is still required to satisfactorily investigate the source, cause and extent of groundwater contamination resulting from its operations at Kingaroy and to provide a report on this investigation to the department."

Climate Change and Sustainability Minister Kate Jones said she hoped the forthcoming environmental report would provide answers that the department and the Kingaroy community needed and expected from Cougar Energy.

"In the meantime, Cougar Energy's Environmental Protection Order still stands," Ms Jones said.

"The operations will remain shut until DERM reviews its decision, and this will not occur until Cougar Energy provides all the material which is required by law.

"The company's operations will remain suspended until the department is satisfied that the company can meet all regulatory requirements.

"Our job is to ensure that every mining company, no matter who they are and no matter what activity they undertake, assesses and manages the risks of its activity.

"The safety of the community and the environment remains our priority."

Ms Jones said separate investigations to determine whether the company has breached environmental protection legislation are continuing.

Minister for Climate Change and Sustainability
The Honourable Kate Jones
06/09/2010

Permanent Link: DERM to issue a new notice of environmental evaluation to Cougar Energy
Publish Date: 07 Sep 10