The State Government today announced plans to boost environmental protections and potentially help secure water supplies for communities in the Surat and Bowen basins.

Deputy Premier Paul Lucas said Cabinet had endorsed a proposal to strengthen disposal requirements for water generated when mining companies extracted gas from underground coal seams.

"In the Surat Basin alone coal seam gas (CSG) production for domestic purposes could produce an average of 25 gigalitres of water every year for the next 25 years, or about 3 times Toowoomba's annual consumption," said Mr Lucas.

“Over the next quarter of a century that would equate to roughly one and a quarter times the volume of water in Sydney Harbour.

“The Bligh Government wants this water to become a valuable resource for environmental, agricultural, industrial and, possibly, domestic benefit rather than being simply wasted as a byproduct.

“Some companies extracting CSG now store this water in large ponds up to 100 hectares in area – the same size as 100 football fields – and simply allow it to evaporate.

“Like many Queenslanders, I think this is such a waste and it leaves behind high concentrations of salt and minerals that can destroy the land.

“Using modern technology such as reverse osmosis treatment plants to clean the CSG water would allow for more environmentally friendly disposal and provide a valuable new source of water.

“Potentially, mining companies could enter into commercial arrangements with regional councils or industry to supply reliable treated water.

“We don’t expect that this will fix water supply issues in central and western Queensland.

“Supplying coal seam gas water to towns across central and western Queensland could involve substantial costs because of long transport distances.

“But we want to make sure regional towns get every chance to make use of this water.

“I appreciate there is a cost to producers but the opportunity to turn unwanted salt water into treated water that can actually be sold is a win-win for the environment and makes good business sense.

“And already some Queensland CSG producers have moved towards treating their water or putting it to beneficial use, for example Origin Energy and Arrow Energy.”

Mr Lucas said under the plan companies extracting CSG would be required to meet higher standards for its treatment and look at options for beneficial water use.

Key features of the plan are that:

·Evaporation ponds are to be discontinued as the primary means of disposal of CSG water. Remediation of existing evaporation ponds is to occur within three years.

·CSG producers to be responsible for treating and disposing of CSG water. Unless producers are using CSG water, they will have to treat water to standards determined by the Environmental Protection Agency before disposal or supply to other users.

·Ponds used for water balancing or brine management purposes will now have to be fully lined to a standard determined by the EPA.

·An ‘Associated CSG Water Management Plan’ is to be incorporated into the environmental management plan required by the EPA.

·Water excess to that which can be injected underground or beneficially used will have to be piped elsewhere or disposed of without the use of ponds.

“From now on, ponds will only be approved if they are required as a part of a water treatment facility,” said Mr Lucas.

“Our policy will discourage mining companies from using ponds for evaporation.

“And if they are used, all processing ponds must be lined to prevent soil contamination from salt and minerals.

“Untreated water can be reinjected into the earth under strict guidelines, used for industry such as in coal washing or treated to become usable water.”

“Queensland is blessed with massive reserves of high quality coal seam gas.

“At the end of 2007 Queensland had 7050 petajoules identified reserves of CSG, nearly 13 times the amount of the state’s convention gas supplies.”

A discussion paper outlining the issues and highlighting areas where government wishes to consult further will be sent to stakeholders and made available on the Department of Infrastructure and Planning website, www.dip.qld.gov.au/coal-infrastructure.

In coming months industry will be asked for feedback on ways to remediate existing ponds and dispose of CSG water which is unable to be used beneficially.

Media inquiries: Matthew Klar 0437 435 223

“Over the next quarter of a century that would equate to roughly one and a quarter times the volume of water in Sydney Harbour.

“The Bligh Government wants this water to become a valuable resource for environmental, agricultural, industrial and, possibly, domestic benefit rather than being simply wasted as a byproduct.

“Some companies extracting CSG now store this water in large ponds up to 100 hectares in area – the same size as 100 football fields – and simply allow it to evaporate.

“Like many Queenslanders, I think this is such a waste and it leaves behind high concentrations of salt and minerals that can destroy the land.

“Using modern technology such as reverse osmosis treatment plants to clean the CSG water would allow for more environmentally friendly disposal and provide a valuable new source of water.

“Potentially, mining companies could enter into commercial arrangements with regional councils or industry to supply reliable treated water.

“We don’t expect that this will fix water supply issues in central and western Queensland.

“Supplying coal seam gas water to towns across central and western Queensland could involve substantial costs because of long transport distances.

“But we want to make sure regional towns get every chance to make use of this water.

“I appreciate there is a cost to producers but the opportunity to turn unwanted salt water into treated water that can actually be sold is a win-win for the environment and makes good business sense.

“And already some Queensland CSG producers have moved towards treating their water or putting it to beneficial use, for example Origin Energy and Arrow Energy.”

Mr Lucas said under the plan companies extracting CSG would be required to meet higher standards for its treatment and look at options for beneficial water use.

Key features of the plan are that:

·Evaporation ponds are to be discontinued as the primary means of disposal of CSG water. Remediation of existing evaporation ponds is to occur within three years.

·CSG producers to be responsible for treating and disposing of CSG water. Unless producers are using CSG water, they will have to treat water to standards determined by the Environmental Protection Agency before disposal or supply to other users.

·Ponds used for water balancing or brine management purposes will now have to be fully lined to a standard determined by the EPA.

·An ‘Associated CSG Water Management Plan’ is to be incorporated into the environmental management plan required by the EPA.

·Water excess to that which can be injected underground or beneficially used will have to be piped elsewhere or disposed of without the use of ponds.

“From now on, ponds will only be approved if they are required as a part of a water treatment facility,” said Mr Lucas.

“Our policy will discourage mining companies from using ponds for evaporation.

“And if they are used, all processing ponds must be lined to prevent soil contamination from salt and minerals.

“Untreated water can be reinjected into the earth under strict guidelines, used for industry such as in coal washing or treated to become usable water.”

“Queensland is blessed with massive reserves of high quality coal seam gas.

“At the end of 2007 Queensland had 7050 petajoules identified reserves of CSG, nearly 13 times the amount of the state’s convention gas supplies.”

A discussion paper outlining the issues and highlighting areas where government wishes to consult further will be sent to stakeholders and made available on the Department of Infrastructure and Planning website, www.dip.qld.gov.au/coal-infrastructure.

In coming months industry will be asked for feedback on ways to remediate existing ponds and dispose of CSG water which is unable to be used beneficially.

Media inquiries: Matthew Klar 0437 435 223