Risk Assessment:

Coal seam gas production close to a residential area in the Scenic Rim, Queensland

Risk Assessment:

Coal seam gas production close to a residential area in the Scenic Rim, Queensland

Background

Coal Seam Gas (CSG) has an operational record of about two decades in Queensland and since the mid-1990s it has grown to become the dominant source of gas, supplying more than seventy five per cent of the Queensland market (Queensland Government). The number of wells drilled annually has increased from ten in the early days of exploration i.e. in the early 1990s to more than 720 in the year 2011-2012. Exploring and developing of coal seam gas is an activity that is given a lot of importance by the government while since 2008, there interest can also be found in using the CSG resources of Queensland for the production of Liquefied Natural Gas (LNG) for exporting it since there is a growing demand of gas resources in the international world. Hence 3 LNG projects for the purpose of export are under construction which will employ the Queensland CSG resources. One of the three projects will be operational soon with the first export shipment expected to be in 2014 (Department of Natural Resources and Mines).

Coal seam gas is accessed from wells, while in some cases it is drilled down along the coal seams. The process removes a large amount of underground water so that the gas is released and also involves many other risks and hence, the Scenic Rim Council has asked the Queensland Government to ban the exploration of coal seam gas in the region. According to the Mayor, these activities have the potential to threaten the region's natural assets and industries, and thus, for the sake of future generation, the prospecting, mining and exploration needs to be banned (Kane, 2011). Arrow Energy, the company that has the permits of extracting coal seam gas in the Scenic Rim has announced of drilling 4 locations in the region by the end of the year. The area residents are therefore concerned over the risks that might be posed to them because of this activity in their area.

Hazards

Production of unconventional gas such as that of CSG, adds to the many demands that humans make on the environment. It is clear that such an exploration will have many potential hazards and will impact significantly the long-term function and value of vital renewable natural resources and ecosystems. There are various hazards that the extraction of coal seam gas can bring to the area such as harming the water tables, the environment and the health of those living around the wells while water and air contamination because of the fugitive emissions are other hazards that the activity brings along. Fraccing chemicals and waste water held in ponds from where it may evaporate into the atmosphere and be inhaled is another hazard to the health of the people living in the vicinity of wells for CSG extraction.

The biggest concern with regard to coal seam gas to landholders ...