Oil and Gas News

LNP CSG proposal to benefit QLD landholders

AgForce and Queensland Farmers’ Federation (QFF) have joined the Australian Petroleum Production & Exploration Association (APPEA) in praising an initiative by the state opposition that would return unused coal seam gas (CSG) infrastructure to landholders.

The Queensland Liberal National Party (LNP) is proposing to offer landholders who host gas operations ownership of CSG assets if they so choose when the infrastructure is no longer required by the industry.

As a result, the three parties have made a joint submission to the state government requesting support for this approach to ongoing infrastructure use.

At the moment, the state government regulation prevents transfer of ownership without the surrender of partial surrender to ongoing infrastructure use.

APPEA reported that well-maintained CSG infrastructure could offer landholders who host mining operations a positive, long-term legacy.

“Given the construction quality of many of these assets which are built to commercial resources standards, they are potentially very useful and valuable to landholders,” APPEA outlined.

In addition, APPEA highlighted that the transfer of these assets must be transparent and ensure that farmers are aware of any associated obligations as well as any residual risk that the environmental regulator may impose.

AgForce, QFF and APPEA outlined that it made “no sense for gas companies to deconstruct and remove infrastructure like dams, roads, pipelines, fences and cattle grids as part of rehabilitation” if landholders can make good use of it.

“Around a billion dollars of high-quality infrastructure could become a significant asset for landholders after gas industry operations have concluded – it could be a potential game-changer for regional Queensland,” AgForce CEO Michael Guerin, QFF CEO Georgina Davis and APPEA Queensland director George Mayo explained.

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