Coal Seam Gas

Although the economic benefits from coal seam gas are substantial, the social opinions and negative environmental impacts override the revenue and a solution needs to be implemented.

Coal seam gas is one of the latest forms of non-renewable energies, displaying growth in the early 1990’s in Australia. Coal seam gas is found hundreds of metres beneath the earth’s surface in coal seam and is comprised mostly of methane. When coal seam gas is extracted from the coal seams, the underground water is extracted at the same time, and then separated at the surface as seen in Appendix 1. This water is then left sitting on the earth’s surface, left to evaporate into the atmosphere. The coal seam gas industry generates billions of dollars for the economy in Australia every year, making it a key component in the energy market for Australia’s economy. Whilst the economic benefits are extremely substantial, the negative effects of the mining of coal seams; the leftover water and contamination of the bore water, is extremely harmful and looked down upon by many organisations as well as the public. This report will explore the effects of coal seam gas on the economy and environment, opinions of the communities affected and what solutions can be implemented to benefit the environment.

Economic Impacts of Coal Seam Gas

The extreme revenue that is generated from the production of coal seam gas is the main reason the environmental impacts caused by the production CSG are ignored. In 2015, Australian Mining claimed “industry revenue from coal seam gas is expected to skyrocket by 148 per cent over the next year to reach $1.83 billion” (Validakis, 2015) in 2016. This increasingly large income demonstrates why these large business in the industry are so focussed on developing the CSG industry as large and expensive as possible, making them more powerful and extremely difficult to shut down. Queensland gas industry is responsible for over 40,000 jobs and currently employs more than 30,000 people (Natural Coal Seam Gas, n.d.). According to the APPEA, the “CSG industry would support 100,000 direct and in-direct jobs” (Zonca, 2014). If the industry was to be shut down, it would not only affect the company owners. Coal seam gas companies are also allowed to mine on any land they choose, although it must be at least 1 km from any housing communities. While some landowners are receiving up to $150,000 in royalties, this does not give them the land back that they paid for, or protect them from possible risks that are caused by coal seam gas. With the oil and gas industry representing 2% of Australia’s GDP, the coal seam gas industry is only growing and is expected to double its revenue by 2020 (Natural CSG, n.d.). These extremely beneficial economic impacts drive the industry to ignore other factors.

Environmental Effects of Coal Seam Gas

The environmental effects of the CSG industry are extremely detrimental yet ignored by the big mining companies. One of the biggest environmental detriments caused by coal seam gas is the vast amount of salt water left over from the hydraulic fracturing process used to retrieve the coal seam gas. According to Queensland Greens, there are 50,000 abandoned mines across the country (Lock the Gate, 2016). These 50,000 mines are walked away from by companies and the affected water sources and affected land are left sitting as seen in Appendix 4, which will effectively cost billions to repair. The overuse of water is evident in the production process of CSG as displayed in Appendix 2. The coal seam gas industry extracts 300 gigalitres of water from the ground each year in comparison to renewable energy forms such as solar and wind which use a significant lesser amount of water, as well as lower carbon emissions. In the next 25 years, 7,500 gigalitres will be extracted from the ground; 13 times the capacity of Sydney Harbour (Stop CSG Illawarra, n.d.). Whilst the salt water holding ponds are threatening the environment, a significant risk cause by coal seam gas mining is the contamination of the Great Artesian Basin. CSG mining is reducing the pressure in the underground reservoir through the pressurised water extraction, causing concern for the flowing water in the bores from Cape York to Coober Pedy (Ross, 2014). These mammoth environmental effects caused by the coal seam gas industry are effectively ignored due to the massive amounts of money created by the export and use of coal seam gas.

Social Aspects of Coal Seam Gas

While landowners do not get a say in whether they want mining on their land, this has not stopped farmers and locals that are affected taking a stand to gain the rights they deserve to their land. The “Lock the Gate” campaign was started in 2010 and is comprised of over 40,000 supporters (Lock the Gate, 2016). With such a large amount of support from the locals and surrounding communities, it is clear that the coal seam gas industry is completely comprised on the economic benefits. Home and landowners are also against the CSG industry as they are allowed to build the infrastructure for a coal power stations close as 1 km away from homes (refer to Appendix 3). This has caused uproar in communities as NSW Chief Scientist and Engineer stated there is not enough evidence to prove that coals seam gas production is safe to be near. These issues are the main reason farmers and landowners are heavily against the production of coal seam gas.

Although ideal, a complete shutdown of the coal seam gas industry is not realistic. A solution that is more accessible would be an implementation of a law in which mining companies are not allowed to mine on someone else’s land, not allowed to abandoned mines or leave their sodium effected water waste to sit and evaporate into the atmosphere.

Although the revenue brought in by the coal seam gas industry is extremely beneficial to the economic market, the environmental risks make it unsafe and destructive which is supported by the social opinion of locals and surrounding communities. The implementation of laws to support the community as well as the environment such as fines for abandoning destructive coal mines and not allowing mining companies to mine on land that is not theirs will implement support from the landowners, and benefit the environment without destroying the multi-billion dollar industry.

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