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Fracking – its caused something of a stir recently. The uncertainty about the long-term environmental effects of coal seam gas (CSG) extraction has many people calling for better industry regulation.
Most concerned of all are the farmers whose land is affected.
Coal seam gas is natural gas that gets extracted from coal seams beneath the grounds surface. Fracking means hydraulic fracturing – the process of injecting fluid into rock to make fractures, or widen existing cracks, so that the most gas can be extracted.
Much of the concern lies in whats in the fluid that gets injected. Its mainly water and sand, but there are also many other chemicals. If something went awry during the process, the fear is groundwater could be contaminated, with potentially hazardous consequences.
So what are the current laws around CSG? And what say do landholders have in what happens on their land?
The law in NSW says that the Government owns and controls mineral and petroleum resources under the surface of land. That means even if you own the land, the Minister for Mines can give a mining company an exclusive right to drill for CSG on your property.
The mining company cant just waltz in and start drilling. First they have to apply to the NSW Government for an Exploration licence. If granted, they then have to negotiate a Land Access Agreement with you. That covers things like what part of your property they can access and when, what they can actually do there, and any compensation they have to pay you.
Despite the word agreement though, in reality, if you refuse to allow access to your land or cant agree on the details, the mining company can have an arbitrator determine what happens. In other words, they can get an access agreement whether you agree or not.
If they find CSG, they can get a petroleum title and be granted right of way over your land to extract it. You cant prevent it, and you dont benefit financially if your property proves to be a rich source. The Government does.
Youre entitled to compensation if mining affects the surface of your land (eg. crop loss), but not if it affects anything below like damage to a water table.
What landholders can do is seek legal advice before negotiating a Land Access Agreement, at the mining companys expense and they have to pay your reasonable legal costs. The more detailed the agreement the better, to take into account things like how your daily work routines will be affected (eg. access routes), what the mining company must do to protect the environment while on your land, conditions they must observe, and compensation payable.
In the meantime the CSG debate will rage on.