PERTH (miningweekly.com) – ASX-listed Metgasco has told shareholders that it would seek a meeting with New South Wales Resources and Energy Minister Anthony Roberts, after the state government’s announcement that it would reform its coal seam gas (CSG) industry.
Earlier this year, Metgasco turned to the Supreme Court after the New South Wales Office of Coal Seam Gas (OCSG) failed to amend a previous suspension of drilling activities at the Rosella exploration well. The OCSG maintained the suspension, providing the company with written material in support of the renewed suspension, which had originally been based on claims that Metgasco had failed to adequately conduct community consultation.
However, the state government missed its August 8 deadline to lodge supporting evidence for its decision with the Supreme Court, and has subsequently said that it had decided not to do so.
The Supreme Court hearing has been scheduled for the end of the year.
Metgasco on Friday expressed its concern about the repeated changes to regulation and policy since the current government came to office in New South Wales, as well as the uncertainty that the new CSG policy had created.
Roberts this week announced plans to pause, reset and restart gas exploration in the state, implementing a strategic framework to deliver a well-regulated CSG industry.
Under the new legislation, the entire system for petroleum exploration licences would be reset, with the New South Wales government now deciding which areas would be released for exploration, and to whom.
Metgasco said that the new policy announcement did not sufficiently clarify the business and regulatory environment for the gas industry.
“We now have new rules and regulatory responsibilities, many of which will not be defined until well into 2015, uncertainty about the rules for land holder compensation and some indication that the royalty regime might change to encourage exploration.”
Metgasco noted that it was important that the state government sent a clear message to investors.