Metgasco takes drilling suspension to Supreme Court
PERTH (miningweekly.com) – ASX-listed Metgasco has turned to the Supreme Court requesting a judicial review of the Office of Coal Seam Gas’ (OCSG’s) decision to suspend drilling at the Rosella well, in New South Wales.
The OCSG last month suspended Metgasco’s approval to drill at the Rosella well, prompting New South Wales Energy Minister Anthony Roberts to write to the Independent Commission Against Corruption (ICAC) “following receipt of information concerning shareholdings and interests in Metgasco”.
The ICAC subsequently decided not to proceed with an inquiry into Metgasco.
Metgasco told shareholders this week that it hoped that the judicial review proceedings would set aside the OCSG’s decision to suspend drilling at Rosella well, with the company claiming that the decision was unlawful as it was not authorised by legislation, and was made without affording Metgasco procedural fairness.
“The Minister has claimed that he exercised his power to suspend because of Metgasco’s alleged failure to engage in community consultation. Metgasco will ask the court to rule that it complied with its community consultation obligations,” the company said.
The company said that it would further request the court to expedite the hearing.
In the meantime, Metgasco would continue to investigate all its options, including a possible claim for damages to compensate the company for the losses resulting from the pre-emptory suspension of the drilling approval.
The OCSG has further written to Metgasco, advising the company that it considered the suspension of drilling to be fair and was inclined to maintain its decision.
Metgasco had until June 6 to respond to the OCSG letter.
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