NEW SOUTH WALES EXTENDS "FRACKING" BAN

12/05/2011

New South Wales will extend its ban on hydraulic fracturing until April to give the state, the most populous in Australia, time to strengthen standards for the extraction process. The move, which adds an additional three months to the state's moratorium, comes shortly after the release of a Senate committee report that recommended the suspension of all new coal seam gas projects in southern Queensland and northern New South Wales, pending further research on fracking's effects. The 24 recommendations would give landholders more rights to reject proposals and, if implemented, would stop billions of dollars of investment in the area. The Australian Petroleum Production and Exploration Association said the report was out of date as several of the recommendations were already addressed by companies, but proposed measures would add a number of new requirements, including holding companies liable for damage that occurs decades after well closures. Last month, Prime Minister Julia Gillard said that the government would allocate A$150 million to create a committee to provide scientific advice on coal seam gas' impact. For the story on New South Wales, see http://www.businessweek.com/news/2011-12-02/australian-state-extends-temporary-ban-on-fracking-to-april.html. For the story on the committee recommendations, see http://www.smh.com.au/environment/senate-report-suggests-suspension-of-most-coal-seam-gas-drilling-20111130-1o762.html.