ARROW FINED OVER LAND USE BREACHES

BRISBANE’s Arrow Energy has been fined $40,000 by the Queensland Government for five breaches of the state’s petroleum and gas laws, including unauthorised access to private land.

The coal seam gas (CSG) company also failed to give valid notice to carry out authorised operations on private land three times and illegally constructed a pipeline across a lease boundary, according to environment minister Stirling Hinchliffe.

Hinchliffe says the breaches occurred on a Daandine homestead property used in Arrow’s Daandine project in the Surat Basin, between June 2008 and January 2010.

“This strong response to Arrow's actions show the Queensland Government is serious about enforcing laws governing coal seam gas activities and their impact on affected landholders,” says Hinchliffe.

“Our laws ensure landholders are fully aware and fairly compensated for activities undertaken by resource companies on their land. They require companies to enter into legally binding conduct and compensation agreements with affected landholders.

“Petroleum and gas companies are also now subject to compulsory new reporting requirements for all exploration and production activities they plan to carry out.

“Companies must give affected landholders at least 10 business days written notice of any drilling, hydraulic fracturing or seismic activities for petroleum, gas and coal seam gas they intend carrying out.”

A spokesperson for Arrow Energy, which last year was acquired in a JV by petroleum giants Royal Dutch Shell and PetroChina, indicated the company would not be releasing a formal response to the fine.