The state Queensland government's Department of Environment and Resource Management has confirmed its decision to shut down Cougar Energy's Kingaroy underground coal gasification pilot plant, the Australian company said Thursday.
The confirmation was handed down by a delegate appointed by the DERM in response to Cougar's application for an internal review of the government's decision. Cougar said it received notification of the confirmation late Wednesday.
Cougar said it was "reviewing the reasons for the delegate's decision with its lawyers to determine whether it will appeal to the Queensland Land Court."
The DERM told the company in July that only "rehabilitation and monitoring" could be conducted at the Kingaroy project site in future. "No further underground coal gasification will be permitted at the site," DERM said at the time.
The Kingaroy underground coal gasification pilot plant was ordered closed in July 2010 after water quality tests found two isolated readings of 2 parts per billion of benzene in a nearby groundwater monitoring bore.
According to Cougar, the bore subsequently recorded levels below the detection limit for more than six months. The company has also subsequently tested more than 300 water samples from bores inside and outside the pilot plant area, none of which have shown any detections exceeding Australian drinking water guidelines.
Cougar was planning to use gas produced at its Queensland project to fire a 400 MW power station.
"Cougar Energy maintains that the Kingaroy project has not caused any environmental harm to the operating site, surrounding landowner properties nor the Kingaroy township," the company has said previously. "This is supported by DERM acknowledgment that 'contaminants have not been detected outside the Cougar Energy site'."
