New Hope not drilling

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THE NEW owners of the Colton mine project will not be drilling for coal seam gas, according to a mining official.

Coal giants New Hope bought a controlling share of Northern Energy Corporation last month, leading to community speculation that the mine may become a drilling site for coal seam gas.

A New Hope spokesman could neither confirm nor deny the rumour, and told the Chronicle it was too soon in the company re-shuffle to determine what the mine's future would be.

But yesterday, a Department of Employment, Economic Development and Innovation mining spokesman said Northern Energy and New Hope permits only covered exploration for coal.

“Exploration permits only allow exploration activities such as geophysical surveys and drilling exploration bores, and do not entitle the holder to conduct any type of commercial mining,” the spokesman said.

“All activities are generally low impact and subject to the conditions of an Environmental Authority issued for each permit.”

He said coal seam gas exploration cannot be conducted under an exploration permit for coal, and would instead require an Authority to Prospect (ATP) permit, granted under the Petroleum and Gas (Production and Safety) Act 2004.

However, the spokesman said a separate company held a permit granting authority to prospect for coal seam gas over the same land proposed for the Colton coking coal mine.

“An Exploration Permit for Coal and an Authority to Prospect can be issued over the same parcel of land,” the spokesman explained.

The coal seam gas exploration permit is held by Magellan Petroleum and Blue Energy also holds exploration permits for coal seam gas in the area.