GAS company Cougar Energy is suing the Queensland government and three senior bureaucrats for $34 million in compensation after its $550 million underground coal gasification project was shut down last year amid claims of groundwater contamination.
As the debate continues over the encroachment of mining into farm land, Cougar Energy chairman Malcolm McAully yesterday accused the Bligh government of being "politically motivated" in shutting down the Kingaroy power station project in south-east Queensland to appease community concerns about gas exploration.
He said the Bligh government's decision to shut down the project was unreasonable and had caused significant financial loss for the company and its 7500 shareholders, The Australian Financial Review reports.
In a bid to recover some of their losses, the publicly listed company – whose shares have slumped to 1.5¢ – launched legal action in the Supreme Court in Brisbane yesterday.
The company claimed the government and the three public servants were negligent in their application of the Environmental Protection Act, saying 15 months of negotiating in good faith to reopen the pilot project had failed.
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