A West Australian mining executive says he won't “be drilling under any houses”, despite his company holding an exploration permit that takes in parts of suburban Kingaroy.
The issue is set to be a hot topic at a public meeting in the South Burnett town tonight as locals voice concerns about underground coal gasification in the region.
But Red River Resources managing director John Karajas yesterday tried to ease public concern about safety issues surrounding the industry.
A chemical scare linked to a mine owned by another company in the area has thrown a cloud of uncertainty over UCG, which was already subject to a state government moratorium.
Only three pilot projects – operated by Cougar, Linc Energy and Carbon Energy – can operate in Queensland until the government is satisfied the process is safe.
A UCG pilot plant operated near Kingaroy by Cougar Energy was closed down this month after traces of cancer-causing chemicals benzene and toluene were found in bores near the plant.
Red River will be not allowed to start UCG unless the government decides UCG poses no risk to water, soil and air quality.
However, it has obtained exploration permits – covering large parts of the township - as part of a joint venture with Black Gold Resources.
The joint venture is subject to shareholder approval.
But yesterday Mr Karajas said he was not interested in coal gas beneath the township of Kingaroy.
“[The exploration permits] do take in the edge of town,” he said. “But it's my intention to excise those parts from the exploration licences.
“Those exploration licences were actually applied for by Black Gold and we've agreed to go into a joint venture with that company, subject to shareholder approval.
“Once we become the operator of that project it's my intention to drop those parts from the exploration licence that encompass the town area and just leave it to the farm land.
“What I'm really interested in is a piece of farmland that's about 3-5km south of the town. We're not going to be drilling under any houses.”
Organisers of tonight's public meeting in the town expect that Red River's interest in resources so close to homes would ensure a good turnout.
South Burnett Mayor David Carter said Mr Karajas's pledge not to mine underneath the floorboards of Kingaroy houses did not go far enough.
“We don't want them to come within a certain distance,” he said.
“If their proposal is underground coal gasification, we're not even sure that that is going to be viable, considering what's happened.
“Our air quality, our water quality and our soil are our best natural attributes and we don't want them polluted.”
Eighteen months ago the State Government placed a moratorium on UCG approvals following the approval of the three pilot projects – one near Kingaroy and two near Chinchilla - under a supervised trial due to end in 2012.
The future of the industry in Queensland would hinge on the pilots proving the safety of UCG, according to Minister for Natural Resources, Mines and Energy Stephen Robertson.
“We have been very clear that the future of UCG technology and the potential for new projects will be based on the outcomes of these three trials,” he said.
“We make no apologies for putting the safety of the community and the environment first and that is why we are taking the steps to ensure this new technology can operate with Queensland's strict environmental guidelines before its future in our state is determined.”
But some farmers believe there are more appropriate test sites for the emerging industry.
Gary Tessman's 500-acre dairy farm is just 4km from the Cougar site and he has concerns for the quality of water his 250 cattle drink.
“Why would they allow this to go ahead in basically an agricultural area where water is?” said Mr Tessman, who is also chairman of the Kingaroy Concerned Citizens Group.
“They should really put it in an area where nobody lives and where there is no usable water.
“To just put it somewhere and worry about the environmental issues afterwards - that's back-to-front to me.”
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