Dalby: historic gas water deal signed ...

Press release from Dalby Town Council:

14 December 2006

Historic water deal signed

Dalby residents could be drinking treated Coal Seam Gas (CSG) by-water as early as 2008 following the signing of a supply agreement between Dalby Town Council and Arrow Energy yesterday.

The agreement secures the water for town use adding reliability to existing supplies at a time when water is becoming an increasingly valuable resource.

Dalby Mayor Cr Warwick Geisel said that the agreement is a first for town supply in Australia and a significant milestone towards securing adequate long-term water supplies for Dalby.

"Arrow Energy will allow Dalby to access CSG by-water for the time the gasfields are operating, which is expected to be in excess of 15 years," Mr Geisel said.

"The scheme reduces the need for Council to access deep underground supplies by utilising water that would otherwise be evaporated. It enables Dalby to move into more reliable water sources that provide known capacity and this should have a positive influence on future development within the region," he said.

Planning is underway to establish the required infrastructure which includes a 23 kilometre pipeline running from Arrow's Tipton West gas fields to Dalby's Water Treatment Plant at an estimated cost of $3 million.

The project also requires the construction of a second desalination plant and upgrading of existing evaporation ponds as the CSG by-water has around twice the salinity of normal Dalby ground water.

Additional costs incurred by Council to treat and transport the water will result in higher water charges over the long-term with prices estimated to rise substantially.

Council's Director of Engineering Services Matt Sullivan said the rise is consistent with a nationwide trend towards paying more for water.

"As water becomes scarcer, the costs involved in finding and producing drinkable water for town supply will need to be met through increases in Council's pricing policy," Mr Sullivan said.

An Environmental Management Plan that meets Environmental Protection Agency (EPA) guidelines will be put in place to control environmental impact.

The Dalby Town Council plans to open the new plant for public inspection once it is operational and hold information days to boost community awareness of the process.

Federal Member for Maranoa Bruce Scott said he was delighted with the partnership approach between all levels of government and private enterprise.

"When we live on one of the driest continents on earth, all sources of water should be fully utilised, and this innovative project leads the way for bolstering Australia's scarce water supply," Mr Scott said.

"Furthermore, the availability of water underpins regional development for the area and it will encourage new industries and new jobs. I congratulate the Dalby Town Council and Arrow Energy for working together to develop this highly innovative project and I look forward to the future achievements from this smart water initiative," he said.

The scheme forms part of the $10 million Dalby Water Supply Redevelopment Project which aims to replace up to 1,200 megalitres per year of low reliability supplies and has the support of all levels of government as well as private enterprise.

Other water saving measures incorporated into the redevelopment project include upgrading the town's current recycled water systems and expanding the recycled water plant to provide 100 per cent of the town's treated wastewater for maintaining local playing fields, parks and gardens as well as use by industry.