Coal seam gas water to drought-proof Dalby ...

Excerpt from Mining Chronicle:

Coal seam gas water to drought-proof Dalby

February, 2007

Water from Arrow Energy NL's coal seam gas projects will help droughtproof the dry South East Queensland agricultural community of Dalby under a deal inked with Dalby Town Council.

Arrow chief executive Nick Davies said the coal seam gas producer was contributing $1.3 million towards the Dalby water supply redevelopment project, under which CSG water from Arrow's nearby Tipton West gas fields will be piped to Dalby's water treatment plant. This funding is in addition to contributions of $3.3 million each from the federal and state governments and additional funding from Dalby Council.

"The worst-in-a-century drought in one of Australia's major agricultural centres has led to a dire need for reliable base water supplies."

"Rather than allowing the water generated as a by-product of the CSG extraction process to simply evaporate in our dams, we have agreed to freely supply it to Dalby Council for the benefit of the local community," Mr Davies said.

In a landmark agreement hailed by Dalby Mayor Warwick Geisel as "a first for town supply in Australia", Dalby residents may be drinking treated CSG water as early as 2008.

"This water is expected to be available for over 15 years, meaning the upper aquifer will be preserved instead of being further depleted," Mr Davies said.

"This will make a significant contribution towards protecting biodiversity and the sustainability of both the community and environment."

The required infrastructure includes a 23km pipeline from the Tipton West fields to the water treatment plant, along with the construction of a second desalination plant. Full operation of a reverse osmosis plant capable of treating up four million litres a day of CSG water is planned for early-2008.

"This agreement brought together federal, state and local government with the business community and landholders to secure a mutually beneficial outcome," Mr Davies said.

Federal member for Maranoa, Bruce Scott, said the innovative project would provide a major economic boost to the region.

"The availability of water underpins regional development for the area and will encourage new industries and new jobs," he said.

"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."

Arrow is already supplying CSG water to a local cattle feedlot, in addition to Peabody Surat Pty Ltd's Wilkie Creek mine for use in its coal washing process. Arrow is also working with the Queensland Department of Primary Industries and Fisheries in a trial scheme to grow saltwater fish such as barramundi and Murray cod in CSG water.

"This agreement is yet another example of Arrow's commitment to being a community-minded and environmentally responsible energy producer," Mr Davies said.

See - Arrow Energy - Coal seam gas water to drought-proof Dalby.