NSW coal seam gas project suspended after dangerous chemicals detected

The New South Wales government has ordered an internal investigation into a mid-north coast gas project after dangerous chemicals were detected in a water storage tank.

AGL Energy has suspended operations at the Waukivory pilot project near Gloucester until a full review of the sample results have been completed.

The state resources minister, Anthony Roberts, says he has ordered an immediate investigation.

He said officers from his department will join inspectors from the NSW Environmental Protection Authority (EPA) in the investigation.

“The EPA will also be conducting an independent investigation,” Roberts told Macquarie Radio on Wednesday.

“I want to know exactly what has happened.”

The EPA says there’s been a lack of transparency in AGL’s handling of the Gloucester project. Testing work was suspended after benzene, toluene, ethylbenzene and xylene (Btex) were detected in flowback water from four drilling wells and in a water storage tank. Anti-fracking advocates want the licence revoked.

“AGL have admitted Btex is in their flow water. It’s a bridge too far,” Ground Swell Gloucester chairwoman Julie Lyford said.

The chemicals found in the flowback water can have harmful effects on the central nervous system, and Benzene is a known carcinogen.

“Because of the community’s concern about any detection of Btex and in the interests of acting prudently, AGL has voluntarily suspended the Waukivory pilot project until a full review of the sample results has been completed,” AGL managing director, Michael Fraser, said in a statement on Tuesday.