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LNC - Linc Energy

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This reinforces what LNC's Justyn Peters stated in his Limelight address in Melbourne on June 4- that only LNC has mastered the drilling, burning and extinguishing the burn, and ground water issues, among the UCG operators in Australia.
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I'm wondering about this statement Michel. Certainly LNC has mastered the drilling and burning issues. I'm wondering however if the potential to pollute groundwater is still an issue. If it is (or believed to be a possibility) is there a risk that the Chinchilla plant will also be asked to close down as precautionary measure ? Is there some fundamental difference between the geologies of the two areas or the methodologies or of the UCG process LNC is using versus CXY/CNX ?
 
ABC News;

The environmentalists will never let this go away, especially when they have the support of the landowners. This is one area where Labor is prepared to kowtow to the Greens.
 
It occurrs to me that burning coal underground in an enclosed situation would have to have similarities to coke production. The 2 chemicals mentioned in the recent news reports are also by products of coke ovens. For many years there were concerns from the lay community about cancer risks at Port Kemblas steelworks coke-ovens, I dont know if this was ever backed up by objective research. A have a friend who worked in an industry where benzene was used, he now suffers from a bone marrow condition, one common name of which is 'smouldering leukaemia'. This UCG industry industry has a battle in front of it, possibly justified as a result of these test bore water contamination.
 
The issue of ground water contamination has always been recognised. In fact it was one of the problems encountered in UCG experiments in America in the 70's.

LNC's website has some excellent information on what can happen and how ground water could be monitored and protected. It remains to be seen how effectively this has been done to date and if there are significant risks in the CXY/CNX/LNC operations. It looks as if all three sites have reported issues and are being asked to review their environmental controls.

This is still a fledgling industry. That means the skills may still not be there to properly run the drilling, burning , gas extraction. It also means the industry won't have the clout of the traditional oil and gas giants who could probably bring more pressure to bear on governments in similar circumstances.

From LNCs view they must demonstrate that

a) There will not be projects in areas that might pollute important underground water supplies.

b) They can demonstrate the ability to make sure there is minimal pollution of any underground water they do use.

Unfortunately there is also a possibility that regulators might decide to hold up the whole industry on the basis of poor practices by a couple of participants.

Of course if we were cynical LNC and co could simply start up operations in countries that are just not as careful about contaminating water supplies.
 
There are a number of points to this drama with Cougar Energy-

1. As previously mentioned, there was an incorrect test result at Cougar and there is no contamination- refer link on previous post.

2.Carbon Energy have stated to ASX that the so called contamination at their site was only a small amount of surface water which was immediately cleaned and didn't affect any groundwater.

3 LNC in their ASX statement confirmed that "exceedance of salt levels" in their tests is consistant with regional salinity and not associated with their UCG operations. http://www.lincenergy.com.au/pdf/asx-228.pdf

4. LNC has been the leader in monitoring groundwater and last month published a paper on it on their website- http://www.lincenergy.com.au/mediacoverage.php

5. The unfortunate error by the independant tests at Cougar has given the Greens an opportunity to blast all UCG operations and call for them all to be closed down. Their claims are now shown to be baseless.
 
UGL companies have many enemies and very few friends in Queensland. That's the reason Linc moved its main activities to SA.

With the big coal seam gas companies, AGForce, the environmentalists, the media and a very weak government all conspiring against them their future is bleak. There is no point in whistling in the dark.

The gas industry yesterday said it had also been trying to rid the state of UCG operators for years because it did not want to be associated with them because they were not environmentally sustainable. AgForce has also made similar pleas
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http://www.couriermail.com.au/news/...on-near-kingaroy/story-e6freoof-1225892976986
 
What is the feeling amongst linc shareholders, is this DERM action going to snowball and affect lincs pilot plant in Chinchilla??

Technical support is currently being tested at 1.24, a break down from here is possible to the next support level.

Eagerly awaiting any news of the sale of the Emerald or Galailee tenament.
 


Merely a bump in the road. LNC is more advanced with their drilling and groundwater management. If QLD govt closed the site, it would only be temporary pending further testing which wouldn't take long to do.
 
Published in ASX on Friday
Not sure if some one already posted it
Basically Cougar Energy shutdown is not affecting LNC which is a good news
DNH
 

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Miner said:
Published in ASX on Friday
Not sure if some one already posted it
Basically Cougar Energy shutdown is not affecting LNC which is a good news
DNH
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Oh com on Miner...you really think the Cougar shutdown issues will have no affect on the industry as a whole/Linc i was surprised LNC didn't get hammered on Friday and will be surprised if the SP holds up this week.
 
Here are the latest media releases from Dept of Environment and Resource Management( DERM)-

http://www.derm.qld.gov.au/media-room/2010/07/kingaroy-test-results.html

http://www.derm.qld.gov.au/media-room/2010/07/further-kingaroy-results.html

and LNC ASX statement this morning-

http://imagesignal.comsec.com.au/asxdata/20100719/pdf/01080109.pdf

an extract of which is-

Linc Energy confirms that the UCG operations which it conducts utilise proprietary
techniques significantly different from those employed by Ergo Exergy and Cougar
Energy.
Linc Energy notes that the groundwater monitoring data which it has collected at
Chinchilla and supplied to DERM over the past 11 years evidences the fact that
there has been no impact on the quality of the groundwater of adjacent property
holders.
Linc Energy continues to confirm that it remains in compliance with all groundwater
monitoring and reporting requirements set out in the Environmental Authority for
UCG at its Chinchilla demonstration facility.
“The investigation being undertaken by DERM in Kingaroy is specific to Cougar
Energy and the manner in which it conducts its UCG operations with Ergo Exergy.
Whilst we have communicated our concerns to DERM about their decision to include
reference to operations conducted in a different manner by unrelated companies in
their initial media release about this matter, we will continue to work proactively with
the Queensland government regulators in all respects”, said Linc Energy’s CEO
Peter Bond.

Says it all about the Qld Government.
 
Well LNC is on the go. After the early trade cleared out the those who were still concerned about the cougar water contamination scare it has gone for a quick ride.

Thanks heavens there is some sanity in this marketplace.
 
Pointdexter says:

"Most farmers drive cars and farm machinery that exposes them to higher levels of benzene and toluene than anything UCG 300m underground might. the same goes for farmers who also smoke or use slow combustion fireplaces or conduct open air burnoffs like for sugar cane or land clearing."

Pointdexter goes on to say:

"There have been four trial UCG burns in Australia to date, with three still in progress.
1. Chinchilla 1999-2002 NO groundwater pollution
2. Chinchilla 2008 - pres NO groundwater pollution
3. Bloodwood Creek 2009 - pres No groundwater pollution
4. Kingaroy 2010 - pres No groundwater pollution
...

So, in an aggregate of seven years of Australian UCG trials there has been no groundwater pollution reported despite a punishing sampling and testing regime.

In seven years there has been at least one independent laboratory reporting error ... and that incorrect result related to drinking quality ... then we have last week's event.

However, every litre of COAL SEAM GAS drainage dewatering brings to the suface water that is unfit for drinking ... and probably 100's of millions or litres have been drained so far and gas production has barely even begun.

Where is the balance in regulatory oversight?

Dex"

Thankyou Pony!


Psi81 wrote:

"Just look at what happened here. Someone at DERM:

- Ignored the doubt over the validity of the test
- Stood down a DERM employee
- Ordered Cougar to halt their project
- Ordered Carbon and Linc to review their projects, despite comprehensive testing programs already in place (what could more testing possibly achieve?)
- Started a media circus, throwing around terms like "carcinogenic water" and that the opposition groups were "vindicated""


"Benzene levels in the air at petrol stations are almost SIX HUNDRED TIMES higher than Australian drinking water guidelines!

Petrol stations must be shut down immediately, starting with all petrol stations in Kingaroy, where the locals have shown they will not tolerate this sort of thing!

Seriously, though, this indicates what a witch hunt it has all been, and what a media circus. Who cares about benzene levels at the limit of detection when you are exposed to MUCH higher benzene concentrations every time you fill up your car, or even just walk down the street?"


realcoolone wrote:

"I would be happy to take the fight to these bungling backstabbing labor ..."
 

Very interesting Jonathan. Who /where is Pointdexter ? Be interesting to see his background.....................
 
basilio said:
Very interesting Jonathan. Who /where is Pointdexter ? Be interesting to see his background.....................
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I think he/she may be from that hot wire forum.

I do agree that there is no balance in regulatory oversight between CSG and UCG. The Coal Seam Gas people seem to have the inside running with the Qld Govt.
 
Mickel said:
I think he/she may be from that hot wire forum.

I do agree that there is no balance in regulatory oversight between CSG and UCG. The Coal Seam Gas people seem to have the inside running with the Qld Govt.
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Any investment, whose future is dependent on the whims of a Labor government needing Green's preferences for election, is very risky Indeed.

http://www.theaustralian.com.au/new...ification-sector/story-e6frg6nf-1225894283350


The three projects are due to be formally evaluated at the end of a supervised trial in 2012.
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Who is going to keep their nerve that long? There are better pickings elsewhere.
 
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