The company is suing the previous Department of Environment and Resource Management (DERM) Chief Executives John Bradley and Terry Wall and current head James Reeves for negligence and breach of statutory duties in their administration of the Queensland Environmental Protection Act.
Cougar Energy Chairman Malcolm McAully said the company had commenced the legal action following advice from its legal advisors that the closure of the Kingaroy project was unreasonable and compounded by the defendants’ continued refusal to allow the re-opening of the plant despite scientific evidence presented by the company that its operations posed no threat to the environment.
“Based on our legal advice, it is the actions of the Bligh Government, these office holders, and their unreasonable decisions, that have inflicted a significant loss on the company,” Mr McAully said.
“During more than 15 months we have attempted to resolve the forced close-down with the Government and DERM in good faith. However, as all of our proposals have been rejected, the company is left with no option but to seek court intervention to redress the loss.” Mr McAully said Cougar Energy had not caused any environmental harm at Kingaroy, nor polluted the Kingaroy water supplies. According to Cougar no benzene has been detected in any water bores on neighbouring properties since Cougar Energy commenced water testing in March 2010.
“The Government and DERM officials have duties to administer the Environmental Protection Act for the purpose of protecting the environment in a way that allows for ecologically sustainable development,” said Mr McAully. “Significantly, they have applied the inappropriate water quality guidelines in justifying its actions to close us down.”
According to Cougar, John Bradley of DERM issued a media release on 15 July 2010 stating that the Kingaroy site was to remain closed, following and agreement reached by Cougar and DERM on 14 July 2010 to work together ‘in good faith’ to gather further water tests after an anomalous test result, which was subsequently proven on 16 July 2010 to be false. Mr Bradley authorised the serving of formal orders on Cougar on 17 July 2010 preventing the recommencement of operations. DERM’s test results on that day found no evidence of chemicals breaching the drinking water standards.
Cougar have reiterated their position on under-ground coal gasification saying “We are confident that our Kingaroy project is safe. It presents no danger to human health, no danger to drinking water, no danger to livestock and no danger to other farming activities.”
Cougar Energy has also recently lodged an appeal in the Queensland Planning and Environment Court challenging amendments to its permit which require the site to be decommissioned. Mr McAully said the Queensland Government’s action against Cougar Energy had jeopardised future investment in the State by introducing a significant element of sovereign risk as well as the uncertainty of exercise of government department authority.
