Sustainability and coal seam gas – Part one

By Paul Locke*

Here is an excerpt from the current edition of SKM's achieve magazine.

In regard to upfront investment in CSG, failure to recognise and address the potential environmental and social impacts may undermine the success of individual projects and possibly even the industry as a whole.

Global benefits of CSG
CSG is an important growth industry for Australia and Asia, particularly China, India, and Indonesia. It has the potential to underpin significant economic growth in the Asia-Pacific region and contribute to global energy security.
In the past decade, CSG has emerged as a flexible, clean and competitive source of energy in the search for lower emission fuels. CSG is predominantly methane (chemical formula CH4) with lesser amounts of carbon dioxide and other trace gases. It is also known as coal bed methane.
As another source of natural gas, CSG can be used in the same way as gas from conventional gas wells to power water heaters, stoves and space heaters in both domestic and business settings. CSG can be used as a direct source of power for industry and as a fuel for electricity generation.
From a global environmental sustainability perspective, CSG can help the community transition to a low greenhouse gas emissions future.
Greenhouse gas emissions from gas-fired power generation are significantly lower than those from coal-fired power generation, so the expansion of gas-fired power generation in place of coal can help slow global emissions growth and act as a bridge between traditional power generation and renewable technologies.

Local environmental and social impacts
While the CSG industry has the potential to deliver global benefits, it could also impose significant environmental and social costs on those living in and around CSG projects.
These developments will be undertaken over vast geographic areas, with infrastructure distributed across areas of up to several thousand square kilometres.
Every existing land use within a project area will be affected, including grazing, agriculture, nature conservation and other areas of environmental or social/ cultural significance. As such, the CSG industry has the potential to cause significant changes to existing landscapes.
The potential environmental impacts associated with this transformation are manifold, including:
. Increased habitat fragmentation
. Increased weeds and invasive species
. Land and water contamination due to improper treatment and disposal of ancillary water
. Nuisance environmental impacts such as increased noise and dust 
. Loss of visual amenity associated with current landscapes
. The social impacts associated with the CSG industry may also be extensive.
Communities in project areas will derive economic benefits as a result of job and business creation. However, there may be significant negative impacts as well. Experience from the mining industry has shown that large-scale resource developments in regional areas can result in:
. Increased pressure on housing resulting in rapid growth in house prices and rents
. Increased pressure on education and health services 
. Reduced road safety due to the increased movement of heavy vehicles 
. Gender imbalances due to an influx of male workers
Local environmental and social impacts are critical risk factors that should not be taken lightly. An adverse community reaction may result in protracted disputes and delays with real financial impacts on the success of projects, as well as damage to corporate reputation and a diminished social licence to operate.
Where multiple projects are being undertaken in adjacent areas, the risks associated with environmental and community impacts may be magnified. The community as a whole may not distinguish between the activities and impacts of one project and those of another. As such, failure to adequately address these issues may have a significant impact on public perception of the industry as a whole, with implications for all.

* Paul Locke is one of SKM’s sustainability practitioners. He has worked with mining, gas and transport sector clients to improve environmental and social performance through project design.
For more information visit: www.skmconsulting.com

To read the final part of this report see next week’s AJM newswire.