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Media Release - Minister's Office

Sydney: 10 August 2009


DECISION ON SOMERSBY FIELDS. NEXT STEP TO CONSIDER WALLARAH COAL PROJECT

Planning Minister, Kristina Keneally, is on the Central Coast today to make two important announcements about mining proposals in the region.

Ms Keneally said today’s decisions both demonstrate the robust and transparent nature of the State Government’s process for assessing and determining major development applications.

“Today, after a comprehensive merit based assessment process, I am refusing the application for the Somersby Fields Project,” Ms Keneally said.

“The proposal would have seen more than 7 million tonnes of sand extracted over 18 years.

“On the other hand, there was extraordinary public concern about the proposal, including about potential negative impacts on Somersby Public School, located just 180 metres away.

“The Government considered this as well as other potential impacts on air quality, noise, water and threatened species such as the Somersby Mintbush.

“I weighed the potential economic benefits, community concerns, advice of an independent panel, Department of Planning recommendations, and my own observations when I visited the site in March.

“I’ve concluded the potential benefits of the proposal do not outweigh the social and environmental consequences. My decision reflects that.” Ms Keneally said factors included:

• Incompatible land uses between the proposed location of the quarry and the nearby school;

• The unacceptable reliance on management and monitoring to ensure safe operations; and

• Uncertainty surrounding potential noise and air quality impacts.

“I’d like to note the efforts of Gosford MP Marie Andrews in voicing the views of the community and local residents throughout the assessment process,” Ms Keneally said.

“It was Marie who asked me to come and visit the site, Marie who brought residents to see me about Somersby, and Marie who’s been raising the issue with me ever since I became Planning Minister.

“On the other hand, Opposition Leader Barry O’Farrell just last week called for me to wait 12 more months before making a decision on the proposal. I’m completely rejecting that.

"After a comprehensive assessment and Marie Andrews’ persistent representations, I don't need 12 more months to know either the community's concerns, or the technical issues, with the proposal.

“Clearly Mr O’Farrell wanted this sand mine approved, and wanted it approved closer to the next election so that he could play politics with the decision. It’s quite frankly outrageous.”

Ms Keneally also announced the next steps to assess the Wallarah Coal Project, a process that will include review by independent experts and the Planning Assessment Commission (PAC).

“This will be one of the strictest and most comprehensive merit assessments of any coal mining project ever undertaken in Australia,” Ms Keneally said.

“Today we release for the community and the proponent, Wyong Areas Coal Joint Venture, the environmental assessment requirements that outline issues that the proponent must address.

“These assessment requirements were written after considering a range of recommendations from the local community, who provided us with feedback earlier this year on the Chikarovski report.”

“We are now taking the next step in a comprehensive assessment of a proposal that, as evidenced by my decision on Somersby Fields, may be refused, approved or amended.”

Ms Keneally said the beginning of merit assessment of the Wallarah Coal Project follows an extensive, independent inquiry into the broader impacts of underground coal mining in the Wyong area.

“The inquiry, chaired by former Liberal Opposition Leader Kerry Chikarovski, says mining proposals in the Wyong area can be examined on their merits,” Ms Keneally said.

“The findings of the Chikarovski report followed a detailed investigation by experts in subsidence, groundwater and social impact, as well as community feedback and a number of public hearings.

“This inquiry has also allowed the community to provide input into the requirements for the Wallarah Coal Project, as well as present feedback on the proposal itself at the outset.”

Ms Keneally said that prior to any determination of the Wallarah Coal Project, the proposal will be put under the microscope by:

• Independent review of the project, including public hearings, conducted by the PAC;

• An independent water expert who will review the adequacy of the surface and groundwater data in the sub-catchments affected by the proposal;

• An international peer review of this water review; and

• An extensive community consultation process.

Ms Keneally said the NSW Opposition needs to decide if it supports assessment of planning proposals on their merits, or if it will continue to simply use them as political footballs in local communities.

"Mr O'Farrell has previously said that he would ignore the Chikarovski report, and rule out the Wallarah proposal without any merit assessment,” Ms Keneally said.

“But, when it came to Somersby, Mr O'Farrell wanted another 12 months of assessment and study.

"If Mr O'Farrell believes in a merit assessment planning process for Somersby, he will support one for Wallarah. As evidenced by my Somersby decision, this can lead to rejection, approval or amendment."

FACT SHEET: WALLARAH COAL PROJECT PROPOSAL

The Wallarah Coal Project – project brief

Wyong Areas Coal Joint Venture proposes to develop the Wallarah Coal Project in the Wyong local government area. The proposed $750 million development involves:

• Extracting up to 150 million tonnes of coal from an area to the west of the F3 Freeway over 40 years using longwall mining methods; and

• Processing and stockpiling this coal at the mine’s surface facilities to the east of the F3 Freeway, before transporting it off-site by rail.

The Wyong Coal Inquiry – terms of reference

On 5 February 2007, the former Planning Minister appointed an independent panel of experts in the fields of subsidence, groundwater and social impacts to examine and report on:

1. Whether coal mining under the catchment of the Mardi Dam would compromise, in any significant way, the water supply of the Central Coast;

2. Environmental impacts of any underground coal mining, with particular emphasis on:

• Surface and groundwater resources, especially on drinking water supply and flooding;

• Hazards and risks of subsidence impacts; and

• The amenity of the community, including dust and noise impacts;

3. Social and economic significance of any underground coal mining to the local community, the region and State; and

4. Areas where mining should not be permitted, or if permitted the conditions under which it may proceed, having regard to the matters listed above and the NSW Governments strategic planning policies that apply to that area.

The Panel was chaired by Kerry Chikarovski. Other members of the panel were:

• Emeritus Professor Jim Galvin, a subsidence expert;

• Associate Professor Noel Merrick, a groundwater expert; and

• Brian Elton, a social impact expert.

In response to a call for input into the inquiry, the panel received 360 submissions from the community, stakeholders and Government agencies.

Additionally, the panel held public hearings on 27 and 28 August 2007.

The Wyong Coal Inquiry – findings and recommendations

The Wyong Coal Inquiry provided a strategic examination of the potential for future coal mining in the area and, notwithstanding the broader community’s concerns, found that:

• There is a valuable coal resource in the Wyong area worth billions of dollars in investment and jobs;

• There are no significant reasons why this coal resource should not be extracted;

• The extraction of this coal is unlikely to significantly affect the Central Coast’s drinking water supply; and

• All new mining proposals in Wyong should be assessed carefully on their merits under the major projects assessment system, using the best available scientific expertise.

The final report also made specific recommendations regarding the Wallarah Coal Project, in particular:

• It should be assessed under the major projects assessment system;

• Consideration should be given to an independent review of the final Wallarah Coal Project as part of the Department of Planning’s assessment process;

• Noise and dust emissions from the proposed surface facilities should be minimised, given their proximity to residential areas; and

• The proponent should apply best practice community consultation, engagement and participation.

The panel’s report was released on 17 December 2008 for public comment, giving the community a further chance to comment on the report and identify the issues that should be addressed in any environmental assessment of the Wallarah Coal Project.

A total of 42 submissions were received from individuals, special interest groups and local government agencies, along with a form letter from the Member of Wyong of over 300 signatures.

The Wallarah Coal Project – assessment process

This proposal is currently at a preliminary stage in the assessment process.

The requirements for environmental assessment have been issued to the proponent. These outline a range of requirements for the project, and are available to view on the Department of Planning’s website: www.planning.nsw.gov.au. Requirements the proponent must address include:

• Subsidence, with full regard to potential impacts on the surrounding natural and built environment;

• Impact on regional water supplies, surface water, groundwater and flooding;

• Impacts on regional biodiversity;

• Construction and operational noise and vibration;

• Greenhouse gas emissions, including mitigative measures;

• Transport efficiency in relation to the surrounding freight networks

• Impacts on air quality;

• Impacts on Aboriginal and non-Aboriginal heritage;

• Visual impacts of surface facilitates

• Human health risks with regard to air quality, noise and drinking water quality

• Waste outputs and rehabilitation; and

• Social and economic impacts.

In summary, the whole assessment process will include a number of important steps, including:

• The proponent must prepare a detailed environmental assessment (EA) addressing each of the listed requirements in consultation with relevant councils and Government agencies;

• If the EA adequately addresses each requirement, it will be placed on exhibition for a minimum of 30 days, otherwise the proponent will be requested to revise the assessment before exhibition;

• Prior to public exhibition, relevant Government agencies, councils, the community and adjacent landowners will be notified of the upcoming exhibition and invited to comment;

• The proponent will be required to respond to all issues raised in submissions and amend its project if necessary, and lodge this with the Department for assessment;

• Concurrently, an independent expert will be appointed to review the adequacy of the surface and groundwater data in the sub-catchments that will be affected by the Wallarah Coal Project, and this Water Review will be the subject of an international peer review;

• In addition, the PAC will hold public hearings and independently review the proponent’s EA and the Water Review;

• Finally, the Department will assess the merits of the proposal with regard to the findings of the PAC, the Water Review and the international peer review; and

• The entire assessment will be provided to the Minister for determination.

Members of the public can keep track of the project on the Department’s website. It can be found by searching for the project in the “Wyong Council” field on http://majorprojects.planning.nsw.gov.au/ .


 


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