Carbon Energy Limited (ASX:CNX) Environment Evaluation Request
Brisbane, July 16, 2010 AEST (ABN Newswire) - Carbon Energy Limited (
ASX:CNX) (PINK:CNXAF) advised today that the Company will continue to work with the Queensland Department of Environment and Resource Management (DERM) and cooperate fully with any request for an Environmental Evaluation of its Bloodwood Creek (near Dalby) Underground Coal Gasification (UCG) trial plant.
DERM has indicated that it may make such a request as a 'precautionary measure' in light of its concerns in relation to Cougar Energy that uses its own alternative UCG technology.
Carbon Energy has complete confidence in the CSIRO-researched technology used at Bloodwood Creek and in particular in the integrity of the environmental systems and processes used at the plant. Carbon Energy is in constant contact with Officers from DERM, who have visited our site on a regular basis.
Carbon Energy undertakes rigorous testing of ground water on a continuous basis and follows strict environmental guidelines, as required by all extractive mining process. The Company has 20 watering monitoring wells with in a square kilometre of our production area and are in regular contact with Department representatives who visited our site as recently as last week.
Carbon Energy released an interim report, endorsed by an independent third party (over 200 pages) to Government within the last year covering all aspects of our commercial trial, including matters relating the protection of the environment and in particular the integrity of the water table.
We wish to clarify the Department's comment that "Carbon Energy failed to report a discharge of contaminated water from their plant to a nearby creek in November 2009". There was a small amount of process water runoff into a dry creek bed which was immediately cleaned up by our team on site. A report was compiled but not lodged within the correct time period. The water released was surface water and was in no way connected to the water table.
The company will continue to work cooperatively with the appropriate authorities as it continues to build its energy business in Queensland.
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
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