POLICY

Arrow under investigation over deviating CSG wells

ARROW Energy is currently under investigation by the Queensland Department of Resources after allegations emerged that the company failed to notify Western Downs landowners it was drilling CSG wells underneath their property.

 Arrow's Daandine Central Gas Processing Facility

Arrow's Daandine Central Gas Processing Facility

 

Arrow operates five gas fields in the Surat and Bowen basins in southern and central Queensland, respectively, and produces the equivalent of more than 40% of Queensland's total domestic gas demand.

The Surat Gas project, launched in April, consists of more than 600 CSG wells drilled in Phase 1 and is expected to develop around 5 trillion cubic feet of gas over the development's 27-year life. It was sanctioned in April last year. 

Last month, property owners west of Dalby, told local media that Arrow failed to notify them when wells from their Daandine Field and Surat Gas Project deviated underneath their properties.

Kupunn's Zena Ronnfeldt said they could see wells being drilled along the boundary of their property but claimed the company never told them what type of wells they were, or if they would be drilled in the property, adding that the farms had already been affected by the drilling. 

"We have an older gas field where they've drilled wells along the boundary of our property, but it was never confirmed to us what type of wells they were," she told The Dalby Herald. 

"About the same time as Arrow started to ramp up their development, we noticed some subsidence on the back of our property that backs onto the fields.

"We started to realise we had some irrigation problems as water began to sit up along the ground and not drain properly."

The Department of Resources confirmed to Energy News it was aware of the matters raised and is working with other government agencies to investigate. 

"The Department addresses compliance via a range of measures including guiding and informing through to enforcement," a spokesperson said. 

"Penalties or sanctions that may be imposed for breaches are set under the relevant legislation."

An Arrow spokesperson told Energy News the company had proactively engaged with the regulator on the issue in April, as well as the Gasfields Commission Queensland. 

"We have been open about, and indeed drawn attention to, our use of deviated wells drilled from multi-well pads because they are overwhelmingly positive for co-existence as they materially reduce surface impacts and give landholders much greater flexibility about the location of well pads to minimise impacts on farming operations," they said.  

The spokesperson said the company "genuinely did not believe'" it needed to seek permission from landowners, given that the wells were so deep beneath the surface. 

"All of the examples of activities listed in the relevant legislation involved surface activities," the spokesperson said. 

"The Department of Resources has recently made changes to the template Entry Notice to clarify this matter and we understand that it is finalising a fact sheet to provide clarity for all stakeholders."

Arrow said that it notified all impacted landholders in its Surat Basin development areas and provided detailed maps showing the location, depth and trajectory of all deviated wells that traversed into their properties once they realised Energy Notices were needed. 



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