NSW accepts Supreme Court’s Metgasco decision

OREANDA-NEWS. May 25, 2015. The New South Wales (NSW) government will not appeal a decision by the state's Supreme Court that could clear the way for drilling at the Rosella gas well by Australian firm Metgasco.

The Supreme Court on 24 April overturned a state ruling that suspended drilling approval at the well in NSW. The state had until 22 May to lodge an appeal.

Metgasco argued the NSW government's suspension was unlawful for several reasons, including that it lacked the power to make such an order under the Petroleum Onshore Act.

Metgasco wants to meet the NSW government and reach any settlement out of court, Metgasco managing director Peter Henderson said.

Drilling of the Rosella well was initially approved by the NSW Office of Coal Seam Gas, which then suspended the drilling.

Metgasco claimed the suspension reflected concerns about protests by activists that had no interest in consultation over the project.

The firm has yet to prove commercial reserves at Rosella. It may face challenges in developing the project because of reduced gas demand forecasts for NSW.

The Australian Market Energy Operator has forecast that industrial, residential and commercial gas consumption in east Australia will fall by 5pc between 2015 and 2033, compared with a previous forecast of a 38pc increase over the period.