PERTH (miningweekly.com) – The New South Wales government on Wednesday announced that it would freeze all petroleum exploration licence applications (PELAs) and audit existing petroleum exploration licences as it reconsidered its options for coal seam gas (CSG) in the state.

Resources and Energy Minister Anthony Roberts said that the freeze would remain in place until September 26, while the government put in place a more comprehensive application process.

“We want an application process that sends a clear message that the Liberals and nationals government will only accept best practice standards,” Roberts said.

“Speculators or cowboys need not apply.”

The state government previously placed a number of restrictions on further CSG developments, introducing an exclusion zone to cover critical industry clusters, residential zones and seven rural villages and future growth areas.

Roberts said on Wednesday that the New South Wales government had already refused five PELAs lodged by Grainger Energy, which covered 43 100 km² of the Riverina.

“Grainger Energy has one owner/director, was formed just six days prior to lodging its application, has no history of conducting petroleum exploration activities and has submitted a manifestly deficient application.

“We have also issued a ‘show cause’ notice to Leichhardt Resources as to why its three PELs near Moree, across Nowra and between Bylong and Denham, should not be cancelled.”

Roberts said under the Petroleum (Onshore) Act, a petroleum title may be cancelled on a number of grounds, including contravention of conditions, failure to use the title area in good faith for the purpose for which the title was granted and for contraventions of the Act.

“The New South Wales government will not rule out rejecting further PELAs or cancelling PELs. It is clear that the PEL application process under the former Labor government was not up to scratch.”

“Labor handed out 39 PELs during its 16 years in office without due scrutiny and oversight.

“This is one of the worst examples of the former Labor government failing the people of New South Wales and we continue to clean up the mess that Labor left behind.”

Roberts added that effective immediately, the fee for a PELA would rise from A$1 000 to A$50 000.

“This sends a clear message that from the very start of the application process, the New South Wales government only wants reputable operators in this state.”