What is coal seam gas water?

Coal seam gas water is groundwater necessarily or unavoidably brought to the surface in the process of coal seam gas production. 

The amount of coal seam gas water produced during coal seam gas development varies both with the location and stage of the production cycle. Likewise, the quality of coal seam gas water is highly variable but it frequently contains high quantities of salt and other contaminants that limit the water’s use without treatment.

Why was the policy developed?

Presently across Queensland, significant quantities of water are being produced in the course of coal seam gas water exploration and production.   

In the future, coal seam gas water production is expected to expand as a result of:

• government policies intended to shift electricity production from coal to gas-fired generation such as the Queensland Gas Scheme and Climate Smart 2050
• the need to meet the production shortfalls arising as conventional natural gas resources decline
• any additional demand created by proposed liquefied natural gas (LNG) projects.   

This increased coal seam gas water production will see a large increase in the volume of coal seam gas water requiring treatment and disposal.

Coal seam gas water has the potential to cause environmental harm if released to land or waters through inappropriate management. Without treatment beneficial uses for coal seam gas water water are limited.

Currently most coal seam gas water is disposed of in evaporation ponds ranging from 1 to 100 hectares in area. Limited quantities of untreated coal seam gas water are used for livestock, coal washing and related petroleum activities.

There are widespread concerns about evaporation ponds and the long-term legacy associated with salt stored in them. Also, as the CSG industry expands, there are concerns about the groundwater and landscape impacts of coal seam gas extraction and coal seam gas water disposal methods.

A number of coal seam gas producers have trialled other beneficial uses including the use of treated coal seam gas water to augment town water supplies, as cooling/blowdown water in power stations and for irrigation and aquaculture.

The Queensland Government has identified a significant imbalance between the volume of coal seam gas water likely to be produced over the next 30 years and the demand for this water by potential users. In this context, the impacts on the environment under current practices are likely to be significant.

Given the range of concerns in relation to the management of coal seam gas water, it is essential that the government provides a clear policy direction for the treatment and disposal of coal seam gas water, and the role the government wishes to play in facilitating greater beneficial use.

What policy options did the government consider?

In developing the policy, the government considered the impact of a continuation of current practices and requirements. This option presents significant ecological risks to landscapes, soil profiles, surrounding aquifers and nearby streams, particularly when considering the likely expansion in water volumes resulting from future LNG projects. Further, it will not maximise beneficial use of coal seam gas water.

A number of coal seam gas producers have claimed the current regulatory environment does not support beneficial use of coal seam gas water. The government gave consideration to relaxing current requirements to further encourage beneficial use as the preferred option of disposal.

In considering this issue, the government found the current regulatory regime provides for beneficial use of coal seam gas water and has committed to work with coal seam gas producers to facilitate a greater understanding of regulatory requirements. The government also found that, given the potentially harmful nature of untreated coal seam gas water, it would be inappropriate to relax current regulatory requirements. This would be likely to increase risks to agricultural and ecological values, through an inability to regulate impacts.  

The chosen policy response tightens current requirements to achieve environmentally sustainable outcomes and encourage greater beneficial use of coal seam gas water. It responds to the significant increase in anticipated coal seam gas water volumes and associated management risks. The policy represents a balanced response to the need for coal seam gas producers to dispose of coal seam gas water appropriately, while also considering the need for environmental protection and the interests of regional communities and agricultural stakeholders.

The CSG water policy

The Queensland Government has identified its policy position in relation to coal seam gas water. The diagram below provides an overview of the new policy framework.

Hint: Click on the diagram to enlarge it.

Key features of the policy include:

• discontinuing the use of evaporation ponds as a primary means of disposal of coal seam gas water. Transitional arrangements will be developed by the government in consultation with industry to address issues with existing evaporation ponds. Remediation of existing evaporation ponds is to occur within three years.
• making CSG producers responsible for treating and disposing of coal seam gas water. Unless the producers use direct injection of coal seam gas water or have arrangements for environmentally acceptable direct use of untreated coal seam gas water, coal seam gas water must be treated to a standard defined by the Environmental Protection Agency (EPA) before disposal or supply to other water users.

The policy also includes a number of additional changes to the current requirements including:

• ponds necessary for water aggregation and the storage of brine from treatment facilities are to be fully lined to a standard determined by the EPA
• an associated coal seam gas water management plan is to be incorporated into the environmental management plan required for a level 1 environmental authority application
• water which is in excess to that which can be directly injected or beneficially used is to be aggregated for disposal. 

More work is to be undertaken to determine policy related to disposal and aggregation of coal seam gas water. The government wants the coal seam gas industry and community groups to help shape it’s final policy and is seeking comment from interested parties on the following two issues:

• appropriate remediation action for existing evaporation ponds
• the circumstances under which industry should be required to cooperate to develop and fund a coal seam gas water aggregation and disposal system (or systems) to deal with coal seam gas water which cannot be directly injected into existing aquifers or has no immediate beneficial uses.

Next steps

The government is currently finalising a discussion paper which will provide an opportunity for the community to make informed comment on relevant parts of the policy. This discussion paper will be available later this year.

Should you require further information on the policy decisions which have been determined or wish to make comment on the two issues outlined above, please contact the Coal Taskforce at coaltaskforce@dip.qld.gov.au

Department of Infrastructure and Planning
Infrastructure and Economic Development Group
PO Box 15009 City East QLD 4002