It is reported that Santos Ltd has responded to criticism over its agreement with the NSW state government to allow coal seam gas mining in the Pilliga State Forest and saying it will review its plans in the region but that it feels its agreement is fair to the state and taxpayers.

The NSW Greens have slammed the agreement which Santos inherited when it bought Eastern Star Gas in November and that allows the miner to access the Pilliga State Forest in NSW until 2040 at a cost of USD 2,500 per year for every active CSG well in the area.

Santos had said it plans to drill 1,100 wells in the region.

Mr Jeremy Buckingham NSW Greens MP said in a statement that “The revelation shows how little NSW taxpayers are getting for the massive amount of damage this industry is doing to the Pilliga Forest and potentially our waterways and aquifers.”

He said that “Santos stands to make billions by pock marking the Pilliga forest with gas wells if its proposal for 1,100 coal seam gas wells is approved.”

The miner responded by saying the USD 2,500 fee only covered land access and would be accompanied by millions in royalties.

Santos said in a statement that “If we develop our NSW CSG business successfully, Santos estimates these royalties will exceed AUD 150 million a year over more than 20 years.”

(Source from www.businessspectator.com.au)