Metgasco Seeks Damages from NSW Government Over Drilling Ban

Metgasco Limited will seek damages from New South Wales government over the Rosella well suspension decision.

“We would now like to meet with government to discuss the damage caused to Metgasco as a result of the suspension decision and the future of the gas industry in the Clarence electorate.  We would prefer to settle our claim for damages out of court.  We are also keen and ready to drill the Rosella conventional gas exploration well and wish to confirm that the NSW government will maintain law and order,” Metgasco’s Managing Director, Mr Peter Henderson said Monday.

In May last year, the NSW government's Office of Coal Seam Gas suspended Metgasco's permit to test drill a tight sands gas well on a Bentley property. The government said that the decision was taken on the basis that Metgasco had not met its obligations to consult with the community.

Last month the suspension was overturned by New South Wales Supreme Court.

Metgasco on Monday said that the NSW government will not appeal the Supreme Court’s decision. The government had until 22 May to lodge an appeal.

“NSW needs a gas industry and the NSW Government needs to show the investment community that businesses will be encouraged and licence rights honoured,” Henderson said.