A MAJOR oil company has won an exploration permit which flags the use of a controversial mining technique underneath Western District farmland.
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Beach Energy and its joint venture partner Somerton Energy have won the right to explore a permit area north of Casterton, in the Dergholm district, with a licence to engage in fracking.
The state government issued a number of exploration permits across Victoria in August, with the gazette papers revealing that the Beach-Somerton venture wants to explore the possibilities of fracking in the PEP171 zone.
A moratorium on fracking is presently in force in Victoria and Beach Energy has insisted the company has no plans to fracture stimulate “any well” in the Dergholm zone while the ban is in place.
Beach Energy told The Standard yesterday that no firm plans were in place, with a timeframe for exploration yet to be worked out by the partners in the venture.
Separate exploration licences have also been granted around Portland, as well as Penshurst-Mortlake districts, although both work plans do not list fracking as one of their objectives.
The news comes after the release of a report by former Howard government minister Peter Reith last week, who recommended the fracking moratorium be lifted due to a looming domestic gas shortage.
A spokesman for Deputy Premier Peter Ryan said the gazette listing does not constitute a green light for fracking.
He said the coal seam gas moratorium would remain in place and speculation over the issue was unwarranted.
“It is disappointing that Labor has aimed to mislead on this issue,” the government spokesman said.
Opposition resources spokesman John Lenders said the state government had given tacit approval to fracking, with the report lending added impetus to the push.
“The state government has clearly made up its mind that fracking should go ahead in Victoria by issuing a permit ahead of receiving the report,” he said.
“The process this government has undertaken has been nothing short of a joke.
“The permit was issued months ago and the announcement was buried in the government gazette on the eve of the Melbourne Cup long weekend.”
?with the AUSTRALIAN ?FINANCIAL REVIEW
