COONAWARRA vignerons and anti-gas mining campaigners have expressed disbelief that a proposed $12m conventional gas well will be drilled just a “stone’s throw” from established vineyards.
This follows Beach Energy announcing the location of its controversial Haselgrove 3 gas well, which will be about 8km south of Penola on state-owned forestry land.
The drilling site will be located near the boundary of the world famous Coonawarra wine district and adjacent the new $80m Union Dairy Company processing plant.
According to Beach Energy, the site will be visible from the Riddoch Highway when the rig arrives.
Coonawarra vigneron Steven Raidis yesterday expressed his disappointment the drilling site was so close to his winery’s established vineyards.
“We are concerned over any negative effects the drilling could have on the groundwater for ourselves and the rest of the Limestone Coast,” Mr Raidis said.
Limestone Coast Protection Alliance Merilyn Paxton also warned yesterday the drilling program would include “directional drilling” and called for the State Government to stop the project.
“This is not a conventional straight down well,” Ms Paxton told The Border Watch yesterday.
She claimed the drilling could spread underneath into adjacent private properties, which could affect groundwater and the environment.
Ms Paxton also raised concerns the drilling would begin in September and questioned if the pre-testing had been completed.
“We will take whatever steps we can to tell the State Government that we are pretty disappointed with the decision,” she said.
Prominent vigneron Dennis Vice – from Highbank Wines – yesterday accused both Beach Energy and the State Government of a lack of consultation with the community and the wine sector on the project and the location.
“The company nor the State Government have consulted with us – that is not fair,” Mr Vice said.
He claimed both the company and government wanted to limit the “questions and the exchange of ideas”.
Mr Vice debunked claims the gas drilling project would not affect the Coonawarra wine district.
“The proposed well is just outside the boundary – we want to protect our clean and green image,” he said.
But Beach Energy regional manager Glenn Toogood moved to ease concerns over the well’s location, which was less than a kilometre from the Riddoch Highway.
“This is not a new area Beach will be exploring in,” Mr Toogood said.
The company spokesperson also rejected claims the company was trying to conceal the project in the radiata pine estate.
“We are not hiding anything, it is the nature of the development,” Mr Toogood said.
The company official also stood by the company’s community consultation record, arguing it had held public information sessions across the region.
“As regional manager I am always available to talk to people on this issue,” he said.
Beach Energy chief executive officer Matt Kay said drilling would target both the Sawpit and Pretty Hill sandstones within Beach’s Petroleum Production Licence (PPL) 62, increasing the chances of producing gas.
“To target both formations we will reach a vertical depth of around 3900 metres and the well will be directionally drilled in order to achieve this,” Mr Kay said.
“As we have previously stated, this conventional well will not be fracture stimulated.”
He said the drilling activity was likely to commence in early September.
The company – which has been operating in the Otway Basin for more than 50 years – has received $6m in a State Government to drill in the basin to help shore up the state’s gas supply.
