Another unconventional gas company, DART Energy, is suspending all field operations in the state of New South Wales, Australia. It follows the recent withdrawal of another coal seam gas (CSG) company, Metgasco from NSW.
Like Metgasco, Dart Energy’s share price collapsed, despite winning their Fullerton Cove court case over CSG planing and assessment.
Both companies blamed in part, the introduction by the NSW State government of a 2 kilometre exclusion zone around residential areas, horse studs and vineyards.
This was a response to the massive community campaign driven by concerns over water and air pollution, structural damage to buildings and loss of house values.
DART Energy will slash 70 per cent of its workforce as it reins in costs in response to tighter government restrictions on coal seam gas projects.
Dart will suspend its field operations in NSW and focus on its overseas CSG projects, including those in Britain and China, instead.
It is axing 70 per cent of its workforce, taking the number of employees to 50, and slicing 60 per cent of its overall costs.
Dart will also suspend field operations at its Fullerton Cove project near Newcastle, despite the recent lifting of a court injunction on the company sinking exploratory wells.
The moves come after the NSW government in February announced tough new coal seam gas regulations, including a ban on CSG drilling near homes.
The federal government has also announced new environmental laws covering coal mines and CSG projects.”