November 19, 2012
Controversial underground coal gasification company Cougar Energy announced this morning that it is holding confidential discussions with the State Government involving its UCG trial site at Coolabunia.
Cougar says the discussions involve its Supreme Court damages claim against the government and the company’s challenge in the Queensland Planning and Environment Court.
The announcement follows the release in September of a scathing report from the Queensland Ombudsman highlighting departmental mix-ups and critical decisions in the lead-up to Cougar Energy starting its UCG trial.
In a statement released to the ASX this morning, Cougar CEO Rob Neill said:
“Cougar Energy Limited advises that it is engaged in confidential ‘without prejudice’ communications with the Queensland Government to resolve each of the Queensland Supreme Court proceedings (the damages claim) and the Queensland Planning & Environment Court proceedings (challenging the government department’s requirements with respect to the Kingaroy site), as a result of which the previous court timetable in the damages claim will be suspended until 29 January 2013.
“Cougar Energy will make a further announcement to the market following the outcome of those communications.”
Cougar Energy is suing the State Government – and three government officials – for more than $34 million in damages.
The company, whose UCG trial at Coolabunia was not allowed to re-start after a well failure in 2010, filed proceedings in the Queensland Supreme Court in October 2011 seeking compensation.
Cougar named three Department of Environment and Resource Management (DERM) executives in the action, alleging “negligence and breach of statutory duties” in their administration of the Queensland Environmental Protection Act.
Cougar company chairman Malcolm McAully said at the time Cougar Energy had received legal advice that the shutdown of the Kingaroy UCG project was unreasonable and extreme. He said it had inflicted severe losses on the company and its 7500 shareholders.
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During the State Election campaign, southburnett.com.au spoke to now-Premier Campbell Newman in Kingaroy about the future of the Cougar Energy project at Coolabunia.
Mr Newman said he could not talk too much about the project as it was subject to a court case but he said the Labor Party had put the project in place and they should be ones to get the blame if the court should find the company had any legal rights.
The following day, Mr Newman reiterated an LNP Government would not support a return of the UCG trial to the Kingaroy area.
“There are far better areas for carefully monitored trials of Underground Coal Gasification technology, and we support these trials in other areas, but we do not, and will not, support them at Kingaroy,” he said.
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