July 26, 2013
Cougar Energy advised the ASX today that is has dropped its civil actions against the State Government.
Cougar had been suing the government – and three government officials – for more than $34 million in damages following the shutdown of its controversial underground coal gasification (UCG) trial near Coolabunia.
The trial was not allowed to re-start after a well failure in 2010.
Cougar filed proceedings in the Supreme Court in October 2011 seeking compensation.
It named three then-Department of Environment and Resource Management executives in the action, alleging “negligence and breach of statutory duties” in their administration of the Queensland Environmental Protection Act.
The company had also launched an appeal in the Planning and Environment Court.
The ASX notice said “no payments are to be made by Cougar Energy to the defendants or received from the defendants upon the discontinuances being filed”.
Cougar Energy CEO Rob Neill said the ending of the civil actions was a key part of the on-going strategic review by the Board “as it looks to restore confidence in the company’s growth strategy and restore value for shareholders”.
He said Cougar would “continue to work with the Queensland Department of Environment and Heritage Protection to agree a plan of rehabilitation for the Kingaroy site”.
Mr Neill said Cougar had a financial assurance posted with the department for the rehabilitation works.
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The discontinuation of the civil actions has not cleared Cougar Energy of all its court actions in relation to the Coolabunia project.
Three charges alleging Cougar breached the Environmental Protection Act have been adjourned in the Kingaroy Magistrates Court.
The ASX statement says these are now listed for hearing in the Brisbane Magistrates Court in September.
At the same time, Cougar announced it had successfully raised $719,674 through the placement of more than 239 million shares at 0.3 cents / share.
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