More than 560,000 hectares of a Petroleum Exploration Licence (PEL) in the New South Wales Northern Rivers will be bought back, under a state government scheme.
The controversial PEL 445, which covers areas around Kyogle, Lismore, Nimbin and Evans Head, has been in the hands of mining services provider AJ Lucas Group.
It looked as though the region would miss out on the scheme with the first phase of the program closing earlier this month, however the Baird government announced the pending purchase this morning.
Resources and Energy Minister Anthony Roberts says the decision forms part of the state government’s Gas Plan, which includes an overhaul of the sector’s licences.
“Under the NSW Gas Plan we have now reduced the footprint of CSG from more than 60 per cent of the state to less than 8 per cent,” he said.
