A Coal Seam Gas Cartel ?  

UCG hopeful Linc has fled to South Australia but seems to be leaving a cloud of litigation behind, with the Curious Snail reporting that they are alleging the CSG industry has formed a cartel - Origin, Queensland Gas, Santos accused of coal seam gas cartel.

THE rich coal seam resources of Queensland's Surat Basin have ignited a bitter feud, with claims of collusion between our biggest energy players. The Courier-Mail has learnt three of the biggest players in coal seam gas (CSG), Origin Energy, Queensland Gas and Santos, are the subject of a complaint to Australia's competition watchdog.

The trio are accused of acting as a cartel to freeze out a fledgling competitor for central Queensland's coal seam resources - the underground coal gasification (UCG) industry.

The State Government has also been implicated with claims the CSG companies acted after being secretly informed about a looming decision in their favour. It is alleged the corporate giants of CSG moved simultaneously recently to stymie negotiations with their UCG contemporaries.

The two industries have tenements over the same resources but are required to negotiate because they are licensed under different legislation - CSG requires a petroleum licence while UCG requires a mining licence.

ARROW Energy has signed an agreement with China's Bin Chang Mining to develop a coal bed methane project in Shaanxi Province.
Under the terms of the deal, if commercial volumes of gas are produced from the pilot program, the parties will enter into a formal joint venture to develop the area, the Australian coal seam gas producer said.

Arrow recently announced a joint venture with the Geological Survey of Xinjiang Autonomous Region, where first drilling is targeted for the second quarter of 2009.