04.38 pm, Thursday May 24 2012

LNP rejects plan for CSG wells to pay rent

17:06 AEDT Fri Oct 7 2011
Petrina Berry
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The Liberal National Party has distanced itself from a backbencher's plan for coal seam gas (CSG) companies to pay land owners an annual lease fee of at least $10,000.

LNP Warrego MP Howard Hobbs says CSG companies intrude on Queenslanders' land and force farmers to work around their operations.

"You can't burn (on your land) where you want to because you'll blow up all the gas wells," Mr Hobbs told AAP.

"You can't farm where you want to farm because there's all these rigs in the road."

He said the landholder should receive a minimum annual lease payment based on the percentage of the value of the revenue that the gas wells produce on their property.

"The state government should legislate a minimum payment for an exploration well of about $10,000 and a production well of $15,000 a year."

Mining Minister Stirling Hinchliffe said this would lead to thousands of job losses and bring the state's economy to its knees.

"The LNP is touting a new policy to force gas companies to make massive payments, well in excess of what they already pay, to do any business in Queensland," Mr Hinchliffe said in a statement.

Mr Hobbs said it's his proposal and not the party's policy.

LNP leader Campbell Newman said in a statement Mr Hobbs was a "passionate advocate" for his local community.

The statement also said the LNP's coal seam gas discussion paper recently released makes it clear the party is determined to protect landholders' property rights for a better co-existence with the CSG industry.

An LNP media spokesman didn't respond to questions over whether it was strongly considering Mr Hobbs' suggestions.

 

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