Cougar Energy will fight a government order that it cease a controversial underground coal gasification project in southeast Queensland.
The Department of Environment and Resource Management announced on July 7 that no further coal gasification would be permitted at the project, near Kingaroy.
It made final a decision to suspend the trial in July last year, when traces of the cancer-causing chemical benzene was found in groundwater monitoring bores on the site.
The find angered locals, who have waged a campaign against the plant.
The department has asked Cougar to remove all infrastructure from the site, unless the landowner agrees to keep it.
It also ordered the company to treat and dispose of any contaminated water in surface storages and clean up groundwater.
In a statement to the Australian Stock Exchange today, Cougar Energy said it had received formal notice of DERM’s decision on July 19.
“Cougar Energy Limited (ASX: CXY) advises that it will seek a review of the Queensland government’s decision to restrict the company’s activities at the Kingaroy underground coal gasification trial site,” it said.
The company said it had until August 2 to seek the internal review by DERM.
The department has also charged Cougar Energy with breaking the conditions of its environmental approval.
It’s accused of breaching operating permits by contaminating the site and failing to promptly notify authorities.