PLANET Gas has denied it is conducting exploratory drilling at the Mittagong Sand Quarry, despite its project manager telling Wingecarribee Council it would start to drill in April.
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Planet Gas is exercising a coal seam gas lease held by Leichhardt Resources, which covers most of the Highlands, and has hired MBA Petroleum Consultants to determine if it should drill for gas along Wombeyan Caves Road.
The NSW Government has confirmed the project had no approval to conduct any exploration or seismic testing.
The Minister responsible, Steve Whan, said two Investment and Industry officers visited the quarry yesterday to confirm no drilling had taken place.
He said any firm that drilled without approval would have its licence removed.
Mr Whan said an application for seismic testing had been submitted and rumours of a drilling approval were politically motivated.
"These rumours are politically motivated and it's disappointing that whoever is spreading them has such flagrant disregard for the facts at hand," he said.
MBA approached landowners along the road before Christmas seeking to conduct seismic testing on the council-owned road.
Wingecarribee Council denied the request and now the firm is planning to conduct its exploration at the sand quarry.
Planet Gas issued a short statement saying it wasn't drilling and that Benedict Industries, which owns the quarry at High Range, hadn't given permission to drill.
Southern Highlands Coal Action Group convener Peter Martin said the situation was "bizarre".
He said a property across the road produced bottled water and any drilling could contaminate the linked Joadja Creek, which runs into Wingecarribee River and then Warragamba Dam.
The confusion started when MBA sent a letter to the council "as a matter of courtesy" on March 2 advising it of the "upcoming drilling of a single proposed exploration core hole".
The letter said the drilling would take 18 days and was part of the Review of Environmental Factors under the Environmental Planning and Assessment Act.
MBA told the council the well wouldn't be for production.
"Low evasion drilling fluid consisting of environmental benign additives for rheology will prevent contamination of aquifers," MBA said.
Sources close to the project told the News it was now in "limbo" until after the election.
People were protesting outside the quarry yesterday believing drilling was about to start.
Deputy Mayor Larry Whipper said MBA had deceived the council.
"The company has stooped to what is far from courtesy and closer to deception," he said.
