Santos Plans New Water Treatment Facility in New South Wales

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Santos Limited (ASX:STO) (Adelaide, Australia), one of Australia's largest gas companies, has started planning a new water treatment facility in New South Wales that will allow for the removal and remediation of the troubled Bibblewindi Water Management Facility, which is in the Pilliga Forest.

The Bibblewindi site is one of several that Santos shut down shortly after acquiring them through its purchase of Eastern Star Gas. The facility had a long history of operational problems, including a major leak in 2010, that sparked an investigation by the Environmental Protection Agency. Environmental groups have long pushed for the closure of the facility because of its location in the Pilliga Forest, the largest inland forest in New South Wales.

The proposed Leewood Water Treatment facility will be located outside the boundaries of the Pilliga Forest, approximately 24 kilometres southwest of Narrabri, New South Wales. Phase I of the project involves the construction of a 300-mega-litre water pond, a 300-mega-litre brine pond, and two high-pressure pipelines to transfer the water and brine from the existing Bibblewindi Water Management Facility, approximately 15 kilometres to the south. Additional surface infrastructure, including a water distribution manifold, water pump skids, local power supply and water holding tanks, also are part of the project.

Santos has not yet applied for government approval for Phase II of the project, but planning for this is expected to commence shortly after the completion of Phase I. Santos is proposing that Phase II constitute the construction of a reverse osmosis plant, brine concentrator and brine crystalliser to process and treat water produced from Santos Coal Seam Gas projects operating in the area.

"Santos has committed to the community that we will operate at a high standard, and the most effective way to do that over the long term is to build a new water treatment plant," said Santos' Manager of Community and Government Relations, Sam Crafter.

Santos has committed more than $17.4 million (AU$17 million) to remediation work in and around the Pilliga Forest. When the Pilliga remediation work is complete, eight water storage facilities will have been removed and the sites remediated; more than 20 existing lease sites will have been rehabilitated, including the removal of many disused sumps; six over-cleared sites will have been rehabilitated; and more than 30 wells will have been decommissioned and rehabilitated.

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