Victoria declares hydraulic fracturing moratorium

The Victorian government imposed a moratorium on hydraulic fracturing pending legislative changes to implement new standards for the oil and gas industry.

The ban is not expected to impact any current leaseholders.

Victorian Resources Minister Michael O’Brien said the hold would remain effective until implementation of a national regulatory framework for regulating coal seam gas and fracing.

The Australian Petroleum Production and Exploration Association (APPEA) said Victoria was ignoring examples of positive CSG development, particularly in Queensland.

The moratorium could deter investment, APPEA said.

In June, ExxonMobil Australia Pty. Ltd.'s Esso Ventures LLC announced a joint venture with privately held Ignite Energy Resources Ltd. to possibly develop CSG in Gippsland basin of southeast Victoria (OGJ Online, June 7, 2012).

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