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19 December, 2003] QUEENSLAND GOVERNMENT GAZETTE, No. 80 1271

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19 December, 2003] QUEENSLAND GOVERNMENT GAZETTE, No. 80 1271 19 December, 2003] QUEENSLAND GOVERNMENT GAZETTE, No. 80 1271 DEPARTMENT OF STATE DEVELOPMENT copy State Development and Public Works Organisation Act 1971 NOTICE The Governor in Council has approved the Tarong Power Station as shown on the map annexed as Schedule A, as an infrastructure facility that is of significance, particularly economically or socially, to Queensland and the Wide Bay-Burnett region. Nanti ngo-Maidenwell Road 4 1272 QUEENSLAND GOVERNMENT GAZETTE, No. 80 [ 19 December, 2003 State Development and Public Works Organisation Act 1971 STATEMENT GIVING REASONS (INFRASTRUCTURE FACILITY OF SIGNIFICANCE) . NOTICE (No 1) 2003 Short title 1. This notice may be cited as the Statement Giving Reasons (Infrastructure Facility of Significance) Notice (No 1) 2003. Statement Giving Reasons (Infrastructure Facility of Significance) [s.125(5) of the Act] 2. Paul Fennelly, Coordinator-General, pursuant to Section 125(5) of the State Development and Public Works Organisation Act 1971 has prepared a statement giving reasons, as adopted by the Governor in Council, and as set out in the Schedule below as to why the Tarong Power Station infrastructure facility was approved by the Governor in Council by gazette notice on 19 December 2003 pursuant to Section 125( 1)(f) of the State Development and Public Works Organisation Act 1971 as an infrastructure facility having significance, particularly economically or socially, to Queensland and the Wide Bay - Burnett region, being the region in which the infrastructure facility is to be constructed. SCHEDULE STATEMENT GIVING REASONS WHY THE GOVERNOR IN COUNCIL APPROVED BY GAZETTE NOTICE ON 19 DECEMBER 2003 AN INFRASTRUCTURE FACILITY AS HAVING SIGNIFICANCE UNDER THE STATE DEVELOPMENT AND PUBLIC WORKS ORGANISATION ACT 1971 1. Decision On 19 December 2003, the Governor in Council approved by gazette notice under section 125(l)(f) of the State Development and Public Works Organisation Act 1971 ("SDPWO Act") the Tarong Power Station as having significance, particularly economically or socially, to Queensland and the Wide Bay - Burnett Region, the region in which the infrastructure facility is to be constructed. 2. Introduction On 3 December 2003, the Coordinator-General received an application , dated 1 December 2003, from Tarong Energy Corporation Limited ("Tarong Energy ") requesting that the Tarong Power Station be approved by the Governor in Council as an infrastructure facility having significance under section 125(1)(f) of the SDPWO Act. The Tarong Power Station facility is comprised of the electricity generating units and associated facilities including the ash disposal dam, coal conveyor and storage systems and cooling water dams. Section 125 (1)(f) of the SDPWO Act provides that the Coordinator-General may take land for the purposes of an infrastructure facility that is: (a) of significance, particularly economically or socially, to Queensland or the region in which the facility is to be constructed; and (b) approved by the Governor in Council, by gazette notice, as having that significance. Pursuant to section 125(2) of the SDPWO Act, in considering whether an infrastructure facility would be of economic or social significance, the potential for the facility to contribute to community wellbeing and economic growth or employment levels must be taken into account. In accordance with section 125(3) of the SDPWO Act, in assessing such potential, the contribution the infrastructure facility makes to agricultural, industrial, resource or technological development in Australia, Queensland or the region in which the appropriate infrastructure facility is to be constructed is a relevant consideration. 19 December, 20031 QUEENSLAND GOVERNMENT GAZETTE, No. 80 1273 3. Evidence or Other Material on Which Findings of Material Questions of Fact are Based In forming the decision to approve the infrastructure facility as having significance, particularly economically or socially, to Queensland and the region in which the facility is to be constructed, the Governor in Council had regard to the following materials: • Letter dated 1 December 2003 from Mr Andrew Pickford, Chief Executive Officer of Tarong Energy to the Coordinator-General enclosing Tarong's application requesting that the Tarong Power Station be approved by the Governor in Council as an infrastructure facility having significance under section 125(1)(f) of the SDPWO Act; • Department of State Development Briefing Note dated 16 December 2003 to the Honourable Tom Barton MP, Minister for State Development, containing the Coordinator-General's recommendation in relation to whether the Tarong Power Station is an infrastructure facility of significance under Section 125(l)(f) of the SDPWO Act; • Extract from State Development and Public Works Organisation Act 1971, sections 125 and 174; and • Appendix A of SDPWO Act Guidelines for acquisition of land for infrastructure projects by persons other than the state, September 1999; • Appendix C of SDPWO Act Guidelines for acquisition of land for infrastructure projects by persons other than the state, September 1999; • Appendix C of SDPWO Act Guidelines for consultation and negotiation with native title interests, September 1999; • Centre for Australian Financial Institutions, Economic Impact of Tarong Energy on the Wide Bay- Burnett Region. Prepared for Tarong Energy Corporation Ltd. • Letter dated 11 June 2003 to Tarong Energy from the Environmental Protection Agency enclosing the Compensation Report for Revocation of Part of Yarraman State Forest. • Letter dated 11 December 2003 to Tarong Energy from the Queensland South Representative Body Aboriginal Corporation. • Tarong Energy, Tarong Energy Annual Report, 2002/2003. • National Electricity Market Management Company, 2003 Statement of Opportunities. • Powerlink Queensland, Annual Planning Report 2003. • National Institute of Economic and Industry Research , The Outlook for the NEM States to 2012-13. • Letter dated 3 December 2003 from the Coordinator-General inviting submissions from persons affected by the infrastructure facility. • Five submissions received from affected persons in response to the Coordinator -General's letter dated 3 December 2003 inviting submissions from persons affected by the infrastructure facility. • Explanatory Memorandum to Executive Council Minute in respect of the Tarong Power Station. 4. Findings of Material Questions of Fact From the material to which regard was had the following findings of fact were made. 4.1 Type of Infrastructure Facility Proposed Including Land on Which the Facility is to be Located The application from Tarong Energy identified the components of the Tarong Power Station as: (i) 4 x 350MW coal fired electricity generating units; and 1274 QUEENSLAND GOVERNMENT GAZETTE, No. 80 [19 December, 2003 (ii) ancillary facilities including a coal conveyor and storage systems, cooling water dams, 15MW emergency gas turbine and an ash dam. Details of the infrastructure facility are set out below: Tarong Power Station is located 180 kilometres north-west of Brisbane. The area of the infrastructure facility includes a 1388.5 ha site, owned by Tarong Energy, and described as Lot 1 on SP138386 and Lot 90 on Crown Plan FY2695, and 47 ha of SF289 on FTY 1640 (known as Yarraman State Forest) in the Shire of Nanango. The first of Tarong Power Station's four generating units became operational in May 1984 and the station was completed in 1986 at a cost of more than $1.2 billion. Coal for the power station is principally sourced from the neighbouring Meandu Mine owned by Pacific Coal Pty Ltd. The station burns up to 5.5 Mt per annum of coal depending on coal quality and generation load. Raw water for cooling purposes is sourced via water pipelines from the Boondooma and Wivenhoe dams. Tarong Power Station supplies low-cost, reliable electricity to the National Electricity Market (NEM). On average, Tarong Power Station generates about 25% of the electricity consumed in Queensland. The ash dam is an integral part of the Tarong Power Station. Furnace and fly ash is collected from various parts of the Tarong Power Station and deposited in the ash dam which is approximately 2 km north of the generating plant. Ash produced from Tarong North Power Station is also disposed of in Tarong Energy's ash dam under the terms of a Site Service Agreement between Tarong Energy and the join venture owners of Tarong North, Tarong Energy (via a special purpose subsidiary, TN Power Pty Ltd) and TM Energy (Aust) Pty Ltd which is owned by Tokyo Electric Power Company (TEPCO) and Mitsui & Co. Ltd. The ash dam will reach capacity in mid 2005. Tarong Energy is proposing to rectify this situation by augmenting the ash dam by raising the spillway crest from the current RL 434 to RL 435.9 in which will increase the storage capacity of the ash dam by 9.5%. These works will result in some additional flooding of adjacent State Forest land during large flooding events. The works will need to be completed by no later than mid 2005. These augmentation works will provide an interim solution for ash disposal while long term solutions are being developed by Tarong Energy. 4.2 Demand Projections for the Services Associated with the Infrastructure Economic forecasts prepared by the National Institute for Economic and Industry Research for the National Electricity Market Management Company ("the NEMCO Report") in June 2003 enable all states comprising the National Electricity Market (NEM) to prepare load projections using a consistent economic scenario. The NEMCO Report indicates that Queensland's compound growth rate is well above the expected national trend with the State's Gross State product ("GSP") between 2001/2 and 2006/7 averaging 3.9 per cent. The NEMCO Report estimates Queensland GSP growth from 2001/2 - 2012/13 will be at an average rate of 3.6% per annum. For the year 2005/6, the NEMCO Report indicates that investment associated with large resources projects is expected to induce a strong upturn in the Queensland GSP. Further, NEMCO has forecast a summer reserve deficit of 59MW for the 2005/6 while the demand forecast for 2007/8 is expected to exceed supply.
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