QCoal expansion at Sonoma mine: farmer Garry Reed faces financial ruin after failed legal challenge

Updated

A north Queensland man faces financial ruin after a failed legal bid to stop the expansion of a coal mine owned by the state's richest man.

Supporters say the plight of Collinsville farmer Garry Reed highlights the growing difficulties faced by people who try to stop mining development in resources-dependent Queensland.

Mr Reed took on mine owner QCoal and the State Government over a plan to divert Coral Creek, which runs through land owned by the mine and Mr Reed's property.

The farmer, who relies on the creek for half of his water, lost an appeal in the Land Court in February and had costs awarded against him this month.

"There's certainly a risk ... I risk losing the family farm. That's been in the family for almost 100 years," he said.

"I've put that at jeopardy."

QCoal, owned by reclusive mining billionaire Chris Wallin, wants to dig up the coal underneath the creek to extend the life of the Sonoma mine by six to eight months.

Mr Wallin declined to be interviewed and the company would not provide another representative.

The superintendent of Sonoma, David Nebauer, physically intervened in an attempt to stop ABC 7.30 filming the mine site from a public roadway, without explanation.

A Sunday Mail survey last year estimated Mr Wallin's personal wealth at $1.8 billion, making him richer than Clive Palmer.

The former state government geologist is one of the biggest donors to Queensland's ruling Liberal National Party (LNP), giving $120,000 through two of his companies just before the 2012 state election.

The creek diversion was not part of the initial plan for the Sonoma mine.

Local residents say they were assured by the company at a public meeting that it would not be touched.

In QCoal's initial advice statement in 2005, the company acknowledged the environmental and heritage value of Coral Creek and said it would build a buffer zone to protect it from the mine.

When the company proposed diverting the creek in 2010, the state government told QCoal it did not require an environmental impact statement, even though the then-department of environmental resource management said the assessment was one where "the level of environmental harm is likely to be significantly increased".

Mr Reed said allowing the diversion felt "like a betrayal" after the company's previous assurances.

"That is really disappointing to be honest, because I trusted the mining company and I trusted the government to do the right thing and properly regulate," he said.

Expert questions quality of hydraulic modelling

A river morphology expert hired by Mr Reed, Dr Scott Rayburg of Swinburne University, said the plan posed risks to the local environment that would persist for "several human lifetimes".

These included increased erosion, the loss of its aquifer and resultant damage to rare remnant vegetation, including endangered tree species.

He said other creek and river diversions he knew of in Queensland had been problematic.

Dr Rayburg's main challenge in court was to the quality of QCoal's hydraulic modelling, on which it relied to show there would be no changes downstream as a result of the diversion.

"It's shockingly poor. It's probably the worst piece of work I have ever seen," he said.

But the Queensland Land Court rejected much of Dr Rayburg's testimony because, unlike QCoal's experts, he is not a registered engineer in Queensland.

"They felt that my opinion carried less weight, even though I'm an expert in hydraulic modelling and fluvial geomorphology," Dr Rayburg said.

"When you look at the quality of the work that the registered engineers in Queensland did, I think it should be calling into question that requirement rather than calling into question my credentials."

Court rules part of appeal 'frivolous'

Awarding some of QCoal's costs against Mr Reed, the Land Court ruled part of his appeal was "frivolous".

It comes as the Environmental Defenders Office, a free community legal service that helps people like Mr Reed, warns it will have to close within 12 months unless it secures significant new government or private funding.

The EDO is lobbying for the restoration of federal funding, cut by the Coalition Government and due to end in July.

Queensland EDO principal solicitor Jo Bragg said there were "thousands of Gary Reeds" in the state who were at a big disadvantage to the mining industry in terms of access to funds and expert advice.

"There [are] Gary Reeds near mining sites and proposed mining sites and all the way along the rail lines up to and including the ports where the big coal stockpiles are," she said.

"They affect thousands and thousands of people who don't have the resources to hire lawyers and consultants to defend their interests."

Michael Roche, chief executive of the Queensland Resources Council, a mining industry lobby group, disagreed, saying the "anti-coal movement" was very good at marshalling resources to support objectors.

"The Environmental Defenders Office, pro-bono barristers and a whole range of experts seem to come out of the woodwork to support these objections," he said.

"The system enables just about anybody to rock along to the Queensland Land Court and lodge an objection and have that objection heard."

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Topics: courts-and-trials, land-management, coal, mining-environmental-issues, mining-industry, states-and-territories, rural, mining-rural, collinsville-4804, qld, australia, bowen-4805, mackay-4740, townsville-4810

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