Australian State of Victoria Halts CSG Exploration

Australian state of Victoria put on hold hydraulic fracturing and also decided not to issue new coal seam gas exploration licenses.

Various media reports have said that the moratorium until a national framework has been agreed upon, which might not be in place until 2013.

Premier Ted Baillieu insisted Victoria was not backing down from its agreement in June to explore CSG projects, The Australia reported. He said it was “common sense” to not go ahead with fracking until a national framework has been approved, the newspaper further added.

Currently, there is no coal seam gas production in the state, but Victoria has issued 24 licenses.

The Australian Petroleum Production & Exploration, which represents the coal seam gas industry, said the policy would send "the wrong message to investors.", Reuters said.

Australia has witnessed protests by local communities and landowners over fracking, including fears of drinking water contamination, damage to the environment and food production.