Adam Gilligan, the Hunter manager of the New South Wales Environmental Protection Authority, said there was no breach of environmental legislation or environment protection licences by AGL or Transpacific in relation to the matter.
The investigation followed what could be called an activist stakeout operation.
“The destination of 600,000 litres of the so-called flowback water containing chemicals used in hydraulic fracturing only came to light after an anti-CSG activist pursued two Transpacific tankers from Gloucester near the mid-north coast of NSW down to Newcastle,” the Sydney Morning Herald reported.
“Before that, AGL had not disclosed publicly where it planned to dispose of water from its four pilot gas wells in the region.”
With the state election looming on March 28, Opposition Leader Luke Foley criticised the EPA for "a weak and insipid decision that should send a shiver down the spine of every local community seeking to protect the sanctity of their waterways".
AGL welcomed the finding.
"The investigation confirms AGL has had, and continues to have, proper arrangements in place for the lawful treatment and disposal of flowback water from the Waukivory Pilot Project near Gloucester," an AGL spokesman said.
The EPA decision has not altered Hunter Water’s position as it issued Transpacific a default notice for four breaches of its trade wastewater agreement – a contract outside the EPA’s jurisdiction.
“These include but are not restricted to, Transpacific’s admission that it discharged treated flow-back water to Hunter Water’s sewer network,” it said as it gave Transpacific until Friday to reveal sample results of the before and post-treated flowback water.
“Fraccing chemicals include monoethanolamine borate, traces of which have been detected at a monitoring bore some 400 metres from its [AGL’s] pilot wells,” the Sydney Morning Herald reported.
“Another chemical, hydroxymethanesulfonate, also known as THPS, was of particular concern to Hunter Water because it serves as a biocide that could disrupt sewage treatment.”
