(EnergyAsia, July 5 2011, Tuesday) — Australia’s Cougar Energy Limited has issued the following statement with regard to the Queensland state’s on-going investigation to alleged environmental violations at its Kingaroy underground coal gasification site since last July 15.

The ASX-listed company said it has “co-operated at all times” with the state government’s Department of Environment and Resource Management (DERM) during the course of the investigation and provided extensive technical material and third party expert reports to the agency under three environmental evaluations.

Last Friday (July 1), Cougar said it received notice that DERM had filed a complaint with the Magistrates Court alleging three environmental contraventions at the mine near Kingaroy town. The complaint alleges that Cougar had failed to properly instal a gas extraction well that complied with environmental standard, that it had released contaminants into a groundwater aquifer, and that it had failed to notify DERM as soon as reasonably practicable of a water monitoring test result.

While denying the complaint, Cougar said that if any of the allegations are proved, it may face fines as well as orders to undertake for rehabilitation, compensation and other costs.

“Test data provided to Cougar Energy and DERM has confirmed that there have been no concerns with water quality in local water bores. As the company responds to DERM’s allegations, it remains focussed on progressing its activities in China and Mongolia,” said Cougar Energy.