Study cash for lignite impacts

Solid Energy has made a deal with the Gore District Council to help pay for a study of the impact of large-scale lignite developments in Eastern Southland.

A series of studies would cost about $400,000 but ratepayers would not have to pay the "lion's share", after Gore Mayor Tracy Hicks confirmed the council had made a deal with Government-owned coal company Solid Energy, which will make a "significant contribution" to costs.

Mr Hicks said the council wanted to be proactive and had commissioned background studies from several consultants to better understand how the district would be affected by lignite development projects.

The background studies would look at six areas - the social, economic, landscape, and ecological impacts, transportation modelling and infrastructure. These would form the basis of a district growth strategy and were expected to cost about $400,000.

Mr Hicks said the growth strategy, a 30-year blueprint for the district, had been driven by Solid Energy plans.

"Potential projects are of a scale and size that we haven't seen in this part of the country. We want to make sure we all understand the ramifications with projects of this size.

"It's not part of our usual programme so we see a place for Solid Energy to be a part of that funding," Mr Hicks said.

The strategy would be prepared over the next six months.

The funding would not compromise the council's independence when advocating for residents, he said.

Solid Energy new developments group manager Brett Gamble said the company recognised its plans for developing lignite resources would have significant economic, social and environmental impacts on the Gore district.

"Rather than commission separate overlapping studies, it makes sense for us to pool resources and contribute information and funds to the council's studies. This is something any large developer in the region would be expected to do," he said.

Solid Energy would not disclose how much it paid the council.

The company also planned a two-year feasibility study into a proposed coal-to-fertiliser plant, and would be making some of that work available to the council to assist in its planning.

• In the council's annual report for 2010-11, adopted at an extraordinary council meeting yesterday, expenditure by the regulatory department was $349,000 over budget while revenue was up by $251,000.

The report said the difference was from additional works done in relation to the assessment of the social and economic impacts of potential new energy in the district.

The council is budgeting for an extra $234,000 regulatory revenue in its 2011-12 annual plan. Legal and consultancy fees associated with planning for the large developments will cost the council almost $700,000 over two years.