In accordance with ASX Listing Rule 3.17A, attached is a copy of a notice received under section 249N of the Corporations Act on 14 March 2014 from 161 shareholders representing approximately 0.0475% of the Company's shares on issue requesting a resolution for consideration at the Company's Annual General Meeting on 16 May 2014.
Resolution under section 249N of Corporations Act for consideration at AGM
In accordance with ASX Listing Rule 3.17A, attached is a copy of a notice received under section 249N of the Corporations Act on 14 March 2014 from 161 shareholders representing approximately 0.0475% of the Company’s shares on issue requesting a resolution for consideration at the Company’s Annual General Meeting on 16 May 2014.
The Board respects the right of shareholders to requisition the resolution which seeks to move that the Company withdraw from the Narrabri Gas Project. The Board will address the resolution at the Annual General Meeting on 16 May 2014 to assure all shareholders including those who have signed the requisition that the Narrabri Gas Project is in the interests of the Company, its shareholders and the broader community.
The Board understands that the requisition has been promoted by The Wilderness Society as part of its anti-fossil fuels campaign. The Wilderness Society’s website states, “Our fossil fuels campaign seeks to keep globally significant reserves of oil, gas and coal in the ground by halting new large projects proposed in marine and terrestrial wilderness areas throughout Australia” http://www.wilderness.org.au/campaigns/fossil-fuels
The Board considers that it is in the interests of the Company, its shareholders and the broader community to continue with the Narrabri Gas Project for reasons which include the following:
- Natural gas is a safe and sustainable source of energy that is vital to the Australian economy and Santos has a proud 60 year history of extracting natural gas in a safe and responsible manner. Santos has environmental plans in place to protect the Pilliga and to ensure that the Narrabri Gas Project is developed in accordance with industry leading standards.
- The Narrabri Gas Project is an important part of Santos’ future pipeline of projects, providing an additional source of domestic gas supply, revenue and ultimately returns to shareholders.
- Development of new supplies of natural gas from coal seams (CSG) is an important part of the Company’s future growth plans with the great majority of existing natural gas reserves on the east coast of Australia being CSG. Failure to develop additional supplies of CSG will result in increased energy pricing to homes and businesses with a flow on impact on everyday standards of living and manufacturing competitiveness and sustainability to the detriment of NSW residents.
- Santos is, and continues to seek to remain, a leading supplier of natural gas to the domestic market. The Narrabri Gas Project is a key element of this strategy as it endeavours to supply between 25% and 50% of the natural gas used in NSW by homes, small businesses, major industries and electricity generators.
- The Narrabri Gas Project will generate significant revenue and value for shareholders as well as substantial economic benefits to Narrabri and the region through the creation of jobs, royalty payments to the State and via a Regional Community Benefit Fund that will invest millions of dollars in regional programs and infrastructure.
- Santos has broad support in the Narrabri region due to the community’s increased understanding of our ability to operate this project in a way that minimises the impact on both the environment, landowners and the broader community while delivering real benefits to the State and the region. The Narrabri Gas Project has been designated a “Strategic Energy Project” by the New South Wales Government recognising its importance to the New South Wales’ economy.
- The Narrabri Gas Project is currently subject to a substantial fear and misinformation campaign. The recent legacy holding pond incident at Bibblewindi is an example where the NSW Government and the EPA found that the leak was “small, localised and contained” and there was no harm to either humans or animals yet the incident has been portrayed as a major pollution event threatening drinking and irrigation water supplies. The NSW Government’s summary of the incident and its impacts can be found on its website http://www.csg.nsw.gov.au/__data/assets/pdf_file/0018/41535/FactSheet.pdf
The Board of Directors of your Company unanimously recommends that shareholders VOTE AGAINST the proposed resolution.