The assessment is then likely to be on public exhibition by mid November for at least 30 days. Due to the constraints of the Christmas period, the company has requested that submissions in relation to the project be accepted until mid January 2010.

The lodging of the environmental assessment comes as the company continues its exploration program in the Gloucester basin, with eight additional core holes to be drilled later this year and into 2010, among them one adjacent to the sewage treatment works, another near Gloucester Golf Course. The other drill holes are in the Glen Road, Spring Creek Road and Wards River areas.

A company spokesman said the drill hole near the treatment works would be subject to 12 hour drilling, rather than 24 hour drilling, to take into account its location close to town. AGL said the aim of the current round of exploratory drilling was to gain a better understanding of the gas reserves in the basin as historical data on the basin has focused on coal, not gas.

The company will also conduct a two-dimensional seismic data program in December. The program will take around 10 days to complete and will be undertaken in consultation with landholders in the areas where the work will be carried out.

In January, three-dimensional seismic studies will be undertaken over the proposed Stage 1 development area which covers approximately 50 square km

“We’ve held landholder group meetings to explain what it’s about and will hold individual consultations with each landholder,” the spokesman said.

The work will take around three months to complete.

“Due to the complex geology of the basin we need to understand the geology and the fault lines to work out where we can best place wells.

“It’s about due diligence to more accurately determine where wells should be positioned,” the spokesman said.

As part of the development AGL will construct a pipeline from Gloucester to Hexham and the company said to date it has spoken to all landholders along the route, with around 50 percent of landholders to date having signed easement agreements.

The site of the proposed central processing facility that forms part of AGL’s application to commercially produce gas from the basin is still under negotiation but an in principal agreement has been reached on land near Gloucester Coal’s Stratford mine site.