Councillors voted five to one (with one abstaining) to support a notice of motion by mayor John Rosenbaum omitting the energy company from future meetings of the Dialogue, which was set up by council in consultation with Land and Water Commissioner Jock Laurie.

Cr Rosenbaum said AGL’s decision to not inform the Dialogue about a chemical breach at the company’s Waukivory test side had been a “slap in the face” to council and the other Dialogue members. 

AGL detected toxic BTEX chemicals in flowback water at its Waukivory test side in mid-January but did not disclose the discovery to either a meeting of the Dialogue or the Environment Protection Authority for 12 days.

In a statement, the company said it would continue to liaise with council despite the decision to exclude it from the Dialogue.

“AGL is disappointed that the Gloucester Shire Council has made this decision to exclude AGL from the monthly Gloucester Dialogue,” a spokeswoman said.

“We believe in the work of the Dialogue, and we think that our role over the last 18 months has been worthwhile. 

“In the meantime our door will always be open to the council and the Dialogue, should they ask us to re-join this important roundtable meeting, or have any questions and about our Gloucester Gas Project and Waukivory pilot. Our commitment to listening to the community and sharing information is still our priority.”

Cr Tony Tersteeg said he had “had a gutful” of AGL’s lack of ability to disclose information to the community while Cr Aled Hoggett said he believed suspension from the Dialogue did not go far enough, calling for the company’s coal seam gas licence to be revoked.

But deputy mayor Katheryn Smith, who abstained from the vote, said she felt there was a need for AGL to have a presence in the Dialogue.

“The issue at hand is the lack of disclosure,” she said.

“AGL not being a part of the Dialogue is only going to discourage future community consultation. I believe they still need to be a part of it.”

Cr Jim Henderson, who voted against the motion, said the company had a right to investigate any breach before informing the public.

“AGL told us it was not unexpected that BTEX could be detected,” he said.

“Surely they have a right to investigate before going public.”

Cr Rosenbaum wrote to Mr Laurie and Energy and Resources Minister Anthony Roberts before moving his motion.

The mayor said he had the full backing of the Land and Water Commissioner, while Minister Roberts said he “was happy to be directed by the council’s wishes in continuing the Dialogue without AGL’s representation”, but urged caution in “locking out” the company from all dialogue “formal or otherwise”.