The company has applied to vary its Review of Environmental Factors (REF) approval to enable the movement of flowback water from the Waukivory Pilot site to the large dam.

"AGL applied for the variation of its Waukivory Pilot REF to allow the movement of flowback water (via an existing AGL water pipeline) from the four pilot wells to the Tiedmans East Dam," a company spokeswoman said.

"Flowback water will be stored temporarily on site while AGL continues to negotiate with third-party contractors for the treatment and disposal of the flowback water. 

"Flowback water will only be stored until a third-party contractor is engaged, or the stage one Gloucester Gas Project commences, at which time the water will be treated via the desalination process outlined in the Extracted Water Management Strategy."

AGl said there was currently 600,000 litres of flowback water in the aboveground tank at its Waukivory pilot site. 

Between three and 3.5 megalitres of flowback water is expected to be recovered from the four wells. 

"This will easily fit into the 20-megalitre, double-lined Tiedmans East dam," the spokeswoman said.

"The Tiedmans East dam is fitted with a leak detection system and there are two nearby monitoring bores, and AGL will be undertaking extra water sampling in the area. No flowback water will be used for irrigation.

"The variation to the Waukivory Pilot REF will provide additional certainty around the secure storage and management of flowback water from the Waukivory Pilot. 

"AGL will continue to negotiate with third parties for the treatment and disposal of the water at an EPA licensed facility.”