Landholders say Arrow Energy's $1m fine for drilling deviated CSG wells not enough

Zena and Gary Ronnfeldt say Arrow Energy's fine is pocket change and that no remediation works were ordered. (ABC Southern Qld: Nathan Morris)

Farmers on the Western Downs say a $1 million fine handed to company Arrow Energy will do little to encourage companies to comply with Queensland's resources regulations.

The state's Department of Resources issued the fine after investigating the company's activities between 2018 and 2022.

It found Arrow Energy's program of drilling "deviated" wells under farmland, often without the knowledge or consent, breached the state's land access framework.

Dalby farmer Zena Ronnfeldt said the penalty was a good step, but she was extremely disappointed at how small the fine was.

"Arrow Energy drilled 48 unlawful wells on 13 landholders' properties, so the amount they've been fined equates to less than $21,000 per well," she said.

"[It's] just petty cash to a company.

Resources Minister Scott Stewart says the government is cracking down on companies doing the wrong thing. (ABC News: Tim Swanston)

'Reputational damage'

Ms Ronnfeldt said she was still dealing with the fallout of having deviated wells on her property, including subsidence that had affected the potential drainage of water from paddocks.

She said the state government had failed to direct Arrow Energy to carry out any remediation, meaning farmers were no better off.

But Resources Minister Scott Stewart defended the size of the fine issued to Arrow Energy.

He said the decision showed the government was cracking down on companies doing the wrong thing.

"While this is a million-dollar hit to Arrow, this is more about their reputational damage," Mr Stewart said.

Landholders say 48 "deviated wells" were drilled between 2018 and 2022. (ABC Southern Qld: Nathan Morris)

'We made mistakes'

Arrow Energy said it accepted the department's decision and the penalty.

"We recognise we made mistakes in the earlier implementation of the deviated wells model," a spokesperson said.

The company said it remained committed to improving the way it engaged landholders.

Environment group Lock the Gate said the fine was a start, but the practice of drilling "deviated wells" was continuing.

"The exact same activity is now taking place, but it's been condoned by the government," spokeswoman Ellie Smith said.

She said the government needed to give farmers the option of refusing coal seam gas developments on their property.

The government said authorities were continuing to investigate the issue of coal seam gas-induced subsidence.