Energy company AGL has announced a major internal review of its coal seam gas (CSG) business, after a number of setbacks in recent months.
CSG operations at Gloucester, north of Newcastle, ceased indefinitely in January due to the detection of toxic chemicals in flowback water.
The banned chemical BTEX was found in flowback water taken from two of the four wells at the site, and from an aboveground water storage tank.
An Environment Protection Authority (EPA) report into the incident is expected in the next few days.
The report focused on why AGL waited almost a fortnight to inform the EPA of the potentially toxic chemicals.
The Coalition Government banned the use of BTEX as part of the fracking process, but the chemical compound is naturally occurring and CSG activity may bring it out of the ground.
AGL executive Mike Moraza, who led the CSG arm of the company, retired immediately as the internal review begins.
In a statement, the company said it will look into what structure it needs to safely explore for and produce gas resources.
"The review will encompass the management structure and the operational and management practices required to position the business to deliver on its goals of safely exploring for and producing gas resources for AGL's customers," it said.
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