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Timber industry wants compo after gas explosion

Posted October 11, 2008 10:01:00
Updated October 11, 2008 13:31:00

The explosion cut Western Australia's gas supplies by a third.

The explosion cut Western Australia's gas supplies by a third.

The Forest Industries Federation says the report into the Varanus Island gas explosion strengthens its case for compensation.

The explosion in June forced many companies to suspend their operations after it cut Western Australia's gas supplies by a third.

The National Offshore Petroleum Safety Authority report found the plant's operator Apache Energy was negligent.

Federation spokesperson Bob Pearce says one of its members went into receivership after the incident and the group will be seeking compensation from Apache.

"I'll be getting my members together next week to discuss how we will approach that," he said.

"We would like to do it by way of negotiation hopefully in concert with other industry associations who've been affected by this.

"We don't rule out legal action but that's where we'll be starting to see if we can't negotiate something first."

Wesfarmers considers options

Wesfarmers is considering its legal options after the release of a report into the Varanus Island gas plant explosion.

In June Wesfarmers revealed the gas crisis was costing the company up to 20-million dollars per month.

A spokesman for Wesfarmers says the report will be examined in detail and the company will assess it options in regard to compensation.

Tags: business-economics-and-finance, industry, oil-and-gas, disasters-and-accidents, accidents, timber, australia, wa

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