Cougar Energy Limited
(ASX:CXY) has announced that it is suing the Queensland Government and three government officials for more than $34 million in damages.
The legal proceedings have been initiated in response to the Queensland Government’s decision to shut down the company’s $550 million underground coal gasification project at Kingaroy.
The state government last year closed the project after traces of toxic cancer-causing chemicals were identified in a groundwater monitoring bore.
Chairman, Malcolm McAully, says Cougar has commenced the legal action following legal advice that the closure of the project was
unreasonable and has inflicted a significant loss on the company.
In the 2011 financial year Cougar Energy booked a net loss of $35.27 million.
