Geothermal station cleared of damage claims

A new report says there is no evidence that subsidence damage to homes at Taupo's Invergarry Rd was caused by Contact Energy's geothermal power station.

The geotechnical report, prepared by Opus International Consultants, found no evidence of subsurface effects causing damage to homes in the area.

It did not, however, offer conclusions as to what caused the damage.

The report follows one prepared in March by the Building Research Association of New Zealand (BRANZ), which concluded there was no evidence of damage to properties at 32 and 34 Invergarry Rd beyond normal wear and tear.

It also stated that the construction of the properties was of a relatively low quality and standard and that maintenance had been minimal.

A review in June conducted by Taupo District Council's geotechnical adviser, Sinclair Knight Merz Ltd, had said the damage to the homes was "more likely than not" caused by deep-seated subsidence.

The two properties were purchased by Contact Energy this year after residents claimed the subsidence was caused by Contact's operations at its Wairakei Geothermal Power Station.

Contact Energy operations general manager David Thomas said the company hoped the findings of the latest report would help restore confidence and economic value in the area.

Contact was also funding ongoing, jointly agreed monitoring of shallow subsidence in a non-residential area of Crown Rd, near the intersection of Invergarry Rd, he said.

The company stood by its promise to accept responsibility for any property damage that occurred as a result of its deep geothermal extraction activity at Wairakei, about 15km from the properties in question.

BRANZ will undertake further long-term monitoring of the properties, including wider area levelling surveys, floor level surveys and further assessment of the condition of buildings.

At the suggestion of Taupo District Council, the association has also been commissioned to undertake studies of other buildings in the area.

- NZPA