Academic literature on the topic 'Environmental aspects of Days Creek Lake (Or.)'

Waterholes within the dryland Cooper Creek, Lake Eyre Basin, Australia, are connected only during floods and are typically isolated for long periods. Spatial changes in the macroinvertebrate assemblages of 15 of these waterholes belonging to four regions were explored and these changes were related to environmental aspects of the waterholes measured at four spatial scales: floodplain, waterhole, within waterhole and sample habitat. To explore temporal patterns, one region was sampled on four occasions differing in time since connection. Spatial patterns were characterised by ‘differentiation by distance’ whereby samples collected closer to each other in the landscape were more similar in assemblage composition than those collected further apart. Thus, there were significant differences between the assemblages of the four regions. Although there was a correlation between macroinvertebrate spatial patterns and a combination of local habitat, geomorphology and water chemistry attributes, it appears unlikely that these variables were responsible for the faunal differentiation by distance. Temporal variability was larger than spatial variability and temporal assemblage patterns were best explained by the ‘connectivity potential’ of waterholes, reflecting the position of individual waterholes within the broader channel network and long-term connectivity relationships, rather than the actual time since hydrological connection.

“People live here, they die here so they must leave traces.” (Read 140) “Whatever colonialism was and is, it has made this place unsettling and unsettled.” (Gibson, Badland 2) Introduction What does it mean for [a] country to be haunted? In much theoretical work in film and Cultural Studies since the 1990s, the Australian continent, more often than not, bears traces of long suppressed traumas which inevitably resurface to haunt the present (Gelder and Jacobs; Gibson; Read; Collins and Davis). Felicity Collins and Therese Davis illuminate the ways Australian cinema acts as a public sphere, or “vernacular modernity,” for rethinking settler/indigenous relations. Their term “backtracking” serves as a mode of “collective mourning” in numerous films of the last decade which render unspoken colonial violence meaningful in contemporary Australia, and account for the “aftershocks” of the Mabo decision that overturned the founding fiction of terra nullius (7). Ray Lawrence’s 2006 film Jindabyne is another after-Mabo film in this sense; its focus on conflict within settler/indigenous relations in a small local town in the alpine region explores a traumatised ecology and drowned country. More than this, in our paper’s investigation of country and its attendant politics, Jindabyne country is the space of excessive haunting and resurfacing - engaging in the hard work of what Gibson (Transformations) has termed “historical backfill”, imaginative speculations “that make manifest an urge to account for the disconnected fragments” of country. Based on an adaptation by Beatrix Christian of the Raymond Carver story, So Much Water, So Close to Home, Jindabyne centres on the ethical dilemma produced when a group of fishermen find the floating, murdered body of a beautiful indigenous woman on a weekend trip, but decide to stay on and continue fishing. In Jindabyne, “'country' […] is made to do much discursive work” (Gorman-Murray). In this paper, we use the word as a metonym for the nation, where macro-political issues are played out and fought over. But we also use ‘country’ to signal the ‘wilderness’ alpine areas that appear in Jindabyne, where country is “a notion encompassing nature and human obligation that white Australia has learned slowly from indigenous Australia” (Gibson, Badland 178). This meaning enables a slippage between ‘land’ and ‘country’. Our discussion of country draws heavily on concepts from Ross Gibson’s theorisation of badlands. Gibson claims that originally, ‘badland’ was a term used by Europeans in North America when they came across “a tract of country that would not succumb to colonial ambition” (Badland 14). Using Collins and Davis’s “vernacular modernity” as a starting point, a film such as Jindabyne invites us to work through the productive possibilities of postcolonial haunting; to move from backtracking (going over old ground) to imaginative backfill (where holes and gaps in the ground are refilled in unconventional and creative returns to the past). Jindabyne (as place and filmic space) signifies “the special place that the Australian Alps occupy for so many Australians”, and the film engages in the discursive work of promoting “shared understanding” and the possibility of both Aboriginal and non-Aboriginal being “in country” (Baird, Egloff and Lebehan 35). We argue specifically that Jindabyne is a product of “aftermath culture” (Gibson Transformations); a culture living within the ongoing effects of the past, where various levels of filmic haunting make manifest multiple levels of habitation, in turn the product of numerous historical and physical aftermaths. Colonial history, environmental change, expanding wire towers and overflowing dams all lend meaning in the film to personal dilemmas, communal conflict and horrific recent crimes. The discovery of a murdered indigenous woman in water high in the mountains lays bare the fragility of a relocated community founded in the drowning of the town of old Jindabyne which created Lake Jindabyne. Beatrix Christian (in Trbic 61), the film’s writer, explains “everybody in the story is haunted by something. […] There is this group of haunted people, and then you have the serial killer who emerges in his season to create havoc.” “What’s in this compulsion to know the negative space?” asks Gibson (Badland 14). It’s the desire to better know and more deeply understand where we live. And haunting gives us cause to investigate further. Drowned, Murderous Country Jindabyne rewrites “the iconic wilderness of Australia’s High Country” (McHugh online) and replaces it with “a vast, historical crime scene” (Gibson, Badland 2). Along with nearby Adaminaby, the township of Old Jindabyne was drowned and its inhabitants relocated to the new town in the 1960s as part of the Snowy Mountains Hydro-electric Scheme. When Jindabyne was made in 2006 the scheme no longer represented an uncontested example of Western technological progress ‘taming’ the vast mountainous country. Early on in the film a teacher shows a short documentary about the town’s history in which Old Jindabyne locals lament the houses that will soon be sacrificed to the Snowy River’s torrents. These sentiments sit in opposition to Manning Clark’s grand vision of the scheme as “an inspiration to all who dream dreams about Australia” (McHugh online). With a 100,000-strong workforce, mostly migrated from war-ravaged Europe, the post-war Snowy project took 25 years and was completed in 1974. Such was this engineering feat that 121 workmen “died for the dream, of turning the rivers back through the mountains, to irrigate the dry inland” (McHugh online). Jindabyne re-presents this romantic narrative of progress as nothing less than an environmental crime. The high-tension wires scar the ‘pristine’ high country and the lake haunts every aspect of the characters’ interactions, hinting at the high country’s intractability that will “not succumb to colonial ambition” (Gibson, Badland 14). Describing his critical excavation of places haunted, out-of-balance or simply badlands, Gibson explains: Rummaging in Australia's aftermath cultures, I try to re-dress the disintegration in our story-systems, in our traditional knowledge caches, our landscapes and ecologies […] recuperate scenes and collections […] torn by landgrabbing, let's say, or by accidents, or exploitation that ignores rituals of preservation and restoration (Transformations). Tourism is now the predominant focus of Lake Jindabyne and the surrounding areas but in the film, as in history, the area does not “succumb to the temptations of pictorialism” (McFarlane 10), that is, it cannot be framed solely by the picture postcard qualities that resort towns often engender and promote. Jindabyne’s sense of menace signals the transformation of the landscape that has taken place – from ‘untouched’ to country town, and from drowned old town to the relocated, damned and electrified new one. Soon after the opening of the film, a moment of fishing offers a reminder that a town once existed beneath the waters of the eerily still Lake Jindabyne. Hooking a rusty old alarm clock out of the lake, Stuart explains to Tom, his suitably puzzled young son: underneath the water is the town where all the old men sit in rocking chairs and there’s houses and shops. […] There was a night […] I heard this noise — boing, boing, boing. And it was a bell coming from under the water. ‘Cause the old church is still down there and sometimes when the water’s really low, you can see the tip of the spire. Jindabyne’s lake thus functions as “a revelation of horrors past” (Gibson Badland 2). It’s not the first time this man-made lake is filmically positioned as a place where “violence begins to seem natural” (Gibson, Badland 13). Cate Shortland’s Somersault (2004) also uses Lake Jindabyne and its surrounds to create a bleak and menacing ambience that heightens young Heidi’s sense of alienation (Simpson, ‘Reconfiguring rusticity’). In Somersault, the male-dominated Jindabyne is far from welcoming for the emotionally vulnerable out-of-towner, who is threatened by her friend’s father beside the Lake, then menaced again by boys she meets at a local pub. These scenes undermine the alpine region’s touristic image, inundated in the summer with tourists coming to fish and water ski, and likewise, with snow skiers in the winter. Even away from the Lake, there is no fleeing its spectre. “The high-tension wires marching down the hillside from the hydro-station” hum to such an extent that in one scene, “reminiscent of Picnic at Hanging Rock (Peter Weir, 1975)”, a member of the fishing party is spooked (Ryan 52). This violence wrought upon the landscape contextualises the murder of the young indigenous woman, Susan, by Greg, an electrician who after murdering Susan, seems to hover in the background of several scenes of the film. Close to the opening of Jindabyne, through binoculars from his rocky ridge, Greg spots Susan’s lone car coursing along the plain; he chases her in his vehicle, and forces her to stop. Before (we are lead to assume) he drags her from the vehicle and murders her, he rants madly through her window, “It all comes down from the power station, the electricity!” That the murder/murderer is connected with the hydro-electric project is emphasised by the location scout in the film’s pre-production: We had one location in the scene where Greg dumps the body in some water and Ray [Lawrence] had his heart set on filming that next to some huge pipelines on a dam near Talbingo but Snowy Hydro didn’t […] like that negative content […] in association with their facility and […] said ‘no’ they wouldn’t let us do it.” (Jindabyne DVD extras) “Tales of murder and itinerancy in wild country are as old as the story of Cain in the killing fields of Eden” (Badlands 14). In Jindabyne we never really get to meet Greg but he is a familiar figure in Australian film and culture. Like many before him, he is the lone Road Warrior, a ubiquitous white male presence roaming the de-populated country where the road constantly produces acts of (accidental and intentional) violence (Simpson, ‘Antipodean Automobility’). And after a litany of murders in recent films such as Wolf Creek (Greg McLean, 2005) and Gone (Ringan Ledwidge, 2007) the “violence begins to seem natural” (Gibson Transformations 13) in the isolating landscape. The murderer in Jindabyne, unlike those who have migrated here as adults (the Irish Stuart and his American wife, Claire), is autochthonous in a landscape familiar with a trauma that cannot remain hidden or submerged. Contested High Country The unsinkability of Susan’s body, now an ‘indigenous murdered body’, holds further metaphorical value for resurfacing as a necessary component of aftermath culture. Such movement is not always intelligible within non-indigenous relations to country, though the men’s initial response to the body frames its drifting in terms of ascension: they question whether they have “broken her journey by tying her up”. The film reconfigures terra nullius as the ultimate badland, one that can never truly suppress continuing forms of physical, spiritual, historical and cultural engagement with country, and the alpine areas of Jindabyne and the Snowy River in particular. Lennon (14) points to “the legacy of biased recording and analysis” that “constitutes a threat to the cultural significance of Aboriginal heritage in alpine areas” (15). This significance is central to the film, prompting Lawrence to state that “mountains in any country have a spiritual quality about them […] in Aboriginal culture the highest point in the landscape is the most significant and this is the highest point of our country” (in Cordaiy 40). So whilst the Jindabyne area is contested country, it is the surfacing, upward mobility and unsinkable quality of Aboriginal memory that Brewster argues “is unsettling the past in post-invasion Australia” (in Lambert, Balayi 7). As the agent of backfill, the indigenous body (Susan) unsettles Jindabyne country by offering both evidence of immediate violence and reigniting the memory of it, before the film can find even the smallest possibility of its characters being ‘in country’. Claire illustrates her understanding of this in a conversation with her young son, as she attempts to contact the dead girls’ family. “When a bad thing happens,” she says, “we all have to do a good thing, no matter how small, alright? Otherwise the bad things, they just pile up and up and up.” Her persistent yet clumsy enactment of the cross-cultural go-between illuminates the ways “the small town community move through the terms of recent debate: shame and denial, repressed grief and paternalism” (Ryan 53). It is the movement of backfill within the aftermath: The movement of a foreign non-Aboriginal woman into Aboriginal space intertextually re-animates the processes of ‘settlement’, resolution and environmental assimilation for its still ‘unsettled’ white protagonists. […] Claire attempts an apology to the woman’s family and the Aboriginal community – in an Australia before Kevin Rudd where official apologies for the travesties of Australian/colonial history had not been forthcoming […] her movement towards reconciliation here is reflective of the ‘moral failure’ of a disconnection from Aboriginal history. (Lambert, Diasporas) The shift from dead white girl in Carver’s story to young Aboriginal woman speaks of a political focus on the ‘significance’ of the alpine region at a given moment in time. The corpse functions “as the trigger for crisis and panic in an Australia after native title, the stolen generation and the war-on-terror” (Lambert, Diasporas). The process of reconnecting with country and history must confront its ghosts if the community is to move forward. Gibson (Transformations) argues that “if we continue to close our imaginations to the aberrations and insufficiencies in our historical records. […] It’s likely we won’t dwell in the joy till we get real about the darkness.” In the post-colonial, multicultural but still divided geographies and cultures of Jindabyne, “genocidal displacement” comes face to face with the “irreconciled relation” to land “that refuses to remain half-seen […] a measure of non-indigenous failure to move from being on the land to being in country” (Ryan 52), evidenced by water harvesting in the Snowy Mountains Scheme, and the more recent crises in water and land management. Aftermath Country Haunted by historical, cultural and environmental change, Jindabyne constitutes a post-traumatic screen space. In aftermath culture, bodies and landscapes offer the “traces” (Gibson, Transformations) of “the social consequences” of a “heritage of catastrophe” that people “suffer, witness, or even perpetrate” so that “the legacy of trauma is bequeathed” (Walker i). The youth of Jindabyne are charged with traumatic heritage. The young Susan’s body predictably bears the semiotic weight of colonial atrocity and non-indigenous environmental development. Evidence of witnesses, perpetrators and sufferers is still being revealed after the corpse is taken to the town morgue, where Claire (in a culturally improper viewing) is horrified by Susan’s marks from being secured in the water by Stuart and the other men. Other young characters are likewise haunted by a past that is environmental and tragically personal. Claire and Stuart’s young son, Tom (left by his mother for a period in early infancy and the witness of his parents strained marital relations), has an intense fear of drowning. This personal/historical fear is played with by his seven year old friend, Caylin-Calandria, who expresses her own grief from the death of her young mother environmentally - by escaping into the surrounding nature at night, by dabbling in the dark arts and sacrificing small animals. The two characters “have a lot to believe in and a lot of things to express – belief in zombies and ghosts, ritual death, drowning” (Cordaiy 42). As Boris Trbic (64) observes of the film’s characters, “communal and familial harmony is closely related to their intense perceptions of the natural world and their often distorted understanding of the ways their partners, friends and children cope with the grieving process.” Hence the legacy of trauma in Jindabyne is not limited to the young but pervades a community that must deal with unresolved ecologies no longer concealed by watery artifice. Backfilling works through unsettled aspects of country by moving, however unsteadily, toward healing and reconciliation. Within the aftermath of colonialism, 9/11 and the final years of the Howard era, Jindabyne uses race and place to foreground the “fallout” of an indigenous “condemnation to invisibility” and the “long years of neglect by the state” (Ryan 52). Claire’s unrelenting need to apologise to the indigenous family and Stuart’s final admission of impropriety are key gestures in the film’s “microcosm of reconciliation” (53), when “the notion of reconciliation, if it had occupied any substantial space in the public imagination, was largely gone” (Rundell 44). Likewise, the invisibility of Aboriginal significance has specificity in the Jindabyne area – indigeneity is absent from narratives recounting the Snowy Mountains Scheme which “recruited some 60,000 Europeans,” providing “a basis for Australia’s postwar multicultural society” (Lennon 15); both ‘schemes’ evidencing some of the “unrecognised implications” of colonialism for indigenous people (Curthoys 36). The fading of Aboriginal issues from public view and political discourse in the Howard era was serviced by the then governmental focus on “practical reconciliation” (Rundell 44), and post 9/11 by “the broad brushstrokes of western coalition and domestic political compliance” (Lambert, CMC 252), with its renewed focus on border control, and increased suspicion of non-Western, non-Anglo-European difference. Aftermath culture grapples with the country’s complicated multicultural and globalised self-understanding in and beyond Howard’s Australia and Jindabyne is one of a series of texts, along with “refugee plays” and Australian 9/11 novels, “that mobilised themselves against the Howard government” (Rundell 43-44). Although the film may well be seen as a “profoundly embarrassing” display of left-liberal “emotional politics” (44-45), it is precisely these politics that foreground aftermath: local neglect and invisibility, terror without and within, suspect American leadership and shaky Australian-American relations, the return of history through marked bodies and landscapes. Aftermath country is simultaneously local and global – both the disappearance and the ‘problem’ of Aboriginality post-Mabo and post-9/11 are backfilled by the traces and fragments of a hidden country that rises to the surface. Conclusion What can be made of this place now? What can we know about its piecemeal ecology, its choppy geomorphics and scarified townscapes? […] What can we make of the documents that have been generated in response to this country? (Gibson, Transformations). Amidst the apologies and potentialities of settler-indigenous recognition, the murdering electrician Gregory is left to roam the haunted alpine wilderness in Jindabyne. His allegorical presence in the landscape means there is work to be done before this badland can truly become something more. Gibson (Badland 178) suggests country gets “called bad […] partly because the law needs the outlaw for reassuring citizens that the unruly and the unknown can be named and contained even if they cannot be annihilated.” In Jindabyne the movement from backtracking to backfilling (as a speculative and fragmental approach to the bodies and landscapes of aftermath culture) undermines the institutional framing of country that still seeks to conceal shared historical, environmental and global trauma. The haunting of Jindabyne country undoes the ‘official’ production of outlaw/negative space and its discursively good double by realising the complexity of resurfacing – electricity is everywhere and the land is “uncanny” not in the least because “the town of Jindabyne itself is the living double of the drowned original” (Ryan 53). The imaginative backfill of Jindabyne reorients a confused, purgatorial Australia toward the “small light of home” (53) – the hope of one day being “in country,” and as Gibson (Badland 3) suggests, the “remembering,” that is “something good we can do in response to the bad in our lands.” References Baird, Warwick, Brian Egloff and Rachel Lenehan. “Sharing the mountains: joint management of Australia’s alpine region with Aboriginal people.” historic environment 17.2 (2003): 32-36. Collins, Felicity and Therese Davis. Australian Cinema after Mabo. Cambridge: Cambridge UP, 2005. Cordaiy, Hunter. “Man, Woman and Death: Ray Lawrence on Jindabyne.” Metro 149 (2006): 38-42. Curthoys, Anne. “An Uneasy Conversation: The Multicultural and the Indigenous.” Race Colour and Identity in Australia and New Zealand. Ed. John Docker and Gerhard Fischer. Sydney, UNSW P, 2000. 21-36. Gelder, Ken and Jane M. Jacobs. Uncanny Australia: Sacredness an Identity in a Postcolonial Nation. Carlton: Melbourne UP, 1998. Gibson, Ross. Seven Versions of an Australian Badland. St Lucia: U of Queensland P, 2002. Gibson, Ross. “Places, Past, Disappearance.” Transformations 13 (2006). Aug. 11 2008 transformations.cqu.edu.au/journal/issue_13/article_01.shtml. Gorman-Murray, Andrew. “Country.” M/C Journal 11.5 (this issue). Kitson, Michael. “Carver Country: Adapting Raymond Carver in Australia.” Metro150 (2006): 54-60. Lambert, Anthony. “Movement within a Filmic terra nullius: Woman, Land and Identity in Australian Cinema.” Balayi, Culture, Law and Colonialism 1.2 (2001): 7-17. Lambert, Anthony. “White Aborigines: Women, Mimicry, Mobility and Space.” Diasporas of Australian Cinema. Eds. Catherine Simpson, Renata Murawska, and Anthony Lambert. UK: Intellectbooks, 2009. Forthcoming. Lambert, Anthony. “Mediating Crime, Mediating Culture.” Crime, Media, Culture 4.2 (2008): 237-255. Lennon, Jane. “The cultural significance of Australian alpine areas.” Historic environment 17.2 (2003): 14-17. McFarlane, Brian. “Locations and Relocations: Jindabyne & MacBeth.” Metro Magazine 150 (Spring 2006): 10-15. McHugh, Siobhan. The Snowy: The People Behind the Power. William Heinemann Australia, 1999. http://www.mchugh.org/books/snowy.html. Read, Peter. Haunted Earth. Sydney: UNSW Press, 2003. Rundle, Guy. “Goodbye to all that: The end of Australian left-liberalism and the revival of a radical politics.” Arena Magazine 88 (2007): 40-46. Ryan, Matthew. “On the treatment of non-indigenous belonging.” Arena Magazine 84 (2006): 52-53. Simpson, Catherine. “Reconfiguring Rusticity: feminizing Australian Cinema’s country towns’. Studies in Australasian Cinemas 2.1 (2008): forthcoming. Simpson, Catherine. “Antipodean Automobility & Crash: Treachery, Trespass and Transformation of the Open Road.” Australian Humanities Review 39-40 (2006). http://www.australianhumanitiesreview.org/archive/Issue-September-2006/simpson.html. Trbic, Boris. “Ray Lawrence’s Jindabyne: So Much Pain, So Close to Home.” Screen Education 44 (2006): 58–64. Walker, Janet. Trauma Cinema: Documenting Incest and the Holocaust. Berkley, Los Angeles and London: U of California P, 2005.

Unconventional energy sources have become increasingly important to the global energy mix. These include coal seam gas, shale gas and shale oil. The unconventional gas industry was pioneered in the United States and embraced following the first oil shock in 1973 (Rogers). As has been the case with many global resources (Hiscock), many of the same companies that worked in the USA carried their experience in this industry to early Australian explorations. Recently the USA has secured significant energy security with the development of unconventional energy deposits such as the Marcellus shale gas and the Bakken shale oil (Dobb; McGraw). But this has not come without environmental impact, including contamination to underground water supply (Osborn, Vengosh, Warner, Jackson) and potential greenhouse gas contributions (Howarth, Santoro, Ingraffea; McKenna). The environmental impact of unconventional gas extraction has raised serious public concern about the introduction and growth of the industry in Australia. In coal rich Australia coal seam gas is currently the major source of unconventional gas. Large gas deposits have been found in prime agricultural land along eastern Australia, such as the Liverpool Plains in New South Wales and the Darling Downs in Queensland. Competing land-uses and a series of environmental incidents from the coal seam gas industry have warranted major protest from a coalition of environmentalists and farmers (Berry; McLeish). Conflict between energy companies wanting development and environmentalists warning precaution is an easy script to cast for frontline media coverage. But historical perspectives are often missing in these contemporary debates. While coal mining and natural gas have often received “boosting” historical coverage (Diamond; Wilkinson), and although historical themes of “development” and “rushes” remain predominant when observing the span of the industry (AGA; Blainey), the history of unconventional gas, particularly the history of its environmental impact, has been little studied. Few people are aware, for example, that the first shale gas exploratory well was completed in late 2010 in the Cooper Basin in Central Australia (Molan) and is considered as a “new” frontier in Australian unconventional gas. Moreover many people are unaware that the first coal seam gas wells were completed in 1976 in Queensland. The first four wells offer an important moment for reflection in light of the industry’s recent move into Central Australia. By locating and analysing the first four coal seam gas wells, this essay identifies the roots of the unconventional gas industry in Australia and explores the early environmental impact of these wells. By analysing exploration reports that have been placed online by the Queensland Department of Natural Resources and Mines through the lens of environmental history, the dominant developmental narrative of this industry can also be scrutinised. These narratives often place more significance on economic and national benefits while displacing the environmental and social impacts of the industry (Connor, Higginbotham, Freeman, Albrecht; Duus; McEachern; Trigger). This essay therefore seeks to bring an environmental insight into early unconventional gas mining in Australia. As the author, I am concerned that nearly four decades on and it seems that no one has heeded the warning gleaned from these early wells and early exploration reports, as gas exploration in Australia continues under little scrutiny. Arrival The first four unconventional gas wells in Australia appear at the beginning of the industry world-wide (Schraufnagel, McBane, and Kuuskraa; McClanahan). The wells were explored by Houston Oils and Minerals—a company that entered the Australian mining scene by sharing a mining prospect with International Australian Energy Company (Wiltshire). The International Australian Energy Company was owned by Black Giant Oil Company in the US, which in turn was owned by International Royalty and Oil Company also based in the US. The Texan oilman Robert Kanton held a sixteen percent share in the latter. Kanton had an idea that the Mimosa Syncline in the south-eastern Bowen Basin was a gas trap waiting to be exploited. To test the theory he needed capital. Kanton presented the idea to Houston Oil and Minerals which had the financial backing to take the risk. Shotover No. 1 was drilled by Houston Oil and Minerals thirty miles south-east of the coal mining town of Blackwater. By late August 1975 it was drilled to 2,717 metres, discovered to have little gas, spudded, and, after a spend of $610,000, abandoned. The data from the Shotover well showed that the porosity of the rocks in the area was not a trap, and the Mimosa Syncline was therefore downgraded as a possible hydrocarbon location. There was, however, a small amount of gas found in the coal seams (Benbow 16). The well had passed through the huge coal seams of both the Bowen and Surat basins—important basins for the future of both the coal and gas industries. Mining Concepts In 1975, while Houston Oil and Minerals was drilling the Shotover well, US Steel and the US Bureau of Mines used hydraulic fracture, a technique already used in the petroleum industry, to drill vertical surface wells to drain gas from a coal seam (Methane Drainage Taskforce 102). They were able to remove gas from the coal seam before it was mined and sold enough to make a profit. With the well data from the Shotover well in Australia compiled, Houston returned to the US to research the possibility of harvesting methane in Australia. As the company saw it, methane drainage was “a novel exploitation concept” and the methane in the Bowen Basin was an “enormous hydrocarbon resource” (Wiltshire 7). The Shotover well passed through a section of the German Creek Coal measures and this became their next target. In September 1976 the Shotover well was re-opened and plugged at 1499 meters to become Australia’s first exploratory unconventional gas well. By the end of the month the rig was released and gas production tested. At one point an employee on the drilling operation observed a gas flame “the size of a 44 gal drum” (HOMA, “Shotover # 1” 9). But apart from the brief show, no gas flowed. And yet, Houston Oil and Minerals was not deterred, as they had already taken out other leases for further prospecting (Wiltshire 4). Only a week after the Shotover well had failed, Houston moved the methane search south-east to an area five miles north of the Moura township. Houston Oil and Minerals had researched the coal exploration seismic surveys of the area that were conducted in 1969, 1972, and 1973 to choose the location. Over the next two months in late 1976, two new wells—Kinma No.1 and Carra No.1—were drilled within a mile from each other and completed as gas wells. Houston Oil and Minerals also purchased the old oil exploration well Moura No. 1 from the Queensland Government and completed it as a suspended gas well. The company must have mined the Department of Mines archive to find Moura No.1, as the previous exploration report from 1969 noted methane given off from the coal seams (Sell). By December 1976 Houston Oil and Minerals had three gas wells in the vicinity of each other and by early 1977 testing had occurred. The results were disappointing with minimal gas flow at Kinma and Carra, but Moura showed a little more promise. Here, the drillers were able to convert their Fairbanks-Morse engine driving the pump from an engine run on LPG to one run on methane produced from the well (Porter, “Moura # 1”). Drink This? Although there was not much gas to find in the test production phase, there was a lot of water. The exploration reports produced by the company are incomplete (indeed no report was available for the Shotover well), but the information available shows that a large amount of water was extracted before gas started to flow (Porter, “Carra # 1”; Porter, “Moura # 1”; Porter, “Kinma # 1”). As Porter’s reports outline, prior to gas flowing, the water produced at Carra, Kinma and Moura totalled 37,600 litres, 11,900 and 2,900 respectively. It should be noted that the method used to test the amount of water was not continuous and these amounts were not the full amount of water produced; also, upon gas coming to the surface some of the wells continued to produce water. In short, before any gas flowed at the first unconventional gas wells in Australia at least 50,000 litres of water were taken from underground. Results show that the water was not ready to drink (Mathers, “Moura # 1”; Mathers, “Appendix 1”; HOMA, “Miscellaneous Pages” 21-24). The water had total dissolved solids (minerals) well over the average set by the authorities (WHO; Apps Laboratories; NHMRC; QDAFF). The well at Kinma recorded the highest levels, almost two and a half times the unacceptable standard. On average the water from the Moura well was of reasonable standard, possibly because some water was extracted from the well when it was originally sunk in 1969; but the water from Kinma and Carra was very poor quality, not good enough for crops, stock or to be let run into creeks. The biggest issue was the sodium concentration; all wells had very high salt levels. Kinma and Carra were four and two times the maximum standard respectively. In short, there was a substantial amount of poor quality water produced from drilling and testing the three wells. Fracking Australia Hydraulic fracturing is an artificial process that can encourage more gas to flow to the surface (McGraw; Fischetti; Senate). Prior to the testing phase at the Moura field, well data was sent to the Chemical Research and Development Department at Halliburton in Oklahoma, to examine the ability to fracture the coal and shale in the Australian wells. Halliburton was the founding father of hydraulic fracture. In Oklahoma on 17 March 1949, operating under an exclusive license from Standard Oil, this company conducted the first ever hydraulic fracture of an oil well (Montgomery and Smith). To come up with a program of hydraulic fracturing for the Australian field, Halliburton went back to the laboratory. They bonded together small slabs of coal and shale similar to Australian samples, drilled one-inch holes into the sample, then pressurised the holes and completed a “hydro-frac” in miniature. “These samples were difficult to prepare,” they wrote in their report to Houston Oil and Minerals (HOMA, “Miscellaneous Pages” 10). Their program for fracturing was informed by a field of science that had been evolving since the first hydraulic fracture but had rapidly progressed since the first oil shock. Halliburton’s laboratory test had confirmed that the model of Perkins and Kern developed for widths of hydraulic fracture—in an article that defined the field—should also apply to Australian coals (Perkins and Kern). By late January 1977 Halliburton had issued Houston Oil and Minerals with a program of hydraulic fracture to use on the central Queensland wells. On the final page of their report they warned: “There are many unknowns in a vertical fracture design procedure” (HOMA, “Miscellaneous Pages” 17). In July 1977, Moura No. 1 became the first coal seam gas well hydraulically fractured in Australia. The exploration report states: “During July 1977 the well was killed with 1% KCL solution and the tubing and packer were pulled from the well … and pumping commenced” (Porter 2-3). The use of the word “kill” is interesting—potassium chloride (KCl) is the third and final drug administered in the lethal injection of humans on death row in the USA. Potassium chloride was used to minimise the effect on parts of the coal seam that were water-sensitive and was the recommended solution prior to adding other chemicals (Montgomery and Smith 28); but a word such as “kill” also implies that the well and the larger environment were alive before fracking commenced (Giblett; Trigger). Pumping recommenced after the fracturing fluid was unloaded. Initially gas supply was very good. It increased from an average estimate of 7,000 cubic feet per day to 30,000, but this only lasted two days before coal and sand started flowing back up to the surface. In effect, the cleats were propped open but the coal did not close and hold onto them which meant coal particles and sand flowed back up the pipe with diminishing amounts of gas (Walters 12). Although there were some interesting results, the program was considered a failure. In April 1978, Houston Oil and Minerals finally abandoned the methane concept. Following the failure, they reflected on the possibilities for a coal seam gas industry given the gas prices in Queensland: “Methane drainage wells appear to offer no economic potential” (Wooldridge 2). At the wells they let the tubing drop into the hole, put a fifteen foot cement plug at the top of the hole, covered it with a steel plate and by their own description restored the area to its “original state” (Wiltshire 8). Houston Oil and Minerals now turned to “conventional targets” which included coal exploration (Wiltshire 7). A Thousand Memories The first four wells show some of the critical environmental issues that were present from the outset of the industry in Australia. The process of hydraulic fracture was not just a failure, but conducted on a science that had never been tested in Australia, was ponderous at best, and by Halliburton’s own admission had “many unknowns”. There was also the role of large multinationals providing “experience” (Briody; Hiscock) and conducting these tests while having limited knowledge of the Australian landscape. Before any gas came to the surface, a large amount of water was produced that was loaded with a mixture of salt and other heavy minerals. The source of water for both the mud drilling of Carra and Kinma, as well as the hydraulic fracture job on Moura, was extracted from Kianga Creek three miles from the site (HOMA, “Carra # 1” 5; HOMA, “Kinma # 1” 5; Porter, “Moura # 1”). No location was listed for the disposal of the water from the wells, including the hydraulic fracture liquid. Considering the poor quality of water, if the water was disposed on site or let drain into a creek, this would have had significant environmental impact. Nobody has yet answered the question of where all this water went. The environmental issues of water extraction, saline water and hydraulic fracture were present at the first four wells. At the first four wells environmental concern was not a priority. The complexity of inter-company relations, as witnessed at the Shotover well, shows there was little time. The re-use of old wells, such as the Moura well, also shows that economic priorities were more important. Even if environmental information was considered important at the time, no one would have had access to it because, as handwritten notes on some of the reports show, many of the reports were “confidential” (Sell). Even though coal mines commenced filing Environmental Impact Statements in the early 1970s, there is no such documentation for gas exploration conducted by Houston Oil and Minerals. A lack of broader awareness for the surrounding environment, from floral and faunal health to the impact on habitat quality, can be gleaned when reading across all the exploration reports. Nearly four decades on and we now have thousands of wells throughout the world. Yet, the challenges of unconventional gas still persist. The implications of the environmental history of the first four wells in Australia for contemporary unconventional gas exploration and development in this country and beyond are significant. Many environmental issues were present from the beginning of the coal seam gas industry in Australia. Owning up to this history would place policy makers and regulators in a position to strengthen current regulation. The industry continues to face the same challenges today as it did at the start of development—including water extraction, hydraulic fracturing and problems associated with drilling through underground aquifers. Looking more broadly at the unconventional gas industry, shale gas has appeared as the next target for energy resources in Australia. Reflecting on the first exploratory shale gas wells drilled in Central Australia, the chief executive of the company responsible for the shale gas wells noted their deliberate decision to locate their activities in semi-desert country away from “an area of prime agricultural land” and conflict with environmentalists (quoted in Molan). Moreover, the journalist Paul Cleary recently complained about the coal seam gas industry polluting Australia’s food-bowl but concluded that the “next frontier” should be in “remote” Central Australia with shale gas (Cleary 195). It appears that preference is to move the industry to the arid centre of Australia, to the ecologically and culturally unique Lake Eyre Basin region (Robin and Smith). 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Economics of Cute There are many ways to study cute: for example, neuro-biology (cute as adaptation); anthropology (cute in culture); political economy (cute industries, how cute exploits consumers); cultural studies (social construction of cute); media theory and politics (representation and identity of cute), and so on. What about economics? At first sight, this might point to a money-capitalism nexus (“the cute economy”), but I want to argue here that the economics of cute actually works through choice interacting with fixed costs and what economists call ”the substitution effect”. Cute, in conjunction with the Internet, affects the trade-offs involved in choices people make. Let me put that more starkly: cute shapes the economy. This can be illustrated with internet animals, which at the time of writing means Grumpy Cat. I want to explain how that mechanism works – but to do so I will need some abstraction. This is not difficult – a simple application of a well-known economics model, namely the Allen-Alchian theorem, or the “third law of demand”. But I am going to take some liberties in order to represent that model clearly in this short paper. Specifically, I will model just two extremes of quality (“opera” and “cat videos”) to represent end-points of a spectrum. I will also assume that the entire effect of the internet is to lower the cost of cat videos. Now obviously these are just simplifying assumptions “for the purpose of the model”. And the purpose of the model is to illuminate a further aspect of how we might understand cute, by using an economic model of choice and its consequences. This is a standard technique in economics, but not so in cultural studies, so I will endeavour to explain these moments as we go, so as to avoid any confusion about analytic intent. The purpose of this paper is to suggest a way that a simple economic model might be applied to augment the cultural study of cute by seeking to unpack its economic aspect. This can be elucidated by considering the rise of internet animals as a media-cultural force, as epitomized by “cat videos”. We can explain this through an application of price theory and the theory of demand that was first proposed by Armen Alchian and William Allen. They showed how an equal fixed cost that was imposed to both high-quality and low-quality goods alike caused a shift in consumption toward the higher-quality good, because it is now relatively cheaper. Alchian and Allen had in mind something like transport costs on agricultural goods (such as apples). But it is also true that the same effect works in reverse (Cowen), and the purpose of this paper is to develop that logic to contribute to explaining how certain structural shifts in production and consumption in digital media, particularly the rise of blog formats such as Tumblr, a primary supplier of kittens on the Internet, can be in part understood as a consequence of this economic mechanism. There are three key assumptions to build this argument. The first is that the cost of the internet is independent of what it carries. This is certainly true at the level of machine code, and largely true at higher levels. What might be judged aesthetically high quality or low quality content – say of a Bach cantata or a funny cat video – are treated the same way if they both have the same file size. This is a physical and computational aspect of net-neutrality. The internet – or digitization – functions as a fixed cost imposed regardless of what cultural quality is moving across it. Second, while there are costs to using the internet (for example, in hardware or concerning digital literacy) these costs are lower than previous analog forms of information and cultural production and dissemination. This is not an empirical claim, but a logical one (revealed preference): if it were not so, people would not have chosen it. The first two points – net neutrality and lowered cost – I want to take as working assumptions, although they can obviously be debated. But that is not the purpose of the paper, which is instead the third point – the “Alchian-Allen theorem”, or the third fundamental law of demand. The Alchian-Allen Theorem The Alchian-Allen theorem is an extension of the law of demand (Razzolini et al) to consider how the distribution of high quality and low quality substitutes of the same good (such as apples) is affected by the imposition of a fixed cost (such as transportation). It is also known as the “shipping the good apples out” theorem, after Borcherding and Silberberg explained why places that produce a lot of apples – such as Seattle in the US – often also have low supplies of high quality apples compared to places that do not produce apples, such as New York. The puzzle of “why can’t you get good apples in Seattle?” is a simple but clever application of price theory. When a place produces high quality and low quality items, it will be rational for those in faraway places to consume the high quality items, and it will be rational for the producers to ship them, leaving only the low quality items locally.Why? Assume preferences and incomes are the same everywhere and that transport cost is the same regardless of whether the item shipped is high or low quality. Both high quality and low quality apples are more expensive in New York compared to Seattle, but because the fixed transport cost applies to both the high quality apples are relatively less expensive. Rational consumers in New York will consume more high quality apples. This makes fewer available in Seattle.Figure 1: Change in consumption ratio after the imposition of a fixed cost to all apples Another example: Australians drink higher quality Californian wine than Californians, and vice versa, because it is only worth shipping the high quality wine out. A counter-argument is that learning effects dominate: with high quality local product, local consumers learn to appreciate quality, and have different preferences (Cowen and Tabarrok).The Alchian-Allen theorem applies to any fixed cost that applies generally. For example, consider illegal drugs (such as alcohol during the US prohibition, or marijuana or cocaine presently) and the implication of a fixed penalty – such as a fine, or prison sentence, which is like a cost – applied to trafficking or consumption. Alchian-Allen predicts a shift toward higher quality (or stronger) drugs, because with a fixed penalty and probability of getting caught, the relatively stronger substance is now relatively cheaper. Empirical work finds that this effect did occur during alcohol prohibition, and is currently occurring in narcotics (Thornton Economics of Prohibition, "Potency of illegal drugs").Another application proposed by Steven Cuellar uses Alchian-Allen to explain a well-known statistical phenomenon why women taking the contraceptive pill on average prefer “more masculine” men. This is once again a shift toward quality predicted on falling relative price based on a common ‘fixed price’ (taking the pill) of sexual activity. Jean Eid et al show that the result also applies to racehorses (the good horses get shipped out), and Staten and Umbeck show it applies to students – the good students go to faraway universities, and the good student in those places do the same. So that’s apples, drugs, sex and racehorses. What about the Internet and kittens?Allen-Alchian Explains Why the Internet Is Made of CatsIn analog days, before digitization and Internet, the transactions costs involved with various consumption items, whether commodities or media, meant that the Alchian-Allen effect pushed in the direction of higher quality, bundled product. Any additional fixed costs, such as higher transport costs, or taxes or duties, or transactions costs associated with search and coordination and payment, i.e. costs that affected all substitutes in the same way, would tend to make the higher quality item relatively less expensive, increasing its consumption.But digitisation and the Internet reverse the direction of these transactions costs. Rather than adding a fixed cost, such as transport costs, the various aspects of the digital revolution are equivalent to a fall in fixed costs, particularly access.These factors are not just one thing, but a suite of changes that add up to lowered transaction costs in the production, distribution and consumption of media, culture and games. These include: The internet and world-wide-web, and its unencumbered operation The growth and increasing efficacy of search technology Growth of universal broadband for fast, wide band-width access Growth of mobile access (through smartphones and other appliances) Growth of social media networks (Facebook, Twitter; Metcalfe’s law) Growth of developer and distribution platforms (iPhone, android, iTunes) Globally falling hardware and network access costs (Moore’s law) Growth of e-commerce (Ebay, Amazon, Etsy) and e-payments (paypal, bitcoin) Expansions of digital literacy and competence Creative commons These effects do not simply shift us down a demand curve for each given consumption item. This effect alone simply predicts that we consume more. But the Alchian-Allen effect makes a different prediction, namely that we consume not just more, but also different.These effects function to reduce the overall fixed costs or transactions costs associated with any consumption, sharing, or production of media, culture or games over the internet (or in digital form). With this overall fixed cost component now reduced, it represents a relatively larger decline in cost at the lower-quality, more bite-sized or unbundled end of the media goods spectrum. As such, this predicts a change in the composition of the overall consumption basket to reflect the changed relative prices that these above effects give rise to. See Figure 2 below (based on a blog post by James Oswald). The key to the economics of cute, in consequence of digitisation, is to follow through the qualitative change that, because of the Alchian-Allen effect, moves away from the high-quality, highly-bundled, high-value end of the media goods spectrum. The “pattern prediction” here is toward more, different, and lower quality: toward five minutes of “Internet animals”, rather than a full day at the zoo. Figure 2: Reducing transaction costs lowers the relative price of cat videos Consider five dimensions in which this more and different tendency plays out. Consumption These effects make digital and Internet-based consumption cheaper, shifting us down a demand curve, so we consume more. That’s the first law of demand in action: i.e. demand curves slope downwards. But a further effect – brilliantly set out in Cowen – is that we also consume lower-quality media. This is not a value judgment. These lower-quality media may well have much higher aesthetic value. They may be funnier, or more tragic and sublime; or faster, or not. This is not about absolute value; only about relative value. Digitization operating through Allen-Alchian skews consumption toward the lower quality ends in some dimensions: whether this is time, as in shorter – or cost, as in cheaper – or size, as in smaller – or transmission quality, as in gifs. This can also be seen as a form of unbundling, of dropping of dimensions that are not valued to create a simplified product.So we consume different, with higher variance. We sample more than we used to. This means that we explore a larger information world. Consumption is bite-sized and assorted. This tendency is evident in the rise of apps and in the proliferation of media forms and devices and the value of interoperability.ProductionAs consumption shifts (lower quality, greater variety), so must production. The production process has two phases: (1) figuring out what to do, or development; and (2) doing it, or making. The world of trade and globalization describes the latter part: namely efficient production. The main challenge is the world of innovation: the entrepreneurial and experimental world of figuring out what to do, and how. It is this second world that is radically transformed by implications of lowered transaction costs.One implication is growth of user-communities based around collaborative media projects (such as open source software) and community-based platforms or common pool resources for sharing knowledge, such as the “Maker movement” (Anderson 2012). This phenomenon of user-co-creation, or produsers, has been widely recognized as an important new phenomenon in the innovation and production process, particularly those processes associated with new digital technologies. There are numerous explanations for this, particularly around preferences for cooperation, community-building, social learning and reputational capital, and entrepreneurial expectations (Quiggin and Potts, Banks and Potts). Business Models The Alchian-Allen effect on consumption and production follows through to business models. A business model is a way of extracting value that represents some strategic equilibrium between market forms, organizational structures, technological possibilities and institutional framework and environmental conditions that manifests in entrepreneurial patterns of business strategy and particular patterns of investment and organization. The discovery of effective business models is a key process of market capitalist development and competition. The Alchian-Allen effect impacts on the space of effective viable business models. Business models that used to work will work less well, or not at all. And new business models will be required. It is a significant challenge to develop these “economic technologies”. Perhaps no less so than development of the physical technologies, new business models are produced through experimental trial and error. They cannot be known in advance or planned. But business models will change, which will affect not only the constellation of existing companies and the value propositions that underlie them, but also the broader specializations based on these in terms of skill sets held and developed by people, locations of businesses and people, and so on. New business models will emerge from a process of Schumpeterian creative destruction as it unfolds (Beinhocker). The large production, high development cost, proprietary intellectual property and systems based business model is not likely to survive, other than as niche areas. More experimental, discovery-focused, fast-development-then-scale-up based business models are more likely to fit the new ecology. Social Network Markets & Novelty Bundling MarketsThe growth of variety and diversity of choice that comes with this change in the way media is consumed to reflect a reallocation of consumption toward smaller more bite-sized, lower valued chunks (the Alchian-Allen effect) presents consumers with a problem, namely that they have to make more choices over novelty. Choice over novelty is difficult for consumers because it is experimental and potentially costly due to risk of mistakes (Earl), but it also presents entrepreneurs with an opportunity to seek to help solve that problem. The problem is a simple consequence of bounded rationality and time scarcity. It is equivalent to saying that the cost of choice rises monotonically with the number of choices, and that because there is no way to make a complete rational choice, agents will use decision or choice heuristics. These heuristics can be developed independently by the agents themselves through experience, or they can be copied or adopted from others (Earl and Potts). What Potts et al call “social network markets” and what Potts calls “novelty bundling markets” are both instances of the latter process of copying and adoption of decision rules. Social network markets occur when agents use a “copy the most common” or “copy the highest rank” meta-level decision rule (Bentley et al) to deal with uncertainty. Social network markets can be efficient aggregators of distributed information, but they can also be path-dependent, and usually lead to winner-take all situations and dynamics. These can result in huge pay-offs differentials between first and second or fifth place, even when the initial quality differentials are slight or random. Diversity, rapid experimentation, and “fast-failure” are likely to be effective strategies. It also points to the role of trust and reputation in using adopted decision rules and the information economics that underlies that: namely that specialization and trade applies to the production and consumption of information as well as commodities. Novelty bundling markets are an entrepreneurial response to this problem, and observable in a range of new media and creative industries contexts. These include arts, music or food festivals or fairs where entertainment and sociality is combined with low opportunity cost situations in which to try bundles of novelty and connect with experts. These are by agents who developed expert preferences through investment and experience in consumption of the particular segment or domain. They are expert consumers and are selling their “decision rules” and not just the product. The more production and consumption of media and digital information goods and services experiences the Alchian-Allen effect, the greater the importance of novelty bundling markets. Intellectual Property & Regulation A further implication is that rent-seeking solutions may also emerge. This can be seen in two dimensions; pursuit of intellectual property (Boldrin and Levine); and demand for regulations (Stigler). The Alchian-Allen induced shift will affect markets and business models (and firms), and because this will induce strategic defensive and aggressive responses from different organizations. Some organizations will seek to fight and adapt to this new world through innovative competition. Other firms will fight through political connections. Most incumbent firms will have substantial investments in IP or in the business model it supports. Yet the intellectual property model is optimized for high-quality large volume centralized production and global sales of undifferentiated product. Much industrial and labour regulation is built on that model. How governments support such industries is predicated on the stability of this model. The Alchian-Allen effect threatens to upset that model. Political pushback will invariably take the form of opposing most new business models and the new entrants they carry. Conclusion I have presented here a lesser-known but important theorem in applied microeconomics – the Alchian-Allen effect – and explain why its inverse is central to understanding the evolution of new media industries, and also why cute animals proliferate on the Internet. The theorem states that when a fixed cost is added to substitute goods, consumers will shift to the higher quality item (now relatively less expensive). 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