Aidan Stennett and Katrina Walsh Fracking · 2014-12-12 · Fracking NIAR 774-11 ... increased seismic activity. NIAR 774-2011 Research Paper Northern Ireland Assembly, Research and

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9 November 2011

Aidan Stennett and Katrina Walsh

Fracking

NIAR 774-11

This research paper sets out what the process of hydraulic fracturing, or ‘fracking’ as

it is more commonly known, involves. It also identifies how the practice is used in

other countries and what the potential impact of its use in Northern Ireland could be.

Some key concerns around ‘fracking’ are also considered.

Paper XX/XX 09 November 2010

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Northern Ireland Assembly, Research and Information Service 1

Key Points Fracking is a process used to recover natural gas from deep shale formations. It

involves creating fissures or fractures in rocks to allow the gas to flow. The fractures

are created by injecting a hydraulic fracturing fluid, usually consisting of water, sand

and chemicals, down the well and into the shale gas formation. The sand keeps the

fractures open and allows the gas to flow via the well to the surface where it is

collected. Fracking is used in combination with a drilling process and therefore is not

itself a drilling process.

Fracking is common in the USA with at least 19 states involved in shale gas

development; it now accounts for 22% of US gas production and 32% of total

remaining recoverable gas resources in the US.

A number of companies have bought up exploratory concessions within Europe,

including in Germany and Poland. Companies, including Shell, Chevron and

Cuadrilla are active in Sweden, Ukraine, Denmark and France. Exploration is taking

place in the Netherlands, the Czech Republic and the UK.

In Ireland the Department of Communications, Energy and Natural Resources has

issued onshore petroleum licences for exploration in the Clare Basin and the Lough

Allen Basin.

On the 29 June 2010 the Department of Enterprise, Trade and Investment (DETI)

placed a notice in the Official Journal of the European Union announcing the

availability of all of onshore Northern Ireland. The second round of applications is

still ongoing.

Criteria for judgement include the financial viability of the applicant and its financial

capability to carry out the proposed activities, the technical capability of the

applicant, the proposed work programme of the applicant and where the applicant

holds, or has held, a licence under the Petroleum (Production) Act (Northern Ireland)

1964, any lack of efficiency and responsibility displayed by the applicant in

operations under that licence.

Four licences have been granted to:

• Infrastrata plc and eCORP Oil & Gas UK Ltd – Lough Neagh Basin (Central

Lane) – Licence number PL1/10;

• Tamboran Resources Pty Limited – Lough Allen Basin (North) – Licence number

PL2/10;

• Rathlin Energy Limited – Rathlin Basin – Licence number PL3/10; and

• P.R. Singleton Ltd. – Rathlin Island – Licence number PL4/10

Among the potential environmental dangers of fracking are noise pollution, air

pollution, landscape impacts, traffic and road damage, water contamination and

increased seismic activity.

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The European Parliament has published a report entitled ‘Impacts of shale gas and

shale oil extraction on the environment and on human health’ which outlines some

of these concerns.

Bans or moratoriums have been placed on the practice in several places including

Pennsylvania, New York State, New Jersey and France.

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Executive Summary

The exploitation of shale gas through the joint processes of drilling and hydraulic

fracturing (fracking) is common around the world. In the United States, for instance,

shale gas development now accounts for 22% of gas production and 32% of total

remaining recoverable gas resources. At least 19 states are involved in the practice.

The process has recently become more financially viable due to advances made in

horizontal drilling, advances in fracking techniques and rapid increases in natural gas

prices as a result of significant supply and demand pressures.

Europe, increasingly, is showing interest in exploiting these natural reserves. A number

of companies have bought up exploratory concessions. Exxon Mobil has bought up

concessions in Germany and Poland. Shell is active in Sweden and Ukraine. Chevron

is in Poland. Total is in Denmark and France, and Cuadrilla is exploring in the

Netherlands, the Czech Republic as well as the UK.

Ireland is also making moves towards the process. The Department of

Communications, Energy and Natural Resources has issued onshore petroleum

licences for exploration (drilling to 200m and assessing if the gas is commercially

viable) in the Clare Basin and the Lough Allen Basin. In relation to the Lough Allen

Basin these were issued to Tamboran Resources Ltd covering 986km2 over parts of

Cavan, Leitrim and Sligo and to the Lough Allen Natural Gas Company Limited

covering 467km2 over parts of Cavan, Leitrim, Roscommon and Sligo. If successful the

companies will have a first option on a more expensive exploration licence although

this is a process that is at least two and half years away.

The North of Ireland has also granted four permits allowing holders to ‘search and bore

and get petroleum.’ The sites licensed are Lough Neagh Basin, Lough Allen Basin,

Rathlin Island and Rathlin Basin. DETI grants these permits and the application period

is ongoing. Permits are granted on the basis of fulfilling various criteria including the

financial and technical capability of the applicant to carry out the proposed work.

Cuadrilla Resources has been exploring in Lancashire since March 2011. According to

the BBC, as of September 2011:

“It said it had found 200 trillion cubic feet of gas under the ground, which if

recovered could provide 5,600 jobs in the UK, 1,700 of those in

Lancashire.”

However this work was halted in spring of 2011 following two small earthquakes which

Cuadrilla recently acknowledged where highly probably caused by drilling activity in the

area. However the Cuadrilla report went on to say that the quakes were due to an

"unusual combination of geology at the well site" and that conditions which caused the

minor earthquakes were "unlikely to occur again."

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Other than increased seismic activity other issues highlighted around the subject of

fracking include noise pollution, air pollution, landscape impacts, traffic and road

damage and water contamination. Despite these frequently raised concerns, the

Tyndall Centre for Climate Change Research states there is very little information and

data on which to base a quantified assessment of environmental and human health

risk. The EU has recently published an article which highlights some of the key

criticisms of fracking, including potential water contamination and human health risks.

This research is drawn largely from the North American experience of fracking and the

report states that the risks have not been sufficiently covered. It should be noted that

many cases of water contamination are linked to poor practice by the companies

involved, poor regulation and in some cases poor well construction.

The cleanliness of shale gas as a fuel is estimated at various values by different

reports. According to researchers at Cornell University, compared to coal, the footprint

of shale gas is at least 20% greater and perhaps more than twice as great on the 20-

year horizon, and is comparable over 100 years. The lead author claims that shale gas

may indeed be quite damaging to global warming, quite likely as bad or worse than

coal. However, an International Energy Agency (IEA) report stated that:

“Based on available data, we estimate that shale gas produced to proper

standards of environmental has slightly higher ‘well-to-burner’ emissions

than conventional gas, with combustion of gas being the dominant source

of emissions. Best practice in production, effectively monitored and

regulated, can mitigate other potential environmental risks such as

excessive water use, contamination and disposal.”

Fracking has been banned or had moratoriums placed on it in several places including

Pennsylvania, New York State, New Jersey and France. The reason given in most

cases is that more information is needed regarding the environmental impact of the

process.

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Contents

Key Points .............................................................................................................................. 1

Executive Summary................................................................................................................ 3

Contents 5

1 What is fracking? .................................................................................................... 7

2 Fracking across the globe....................................................................................... 8

2.1 USA ........................................................................................................................ 8

2.2 Europe.................................................................................................................... 8

2.3 Island of Ireland ...................................................................................................... 9

2.4 UK .......................................................................................................................... 9

3 Northern Ireland ................................................................................................... 10

4 The Environmental Impact of Fracking ................................................................. 12

4.1 Noise Pollution ..................................................................................................... 12

4.2 Air Pollution .......................................................................................................... 12

4.3 Landscape Impacts .............................................................................................. 12

4.4 Traffic and Road Damage..................................................................................... 12

4.5 Additional risks ..................................................................................................... 13

4.5.1 Water Use in hydraulic fracturing operations ........................................................ 13

Figure 4 Water Use in Hydraulic Fracturing Operations ........................................ 13

4.5.2 Increased Seismic Activity .................................................................................... 14

5 European Parliament report: Impacts of shale gas and shale oil extraction on the

environment and on human health’ ....................................................................... 15

5.1 Disposal of Frack Fluid ................................................................................................... 15

5.2 Effects of fracking on human health ...................................................................... 16

5.2.1 Experiences in North America .............................................................................. 16

6 Discussion ............................................................................................................ 17

6.1 Shale gas ............................................................................................................. 17

6.2 Fracking ............................................................................................................... 19

7 Identified Bans/Moratoriums ................................................................................. 22

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1 What is fracking?

Fracking is the common term applied to the process of hydraulic fracturing used to

recover natural gas from deep shale formations. It is called ‘fracking’ because it

involves creating fissures or fractures in rocks to allow the gas to flow. The fractures

are created by injecting a hydraulic fracturing fluid, usually consisting of water, sand

and chemicals, down the well and into the shale gas formation. The sand keeps the

fractures open and allows the gas to flow via the well to the surface where it is

collected.

Fracking is invariably used in combination with horizontal drilling to access shale gas

reserves. Fracking is therefore not a drilling process. It is applied after the drill hole

has been completed. Figure 1 provides an illustration of how fracking works in practice.

Figure 1: Shale gas extraction – hydraulic fracture 1

Source BBC

As with conventional drilling there are a number of issues relating to the preparation of

a site for production of shale gas:

Roads may need to be constructed to allow access to the site.

Well pads are constructed to locate the drilling rig and associated equipment during

the drilling process. Six to eight horizontal wells are drilled from a single well pad.

Each pad requires an area to store fluid and equipment necessary for high volume

fracturing operations as well as equipment associated with horizontal drilling. An

average size multi-well pad is likely to be 1.5-2ha in size during the drilling and

fracturing phase.

1 Ibid

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Excavation of pits: for example large volumes of water are required in the drilling

and fracturing processes and this may require excavation of land to produce pits to

store water. Alternatively it may be possible to extract water from lakes/rivers for this

process though this would require laying pipes. In addition pits are required to store

waste water used in these processes.

2 Fracking across the globe

2.1 USA

Fracking is common in the USA with at least 19 states involved in shale gas

development.2 The production of natural gas from shale deposits has become

economically viable for three reasons:

Advances in horizontal drilling;

Advances in hydraulic fracturing techniques; and, perhaps more importantly,

Rapid increases in natural gas prices as a result of significant supply and

demand pressures.3

The only significant production of shale gas has also occurred in the USA where during

the last decade shale gas production has increased fourteen-fold; it now accounts for

22% of US gas production and 32% of total remaining recoverable gas resources in the

US.4

2.2 Europe

A number of companies have bought up exploratory concessions within Europe.

Exxon Mobil has bought up concessions in Germany and Poland. Shell is active in

Sweden and Ukraine. Chevron is in Poland. Total is in Denmark and France, and

Cuadrilla is exploring in the Netherlands, the Czech Republic as well as the UK.5 The

estimated shale gas resources in Europe are presented in Figure 2.6

2 http://fracfocus.org/sites/default/files/publications/shale_gas_primer_2009.pdf

3 Taken from Modern Shale Gas Development in the United States: A Primer, p.9

4 http://www.state.gov/s/ciea/gsgi/index.htm

5 http://e360.yale.edu/feature/fracking_comes_to_europe_sparking_rising_controversy/2374/

6 European and Global Resources and the Potential of Unconventional Gas, pp.32, in Unconventional Gas – a Chance for

Poland and Europe? Analysis and Recommendations

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Figure 2 Recoverable shale gas formations in Europe in billions of cubic metres

(bcm)

2.3 Ireland

The Department of Communications, Energy and Natural Resources has issued

onshore petroleum licences for exploration in the Clare Basin and the Lough Allen

Basin. In relation to the Lough Allen Basin these were issued to Tamboran Resources

Ltd covering 986km2 over parts of Cavan, Leitrim and Sligo and to the Lough Allen

Natural Gas Company Limited covering 467km2 over parts of Cavan, Leitrim,

Roscommon and Sligo.7

These licences are solely for initial exploration allowing the companies to drill to a

depth of 200m (650ft) and carry out technical studies to indicate whether the gas is

commercially viable. If successful the companies will have a first option on a more

expensive exploration licence although this is a process that is at least two and a half

years away.8

2.4 UK

Cuadrilla Resources has been exploring in Lancashire since March 2011. According to

the BBC, as of September 2011:

It said it had found 200 trillion cubic feet of gas under the ground, which if

recovered could provide 5,600 jobs in the UK, 1,700 of those in

Lancashire.9

7 http://debates.oireachtas.ie/dail/2011/04/12/00021.asp

8 http://www.irishtimes.com/newspaper/ireland/2011/0221/1224290427180.html

9 BBC Shale gas firm finds 'vast' gas resources in Lancashire (Sept 2011) http://www.bbc.co.uk/news/uk-england-lancashire-

14990573

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Dart Energy Limited has applied to use hydraulic fracturing in an exploratory well at

Airth near Falkirk in Scotland before the end of the year.10

3 Northern Ireland

On the 29 June 2010 the Department of Enterprise, Trade and Investment (DETI)

placed a notice in the Official Journal of the European Union announcing the availability

of all of onshore Northern Ireland.11 The notice was in response to Directive 94/22/EC

of the European Parliament and of the Council on the conditions for granting and using

authorisations for the prospection, exploration and production of hydrocarbons.

The directive was designed with ‘a view to reinforcing the integration of the internal

supply market, encouraging greater competition within it and improving the security of

supply’ and required Member States to establish common rules which ‘establish non-

discriminatory access to the activities of prospection, exploration and production of

hydrocarbons’.12

DETI carried out a consultation on the implementation of the directive between August

and September 2009 (the consultation closed 30 September 2009).13

The notice placed in June 2010 introduced two separate windows for applications. The

first placed a limit on applications of the 27 August 2010, any applications received in

this initial period were considered together. The second window began on the 30

August 2010 and is on-going. All applications received from this point are to be

considered in the order they are received.

A number of key criteria were included in the original notice; these formed the basis on

which applications would be judged. These are outlined below in their original wording:

The financial viability of the applicant and its financial capability to carry out the

activities that would be permitted under the licence during the initial term including

the work programme submitted for evaluating the full potential of the area applied

for;

The technical capability of the applicant to carry out activities that would be

permitted under the licence during the initial term including the identification of

hydrocarbon prospects within the area applied for;

10

Natural Gas Europe Shale Stirs Debate in Scotland (May 2011) http://www.naturalgaseurope.com/shale-stirs-debate-scotland 11

Official Journal of the European Union United Kingdom Government notice concerning implementation in Northern Ireland of

Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations

for the prospection, exploration and production of hydrocarbons — Notice of competent authority and arrangements for

authorisations in Northern Ireland (June 2010) http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2010:169:0003:0003:EN:PDF 12

Europa, Summaries of European Legislation – Prospection, exploration and production of hydrocarbons

http://europa.eu/legislation_summaries/energy/internal_energy_market/l27007_en.htm 13

DETI Implementation of The Hydrocarbons Licensing Directive in Northern Ireland (August 2009)

http://www.detini.gov.uk/implementation_of_the_hydrocarbons_licensing_directive_in_northern_ireland.pdf

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The way in which the applicant proposes to carry out the activities that would be

permitted by the licence including the quality of the work programme submitted for

evaluating the full potential of the area applied for. The work programme is to be

structured with the aim of drilling of one well in the area before the expiry of the

initial licence term which is a period of five years;

Where the applicant holds, or has held, a licence under the Petroleum (Production)

Act (Northern Ireland) 1964, any lack of efficiency and responsibility displayed by

the applicant in operations under that licence.14

As a result of this process, there were four licences granted:

Infrastrata plc and eCORP Oil & Gas UK Ltd – Lough Neagh Basin (Central Lane) –

Licence number PL1/10;

Tamboran Resources Pty Limited – Lough Allen Basin (North) – Licence number

PL2/10;

Rathlin Energy Limited – Rathlin Basin – Licence number PL3/10; and

P.R. Singleton Ltd. – Rathlin Island – Licence number PL4/10

Figure 3 shows the geographical spread of these sites. All four licences grant the

licence holder with permission to ‘search and bore and get petroleum’.15

Figure 3 : Petroleum Licences in Northern Ireland June 2011

14

Official Journal of the European Union United Kingdom Government notice concerning implementation in Northern Ireland of

Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations

for the prospection, exploration and production of hydrocarbons — Notice of competent authority and arrangements for

authorisations in Northern Ireland (June 2010) http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2010:169:0003:0003:EN:PDF 15

DETI Petroleum Licencing in Northern Ireland http://www.detini.gov.uk/deti-energy-index/minerals-and-

petroleum/petroleum_licensing_2.htm

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4 The Environmental Impact of Fracking

According to the Tyndall Centre for Climate Change Research there is very little

information and data on which to base a quantified assessment of environmental and

human health risk.16 However, there are issues which are readily identifiable as

potential sources of pollution and associated with standard oil or gas exploration:

4.1 Noise Pollution

Individually and collectively the activities associated with well pads prior to production

will produce noise for between 500-1500 days as indicated although it would be

expected that continuous drilling of wells 24 hours per day for up to 18 months would

be significant for a single pad. If pads are allocated at 1.25-3.5pads/km2 then this will

obviously create greater noise pollution for a locality.17

4.2 Air Pollution

Air emissions occur during exploration and production activities including NOx, volatile

organic compounds, particulate matter, SO2 and methane.18 However, the

Environment Agency told the House of Commons Energy and Climate Change

Committee19 that it was

"not expecting big air quality implications […] the Government have oversight of the

implementation of the Air Quality Directive […] the Environment Agency has to have

regard to the National Air Quality strategy". The Environment Agency "would prefer that

if methane is being discharged that it was flared, because obviously that converts it to

carbon dioxide, which is a much less potent greenhouse gas […] but we would respect

the Health and Safety Executive's judgment about what is safe".

4.3 Landscape Impacts

Impact on the landscape is inevitable with any drilling operation. The mechanical

processes involved in a site prior to production and the associated requirements

include storage sites, chemical tanks, drilling equipment, trucks etc. The visual, and

associated, impacts will depend on the number of well pads located in an area i.e. it

may be difficult to take steps to alleviate the visual impact if there are multiple well

pads.

4.4 Traffic and Road Damage

16

Shale gas: a provisional assessment of climate change and environmental impact, pp. 15. Tyndall Centre for Climate

Change Research (January 2011) 17

Shale gas: a provisional assessment of climate change and environmental impact, pp. 70. Tyndall Centre for Climate

Change Research (January 2011) 18

Taken from Modern Shale Gas Development in the United States: A Primer, Executive Summary, p.5 19

Energy and Climate Change Committee – fifth report, Shale Gas

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenergy/795/79502.htm

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Increased traffic, particularly truck visits to and from the site, could be significant and

will depend on the number of well pads. Coupled with this increase in heavy traffic is

the potential for road damage.

4.5 Additional risks

4.5.1 Water Use in hydraulic fracturing operations

There are a number of associated risks from the use of water in the hydraulic fracturing

process. The US Environmental Protection Agency identified the risks which are

presented in a flowchart figure 4.

Figure 4 Water Use in Hydraulic Fracturing Operations

Source: US EPA, Draft to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water, February

2011, p 14

Perhaps of particular concern in relation to water is the potential for pollution of

groundwater aquifers. The fracking process consumes huge amounts of water,

between 2 and 4 million gallons, depending on the nature of the extraction site.20 As

20

Taken from Modern Shale Gas Development in the United States: A Primer, Executive Summary p.4

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noted above this water comprises the large part of the fracturing fluid which also

includes sand and other chemical additives. As many shale deposits are found under

aquifers the process of drilling can potentially release this mixture of water and

chemicals into the aquifer.

There has been concern in the USA that fracking has, in some cases, resulted in

contamination of drinking water with chemicals and/or methane. A study21 by Duke

University in the USA outlines the concerns:

Concerns for impacts to groundwater resources are based on (i) fluid (water and gas)

flow and discharge to shallow aquifers due to the high pressure of the injected

fracturing fluids in the gas wells); (ii) the toxicity and radioactivity of produced water

from a mixture of fracturing fluids and deep saline formation waters that may

discharge to the environment; (iii) the potential explosion and asphyxiation hazard of

natural gas; and (iv) the large number of private wells in rural areas that rely on shallow

groundwater for household and agricultural use

This is an important issue in the USA where nearly half the population relies on

groundwater aquifers as their primary source of drinking water; rising in rural areas to

around 95%.22 Groundwater aquifers may also discharge water into rivers, lakes and

wetlands and therefore if the groundwater is contaminated surface waters may also be

contaminated by these discharges.

However, while the study did indicate that there was evidence for methane

contamination of some shallow drinking-water systems due to poor well construction

there was no evidence for contamination of drinking-water samples with deep saline

brines or fracturing fluid.

The recent report by a House of Commons Select Committee, referred to above,

concluded that:

“hydraulic fracturing itself does not pose a direct risk to water aquifers, provided that

the well-casing is intact before this commences. Rather, any risks that do arise are

related to the integrity of the well, and are no different to issues encountered when

exploring for hydrocarbons in conventional geological formations. We recommend that

the Health and Safety Executive test the integrity of wells before allowing the licensing

of drilling activity”.23

4.5.2 Increased Seismic Activity

21

Osborn, S.G.,Vengosh,A., Warner, N.R., and R.B. Jackson (2011) Methane contamination of drinking water accompanying

gas well drilling and hydraulic fracturing, Proceedings of the National Academy of Sciences of the United States of

America 22

http://fracfocus.org/water-protection/groundwater-aquifers 23

Energy and Climate Change Committee – fifth report, Shale Gas

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenergy/795/79502.htm

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There have been a number of reports in the media relating increased seismic activity

with fracking. In the UK, for example, the energy company Cuadrilla Resources

suspended its prospecting near Blackpool, Lancashire after concerns that the process

had initiated two small earthquakes. 24 One tremor of magnitude 2.3 hit the Fylde coast

on 1 April, followed by a second of magnitude 1.4 on 27 May. On 2 November 2011

Cuadrilla released a report which states that it is ‘highly probable’ that the seismic

activity was caused by the drilling taking place in the vicinity. However it also contends

that the quakes were due to an "unusual combination of geology at the well site". 25 It

also said conditions which caused the minor earthquakes were "unlikely to occur

again". Other news reports in the USA suggest a correlation between fracking and

increased seismic activity.26 Following a phone call from a concerned resident the

Oklahoma Geological Survey carried out research on a possible link between fracking

and nearby earthquakes. Their analysis showed that shortly after hydraulic fracturing

began small earthquakes started occurring, and more than 50 were identified, of which

43 were large enough to be located. Most of these earthquakes occurred within a 24

hour period after hydraulic fracturing operations had ceased. The strong correlation in

time and space as well as a reasonable fit to a physical model suggest that there is a

possibility these earthquakes were induced by hydraulic-fracturing. However, the

uncertainties in the data make it impossible to say with a high degree of certainty

whether or not these earthquakes were triggered by natural means or by the nearby

hydraulic-fracturing operation.27

5 European Parliament report: Impacts of shale gas and shale

oil extraction on the environment and on human health

The EU has recently published a piece of research on the practice of fracking. This

report focuses particularly on the disposal of frack fluid and the potential impact on

human health. The evidence is drawn largely from the North American experience of

fracking as European fracking is very much in its infancy.28 According to the report the

specific risks of hydraulic fracturing are not sufficiently covered.29

5.1 Disposal of Frack Fluid

Fracturing fluids are injected into geological formations at high pressure. Once the

pressure is released, a mixture of fracturing fluid, methane, compounds and additional

water from the deposit flow back to the surface. This water must be collected and

properly disposed of. According to industry sources, between 20% and 50% of the

24

http://www.independent.co.uk/environment/nature/mps-call-for-inquiry-into-shale-gas-drilling-after-earthquakes-2294389.html 25

BBC, Fracking tests near Blackpool 'likely cause' of tremors : http://www.bbc.co.uk/news/uk-england-lancashire-15550458 26

http://www.foxnews.com/scitech/2011/03/01/fracking-earthquakes-arkansas-man-experts-warn/ 27

Oklahoma Geological Survey, http://www.ogs.ou.edu/pubsscanned/openfile/OF1_2011.pdf p.1 28

European Parliament, ‘Impacts of shale gas and shale oil extraction on the environment and on human health’ :

http://www.europarl.europa.eu/document/activities/cont/201107/20110715ATT24183/20110715ATT24183EN.pdf p.3 29

European Parliament, ‘Impacts of shale gas and shale oil extraction on the environment and on human health’ :

http://www.europarl.europa.eu/document/activities/cont/201107/20110715ATT24183/20110715ATT24183EN.pdf p.10

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water used for hydro-fracking gas wells returns to the surface as flowback. Part of this

water will be recycled to fracture future wells. According to other sources, between 9%

and 35% recover to the surface.30 The proper disposal of waste water has been raised

as a major issue in North America, particularly regarding the huge quantity of waste

water and the improper configuration of sewage plants. Although recycling would

appear to be possible in some cases, project costs may increase as a result of the

recycling process.

Some problems associated with the improper disposal of water have been reported.

Most of these water contaminations are due to improper practices. It has been

concluded therefore that very strict handling of these issues is mandatory. In Europe,

for example in Germany, reportedly accidents have occurred in hydraulic fracturing

operations. For instance, waste water pipes from the tight gas field Söhlingen are

reported to have leaked in 2007, causing groundwater contamination with benzene and

mercury. Though the corresponding Mining Agency of Lower Saxony

(Landesbergbehörde) was correctly informed, reportedly the public noticed the accident

only in 2011 when the company started to replace the agricultural soil where the fluids

had leaked into the ground.31

5.2 Effects of fracking on human health

Possible health effects are mainly caused by the impacts of the relevant emissions into

air or water. These consist predominantly of headaches, and long-term effects from

volatile organic compounds. Groundwater contamination may be dangerous when

inhabitants come into contact with contaminated water. For instance, when small

children are frequently washed with contaminated water this may have an effect on

allergies and general health. Also, wastewater pits and blow-out fluids are a matter of

concern when the skin is exposed.

5.2.1 Experiences in North America

Beyond potential effects actual health effects and their direct link to hydraulic fracturing

activities are rarely documented. Usually, reports on headaches are prominent. The

death of young horses in Dish (Texas) has been linked by some to gas drilling there;

however, this relation cannot be proven. Other extreme, but well-documented,

examples of the health repercussions of drilling exist, although their relation to gas

drilling cannot be proven. The case of Laura Amos is stated in a written testimony to

the House Committee on Oversight and Government Reform, USA:

A woman [Laura Amos] from Silt, Garfield County, Colorado called to tell

me that she had developed a very rare adrenal tumor and had to have the

30 European Parliament, ‘Impacts of shale gas and shale oil extraction on the environment and on human health’ :

http://www.europarl.europa.eu/document/activities/cont/201107/20110715ATT24183/20110715ATT24183EN.pdf

31 European Parliament, ‘Impacts of shale gas and shale oil extraction on the environment and on human health’ :

http://www.europarl.europa.eu/document/activities/cont/201107/20110715ATT24183/20110715ATT24183EN.pdf

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tumor and her adrenal gland removed. One of the effects of 2-BE [2-butoxy

ethanol] was adrenal tumors. She told me that she lived within 900 feet of a

busy gas well pad where frac’ing took place frequently. During one frac’ing

episode her domestic water well erupted. She also began describing the

health problems of others who lived near her.]

Another well-known case is that of a nurse, Cathy Behr:

In mid–August [2008] the Colorado debate intensified when news broke

that Cathy Behr, an emergency room nurse in Durango, Colorado, had

almost died after treating a wildcatter who had been splashed in a fracking

fluid spill at a BP natural gas rig. Behr stripped the man and stuffed his

clothes into plastic bags…. A few days later Behr lay in critical condition

facing multiple organ failure.” [Lustgarten 2008]32

The Environmental Protection Agency in the US has been forced by the

volume of reports of negative environmental and health impacts to conduct

an investigation of its effects. Their report will not appear until the end of

2014.33

6 Discussion

6.1 Shale gas

Shale gas has already had significant impact on the gas industry in the USA. In a 2009

report, Modern Shale Gas Development in the United States: A Primer, prepared for

the US Department of Energy Office of Fossil Energy and National Energy Technology

Laboratory by the Groundwater Protection and ALL Consulting, noted that:

At the U.S. production rates for 2007, about 19.3 tcf (trillion cubic feet34),

the current recoverable resource estimate provides enough natural gas to

supply the U.S. for the next 90 years. Separate estimates of the shale gas

resource extend this supply to 116 years.35

The report adds:

Shale gas resource estimates are likely to change as new information,

additional experience, and advances in technology become available.36

32

European Parliament, ‘Impacts of shale gas and shale oil extraction on the environment and on human health’ :

http://www.europarl.europa.eu/document/activities/cont/201107/20110715ATT24183/20110715ATT24183EN.pdf p.35 33

Irish Times, Legislators must deal with dangers of 'fracking':

http://www.irishtimes.com/newspaper/opinion/2011/1003/1224305143508.html, (accessed 24/10/2011) 34

A trillion cubic feet is estimated by the US Department of Energy to be the equivalent of heating 15m homes for one year 35

US Department of Energy, Office of Fossil Energy and National Energy Technology Laboratory Modern Shale Gas

Development in the United States: A Primer (April 2009) http://www.netl.doe.gov/technologies/oil-

gas/publications/epreports/shale_gas_primer_2009.pdf (accessed 29/06/11) 36

Ibid

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Concluding:

Considering natural gas’s clean-burning nature, the nation’s domestic

natural gas resources, and the presence of supporting infrastructure, the

development of domestic shale gas reserves will be an important

component of the U.S.’s energy portfolio for many years. Recent

successes in a variety of geologic basins have created the opportunity for

shale gas to be a strategic part of the nation’s energy and economic

growth.37

The economic impact of increased shale gas exploration and production was illustrated

in a recent Bloomberg article:

The shale gas rush is creating thousands of jobs and reviving the economy

in states such as Wyoming, Texas, and Louisiana. In Pennsylvania, where

2,516 wells have been drilled in the last three years, $389 million in tax

revenue and 44,000 jobs came from gas drilling in 2009, according to a

Penn State report.38

The same article goes on to state ‘best of all, natural gas emits half the carbon

emissions of oil’. While it is true that natural gas is considerably ‘cleaner’ than oil –

Department of Energy and Climate Change data estimates that in 2008 gas CO2

emissions in the UK were approximately 0.19 kilograms of CO2 per kilowatt hour of

energy used (CO2/kWh), compared to 0.25CO2/kWh from oil, 0.34CO2/kWh from solid

fuel and 0.54CO2/kWh from electricity – shale gas’ emissions impact appears less

favourable.

Commenting on shale gas in its report Are we entering a golden age of gas?39 (June

2011), the International Energy Agency (IEA) state:

Based on available data, we estimate that shale gas produced to proper

standards of environmental has slightly higher ‘well-to-burner’ emissions

than conventional gas, with combustion of gas being the dominant source

of emissions. Best practice in production, effectively monitored and

regulated, can mitigate other potential environmental risks such as

excessive water use, contamination and disposal.40

Speaking at the launch of the report, IEA executive director, Nobuo Tanaka stated:

While natural gas is the cleanest fossil fuel, it is still a fossil fuel. Its

increased use could muscle out low-carbon fuels such as renewables and

37

Ibid 38

Bloomberg Businessweek Fracking: The Great Shale Gas Rush (3 March 2011)

http://www.businessweek.com/magazine/content/11_11/b4219025777026.htm (accessed 29/06/11) 39

International Energy Agency Are we entering a golden age of gas? (June 2011)

http://www.iea.org/weo/docs/weo2011/WEO2011_GoldenAgeofGasReport.pdf (accessed 29/06/11) 40

Ibid

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nuclear, particularly in the wake of Fukushima. An expansion of gas use

alone is no panacea for climate change.41

A less optimistic conclusion was reached by researchers at Cornell, in a report

published in the journal Climate Change42:

Compared to coal, the footprint of shale gas is at least 20% greater and

perhaps more than twice as great on the 20-year horizon, and is

comparable over 100 years.43

Speaking to the BBC the lead author commented:

We have produced the first comprehensive analysis of the greenhouse gas

footprint of shale gas… We have used the best available data [and] the

conclusion is that shale gas may indeed be quite damaging to global

warming, quite likely as bad or worse than coal.44

6.2 Fracking

The practice of Fracking has given rise to some controversy, recognised by the House

of Commons Select Committee on Energy and Climate Change’s 2011 report into

shale gas:

The concern about the impact of more widespread use of hydraulic

fracturing has produced political reactions.45

The key environmental risk identified by the Committee was the possibility of

contaminating drinking water. Quoting evidence gathered from the US Environmental

Protection Agency (EPA), the Committee stated:

We heard during our visit to the US, that the US Environmental Protection

Agency (EPA) believed that—from evidence it had gathered so far—that "if

hydraulic fractures combine with pre-existing faults of fractures that lead to

[drinking water] aquifers or directly extend into aquifers, injection could lead

to the contamination of drinking water supplies by fracturing fluid, natural

gas, and/or natural occurring substances".

During the fracturing process, some of the hydraulic fracturing fluid may

flow through the artificially created fractures to other areas within the shale

gas formation, in a phenomenon known as "fluid leakoff". Fluid leakoff

41

The Guardian Natural gas is no climate change 'panacea', warns IEA (6 June 2011)

http://www.guardian.co.uk/environment/2011/jun/06/natural-gas-climate-change-no-panacea (accessed 29/06/11) 42

Howarth, Robert W, et al Methane and the greenhouse-gas footprint of natural gas from shale formations (April 2011) Climate

Change (2011) 106:679–690 http://www.springerlink.com/content/e384226wr4160653/fulltext.pdf (accessed 29/06/11) 43

BBC News Shale gas 'worse than coal' for climate (12 April 2011) http://www.bbc.co.uk/news/science-environment-13053040

(accessed (29/06/11) 44

Ibid 45

www.parliament.co.uk Energy and Climate Change Committee - Fifth Report Shale Gas (May 2011)

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenergy/795/79502.htm (accessed 29/06/2011)

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during hydraulic fracturing "can exceed 70 percent of the injected volume if

not controlled properly", which could result in fluid migrating into drinking

water aquifers. In comparison, coal-bed methane formations are mostly

shallow, so where hydraulic fracturing is used there is a risk that it could be

happening in—or very near to—shallow drinking water supplies46

The report continues:

During our visit to the US, we heard little concern from environmental

groups, state or federal regulators, or academics on the environmental

impacts of the hydraulic fracturing process itself. Any instances of methane

contamination of groundwater were either blamed on poor well construction

(an issue that applies to conventional as well as unconventional

hydrocarbons) or were thought to pre-date any hydrofracing activity.47

In other sections of the report, the Committee draw attention to the evidence presented

by the World Wildlife Federation on which the report states:

…that it did not believe that shale gas production should be allowed to take

place in the UK. At the very least it considered that "no permits should be

granted for shale gas activity [...] until there is a robust scientific consensus

demonstrating exactly what the risks are.48

Similarly, the Tyndall Centre’s evidence to the Committee concluded that the risk of

local pollution:

… leaves little doubt that in the absence of a much improved understanding

of the extraction process shale gas should not be exploited within the UK.49

The report also makes clear that some regions had either placed a moratorium on

fracking activity or were leaning towards doing so. New York State placed a temporary

halt on the issuing of permits for hydraulic fracturing in August 2010, while the EPA

carried out further research into the process (due 2012).50 The New York ban was to be

lifted in May 201151, but has been extended until June 201252. (Note the section that

follows contains a summary list of fracking moratoriums)

Three permits have been granted in France to date. However, in February 2011, the

French Minister of the Environment stated that ‘in light of the techniques that are used

46

Ibid 47

Ibid 48

Ibid 49

Ibid 50

Ibid 51

CNN New York could be first state to ban controversial drilling practice (December 2010)

http://edition.cnn.com/2010/US/12/02/new.york.fracking.moratorium/index.html (accessed 29/06/11) 52

Fox News State Assembly Passes Moratorium on Hydrofracking (June 2011)

http://www.wicz.com/news2005/viewarticle.asp?a=18943

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in North America, which are understandably criticised, we will heighten our vigilance’.53

A law bringing in an outright ban on fracking in the country passed the lower house of

parliament on its first reading, in May 2011. The law must also pass the Senate for

approval.54

The Commons Select Committee report concluded however, that a moratorium was

unwarranted:

Mitigation of the risk to water aquifers from hydraulic fracturing relies on

companies undertaking the proper measures to protect the environment

from pollution. However, there is no evidence that the hydraulic fracturing

process itself poses a direct risk to underground water aquifers. That

hypothetical and unproven risk must be balanced against the energy

security benefits that shale gas could provide to the UK. We conclude that,

on balance, a moratorium in the UK is not justified or necessary at

present.55

Adding:

We conclude that hydraulic fracturing itself does not pose a direct risk to

water aquifers, provided that the well-casing is intact before this

commences. Rather, any risks that do arise are related to the integrity of

the well, and are no different to issues encountered when exploring for

hydrocarbons in conventional geological formations. We recommend that

the Health and Safety Executive test the integrity of wells before allowing

the licensing of drilling activity.

We recommend that the Environment Agency should insist that all

companies involved in hydraulic fracturing should declare the type,

concentration and volume of all chemicals they are using.

We recommend that before the Environment Agency permits any chemicals

to be used in hydraulic fracturing fluid, they must ensure that they have the

capabilities to monitor for, and potentially detect, these chemicals in local

water supplies.56

A further environmental issue was highlighted by recent events in Blackpool, when the

exploration of shale resulted in a 1.5 magnitude tremor. The test drilling in Blackpool

was being carried out by Cuadrilla Resources, who have stated:

53

Bloomberg French Minister Warns Shale Oil Explorers on Environment (2 February 2011)

http://www.bloomberg.com/news/2011-02-02/french-minister-warns-shale-oil-explorers-on-environment.html (accessed

29/06/11) 54

France 24 French lawmakers back ban on shale gas tapping (11 May 2011) http://www.france24.com/en/20110511-french-

lawmakers-back-ban-shale-gas-tapping# (accessed 29/06/11) 55

www.parliament.co.uk Energy and Climate Change Committee - Fifth Report Shale Gas (May 2011)

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenergy/795/79502.htm (accessed 29/06/2011) 56

Ibid

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We take our responsibilities very seriously and that is why we have stopped

fracking operations to share information and consult with the relevant

authorities and other experts.

We expect that this analysis and subsequent consultation will take a

number of weeks to conclude and we will decide on appropriate actions

after that.57

As a result of the events in Blackpool, MPs for the area have called for a safety inquiry

into shale gas extraction.58

In the Republic of Ireland, where Tamboran have also licensing option, the Department

of Communications, Energy and Natural Resources have stated that fracking would not

go ahead in the Lough Allen basin without a public consultation and environmental

impact assessment.59

In the Irish Times interview, referred to above, Tamboran did not rule out the use of

fracking in stating it would be ‘impractical’ to do so. On the issue of water

contamination the Chief Executive Stated:

We use some chemicals. The bottom line some of the additives we use, we

use a light detergent. It softens the water if you are going to 0.1 per cent by

volume of a light deter much like you would use in a washing machine. We

also use an additive that basically starves the bacteria. There is some really

neat chemistry work that companies are using to try and find a greener

process. There is a company in Alberta called Multichem which is doing a

lot of work for the industry. In the very beginning a test would have very

minor fractures. We need to determine if the rock will crack. A full size frack

is years away because it takes time to understand what the rock will do. It

is not a safety issue. We are just trying to get the best job. Most jobs are

very expensive so we just don’t want to go on a wing and a note.60

7 Identified Bans/Moratoriums

Pennsylvania – The state legislature passed the Marcellus Shale Bill in May 2010 that

enforced a three-year moratorium on further leasing of exploration acreage until a

comprehensive environmental impact assessment has been carried out.61

57

BBC News Blackpool Shale Gas drilling suspended after quake (31 May 2011) http://www.bbc.co.uk/news/uk-england-

lancashire-13599161 (accessed 29/06/11) 58

BBC News Shale gas fracking: MPs call for safety inquiry after tremors (8 June 2011) http://www.bbc.co.uk/news/uk-england-

lancashire-13700575 (accessed 29/06/11) 59

The Irish Times Contentious method key to northwest gas, says company chief (11 June 2011)

http://www.irishtimes.com/newspaper/ireland/2011/0611/1224298736261.html (accessed 29/06/2011) 60

Irish Times Interview with Tamboran chief executive Richard Moorman about the prospects for drilling for natural gas in Lough

Allen (11 June 2011) http://www.irishtimes.com/focus/2011/allen/index.pdf (accessed 29/06/11) 61

NJ Spotlight Lawmakers Declare New Jersey a No-Fracking Zone (March 11)

:http://www.njspotlight.com/stories/11/0310/2151/

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New York State – On August 2010 a temporary moratorium on new shale gas activity

until the US Environmental Protection Agency (EPA) reported on its study of shale

gas.62

New Jersey – A one year moratorium has been in place from 25th August 2011.63

France – France is the first nation to ban hydraulic fracturing.64 The government came

under heavy pressure from concerned citizens; a law was passed, by vote of 176 to

151, on Thursday 30 June 2011.65 As well as the environmental concerns involved;

there was also controversy surrounding the granting of certain exploration permits,

particularly in relation to exploration in the south of the country and in the Paris basin.

Concerns exist within the liberal wing of French parliament that this ‘ban’ contains

certain loopholes which may allow other forms of shale extraction to continue. The new

law provides a two month notification period in which companies with current oil shale

drilling permits must notify the state as to which extraction technique they are using; if

fracking is declared, or if the company fails to respond within that time period, the

permits will be revoked.66

62

Fox News State Assembly Passes Moratorium on Hydrofracking (June 2011) :

http://www.wicz.com/news2005/viewarticle.asp?a=18943 63

Reuters New Jersey issues one-year moratorium on fracking ; http://www.reuters.com/article/2011/08/25/us-shale-newjersey-

idUSTRE77O6VN20110825 64

Planet Save, ‘France is Now First Nation to Ban ‘Fracking’ : http://planetsave.com/2011/07/10/france-is-now-first-nation-

to-ban-fracking/, (accessed 24/10/2011) 65

Le Point, ‘Gaz de schiste : Paris interdit la fracturation hydraulique : http://www.lepoint.fr/economie/gaz-de-schiste-paris-

interdit-la-fracturation-hydraulique-01-07-2011-1348093_28.php (accessed 24/10/2011) 66

Planet Save, ‘France is Now First Nation to Ban ‘Fracking’ : http://planetsave.com/2011/07/10/france-is-now-first-nation-

to-ban-fracking/,(accessed 24/10/2011)

Niar 774-11 Annexe 1

Details of companies which have applied for a fracking licence in Northern Ireland

Company name Registered Office Subsidiary Companies Annual Turnover 2010

Providence Resources Public Limited Company

Airfield House, Airfield Park, Donnybrook, Dublin 4, Co. Dublin

Eirgas Limited, PR Oil and Gas Indonesia Limited, PR Oil and Gas Nigeria Limited, Providence Resources (GOM No 2) LLC, Providence Resources (GOM) LLC, Providence Resources (Gulf) Limited, Providence Resources (Holding USA) LLC, Providence Resources (International) Limited, Providence Resources (Nigeria Holdings) Limited, Providence Resources (Trading) Limited, Providence Resources (US Holdings) Limited, P.R. Singleton Limited, P.R. UK Holdings Limited, Providence Resources (N.I.) Limited, Providence Resources UK Limited

£9,457,000

Rathlin Energy Limited

50 Bedford Street, Belfast, BT2 7FW

Information not available

Unknown

Rathlin Energy (Uk) Limited

20-22 Bedford Row, London, WC1R 4JS, England

Information not available

Unknown