Out-Law News 3 min. read

'Fracking' operations can resume subject to risk assessment and earthquake monitoring, Government says


Energy companies will have to monitor for earthquakes when undertaking hydraulic fracturing, or 'fracking', for shale gas, the Energy Secretary has announced.

Ed Davey has laid out a number of conditions the companies will have to adhere to when conducting fracking activities, but has signalled the go-ahead for those activities to be resumed after the Government called a halt to them in 2011 following safety concerns.

Hydraulic fracturing involves pumping water at high pressure into shale rock to create narrow fractures which allow natural gas contained there to flow out and be captured. Although the technology is still at an early stage, the Government estimates that potentially recoverable shale gas in the UK amounts to almost two years' worth of national gas consumption.

The Department of Energy and Climate Change (DECC) placed a suspension on fracking operations last year pending the outcome of an investigation into how the nature of the work involved presents a risk of seismic earth tremors occurring.

Following the review, Davey has now announced that fracking can resume, but only subject to new controls to mitigate the risk of seismic activity.

"I am satisfied that fracking for shale gas can now in principle resume, and I will be prepared to consent to new proposals, subject to case-by-case scrutiny by my Department, to the new requirements to mitigate seismic hazards, and to confirmation that all other necessary permissions and consents are in place," the Energy Secretary said in a Ministerial Statement.

Under the new controls drilling operators will have to conduct a review to assess the seismic risk that conducting fracking in the area could present prior to commencing operations. Davey said that the companies will also have to submit a "fracking plan" to the DECC to review before "consent" is given to proceed with the activity.

In addition, companies will have to conduct "real time seismic monitoring ... during operations", Davey said, with a new 'traffic light' system introduced to determine when operations should be stopped "and data reviewed if unusual levels of seismic activity is observed".

The energy companies will also have to be more "cautious" with the amount of water they pump into shale rock and the time during which that activity takes place, the Energy Secretary said.

"The fracking plan should be progressive, starting with the injection of small volumes of fluid and analysing the resulting data carefully before the full stage," Davey said. "Each stage of the frac will be carefully designed to use just enough fluid to create a fracture sufficient to enable gas to flow. A flow-back period will be required immediately after each stage to re-balance the pressures."

"Real-time recording of earthquakes during and for 24 hours after each stage of the frac will be analysed to look for abnormal induced events amidst the normal background seismicity. Operators will also be required to monitor the growth in height of the frac away from the borehole. This will allow the operator to evaluate the effectiveness of the frac, but also ensure that the actual fracture is conforming to its design, and that it remains contained and far away from any aquifers," he added.

Earlier this year an independent report commissioned by the Government found that two minor earthquakes, which occurred at a site near Blackpool in April and May last year, were the result of fracking carried out by energy company Cuadrilla. The company suspended drilling in May 2011 pending the investigation.

Davey said that if earth tremors at a magnitude of 0.5 on the Richter scale are recorded by Cuadrilla when it resumes fracking, the company will be required to stop its activities.

"I consider that this is an appropriately precautionary approach," he said. "We received representations in our consultation that this is too cautious, by comparison with the control protocols established for geothermal energy, construction and quarrying projects. I emphasise that this level is adopted only for fracking operations for shale gas, and the reasons for setting it at this level are entirely specific to the context. And it may well prove to be the case that, as our experience of applying this type of control to fracking operations develops, it can be confirmed that trigger levels can be adjusted upwards without compromising the effectiveness of the controls."

Davey said that the DECC will send an independent expert on site at "the first few [fracking] operations" that take place. They will "observe the operator’s conformance to the protocols we have established and ... monitor the operator’s interpretation of data," he added. This will enable DECC to "learn as much as possible from these first operations and to put the lessons promptly into effect".

The Energy Secretary also said that he has also commissioned a study "into the possible impacts of shale gas extraction on greenhouse gas emissions". Professor David Mackay, the DECC's chief scientific adviser and Dr Tim Stone from the Office of Nuclear Development will undertake the study, he added.

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