Out-Law News 2 min. read
03 Dec 2013, 4:35 pm
The memorandum of understanding between the two groups was published alongside a policy statement from Water UK (4-page / 109KB PDF) setting out the trade body's belief that the impact of hydraulic fracturing, or 'fracking', on water supplies could be minimised as long as regulatory requirements are properly enforced. Together with the UK Onshore Operators Group (UKOOG), it has agreed to a number of actions to reassure members of the public that the effect of shale gas exploration on water supplies will be limited.
Energy and environmental law expert David Ross of Pinsent Masons, the law firm behind Out-Law.com, said that the agreement was good news for both the fledgling shale industry and for local communities.
"It is also good news for the communities surrounding shale gas sites, as this commitment on shale gas developers to cooperate with Water UK adds an extra layer of water protection on top of the already extensive regulations affecting shale gas extraction. This protection may be extended further should Water UK prove successful in its lobbying to include water firms as statutory consultees on planning applications for shale gas extraction," he said.
"DECC estimated recently that each well may require 10-30 million litres to hydraulically fracture," he said. "Along with the perceived risks of groundwater contamination, the importance of water in the shale gas extraction process cannot be understated. On that basis, the Memorandum of Understanding can only be positive news for the industry; particularly as Water UK has now stated it believes that the risks to water can be mitigated."
Shale gas is natural gas trapped within shale formations at significant depths below ground. It has become an increasingly important source of natural gas in the US, particularly over the past decade, where a combination of drilling and 'fracking' has facilitated access to large volumes of shale gas that were previously uneconomical to exploit. Fracking involves pumping water at high pressure into shale rock to create narrow fractures, through which trapped gas can flow out and be captured.
Under the terms of their agreement, Water UK and the UKOOG will draw up plans for monitoring fracking sites and preventing water shortages. These will include general monitoring of local water quality and quantity; site-specific water management plans, with a particular focus on water reuse; development plans, including the likely short- and long-term impacts on water supplies of expanding exploration and development within a local area; and monitoring the volume and composition of waste water for disposal.
"This agreement with Water UK should give reassurance to local communities that the development of shale gas in the UK can proceed with minimal impact upon the local water and waste services," said UKOOG chief executive Ken Cronin.
"The environmental regulation covering the onshore oil and gas industry in the UK is among the most stringent in the world and, in addition, the industry has agreed to tough and transparent guidelines on how we operate and interact with local communities," he said.
