Information on Shale Resources, Development, and Environmental and Public Health Risks
Managing environmental risks from shale gas exploration – the UK’s experience so far
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Transcript of Managing environmental risks from shale gas exploration – the UK’s experience so far
Managing environmental risks from shale gas exploration – the UK’s experience so farDr Tony GraylingHead of Climate Change and CommunitiesEnvironment Agency of England and Wales
Bulgarian Energy ForumSofia, 11-12 December 2012
Overview of presentation
Current situation in the UK
Environmental risks and regulation
Next steps
State of play on shale gas in UKUK still at a very early stage: three wells drilled by Cuadrilla in Lancashire, one partly ‘fracked’Further fracking suspended for investigation of two small earthquakes at first wellIndependent review recommended fracking could safely resume with strict monitoring and controlsOther holders of petroleum licences showing interest, but have plans only for drillingToo early to speculate on reserves or possible production
UK Government perspectiveGas will continue to play a major role in UK energy on a path to decarbonisationIf it can be shown to be economic and safe, UK shale gas could offer a significant opportunityDepartment of Energy and Climate Change (DECC) will establish an Office of Unconventional Gas and OilTreasury consulting on tax regime for future productionAnnouncement on fracking expected shortly
Shale basins in Great Britain
Estimates of UK shale gas resourceBGS first estimate
150 billion m3 gas (recoverable resource) in Bowland shale – estimate made before any exploration
US EIA estimate
2,700 billion m3 gas in place in Bowland shale, of which 540 billion m3 technically recoverable;57 billion m3 gas in place in Weald/Wessex, of which less than half is technically recoverable
Company estimates
6,000 billion m3 overall estimate of gas in place for their concessions(c.f. UK annual gas consumption 90 billion m3)
Current proposals for shale and coal bed methane exploration in England and Wales
Five sites in Lancashire -
Cuadrilla Three sites in South Wales,
Neath, Maesteg, Llandow - Coastal Oil and Gas Ltd.
Woodnesborough, Kent + others?Coastal Oil and
Gas Ltd.
Possibly three sitesMendip Hills:
UK Methane and Eden Energy
Balcombe, W Sussex: Cuadrilla
Beverley Rathlin Energy
Public concerns
Energy firm Cuadrilla discovers huge gas reserves under Lancashire
theguardian
Shale gas drilling rig of Cuadrilla Resources near Blackpool. Photograph Christopher Furlong/Getty Images
GREEN Party leader Caroline Lucas is calling for licences for hydraulic fracturing, also known as fracking, to be withdrawn in the UK
Bath hot springs concerns on fracking proposal
Regulatory authorities in Great Britain
Department of Energy and Climate Change (DECC)Environment Agency (England and Wales) (EA)Scottish Environment Protection Agency (SEPA)Health and Safety Executive (HSE)Local Authorities (LA)
Regulation in Great Britain - exploration
DECC checks with HSE/EA/SEPA issues well consent
DECC: online well application for <96 hr testing
DECC: 90-day extended well test (EWT), if required, setting limit on hydrocarbons produced, vented or flared.
DECC: award of exclusive Petroleum Exploration & Development Licence after open competition
Local Authority Planning Permission
HSE 21 day
Notification/ Well integrity
EA/SEPA • Notices• Abstraction licences• Discharge & RSR permits
EA/SEPA Statutory Consultee
Exploration Well
Clean water
Possible Aquifer
Confining Layers
Water Table
To river or STW
Gas emissions to atmosphere
Well padStorage tanks
Production Zone
Environmental risks of exploration
Contamination of groundwater due to
mobilization of solutes or methane
Contamination of groundwater due to poor well design or
failure
Fugitive emissions of
methane
Contamination of soil, surface or
groundwater due to spills of
chemicals or return fluids
Inadequate transport or treatment of waste waters
Impact on water resources from water used in
hydraulic fracturing
Inadequate transport or
processing of produced gas
Inadequate treatment/disposal
of drill cuttings
Environmental controls (England and Wales)Risk ControlsGroundwater pollution
Water Framework Directive and Groundwater Daughter Directive through the Water Resources Act and Environmental Permitting Regulations (EPR): Regulate discharges to groundwater, require disclosure of chemicals. Borehole regulations (HSE) also protect the environment.
Surface spills Planning regime for site construction standards. EPR regulates discharges to surface water and groundwater.
Disposal of used fracking fluid
Mining Waste Directive through EPR: Waste management plan must be approved by the Environment Agency. Euratom Treaty if naturally occurring radioactive materials, via EPR.
Over abstraction of water
Abstraction licensing under the Water Resources Act.
Fugitive methane emissions
Mining Waste Directive through EPR. Conditions under Petroleum Licences (DECC) for flaring and venting. Borehole regulations (HSE).
Environment Agency position
All exploratory shale gas operations will require environmental permitsCurrent regulation is adequate for small scale exploration, but keeping under reviewWe are looking at ways to streamline the existing permitting processWe continue to work closely with the UK and Welsh governments and other regulators
Next steps for the Environment Agency
Publish our guidance note setting out our approach to regulating exploratory activitiesDetermine permits for Cuadrilla sites in LancashireDevelop detailed technical guidance for operatorsStreamline and strengthen the permitting processDevelop our position for full scale development