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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 far. Dr Tony Grayling Head of Climate Change and Communities Environment Agency of England and Wales Bulgarian Energy Forum Sofia, 11-12 December 2012. Overview of presentation. Current situation in the UK

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Managing environmental risks from shale gas exploration – the UK’s experience so far

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  1. Managing environmental risks from shale gas exploration – the UK’s experience so far Dr Tony Grayling Head of Climate Change and Communities Environment Agency of England and Wales Bulgarian Energy Forum Sofia, 11-12 December 2012

  2. Overview of presentation • Current situation in the UK • Environmental risks and regulation • Next steps

  3. State of play on shale gas in UK • UK 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 well • Independent review recommended fracking could safely resume with strict monitoring and controls • Other holders of petroleum licences showing interest, but have plans only for drilling • Too early to speculate on reserves or possible production

  4. UK Government perspective • Gas will continue to play a major role in UK energy on a path to decarbonisation • If it can be shown to be economic and safe, UK shale gas could offer a significant opportunity • Department of Energy and Climate Change (DECC) will establish an Office of Unconventional Gas and Oil • Treasury consulting on tax regime for future production • Announcement on fracking expected shortly

  5. Shale basins in Great Britain

  6. Estimates of UK shale gas resource

  7. Current proposals for shale and coal bed methane exploration in England and Wales Five sites in Lancashire - Cuadrilla Beverley Rathlin Energy Three sites in South Wales, Neath, Maesteg, Llandow - Coastal Oil and Gas Ltd. Possibly three sites Mendip Hills: UK Methane and Eden Energy Woodnesborough, Kent + others? Coastal Oil and Gas Ltd. Balcombe, W Sussex: Cuadrilla

  8. Public concerns 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 Energy firm Cuadrilla discovers huge gas reserves under Lancashire theguardian Bath hot springs concerns on fracking proposal

  9. 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)

  10. Regulation in Great Britain - exploration DECC: award of exclusive Petroleum Exploration & Development Licence after open competition Local Authority Planning Permission DECC: online well application for <96 hr testing EA/SEPA Statutory Consultee HSE 21 dayNotification/ Well integrity • EA/SEPA • Notices • Abstraction licences • Discharge & RSR permits DECC checks with HSE/EA/SEPA issues well consent DECC: 90-day extended well test (EWT), if required, setting limit on hydrocarbons produced, vented or flared. Exploration Well

  11. Environmental risks of exploration Gas emissions to atmosphere Clean water Storage tanks Well pad To river or STW WaterTable Possible Aquifer Confining Layers Production Zone Impact on water resources from water used in hydraulic fracturing Inadequate transport or processing of produced gas Fugitive emissions of methane Inadequate treatment/disposal of drill cuttings Inadequate transport or treatment of waste waters Contamination of soil, surface or groundwater due to spills of chemicals or return fluids Contamination of groundwater due to poor well design or failure Contamination of groundwater due to mobilization of solutes or methane

  12. Environmental controls (England and Wales)

  13. Environment Agency position • All exploratory shale gas operations will require environmental permits • Current regulation is adequate for small scale exploration, but keeping under review • We are looking at ways to streamline the existing permitting process • We continue to work closely with the UK and Welsh governments and other regulators

  14. Next steps for the Environment Agency • Publish our guidance note setting out our approach to regulating exploratory activities • Determine permits for Cuadrilla sites in Lancashire • Develop detailed technical guidance for operators • Streamline and strengthen the permitting process • Develop our position for full scale development

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