ENVE-V-034
18th Commission meeting, 24 April 2013
WORKING DOCUMENT
of the
Commission for Environment, Climate Change and Energy
LOCAL AND REGIONAL AUTHORITIES PERSPECTIVE ON
SHALE/TIGHT GAS AND OIL
(UNCONVENTIONAL HYDROCARBONS)
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Rapporteur: Mr Brian Meaney (IE/EA)
Clare County Council and Mid-West Regional Authority
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This document will be discussed at the meeting of the Commission for Environment, Climate
Change and Energy to be held on Wednesday 24 April 2013, beginning at 11 a.m., in Brussels.
DOCUMENT SUBMITTED FOR TRANSLATION: 27 March 2013.
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EN
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-2What are shale/tight gas and oil? (unconventional hydrocarbons)
Shale gas: This is gas that is trapped in typically sedimentary rocks that are fine grained and
composed of tiny layers. This laminate structure causes the shale formations to have a low
permeability.
Tight gas: This is gas that is held in permeably low limestone and sandstone that have a low porosity.
These features do not allow the gas migrate from the rock.
(The above terms can also be used to describe coal seam gas, which is methane extracted from
shallow layers of coal.)
Oil shale: This is unconventional oil recovered from the processing of shallow oil bearing shale rock
formations. There are deposits in Europe most notably in Estonia, Sweden and Germany. The shale
has to be extracted by mining for processing but can also be burnt directly in furnaces.
Tight oil: Oil contained in relatively low porosity and permeability rocks and shale and is extracted in
the same manner as tight gas.
Tar sands: This is for information only as this unconventional hydrocarbon has not been discovered
in significant quantities in Europe but at the moment the Canadian authorities are pursuing a policy of
oil extraction from tar sands - also known as oil sands - in western provinces that are believed to
contain the world’s largest source of oil after Saudi Arabia. The Canadians are lobbying to quash
proposed amendments to the EU Fuel Quality Directive that would label unconventional oil as 20%
more polluting than conventional sources.
Focus on hydraulic fracturing
Hydraulic fracturing, developed initially in 1940 is an effective and commonly-practised technology
for low-permeability reservoirs. When rock permeability is extremely low, as in the case of shale gas
or tight oil, it often takes the combination of horizontal wells and hydraulic fracturing to achieve
commercial rates of production (IEA).
The process of extracting gas from shale involves drilling vertically to reach the shale layer, typically
2-3 kilometres or more below the surface. Drilling then continues horizontally, extending a kilometre
or more from the vertical shaft, and the vertical and horizontal components of the well are lined with
steel casing, cemented in place. The horizontal extension of the casing is then perforated, using
explosives; thereafter, water, carrying sand and proprietary chemicals, is injected into the well at high
pressure. The water encounters the shale through the perforations, generating a series of small
fractures in the rock (hence the term, "fracking"); the sand in the water keeps the cracks open, while
the chemicals enhance release of gas from the shale. The injected water flows back up to the surface
when the pressure in the well is released following completion of the fracking procedure. Then the
well starts to produce gas.
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As many as 25 fracture stages (per horizontal leg) may be involved in preparing a single site for
production, each requiring injection of more than 1.6 million litres of water - a possible total of more
than 38 million litres before the well is fully operational. A portion of the injected water flows back to
the surface, contaminated with the fracking chemicals and others it has absorbed from the shale.
To fully exploit a shale gas formation multiple well heads will have to be drilled and developed.
How much gas is available in Europe?
Exploitation of shale gas in Europe has been limited and there is no commercial production at present.
The US Energy Information Administration has estimated that there are technically recoverable shale
gas resources of 18 trillion cubic meters approx. To put this in context the Leviathan gas field, which
is a large natural gas deposit located in the Mediterranean, discovered in 2010 is estimated to contain
600 billion cubic metres of gas. (This amounts to just over half of 1 trillion cubic metres).
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European reference documentation/information on hydraulic fracturing positions on hydraulic
fracturing
It has to be noted that there is very little hard available data on hydraulic fracturing at European level,
as it is a relatively new activity in Europe. Most of the data is US based. The internet provides readers
with conflicting reports and various websites outlining differing perspectives.
European institutions activity
The European Commission has proposed in its work programme for 2013 to publish a report to
"Facilitate the safe extraction of Unconventional Hydrocarbons" - Green Paper - A 2030 framework
for climate and energy policies recognises the need to address the future exploration of indigenous
sources of conventional and unconventional gas to foster competiveness of EU industry.
Energy 2020 - A strategy for competitive, sustainable and secure energy
Although this document does not contain any direct reference to shale gas, the strategy seeks to find
tools for "providing affordable but cost-reflective and reliable supplies to consumers". The strategy
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-5also requires that energy producers are responsible for protecting European citizens from the risks of
energy production and transport.
Energy Roadmap 2050
This document identifies that gas will be critical for the transformation of the energy system by
helping to reduce emissions and notes that shale gas and other Unconventional Fossil Fuel (UFF) are
potential important new sources of supply.
The European Commission has published three studies carried out by external consultants:
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Report on unconventional gas in Europe (January 2012)
Climate impact of potential shale gas production in the EU (September 2012)
Support to the identification of potential risks for the environment and human health arising from
hydrocarbons operations involving hydraulic fracturing in Europe (September 2012)
In September 2012 the JRC (Joint Research Centre - The European Commission's in house science
service) released a report on shale gas. The study suggests that under a best case scenario, future shale
gas production in Europe could help the EU maintain its dependency on energy imports at around
60% of its total energy needs. But the report also reveals the sometimes considerable uncertainty
about recoverable volumes, technological developments, public acceptance and access to land and
markets.
In March 2013 the JRC launched a European Platform for Shale Gas Development.
For the information of members, in December 2011 the European Commission issued a guidance note
on the application of the EIA Directive to projects related to the exploration and exploitation of
unconventional hydrocarbons. This and the legal assessment determined that the existing EU
environmental legislation applies to practices required for unconventional gas exploration and
production.
A recent open consultation titled "Unconventional fossil fuels in Europe" which closed on 23 March
2013. A stakeholders' event to be organised by Directorate-General Environment on 22 April 2013.
On 18 and 19 September two own-initiative reports were adopted by members of the EP Committees
on Energy (ITRE) and Environment (ENVI).
Several workshops were organised in the European Parliament:
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ITRE hearing on Prospects for shale gas in the EU, 5 October 2011
ENVI workshop on Shale gas and shale oil extraction, 28 February 2012
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PETI (Committee on Petitions) workshop on "the exploration and exploitation of shale gas in the
European Union and its impact on the environment and the energy policy, from the perspective of
petitions received".
Previous opinions of the Committee of the Regions
In the opinion Renewable energy: a major player in the European energy market adopted in February
2013 point 40 states (CDR2182-2012_00_00_TRA_AC):
40.
considers that renewable energy production systems cannot be developed by individual
Member States in isolation. This development is bound up with the achievement of objectives
relating to climate policy, the promotion of the development of new technologies and the
improvement of European energy security by making Europe independent of external energy
supplies. This joint pan-European objective should be implemented jointly by all levels of
government coordinating with each other; at the same time, it is important to keep the
transition towards the possibility of 100% RES in clear view and make sure that
"unconventional" or other forms of energy which may appear as alternatives, but which are
not renewable and therefore not sustainable and do not replace conventional fossil fuels, do
not divert attention and resources from the necessary change to RES.
There are a number of opinions from the CoR, including the above, that request greater development
of the renewable wind energy resource available in Europe. It has to be kept in mind that increasing
usage of wind energy to produce electricity without development of hydro storage will require greater
reliance on gas generation backup capacity to compensate for the intermittent energy supply from
wind turbines and a constantly fluctuating energy demand.
Local and regional authority impacts
The process of hydraulic fracturing for the extraction of unconventional hydrocarbons is an intensive
activity which, in Europe, is generally licensed and regulated by the Member States and national
agencies. The extent of the role of local and regional authorities in the exploration and exploitation of
such hydrocarbons differs among the Member States. For example with shale gas there are varying
experiences where in The Netherlands there was resistance by the provincial authorities to planned
test wells but national government allowed the drilling. In Ireland, local and regional authorities may
not even have a normal role in the planning consent process as developers will probably use the
national planning process to bypass the local authorities. In contrast to this, the German Länder has
greater competence than the federal state.
There are some roles common to many local and regional authorities (LRAs) across the EU:
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Planning: Local planning permission and attached conditions for site construction standards are
given by local planning authorities together with local/regional environment agencies. The
planning regime is designed to regulate environmental impacts associated with visual intrusion,
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traffic, noise, air quality, pollution. As a result, LRAs can, amongst other conditions, define
restricted hours of operation, maximum vehicle movements, specifications for fencing, screening
and pad construction and the type and scope of environmental monitoring.
Permits: Additionally, before developing shale gas wells, companies need to get relevant permits
from national and/or LRAs. In Poland's case, geological work, construction, waste management
and emission-related permits are necessary.
Environmental assessment: In most cases, LRAs participate in preparing environmental impact
assessment for shale gas exploration. According to the assessment results, LRAs can make their
decisions whether to issue relevant permits.
Consultation: LRAs can consult each other or national authorities in forming their decisions.
Legislative power: Depending on specific national legislation, some LRAs have abilities to
enforce specific rules. For example, the German Länder can adopt particular regulation differing
from the legislation of the federal state. In fields of shale gas, this applies to nature preservation,
land use and water management.
Some key issues for local authorities
LRAs need for environmental and risk assessment for each hydraulic fracturing facility
In order to clearly assess environmental impact of shale gas-related activities, both environmental
impact assessment and environmental risk assessment are required for each "fracking" operation. This
would help to prioritise risks and support more proportional risk management which the local
authorities will be involved in.
Base line assessments
A vital part of the EIA from the local and regional perspective will be an independent verifiable
determination of existing environmental conditions in areas where hydraulic fracturing is proposed.
This base line determination will have to concentrate on existing human health conditions. Also
ground and surface water levels and the quality of those water bodies will have to be established.
Existing air quality and seismological data conditions should be of particular focus as well as the
other standard flora and fauna assessments.
Planning
Local and regional authorities will require evidence based regulation relating to proximity of
hydraulic fracturing and gas extraction to homes and places of work, schools, scenic amenities and
protected areas. The assessment and capability of road and other infrastructure to sustain activity
related to shale gas extraction has to be a major determining factor for LRAs.
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-8Fire safety
What role/interactions or extra responsibilities will be placed on the fire services of the local
authorities?
Water
Local and regional authorities, in many cases are the authorities responsible for water governance will
require regulation that ensures the construction and operation of the wellbores and holding ponds to
have no impact on surrounding aquifers which are often an important source of drinking water for
individual residents and municipal and group supplies in rural areas.
The impact of the large water usage required by hydraulic fracturing on the aquifers and existing
supplies should be determined.
A fraction of the contaminated water that returns to the surface is recycled and re-injected into the
well to facilitate parts of the "fracking" process. But a larger proportion is stored temporarily in lined
ponds on site for eventual transfer (most commonly by truck) to conventional water-treatment
facilities. Care must be exercised to protect groundwater from spillage and to guard against potential
leakage from the ponds. Moreover, the facilities to which the contaminated water is eventually
transferred may be ill-prepared to deal with the challenges posed by its unusual chemical
composition; for instance, conventional local authority treatment facilities are not equipped to deal the
chemicals used in hydraulic fracturing. Also, radioactive materials that may be present in the geology
of the well could be transferred to the water bodies receiving the treated effluent, providing further
problems and costs for local and regional authorities.
Transparency and disclosure of the chemicals used
There should be an obligation to inform the LRAs and the public of the chemical content and
concentration of fracturing fluids.
Greenhouse gas emissions
Careless drilling and production from "fracked wells" has resulted in fugitive emissions of methane
from the shale below. Such inadvertent releases of methane could more than offset the advantages
otherwise realised by reducing emissions of CO2 through substituting natural gas for other fuels.
Local and regional authorities will need clear direction as there is widely conflicting information on
the matter. Local and regional authorities are very much engaged in monitoring, measuring and
reducing the greenhouse gas emissions from their functional areas through the energy agencies they
fund and accurate information will be required.
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-9Well abandonment
When shale and tight gas wells are depleted particular attention has to be given to plugging these
wells to ensure they are not sources of contamination to ground and surface water bodies. In cases like
this in other extractive industries local authorities have been left to deal with tailings ponds containing
toxic chemicals, without any resources to monitor and rehabilitate if the companies involved in these
activities no longer exist. It is necessary not to repeat the mistakes of the past. Realistic financial and
resource bonds will be required by local and regional authorities.
Economic and social impacts
It is argued that hydraulic fracturing activity will provide employment in local authority areas with
further benefits to local authority income streams. This may bring about some temporary population
and industry movements. To what extent can local and regional authorities and their populations
directly benefit?
I ask the members to give consideration to the points raised in this document and do realise it is not an
exhaustive assessment of the local and regional perspective. I request your opinion in dealing with
issues relevant for local and regional authorities.
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