Public Consultation on UGEE

An Comhchoiste um

Chumarsáid, Gníomhú ar son na hAeráide

agus Comhshaol

Joint Committee on

Communications, Climate Action

and EnvironmenT

DRAFT Public Consultation

on the

Prohibition of the Exploration and Extraction

of Onshore Petroleum Bill 2016

and

the EPA led Joint Research Programme

on the Impacts of

Hydraulic Fracturing

on the

Environment and Human Health 2016

Revised Closing date: Friday 10February 2017

Monday30 January 2017

Table of Contents

1.Introduction

1.1.Public Consultation

1.2.Themes

1.3.Making Submissions

1.4.Format of Submissions

1.5.Making a submission is a public process

1.6.Closing Date

1.7.Web site

1.8.Queries

2.Background

2.1.UGEE

Prohibition of hydraulic fracturing or fracking – Private Members Business in the Dáil, Thursday 27th October 2016

The Bill

Fracking & potential environmental concerns

Environmental Protection AgencyFracking Report

Future trends

SWAN Report

US EPA report

Other countries

Unconventional Gas Exploration & Extraction (UGEE)

Trade Agreements

Amendment to Motion for Second Reading (not moved)

Theme 1: Bill

Interpretation

Prohibition

Short title

Questions arising:

Theme 2: Legal issues

Questions arising:

Theme 3: Constitutional Issues

Questions arising:

Theme 4: North – South Issues

Questions arising:

Theme 5: EPA report – general

Questions arising:

Theme 6: EPA Report - Water

Groundwater, surface water and associated eco-systems

Seismicity

Air Quality

Questions arising:

Theme 7: EPA Report – Impacts and Mitigation Measures

Questions arising:

Theme 8: EPA Report – Regulatory Framework

Questions arising:

1.Introduction

1.1.Public Consultation

The Joint Committee is carrying out a public consultation ON THE PROHIBITION OF THE EXPLORATION AND EXTRACTION OF ONSHORE PETROLEUM BILL 2016

AND

THE EPA LED JOINT RESEARCH PROGRAMME ON THE IMPACTS OF HYDRAULIC FRACTURING ON THE ENVIRONMENT AND HUMAN HEALTH 2016

You are invited to read the bill, explanatory memorandum and other documents, and consider the themes listed below.

1.2.Themes

Theme 1: Bill

Theme 2: Legal issues

Theme 3: Constitutional Issues

Theme 4: North – South Issues

Theme 5: EPA report – general

Theme 6: EPA report - Water

  • Ground Water
  • Surface Water
  • Associated Ecosystems
  • Seismicity
  • Air Quality

Theme 7 EPA report - Impacts and Mitigation Measures

Theme 8 EPA report - Regulatory Framework

1.3.Making Submissions

Written submissions and communications should be sent by email to:

and /or by post to:

The Clerk
Joint Committee on Communications, Climate Action and Environment
Houses of the Oireachtas
Leinster House
Kildare Street
Dublin 2
D02 XR20
Ireland

Submissions should be received not later than the closing date below.

The Committee will consider any suitable written submissions received and may decide to invite a number of contributors to public hearings should it be considered necessary.

Submissions and communications should only be sent to the email address above and not to individual members of the Committee.

Please note that the Clerk will ensure that all members of the Committee receive, in due course, copies of all submissions and communications received.

1.4.Format of Submissions

Guidelines

As a general guideline, submissions should consist of:

  • a covering letter (email or email attachment in MS Word or equivalent);
  • a main submission document (email or email attachment in MS Word or equivalent).

The covering letter should contain your name and contact details (phone number and postal address and, if available, an email address). If the submission is on behalf of an organisation, you should indicate your position in the organisation. If your submission is on behalf of another organisation, please make this clear in your letter.

Details to be contained in submissions

The main submission document should contain the following information:

1.Your name;

2.A brief introduction, for example, explaining your area of expertise;

3.Any factual information that you have to offer from which the Committee might be able to draw conclusions, or which could be put to other parties for their reactions;

4.Any recommendations to the Committee which should be as specific as possible and should be summarised at the end of the document;

5.An executive summary of the main points made in the submission, if your document is more than 10 pages long;

6.Whether you would be prepared to appear at a public session of the committee.

1.5.Making a submission is a public process

The Committee is not obliged to accept your document once it has been submitted, nor is it obliged to publish any or all of the submissions if it has received or accepted.

However, the operation of a parliament is a public process, and you should be aware that any submissions made to a Committee may be published either as part of a Committee report, or separately, if the Committee decides to do so.

1.6.Closing Date

The revised closing date for receipt of submissions will beFriday 10 February 2017.

Late submissions will be circulated to the committee, but there is no guarantee that they will be taken into account when the committee is considering its report.

1.7.Web site

The committee has set up a web site for this public consultation including links to relevant documents and the full text of committee meetings.

1.8.Queries

Should you have any queries in relation to this matter, please email:

or contact:

  • Leo Bollins, Clerk to the Committee, at 01 618 3575

or

  • Jack Nugent, Policy Advisor, at 01 618 3529
    or
  • Lisa Kiely, Junior Clerk, at 01 618 4053

2.Background

2.1.UGEE

Prohibition of hydraulic fracturing or fracking – Private Members Business in the Dáil, Thursday 27th October 2016

Prohibitionof theExploration and Extraction of Onshore Petroleum Bill 2016

The Bill

The Explanatory Memorandumstates that the bill proposes “the prohibition of any exploration or extraction of petroleum from rock that requires additional processes to increase the permeability of the rock and aid in the extraction of petroleum from lithologies, the shale rock, tight sands and coal seams.” According to the explanatory memothisincludes but is not limited to the process of hydraulic fracturing or fracking.

Fracking & potential environmental concerns

“Hydraulic fracturing, or ‘fracking’, is a method used by drilling engineers to stimulate or improve fluid flow from rocks in the subsurface. In brief, the technique involves pumping a water-rich fluid into a borehole until the fluid pressure at depth causes the rock to fracture… After the fracking job, the pressure in the well is dropped and the water containing released natural gas flows back to the well head at the surface.” (David Healy 2012)

There has been a recent surge in the exploitation of shale gas by fracking. This is due in part to the fact that fracking,in combination with advanced directional drilling techniques has made it possible to economically extract oil and gas from unconventional resources, such as shale, tight formations, and coalbeds (US EPA 2015). However, this method may pose risks. According to Healy (2012), concerns raised in the media, and to a much lesser extent in scientific literature, relate to potential environmental impacts from frackingandinclude:

  • Earthquakes;
  • Pollution of groundwater and subsequently, potential pollution of drinking water;
  • Emissions of greenhouse gases including methane; and
  • Leakage of contaminated drilling waste fluid from storage ponds.

Environmental Protection AgencyFracking Report

In 2011, the Environmental Protection Agency (EPA) was requested by Mr. Pat Rabbitte TD, the then Minister for Communications, Energy and Natural Resources, to commission and coordinate the management of research in relation to the environmental impacts of Unconventional Gas Exploration & Extraction (UGEE) (EPA 2015). The UGEE research project is funded by the EPA, the Department of Communications, Climate Action and Environment(formerly the Departmentof Communications, Energy and Natural Resources) and the Northern Ireland Environment Agency.

In 2012 the EPA published a preliminary report on the potential environmental and human health impacts offracking,‘Hydraulic Fracturing or ‘Fracking’: A Short Summary of Current Knowledge and Potential Environmental Impacts’ (David Healy 2012).

In 2014, the EPA held a public consultation on the Terms of Reference for the UGEE research project. In August 2014, a contract was awarded to a consortium led by CDM Smith Ireland Limited for a 24-month research programme looking at the potential impacts on the environment and human health from UGEE projects and operations (including construction, operation and aftercare). The research programme comprises five projects involving environmental field studies, such as baseline monitoring of water and seismicity and an extensive desk-based literature review of UGEE practices worldwide (EPA 2016). The research project is scheduled for completion by the end of the year. Status updates are available on theEPA website here.

Regarding the UGEE research project, “no fracking will be undertaken as part of the research programme” (EPA 2016a) andaccording to theDepartment“no decisions will be made on any proposal for the use of hydraulic fracturing in exploration drilling as part of an unconventional gas exploration programme, until there has been time to consider the outcome of the research programme” (Department of Communications, Climate Action and Environment 2016).

During the second stage debate in Dáil Éireann on 27 October on the Prohibition of the Exploration and Extraction of Onshore Petroleum Bill 2016, the Minister for Communications, Climate Action and Environment, Denis Naughten TD indicated his strong view that the work of the Oireachtas Committee on Communications, Climate Action and Environment in respect of the Bill would be considerably aided and advanced by being able to consider the outcome of the Environmental Protection Agency led Joint Research Programme on the Impacts of Hydraulic Fracturing on the Environment and Human Health.

The Report of the Environmental Protection Agency led Joint Research Programme was published on 30 November 2016, in the following parts:

  • Integrated Synthesis Report
  • Summary Report 1: Baseline Characterisation of Groundwater, Surface Water and Aquatic Ecosystems
  • Summary Report 2: Baseline Characterisation of Seismicity
  • Summary Report 3: Baseline Characterisation of Air Quality
  • Summary Report 4: Impacts and Mitigation Measures
  • Summary Report 5: Regulatory Framework for Environmental Protection

The full suite of documents associated with Report of the Environmental Protection Agency led Joint Research Programme can be accessed at:

Future trends

The Government (2011-2016) published its White Paper on Energy, Ireland’s transition to a low carbon energy future in December 2015 which commits Ireland to radically reducing our dependence on fossil fuels and also our greenhouse gas emissions by 2050. The paper acknowledges however, that oil and gas will continue to play a role in Ireland’s energy mix well into this century, albeit on a declining basis over time. Ireland’s indigenous natural gas supply will play an important role in our security of supply. It is expected that at peak production, gas from the Corrib field will provide up to 42% of our natural gas needs over the first two years of operation.

The White Paper on Energy refers to the EPA study on UGEE and states that no policy decision on fracking will be made prior to the publication of the research findings. It further acknowledges that any decision will be taken in the context of the aim of reaching zero carbon emissions by 2050.

SWAN Report

The Sustainable Water Network (SWAN) is an umbrella network of 26 of Ireland’s leading environmental NGOs.On 25th October 2016 SWAN published the report, Hydraulic Fracturing ─ Interactions with the Water Framework Directive & Groundwater Directive and Implications for the Status of Ireland’s Waters. The report found that fracking for shale gasis incompatible with good water quality and recommended its prohibition in Ireland.

US EPA report

Fracking is widely usedin the States and is responsible for the fall in US gas prices due to the increase in domestic gasproduction.However, environmental concernshave led to some controversy.

The US Congress urged the US EPA to study the relationship between fracking and drinking water. In 2015 the EPA published their draft report, The Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources (External Review Draft). The report concluded that there “there are above and below ground mechanisms by which hydraulic fracturing activities have the potential to impact drinking water resources”. However, they also noted that “We did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States.” (Taken from the Executive Summary page 6).

However, in the final version of the report, this conclusion has been removed on the grounds that the claim “could not be quantitatively supported” by the EPA scientists involved in the research. (New York Times, 13th December 2016).

Other countries

Fracking was banned in France in 2011 in response to pressure from environmental groups. While the previous and current UK Governments have been in favour of it, fracking in the UK was suspended in 2011 when drilling near Blackpool caused mini earthquakes. Whilethe moratorium was lifted in 2012, many fracking applications have been turned down. However, earlier this month the Government overruled a council decision to block oil and gas company Cuadrilla carrying out test drilling in Lancashire (Equal Times, 26 October 2016). The moratorium remains in place in Scotland and Wales and fracking is currently banned in Northern Ireland (Belfast Telegraph, 28th September 2015).

Unconventional Gas Exploration & Extraction (UGEE)

Ireland is a country that is rich in sedimentary rocks, such as shale. Shale, in particular, can be exploited in such a way so as to produce natural gas. Given that the international oil and gas markets are often unstable for various reasons, exploitation of such gas represents an opportunity for governments to ensure that their energy needs are met, while exploration firms are keen to find new resources to bring to the market.

Shale gas is usually exploited through a method known as hydraulic fracturing, or as it is more commonly known, fracking. The process, essentially, involves injecting a mixture of water, small particles known as proppant, and often chemicals down a gas or oil well where the sheer pressure will crack apart (fracture) the rocks inside, releasing trapped oil and gas that can flow to the surface and be captured.

A report commissioned by the Environmental Protection Agency (EPA) in 2012, which will come under the aegis of the Department,[1] explored fracking, with particular emphasis on the challenges presented by the process.[2] The report used information gathered in the United States and the United Kingdom in an attempt to shed some light on the process. The most serious environmental concern, according to the report, is that of ground water contamination.[3] The potential risk to ground water has been documented as coming from two sources: the injected fluid (water + chemical additives) and the released natural gas. However, the report had the following to say on the matter:

There may be an element of confusion in the media and in the wider public understanding, between contamination incidents from coal bed methane (or coal seam gas) fracking jobs, which occur at a relatively shallow depth closer to the water table, and alleged incidents from shale gas fracking, which is generally much deeper (thousands of feet or metres below the surface) and much further from any ground water aquifer and therefore presenting less of a risk for ground water contamination. That said, each shale gas play is unique…[4]

Other challenges presented by the report include the issue with the use of chemical additives, noting that in some countries fracking companies are under no legal obligation to declare the exact composition of the mixture used (although the Irish regulatory regime requires full disclosure of all additives to the EPA), and the issue of where to source the vast amounts of water needed, noting that the extraction of water from small catchments could have an impact on the ecology and hydrology of rivers in the relevant areas.

To date, no commercial licenses for fracking have been issued by the EPA in Ireland. The EPA awarded a contract to CDM Smith Ireland Limited in August 2014 to carry out a 24-month research programme looking at the potential impacts on the environment and human health from UGEE projects and operations. The research, intended to be completed in two overlapping phases, involves extensive desk-based work (literature review and assessment) by technical experts (Phase 1), as well as baseline-monitoring of seismicity and water resources (Phase 2). The EPA had the following to say on the prospective findings of the study:

The desk-based work (Phase 1) has now been substantially completed. In January 2016, the EPA was requested by DCENR [Department of Communications, Energy and Natural Resources] to pause the next Phase of the research to allow time to review the multiple outputs of Phase 1. Following consideration of this request by the project Steering Committee, the Steering Committee has agreed to complete Phase 1 of the study before any decision is made about future work.[5]

As such, it is unclear when exactly the findings of the research programme will be published, although it was originally anticipated that the programme would be completed by July 2016.[6]

Members should perhaps be aware that the Joint Committee on Transport and Communications met with the EPA to discuss the potential impacts of hydraulic fracturing in June 2015 and again to discuss UGEE in December 2015.[7]

Trade Agreements

The committee may wish to note the potential future importance of the proposed Transatlantic Trade Investment Partnership (TTIP) between the EU and the United States of America and how this agreement may have an impact on issues that the Committee may wish to consider.

The proposed Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada is another trade agreement that could have an effect on areas relevant to this Committee.

While these trade agreements are not within the orders of reference of the committee, the committee may wish to maintain a “watching brief” on the negotiations, and should any aspect of either of these trade agreements fall within the competence of this Committee, then Members may wish to issue a report should they have any observations to make.

The committee may wish to note that in July 2014, the Joint Committee on EU affairs submitted a political contribution to the EU institutions to voice the committee’s observations on TTIP.