Opening Statement by the Department of Communications, Climate Action and Environment
Meeting of Joint Oireachtas Committee on Communications, Climate Action and Environment
Tuesday 31 January 2017
Introduction
First of all I would like to thank the Committee, for inviting the Department to participate in today’s hearings on the report of the Environmental Protection Agency (EPA) led Joint Research Programme on Unconventional Gas Exploration and Extraction (UGEE). I hope today’s exchange will be of benefit to the Committee in its consideration of this important issue.
I would also like confirm that the moratorium introduced in 2011 by former Ministers Rabbitte and O’ Dowd on the use of unconventional gas exploration and extraction is still in place, and continued by successive Ministers.
Additionally wouldlike to acknowledge that while the EPA led Joint Research Programme has taken longer than initially envisaged to report, the nature of research is that it needs to be accurate and to appropriately inform the questions asked and the report on the potential impacts of UGEE on the environment and human certainly provides a good basis for coming to appropriate conclusions about the use of this technology in Ireland.
Background
During the latter half of 2009 a number of parties expressed interest in acreage in respect of areas in the North WestCarboniferous Basin. Two applications for Licensing Options over the North West Carboniferous Basin were applied for. It was considered unusual to have two or more simultaneous applications for the same acreage in an open area. Normally single applications are received and assessed on the basis of quality of work programme, technical competence, financial resources etc.
A number of options were open to the Department in these circumstances:
- Proceed with a comparative assessment of the two Licensing Option applications received to date.
- Implement a competitive licensing application process over the two areas and assess applications received on the basis of clearly defined selection criteria and marking system.
The second option was considered to be the preferred option in the public interest, as it was the option that was most likely to result in an effective exploration programme being carried out. It was considered that it would also ensure that all of the parties that had in the preceding months engaged with the Department in relation to the acreage and who had invested resources in assessing its exploration potential, would be given a reasonable chance to make an application for acreage.
In February, 2011 following an open competition, onshore petroleum licensing options were awarded to:
- Tamboran Resources PTY Ltd over parts of counties Cavan, Leitrim and Sligo;
- Lough Allen Natural Gas Company Ltd over parts of counties Cavan, Leitrim, Roscommon and Sligo;
- Enegi Oil Plc over parts of County Clare.
It may be helpful for Members of the Committee to know that, separately, Tamboran Resources Pty Ltd was also awarded a five-year exploration licence by the Northern Ireland authorities over adjacent acreage in Country Fermanagh.
The Licensing Options, which we awarded in 2011, were for a two-year period from 1st March 2011 to 28th February 2013 and specifically excluded exploration drilling.
It is important to note that this licensing round was not held in the interests of promoting hydraulic fracking in Ireland but rather in the interests of exploiting the hydrocarbon potential in the acreage.
As both international and domestic concerns with regard to the potential environmental impacts of this technology grew,in October 2011 the former Minister for Communications, Energy and Natural Resources, Mr. Pat Rabbitte, requested such advice from the EPA with respect to the potential environmental impacts from unconventional gas exploration and exploitation.
As part of its statutory remit, the Environmental Protection Agency (EPA) provides, when requestedby a Minister of the Government, information or advice or makes recommendations for the purposes of environmental protection to any Minister on any matter relating to his functions or responsibilities..
In May 2012, the EPA published the outcome of a small-scale studycommissioned from the University of Aberdeen called “Hydraulic Fracturing or ‘Fracking’: A Short Summary of Current Knowledge and Potential Environmental Impacts”., which recommended that further research be undertaken..
Steering Committee
The Unconventional Gas Exploration and Extraction (UGEE) Research Programme is a jointly funded initiative between the then Department of Communications, Energy and Natural Resources, now the Department of Communications, Climate Action and the Environment, the Northern Ireland Environment Agency and the Environmental Protection Agency. The Programme is managed by the EPA on behalf of the funders with oversight from a Steering Group.
The EPA established the Steering Group to determine the scope of the research to be undertaken. Membership of the Steering Committee included representatives from the EPA, this Department (Petroleum Affairs Division and Geological Survey of Ireland); the Commission for Energy Regulation; An BordPleanála; the Northern Ireland Environment Agency, the Geological Survey of Northern Ireland and the Health Services Executive. The draft terms of reference drawn up by this Committee for the research programme were subsequently the subject of a public consultation process and the findings of this consultation resulted in the impacts on human health being included in the scope of the research programme.
The contract award procedure chosen for this competition was by open procedure. Six tenders were received. The contract was awarded following a robust evaluation process in compliance with procurement guidelines. The constitution of the evaluation panel was approved by the project Steering Committee and included personnel with the capacity to make informed decisions on the tenders received. The evaluation panel consisted of 26 existing and retired personnel from the following organisations:
· An BordPleanala
· Commission for Energy Regulation (CER)
· Department of Communications, Energy & Natural Resources (DCENR)
· Department of the Environment Community and Local Government (DECLG)
· Department of the Environment – Northern Ireland (DOENI)
· Environmental Protection Agency (EPA)
· ETH Zürich, Switzerland
· Geological Survey of Ireland (GSI)
· Health Service Executive (HSE)
· Northern Ireland Environment Agency (NIEA)
· The former Radiological Protection Institute of Ireland (RPII) (now part of EPA)
· University of Ulster
· University College Cork
· University of Bergen, Norway
Project
This research programme is a multi-agency transboundary programme of research on the potential impacts on the environment and human health from Unconventional Gas Exploration & Extraction (UGEE) projects/operations. The UGEE JRP is co-funded by the EPA, the then DCENR and the Northern Ireland Environment Agency (NIEA).
The key questions that this Joint Research Programme (JRP) was to address were:
- Can unconventional gas exploration and extraction projects and operations be carried out in the island of Ireland whilst also protecting the environment and human health? and
- What is ‘best environmental practice’ in relation to such projects and operations?
To this end this scientific research programme is based on the consideration of existing baseline data with respect to groundwater, air and seismicity and the potential implications and mitigations that are required to be considered in order to understand the possible environmental impacts of using this technology and whether or not it can be undertaken in an environmentally protective manner in accordance with the requirements of environmental law. The programme of research will assist regulators, both North and South, in making informed decisions about hydraulic fracking.
The JRP looked specifically at the geology of Roscommon, Leitrim, Clare and Fermanagh which is very complex in terms of hydrogeology and geology. The EPA indicated that it was very much focused on trying to get as much information as possible to capture the complexity of the geology and hydrogeology, including seismicity or the potential for earthquakes.
Consortium Partners
The UGEE Joint Research Programme is broad in its scope, covering several environmental parameters as well as operational practice and regulatory approaches around the world. CDM Smith Ireland Ltd. is leading a consortium of organisations which, together, can deliver the detailed and objective technical aspects of this work. The consortium includes Queens University Belfast, British Geological Survey, University College Dublin, University of Ulster, AMEC, and Philip Lee Solicitors. This consortium includes commercial consultancies, academics, a geological research institution and a legal firm, each offering a particular specialism required by the project scope.
Costs
The costs of the first phase of the Framework Agreement for the study contract were estimated at just over €1m. To cover these and other related costs, the three commissioning bodies committed a total of €1.25m funding to the Research Project, with the share-out as follows:
- EPA €0.5m (40%);
- DCENR€0.5m (40%); and
- NIEAc. €0.25m (20%).
€1.25m (100%)
Integrated Synthesis Report
The Steering Committee took the view at the beginning of 2016 that it was an appropriate time to reflect on the overall timeline for the delivery of the research programme. The original timeline for the research envisaged that the entire programme, including work carried out under a supplementary tender, would conclude by late 2016. While elements of the research were timed to conclude in late 2015, the Steering Committee originally agreed that there would be a single point of reporting in late 2016.
Were the supplementary tender process, envisaged by the original Terms of Reference for this programme of research to be commenced, it is estimated that the overall research programme would not report until 2018 at the earliest.
Given this extended timeframe, and in the interests of making the finalised project information available as early as possible, the UGEE Steering Committee approached the consultancy consortium engaged to undertake the programme of research and agreed a revised scope of work to combine all of the work carried out to date into a meaningful synthesis report, which will be published once concluded.
Conclusions of Report
The Minister for Communications, Climate Action and Environmenthas noted theissuesraisedin the reportof theEPA led Joint Research Programmeonthe potential impactsof hydraulic fracturingon ground waterandair quality, together with the identified gaps in legislative oversight surrounding the use of hydraulic fracturing in Ireland.
It is considered that the findings of the EPA led studyjustify the continuing prohibition on the licensing of fracking. TheEPA studyfound that fracking has the potential to impact both human health and the environment.The impacts include the potential to pollute groundwater aquifers if (1) wells failed, or if (2) there is inadequate separation between fracking activity and the base of the aquifer, whereby fracking-generated cracks potentially allowing pollutants and gas to find itself in the water. The report also says there is evidence to suggest that the closing of wells is not always successful and that gas can escape. The EPA report concludes that there is a lack of data or international experience to permit a reliable assessment of the consequences of fracking, with specific reference to the three main issues above.
The report provides the robust underpinning for decision making on this issue of public concern. Minister Naughten referred the report to the Joint Oireachtas Committee on Communications, Climate Action and the Environment for its consideration. This will assist at the Committee Stage debate of the proposed hydraulic fracturing legislation which is expected to be progressed by the Oireachtas this year.
Prohibition
There was cross-party support for legislation put forward by Deputy Tony McLoughlin to outlaw drilling for shale gas from rocks, sands and coal seams across the country at second stage of this Bill. The Minister took the view that the work of the Committee on Communications, Climate Action and the Environment would be considerably aided and advanced by being able to consider the outcome of the recently published, Integrated Synthesis Report on the environmental impacts of fracking. This approach would allow for an appropriate level of scrutiny and consultation to provide the fullest possible basis and understanding for clear and effective legislative proposals.
Thanks and welcome questions
Given the complexity of the subject, the Minister especially welcomes the fact that the Committee has commenced a public consultation on this topic. By engaging with all stakeholders and interested parties it allows for a comprehensive review of the key issues surrounding UGEE.
I would like to thank the Committee members, the Chair and the Clerk and his staff. The Department looks forward to assisting the Committee in any way it can during the course of its work, and of course to receiving its report and its findings in due course. If you have any questions I am happy to answer them.