Tony Grayling Presentation 18 06 12(2)

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    Regulation of shale gas extraction

    in Great Britain

    Geological Society briefing

    London, 18 June 2012

    Tony Grayling, Head of Climate Change and Communities

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    Regulatory bodies

    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 (minerals planning) (LA)

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    DECC checks with

    HSE/EA/SEPA

    issues well consent

    DECC:online wellapplication for

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    Regulation in Great Britain - development

    Exploration Well success

    Commercial development

    EA/SEPAStatutory

    Consultee

    Local Authority

    Planning Permission

    DECC checks with

    HSE/EA/SEPA ,

    issues Field

    Development

    Consent, setting

    production, vent

    and flare limits

    DECC:Field

    Development Plan

    HSE

    21 day

    Notification/

    Well integrity

    EA/SEPA Notices

    Abstraction licences

    Discharge & RSR permits

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    Shale basins and areas licensed for

    petroleum exploration in Great Britain

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    Current proposals for shale gas

    exploration in England and Wales

    Five sites

    in Lancashire -

    CuadrillaThree sites in

    South Wales,

    Neath, Maesteg,Llandow - Coastal

    Oil and Gas Ltd.

    Woodnesborough,

    Kent -

    Coastal Oil and

    Gas Ltd.

    Possibly three sites

    Mendip Hills:

    UK Methane andEden Energy

    Balcombe,

    W Sussex:

    Cuadrilla

    Beverley

    Rathlin Energy

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    Health and Safety Executive (HSE)

    The Offshore Installations andWells (Design and Construction,etc) Regulations 1996

    Integrity of wells

    Independent check

    The Borehole Sites andOperations Regulations 1995

    21 days notification before

    drilling, abandonment or workover

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    Clean water

    PossibleAquifer

    Confining

    Layers

    Water table

    To river

    or STW

    Gas

    emissions toatmosphere

    Production

    PlatformStorage

    tanks

    Production

    Zone

    Environmental risks of shale gas extraction

    Contamination of

    groundwater due to

    mobilization of solutesor methane

    Contamination of

    groundwater due to

    poor well design orfailure

    Fugitive

    emissions of

    methane

    Contamination of

    soil, surface orgroundwater due

    to spills of

    chemicals or

    return fluids

    Inadequatetransport 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

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    Environmental controls (England and Wales)

    Risk Controls

    Groundwaterpollution

    Water Framework Directive and Groundwater Daughter

    Directive through the Water Resources Act andEnvironmental Permitting Regulations (EPR): Regulatedischarges to groundwater, require disclosure of chemicals.

    Surface spills Planning regime for site construction standards. EPR

    regulates discharges to surface water and groundwater.

    Disposal of usedfracking fluid

    Mining Waste Directive through EPR: Waste managementplan must be approved by the Environment Agency. EuratomTreaty if naturally occurring radioactive materials, via EPR.

    Over abstraction

    of water

    Abstraction licensing under the Water Resources Act.

    Fugitivemethaneemissions

    Borehole regulations (HSE) to protect human health.Conditions under Petroleum Licences (DECC) for flaring andventing. Mining Waste Directive may apply.

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    Other environmental impacts

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    Environment Agency position

    Current regulation is adequate for small scaleexploration but keeping under review

    Taking a responsible and risk based approach

    Undertaking further work to ensure we have all theinformation we need

    Working closely with UK and Welsh governmentsand other regulators

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    Next steps

    Awaiting public comments on review of seismicactivity and DECCs responseUndertaking a detailed environmental assessment, inpartnership with DECC, Defra and other regulators

    Reviewing HSEs borehole guidanceReviewing methods for monitoring and controllingfugitive methane emissionsBuilding contacts with environmental protectionagencies in Europe and the US

    Examining best practice in environmental regulation inEurope (via EU technical working group)