Canada and fracking

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Drilling/Fracking

Fracking industry estimates for shale gas reserves in northern British Columbia are 200 trillion cubic feet of gas. EnCana began fracking in BC in the late 1990s. It moved to Alberta in the early 2000s and began using nitrogen, instead of water, to frack shallow coal seams, or what are commonly called coalbed methane.[1]

Regulations

Controversies

Regional regulators in both BC and Alberta have passed rules which allow more intensive drilling: Alberta allows frackers to pack wells close together and release more gas by pumping more water from shallow coal seams. Although British Columbia distributed detailed regulations in 2010 limiting where and when frack companies can drill, and also set environmental standards, it gave the Oil and Gas Commission authority for exempting gas drillers from virtually all of the regulations.

In December 2010, British Columbia’s auditor general issued a report focused on the province’s groundwater and concluded that "the provincial government is not effectively ensuring the sustainability of British Columbia’s groundwater resources."

In 2010, the governments of Alberta, British Columbia, and Saskatchewan agreed to a Memorandum of Understanding - calling themselves the New West Partnership - for a plan of sharing information and creating standards for fracking and water use. The Canadian Association of Petroleum Producers also took part. The memo, later leaked, said the three provinces and the fracking industry would work together in creating “key messages” on hydraulic fracturing in order to convince the public fracking was safe, stating "the project will help to demonstrate that shale gas extraction is viable, safe, and environmentally sustainable."[2]

Royalties

According to the Canada National Energy Board, industry in Saskatchewan drill the first 38,000 barrels of tight oil royalty-free. The board also notes that "Alberta imposes a five per cent royalty on the first 50,000, 60,000, or 70,000 barrels, depending on well specifics" - much lower than most states in the U.S. A 2013 analysis by Barry Rodgers Oil and Gas Consulting found the average U.S. state government takes home a 61.1 per cent share of revenue from tight oil fracking, compared to 44.8 per cent for Canadian provinces.[3]

Holds and Moratoriums

Quebec

In April 2012, the Canadian province of Quebec moved from a de facto ban on shale gas development to a total moratorium after a report issued by the Quebec Environment Minister Pierre Arcand recommended the minister not authorize fracking even for research purposes due to environmental concerns with the process. Quebec issued a temporary ban on hydraulic fracturing pending further study in March 2011, putting a halt to exploration in the province, though companies had expected limited drilling for research purposes. The ban came after environmental groups, farmers, and others in Quebec had spoken out against shale gas development in the province. Questerre has land prospective for shale gas in Quebec, including about 324,000 hectares where Talisman Energy has the majority interest and another 81,000 hectares with other partners.[4]

Natural Resources Minister Martine Ouellet has said she vows to impose a complete moratorium on fracking until a new and more complete environmental assessment by the Bureau d’audiences publiques sur l’environnement (BAPE) is completed, expected for November 2013. It is believed the review will also look at alternatives to shale gas exploitation.[5]

In May 2013, the Minister of Sustainable Development, Environment, Wildlife and Parks, Mr. Yves-François Blanchet, introduced Bill 37 in the Québec National Assembly in order to establish a moratorium on various activities related to shale natural gas exploration and production in the St. Lawrence lowlands in Quebec. It was reported that "The proposed moratorium would remain in effect until new rules for hydrocarbon exploration and production are adopted or for a maximum period of five years. It would apply to all drilling, fracturing and injectivity testing activities related to exploration for or production of shale gas. These activities would thus be prohibited on the territory covered by Bill 37, subject to a maximum fine of $6,000,000 or a maximum term of imprisonment of three years."[6]

Nova Scotia

In April 2012, the Nova Scotia government issued a two-year hold on hydraulic fracturing, saying it needs more time to study the practice. The government had planned to release a review of the industry in spring 2012, but announced the report has been put off until mid-2014, prompting critics to suggest the ruling NDP is trying to avoid the issue until after the next election. Nova Scotia Fracking Resource and Action Coalition was encouraged by Nova Scotia's move, but said they would prefer a full-fledged moratorium backed by provincial legislation.[7]

Newfoundland

In November 2013 Natural Resources Minister Derrick Dalley declared a moratorium on fracking in the province of Newfoundland, saying the government will not approve fracking onshore or offshore pending further review.[8]

Lawsuits

Alberta

Untested Science: Fracking natural gas controversy

Alberta Environment and Water, the agency that oversees groundwater, tested local resident Jessica Ernst's well. When the well was drilled in 1986, tests showed it had no methane. Tests after drilling, however, showed high levels of the gas, as well as a hydrocarbon called F2 and two other chemicals. The Alberta Research Council, a government research agency, concluded in its 2007 complaint review of EnCana that it was unlikely fracking had impacted Ernst's water. In response, Ernst sued Encana, Alberta Environment and Water, and the Alberta Energy Resources Conservation Board (the gas drilling regulator) over allegations that Encana’s drilling operations were negligent and the governmental agencies were complicit in Encana’s contamination by failing to enforce regulations. The lawsuit asks for $33 million Canadian in damages, along with a return of wrongful profits. Ernst has stated she will not settle on terms involving a confidentiality agreement, as others have previously done.[9][10]

Citizen opposition

New Brunswick

Protests have taken place since spring 2013 in New Brunswick, when SWN Resources of Canada (owned by Houston-based Southwestern Energy) began exploring for natural gas deposits in the region. On September 30, members of the Elsipogtog First Nation Sock began blockading Route 134 near Rexton, and on Oct. 1 they issued an eviction notice to SWN. The tribal council planned to pass a resolution preventing the government and shale gas companies from continuing their work by reclaiming all unoccupied reserve land and giving it back to First Nations.[11]

SWN Resources went to the Court of Queen's Bench and successfully sought an injunction to end the protest. On October 17, 2013, the police moved in to forcibly remove the blockade. Protesters say that police arrived with guns drawn, and used pepper spray and fire hoses on elders, and began arresting people. Police say some protesters also held firearms and used Molotov cocktails. At the end of the conflict, 40 people were arrested and 5 police cars were burned. After the arrests, a number of "sympathy protests" sprang up in other parts of New Brunswick, as well as in southern Ontario and Winnipeg. Elsipogtog First Nation Councillor Robert Levi, who was among those arrested, said protesters will try to stay at the site despite the injunction, and they want a peaceful resolution to the dispute.[11]

Lobbying

According to lobbyist registry data, as of September 2012 there are 57 lobbyists representing the natural gas industry to the 85 elected officials and government agencies in the province of British Columbia.[12]

Reports

Resources

References

  1. Lynn Herrmann, [http://digitaljournal.com/article/317334#ixzz1x7dOrLmd "Canada fracking creates ‘test tube’ residents in B.C., Alberta," Digital Journal, January 5, 2012.
  2. Lynn Herrmann, [http://digitaljournal.com/article/317334#ixzz1x7dOrLmd "Canada fracking creates ‘test tube’ residents in B.C., Alberta," Digital Journal, January 5, 2012.
  3. Andrew Nikiforuk, "How Much Does Western Canada Subsidize Fracking? Compared to US gov'ts, which take home a greater percentage of revenue, quite a bit," TheTyee.ca, Feb 19, 2014.
  4. "Canada's Quebec Bans Shale Gas Hydrofracking Pending Studies," Sofia News Agency, April 4, 2012.
  5. Michelle Lalonde, "‘A beautiful day' for environmentalists: Shale gas, Gentilly both get the chop," The Gazette, September 20, 2012.
  6. ""Québec Bill to Prohibit Certain Shale Natural Gas Exploration and Production Activities"", McCarthy Tetrault, May 15, 2013.
  7. Michael MacDonald, "Nova Scotia government puts hydraulic fracturing on hold for two more years," Canadian Press, April 16, 2012.
  8. "Moratorium on fracking announced by Newfoundland government," The Telegram, Nov 4, 2013.
  9. Lynn Herrmann, [http://digitaljournal.com/article/317334#ixzz1x7dOrLmd "Canada fracking creates ‘test tube’ residents in B.C., Alberta," Digital Journal, January 5, 2012.
  10. "A Cautionary Tale for Michigan from Jessica Ernst, Canadian scientist suing EnCana for water contamination," Ban Michigan Fracking, accessed April 2012.
  11. 11.0 11.1 "RCMP, protesters withdraw after shale gas clash in Rexton," CBC News, Oct 17, 2013.
  12. Kevin Grandia, "The Natural Gas Lobbyist Rush is on in British Columbia," Desmogblog, Sep. 28, 2012.

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