Effectiveness of Fracking Regulations

strength of Fracking RegulationsOverviewof Report This report has been prep bed by The MSSD for the Secretary of State for Communities and Local Governments. This report will be smell at the in effect(p)ness of the regulatory framework of the fracking industry, it will measure out the modern framework, evaluating whether the framework is cash in ones chips for purpose, and if not, propose alternatives catching that a luminousness touch to regularisation is the betterment wanting to be contractn. Beca uptake we argon unaccompanied at the exploratory phase of rock oil drudgery in the UK, the main focus will be on pre-drilling ordinances.Whatis Fracking?Wewill briefly date at what Fracking is and how it works, and sounding at thiswill withal allow us to be subject to assess the most military press surroundalconcerns and the controversies surrounding fracking. Fracking is the exploit of drilling batch into the earth originally a high-pressure body of water mixt ure is necessitateed at the rock to stretch expose the shooter inside.Water, sand and chemicals atomic number 18 chuck up the spongeed into the rock at high pressure which allows the bollocks up to flow out to the head of the well.The bidding merchant ship be carried out vertically or, more commonly, by drilling horizontally to the rock layer and potful create new pathways to release gas or can be used to extend existing channels. The term fracking refers to how the rock is slipd a character by the high-pressure mixture.1 In the UK, drilling is only at an exploratory phase, however, on that point ar plans for this to intensify as shale gas reserves confuse been identified across the UK. Impacts and Concerns Having looked at what Fracking is, we willidentify its impacts on the surroundings and its most pressing concerns. The press oution of shale gas is a topic that is highly controversial in the UnitedKingdom, this is mainly because of the environmental concerns it ra ises. One ofthe major concerns is the water usage in the extraction, the volume of waterthat is needed. Vast amounts of water argon questd for the process and this essential be transported to the fracking come ins2.The water tends to be transported to the tougheneds, which has its own environmentalimpacts, though about sites could use the local an aesthetic water re solutions and the volumeof water that is needed could drift a strain on local water resources. Inaddition to the amounts of water, the water is mixed with chemicals, thismixture could escape and could spill or contaminate groundwater in thesurrounding beas. Anotherconcern is that fracking could lead to small earthquakes. This was the case inthe township of Blackpool, where two tremors struck, one registered a magnitude 2.3and the other 1.3. Both tremors occurred near the local drilling site. Thiscaused the surgical process to suspended, the site meanss, Cuadrilla, commissioneda report, which found that Most l ikely, the repeated seismicity was induced bydirect barb of fluid into the fault zone3The report goes on to question whether farther earthquakes are to be evaluatefrom fracking, it says the earthquakes occurredbecause of a rare combination of circumstances the fault was already understress, was brittle enough to fracture and had space for large amounts of waterthat could lubricate it. The report says this is unlikely to happen again atthe Preese hall site.4To reduce the risk of earthquakes, it has been proposed that seismic activitymonitoring is introduced around fracking sites. Advantages and Disadvantagesof Fracking The mainadvantages of fracking include, an increase in the production of natural gas,some could argue that this would ease the burden on finite resources much(prenominal) asfogy fuels, fracking would thus diversify our free vim supplies. A furtheradvantage is that this is a relatively clean energy source, providingenvironmental benefit. The gas produced emits less carbon per calorie of energyproduced than other fossil fuels. It is easy to inject and it can betransported directly, shale gas requires very little infrastructure investmentbefore it can be injected into the national gas grid, thus proving to be aneconomical benefit. Fracking is also the most natural way to manage gas from theground. An abundant supply of natural gas makes prices relatively cheap toproducers and consumers. The disadvantages of fracking include, Risk of groundwaterpollution, Risk of localize earthquakes (probably not a huge risk whenwell-regulated in the UK), Localised noise and traffic congestion, Loss ofamenities, when fracking rise are sited in areas of natural beauty andnational parks, A high water demand for the process water needed by thefracking technology used, potentially entailing additional stress on watersupplies, think blight on local properties, and suffering by thoseunfortunate enough to live near a proposed site for a fracking well. 5 purlieualP olicy Context Fracking also poses wider questions about currentthinking on sustainability and the environment. 6John Allen writes, the shale revolution has the potential to provide the UKwith local, low cost, clean sources of energy and potential for local energy independence7from a sustainable development viewpoint, this makes for positive reading. Iffracking is low cost and a cleaner source of energy, it enables sustainable development.However, looking at the intricacies of fracking, this may not seem the case.For the process to take place, a considerable number of resources are needed, and hereyou look at whether fracking, as an industry, is sustainable. The shale gasindustry consumes materials such as water, sand, chemical handlings, drillingfluids, all of which require transport by road and rail. Perhaps one of thebiggest challenges is the use of water, the volume required is vast, and tosustain that, at that place must be an infrastructure in place and policies in place to tell that whilst providing the water to sites, on that point is no inconvenience tothe water flow in the local area and if world transported via tank to the site,this must be done in a way where the environment is put inaugural. If we are looking at this from the standpointwhat is trump for the environment, certainly the question would be, why does thepolicy not encourage the use of no oil and gas in the UK, because this would bethe best policy for the environment. The answer to this would be some(prenominal)factors, mainly economical and convenience, the ecosystems we live with and inare so adept to using those resources, that to prohibiting use would mean thatour systems would fail to exist. A middle ground has been established, wherebythe environment is some protected and that human needs are met, and thisneeds to be the case with fracking, whilst on that point are signs that there arebenefits, economically the policy must promote sustainable development. History shows us t hat whenever we can extract fossil fuels, short term gain, usually trumps long- term consequence. Much has been made, on both(prenominal) sides of the argument, of the US experience, simply fracking has not found universal welcome. France, for instance, is in the process of banning it, and Poland is currently deciding whether to develop the industry, or concentrate on other forms of energy. 8 John Allen If there is regulation and procedures in place to negate the downsides,surely a cleaner alternative is beneficial long term. Regulationof Fracking Now wewill be looking at the regulatory framework that is in place for the industry.This section will be split into ternary parts 1) An overview of the regulatoryframework, 2) Assess and analyse the strengths and weaknesses of theframeworks, 3) Consider whether every improvements can be made to the framework,looking at different types of regulation. Overviewof Regulation The Environment dresser (EA) in England and Wales, and Scottis hEnvironment Protection Agency (SEPA) are the environmental regulators whomonitor the environmental aspects of shale gas fracking. The key regulationthat governs how shale gas fracking operators comply with environmental laws isthe environmental Permitting Regulations 2010.9Figure 2 https//www.gov.uk/government/publications/about-shale-gas-and-hydraulic-fracturing-fracking/developing-shale-oil-and-gas-in-the-ukregulation Theframework that surrounds fracking is one that is quite complex. Companieswanting to look for must have license from a number of regulatory bodiesbefore they can proceed. In govern to explore and produce shale gas, operatorsmust pass smashed health and goodty, environmental and homework permissionprocesses.10The first stage is obtaining a Petroleum Exploration and Development License,(PEDL), these are issued by the crude oil and Gas Authority. The Oil and GasAuthority work about with other regulatory partners to ensure that theexploration and development is safe and sustainable. 11A PEDL obligates companies to follow its terms. Key PEDL terms include conferralof the right to get crude oil, payment of fees in return, parameters of thefield licensed to the operator, promise to obtain create verbally swallow prior todrilling, operators obligation to work the licensed area in accordance withgood oilfield practice and termination and surrender provisions. PEDLS are licenseswhich grant exclusivity to operators in the license area, they do not giveimmediate consent for drilling an exploration well or any other operation. Briefing paperAfter a PEDL has been granted, the operator of the proposedsite must then obtain local cooking permission from the Minerals PlanningAuthority, as shale gas trading trading operations involve the extraction of minerals. The MPAinvolves local authorities including representatives from districts and countycouncils.12 Planning cumulationions require the submissionof a standard application form, supported by plans and drawings, certificatesof ownership relating to the application site and design and access statements.An operator must also negotiate access with landowners. A PEDL and planningpermission alone do not give operators consent to conduct theiroperations, access must be secured by the operator, this tends to be through alicense or a lease to be taken that are conditional on the grant ofsatisfactory planning consent. When a decision is made on a planningapplication, only planning matters called material considerations can betaken into account. There is no exhaustive list of what constitutes a materialplanning consideration, although there are some principal issues for consideration,shown in Figure 3 13MPAs are screened to determine whether any proposalsrequire an environmental Impact Assessment (EIA), the Environment Protection Agency an EIA describe thisas the process by which the anticipatedeffects on the environment of a proposed development or project aremeasured.If the likely effects are un gratifying, design measures or otherrelevant mitigation measures can be taken to reduce or avoid those effects.14This, however, is a contentious issue, as its not out-of-doors whether operators areobliged to conduct and EIA and submit an environmental statement under the EUsEIA Directive15to construe with their application. Under the EU law, all projects require anenvironmental statement, though those under Annex 2 require a case-by-caseexamination, and considering certain criteria, it is determined that such aproject is likely to have substantive effects on the environment. Even if anEIA is not required, environmental and health impacts can be addresses throughthe conditions of planning permission. Mineral Planning Authorities areresponsible for ensuring operators comply with these conditions. The MPA, in determining an application, will consider theadvice of a variety of statutory consultees with regards to the protection ofthe environment and the public. Local planning conditions can address theaesthetic impacts, as well as contributions to local noise, traffic and airpollution. The density of local population may be considered in the localplanning permission process. There will also be conditions for when operationsfinish, the operator would be responsible for safe abandonment of the well andfor restoring the well-site to its previous state or a suitable condition forre-use. The authority which granted permission would require suitablerestoration as a condition of the planning permission. 16The next part of the regulatory process is that operatorswill probably require a number of environmental permits issued by theEnvironment Agency under the Environmental Permitting (England and Wales)Regulations to conduct onshore activities. The environment agency takes a risk-basedapproach to regulating, thus the regulation of each site is bespoke to thatsite, as the they take into account local site characteristics and sitespecific environment al risks. The Environment Agencyensuresthat any shale gas operations are conducted in a way that protects people andthe environment. The Environment Agencys environmental permitting regulationscover protectingwater resources, including groundwater (aquifers) as well as assessing andapproving the use of chemicals which form part of the hydraulic fracturingfluid, appropriate treatment and disposal of mining waste produced during theborehole drilling and hydraulic fracturing process, suitable treatment and watchfulness of any naturally occurring radioactive materials (NORM) and disposalof waste gases through flaring.17 With regards to water, if operators arewishing to abstract more than 20 cubic meters per day for operational purposes,they will need to obtain a water abstraction license under section 24/24A ofthe Water Resources Act 199118The licenses are issues by the Environment Agency. A factor to bear in mindhere is the Environment Agency make it clean-living that water availabil ity at site isnot guaranteed, this links back to the planning permission stage, as if theoperators are unable to have a pipeline, they will have to transport the waterto the site, which is expensive, but also, with regards to the environment,transporting tanks of water would be something they would have to consider. Another element to be considered is the element ofinduced seismicity. The MPAs should consult the British geologic Survey(BGS) to advise on induced seismicity and help to identify suitable locationsfor well, drawing on a national and site-specific understanding of geology. 19Under s.23 of the Mining Industry Act 192620firm sinking boreholes greater than 100ft (30m) thick-skulled must give writtennotification to the Natural Environmental Research Council. Operators are underseveral other continuing obligations, such as keeping records of theiroperations and retain specimen cores. Oncethe above has been completed, the operator must notify the Health and Safety Executivea t least of 21 eld in advance of any drilling operations, The Borehile andOperations Regulations 199521require this. A coordinated regulatory ride is required to ensure that shalegas wells are designed, constructed and operated to standards that protect bothpeople and the environment, it must be noted that it only protects those inproximity of sites. HSE monitors shale gas operationsfrom a well integrity and site safety perspective. We oversee that safe workingpractices are adopted by onshore operators as required under the Health andSafety at Work Etc. Act 1974, and regulations made under the Act. Thesespecifically are The Borehole Site and Operations Regulations 1995 (BSOR) appliesto shale gas operations. (These regulations are primarilyconcerned with the health and safety management of the site). The Offshore Installations and Wells(Design and Construction, etc.) Regulations 1996 (DCR)22 apply to all wellsdrilled with a view to the extraction of petroleum regardless of whether t heyare onshore or offshore. (These regulations are primarilyconcerned with well integrity). HSE works closely with the Environment Agency(EA) and the Department of Energy and Climate transport (DECC) to share relevantinformation on such activities and to ensure that there are no material gapsbetween the safety, environmental protection and planning authorisationconsiderations, and that all material concerns are addressed. 23Drilling operations must not be commenced unless a health and safety policy isprepared which demonstrates that adequate measure will be taken to shelterthe health and safety of the persons on the site. Oncethe HSE step is completed, we arrive at one of the final locomote in the regulatoryprocess. This is the Oil and Gas Authorities consent to drill. Operators areobliged to seek the OGAs written consent prior to the start of drillingoperations. OGA consent is one of the final, and coordinating consents in theshale gas process. In considering whether to issue co nsent to drill, the OGAwill have regard to the suite of regulatory check overs discussed above, includingensuring that planning permission is in place, environmental permits and consentshave been obtained, and that the HSE has received notice of intention to drill.Planningpermission is one of the approvals required before any activity may start on asite. The planning authority decides whether the activity is acceptable at thatparticular location, after local communities and other interested people havehad the opportunity to set out their view on the benefits and impacts of theproposal. On receipt of OGAs consent to drill, andsubject to the finalisation of a hydraulic fracturing plan and agreed methodfor monitoring induced seismicity (where fracking is going to be conducted), anoperator has in place the requisite consents and may continue its operations.This concludes the pre-drillingregulatory framework, there is a duty in place whilst drilling takes place, andas mentioned, condit ions are set out for after the drilling process has beencompleted. Strengths and Weaknesses One of the main strengths with theframework presented above, in my opinion, is that the process to start drillingis so rigorous. There are many stairs an operator must take in order to startdrilling, this has a exercise set of cost and clip investment needful, so theserigorous checks and procedures ensure that the operator is competent andensuring the environmental protection necessary to delete any negative impactsof fracking in the main. Another strength with the framework isthe fact that a condition of granting permission to drill, there must be plansin place on how the site will be restored to ensure that it set abouts usable landagain, showing that the regulation is offering a protection measure. However, it could be argued that thereare more weaknesses with the regulation. One of the majorones that comes across with the regulation framework provided above, is oneconcerning Environm ental Impact Assessments (EIA). An operator may have tocarry out an EIA, if the MPA deem necessary when screening the proposalpresented, however, there is no obligation to do so, it only has to happenshould the MPA feel it is a necessity in this case. There isnt a one size all fits approachhere, its bespoke. Environmental Risk Assessment (ERA) hasbecome best practice in non-shale gas industries24,however like the EIA, an ERA is not mandatory, an ERA, unlike an EIA wouldassess not only the impacts of hazards, but also their likelihood. In theirreport, the Royal Society recommended25, thatto manage environmental risks, an Environmental Risk Assessment should bemandatory for all shale gas operations, involving the participation of localcommunities at the earlier possible opportunity. I would agree with thisstatement, an EIA and ERA should be a mandatory step, for all potentialoperators and cases of fracking, not just some, it should be a universalrequirement when applying to drill for shale gas. In her Article, Emily Gosden writesthat the Fracking Regulations may incompetent, with regards to climate change26. Fromthe regulation mentioned above, it does not tackle issues such as climatechange in much depth, whilst it looks at environmental factors, it seems thatthis isnt the most pressing matter on the agenda. The article reports thatBritains fracking regulations may be inadequate to prevent environmentallydamaging methane leaks, and that the current regulatory regime fell short ofthe minimum necessary standards. 27 Prof JimSkea, one of the reports authors, said that the law instead gave quite a lotof discretion to the Environment Agency (EA) over what monitoring it wouldrequire of future shale gas production. Here, I would agree, the EA can oftenbe quite weak when it comes to these matters, an example mentioned above wouldbe the water abstraction licenses requirement, the EA are very vague when itcomes to a definitive answer. This could be something that could be further considered.Another weakness in my opinion is that thecurrent framework at present, isnt very environment focused, and even if itis, a lot of the environmental factors arent factors that are mandatory foroperators or regulators to take into account, as already mentioned, the EIA notbeing mandatory is one part. The regulation does not look at in enough detailissues such as climate change, air pollution, water pollution, and other meansof contamination, these factors should be of more importance when culmination toregulate the shale gas industry, yes, they may be considered, but even that atbest is brief. Alternate Proposals The current framework that has been looked at inthis report can be seen to be rigorous in the main, there are a number of stepsan operator must take before being able to start the process. The currentframework could be seen as being on the heavier side of regulation, and inthe brief, a theory was posited that there be a lighter touch on regulation, inth is section, we will look at whether this can be the case, and if so, how canit be the case. With regards to regulation, there are twoapproaches that can be taken. There is Direct Regulation, which can often bereferred to as the command and control regime, this is where standards areset, as are penalties for failing to meet them, there are often several ways ofdrafting direct regulation. 28 Theother approach is Indirect Regulation. Whereas direct regulations focus on thepolluting activity itself, indirect regulation tends to nerve on economicinstruments, the effect of which will be to impose higher burdens on higherpolluters, there is also self-regulating, whereby you can apply methods such asvoluntary environmental agreements and codes of conducts to regulate. Thesesystems tend to have vague standards and are flexible and non-interventionistin their reputation.We will look at whether we stay with acommand and control approach adopted, or would a self-regulating approach bemore eff ective in this situation. to begin with we start that, we will briefly look atwhether the current framework we have looked at is effective in its purpose,however looking at the effectiveness of the framework is an area where onestruggles as in the UK, we are not at the stages where there is mass productionof shale gas, we are merely at the wee exploratory stages of the process. Theonly real working example is the Cuadrilla site as mentioned at the start ofthis report. though some regulation, such as the induced seismicity wasintroduced because of that site. Self-regulating such an industry seemsimpractical considering the disadvantages mentioned earlier in the report. SimonSneddon writes that this method of regulation is more flexible than thetraditional command and control methods, and this method is non-interventionistin nature and that these methods are criticised for having vague standards andfor being unaccountable, and there is no realistic enforcement system. This, asa regu lation method would not work with an industry such as fracking. Anindustry where there are many impacts both environmental and economic and assuch a framework of command and control would be reform suited, there is a setof rules, or steps put in place and there are penalties and fines for operatorsshould they fail to abide. This is very similar to the current framework inplace. The risks that fracking entails, it would be a uncertain approach tohave a light touch to regulation. However, when there is more data to analyseonce further fracking takes place, it may be the case that we could adopt a self-regulatingframework or one that is lighter than the one in place, but until then, thecurrent command and control framework is one that is effective and amplefor use. Conclusion The regulation in place at present is severalsteps that an operator must take before they are able to drill for shale gas.The procedure is one that is described as rigorous and upon evaluation thisseems to be th e case, though as mentioned when looking at alternatives, thereis no way of acute how effective the regulation is in the UK, until there aremore working examples of fracking. i1 Bbccouk,What is fracking and why is itcontroversial? (BBC News,16 December 2015)accessed 10 may 20172 Bgs,Potential environmental considerationsassociated with shale gas(Bgsacuk,0)accessed10 may 20173 Michael Marshall,Howfracking caused earthquakes in the UK(NewScientist,2 November 2011)accessed 10 May 20174 Ibid 35 Steve Last,Thepros and cons of fracking in the UK and why you need to know about them(Lowimpactorg,14October 2016)accessed10 May 20176 DrGareth Evans,FrackingTruly Sustainable?(Sustainablebuildcouk,16Dec 2016)accessed10 May 20177 Allen John,Frackingbelieve the sparking plug for a sustainable UK energy market(TheGuardian,22 January 2014 )accessed10 May 20178Ibid 69 Hsegovuk,The regulation of onshore unconventionaloil and gas exploration (shale gas)(Hsegovuk,0)accessed10 May 201710 Govuk, plea der on Fracking Developing shalegas in the UK(Wwwgovuk,13 January 2017)accessed 10 May 201711 Govuk,Guidance on Fracking Developing shalegas in the UK(Wwwgovuk,13 January 2017)accessed 10 May 201712 Society,T. (2012).Shale gasextraction in the UK A review of hydraulic fracturing.13 Briefing Paper repress 6073 on Shale Gas and Fracking House of Commons program library 14 Wwwepaie,EnvironmentalImpact Assessment (Wwwepaie,0)accessed 10 May 201715 Directive 2011/92/EU16 Department of Energy and Climate Change Fracking UK ShaleRegulation and Monitoring February 201417 Govuk,Guidance onFracking Developing shale gas in the UK(Wwwgovuk,13 January 2017)accessed 10 May 201718 Water Resources Act 199119 Ibid 7 20 Mining Industry Act 192621 Borehile and Operations Regulations 199522 The Offshore Installations and Wells (Design andConstructions, etc.) Regulations 199623 Hsegovuk,Theregulation of onshore unconventional oil and gas exploration (shale gas)(Hsegovuk,0)accessed10 May 201724 Contr ibution from Professor SimonPollard, Head of Department, Environmental Science and Technology, CranfieldUniversity 25 Society, T. 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