Shale gas boom threatens water

 

Study calls for scrutiny of new technology

 

BY SHAUN POLCZER, CALGARY HERALD OCTOBER 15, 2010 2:11 AM

 

 

A new report released by the University of Toronto on Thursday suggests the rush to develop shale gas could threaten Canada's water supplies without tough new environmental protection laws.

According to the study prepared for the Munk School of Global Affairs at the U of T, provincial and federal regulations regarding hydraulic fracturing have not kept up with the pace of shale gas development in places such as northeastern British Columbia and Quebec, where it says drilling poses a threat to groundwater supplies.

The report notes that shale development in the U.S. has sparked a wave of public concern over new technologies that are credited with unlocking a 100-year supply of natural gas from rocks that were previously considered impossible or uneconomic to produce.

"Canada has also witnessed its own 'shale gale' as the boom noisily expanded from its dramatic epicentre in northern British Columbia into rich shale formations in Alberta, Saskatchewan, Ontario, Quebec and New Brunswick," the report states.

"Unlike the United States where the U.S. Congress and state regulators are fully engaged in public policy debates, neither the National Energy Board nor Environment Canada have yet raised any substantive questions about 'the shale gale' or its impact on water resources."

But shale gas developers say they use less water than other established industries such as forestry and mining and that drilling is safe.

Calgary-based Questerre Energy, which is exploring shale gas in the St. Lawrence Lowlands, on Thursday released a "fact sheet" aimed to dispel what it claims are "misconceptions" about water use in the drilling process. Nonetheless, shale gas development is emerging as a controversial issue in Quebec and the province last month allowed shale exploration to continue while it conducts a review of the industry.

"The shale gas industry is actually a light industrial user of water," said Questerre CEO Michael Binnion. "In full development, the industry is estimated to use less water a year than car washes in the province and about one-half of one per cent of the water used by the pulp and paper industry in Quebec."

But concern for the use of water in drilling natural gas wells is also shifting into other established producing regions such as British Columbia, which is home to the Horn River shale near Fort Nelson.

Horn River and the unconventional Montney formation are fast becoming two of the largest gas fields in the country and drillers are spending billions to develop reserves with hydraulic fracturing technology.

Partly to address public concerns for water use, the non-profit Geoscience B.C. on Thursday announced a $950,000 study of regional groundwater resources in the unconventional Montney formation supported by the provincial government and major industry players such as Encana Corp., Devon Energy, Shell Canada and Talisman. The study aims to identify non-potable water sources that could reduce the need for fresh water to support gas development, it said.

Encana spokesman Alan Boras said managing water has always been an issue for the oil and gas industry and will continue to demand the attention of oil companies to limit their environmental footprint.

Encana is a major driller at Horn River, where a previous Geoscience B.C. study identified a deep saline aquifer as a water source for fracturing. In response, Encana built a water treatment plant and pumps waste water back underground to minimize the use of surface water, he said.

Although fracturing companies are third-party contractors, Encana prohibits the use of compounds such as diesel fuel in its wells and is encouraging suppliers to publicly disclose the composition of their fracturing compounds.

"We recognize people have concerns," he said. "In areas where a resource industry comes and it has not been present before, there is a great deal of education that must take place in order for people to understand how we work to preserve the environment."

Speaking in Calgary, Energy Minister Ron Liepert said the province's legislative framework is well equipped to handle increased demands on water resources from the oil and gas industry.

"We're seen as being a leader in regulating the oil and gas industry and that's through the ERCB," he said. "I know some of this is generated by what's going on in Quebec right now. . . . It's not an issue that's come to me as an issue in Alberta. This province is so used to developing gas I don't think the public sees the development of shale gas any different than conventional gas."

spolczer@calgaryherald.com

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