Reality and opportunity – nova scotia future energy requirements, the role of shale gas development



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REALITY AND OPPORTUNITY – NOVA SCOTIA FUTURE ENERGY REQUIREMENTS,
THE ROLE OF SHALE GAS DEVELOPMENT




A Response to the NOFRAC Report - Out of Control- Nova Scotia’s Experience with Fracking
for Shale Gas


This is an open letter that seeks to broaden the discussion on shale gas to include both the benefits associated with development and to clarify and define the risks. Shale gas development provides an opportunity to diversify energy supply, and potentially provide significant economic benefit to the Province through jobs, energy security, and provincial budget surplus. Rather than trying to stress the negative aspects of shale gas development through fear and uncertainty, this letter responds to the NOFRAC Report and lays out the facts and history of exploration to date. We attempt to show there are real tangible benefits to all parts of the community through staged appraisal, but this needs to be balanced against the genuine concerns of people over shale gas development. This balance can be accomplished with open dialogue and public involvement, providing a transparent understanding of all relevant facts to determine the way forward.

The “Out of Control” arguments are overstated, inaccurate, draw false comparisons, and ignore key facts. The conclusions are misplaced, do not serve Nova Scotia’s pressing energy needs, provide no solutions, or offer economic growth and development in times of widespread uncertainty and unemployment. The use of scare tactics and fear with regard to implied radioactivity levels and chemical concentration, the use of water chemistry comparisons from other unspecified areas and generalized studies is regrettable, and does not advance discussion or understanding.

There has been no attempt to contact industry or government for discussion or clarification. Instead we get a report that attempts to bring fear and emotion to the fore and then, based on weak, insufficient analysis and arguments, seeks a 10 year moratorium on drilling, or an outright ban on shale gas development.

It is recognized that there is genuine concern over the social and environmental impact of shale gas development, of which hydraulic fracturing of rock at depth is but one component. Those concerns have to be defined and then addressed. The oil and gas industry has not done a good enough job at explaining to communities what is going on and the impact and benefits on their way of life. We have to do better and have a responsibility to do so, and this letter is a start to that process.

What is needed is an ongoing process of open dialogue and discussion of all the facts and issues with shale gas development placed in the context of the benefits of potential long term, safe, secure energy supply. Today industry does NOT KNOW if there is a sustainable, commercial development of gas from the Windsor Basin, onshore Nova Scotia. There has to be a staged appraisal and assessment of the potential; a “proof of concept” program. This program would consist of acquiring a regional seismic grid over the area followed by a small number of wells (3-5), horizontally and vertically drilled with the aim of collecting a wide range of data. The wells would then be hydraulically fractured and tested for long term gas production, with full regard to the environment and local community. This entire data set, along with environmental and societal impact studies will provide sufficient information for a decision on development.

If the program is successful, then, in full consultation with government and the public and with agreed environmental safeguards, a long term development project can be put in place and delivered. Not a controversial process of confrontation, waiting on further science or other production history; rather an open, balanced and honest assessment. Then should Nova Scotians find the development unacceptable, it does so knowing the full consequences and cost, and that alternative, realistic energy strategies would need to be found.

To respond to the NOFRAC Report we start with the overall energy supply situation in Nova Scotia. Strategically, the Province has stressed the requirement for a long term, stable supply of a mix of energy sources to provide options and diversity, with no reliance on one specific source. Where possible, the supply needs to be under the control of Nova Scotia and offer economic benefit and growth to the Province. This is the context under which onshore shale gas should be assessed.

We will then respond to the specific items of the NOFRAC Report – the Triangle Plan, naturally occurring radioactivity (NORM), formation water chemistry, the disposal history of the Kennetcook brine ponds, leaking ponds, missing brine volumes, Windsor disposal, and finally disposal using ice. These topics have all been misinterpreted and incorrectly assessed leading to exaggeration and wrong messages being sent to the public.

We also want to comment briefly on the way the Departments of Energy and Environment have acted over the years. The impression imparted in the Out of Control Report, and quoted at the recent meeting in Kennetcook (April 22, 2013) was that regulators were “asleep at the job.” While Triangle has strongly disagreed with Environment in the past, particularly over re-injection of the formation waters, we believe the Departments have at all times been professional and sought to do their job with integrity and in the best interests of the Province. We have respected their role and responsibilities and worked with them these past two years to see the ponds safely drained and the well sites fully remediated to the highest standards and industry best practice. Today we are aligned in our programs and purpose. They have not been “asleep” and the correspondence attests to that, rather they have been active, strong and forthright in their position, allowing dialogue and then together attaining solution to the remediation process. These are complex matters with important outcomes for Nova Scotia, and we believe both Energy and Environment are serving their community to a high standard.



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