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Exploratory horizontal fracking approved Sahtu Land and Water Board grants approval with conditions but no environmental assessment
Lyndsay Herman
Northern News Services
Published Saturday, June 15, 2013
NORTHWEST TERRITORIES
The second time was a charm for horizontal hydraulic fracturing on exploratory wells in the Sahtu.
A pump previously used to extract oil from a drilled well rests at the top of a hill in Norman Wells. - Chris Puglia/NNSL photo
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On June 11, the Sahtu Land and Water Board granted ConocoPhillips Canada a land-use permit and water licence to drill and hydraulically fracture two exploratory wells on its Sahtu leases. The approval is the first green light in the territory for horizontal hydraulic fracturing, commonly referred to as horizontal fracking.
"We are pleased by the decision by the Sahtu Land and Water Board to approve our application for horizontal drilling with multi-stage fracturing and testing operations," stated Lauren Piercy, senior communications adviser for ConocoPhillips, in an e-mail to News/North. "We are currently reviewing the approval and conditions to identify our next steps."
A condition on the licence and permit is that ConocoPhillips submit a complete list and risk assessments of chemicals they intend to use when fracking 60 days prior to commencing operations. They are also required to submit a list of chemical additives and total water volumes used in the fracking of each well within 30 days of completing fracking operations.
Since June 11, there has been an abundance of praise from government and chambers of commerce over the decision, even if some are still hesitant to see fracking projects proceed to the production stage.
"(The Sahtu Land and Water Board) drew on the resources of the National Energy Board to clarify proponent obligations before making key decisions," stated NWT Chamber of Commerce president Kathy Gray in a news release. "It was a prudent approach that's resulted in the correct decision."
"The chamber and the majority of reviewers to this application clearly indicated the desire for this project to proceed without an environmental assessment to ensure continued economic benefit to the region while providing the opportunity to gather valuable information," stated Chris Buist, Norman Wells chamber president, in another release.
Buist's comments, that these two exploratory wells be used as a study of the effects of fracking on NWT land and wildlife, echoes a sentiment expressed in many letters listed on the Sahtu Land and Water Board's public registry with regards to ConocoPhillips' application.
Paul Dixon, Sahtu Land and Water Board executive director, said applications are considered individually and this approval does not set a precedence for future decisions. However, he added, the terms and conditions decided upon in this case would likely be applied to future approvals.
What Conoco did differently
MGM Energy Inc. had submitted an application for exploratory horizontal fracking last fall.
In October, the Sahtu Land and Water Board referred the application to an environmental assessment. MGM ultimately walked away from the project saying it was much too early in the process to complete something that would take as long and cost as much as an environmental assessment.
Other industry voices have said the same and ConocoPhillips focused communications in affected communities largely on why an environmental assessment was not reasonable for exploration work.
"The difference was you have a junior company and you have Conoco, who's a major company ... you have the Reddi Marts and the Wal-Marts," said Sahtu MLA Norman Yakeleya. "MGM wanted to do this, however they were stepping into the 'big boy shoes' and didn't have the resources to put together an adequate application like Conoco. Conoco has the resources. They have the means and they know what will pass the test ... for a controversial issue like hydraulic fracking. MGM did not have those kind of resources backing them when they filed their application."
According to Dixon, ConocoPhillips was not referred to an environmental review because of the more detailed baseline work the company completed in the area and the higher level of engagement they had with affected communities, among other points.
"Their community engagement and communications strategy was more successful in dealing with concerns of the community," Dixon said.
"MGM was agreeable to the fracture chemical release they just didn't have the previous work done in the area. Also, a lot of the concern that we had was from the land corporations of the area and that was primarily due to a lack of understanding of the project specifically."
MGM decided to comment on the board's decision to approve ConocoPhillip's application and if the decision affects the MGM's plans to submit another application for future horizontal fracking in the Sahtu.
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