Labour calls for fracking review

Labour has called for a review into the controversial oil and gas industry technique of horizontal hydraulic fracturing, increasingly being used to penetrate deep underground rock to release natural gas.

The horizontal drilling and hydraulic fracturing (fracking) technique has been used on 40 onshore wells in Taranaki for a number of years, while fracking could be used by L&M Energy in Southland in the near future, where L&M has identified large gas reserves trapped in shale (clay) deposits in the Waiau basin; to the west of Ohai and Otautau.

Labour had flagged the possibility of an inquiry before the election, and yesterday, environment spokesman Grant Robertson said the implications of fracking in New Zealand should be a priority when Parliament resumes.

"There is international evidence to suggest that the process of fracking can contaminate groundwater, which could have serious consequences for rural communities, dairy farmers and milk processors if it goes unmonitored in New Zealand," Mr Robertson said in a statement.

Following its first term in government, National remains committed to opening up New Zealand's resource sector to more exploration and production, in a bid to boost export receipts and economic output.

In the fracking process, a drill hole is lined with steel casing and charges are detonated in the pipe to fracture rock then a mixture of about 97% water and sand and 3% chemicals is injected at high pressure into the fissures; allowing gas or oil to flow more freely. However, there is growing concern world-wide that the toxic chemicals used in fracking fluid can potentially get into underground aquifers and contaminate water sources; as could the methane (coal-gas) which is released.

It is mainly the 3% of fracture fluids causing alarm.

The Petroleum and Exploration and Production Association (PEPANZ) said in November that some of the chemicals in fracture fluids were "extremely toxic", such as biocides.

While present in low concentrations in the fluid, they required careful environmental management to avoid adverse effects; noting the hydrocarbon-based fluids were being replaced with lower environmental impact water-based systems.

Mr Robertson's call was prompted by a protest of more than 250 anti-fracking demonstrators at a Hawkes Bay Regional Council meeting on Wednesday, attended by representatives of TAG Oil and the Apache Corporation which are seeking to explore three sites in Gisborne, central Hawkes Bay and the Tararua districts for drilling and fracking.

"Fracking has been suspended or banned in many parts of the world. It makes sense for New Zealand, with our clean, green image in mind, to prioritise an investigation into the effects of the process here on our own soil," Mr Robertson said.

TAG's presentation to the council outlined an oil exploration process which would have a "50-50" chance of using fracking, Hawkes Bay Today reported.

Apache senior adviser of regulatory affairs Alex Ferguson said if initial findings confirmed oil deposits and consent was granted, there was a 50-50 chance fracking would be used in the drilling, although he later said he believed the first two test sites would be fracked. Apache has an East Coast oil exploration budget of about $125 million.

Mr Robertson called for a fracking review to be done by either a strengthened Environmental Protection Agency or the Parliamentary Commissioner for the Environment.

simon.hartley@odt.co.nz