Dáil Éireann Debate, Thursday - 11 October 2012
120. Deputy Ray Butler asked the Minister for Communications; Energy and Natural Resources his policy in respect of hydraulic fracturing; if he will provide an update on any recent decisions in respect of licensing and policy; and if he will make a statement on the matter. [44012/12]
View answerThere is potential for Ireland to enjoy both economic and energy security benefits from its indigenous oil and gas resources. These benefits will only be realised through effective exploration. Ireland has a policy of actively encouraging investment by relevant companies in exploration for oil and gas, both offshore and onshore. Where exploration or production takes place, it is subject to a robust regulatory framework, with a clear objective of ensuring that all exploration and production activities are carried out in a safe manner and without significant environmental or social impact.
I am very conscious that some concerns have been strongly expressed that use of the technology known as hydraulic fracturing in exploration and production activities, could have a negative impact on the environment. The principal concerns that have been expressed relate to the production phase of a project and environmental considerations arising from the large number of production wells that may be hydraulically fractured. In February of last year, my Department granted onshore Licensing Options to three companies over parts of the Lough Allen and Clare Basin respectively. The Licensing Options are preliminary authorisations and are different to exploration licences. The Options are for a two year period from 1 March 2011. During this period, the companies will evaluate the natural gas potential of the acreage largely based on studies of existing data. Exploration drilling is not permitted under these authorisations.
It is too early to say if any of the existing onshore licensing options will even progress to the exploration phase, let alone to a production phase, however, the statutory framework that would apply to such an application is the framework that is already in use in the case of a range of major strategic infrastructure projects. Under that framework a developer would require consents from An Bord Pleanála, the Environmental Protection Agency, the Commission for Energy Regulation and the Minister for Communications, Energy and Natural Resources. This would result in a consideration of the potential environmental impact of any proposed petroleum production project, subject to EU environmental Directives, including the Environmental Impact Assessment Directive, which requires full public consultation.
As the Deputy may be aware, in May of this year the Environmental Protection Agency published its preliminary research into the environmental aspects of shale gas extraction in the form of a small desk based study, which was carried out by the University of Aberdeen. The study provides an introduction to the environmental aspects of fracking including a review of regulatory approaches used in other countries and areas for further investigation and research such as geological principles of relevance in fracking and shale gas extraction, potential environmental impacts and establishing best environmental practice. While the study is a preliminary study it will inform the development of the terms of reference for a much more detailed research study to be commissioned by the EPA later this year. The terms of reference for this more extensive research are currently being drawn up by a steering group including representatives from the EPA and my Department.
The outcome of the further research to be commissioned by the EPA will assist in a robust scientific based assessment of any future application proposing the use of this technology. I can confirm, however, that until there has been time to consider the second stage of the EPA research, the use of hydraulic fracturing in exploration drilling will not be authorised. My policy approach is therefore one of encouraging investment in exploration, while ensuring all exploration and production activities are carried out in a safe manner and without significant adverse environmental or social impact.
