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Home / New Zealand

Report: Fracking regulation 'not adequate'

By Nina Fowler
APN / NZ HERALD·
4 Jun, 2014 02:00 AM3 mins to read

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Oil and gas companies can now choose from a range of different drilling methods. Photo / Getty Images

Oil and gas companies can now choose from a range of different drilling methods. Photo / Getty Images

An independent environment watchdog is calling for tighter rules to govern the oil and gas industry's use of fracking in New Zealand.

In a report released today, Dr Jan Wright, the Parliamentary Commissioner for the Environment, described existing regulation as "not adequate", especially with potential for rapid expansion in the North Island's East Coast.

Fracking, short for hydraulic fracturing, is a drilling method that works by pumping a high-pressure mix of water, sand and chemicals into rock.

In some parts of Australia and the United States, fracking has led to fast growth in oil and gas wells - with regulators "scrambling to catch up", Dr Wright said.

Risks can be managed but include the contamination of groundwater and soil.

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In New Zealand, fracking is already taking place in Taranaki. Exploration wells in Manawatu, Gisborne and Hawke's Bay are likely to require fracking for full-scale commercial extraction.

The East Coast is relatively dry and "very reliant" on certain key aquifers, Dr Wright said. The region is also home to known earthquake faults that could damage wells, causing leaks into groundwater.

She added that the region's promotion of itself as a producer of premium food would conflict with a mushrooming oil and gas industry.

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Her report makes six recommendations for change:

• The government should develop a consistent national policy statement paying particular attention to 'unconventional' oil and gas.

• Regional council plans should be revised to give more control over oil and gas wells. Most don't distinguish between drilling for water and drilling for oil.

• Wells need to be designed to minimise the risk of leaking into aquifers.

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• Better processes are needed to govern who pays if something goes wrong. Abandoned wells need to be monitored - the older a well is, the more likely it is to leak.

• Regulations on hazardous substances at well sites need to be better enforced.

• The disposal of waste from wells by spreading it on farmland needs review. There have been instances of farm animals grazing these areas before the breakdown of hydrocarbons is complete.

The Green Party, Forest and Bird and Greenpeace today renewed calls for a moratorium on fracking.

Dr Wright said that a ban isn't justified, as New Zealand's laws can be used to manage the risks, but she doesn't want the report to be taken as a "big tick".

"I would much rather see a focus on 'green growth' because my major concern is the impact of the burning of fossil fuels on the global climate."

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Environment Minister Amy Adams and Energy and Resources Minister Simon Bridges described the report as a "useful contribution".

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