The interim report on fracking by the Parliamentary
Commissioner for the Environment, Dr Jan Wright, has provided
an analysis of the issues around the controversial
technology, and a cautious conclusion that the environmental
risks can be managed - with the provisos of operational best
practice and effective regulation.
Fracking, or hydraulic fracturing, involves injecting fluid
containing sand and chemicals at high pressure to fracture
rock to increase oil and gas extraction.
The process has faced opposition and calls for further
scrutiny in many places in the world where it is being used.
In New Zealand, it has been used in Taranaki for 23 years and
could be used in Southland, where large gas reserves in shale
(clay) deposits in the Waiau basin have been identified.
Dr Wright's investigation came after requests from MPs,
councils and the New Zealand public. The report has not
appeased environmentalists, who are upset she believes a
moratorium on the issue is not currently justified. But it
has been welcomed by the National-led Government, which has
promoted oil and gas exploration and production, and mining
in general, as the cornerstone of economic recovery and
While Dr Wright has not closed the door on the technology,
neither has she left it wide open. Her report states she is
not confident operational best practices are being
implemented and enforced in this country and is therefore
conducting a further investigation into such regulation, and
will not make formal recommendations until then.
Her interim findings in relation to government regulation
show the current system "is complex and fragmented", meaning
important issues can be overlooked, that too much trust is
being put on the drilling companies to do "the right thing"
in terms of health and safety as well as the environment, and
that a "social licence" for fracking has to be earned, as
communities are divided over the issue.
She has also outlined four areas of oil and gas production
that must be effectively managed in order to prevent
contaminants (the chemicals in fracking fluid, salty water
deep underground, or the oil and gas themselves) finding
their way into groundwater aquifers.
Those aspects are location, well design and construction,
surface spills and leaks, and waste disposal. She states if
they are not well-managed: "The potential for important
aquifers to be contam- inated as a result of fracking is very
She finds "the same aspects of the process are critical" when
it comes to the potential for triggering earthquakes. The
report also briefly examines the issue of climate change and
the debate over fossil fuels, but draws no conclusions.
One clear warning Dr Wright does make is the scale and pace
of change - from exploratory drilling to production -
"requires forethought now". Certainly, given the increased
interest in the process from oil and gas companies and in
light of the damning report from the Royal Commission on the
Pike River Coal Mine tragedy, which slammed management
practices and ineffective government regulation - it is
reassuring such issues are being highlighted now.
The Government is reviewing health and safety legislation in
the light of the Pike River tragedy, which claimed 29 lives.
And while Energy and Resources Minister Phil Heatley and
Environment Minister Amy Adams welcomed Dr Wright's findings,
Ms Adams said she had instructed her ministry to produce
guidelines on the roles of central and local government
regarding control of fracking.
The economic opportunities provided by mining and drilling
our natural resources are significant, and therefore the
process of fracking deserves to be fully explored.
The Government holds up Taranaki as an example of the
economic rewards on offer from oil and gas, citing $2 billion
contributed to gross domestic product, $400 million in annual
royalties, $300 million from company taxes and more than 5000
Dr Wright says she hopes her report will be "a helpful
contribution to the public debate".
It has certainly not ended that debate, by providing
conclusive evidence either way, which is possibly what some
were hoping for. Her next report, due next year, which will
contain recommendations on the regulation of fracking, will
therefore be eagerly anticipated.