According to the U.S. Energy Information Administration, Poland appears to hold some of the geologically most favorable shale gas formations in Europe – around 187 Tcf of technically recoverable resource. Many foresee that if these predictions come true and the production of the gas commences, Poland will be able to free its economy from the energy dependence on Russia.
Regardless of the economic benefits resulting from the mass production of shale gas, the process of its exploration and later production is controversial. For instance, a ban on the exploration of this resource by means of hydraulic fracturing has been placed in France and now also in Bulgaria.
The potential negative environmental effects are highlighted as the main reasons for halting exploration and production. The biggest threat is the contamination of aquifers and the environment that surrounds mining sites.
Complete analysis and confirmation of the existence and scope of negative effects of the production on the environment requires more time and further research. In the US several official reports, based on currently available data, have been published. They analyze the potential impact of these mining activities and give recommendations for improvement. For example, recently (November 18, 2011) the Secretary of Energy Advisory Board in the US issued its second “ninety day” report. In Poland, a similar report has been prepared by the Ministry of Environment and the National Geological Institute. Despite these efforts, further studies are required as the technology of producing shale gas is relatively new and not all of the problems (especially long term) arising from its commercial usage are yet described, fully resolved and regulated.
Currently, on a large commercial scale, shale gas is produced only in the United States. No production has yet taken place in Europe. The law in the EU and Poland in regards to the specific problems posed by this new technology will require further development in order to resolve conflicts, recognize and prevent threats and regulate the quality of production. Therefore, it would be wise for European countries interested in exploiting shale gas – such as Poland – to form an official expert group that would – on an ongoing basis – study the legal, environmental and technical issues surrounding the production of the resource in the United States. Europe should carefully examine American cases, as most of the problems are already recognized and dealt with. For example, the legislature in West Virginia recently passed a bill – Natural Gas Horizontal Wells Control Act – that comprehensively regulates hydraulic fracturing and shale gas development.
Until all the issues that arise from the shale gas operations are fully identified, a normal legislative route in Europe may be too slow to adapt the law to the incoming threats. It is worth considering establishing a separate agency in each of the member states, that would have regulatory and supervisory power over the shale gas industry.
The protection of the environment and especially of the available surface and ground waters should be the main aim of member states and local governments. It has to be noted that this does not necessarily stand in contradiction to the interests of the corporations that produce gas. The reports suggest, that the exploitation of gas – if done in compliance with the current technology and stringent regulations – is not as dangerous as the environmental and renewable energy lobby may suggest. It is therefore crucial for the member states to have quality regulations and enforcement in place, before mass production of shale gas begins.
Recently, the European Commission published a report examining regulations concerning exploration of shale gas in Poland, France, Germany and Sweden. The analysis confirmed that the current EU and local laws in these countries sufficiently protect the environment. Poland was recognized for above standard results – mainly relating to the fact that it conducts consultations with the communities involved early in the concession process and for having environmental assessments conducted before the license for exploration is granted. Subsequent reports have been announced.
Poland recently introduced a new Geological and Mining Act which alters the legal framework for exploration, prospecting and production of hydrocarbons in Poland. It is to be seen how the new law will work in practice and whether the proposed legal framework will sufficiently cover issues that arise in relation to exploration, prospecting and production of shale gas. In light of the suggestions highlighted above, amendments will probably be unavoidable.
This article was first published in AgiEnergia – an Italian internet portal specializing in Energy issues. The Italian version of the article can be found here: http://www.agienergia.it/Notizia.aspx?idd=767&id=42&ante=0