http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.45Change: -0.40
R/$ = 13.85Change: -0.31
Au 1122.06 $/ozChange: -2.04
Pt 992.00 $/ozChange: -20.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 03, 2013

Fracking to require water use licence – Molewa

Back
Minister Edna Molewa
Photo: Duane Daws
Minister Edna Molewa
previous next
 
 
 
 
 
 
Pretoria|Africa|Bundu Gas & Oil|Chesapeake|Environment|Exploration|Falcon Gas & Oil|Gas|Gas & Oil Exploration|Projects|Resources|Shell|Statoil|Water|Africa|South Africa|Chemicals|Energy|Gas Resources|Oil|Oil And Gas|Oil And Gas Exploration|Recoverable Shale Gas Resources|Service|Services|Shale Gas|Shale Gas Exploration|Shale Gas Exploration Licences|Unconventional Oil|Environmental|Edna Molewa|Infrastructure|The National Water Policy Review|Fracturing
|Africa|Environment|Exploration|Gas|Projects|Resources|Shell|Water|Africa||Energy|Oil And Gas|Service|Services||Environmental|Infrastructure||
pretoria|africa-company|bundu-gas-oil|chesapeake|environment|exploration|falcon-gas-oil|gas|gas-oil-exploration|projects|resources|shell|statoil|water|africa|south-africa|chemicals|energy|gas-resources|oil|oil-and-gas|oil-and-gas-exploration|recoverable-shale-gas-resources|service|services|shale-gas|shale-gas-exploration|shale-gas-exploration-licences|unconventional-oil|environmental|edna-molewa|infrastructure|the-national-water-policy-review|fracturing
© Reuse this



Water and Environmental Affairs Minister Edna Molewa on Tuesday announced that companies wanting to use hydraulic fracturing, or fracking, to explore for shale gas in the Karoo would require a water use licence.

The Minister gazetted for public comment a notice of intent to declare fracking a controlled activity in terms of the National Water Act (NWA) for public comment. The notice included the exploration for, and production of, onshore unconventional oil or gas resources and any activities incidental thereto, including, but not limited to, fracking.

“What this means is that fracking becomes a water use, thus requiring a water use licence. In this regard only matters regarding water resources will be of consideration when licences are issued, including, but not limited to, the possible impact of substances and chemicals on the ground water resource,” Molewa said at a media briefing in Pretoria.

She added that the Department of Water Affairs (DWA) already had some applications for water use licences for fracking but that it would wait for the regulatory process to unfold before it would deal with them.

In September last year, South Africa lifted a moratorium on shale gas exploration in the Karoo region, which potentially holds 390-trillion cubic feet of technically recoverable shale gas resources, but has not yet issued any exploration licences.

Cabinet recently indicated that it is likely to authorise shale gas exploration before next year’s general election and moved to assure environmental groups opposed to fracking that it would proceed with exploration in an environmentally and socially responsible manner.

International oil companies such Shell, Challenger Energy subsidiary Bundu Gas & Oil Exploration, Falcon Gas & Oil, Statoil and Chesapeake have applied for shale gas exploration licences.

Molewa further emphasised that protecting the environment and South Africa’s water resources was the department’s key priority. 

“We will take every precaution to ensure that the possible impact of fracking on our water is carefully managed and minimised,” she added.

“The DWA would like to be objective, while protecting the country’s water resource and finding methods to further development. I want what is best for South Africa and in particular the water sector,” Molewa said.

The Minister further pointed out that an interdepartmental task team, of which the DWA was a part, had been established to deal with issues pertaining to unconventional oil and gas exploration and production.

The monitoring committee was tasked with reviewing the existing regulatory framework for fracking and to develop the necessary regulations and guidelines on the methodologies of fracking. It would also develop guidelines to ensure that negative impacts of exploration for possible production of shale gas resources was prevented, mitigated or managed.

At the moment, the committee is only focusing on exploration as a decision had not yet been made on whether South Africa would move into shale gas production.

Meanwhile, Molewa reported that Cabinet had approved the National Water Policy Review, which was gazetted for public comment on August 30.

The review, aimed at filling gaps in the water policy and facilitating necessary amendments, addressed 12 key policy positions, she said.

These included a multiple water-use approach in infrastructure planning; access to basic water supply that would in future only be provided to indigent households; and the application of the “use it or lose it principle”, through which any unused authorised water would be reallocated to a public trust managed by the Minister.

Further, water trading between authorised water users would be stopped and social and economic equity would be prioritised through the reallocation of the water.

The Minister stated that currently 98% of South Africa’s water resource was allocated, which left little for new projects and economic developments.

“We have to free up South Africa’s water supply,” she said, adding that the policy did not intend to take away water from any specific group to give to another.

Molewa added that economic regulation would be applied throughout the water value chain and to avoid any conflict of interest, water use tariffs would be determined yearly by the DWA, in consultation with National Treasury.

She pointed out that, among other major decisions taken, the NWA and the Water Services Act would be combined.

“This is because there have been a number of implementation challenges arising from the separate pieces of legislation,” Molewa said.

Challenges that had been identified included that the current legislation did not contain any mandate at the national level for the development of a strategy that covered the entire water value chain.

“Although the department is working on an infrastructure investment framework which covers both water supply and sanitation services as well as water resources infrastructure, this is not enabled by any legislation.

“Separate strategies for the management, development, control and protection of water resource and the provision of water supply and sanitation service results in inconsistency in the management of the entire water value chain,” Molewa said.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 4 hours ago Driving the Gauteng Department of Economic Development’s (DED’s) mandate of township revitalisation, MEC for Economic Development, Environment, Agriculture and Rural Development Lebogang Maile reported on Friday that the department had provided financial support to...
Terence Goodlace
Updated 4 hours ago Platinum mining and refining company Impala Platinum (Implats) is providing technical support to the South African Mint on the development of a platinum coin and, in a separate initiative, on the feasibility of platinum being held as a reserve asset by the South...
MEC Sakhumzi Somyo
Updated 5 hours ago The R2-billion Kouga wind farm, located at Oyster Bay in the Eastern Cape, was officially opened on Friday by Economic Development, Environmental Affairs and Tourism MEC Sakhumzi Somyo. The power plant, which entered commercial operations earlier this year,...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
The Health and Welfare Sector Education and Training Authority (HWSETA) has joined forces with Tshwane North Technical, Vocational and Education and Training College (TNC) to train 100 young unemployed learners as artisans, and marked this with an event that took...
JAMES TEMPLETON The increase in distribution is as a result of Emira’s acquisitive growth
JSE-listed Emira Property Fund reported distributions per participatory interest (PI) of 134.27 c – a distribution growth of 9% – for the 12 months to June 20, 2015.
Earlier this month ground broke on South Africa’s latest four star green building – the first of its kind in the Eastern Cape. The modern three-storey office block is located within the Baywest City precinct in Port Elizabeth’s western suburbs, along the N2, and...
South African armoured and mine protected vehicles company Denel Vehicle Systems (DVS) has won its first order since becoming part of the Denel group at the end of April. "It's a sizeable contract," reports DVS CEO Johan Steyn. "We won the contract in July. It's a...
South African guided weapons, unmanned air vehicles (UAVs) and space company Denel Dynamics plans to increase its revenues to more than R2-billion within five years. This was reported by company CEO Tsepo Monaheng at its annual "Show and Tell" briefing in Centurion,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96