http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 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 & 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|Water|The National Water Policy Review|Fracturing
|Africa|Environment|Exploration|Projects|Resources|Shell|Water|Africa||Energy|Oil And Gas|Service|Services||Environmental|Infrastructure|Water||
pretoria|africa-company|bundu-gas-oil|chesapeake|environment|exploration|falcon-gas-oil|gas-oil-exploration|projects|resources|shell|statoil|water-company|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|water|the-national-water-policy-review|fracturing
More Insight
© 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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