Company Announcement - In America last week, the New York State Department of Environmental Conservation released the long awaited Supplemental Generic Environmental Impact Statement on horizontal drilling and high-volume hydraulic fracturing (fracking) in the state. This brings to a close, seven years of detailed scientific investigation and public consultation into the State’s decision on fracking. (The scoping phase commenced in 2008 and the draft SGEIS was released for public comment in September 2009. Following overwhelming public response and concerns raised about the narrow scope of the draft report, the NYDEC revised and expanded on the draft report and made substantial provisions for public participation. Permitting of shale gas extraction was placed on hold, pending the outcome of the SGEIS).

Aspects addressed
The final SGEIS report addresses an array of potential negative environmental and socio-economic impacts that include habitat loss and fragmentation, surface and groundwater impacts, air pollution, radioactivity, traffic impacts, waste and other aspects.

Conclusion of Report
The SGEIS concludes that high-volume hydraulic fracturing operations would have a potentially significant adverse impact on wildlife and habitats, but that the significant uncertainty around the extent of documented risks and impacts posed to the environment and public health remains a major factor.

Treasure Karoo Action Group CEO, Jonathan Deal said that “New York State has provided South Africa with an important example of the process for a Strategic Environmental Assessment (SEA) on shale gas. The scope of the report and the extent of public consultation and the inclusive manner in which the project has been concluded has offered South Africa an important guideline. The application of the precautionary principle, effectively placing a hold on any shale gas activity until the final publishing of the SGEIS is also a very important step that South Africa must take note of.”

At the moment, and in the absence of such an assessment, the South African government has promised to issue exploration licences.  This despite the fact that final regulations and public consultation are yet to occur.  Observing that, “The current applications before government may involve high-volume horizontal hydraulic fracturing – even in exploration,” Deal argued that “the government would not be prepared to predict or deal with the potential consequences.”

“We’re at a crucial junction in the process and the consequences of a wrong decision will far outweigh a perceived short term benefit.  I am convinced that it is in the best interests of the country to wait until the scientists of the SEA have spoken.”