Fracking plan on hold after court decision

LAST WEEK’S decision by the Eastern Cape High Court to set aside the 2015 fracking regulations puts in the balance plans by oil and gas exploration company Rhino Oil and Gas Exploration to explore for natural gas in the Eastern Cape, according to AgriSA.

The decision could also frustrate the government’s intention to proceed with a shale gas industry through hydraulic fracturing, known as fracking.

Janse Robie, head of Natural Resources at AgriSA, said the fracking regulations were regarded as a vital statutory requirement for the granting of shale gas exploration and production rights in South Africa.

Robie said setting aside the regulations would affect the pending exploration applications in the Eastern Cape including Rhino’s. The Department of Mineral Resources has granted environmental authorisations to Rhino for natural gas exploration across four provinces – Eastern Cape, Free State, North West and KwaZuluNatal provinces. Robie said environmental authorisation in terms of the National Environmental Management Act was a prerequisite for granting exploration rights for natural gas in terms of the Mineral and Petroleum Resources Development Act.

He said AgriSA was opposed to fracking, because of its concerns about water availability and water, soil and air pollution. AgriSA said the High Court accepted the major possible impacts of fracking and shale gas development with respect to air, soil and groundwater contamination due to uncontrolled gas or fluid flows arising from blow-outs or spills, interception of naturally occurring fractures and fissures, well failures, corrosion of casings, cementing failure, leaking fracturing fluid and uncontrolled waste water discharge.

Rhino, a wholly owned subsidiary of the Africa-focused Rhino Resources, did not respond to questions about the impact of the High Court decision on the company’s exploration aspirations. Rhino has lodged an application for an exploration right to explore for petroleum products, including oil, gas, condensate, coal bed methane, helium and biogenic gas with Petroleum Agency South Africa in terms of the Mineral and Petroleum Resources Development Act.