Business Day

Fracking draft regulation­s released

- PAUL VECCHIATTO Political Correspond­ent vecchiatto­p@bdfm.co.za

CAPE TOWN — The Department of Mineral Resources yesterday released draft regulation­s for the exploratio­n and exploitati­on of the country’s petroleum resources, a move that signals the government’s resolve to develop and benefit from the nascent industry.

The regulation­s include the proposed rules to govern hydraulic fracturing (fracking), the process whereby shale gas is extracted using highpressu­re water and chemicals.

The department has allowed for 30 days from yesterday for public comment on the draft regulation­s.

The department’s director- general, Thibedi Ramontja, told Parliament’s mineral resources committee yesterday that the final regulation­s would be published soon after the deadline date, although he did not give a definite time frame.

He said the actual physical exploratio­n of shale gas in the Karoo could start soon after the final regulation­s were published. Mr Ramontja also said the final regulation­s “… would incorporat­e some of the public comment received”.

The draft regulation­s come a week after Mineral Resources Minister Susan Shabangu said at a postCabine­t media briefing that the regulation­s were due to be released.

She also let slip that the government would want a “free carry” interest of 20% and might want another 30% while paying marketrela­ted prices in all new petroleum projects.

The draft regulation­s make no mention of that requiremen­t as they are concerned with the technical details of petroleum exploratio­n.

The six chapters of the regulation­s deal with site selection for exploratio­n, and the environmen­tal impact assessment­s that must be conducted. They also deal with water resource assessment, the risk of the effects of fracking in an area, and the protection of astronomy areas.

This relates to areas in the Karoo that have been designated as part of the multibilli­on-rand Square Kilometre Array telescope.

Also in the new draft regulation­s is well design and constructi­on, operations and management, disclosure of the chemicals used in the fracking fluids, and the management of waste.

Treasure Karoo Action Group CEO Jonathan Deal has attacked the draft regulation­s.

He said they put policy ahead of science, especially in the water management section as fracking fluids were known to travel further than the 1km radius mentioned in the regulation­s. “We have historical fact that (now defunct) Soekor used fluids in 1967 that contaminat­ed natural springs up to 34km away.”

Mr Deal also said the period for public comment was far too short, even for organisati­ons and companies that were up to date with the developmen­ts in the sector.

“Essentiall­y, these draft regulation­s are like putting lipstick on a pig. There is no proper science behind them,” he said.

A spokespers­on for Shell SA said it would study the draft regulation­s and welcomed the discussion­s over fracking. Shell SA has applied to explore an area of 250,000km ² in the ecological­ly sensitive Karoo for shale gas deposits.

Democratic Alliance MP James Lorimer said he cautiously welcomed the draft regulation­s, but would need to study them before making a more definite comment.

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