Gas industry welcomes Marmion's fraccing call

Tuesday, 6 March, 2012 - 15:24
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Western Australia’s oil and gas industry has welcomed the state government’s rejection of four appeals against fraccing in the onshore gas sector, calling it a win for companies advocating science-based regulation.

On Friday, Environment Minister Bill Marmion dismissed appeals against approvals for four proof-of-concept proposals that will use hydraulic fracturing, or fraccing, to test the potential for commercial shale gas developments in the Mid West.  

Australian petroleum Production and Exploration chief operating officer, western region, Stedman Ellis, said the Minister’s decision was based on sound science, and it would provide effective environmental protection.

“The gas industry has a 40-year history of successful production in Western Australia – including the use of hydraulic fracturing,” Mr Ellis said.

“Fraccing has been used internationally for more than 60 years in more than 2 million oil and gas wells.

“It is a well understood process that has been studied many times and in several countries. It has consistently been shown to be safe.”

Norwest Energy, one of the companies which received the green light to conduct fraccing at its Arrowsmith-2 well in the northern Perth Basin, called Mr Marmion’s decision “great news”.

“This decision is critical in paving the way for Norwest to finally prove the shale gas potential at Arrowsmith-2,” Norwest chief executive Peter Munachen said.

“Success will ultimately contribute to the development of what is expected to be a significant shale gas industry in Western Australia, generating economic benefits to local communities such as employment, training and associated business opportunities, as well as significant royalties to the state.”

But Western Australian Greens spokesperson for water Alison Xamon condemned the decision, raising concerns over the potential adverse effects fraccing could have on the state’s groundwater systems.

She cited the banning of fraccing in France, Belgium, Pittsburgh and New Jersey as evidence that the technology was not without problems.

“The buck stops with Bill Marmion – he could have chosen to do the right thing but hasn’t,” Ms Xamon said.

“Here in WA we only get one chance to do this right, and that means we need to assess now and develop the stringent regulatory framework now.

“Instead the Minister and the EPA seem to want to wait until several hundred wells have been drilled before they will even independently