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FRACKING:

jumping through the

hoops

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Fracking is meeting wide public opposition in the UK. This is largely due to concerns about, for example, water contamination, fires,

explosions, and accidental fuel spillages resulting from the uncontrolled release of hydrocarbon gas. Additionally, there are fears of earth tremors after minor earthquakes in Blackpool in 2011 were attributed to test wells being drilled by Cuadrilla.

The Department for Energy and Climate Change (DECC), the Royal Society and the Royal Academy of Engineering endorsed fracking activities, but their findings were caveated by their recommendation for stringent regulation of the industry. We will now examine what the key health and safety regulations are and how to comply with them.

REGULATION BEFORE FRACKING COMMENCESFor the purposes of this article, I am focussing primarily on legislation concerning health and safety. The overriding objective of health and safety regulation surrounding fracking is to ensure public safety within and near fracking activities, as well as to protect the health and safety of those working on such activities. Well integrity is therefore paramount to achieving these objectives. This involves ensuring that wells are designed, constructed, operated, maintained, and abandoned so that the flow of fluids in the well is controlled and stays within the well.

BUT BEFORE FRACKING ACTIVITIES EVEN COMMENCE, A NUMBER OF MEASURES MUST BE FOLLOWED:

Operators must obtain a licence from DECC to secure exclusivity to operate in a particular area. DECC grants such licences for hydrocarbon extraction because the Crown in the UK retains all sub-surface rights to hydrocarbons. Operators must also negotiate access with landowners for the drilling pad area. They will also need permits from the bodies, such as the Environment Agency (EA) in England, which regulate and monitor the environmental impacts of shale gas operations. At least 21 days before drilling is planned, operators must notify the HSE of the well design and operation plans, which must incorporate safety features. Well notifications to the HSE aim to ensure that major accident hazard risks to people from the well and well-related activities are properly controlled. They are key to the project as they identify any likely risks relating to the integrity of operating wells.

Operators must also submit a fracturing plan to DECC which addresses the risk of induced seismicity.

Before consent is given, DECC will also check with the relevant environmental regulator and the HSE as to whether they have any objections to fracking commencing.

REGULATION DURING THE OPERATIONAL PHASEOnce the HSE, DECC and local authorities are satisfied with and assured by the operator’s plans as to the integrity and quality of the proposed wells, the integrity of those wells must be maintained and reviewed regularly by way of adhering to certain measures.

For example, operators should submit weekly operations reports to

the HSE as assurance the operator is constructing and operating the well as described in the notification. If this is not proven, the HSE can then take appropriate action.

Operators should also hold meetings with the HSE, including site inspections, to assess the integrity of fracking wells. The HSE and EA will then have the opportunity to meet and advise operators of their duties, before conducting a joint inspection of their key operations to manage risks effectively throughout the life cycle of the well.

An independent well examiner (such as an employee of the operator company or contractor) should review the proposed and actual well operations, to ensure they meet the operator’s policies and procedures, comply with the Offshore Installations and Wells (Design and Construction etc.) Regulations and follow good industry practice. Regular testing of cemented well casings by way of pressure tests, “leak-off” tests (testing for drilling fluid leaking into the rock), and quality tests of cement casing (such as cement bond logging), are just some of the methods by which well examiners can check well operations are compliant.

FRACKING LEGAL ADVICEFracking will be regulated, just like all major industrial activities in Britain. It has the potential to provide a boost to the UK economy if carried out in consideration of all possible risks and in accordance with regulations. Meeting the key health and safety regulatory issues can be achieved with the help of well-informed legal advice from sector focused experts. Legal advisors can assist those in the fracking industry to make a success of their business, right from the inception of operational planning through to reviewing operational procedures, and can help with responding to regulatory challenges in order to benefit both the industry and the public at large. ■

■ DWF LLP is a business law firm providing a range of legal services to insurers, corporate bodies, public sector institutions and private individuals. For more information visit www.dwf.co.uk. To find out more about fracking regulation, sign up to DWF’s group on LinkedIn at www.linkedin.com/groups?gid=4548549

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Fracking for natural gas is not just fracturing the geological landscape – its emergence and development has also amplified political divisions. Emma Khoo,

a Solicitor at DWF LLP specialising in regulatory compliance and defence for the energy sector, examines the key regulatory hurdles the industry will need to overcome when fracking for natural gas

The overriding objective of health and safety regulation surrounding fracking is to ensure public safety

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