B.C. Provincial Government Implements New Public Reporting Requirements for Hydraulic Fracing Fluids and Announces Human Health Risk Assessment Relating to Oil and Gas Activities.
Charles W. Bois, Vancouver
Richard Truman, Vancouver, Articling Student
B.C. Provincial Government Implements New Public Reporting Requirements for Hydraulic Fracing Fluids and Announces Human Health Risk Assessment Relating to Oil and Gas Activities.
The BC provincial government recently implemented a new regulation to require oil and gas producers to publicly disclose the composition of fluids used in hydraulic fracing of oil and natural gas wells. Hydraulic fracing is a process of injecting a high-pressure mix of water, sand and chemicals deep into rock and shale formations to release trapped oil or gas. Fracing has been used for decades in oil and gas activities, but not at the intensity and pressures we are witnessing today. Fracing is made up of several stages, and at each stage, discrete volumes of fluid mix are pumped down the well to open and propagate the fracture and recovery process. The stages produce multiple fractures at varying depths or further particular fractures into a formation.
The fracing process is water intensive and may consume hundreds of thousands of litres of water. Producers may use fresh water and non-fresh water resources for fracing and fluids that remain in the fracture can impede gas flow. In order to reduce water consumption and improve well performance, producers try to recover and reuse as much “flowback” fluid as possible. The flowback fluids may be high in dissolved salts and fracing chemicals and must be treated before their ultimate disposal. Despite recovery efforts, 20% to 40% or more of the fracing fluid often remains in the ground.
As of January 1, 2012, producers are required to file detailed records including fluid ingredients, concentration of additives, trade name and supplier of ingredients and total volume of water injected in a new public registry to be maintain by the Oil and Gas Commission. Producers must upload the data to the new registry within 30 days of finishing completion operations at a well. The new registry (www.fracfocus.ca) is the first of its kind in Canada and will allow members of the public to search for information on ingredients used to support natural gas extraction by province, region, well or operator. The website will also provide links to information about various regulations and safety procedures governing oil and gas industry activity. According to the provincial government press release (www.newsroom.gov.bc.ca/2012/01/canadas-first-hydraulic-fracturing-registry-now-online.html), the site is designed to accommodate future participation by other jurisdictions, hinting at the possibility of a future national registry.
The requirement to disclose details regarding fracing fluids used was also recently endorsed by the Canadian Association of Petroleum Producers (CAPP) when it announced new Canada-wide hydraulic fracing operating practices. The new operating practices apply to all CAPP members exploring for and producing natural and shale oil and gas. Among the new operating practices is a requirement that producers disclose on a well-by-well basis the chemical ingredients in fracing fluid additives, including trade names, general purpose and concentrations (see: www.capp.ca/aboutUs/mediaCentre/NewsReleases/Pages/operating-practices-for-hydraulic-fracturing.aspx).
Concerns regarding the possible impacts on and contamination of fresh and groundwater resources from fracing operations are mounting in North America and Europe. Recently, the BC provincial government awarded a contract to the non-profit Fraser Basin Council to carry out the first phase of a human health risk assessment from hydraulic fracing and the practise of flaring of natural gas. The full assessment will include two additional phases; a health risk assessment based on comprehensive scientific review of evidence, and reporting findings to the provincial government, stakeholders and the public. The initial consultation phase is scheduled to be completed by March 31, 2012.
Back to top
© Miller Thomson LLP, 2012. All Rights Reserved. All Intellectual Property Rights including copyright in this publication are owned by Miller Thomson LLP. This publication may be reproduced and distributed in its entirety provided no alterations are made to the form or content. Any other form of reproduction or distribution requires the prior written consent of Miller Thomson LLP which may be requested from the Editor(s).
This publication is provided as an information service and is a summary of current legal issues. This information is not meant as legal opinion and readers are cautioned not to act on information provided in this publication without seeking specific legal advice with respect to their unique circumstances.
Miller Thomson LLP uses your contact information to send you information on legal topics and firm events that may be of interest to you. It does not share your personal information outside the firm, except with subcontractors who have agreed to abide by its privacy policy and other rules. If you do not wish Miller Thomson to use your contact information in this manner, please notify us at newsletters@millerthomson.com and include "Privacy Request" in the subject line.
