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IndustryOilGas3TuesdaySeptember242013FrackingcriticspraisenewNEBrulesfortheNorthThoughchemicaldisclosurestaysvoluntaryrequirementsonhumanerrorcouldrenderprojectseconomicallyunviablesaysconsultantByMEAGANWOHLBERGCriticsoftheunconven-tionaloilandgasextractionprocessknownasfrackingweresingingthepraisesoftheNationalEnergyBoardNEBlastweekaftertheregula-torrevealeditsnewrequire-mentsforcompaniesplanningtodohydraulicfracturingintheNorthwestTerritoriesandNunavutonMonday.Companiesarerequiredtobeginfollowingthenewl-ingrequirementsimmediatelywhenapplyingfordrillingoperationsthatusehydrau-licfracturingaprocessbywhichwaterandchemicalsarepumpedathighpressureintotheundergroundshalebedtoforceoilandgastothesurface.IthinktheNEBhascomeforwardanddonetherightthing.IalsothinkthisisgoingtosetanextremelyinterestingprecedentfortherestofthecountrybecausetheprovincesdonotrequirethissaidJessicaErnstanoilpatchconsultantcurrentlyinvolvedinalawsuitagainsttheAlbertagovernmentandEnCanaResourcesforalleg-edlypollutinggroundwaterthroughfracking.AccordingtoErnstwhohas30yearsofexperiencemakingapplicationstoregu-latorsincludingtheNEBthenewrequirementswilllikelyposeahugecompliancechal-lengebothtechnicallyandnanciallyforcompanies.ThoughtheNEBdoesnotrequestdetailsonthetypesandtoxicityoffrackingchemicalsbeinginjectednorthedisclosureofchemicalsusedfordrillingperforat-ingacidizingcementingorservicingonlyaskingcom-paniestodescribethedesignbasisfortheselectionofthefracturinguidsandchemi-caladditivesErnstsaidotherrequirementscouldrenderprojectsuneconomical.Ithinkitsgoingtobedif-cultforthecompanyandiftheyhiredmeIwouldtakeonthetaskbutIwouldtakeadeepgulpandtellthemthiswillbethemostchallengingNEBprojectIveeverdoneshesaid.Ernstsaidhermaincriti-cismoftheNEBannounce-mentisthatitonlyimpactstheterritoriesandyetmisleadsallCanadiansintothinkingthattheserequirementscoverpro-vincialjurisdictions.ThoughtheNEBdoesnothaveamandatetomakethelingrequirementslegalfortherestofCanadashesaiditcouldeasilyhavesuggestedtheseguidelineswhichfarovershadowthelistofsevenbestpracticesfromtheCana-dianAssociationofPetroleumProducersCAPPindustrylobbygroupcurrentlybeingadoptedacrosstheboardasthebareminimumforfrack-inginCanada.RequirementssimilartoenvironmentalassessmentCompanieswhobalkedattheideaofanenvironmen-talassessmentEAsuchasMGMEnergy-whichwith-drewitsapplicationtodoex-ploratoryfrackingintheSahtuafteritwasreferredbythere-viewboardtotheassessmentprocess-andConocoPhillipswhosewinterdrillingprojectbypassedtheassessmentalto-getherwillnowbeexpectedtofulllrequirementsmark-edlysimilartoafullEA.Developersarenowalsoaskedtoperformsocioeco-nomicassessmentsoftheirproj-ectsbeforemovingforwardasalingrequirement.Someofthemorechal-lengingrulesErnstsaidarethoseforcingcompaniestoadequatelymeasurerecordsampleandanalyzechemical-ladenowbackuids-thosethatreturntothesurfaceaftereachfrac-andtodescribetheproceduresfortheselectionevaluationanduseofchemi-calsubstances.ButErnstsaiditisthenewarrayofrulesaskingcompa-niestoprovetheyarecapablebothnanciallyandintermsofhumanresourcestoprop-erlymanagefrackingprojectsbothonaday-to-daybasisandincaseofemergenciesthatposesthegreatestchallengetodevelopers.TheNEBnowrequiresapplicantstodemonstratethathumanerrorhasbeentakenintoconsiderationbythemanagementsystem.Thehumanperformancechallengeswouldbethingslikethedrugsthedrinkingthestressbeingawayfromhome...soyouhavelessthanperfectworkmanshiphap-peningErnstsaid.Thehumanfactoriswhenyouhaveatruckgoingoverthebridgeoryouhaveagreedycompanymakingtheworkersworktoohardsotheymakeitphysicallyimpossibleforatruckertotakethewastetoawastedisposalwellsowhennooneslookingtheydumpitintoacreek.Thosearehumanfactorsandthatisamassivechallenge.ThatstheonethatwouldscaremethemostifIwashiredtodothisforacompany.MoresoErnstsaidthelingrequirementsaretoughenoughthattheywillalmostcertainlybemetwithrequestsformoreinformationfromtheNEBwhichcouldbringupfurtherchallengessincetheboardhasmadecleartherulesaresusceptibletochangeasmoreinformationemerges.NewrulessparkedbypublicconcernTheNEBsannouncementcomesontheheelsofawaveofpublicconcernoveraclauseinthewaterlicenseissuedfortheterritorysrsthorizontalfrackingprojectwhichallowsthedeveloperConocoPhillipstowithholdtradesecretsfromthelistofchemicalsitsrequiredtodisclose.FollowinganinvestigationbyNorthernJournalintopro-prietaryrightsonfracuidstheNWTChapterofCouncilofCanadiansraisedthealarmattheterritoriallevelcallingforaninternalinvestigationbytheGNWTundertheEnviron-mentalRightsAct.AccordingtoNEBchairGaetanCaronthoseconcernsarebeingtakenseriouslyandarethebackingforthenewl-ingrequirements.HesaidtheNEBisworkingalongsidetheGNWTinshapingfrackingbestpracticesfortheterritory.Wearethinkingofhowtomovetowardmoretranspar-encyhowtobalancepublicconcernandprivateinterestsCarontoldTheJournalinaninterviewearlierthismonth.Withinthenewrequire-mentscompaniesareaskediftheyarewillingtodis-closethechemicalsusedinthefrackingprocess.WhilesomeincludingErnsthavecriticizedthedecisiontokeepdisclosurevoluntaryshesaidthetacticemployedbytheNEBcouldactuallybeanef-fectiveandcalculatedaccount-abilitymechanism.WhatiftheapplicantsaysnoTheNEBwillmaybesaywellweregoingtodisallowyoushesaid.TheboardhasindicatedthatcompaniesseekingtofrackintheSahtuareaoftheNWThavealreadypledgedfulldisclosureofchemicalstobeusedinthefrackingprocessdespitehav-ingthelegalrighttokeepthatinformationprivate.Co-chairoftheCouncilofCanadiansNWTchapterPeterRedverssaidheisgladtoseemovementtowardsmoretrans-parencybutcontinuestowaitfortheresultsoftheGNWTsinvestigationundertheEnvi-ronmentalRightsAct.Itsgoodtoseethatthereissomemovementonthisatleastintermsofthetranspar-encyissue.Thatssteponegettingthetransparencyforthepublictohaveasgoodanunderstandingaspossibleastowhatitisthatsbeingused...andhowmuchofthatisre-coveredandhowmuchofitisleftunderthegroundRed-verstoldTheJournal.Thenextquestionofcourseiswhataretheen-vironmentalimpactsofthatCertainlythosequestionswillhavetobeaddressedaswellandthehopewouldbethatthisdecisionbytheSahtuboardtoissuethisper-mitwithoutanenvironmentalassessmentwouldberecon-sideredheadded.Itsgoodtoseethatthereissomemovementonthisatleastintermsofthetransparencyissue.PeterRedversNWTCouncilofCanadiansPhotocourtesyofNWTCouncilofCanadians