Falcon may escape the moratorium
posted on
Apr 26, 2011 11:07AM
Developing large acreage positions of unconventional and conventional oil and gas resources
Radio interference resulting from gas explorations in the Karoo could lose SA the bid to host the Square Kilometre Array telescope.
Opposition parties are pleased with the decision; however, questions around which applications for fracking are actually affected, remain unanswered.
In its ordinary meeting last week, Cabinet endorsed the decision by the Department of Mineral Resources (DMR) to impose the moratorium.
The Government Communication and Information System (GCIS) says the DMR will lead a multidisciplinary team, including the departments of trade and industry and science and technology, among others, to fully research all the implications of the proposed fracking.
“Cabinet has made it very clear that clean environment, together with all the ecological aspects, will not be compromised,” says the GCIS.
The proposed fracking was put forward by oil company Shell to explore for gas in an area of more than 90 000 square kilometres, in the South Western Karoo Basin.
Since this is where the SKA would be hosted, should SA win the bid, such exploration could threaten SA's bid to host the mega telescope.
Luke Havemann, director at Havemann Inc, a firm specialising in energy matters, says questions around which applications are affected need to be addressed.
He refers to statements by DMR media liaison Bheki Khumalo saying the moratorium only applies to new licence applications – possibly meaning those already put forward by Shell, Falcon Oil and Gas, and Bundu still stand.
Khumalo says the Cabinet statement says the moratorium is on “new prospecting applications. The law is very clear. It says if someone like Shell submits an EMP [environmental management plan] to the department, it has 120 days to consider it and the minister is not at that point yet with Shell's EMP.”
However, Havemann says it makes no sense to have new applications stopped, while old ones continue. He adds that it goes against the idea of a cautious approach, which is required by law in this kind of matter.
“There must be a complete comprehensive investigation into all the implications first. The two just don't go hand-in-hand. You can't allow for certain ones to slip through the cracks because they were there before.”
Havemann also says the exact framing of Cabinet's statement applies across the board to all applications.
He previously put forward a written objection to Shell's exploration under instruction from the Treasure the Karoo Action Group.
Democratic Alliance (DA) shadow minister of water and environmental affairs Gareth Morgan says the official opposition party welcomes Cabinet's decision to place a moratorium on onshore gas exploration licences.
“The DA appreciates that common sense has prevailed. There is no policy on hydraulic fracturing, more commonly known as fracking, in SA.
“Most notably, fracking is a high-risk procedure making use of toxic chemicals and is by no means foolproof. Neither the Department of Mineral Resources nor the Department of Water have sufficient compliance and enforcement capacity to monitor and hold exploration rights holders to account if there are pollution events.”
Val Munsami, deputy director-general for research development and innovation at the Department of Science and Technology (DST), says the shale gas initiative leaves a big question around the SKA.
At a Parliamentary Portfolio Committee meeting last month, he said the department is concerned about the exploration from an SKA perspective.
“In terms of international lobbying strategies, it's starting to creep in. The international partners are asking questions about where this is going and how it will impact the SKA.”
Associate director of the SKA SA project Anita Loots said the actual fracking may cause a problem at a later stage, but the immediate concern is around strong radio signals that will be present because of the exploration.
In response to a National Council of Provinces question this month, science and technology minister Naledi Pandor said an application for prospecting has no impact on SA's bid to host the SKA.
“An application can only have impact if granted. If the Shell application is granted, and if Shell uses communication systems with frequency ranges that interfere with radio telescope operations, the prospecting will affect radio astronomy.”
SA is bidding against Australia to host the SKA.
The final decision regarding the successful host country for the SKA telescope is expected in 2012, with work due to start in 2013. Operations will start in 2015, provided a significant portion of the array has been commissioned.
The SKA is a mega telescope, about 100 times more sensitive than the biggest existing radio telescope.
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