Fracking bids continue despite moratorium
posted on
Apr 29, 2011 08:56AM
Developing large acreage positions of unconventional and conventional oil and gas resources
Environment Writer JUBILATION over the cabinet’s announcement last week of a moratorium on fracking in the Karoo is premature: it does not stop existing applications from going ahead, but applies only to new applications.
This means Shell’s fracking application will continue to be processed, as will those made by South African-registered Bundu Gas and Oil (Pty) Ltd and Canadian Falcon Oil and Gas company. All three firms have Karoo fracking applications in the pipeline. Those of Bundu and Falcon Oil are further down the line than Shell’s.
On Thursday, environmental groups and community organisations opposed to fracking celebrated what they saw as a decision by cabinet to put a temporary halt to licences.
The joy was over government spokesman Jimmy Manyi’s statement that the cabinet had endorsed the decision by the Department of Minerals to invoke a moratorium on fracking licences in the Karoo. He said the Department of Mineral Resources would lead a multi-disciplinary team, including the Departments of Trade and Industry, Science and Technology, to research the implications.
But yesterday Department of Minerals spokesman Bheki Khumalo said this did not mean Shell’s application would be halted, nor would those of other companies. He said all the cabinet had done was to endorse the department’s decision, published in the Government Gazette on February 1, which put a moratorium on all new applications for mineral permits and exploration rights until further notice. The gazette stated at the time that this would not affect the processing of applications received before February 1.
“All the moratorium meant was no new fracking applications will be accepted, because we were facing a deluge of applications, and cabinet endorsed that decision,” Khumalo said.
The Petroleum Agency of South Africa has issued Shell, Bundu Oil and Falcon Oil technical co-operation permits allowing them to conduct studies and get seismic data about fracking in the Karoo but does not allow them to carry out prospecting or exploration activities.
“Shell has done an environmental management plan and we have 120 days to consider that. We are doing that. Once that has been done, there will be further work to decide whether to give them a prospecting licence,” Khumalo said.
Attorney Derek Light, who represents 300 individuals, Agri-East Cape and Treasure the Karoo Action Group, all opposed to fracking, said: “That’s not good news. When you look at the cabinet statement, you would be excused for thinking it applies to everybody, immediately. But when I heard about it, it was odd to me because I thought it unlikely that they could disqualify existing applications. They have a legal obligation to process them.”
Jonathan Deal, Treasure the Karoo Action Group coordinator, believes the cabinet announcement means no fracking applications, existing or new, will be considered.
“The gazetted moratorium was a national one for any mining applications. This cabinet moratorium is specifically where fracking is proposed and it says they will lead a multi-disciplinary team to fully research the issue. There is no connection between this statement and the department moratorium.”
In an e-mail later, Deal said he and attorney Luke Havemann believed the cabinet had “correctly and directly intervened in this issue of critical national importance which cannot be adjudicated on by any one ministry acting in isolation from the multitude of stakeholders in SA”.
No comment was forthcoming from the Petroleum Agency of SA yesterday.
http://capetimes.newspaperdirect.com/epaper/showarticle.aspx?article=4c6f4190-6586-40ac-b3c9-e50fcb078381&key=9f4amfamZDcaeUf6l%2bcE%2fw%3d%3d&issue=64022011042600000000001001