Thank you, Mr. Speaker. While many aspects of hydraulic fracturing are specific to a well’s location, some technical features of this process are universal. Hydrocarbon-bearing shale is found at least one and a half kilometres below surface. A resounding message that the committee heard from all presenters on the study tour is that sufficient well casing, cementing and depth are critical to protecting groundwater and human and environmental health during any horizontal drilling operation. Inadequacies in these areas are among the leading causes of groundwater contamination in shale plays in the United States. Wellbore integrity is also crucial during the drilling and fracturing process and the management of flowback and produced fluids.
In addition to sound wellbore construction, Members also highlight the importance of micro-seismic monitoring to ensure that fractures remain in their target zone, and to monitor, mitigate and avoid any negative impacts of induced seismicity.
Hydraulic fracturing is, by its very nature, water intensive. Proponents may use propane or other hydrocarbon-based fluids to fracture a well; however, the majority of wells are fractured with large volumes of water, sand and chemical additives. A typical well in the central Mackenzie Valley may require 10,000 to 25,000 cubic metres of water; that is 10 to 25 times the amount in the large water tanks in many of our communities, or 10 times the volume of an Olympic swimming pool. Committee members recognize our northern waters as a treasure and a resource that must be preserved through carefully considered management tools. Any policy on hydraulic fracturing in the Northwest Territories must speak to water management. The committee encourages the Government of the Northwest Territories to support industry initiatives to protect water quality, use non-toxic additives to fracturing fluid, and reduce fresh and surface water consumption. The committee agrees full chemical disclosure is vital to environmental protection and public accountability.
The province of British Columbia presented a clear example of how it regulates, monitors, allocates and reports industrial water use. Industry and provincial regulators felt strongly that provinces and territories should lead regional water monitoring. More baseline information is required for the Northwest Territories to develop effective water management tools.
During the exploration phase, industry will ship fluids and other drilling waste to Alberta for disposal. Transporting waste out of the Northwest Territories on the winter road system appears to be an adequate temporary solution; however, industry emphasized that in order to advance to production, a made-in-the-north water treatment or disposal system must be found.
Deep well injection, pumping wastewater back underground, is the preferred disposal method. Certain jurisdictions regulate disposal wells to ensure environmental protection. The committee learned that these wells must be located in areas where natural and technical barriers can create a secure disposal site. The layers of rock above disposal zones must be tested and monitored to ensure that contaminants do not migrate. Proponents highlighted that if a water treatment plant is established, it must be designed specifically for the oil and gas industry.
The Canadian Association of Petroleum Producers has introduced principles and guidelines for industry that include detailed requirements for fracturing fluid additive disclosure and
management, baseline groundwater testing, wellbore construction, water sourcing and reuse, and fluid handling transport and disposal. Alberta and British Columbia also have well-established regulations for all phases of the drilling process.
Recommendation 3
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories adopt standards for all phases of the drilling process and include these in its policy framework, and strongly recommends these standards be incorporated into regulation at the appropriate time.
I will now turn the floor over to my colleague Mr. Bromley.