I have a return to written question asked by Mr. Bromley on February 20, 2013, to the honourable Michael Miltenberger, regarding the impacts of hydraulic fracturing on water use and water quality.

In his first question, Mr. Bromley asked about the comparative cost benefits of employing different methods of hydraulic fracturing.

Mr. Speaker, the cost of hydraulic fracturing treatment depends mainly on the choice of a fracturing fluid. Fracturing fluids are generally classified into three types: water-based, oil-based, and foam-based. Geological formation characteristics often play a key role in the selection of appropriate fracturing fluid.

In his second question, Mr. Bromley asked about the failure rate of hydraulic fracturing operations.

To date, there have been no horizontal fracturing operations undertaken in the Northwest Territories or records of failure. The Government of the Northwest Territories has highlighted drill casing integrity as an area for review as we move towards the establishment of a policy framework in this area. This framework is intended to help guide other regulators and is expected to be ready in advance of the 2013 drilling season.

Mr. Bromley also asked about the potential for contamination of drinking water from hydraulic fracturing.

As outlined in the response to Committee Report 6-17(3), the GNWT is working with other regulators on the development of a policy framework around hydraulic fracturing in the NWT, expected to be ready in advance of the 2013 drilling season. One of the main focuses of this work will be on the protection of surface and groundwater. In addition, the GNWT has strongly encouraged oil and gas operators to develop surface and groundwater monitoring programs prior to extensive fracturing operations. This data allows not only for the

establishment of comprehensive environmental baseline information, but allows for measurements of change over time. As demonstrated by recent drilling operations, operators such as Husky and MGM are moving forward with development of these programs as the GNWT has encouraged.

In his final question, Mr. Bromley asked about using large volumes of water for hydraulic fracturing operations.

As outlined earlier in this response, there are many different methods that can be employed when accessing unconventional reserves. Given the variety of options available as well as other variables such as local geology, it would be premature to assume that any single method will be favoured over others.

The GNWT will work to ensure that any policy framework developed in this area will address issues associated with removing large volumes of water from the surface water life-cycle. Thank you, Mr. Speaker.