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Frequently Asked Questions for the Regulation of Unconventional Gas

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1. What is unconventional gas? Unconventional gas is that energy source which is gained by using non-traditional methods of recovery for example: It does not use the old methods of oil and gas recovery but newer and differing methods of gas recovery.

2. What is Shale Gas? Shale gas is natural gas that is trapped within shale formations.

3. What is Coal Bed Methane (CBM)? A form of natural gas which is extracted from coal seams by pumping out groundwater from the coal seams which then decrease the pressure and allows the gas to flow.

4. What is Underground Coal Gasification (UCG)? The process of converting coal to gas by burning the coal while in situ/underground.

5. What is the purpose of DWS regulating unconventional gas activities? The purpose of these regulations is to protect water resources so as to avoid and minimise detrimental and cumulative impacts on the water resource by the regulated activity.

6. What is hydraulic fracturing? Hydraulic fracturing is the mechanical action of injecting high pressure fluids into rock formations which then creates fine cracks in the rock below, which then allows the gas to escape.

7. What is the difference between hydraulic fracturing and unconventional gas? Hydraulic fracturing is one process of many steps which aids in in releasing the gas. Unconventional gas is the umbrella term used to define shale gas, coal bed methane and underground coal gasification.

8. What are the chemicals used in fracking and why is it important for DWS to know chemicals used? As part of disclosure, companies need to disclose fracturing fluids as these might have impact on the water resources in terms of groundwater contamination, DWS’s mandate is to ensure that the nation’s water resources are protected, used developed, conserved, managed and controlled in ways which take into account amongst other factors reducing and preventing pollution and degradation of water resources.

9. What is aquifer water? This refers to that water which is found underground and is termed groundwater. Its sources include direct seepage of rainwater and water flow underground from rivers, streams and wetlands.

10. What are the different types of groundwater? Freshwater and ancient/connate water

11. Which groundwater type will unconventional gas activities interact with? Unconventional gas activities will largely interact with the connate water. However, freshwater will also be impacted should activities not be controlled.

12. If ancient water is being interacted with during activities, why do I need to engage with the Department of Water and Sanitation when you have never managed this water before? The DWS is the custodian of all waters in the country. The fact that we have not encountered this water type before does not exclude it from being managed. The DWS will manage this water in terms of the impacts to water resource management.

13. What are the impacts on water resources? There are various impacts which include: contamination and pollution of freshwater resources, depletion of water supply to water resources and the changing of characteristics of water resources that may in time change the environmental response that this water resource provides.

14. Are unconventional gas activities regarded as high risk or low risk? The DWS regards these activities as high risk due to the country being a highly variable and scarce rainfall environment.

15. What will the DWS regulate? There are four phases of unconventional gas which typically cover survey, exploration/appraisal (also referred to as piloting phases in CBM and UCG), production/operation and decommissioning. The activities in each phase will be monitored and licensed by the DWS. Since each of these phases may involve impact to water, it infers that the DWS must manage within the ambit of National Water Act (1998). The DWS has developed separate regulations under NWA 1998 for the management and control of water for unconventional gas. NWA 1998 still applies in its entirety.

16. The exploration and testing (also appraisal and piloting) phases are experimental phases. Why does the DWS want to regulate this? These activities somehow interact with water resources through drilling of deep wells for economic viability testing, which may lead to pollution and therefore the DWS must oversee this. It is not meant as a hindrance to research but any research that can cause an impact to water resources must be seen by DWS. Companies are encouraged to engage with the DWS on How will water supply to towns be affected? Water supply resources are defined as no go areas and cannot be used for unconventional gas activities. Furthermore, impacts to these water supplies are to be analyzed at the water use licence application stage. It is also the reason why all phases are to undergo the water use licence process.

17. Do all exploration wells, even those that are not used for production, have to be recorded? Yes. This is due to the fact that these can become communication/ leakage points in the future as they age and therefore must be considered in future land use.

18. Why Water Use Licence? Water use without water use licence is Illegal in terms of the National Water Act (Act 36 of 1998) and it is punishable by law.

19. Which water uses under Section 21 will be used? All water uses may apply depending on a case by case basis (with the exception of 21d? And k? ). Unconventional gas has further been declared under Section 21e as a controlled activity.

20. Will permitted water under the 1956 Water Act be allowed to use for unconventional gas activities without applying for a water use licence? No. The activities are new and therefore fall under the 1998 Water Act.

21. What about the thermal spring areas? These are no go areas due to the nature of the up welling of waters which might serve as a decant point for pollution. Furthermore no go areas include water generating and storage areas across the country.

22. How will seismic activity impact my water resources? The seismic activity is regarded as being induced and not natural. These may produce fractures in the geology which may lead to water supply sources. These are therefore modeled at water use licensing stages in order to avoid natural fracture systems which could create a connection between water sources and the unconventional gas wells. Monitoring requirements at production and decommissioning will also be specified.

23. Will there be disposal wells? No. These are used for storage of untreated wastewater and will contribute to pollution spread as well increases in seismic activity which can create more fracturing in the geology if not precisely managed.

24. Will public wastewater treatment works (WWTW) be allowed to take the wastewater for treatment? WWTW do not have the technology for treatment of this type of industrial wastewater. This would be detrimental if then released into river systems.

25. How will river systems be affected? The potential for pollution is possible together with the accumulation of 'hazardous sediment', which can then release continually into rivers for some time thereafter, on the order of years. This can contribute to bioaccumulation issues. Another impact would be the increase and changes to the flow of river systems if return flow of treated wastewater occurs. This will change the characteristics of the river and will affect biotic and nutrients cycles.

26. Land subsidence is the sudden sinking or gradual downward settling of the ground's surface with little or no horizontal motion when large amounts of groundwater have been withdrawn from certain types of rocks, such as fine-grained sediments.

27. Is the DWS considering subsidence? Yes. Subsidence impacts to water in the landscape will be analyzed at water use licensing stages. Impacts are to monitored and controlled at all stages. This is especially true for underground coal gasification and coal bed methane which are closer to the surface and therefore the impacts are closer to the surface. Subsidence will further produce new fracturing systems and is therefore analyzed in terms of impact to water resources.

28. How will water supply in towns be affected? Pressures on water supply are expected due to the increased number of persons and subsequent activities.

29. How will the wastewater be managed? Wastewater must not be allowed to seep into water resources and would require to be treated by the Licensees.

30. What other activities will the DWS look into? Any activity that falls within the regulated areas.

31. Is the extent of horizontal wells being considered? Yes. This is in terms of these wells crossing underneath water supplies and water resources and the potential of leakage of new and ageing wells. The hydraulic fracturing process can impact on the well cement and therefore create leakage points.

32. What about issues of re-fracturing? These activities are to be analyzed in new impact assessments and must be submitted to the DWS for assessment.

33. What are the contact details for unconventional gas in the Department? unconventionalgas@dws.gov.za.

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