buru seeks approvals for new round of fracking

Buru Energy is planning to use the controversial process of fracking in five gas wells between Broome and Derby.
In an announcement to the Stock Exchange this month, the petroleum exploration company say they have "approvals underway" for a fracking program with "five wells ready for fracs". In a statement to ABC Kimberley, Buru Energy's Executive Director Eric Streitberg says the fracking program will be conducted on wells drilled into the Laurel Formation which is a geological formation within the massive Canning Basin.
Independent estimates put Buru's recoverable gas resources from the Laurel Formation at 47 trillion cubic feet. While this is around three times as much gas as is estimated to be in Woodside's Browse interests, unlike the Browse Basin, the majority of gas in the Canning Basin is tight or unconventional gas which will require hydraulic fracturing (fracking) of rock to extract the resource.
Mr Streitberg also confirmed that the "approvals underway" announced to the Australian Stock Exchange for the fracking program are not approvals required from the Department of Mines and Petroleum (DMP), but refers to approvals from their joint venture partner, the Japanese company Mitsubishi Corporation.
"Once we have the technical and operational aspects of a program agreed by the joint venture, and we are agreed on what we would like the program to achieve, we will undertake a consultation process with all stakeholders, and also submit the proposals to the DMP for their review and assessment." Mr Streitberg said.
Buru Energy hasn't used hydraulic fracturing in the Kimberley since 2010 when they fracked their Yulleroo2 Well near the Great Northern Highway between Broome and Derby. The process involved pumping two million litres of water, with about 12,000 litres of chemicals and 45 tonnes of particles at high pressure into the rocks three kilometres under the ground. Unlike coal seam gas on Australia's east coast, the aim of the fracking program was to crack rocks such as sandstone and shale rather than coal, to release tight and shale gas.
Buru's 2010 fracking program took place on the traditional country of the Yawuru people of Broome and surrounds. Following this fracking program, Yawuru Chairman Patrick Dodson said that Yawuru people are opposed to fracking on Yawuru country until they can be satisfied that it doesn't pose a risk. It's a position that remains unchanged.
"We've made it clear to Buru and the public at large as well as the state that we're not in support of fracking until we can be convinced beyond doubt that the consequences of that are safe" Mr Dodson says.
And it's a similar situation with other traditional owners of neighbouring country overlying Buru Energy's extensive interests in the Laurel Formation. The Aboriginal Charitable Trust KRED Enterprises is negotiating with Buru Energy on behalf of traditional owners other than Yawuru people. The trust's CEO, Wayne Bergmann, says traditional owners have trepidations about fracking
"Traditional owners are extremely concerned about fracking and have asked for a veto over the process." says Mr Bergmann.
But with fracking essential to extracting most Canning Basin gas, an Indigenous veto would seem highly unlikely. Mr Dodson acknowledges that traditional owners do not have legal power to influence fracking in the Kimberley.
"We don't have the capacity to stop these things from happening, but we do have a responsibility to make sure our people are given the best opportunity to make free, prior and informed consent over proposals on their land."
The Natural Gas Agreement Bill currently before State Parliament formalises an agreement between the Barnett Government and Buru Energy to build a pipeline from the Canning Basin to the Pilbara. Here it can tie into the Dampier to Bunbury pipeline bringing Canning Basin gas to both the domestic market in the South West and export facilities in the North West. The Bill also requires Buru to continue to investigate gas reserves in time for a 2016 final investment decision on the construction of the pipeline and associated infrastructure.
Environmentalists say this agreement is setting up a similar scenario to that around the James Price Point LNG proposal in which they say environmental assessments and community consultation take a second place to commercial considerations. The Conservation Council of Western Australia's Climate and Energy Program Manager, Jamie Hanson says the Kimberley environment is being put at risk.
"Shale gas fracking is a highly risky technology in which chemical cocktails are pumped at high pressures into gas bearing rock in order to crack them and release trapped gas. The process comes with severe risks to human health, groundwater, and the environment." he said.
Buru Energy's Eric Streitberg rejects this assessment.
"I would also confirm that any planned fracs will be subject to a comprehensive and transparent consultation and approval process before they are undertaken." says Mr Streitberg
It would seem that even if traditional owner consent for fracking is not forthcoming then Buru Energy will have to proceed to meet their deadline with the State Government. It could be the beginning of a new fight over Kimberley gas involving familiar players: environmentalists, traditional owners, the petroleum industry and the WA State Government.
http://www.abc.net.au/local/stories/2013/05/16/3760553.htm