Lawmakers in New Brunswick voted on Thursday to prohibit fracking in the eastern Canadian province, committing to study the controversial method of extracting oil and gas for one year before reconsidering the ban in 2016.
The province's Liberal-led government said it will require five conditions be met before the moratorium is lifted. These include beefed-up environmental and health regulations, a plan for waste water disposal, consultations with aboriginal groups, a royalty structure, and the establishment of a "social license," which is the approval by local communities and stakeholders.
"It is responsible and prudent to do our due diligence and get more information regarding hydraulic fracturing," said Energy and Mines Minister Donald Arseneault.
The province is the latest of several in eastern Canada, including Quebec, Labrador and Newfoundland, and Nova Scotia, to stop companies from fracking while they study its impact.
New Brunswick is believed to sit atop one of the thickest shale gas reservoirs in North America, although much of it is trapped in unconventional and hard-to-reach deposits.
Local environmental and indigenous groups worry hydraulic fracturing, or fracking, a method that involves pumping water, sand and chemicals deep into a well to extract oil or gas, could contaminate local water supplies.
Industry advocates say the technique is safe and boosting gas output will create jobs in New Brunswick, whose sluggish economy consistently ranks near the bottom of the Canadian provinces.
Questions about supply have dogged the progress of four export terminals proposed in New Brunswick and neighboring Nova Scotia, which plan to liquefy then ship North America's natural gas bounty to energy markets overseas.
"For anyone anticipating a domestic supply from New Brunswick, yeah, this is a major problem," said Michael Edwards, a New Brunswick-based energy consultant.
Recommended Reading
SilverBow Rejects Kimmeridge’s Latest Offer, ‘Sets the Record Straight’
2024-03-28 - In a letter to SilverBow shareholders, the E&P said Kimmeridge’s offer “substantially undervalues SilverBow” and that Kimmeridge’s own South Texas gas asset values are “overstated.”
SM Energy Declares Quarterly Cash Dividend
2024-03-26 - SM Energy’s dividend will be paid out on May 3 to stockholders on record as of April 19.
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
Par Pacific Asset-based Revolving Credit Bumped Up by 55%
2024-03-25 - The amendment increases Par Pacific Holdings’ existing asset-based revolving credit facility to $1.4 billion from $900 million.
California Resources Corp. Nominates Christian Kendall to Board of Directors
2024-03-21 - California Resources Corp. has nominated Christian Kendall, former president and CEO of Denbury, to serve on its board.