News & insights
Does Fracking Pose a Risk to Your Commercial Property Interests?
Hydraulic
fracturing (also known as ‘fracking’) is nothing new in the UK; indeed, it has
been used actively in North Sea oil and gas wells since the 1970s. The
more recent phenomenon and one that has garnered a great deal of negative press
and controversy is the extraction of shale gas using fracking techniques, which
could adversely impact surrounding land and properties.
Fracking is a method used by oil and gas extraction companies whereby a
borehole is drilled into rock deep beneath the ground and then injected with a
high-pressure liquid (water mixed with chemicals and sand) to cause small
fractures through which oil or gas can escape.
How
widespread is fracking in the UK?
Onshore shale rock fracking in the UK is still in its infancy, especially when
compared to the activity underway in the United States. At present, there
is only one active high-volume hydraulic fracturing operation located at
Preston New Road in Lancashire. The site, run by oil and gas company,
Cuadrilla, was opened in 2016 and has, despite several setbacks including minor
earthquakes assumed to be caused by the fracking process, been successful in
recovering shale gas. The current programme of appraisal extraction by
Cuadrilla from a well-known as ‘PNR2’, has government permission
(in the form of a hydraulic fracture plan) to continue to November 2019.
In addition to the site in Preston, a small number of grants for fracking
exploration have been issued in Yorkshire, Derbyshire, and West Sussex.
Despite fracking activity to date, recent research by the University of
Nottingham and the British Geological Survey on new ways to estimate the amount
of gas and oil contained within shale, suggests that UK shale reserves may be smaller than
expected. Instead of 50 years of gas, surveys show there may
be more like five to seven years at the current rate of consumption.
Whether this insight will limit the extent of ongoing fracking activity in the
UK remains to be seen.
What
are the risks of fracking?
There are recognised potential environmental and economic concerns raised in
relation to fracking which may have connotations for local communities,
landowners, and developers. From an environmental standpoint, specific
concerns include possible seismic activity, pollution of groundwater reserves,
reduced air quality, and increased noise and traffic due to fracking
operations.
Earth tremors
Earth tremors near the Cuadrilla site in Preston New Road, of which there have
been over 120 in
2019 alone, have featured heavily in the media, with the largest
measuring 2.9 ML (on the Richter scale) on 26 August 2019. This was not
an insubstantial tremor given the government’s current limit on seismic
activity is set at 0.5ML (at which point fracking must be stopped for 18
hours). Furthermore, this threshold
may be raised in the future).
Groundwater
pollution
While geologists and exploration companies endeavour to mitigate the
contamination of groundwater supplies with fracking water, a risk
remains. Holes drilled closely to underground aquifers (water-bearing
rocks) which are ruptured and left unsealed can lead to contamination of
groundwater. It is also possible fracking water may rise, causing surface
water contamination. According to Dr Rob Ward at the British
Geological Society, the risk to ground and surface water is well
known; hence, there are
strict regulations and control measures in the UK to prevent this
occurrence.
Radiation in fracking flow-back water
The high-pressure fluid used in fracking dissolves organic matter within rock,
leading to the resurfacing of flow-back water. This dissolved flow-back
water contains naturally occurring radioactive material (NORM), including
potassium (K) and radium (Ra). Because of these risks, water must be
monitored for radiation and harmful substances to reduce any impact on human
and environmental health (although according to research
by Durham University, the risk to humans is minute).
Protecting your commercial interests
Areas such as the
Bowland Basin in the North of England (mainly Lancashire and Yorkshire) and
Wales, are believed to hold vast reserves of shale oil and gas and are
therefore ripe for further fracking projects.
Understandably commercial developers, landowners, and tenants in the vicinity
of potential fracking sites may be concerned about the impact on their
investment and employee health.
While we are yet to see to what extent fracking gains a hold in the UK, and the
real impacts of this form of energy extraction on nearby commercial land or
property, it remains vital to undertake proper fracking-related due
diligence. To this end, searches can be carried out on existing ground
risks (i.e. mining, radon and fracking), in addition to the precariousness
associated with existing or proposed energy extraction, large-scale
infrastructure, and contaminated land. Ultimately, while the risks are likely
low, it is best to thoroughly research any planned or current fracking-related
activity which may have an impact on your commercial property venture.
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experts” for good reason. We are not only a search supplier, but we also are a
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We understand complexity and take the time to support you with issues that may
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