1 1 Dr Jan Wright Parliamentary Commissioner for the Environment 10 December 2012 Strategic issues facing New Zealand and overview of report on fracking

2 2

3 The big strategic issue – climate Energy… Renewability is not the issue. Carbon footprint is the issue.

4 Investigations into energy Smart meters Biofuels Lignite Hydroelectricity or wild rivers? Solar water heating Fracking

5 The strategic issue for conservation Mining on the conservation estate? Pests – plants and animals

6 Pests - the big conservation issue

7 Water quality 7

8 Evaluating the environmental impacts of fracking in New Zealand: An interim report

9 What is fracking? Hydraulic fracturing 9 Using pressurised liquid to crack rock

10 Porous and permeablePorous, but not permeable

11 Rock Layer Fresh water Rock Layer Gas, oil and brine Rock Layer Salty water

12 Fracking in New Zealand Tight sands in Taranaki Coal seam gas Shale in east of the North Island

13 A well from birth to death Choosing where to drill Establishing the well site Drilling and constructing the well Fracking the well Flowback and transition into production Dealing with waste Abandonment

14 Choosing where to drill

15 Establishing the well site

16 Drilling and constructing the well

17 Fracking the well

18 Flowback and transition to production

19 Disposing of waste

20 Ending production and abandoning the well

21 A well from birth to death Choosing where to drill Establishing the well site Drilling and constructing the well Fracking the well Flowback and transition into production Dealing with waste Abandonment

22 Earthquakes Fracking itself – tiny Fracking fluid into active fault Reinjected wastewater into active fault

23 Water contamination Spills and leaks on surface Well failure Migration

24 Four things to get right 1.Choose the well site carefully 2.Design and construct wells to prevent leaks 3.Prevent spills and leaks on the surface 4.Store and dispose of waste with care

25 1 Watch where you drill 25 Active faults

26 2 Well integrity Rock Layer Fresh water Rock Layer Gas, oil and brine Rock Layer Salty water

27 3 Spills & leaks on the surface

28 4 Disposing of waste

29 Fracking and climate change? Is gas from fracking a bridge to a low carbon future? On the one hand – better than coal On the other hand – worse than renewables

30 Fracking better than coal

31 Lignite and NZ’s Copenhagen commitment

32 Lignite and NZ’s Copenhagen commitment

33 Fracking worse than renewables

34 More gas use?

35 Government oversight and regulation Complexity and accountability ‘Light-handed’ regulation A ‘social licence’ to operate 35

36 The environmental risks associated with fracking can be managed effectively provided: “operational best practices are implemented and enforced through regulation” UK Royal Society (2012) 36 Interim conclusion

37 Questions about the future

38 Thank you 38