Author Archives: Jim E.

License vs Lease

Are exploration licenses and production leases of shale gas really separate things?

stanley_aug18Our government says not to worry about seismic testing, because it is only exploration.

NB’s Oil and Gas Act – 26(3), explains how to change from exploration to production:

 A license to search may be converted to a lease in its entirety at the end of the license term, if in the opinion of the Minister, all exploration commitments under the license have been met.  

What this means:  As long as a company spends the required amount during the phase of exploration, it is guaranteed a production lease.  There is no process in between. A license to explore becomes a lease to begin extraction.

 

Resource Link

Find out whether you live within a lease area with this interactive map:  http://geonb.snb.ca/ong/

 

Join the Crowd: Vote for a Moratorium

Hopewell Rocks

Here in New Brunswick, much of the expected shale gas extraction is around our biggest tourist attractions….including our own UNESCO Fundy Biosphere Reserve and the Hopewell Rocks.

But we are not alone in our desire to protect our treasured natural resources from an invasive industry.

Newfoundland has put a moratorium on shale gas exploration into effect, primarily over fears about effects on tourism around Gros Morne Park.
A resolution from the Union of Nova Scotia Municipalities supports a province-wide moratorium on hydraulic fracturing and calls for a dialogue about the practice of hydrofracking between First Nations, federal, provincial and municipal governments on potential impacts.
In the Prince Edward Island Legislature, on November 26th 2013, the Standing Committee on Agriculture, Environment, Energy and Forestry recommended a Moratorium on High Volume Hydraulic Fracking on PEI.
With existing moratoria in Quebec and New York, New Brunswick is now the only jurisdiction in our region pushing ahead with shale gas development.
Voters in the Colorado cities of Boulder, Fort Collins and Lafayette approved anti-fracking initiatives by wide margins in early November, despite an industrycampaign against the measures that cost at least $875,000.
Unifor, Canada’s largest private sector union (300,000 with 40,000 in the energy sector), called for a Canada-wide moratorium on all new oil and gas fracking. They have raised concerns about safety and environmental risks as well as the lack of
informed consent by First Nations about fracking activities on traditional lands.
Click here for our list of the New Brunswick municipalities and Provincial groups of all kinds that have called for a moratorium.

Jobs, Jobs, Jobs

The New Brunswick Government says it’s all about ‘Jobs-Jobs-Jobs.’

We think maybe not so many.

jobsA new study from independent, nonpartisan fiscal research groups in the six states comprising the Marcellus and Utica Shale formations in the US concludes that the shale gas industry’s effect on job growth was negligible.

“Shale drilling has made little difference in job growth in any of the six states we studied,” said Stephen Herzenberg, executive director of the Keystone Research Center in Pennsylvania. “We know this because we now have data on what happened, not what industry supporters hoped would happen.”

Report Highlights:

  • The number of shale jobs created is far below industry claims and remains a small share of overall employment.
  • Between 2005 and 2012, fewer than four new direct shale-related jobs have been created for each new well drilled, much less than estimates as high as 31 direct jobs per well in some industry-financed studies.
  • Industry-funded studies have used questionable assumptions in economic modeling to inflate the number of jobs created in related supply chain industries (indirect jobs) as well as those created by the spending of income earned from the industry or its suppliers (induced jobs).

(Note: The report on New Brunswick by Deloitte, which the government keeps quoting, predicts 21 jobs per well.

Why the exaggeration?

“Industry supporters have exaggerated the jobs impact in order to minimize, or avoid altogether, taxation, regulation and even careful examination of shale drilling,” said Frank Mauro, executive director of the Fiscal Policy Institute in New York.

Resource Links

Link #1 summarizes the report; Link#2  is the fiscal report itself; Link #3 is our own info sheet on jobs.

  1. http://ecowatch.com/2013/11/21/study-confirms-job-exaggerated-by-fracking-industry/
  2. http://www.multistateshale.org/
  3. NBASGA’s Info sheet on jobs