Petroleum producers call on New Brunswick to hold off on fracking moratorium

The Canadian Association of Petroleum Producers (CAPP) is urging the New Brunswick government to reconsider its decision Thursday to move forward with prohibiting hydraulic fracturing in the province.

CAPP is calling on the provincial government to hold off on the proposed moratorium and to work with industry and communities to keep the door open for future natural gas development in New Brunswick, notes a statement from the association, which represents companies that explore for, develop and produce natural gas and crude oil throughout Canada.

Citing its commitment to New Brunswickers, a provincial government statement Thursday announced the government is bringing forward legislation to proceed with a moratorium on hydraulic fracturing activity, by any means, in the province.

Energy and mines minister Donald Arseneault will introduce an amendment to the Oil and Natural Gas Act that will allow the government to prohibit hydraulic fracturing activity. The moratorium is a temporary cessation and prohibition of all types of hydraulic fracturing and will take effect when amendments to the act are proclaimed in the legislative assembly.

“We have been clear from day one that we will impose a moratorium until risks to the environment, health and water are understood,” Premier Brian Gallant says in the statement.

The moratorium will not be lifted unless more information is gathered and certain conditions are addressed. Specifically, it will remain in effect unless there is:

• a social licence in place, which will be sought through extensive consultation and engagement exercises with New Brunswickers to achieve social acceptance;
• clear and credible information about the impacts of hydraulic fracturing on health, environment and water, allowing for the development of a country-leading regulatory regime with sufficient enforcement capabilities;
• an infrastructure plan that mitigates the impacts on public assets and that addresses issues such as waste water disposal;
• a process in place to respect obligations under the duty to consult with First Nations; and
• a mechanism in place to ensure that benefits are maximized for New Brunswickers, including the development of a proper royalty structure.

Noting that the natural gas industry is committed to the safe, responsible and sustainable development of New Brunswick’s natural resources, CAPP president Tim McMillan says in the association statement that industry believes it can work with the provincial government to achieve its five conditions and, as such, legislation is unnecessary. “If the government wants to grow the economy, create jobs and encourage investment, it is now at risk of doing the opposite through legislation,” McMillan suggests.

Canada is recognized as a leader in developing natural gas from shale and hydraulic fracturing has been used safely for more than 60 years in Western Canada, CAPP reports. “We encourage the government of New Brunswick to learn from experiences in other jurisdictions that are benefitting from hydraulic fracturing and help create at home the same economic opportunities natural gas development has created across Canada,” McMillan adds.

“A moratorium will deprive New Brunswick of secure, reliable and affordable domestic natural gas at a time when demand for this resource is growing and offshore natural gas supplies are projected to decline,” he argues, adding the province will have to import natural gas.

“Creating jobs is our government’s top priority, but we need to do this in a responsible and sustainable way,” Gallant says.

“We are not interested in putting all our eggs in a single basket, so we are actively and diligently pursuing several job creation opportunities for our province,” Arseneault says. “We will continue to take a safe and responsible approach to energy and natural resources opportunities while diversifying New Brunswick’s economy,” the minister adds.

There is currently a moratorium on fracking in Quebec, and in Newfoundland and Labrador, while an onshore ban is in place in Nova Scotia, notes a provincial government backgrounder.