“Europe is Over-Regulated”
So said Tomasz Chmal at the 2011 Shale Gas Environmental Summit in London. Chmal – a partner at White & Case in Poland – delivered his presentation on the legal challenges faced in shale gas exploration in Europe from a wholly Polish perspective.
The lawyer – an expert in the oil and gas industry – gave a unique insight into the Polish shale gas landscape and applied the experiences and lessons learned from his country’s “shale rush” to possible regulatory considerations elsewhere in Europe.
“Since we are a gas producing country, we have a stable regulatory framework and we have a very low entry level for overseas investors to come to Poland and invest in our concessions,” he said.
“However, this being said, the EU policy on shale gas is difficult to understand and it creates a threat to the industry, particularly in the instance of France’s moratorium which hasn’t been very well received over in Poland.”
He does see a lot of challenges in Poland, but these are more external that internal.
“The first is the French parliament banning hydraulic fracking and then commissioner Oettinger talking about standardisation,” said Chmal.
“We then have Mr. Joe Leinen calling for an Energy Quality Directive and his discussions about shale gas being stringently regulated. There was also a report for the Committee for Environment Public Health and Food Safety prepared by Ludwik Stiftung, which in our opinion is not the best report given his alliance with the renewable industry.”
Chmal then explained the similarities between both conventional and shale gas drilling campaigns and why there are discrepancies in the arguments of those that oppose one, but not the other.
“For example, over 7,000 Polish conventional wells have been drilled with no noted water contamination.”
Additionally, Polish analysis of US fracking campaigns suggests that there is an absolute minimal impact on the environment and that water contamination is almost impossible when wells are drilled to almost 4000 metres, with water aquifers only present at around 200 metres.
“I would therefore say that if someone in Europe should oppose shale gas they should think twice and should consider how this is different to any other gas production elsewhere.”
By looking at the environmental regulatory framework already in place - including some 11 such EU directives applied to shale drilling campaigns – Chmal said that in his opinion and to many in the gas industry, this was sufficient enough without additions.
“I would say that this is over-regulated now, but if we are talking about further regulations it is completely unreasonable.”
In his final summary, Chmal posed a few parting questions. The most pertinent of those was: Does Europe need more regulation and if so, why?
He then likened the European shale regulatory landscape to that of Lady Godiva who, according to legend, rode naked through the streets of Coventry in order to gain a remission of the oppressive taxation imposed by her husband on his tenants.
“I couldn’t get Parliament to outlaw Lady Godiva, but they agreed to regulate her,” he concluded.