France: Publication of New Decree creating the Shale Oil and Gas Commission
As energy prices and security of supply continue to dominate the headlines, there is increasing recognition of the role that shale gas can play in today’s energy mix. At the same time, shale gas attracts controversy. There is concern, for example, regarding the environmental impact of shale gas activities. In this briefing we explore the view from the ground in France and the impact of the recent Decree.
Publication of New Decree creating the Shale oil and gas Commission
On 21 March 2012, the Decree n°2012-385 concerning the “National Commission of Orientation and Following Evaluation of Shale oil and gas Exploration Techniques and Operations” was published. The Commission created by the Decree will be consulted on:
• the conditions for the implementation of Hydraulic Fracturing research projects
• regulatory projects aimed at managing risks and protecting the environment during the experimentation of new techniques to operate on shale oil and gas
• the annual report on shale oil and gas activities both at national and international levels.
The Commission will comprise 5 State representatives, 3 territorial representatives, one MP and one Senator. In addition, 3 NGOs representatives, 3 representatives of the industry, 3 representatives of the industry’s employees, and 3 personalities designated with regard to their scientific competencies will be appointed for 3 year terms by the Ministry of Environment. Meetings will be organized at least twice a year. This is an important step to potentially develop the activities in the future and review the situation and potential in France.
Publication of a complementary report in France
A final report on shale oil & gas ordered by the government was also finally published by the CGIET, the General Council of Industry, Energy and Technologies (a department of the ministry of economy, responsible for the field of energy, mining resources and use of sub-soil). The report recommends hydraulic fracturing experiments. It notes that UFIP (Union Française des Industries Pétrolières), a trade union dedicated to oil activities in France, is ready to participate in experiments with research groups if asked to do so. The report also states the possibility for a volunteer operator to organize experiments on its own permit and according to a predetermined framework. It is intended to “improve the knowledge of shale oil in the Paris Basin where the geology is easy and water issues can be managed with different ways”. The phasing-in of such experiments is also proposed in this report.
Comment
The publication of this Decree has received wide national press coverage with varying opinions. The Decree could have a wider impact in Europe and the US especially to those international operators and suppliers looking to explore Shale reserves in France. The annual report will also provide potentially useful data on hydraulic fracturing within Europe and the US.
Elizabeth Shepherd is Partner & Head of Environment at international law firm Eversheds, specialising in environmental law. She and her team are experienced in advising on existing and incoming environmental legislation, often on a multi-jurisdictional basis, where an understanding of the legislative and political climate in the EU as well as individual Member States is key. Elizabeth can be reached at Tel: 0845 497 8215 (Intl: +44 121 232 8215) elizabethshepherd@eversheds.com.
Boris Martor is a partner responsible for our projects group at Eversheds Paris. He advises on legal aspects of projects in Europe and Africa, especially in the energy, transport, telecommunication and sectors. Borsi can be reached at Tel: +33 1 55 73 41 53 borismartor@eversheds.com
Related Reading: France Set to Revisit Fracturing, Shale Debate