The Facts

5 things to know about fracking

Origin’s exploration is supported by the rightful Traditional Owners

There are many different Traditional Owner groups in the Northern Territory. We work closely with the Northern Land Council to ensure we seek and maintain the support of the right Native Title holder family groups in the areas where we are working. We have the support of these family groups and they are optimistic about the opportunities this project brings to their community. We will continue to engage with them at each step of the project.

We apply a rigorous process to ensure we use best practice in our operations

We make sure we have the right approvals and support in place before we start our operations. We use world’s best standards to make sure land and water is protected, and we undertake thorough and respectful consultation with traditional owners and landholders. This includes speaking to the right people, explaining the details of our work program, and achieving sacred site clearances. 

We have strict conditions in place to ensure land and water is protected

We don’t start fracking until we know we have the right safeguards and controls in place. For example, we ensure the wells have multiple layers of steel and cement to separate them from the underground layers of rock. There’s also at least 1km of impenetrable rock between the shales being fracked and the aquifer sitting close to the surface. Independent monitoring starts before our work begins and continues throughout the project to ensure the area’s groundwater is protected.

Keeping emissions to a minimum is a priority

We operate as efficiently and safely as we can when producing gas to safeguard the environment and avoid wastage. We are currently in the exploration phase, which means we haven’t yet decided if we will move to production. If we do, we will need to do more planning and scoping work to determine the scale of the project and any potential emissions. Our work is all subject to government environmental approval processes. 

Water use is kept to a minimum

We conserve water use as much as we can by recycling and reusing water across our wells during the drilling and fracking process. We must carefully manage our water use and operate under a regulated water allocation plan. We must also gain a water extraction licence as part of our approval process. This ensures water is extracted within the parameters of the sustainable yield for the local aquifer.  Cattle and agriculture currently uses around 6% of the sustainable yield. In a future development scenario, at most, our water use would increase that percentage by 1%.

Get the facts about hydraulic fracture stimulation (fracking)

Fracking has been undertaken safely in the Northern Territory for more than 40 years but the processes are often misrepresented and misunderstood.

Frequently asked questions

How do you decide who are the rightful Traditional Owners to consult with?

We rely on the advice and guidance of the Northern Land Council in the Northern Territory – the statutory representative body for advising who the rightful Native Title holders are in the areas where we are exploring. 

Since becoming operator of our Beetaloo Basin exploration permits in 2014, we have held ongoing conversations to discuss work plans, timing and discuss shared benefits.

What do you do to protect sacred sites?

We work closely and transparently with the Northern Land Council to ensure sacred sites are protected. This includes sharing our work program plans a year in advance and allowing discussions to occur over time. 

This also allows important activity, such as sacred site clearances to be undertaken and certified by law – this is part of the NT Aboriginal Sacred Site Act. This process is followed very closely each year, to complete these clearances and surveys for current exploration areas. 

What is the process for maintaining Traditional Owner support?

We work closely with the Traditional Owners and Native Title holders and claimants in the areas where we are working. This includes sharing factual, scientifically-based information that is directly relevant to the geology and geography of the area and activity underway. We share our annual work programs well before we start work and take part in on-country meetings with the Northern Land Council (NLC) and the Native Title holders and claimants. We give our work program plans to the NLC up to a year in advance so there is adequate time to engage with the right Native Title holders and claimants and for discussions to occur over time. This also allows time to complete important activities like sacred site avoidance and clearance surveys and to certify these under the Northern Territory Aboriginal Sacred Site Act. 

Is the area’s groundwater safe from the effects of fracking?

Yes. We have many controls and safeguards in place when we drill a well and if we don't frack until they are in place. There are multiple layers of steel and cement separating the well from the underground layers of rock.

There is also at least 1km of inpenetrable rock between the rock being fracked and the aquifer sitting close to the surface.

We also had independently verified groundwater monitoring put in place before we started our exploration work. This is ongoing.

Are the chemicals used in fracking dangerous to humans and animals?

No. Water and sand make up about 98 – 99% of the mix. The rest are common additives. This includes guar gum to thicken the mix, caustic soda and acetic acid (vinegar) to balance the water, potassium chloride (salts) to prevent drilling equipment from getting stuck and enzymes (similar to what is in washing powder) to break it down and ensure what’s being pumped back to the surface can be disposed of appropriately. 

Similar to how you use these chemicals at home — diluted or in small percentages — is no different to the way they are used in fracking.

What about fugitive emissions?

Predicting emissions at the early exploration stage of a project is difficult and usually far from accurate. This is because the scale of the resource, or how it might be accessed in a production scenario is yet to be determined.

The emissions profile of a project will be determined by the design of the future pipeline and infrastructure. The first meaningful estimation can only be made when the environmental impact statement is prepared, when the calculations are based on a greater understanding of the resource, and how it is likely to be produced.

Is fracking during the wet season a greater risk to waste storage and is this contrary to the recommendations of the Pepper Inquiry?

No. We have strict safeguards in place to ensure land and water is protected. Each wellsite location has been weather-proofed to ensure we can operate safely in all seasons and our operating controls and equipment ensure we can accommodate a 1 in 1,000-year rainfall event.   

Doesn't fracking use a lot of water?

We conserve water use as much as we can by recycling and reusing water across our wells during the drilling and fracking process. We must carefully manage our water use and operate under a regulated water allocation plan. We must also gain a water extraction licence as part of our approval process. This ensures water is extracted within the parameters of the sustainable yield for the local aquifer.  Cattle and agriculture currently uses around 6% of the sustainable yield. In a future development scenario, at most, our water use would increase that percentage by 1%.

How does Origin’s planned reduction in coal meet the Paris climate agreement?

We agree that climate change is a key global challenge and Origin was the first Australian company to sign up to a science-based emissions reduction target to halve our direct emissions by 2032. Origin will exit coal by 2032, while wind, solar and storage will represent 25% or more of our generation by 2020. Gas is playing an important part in our transition to lower emissions.

Will fracking harm land and poison water?

Protecting water and the environment is at the heart of almost every conversation about fracking. Natural geological and engineered barriers exist, and we put multiple controls in place to protect water and the environment when we drill a well. If there’s a concern with any of these safeguards and protections, we don’t frack. Fracking has also been occurring in the Northern Territory for over 40 years, and water has always been protected. This is because disciplined and safe operating systems and processes are in place, assessed and approved by the relevant government agencies.

Why did horizontal drilling stop on the Kyalla well?

We chose to stop part way through drilling a horizontal section of the well because it wasn’t meeting the specifications we needed to adequately complete drilling, undertake fracking and then do a good test of the well’s potential.

The vertical section of the well is safe and the steel and concrete barriers protecting groundwater and the environment remain in place. The partially drilled horizontal hole will now be plugged with engineered cement, as we are required to do under regulations. 

We will now drill another horizontal section from the vertical well – this is not an uncommon step and poses no additional risks.

We’ve advised the regulator and will ensure we continue to comply with our environmental management plans, which were approved in August 2019.

You can hear more about this decision in an interview Origin's  Growth Assets and Beetaloo General Manager Tracey Boyes gave to ABC Outback NT shortly following the announcement.

 

Resources