N.B. examines new oil drilling rules

The Department of Environment isconsidering a new environmental review process thatcouldbetter regulate natural gas drilling in New Brunswick.

Companies currently face few environmental assessment rules in New Brunswickuntil commercial production of gas gets underway.

It is only in recent years that energy companies have learned how to affordably extract natural gas from shale buried two kilometres underground.

The industry has started turning to hydraulic fracking, also known as hydro-fracking, to get at the oil and gas reserves. However, the process has proved to be controversial in New Brunswick and in other communities across North America.

The New Brunswick government is looking at ways to toughen its environmental standards, so it has asked Apache Canada and Corridor Resources to participate in a phased environmental approval process.

Paul Vanderlaan, a director in the Department of Environment, said the new processwould require approvals at the beginning of a project, before drill sites are selected and at almost every step leading to commercial production.

Vanderlaan said the entireassessment process would be open to the public.

"The public review process would be carried throughout the various phases of the project," Vanderlaan said.

Apache Canada and Corridor Resources are using the hydro-fracking process to see if there is enough natural gas near Sussex.

Corridor Resources announced in May that formerly abandoned wells could have more natural gas than is available in all of Western Canada's proven reserves.

Hydro-fracking is a process where companies pump a mixture of water, sand and chemicals into the ground, creating cracks in shale rock formations. That allows companies to extract natural gas from areas that would otherwise go untapped.

More experts needed

David Coon, the policy director of the Conservation Council, said environmental approvals should not be granted until the provincial government has people with the necessary background in deep shale gas extraction.

He said the new Progressive Conservative government must put some additional money into the environment department to monitor environmental assessments.

"Clearly shale gas development is brand new for the environment department. They don't have the necessary expertise there right now," Coon said.

Coon said the department should start hiring experienced people, possibly from provincial governments in Western Canada, to monitor the industry.

The call for more environmental monitors comes at a time when New Brunswick is staring at a $749-million deficit and the province's new finance minister has committed to upholding the party's commitment to balance the budget in four years.