Shale Gas Investment Guide Vol. 1

Page 53

THE BP OIL SPILL IN THE GULF OF MEXICO DID TWO THINGS. FOR ONE, IT PUT THE ENERGY MAJOR IN THE HOT SPOT, AS VIDEO SHOWING THE LEAKING WELL WAS BROADCAST. FOR TWO, IT PUT WORKER SAFETY AT THE FOREFRONT OF ISSUES THE INDUSTRY NEEDS TO ADDRESS. EUROPEANS WATCHED AS the BP oil spill in the Gulf of Mexico unfolded. They’re likely to pay close attention to how shale drilling develops in their own countries. In Europe, safety restrictions tend to be more extensive. For instance, safety valves on wells and mandatory casing programs are required by law. But in Poland, safety is not top priority. International companies whose activities fall under close scrutiny by regulators in their home country or whose corporate culture is risk averse will likely put worker safety first. The industry, collectively, could take action. Here’s a few areas to look into:

2. LAND ACQUISITION AND PERMITTING IN POLAND, MINERAL RIGHTS ARE OWNED BY THE STATE, BUT OPERATORS WHO WISH TO EXPLORE, EVALUATE AND PRODUCE SHALE GAS STILL NEED TO ENGAGE THE OWNER OF THE LAND TO GAIN ACCESS. LACKING A DIRECT royalty stake, owners may be less inclined to allow drilling on their land. They may block access altogether, especially for roads or pipelines from which they might receive no benefit and in some cases even hardship. These challenges make landman services - or securing an operator’s logistical and legal access to land in the concession blocks - an area ripe for innovation. Jakub Kostecki, New Gas Contracting, works to secure that access for both operators and vendors. He says that operators and their partners are cautious about stepping on owners’ toes. “It is a delicate subject matter and one that requires lots of direct contact,” Mr. Kostecki says.

Installation of fixed stairs and ladders. Eye and face protection, gloves, respiratory protection. Providing site sanitation for workers. Ensuring flammable materials are kept separate. Personal fall arrest systems. Protecting workers from noise and dust emissions. On-site space for welding, cutting and brazing. And lastly, stand-by medical services, first aid on site, and a dedicated health officer to look after the crew.

I N N O VAT I O N

3. SAFETY & WORKER HEALTH

SOURCE: KASIA SNYDER

Some operators are so careful that they have even requested the term natural gas be used instead of shale gas in order to ease owners into discussions about operating near their homes and farms. Working under confidentiality, his team seeks to negotiate the most favorable terms for operators. “The last thing we want to do is to stir a foul sentiment in the community. If one owner doesn’t let us in, we move on and try to negotiate with others,” Mr. Kostecki adds. On the operator’s side the chain of command goes through the local country manager to his supervisor and then to an office in Texas, Calgary, Aberdeen or someplace else. There may be several people who have to sign off on decisions. The whole process can be time consuming because it involves multiple parties and multiple steps. The same holds true for the local powiat or gmina, where a clerk, a supervisory and the office head are often involved in signing paperwork. This multi-tiered process, according to Mr. Kostecki, has made many operators and vendors apprehensive about land acquisition and permitting issues. “That’s why it’s important to jump-start the land process, whether it’s for well-site work or seismic acquisition, as soon as possible so that problems don’t pile up.” As production scales and land access issues grow more challenging land acquisition is an area ripe for innovation. Florence Gény points to land access as one of the two biggest hurdles operators will face. “Accessing land surfaces is one of the two biggest challenges, together with higher costs,” Ms. Gény writes.

WWW.CLEANTECHPOLAND.COM

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