N.B. reviewing drilling laws

The New Brunswick government is reviewing a controversial drilling technique as concerns continue to be raised over its impact on water, Natural Resources Minister Bruce Northrup told a mining conference on Monday.

Northrup represents a southern New Brunswick riding where many Penobsquis residents believe drilling in the area caused their wells to dry up.

Northrup used the concerns of Penobsquis residents to underline his message to industry players that the province will be reviewing New Brunswick's regulations regarding the contentious technique called hydraulic fracturing, also known as hydro-fracking.

"It really hit home when I got elected in 2006, to see the frustration, and the anger on the faces of the people in the Penobquis area, I don't want to see that again," Northrup said.

"It was very time consuming and frustrating for people who live in that area. You can just imagine yourself, if you lost your water, it's almost like losing your power. You take it for granted and that's what we want to do and we're going to step up to the plate, and do it right."

The Progressive Conservatives promised in the election campaign to review the regulations and laws around mineral extraction.

"Our goal will be to better inform landowners when exploration is taking place on their property, and to protect their rights," Northrup said in a speech.

"This is important for both industry and the public. All of us want to see exploration and development done in an environmentally responsible fashion in order to ensure that we can gain the economic benefits possible for our province."

While the mining conference was being held in Fredericton, across the province in Norton, a group of residents were attempting to halt seismic testing from being performed near their houses.

The RCMP was called in to ask the residents to allow the trucks to continue working.

Several of the residents also cited their concerns over the future of their water as a reason for their protest.

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

Other opportunities

Apache Canada and Corridor Resources are using the technique in the Elgin area currently.

Those two companies have agreed to participate in a new phased environmental process that is being overseen by the New Brunswick government.

The new review process would require the companies get approvals at the beginning of a project, before drill sites are selected and at almost every step leading to commercial production.

The entire assessment process would be open to the public.

Apache Canada is finishing its first phase of drilling for gas and the company says if the results are good, it will start phase two next summer.

While Apache and Corridor Resources are already pushing ahead with hydro-fracking, other companies are eyeing New Brunswick as home forfuture projects.

Thomas Alexander, the New Brunswick general manager for SWN Resources Canada Inc., said his company has committed to invest $49 million into the province as a part of a three-year licence to search for oil and gas.

Alexander said that many people have welcomed the plans during public meetings because they see the economic payoff.

"We see this as a very significant potential for New Brunswick in terms of jobs, and royalty and tax revenue for the government," Alexander said.

"It can be a very, very good thing if we're successful in finding what we're looking for."

There have been calls from academics and people in the environmental community urging the New Brunswick government to use caution before allowing hydro-fracking to occur in the province.

New York state has imposed a two-year moratorium on the process, pending a future story.