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Investigating Groundwater Governance Arrangements for Unconventional Gas Exploration and Production in Main Karoo Basin, South Africa

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Investigating Groundwater Governance Arrangements for Unconventional Gas Exploration and Production in Main Karoo Basin, South Africa Faculty of Science Department of Earth Science Environmental and Water Science Investigating groundwater governance arrangements for unconventional gas exploration and production in main Karoo Basin, South Africa A thesis submitted in fulfilment of the requirements for the degree of Magister Scientae in the Department of Earth Sciences, University of the Western Cape, Bellville By Athenkosi Matshini Supervisor: Dr Thokozani Kanyerere Co-supervisor: Dr Kevin Claude Pietersen March 2016 i DECLARATION I declare that “Investigating groundwater governance arrangements for unconventional gas exploration and production in the main Karoo Basin, South Africa” is my work, that it has not been submitted before for any degree or examination in any other university, and that all sources I have used or quoted have been indicated and acknowledged as complete references. Athenkosi Matshini March 2016 …………………………………………. ii http://etd.uwc.ac.za/ This thesis is dedicated to my late mother Lindiswa Eunice Matshini, my late grandparents Mr. Johnson ‘Skhoma’ Matshini and Mrs. Nomphumelelo Lydia Matshini iii http://etd.uwc.ac.za/ Investigating groundwater governance arrangements for unconventional gas exploration and production in the main Karoo Basin, South Africa A Matshini KEY WORDS Groundwater governance Shale gas Hydraulic fracturing Stray-gas migration Flowback and produced water Water management institutions Analytical framework South-western Karoo iv http://etd.uwc.ac.za/ ABSTRACT South Africa relies on coal and imported crude oil for most of its energy. The possible production of shale gas in the main Karoo Basin of South Africa provides a potential opportunity to diversify the primary energy mix. However, shale gas exploration and production is associated with environmental impacts that include potential groundwater contamination. Protecting groundwater resources involves an effective governance regime in place to regulate such risks on groundwater resources. This study made use of a qualitative approach to investigate groundwater governance arrangements in relation to the proposed shale gas development. Further, the study developed and used an analytical framework to assess groundwater governance provisions and capacity at local level for shale gas development. The following potential risks to groundwater from shale gas developments were identified – contamination of groundwater resources from fugitive gas (methane) originating from shale formation (i.e. stray gas migration), leakage from poorly constructed well casings and abandoned oil and gas wells. Plausible groundwater – gas interaction scenarios from the identified risks include migration through dolerite dykes, sills, natural fracture network and poor construction of well casing, abandoned oil and gas wells. However, the targeted shales for shale gas development in the Karoo is located at depths between ~4000 m southwest and ~5000 m southeast, therefore natural migration of methane from these depths is highly unlikely. Migration of methane gas to shallow aquifers in the south- western Karoo Basin will impact on water use, groundwater dependent aquifers and aquifer sustainability as groundwater is the most vital source of fresh water in the area. The developed analytical framework for assessing government provisions and capacity shows that local groundwater institutions within the south-western Karoo v http://etd.uwc.ac.za/ Basin lacks the knowledge and understanding of risks associated with shale gas on groundwater resources. Current water use license conditions and requirements are inadequate as they do not address shale gas development directly. This includes discharge policy, water use management, disposal of flow-back and produced water. Also, there are no mitigation measures in place to prevent pollution of groundwater resources from shale gas development. This study recommends a goal-based regulation approach rather than a prescriptive approach, as the shale gas environment is considered innovative with new technologies being developed daily to minimize its impacts on the environment. A goal-based regulatory regime will enable review of license conditions, adaptation to new technology and promote innovation while protection groundwater resources. vi http://etd.uwc.ac.za/ ACKNOWLEDGEMENTS Perusing my Master degree has taught me that we do not exist in isolation and that Umntu ngumntu ngabantu “a person is a person because of people.” I would like to express my gratitude to the people who supported me academically and financially; my family, friends and staff of the Department of Earth Sciences in general and my mentors and supervisors Drs Kevin Pietersen and Thokozani Kanyerere in particular. Above all God almighty, without whom none of this would have been possible. The author, further, acknowledges the Water Research Commission for providing research and financial support. This study benefited from a workshop which was held on the 3rd – 4th of July 2014 at the University of the Western Cape. The author would like to thank all stakeholders that attended the workshop and participated in the interview processes. My sincere gratitude goes to my family, friends, colleagues for all the love and support. A special thanks to the Matshini family for believing in me and always supporting my decision to further my studies. vii http://etd.uwc.ac.za/ TABLE OF CONTENTS Declaration ............................................................................................................. ii Key words ............................................................................................................. iv Abstract .................................................................................................................. v Acknowledgements .............................................................................................. vii Table of Contents ............................................................................................... viii List of Figures ........................................................................................................ x List of Tables ........................................................................................................ xi List of Boxes .......................................................................................................... xi 1. Introduction ................................................................................................ 1 1.1. Rationale for Research ................................................................................. 1 1.2. Problem statement ........................................................................................ 3 1.3. Research Questions ...................................................................................... 3 1.4. Research objectives ...................................................................................... 4 1.4.1. Main Objective ......................................................................................... 4 1.4.2. Specific Objectives ................................................................................... 4 1.5. Thesis outline ............................................................................................... 4 2. Literature Review....................................................................................... 6 2.1. Introduction .................................................................................................. 6 2.2. Global Shale Gas Status ............................................................................... 7 2.2.1. Shale characteristics ................................................................................ 7 2.2.2. United States of America .......................................................................... 9 2.2.3. Australia ................................................................................................. 11 2.2.4. Canada ................................................................................................... 12 2.3. Hydraulic fracturing process ...................................................................... 15 2.4. The Karoo Shale gas play .......................................................................... 19 2.5. Groundwater Governance .......................................................................... 21 2.5.1. International perspective on groundwater related regulations on shale gas 26 2.5.2. Groundwater Governance in South Africa) ........................................... 27 2.6. Conclusion ................................................................................................. 31 viii http://etd.uwc.ac.za/ 3. Research design and Methodology ......................................................... 33 3.1. Introduction ................................................................................................ 33 3.2. Research Design ......................................................................................... 33 3.3. Sampling .................................................................................................... 34 3.4. Study Area .................................................................................................. 36 3.4.1. Geology of the Karoo Basin ................................................................... 36 3.4.2. Climate (rainfall, temperature) .............................................................. 41 3.4.3. Surface water .........................................................................................
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