This client briefing is a collaboration with US Law Firm Fulbright & Jaworski L.L.P1
The recent explosion of interest in the use of hydraulic fracturing as a method of sourcing natural gas and oil presents a conundrum for governments around the world. On the one hand their citizens consume ever increasing quantities of energy, however many are also strongly opposed the development of energy resources.
Hydraulic fracturing is the practice of acquiring oil and gas from shales. In nations where shale resources appear abundant, governments strive to strike a balance between the benefits of hydraulic facturing - jobs, increased public revenue, lower-cost energy, and energy security - and public concerns that the process may pose risks to public supplies of drinking water.
In particular, the fluids involved in hydraulic fracturing represent a significant investment on the part of investors, who consider the product of their research to be trade secrets, and are not publicly disclosed. Governments must therefore find middle ground between the public's interests in transparency in government and access to information versus fostering a competitive marketplace where investors are rewarded for innovation.
This paper will briefly discuss how several democratically-elected governments have struck the balance. After some introductory explanation about hydraulic fracturing, it looks at several of the states within the United States. It then considers approaches taken in Canada and Australia.
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Footnotes
1On June 3, 2013 Norton Rose will join forces with leading US firm Fulbright & Jaworski L.L.P. to create Norton Rose Fulbright. With 3800 lawyers and 54 offices, including 11 in the USA, Norton Rose Fulbright will be one of the largest legal practices, with significant depth of expertise in the world's leading business and financial centres.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
