Town council has shot down a request from an oil and gas exploration company to conduct seismic testing in the Sackville basin area but that doesn’t mean Petroworth Resources Inc. still won’t move ahead with their plans.
In a vote of 4-2 on Monday night, council denied permission to Petroworth to begin the geophysical explorations to look for oil or natural gas. But the motion may essentially be meaningless as the town has no real authority over the land and the provincial government has the ability to overturn council’s decision.
“Our permission is irrelevant,” said Coun. John Higham during council’s regular meeting.
But the councillors who voted against the testing made it clear they were taking a stand against the lack of policies regulating the oil and gas development industry in New Brunswick today and the environmental consequences that could come from that.
“It’s not the seismic testing, but the results of it,” said Coun. Margaret Tusz-King. “What if they do find something? Then we’re on the hook for what happens next. We have inadequate regulations surrounding that to protect the land or the people.”
Fellow councillor Mike Tower agreed.
“It’s the unknown after this (testing) stage that I’m most concerned about,” he said.
Eric Mourant, the town’s chief administrative officer, said Petroworth, from his understanding, has never been denied permission before to conduct seismic testing and will still be able to seek approval from the province to move ahead with their exploratory work. The town will then need to justify its refusal to provincial officials.
But Coun. Virgil Hammock said he had no problem refusing the company access to do its exploration testing.
“Maybe we can make history and be the first to turn it down,” he said.
Hammock said he wasn’t convinced there were enough safeguards in place to protect the land from development and added that, “in a case like this, if something can go wrong, it will.”
Coun. John Higham, however, argued that moving ahead with the exploration would have very little impact on the land or the landowners; and the town would then know, once and for all, whether the basin has potential for natural gas production.
“The town is probably better served to see what’s there first,” he said. “We’re not talking about approving development here.”
Higham pointed out that, in previous testing done on the site, no oil or gas had been detected. He suspects Petroworth may end up with similar findings.
“But this way, the landowners will make some money and there will be limited impact on the land.”
Higham and Deputy Mayor Bob Berry voted in favour of the testing, while councillors Tusz-King, Tower, Hammock and Joyce O’Neil voted against. Coun. Bruce Phinney and Merrill Fullerton were absent from the meeting.
Neal Mednick, president of Petroworth, said the proposed seismic testing involves drilling nine-inch holes into the ground and then detonating dynamite to access the necessary data.
There are 160 landowners who are included in the Sackville basin testing area, with 154 of those who have already given permission to Petroworth to access their land, he told council during a presentation at the start of Monday night’s meeting.
“Everyone’s been pretty receptive . . . but we are here looking for your (council’s) support and your approval.”
The 2-D seismic testing is the “first big step towards finding oil and gas,” said Mednick, which is hoped to get under way in early August.
It would then take several months for a geophysicist to interpret the data that was accumulated during the testing.
“So if successful, we would then come back to you and request permission to drill a well.”
Mednick pointed out that the technology involved in onshore exploration is “extremely proven and safe,” particularly compared to offshore drilling.
He guaranteed the testing would not be done in any close proximity of any of the town’s water sources and explained that any wells on private property in the affected area (within 200 m) would be tested before and after the exploratory work.
Landowners would also receive financial compensation for allowing the testing on their property, to the tune of about $700/km.
