France cancels shale gas permits as Total, Schuepbach fail to rule-out hydraulic fracturing

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October 6, 2011

By Oil & Gas Financial Journal staff

Three permits for shale gas exploration in southwestern France were revoked by the French government, Ecology Minister Nathalie Koscisko-Morizet told Agence France-Presse in an article published October 3. 

Reports say the three permits were withdrawn after the two holders, Total and Dallas, TX-based Schuepbach Energy LLC, failed to offer drilling plans detailing a commitment not to use hydraulic fracturing, or “fracking.” 

Schuepbach Energy holds two permits, one in Nant and one in Villeneuve-de-Berg. According to the company website, Schuepbach’s 1,081,430 acres in Nant were prospective for the Autunian Shale. In Villeneve de Berg, the company holds 228,095 acres where it looked to target the Toarcian Shale. The company reports being active in both areas since 2010. 

Total obtained its Montelimar permit in March of 2010. The permit, granted for a five-year period, covers a surface of 4,327 square kilometers that spans from the south of Valence to the region of Montpellier, in the south of France. 

In September, Total submitted the report required by French authorities concerning the work program for the exploration license. According to the September 12 press release by Total, the company said “the work program described in the report does not envisage the use of the hydraulic fracturing technique.” 

According to the same press release, Total was completing the preliminary study phase, in which existing subsurface data was being analyzed and no field operations were being conducted. If the results were encouraging, the next phase would have been to drill for core samples. If a significant oil or gas deposit were confirmed, a third and final exploration phase would be considered to evaluate the reservoirs’ production capacity, said Total. In this case, the techniques used for production testing were to be selected “in line with the properties of the reservoir(s) identified and the techniques available at that time and permitted under the prevailing laws.” 

Schuepbach did not immediately return OGFJ’s request for comment. A Total spokesperson said the company was awaiting the French government’s official letters and that the company would be willing to comment following a review. 

Hydraulic fracturing was banned in France earlier this year due to concerns about its possible negative impact on the environment.

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