Lok Sabha Question No. 1059 (UNSTARRED), answered on 2018-12-17
Subject: Shale Gas Exploration
Ministry: PETROLEUM AND NATURAL GAS
Asked by: JAGDAMBIKA PAL, M. CHANDRAKASI, LAXMAN GILUWA

## LOK SABHA UNSTARRED QUESTION No.1059

## TO BE ANSWERED ON 17 th  DECEMBER, 2018

## SHALE GAS EXPLORATION

1059.   SHRI JAGDAMBIKA PAL: SHRI M. CHANDRAKASI: SHRI LAXMAN GILUWA:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

## Will the Minister of PETROLEUM & NATURAL GAS may be pleased to state:

- a)  Whether the Government has proposed to explore and extract shale gas in the country and if so, the details thereof along with the salient features of shale gas and oil policy of the Government;
- b) Whether  the  Government  is  proposing  to  undertake  hydraulic  fracturing/fracking  to extract shale gas and if so, the details thereof;
- c) Whether hydraulic fracturing for shale gas poses a threat to the environment and if so, the details thereof along with the steps taken by the Government to mitigate the negative environmental effects of hydraulic fracturing;
- d) The details of identified shale-gas or shale -oil reserve blocks in the country;
- e) The  details  of  shale-gas/shale-oil  exploration  activities  currently  under  progress  in  the country and outcome thereto as on date; and
- f) Whether shale gas explorations has failed many times and if so, the reasons identified along with the corrective measures taken by the Government in this regard?

## ANSWER

पेट्रोल ियम और प्राक ृ तिक गैस मंत्रािय में मंत्री ( प्रााप्र ामेर्मध ीी )

## MINISTER IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN )

(a):   Government issued Policy Guidelines for Exploration and Exploitation of Shale Gas and Oil by National Oil Companies under Nomination regime on 14 th October, 2013  to permit exploration and  Exploitation of shale gas/oil by National Oil Companies (NOCs) under Nomination regime.  To enlarge the scope of exploration and exploitation of shale gas/oil and other unconventional hydrocarbons, Government  has  notified  the  Policy  Framework  on  20th  August,  2018  to  permit exploration  and  exploitation  of  unconventional  hydrocarbons  such  as shale  oil/gas, Coal  Bed  Methane  (CBM)  etc.  in  the  existing  acreages  of  Production  Sharing Contracts(PSC), CBM Contracts as well as  nomination fields to unlock the potential of unconventional hydrocarbons.

The fiscal and contractual terms of the 'Policy Framework for exploration and exploitation of unconventional hydrocarbons under existing  PSC, CBM contracts and Nomination fields' of 2018 provide for ring-fencing of Petroleum Operations and cost recovery from new hydrocarbon discoveries in PSC blocks. Additional 10% rate of Profit  Petroleum  in  case  of  PSCs  and  Production  Level  Payment  (PLP) in  case  of CBM  contract,  over  and  above  the  existing  rate  of  Profit  Petroleum/PLP  is  to  be shared with Government on new discoveries. For nomination blocks, NOCs will be allowed to explore and exploit the unconventional hydrocarbons under the existing fiscal and contractual terms of exploration/lease license. Hydrocarbon Exploration & Licensing Policy (HELP) of 2016 and Discovered Small Field (DSF) Policy of 2015 also  provides  for  exploration  and  exploitation  of  unconventional  hydrocarbons including shale gas/oil in the acreages to be awarded under these Policies.

(b)&(C):  The  Companies  engaged  in  production  of    oil  and  gas  employ  various technologies,  including  hydraulic  fracturing,  for  production  of  oil  and  gas.  While carrying out petroleum operations including shale gas/oil exploration, companies are required to comply with all statutory rules and regulations with regard to environment activities, Environmental  Impact  Assessment  (EIA)  study  is  to  be  carried  out  and  necessary environmental clearance is obtained as per the Environment (Protection) Act, 1986

and other related Acts/Rules. Before commencing the production and notification issued thereunder.

(d) to (f): Presently, shale gas exploration is allowed in all the allocated exploration and  production  blocks  in  the  country.  As  of  now,  Oil  &  Natural  Gas  Corporation Limited (ONGC) has drilled 23 wells for shale gas exploration  and Oil India Limited (OIL) has drilled 4 wells for shale gas exploration under nomination regime.  Shale gas/oil exploration in the country is at initial stage and no commercial production of shale gas/oil has been made till date.

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