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19.07.2011 Shale gas exploration projects carried out by PGNiG SA have proved to have no environmental impact

Shale gas exploration was the focus of the educational workshop entitled PGNiG - Local governments, "Markowola - a year after the hydraulic fracturing. Shale gas and the environment", organised by PGNiG SA on July 18th 2011 in Zwola.

Analyses have shown that the two hydraulic fracturing procedures carried out by PGNiG SA in July 2010 in the Markowola-1 well in Zwola had no adverse impact on the environment.

Following the disassembly of the drilling rig, PGNiG SA commenced reclamation of the drilling site to make it fit for agricultural use. The reclamation work consisted in ground levelling and distribution of the previously removed upper layer of soil. In order to restore the usability of the land, agronomic techniques were used, followed by the planting of seradella (a catch crop). The reclamation was declared completed on June 7th 2011, by virtue of a decision issued by the Kozienice County Governor.

"The lack of relevant data and knowledge is the greatest obstacle preventing the development of shale gas exploration in Poland. Therefore, the positive results of the expert analyses conducted in Markowola, which have proved that the work had no adverse effect on the environment, are a milestone for exploration projects. After all, degradation of the environment was the main argument put forward by the opponents of shale gas exploration. This argument is now invalid. Nevertheless, we are still waiting for the results of the analyses carried out in other license areas. As a responsible government we have to be certain that shale gas exploration is safe for humans and that its large-scale production will be commercially viable. Once answers to these questions are known, nothing will stop Poland's march to success in the international energy market, " said Mikołaj Budzanowski, Deputy Minister of the State Treasury, responsible for the oil and gas sector.

Marek Karabuła, Vice-President of PGNiG SA's Management Board for oil production and the event's host, emphasised how important it was for Poland and the Polish economy to fully exploit the opportunities provided by shale gas.

"For Poland, shale gas projects mean greater energy independence, the development of a low-emission power sector as well the expansion of the chemical industry. Going forward, such projects may also contribute to the development of the GTL sector, where gas-based transport fuel is produced," stressed Marek Karabuła.

Moreover, the Vice-President commented on the proposal to introduce further regulations with respect to the exploration for unconventional gas (including shale gas), made by a group of European Parliament members.

"We believe that shale gas exploration is already sufficiently regulated. We are open to discussion and to certain changes, however the argument that further regulation should be added to the over 120 existing legal acts is highly questionable. We hope that the regulations considered by the members of the European Parliament will not hamper shale gas exploration in Poland," said Marek Karabuła. He also emphasised the importance of relations with local communities, including land owners and representatives of local governments.

The workshop was attended by representatives of the Ministry of Economy and the Ministry of Environment, experts from the Polish Geological Institute (Polski Instytut Geologiczny), representatives of local governments from regions where shale gas has been and will be explored, as well as representatives of the companies involved in the drilling and fracturing activities, such as Halliburton.

In line with its updated strategy until 2015, PGNiG SA wants to concentrate on hydrocarbon exploration and production in Poland, as this represents the most attractive and profitable line of business. New initiatives relating to the exploration for unconventional gas (notably shale gas) and conventional gas from deep structures will be of particular importance.

By 2015, PGNiG intends to spend a total of around PLN 15bn on the exploration for and production of hydrocarbons in Poland and abroad.

Joanna Zakrzewska

Spokesperson

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