Commitment to the Karoo Community

South Africa has a bright future. The economic growth that has taken root across the country has provided a wealth of opportunities. But this future cannot be built on the nation's current energy infrastructure. South Africa has to begin working on overcoming the energy challenges it faces today in order to meet the demands for energy it will face tomorrow.

Natural gas will go a long way toward helping South Africa meet those demands. In working with the Petroleum Agency South Africa, Shell is seeking to explore for shale gas in the region.

We are also working to communicate directly with the people of South Africa about this process. This especially includes listening to and addressing the concerns and needs of a number of communities throughout the Karoo region.

Through these efforts, we want to help you – the people of South Africa – build an energy future strong enough to take you where you are capable of going.
 

General Commitments
 

• We will set up an independent advisory committee for this project to provide expert steers and advice on environmental and social impacts (fraccing, water, etc) to ensure we reduce and mitigate impacts as far as possible, take into account people’s concerns and reflect them in the project design/execution.
   
• We will create citizen advisory groups – made up of a broad cross-section of community leaders and elected officials – who will work alongside Shell’s management team to identify and provide advice regarding concerns related to operations, such as truck movements, noise, etc.
   
• Shell will provide full compensation to any landowner with evidenced direct negative impact or loss on their land as a result of our activities.
   
• Utilising best practices, we will work with impacted communities and landowners to address how they can receive direct benefits from UCG development.
   
• We are committed to lead in setting of global best practices and operational standards for unconventional gas development in the Karoo.
   

 Water Commitments
 

• In the Karoo, we commit to analysing and implementing relevant recommendations arising from the US EPA study currently underway through 2014 into the project.
   
• We also commit to incorporate any new best practices from Provincial and/or States with existing well design and HF regulatory primacy - especially recognizing these jurisdictions may have similar geologic, water, etc conditions more consistent with the Karoo.
   
• We commit not to compete with the people of the Karoo for their water needs. Nobody will go short of fresh water because of our operations; either in the exploration phase, or if there is any further development.
   
• We commit to establishing mutually acceptable protocols for the independent monitoring of the water quality in existing water wells and surface water surrounding our activities.
   
• We will conserve and recycle water where ever possible.
   
• We will commission an independent study in our licence area of water resources using third party experts to ensure that we get a better understanding, also providing information that may be useful in further development of water supplies for the region.
   
• When we develop plans to source water in our operations we will make sure we understand local community needs and see how we can help meet community shortages in addition to project needs.
   
• We will commit to make available any recovered and unwanted clean water for community use – along with the transfer of water boreholes which are no longer required by the project.
   
• Prior to drilling any exploration well, local experts will be consulted to identify the most suitable water source for development areas. We will develop a water plan for each well or pad (multiple wells at same location) site.
   
• Impacted landowners, the relevant water authorities, local stakeholders and environmental advisors will be consulted throughout the water source selection process.
   
• We will share our well design and aquifer protection plans which will adopt best practices from around the world.

Hydraulic Fracturing Commitments
 

• We commit to disclose fracturing fluids at each drilling location, and consult with communities as part of the development of hydraulic fracturing plans.
   
• The information will be available on our website.
   
• We will recycle the flow back water as much as possible and dispose of remaining fluids responsibly.
   
• We will not use BTEX in any hydraulic fracturing operations.
   
• We will support the development of ‘best-in-class” regulatory standards for hydraulic fracturing in South Africa. Wyoming is a model for the most recent and considered best practice regulatory regime for this type of resource development.
   
• Based on the results of the water study, we will ensure a suitable natural physical barrier exists between target gas-bearing formations and any portable water aquifers used by communities/industry.
   
• Our well design, drilling, completions and operations standards  require multiple  physical barriers and procedures to control well operations – including the fracturing process, and prevents the migration of gas and any fluids  into underground drinking water sources.
   
• We will publish well completion reports publicly.
   
• Shell will monitor the integrity of its wells.
   
• Any well that is permanently plugged and abandoned will meet best practice internationally.