Fund likely for future fracking fiascos

Business Report 17 September 2012.

THE Government appears to be considering the idea that gas exploration companies that will ultimately be given the green light to frack in the Karoo will be required to put a capital amount in trust upfront as an environmental insurance to avoid a repeat of the acid mine drainage saga in Gauteng.

Derek Light, a Graaff-Reinet lawyer who has been fighting against hydraulic fracturing – the process of drilling up to 5km below the earth’s surface and then blasting lateral legs with water and chemicals to force shale gas to the surface – said that the idea of a trust fund was first raised by businessman Johann Rupert…