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This Project was completed in 2012.

Within the framework of the US Government - Government of Ukraine Memorandum on Shale Gas Development, USAID is prepared to assist the Government of Ukraine in addressing the environmental and regulatory aspects of shale gas development and production. This cooperation serves to increase Ukraine capabilities to address environmental concerns in shale gas development and create a framework for monitoring and mitigating possible negative impacts and facilitating sound investments by international and Ukrainian companies.

The Ukraine Ministry of Ecology and Natural Resources has been assigned lead responsibility for working with the USAID team. USAID selected the EFD Team to provide a team of experts to work with the Government of Ukraine. The team consisted of HARC, the University of Leoben and the University of Colorado/School of Law.

The project was completed in 2012 and reports are available on request. (Please send a note to rhaut@HARCresearch.org if you would like to receive copies.)

 

An environmental assessment was performed to prepare the Government of Ukraine to augment significantly its capabilities to regulate and support shale gas activities. Ultimately, the activities of this environmental assessment, along with potential follow-on work, would assist in the following outcomes:

  1. Help the government of Ukraine to develop an environmentally sound framework for pursuing shale gas development
  2. Develop more refined environmental reviews for shale gas development
  3. Develop improved regulatory approaches
  4. Assist in the development of more transparent and efficient contract tendering

An initial step was taken to establish key rules of the road for environmental information, analysis, and assessment of the legal/regulatory matters, identification of key environmental mitigation efforts, and probable production profiles for Ukraine’s shale gas production efforts.

The legal and regulatory analysis was intended to cover the entire country, though the local government analysis focuses primarily on the Western Ukraine. The environmental and drilling technology analysis focused on two of the country’s three potential shale gas basins, the Carpathian and Dnieper-Donets. The Kuban Basin was omitted because it involves maritime issues that were beyond the scope of the assignment and are not included in near-term development plans for Ukraine.

The Regulatory Analysis performed provided a brief outline of the administrative framework for regulation of oil and gas development, including environmental protection. Briefly described is the complex array of state and local governments, highlighting the pivotal role of the Ministry of Ecology and Natural Resources. An analysis of the major Ukraine laws that would be applicable to shale gas development, including the major environmental protection laws was performed. Each subsection includes a description of existing Ukraine law, its applicability to shale gas development, and recommendations for improvement to the Ukraine legal regime.

In addition, the EFD Team developed a series of recommendations for Ukraine to establish a process of baseline measurements and monitoring associated with shale gas operations.

 

For more information contact:

     Rich Haut, rhaut@HARCResearch.org, 281-364-6093