BG Group's Public Position

Unconventional Gas Resources

BG Group operating principles for unconventional gas

BG Group, with our partners and other operators, is developing new sources of natural gas from shale rocks and coal seams. These “unconventional” resources can supply significant energy. In a world where concerns about climate change are acute and renewable energy options do not yet have the characteristics or scale to meet rising energy demand, we see natural gas – with its relatively low emission profile – as an important part of the global energy mix.

However, the fast expansion of the unconventional gas industry, its presence onshore near communities and the technology involved have raised important questions about how they can be exploited safely and without environmental harm.

Our unconventional gas principles

Against this background, we make a range of commitments about the way we work in unconventional gas. We will seek to fulfil them through continuous improvement.

As part of this process we will invest in research and best practice solutions and welcome and support regulation that will require the industry to work safely and responsibly. We will provide regular updates on our progress.

Here, we set out the key elements of BG Group’s approach:

	Working in the community
	Well design and engineering
	Testing and monitoring
	Chemicals disclosure
	Responsible chemical use
	Managing water responsibly
	Minimising emissions
	Communicating and working with stakeholders

Continuous development and our
progress in 2012

We originally published these pages in February 2012. At the end of each principle below, we report on progress during the year so far.

Download our operating principles

Working in the community


	Eidsvold Show Society received funding from the QGC Sustainable Communities Fund for the construction of a safety fence, Queensland, Australia

Before starting work, we assess how our operations could affect local communities, then plan ways to work to address any negative impacts, while maximising benefits. BG Group was one of the first companies to introduce social impact assessments where we work in the US.

We aim to hire, invest and partner locally, working with businesses and individual landowners to agree the best ways to work for mutual benefit.

We commit to respect and preserve unique and sensitive areas and to understand and manage our environmental footprint.

We assess environmental risk in our planning process and take action to address significant risks;

We work to minimise the impact of our sites on the environment and community by, for example, minimising noise and disruption. Where possible we group wells on sites to avoid building new roads, or burying pipes to minimise long-term visual impact. We take care to prevent erosion or sedimentation and to protect surface and ground water.

We commit to rehabilitate sites after we finish, consulting appropriate interested parties including the community. Our work can leave the area improved; for instance new or substantially repaired roads are usually seen as a very positive legacy; and

We plan, design and operate our facilities to minimise environmental and health risk to communities, in particular the risk of the escape of gas or fluid.

Working in the community: progress in 2012

We reported good progress on managing our social impact in both Queensland and the US.

In Queensland, we:

Secured approval from the regulator for our Social Impact Management Plan (SIMP), an important plank of the regulatory framework in Queensland. The plan will aim to meet 94 commitments set by the Coordinator General and was the first to be approved in Queensland and is seen as the most substantial private social investment program in the state. It will see us make investments of up to A$150 million by 2014, in areas like housing, health, safety and training.
Made good progress against the SIMP. We have established five regional community committees to ensure there is a forum in which the community can raise any issues relating to our work.
Set up a Sustainable Communities Program which invests in local communities in consultation with them. This program will continue during the construction phase of the QCLNG project and we will report to the regulator annually.
See the report QGC Sustainable Communities Program for more detail

In the US, we:

Introduced Social Impact Management Plans - showing how we will manage impacts our operations may have on the local community – and began implementing recommendations from the plans.
Increased our involvement and investment in the local community, strengthened contractor management and are working more closely with local government in particular on road and traffic issues.
Continued work with landowners to ensure minimal disruption from well sites
Did more to explain our operating approach to the public including:
- Providing more information on the EXCO Resources website (www.excoresources.com)
- Developing a prospectus that sets out our working approach
- Hosting monthly community town halls for our operations in Pennsylvania; and
- Working with the Louisiana Department of Environmental Quality to develop a field guide to shale gas development.