Questions and answers Information meeting gas extraction and subsidence

Talking point information meeting Gas extraction and Subsidence
image of talking plate information meeting Gas extraction and Subsidence municipality of Tytsjerksteradiel

TNO (Geological Survey of the Netherlands)

TNO advises the Ministry in assessing new extraction plans. Within TNO, the Geological Survey of the Netherlands has been set up as a knowledge center of the subsurface.

"Soil subsidence is about the deep and shallow subsurface.

"You cannot separate damage from deep causes of soil movement from damage shallow causes. You have to relate this and study it from an integral point of view."

Is this approach always sufficiently comprehensive and does it truly consider the entire context when assessing damages?

This approach is difficult because it involves several disciplines and involves a long chain of calculations. So assessing the damage cannot always be done integrally. However, in cases with a trigger, such as subsidence caused by gas extraction, the context will be included. After all, gas extraction is a major cause of subsidence, especially in areas such as Groningen and Tytsjerksteradiel. An integral study then seems necessary.

It is indicated that damage is not caused by subsidence, but by water levels. What about this?

Soil subsidence caused by gas extraction affects the water table. This is called the "relative groundwater level. With subsidence, groundwater does not sink with the soil and therefore comes closer to the surface. Soil subsidence is thus a combination of factors: Gas extraction causes subsidence, the effect of which is to change the relative water table.

Recently, the Wetterskip has stated that they no longer want to lower the water level along with the soil. How do you as researchers look at this?

Direct damage from gas extraction itself is negligible. Damage that occurs in the context of gas extraction is often caused indirectly. This usually occurs in the shallow subsurface, for example through changes in groundwater levels or water management. In some cases, the water board applies level lowering. These indirect effects can lead to damage, but are related to the subsidence caused by gas extraction.

Is it true that many small gas fields can cause more damage together than one large one like in Groningen?

Indeed, the size of a gas field affects the relative displacements (movement) of the soil. In a large gas field, the soil differences between them are smaller, meaning the displacements are less. Smaller fields contain less gas, causing subsidence. However, because fields are more localized, the relative displacements in that particular area may be relatively larger. Overall, however, the impact remains limited.

Ministry of Climate & Green Growth

The Ministry is responsible for authorizing new extraction plans. To assess an extraction plan, they request advice from TNO and SSM (State Supervision of Mines). They assess what is stated technically in an extraction plan. So the soil subsidence, risks of vibrations and earthquakes.

The plan with the opinions will then be presented to the decentralized authorities for their advice. After this, the advice will go to the Mine Council. The ministry will then take a draft decision. 

illustration_procedure_permit_of_new_winning_plans
Illustration of procedure licensing new extraction plans (Ministry of Climate and Green Growth)

Does the Ministry understand residents' concerns about the effects of gas production?

Certainly. Given the situation in Groningen, we understand the concerns when activities take place in the deep subsurface. That's why we assess each initiative individually, based on the specific circumstances. This involves looking at the entire context. The necessary expertise is deployed to carefully map the expected effects. The Minister approves an extraction plan only when it is really safe to do so.

It Wetterskip has indicated that it will no longer apply level lowering as a solution to subsidence. How do you view this?

See answer to the next question.

And does this mean anything for the "context" in which you grant or deny an application? Doesn't the Ministry see this as a joint responsibility?

It is the responsibility of the Wetterskip to determine how they handle the management of groundwater levels. If the Wetterskip wants to handle it in a different way, we will take that into account. In that case, we will have to review what is and what is not possible. The consultants will then assess the effects, including the impact on the water table. 

How do you weigh the interests of the region/residents in your decision-making?

For this, the ministry has established an assessment framework.

Assessment framework for extraction plans

  • Assessment based on the following aspects:
    • Planned subsurface management.
    • Projected land subsidence.
    • The expected seismic risk.
    • The possible effects of soil movement on people, buildings and infrastructure.
    • There are adverse effects on nature and the environment.
  • Permit/consent only if it can be done safely.

What is "safe" according to the ministry's definition, and then when is an application judged to be "unsafe" and thus not licensed?

No risk does not actually exist. We can never guarantee safety 100 percent of the time. You always consider as many factors as possible. When you do something there is always a possible effect or consequence. It is important to see what risk category something falls into, for example, whether the risk is negligible or whether only cosmetic damage is to be expected.

There can be several reasons for denying a permit. One example is when the seismic risk, such as the likelihood of earthquakes, becomes too great. This is the reason for not granting a permit in Groningen, for example.

How does the ministry account for subsidence, given the many variables involved? As a resident, you would expect the context estimated by the TNO to be considered in its entirety.

In the permit application, the ministry assesses only the subsidence estimated as a result of gas extraction. We do not consider subsidence caused by peat sinking or oxidation. 

Surface subsidence caused by peat sinking or water level lowering by water boards, which exposes peat to air and causes further subsidence, is outside our assessment. We focus only on the effects of gas extraction.

If the ground drops but the water level stays the same, the quays sink with it. This affects the water board fees that must be paid by the people of Friesland. How will this be compensated?

This is the responsibility of Vermilion. They are responsible for compensating the costs and damage caused by gas extraction. This is assessed in Friesland by the Soil Subsidence Committee for Natural Gas Production Fryslân.

Why is gas still being extracted in the Netherlands?

The Netherlands wants to become climate neutral by 2050. There will be a gradual switch from fossil to renewable energy. At the moment, there is insufficient sustainable energy available. 80% of households still use natural gas, as does much of Dutch industry. By extracting gas in the Netherlands, we are less dependent on other countries. It also causes less CO₂ emissions than imported gas during extraction and transportation.

In the Netherlands, gas is extracted from some 200 gas fields. This contributes 30% of national gas consumption. 

Vermilion

Vermilion Energy manages the fields in the municipality of Tytsjerksteradiel. The gas fields in the municipality were previously owned by mining companies NAM and Total. Now that these fields are coming to the end of their production, they are no longer of interest to these larger companies. Vermilion has specialized in extracting gas from small gas fields.

What about damage to infrastructure due to water levels? Who can that be recovered from?

In Friesland, we have the Committee on Subsidence in Natural Gas Production Friesland (CBAF), which any government agency can join. If measures are needed because the municipality, the water board or the province has to carry out repairs and Vermilion is the causer or joint causer, they can submit a claim to the committee. The Committee will then give a binding recommendation as to what portion of the costs will be borne by the gas producer. This damage will then actually be compensated.

Can you properly retrace the damage, given the "context" we talked about earlier? It's a complex, multi-layered story. How can you properly demonstrate that?

Mining companies no longer have a role in the claims chain. In filing, assessment and settlement, both Vermilion and NAM are outside the damage settlement process. The only role they still have is when there is a verdict and the reporter is proven right. In that case, Vermilion must compensate the damage, and Vermilion has committed to do so.

Now that we find that water management is a problem, the Wetterskip is contacted prior to an extraction plan application. What happens if they indicate it cannot be done safely?

Vermilion is preparing a new extraction plan for a small field in the area that involves water-related issues. There have been intensive preliminary consultations with the water board* to see exactly how that is. 

*This consultation, however, took place before the Wetterskip adopted the new position.

How are the profits from gas production distributed among the various parties? And how do governments manage their share of the profits?

72 cents of every euro goes to the Minister of Finance (currently even slightly more, 82 cents, because of the levy related to the energy crisis). So part of it goes to the gas extraction company and another part to the government, where it goes into the general funds and is used for the budget of the Netherlands.

We are now looking with the mining companies at how we handle the likes and dislikes in the future.

Who is responsible for the baseline measurement and how it is carried out?

There are 2 types of baseline measurements:

  1. Zero measurements were long prescribed in the extraction plan, with Vermilion responsible for carrying out zero measurements at various locations. The ministry, partly on the advice of experts, stopped including this condition because in the case of damage, the causal link between the damage and the activity must always be demonstrated as well. This role now lies with the Mining Damage Commission or CABF.
  2. When Vermilion has heavy transports performed - as with TID-200 - truck traffic vibrations are considered and zero measurements of infrastructure and buildings are still taken.

Mining Damage Committee

Mining Damage Commission is an independent body set up by the minister to assess whether damage to homes has been caused by mining activities from small fields. Damage from the Groningen field is handled by the Institute for Mining Damage Groningen. 

The task is to unburden the claims adjuster. The burden of proof is actually taken over in the process. The advice given after careful investigation is binding on the mining contractor.

Do you include baseline measurements in your assessment?

It is good to know that this has existed. You can have a nice overview of the damage now and before, but this only says nothing about the causes. Whether or not there has been a baseline measurement, it is always important to first investigate whether something has happened underground that could have caused the mining damage. If it is possible within the wide margins, we have experts carefully examine each crack.

An expert can also prove that an earthquake (due to mining) aggravated existing damage. If it cannot be determined that the damage was caused by other causes and we have seen in the soil that something was going on (such as an earthquake, for example), the decision usually falls in favor of the claimant.

How many reports come in and then what percentage ends up being reimbursed?

Doesn't say much. In 4 years there have been 500 reports. About 50 related to Ekehaar, Drenthe. This is the first time the commission has found that damage was caused or aggravated by a mining-related quake in October 2023. This resulted in 14 cases being awarded compensation ranging between €800 and €16,000. Due to subsidence, no (direct) mining-related damage has yet been identified anywhere.

Municipality

What is the municipality's position and can the municipality do anything about gas extraction?

As a municipality, we see enormous challenges ahead. Subsidence has various causes, but gas extraction is the most important cause in our municipality. Around Burgum the ground has already subsided by 21 centimeters and based on the current extraction plans this will be 24 centimeters. Not only it Wetterskip but also the municipality has a task to keep our area dry. The municipality is responsible for rainwater and groundwater in urban areas. We can no longer properly store and drain the water when the groundwater level rises due to gas extraction. This problem cannot be solved with money or technical facilities.

We also believe that extraction plans should be assessed against the cumulative effects of subsidence. 

We will therefore continue to advise negatively on new extraction plans. We do this in cooperation with the other Frisian municipalities through the mining table, the province and the Wetterskip, among others.