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The fight against hydrofracking grew in 2008 when it was revealed that extracting shale gas was an option for South Africa.
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An industry spokesman said the proposed moratorium could eliminate up to 4,500 jobs on vertical hydrofracking, which is allowed.
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Paterson instead issued an executive order specifically suspending high-volume, horizontal hydrofracking until the state Department of Environmental Conservation could complete a study of the practice.
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Also called "fracking" or "hydrofracking", the process blasts millions of gallons of water mixed with sand and chemicals deep into shale rock, freeing trapped gas.