Development of breakthrough technologies in the field of shale gas extraction has altered gas market in the United States. This success now prompts many European countries, including Poland, to examine their own resources and possibilities to produce this kind of natural gas. First reports indicate that Poland could possess abundant shale gas reserves. This research report will critically assess the likely impact of these new shale gas technologies on environment. It will also review the current regulatory framework for shale gas extraction in Poland outlining some potential challenges.