The Government has launched a consultation on proposals to simplify the existing planning procedure for shale gas and oil and deep geothermal underground drilling access.
Launching the consultation, the Department of Energy and Climate Change said the new proposals would simplify procedures which are “costly, time-consuming and disproportionate for new methods of underground drilling.” Oil, gas and deep geothermal companies will be able to explore their potential, and will in return provide a voluntary community payment for access.
A company looking to develop shale or geothermal will still need to obtain all the necessary permissions. There are controls in place to regulate seismicity, environmental impacts and planning impacts and there are numerous opportunities for local communities to engage ahead of any development.
Currently, companies must negotiate rights of access with every landowner living above underground drilling, even though the works take place far beneath the surface (up to 5000 feet).
DECC said: “The current process in relation to underground access gives a single landowner the power to significantly delay a development regardless of how others in their community feel about it.”
“If these negotiations fail, an oil and gas operator can refer the matter to the court via the Secretary of State, which is very likely to grant access, given that the development is likely to be expedient in the national interest. However, this court process would be lengthy and expensive for both the company and the landowner.”
The shale and geothermal industry has put forward a voluntary offer for a payment system which will involve a £20,000 one-off payment for each unique lateral (horizontal) well that extends by more than 200 metres laterally. The payment will be made at a community level.
The proposals are:
- Underground right of access for shale gas and deep geothermal operations only below 300m (nearly 1000ft);
- A voluntary community payment of £20,000 per lateral well; and
- A clear notification system to alert local people.
Business and Energy Minister Michael Fallon said:
“Britain needs more home-grown energy. Shale development will bring jobs and business opportunities. We are keen for shale and geothermal exploration to go ahead while protecting residents through the robust regulation that is in place.
“These proposals allow shale and geothermal development while offering a fair deal for communities in return for underground access at depths so deep they will have no negative impact on landowners.”
In support of the proposals, DECC said many other industries already access underground land beneath people’s homes in order to lay cables and build infrastructure such as water pipes and tunnel which are much closer to the surface than the shale access depths. For example, the deepest Tube station is around 32m below ground - drilling for gas, oil and deep geothermal energy is much deeper. The proposals would only apply from 300 metres down and any hydraulic fracturing would only occur at far greater depths of 1.5 kilometre (around 5000ft) or more.
Deadline for responses to the consultation, which runs for 12 weeks, is 15th August. Once feedback has been considered, the Government will announce next steps.
Click here to access the consultation.
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