SHALE GAS
UK's Lancaster County Council rejects two shale gas exploration permits / Setback for fracking industry / Environmental advocates cheer decision / Cuadrilla likely to appeal
In two decisions that surprised both proponents and opponents of shale gas exploration in the UK, the Lancaster County Council has voted to deny permission for gas exploration company Cuadrilla (Lichfield, Staffordshire / UK; www.cuadrillaresources.com) to frack two sites near Blackpool / England – see Plasteurope.com of 03.02.2015. The vote on 29 June to deny a permit for the Preston New Road project followed by a week its vote to reject Cuadrilla’s plans for drilling at nearby Roseacre Wood. Early-stage exploration at both sites was halted in 2011 after two small earthquakes rocked the area and led to a temporary nationwide moratorium.
Beyond earthquakes, opponents of the exploration plans had said fracking would lead to excessive traffic and noise around the drilling site – grounds cited by the council for rejecting the Roseacre Wood permit. As part of the decision regarding Preston New Road, the councillors rejected Curadrilla’s plans for a seismic monitoring array, saying the cumulative effect of exploration activity would lead to the industrialisation of the countryside and adversely affect its landscape character.
UK press reports said the 14-member council had been poised to give the go-ahead for Preston New Road, which in contrast to Roseacre wood had received the blessing of its planning board; however, individual members changed their vote at the eleventh hour. The final vote was 9 to 5. A decision on both fracking sites had been pending since February of this year. Cuadrilla had initially asked for a delay until the end of April after the planning board indicated it might turn thumbs down – see Plasteurope.com of 30.01.2015 – and the vote subsequently saw further delays.
Lancashire’s rejection of fracking at both sites was deemed by some a major blow to plans by the government of UK prime minister David Cameron to make the country a shale gas powerhouse. However, Cuadrilla is widely expected to appeal at least the New Preston Road decision. In a statement, the company, which said it was “surprised and disappointed” by the county’s move, advised that it would “now take time to consider its appeals.” Cuadrilla said it had warned the council earlier that it would be likely to lose at the appeals stage and incur financial penalties.
In other reactions, Ken Cronin, CEO of the UK Onshore Operators Group (UKOOG), which represents the shale gas industry, called on the UK government to review the protracted planning process. “This after 15 months of a long, drawn-out process cannot be right,” he said. Centrica, the private equity group that holds a 25% stake in British Gas, also said it was “extremely disappointed,” noting that “it has taken a significant amount of investment to get us where we are today.” The British Chambers of Commerce slammed the decision as “perverse, short-sighted and timid.”
The council’s vote is seen as a major victory for the green cause, in particular as it is likely to lead to month-long exploration delays at least in the area of the UK where plans are most advanced. The British arm of international management consultancy Poyry (HQ: Vantaa / Finland; www.poyry.com), which last year warned that energy companies could decide against investing in UK shale gas exploration if the approval process is not made simpler and quicker – see Plasteurope.com of 11.03.2014 – called the decision “a serious setback" for shale gas in the UK. “Many must be wondering if it can ever reach production phase,” its senior consultant John Williams told UK media. Andrea Leadsome, the UK energy minister, however, expressed confidence that the country could realise its shale gas potential despite the “disappointing decision.”
Undaunted by the prospect that courts could overturn the Lancashire decision, anti-fracking activists cheered the county’s defiance of Cuadrilla. Greenpeace UK called the vote “a triumph for democracy and a Waterloo for the fracking industry.” Environmental advocacy group Friends of the Earth said both Cuadrilla and the government “must respect the decision and not try to force unpopular fracking on these communities.” A senior campaigner called the outcome of the vote a "bigger win than anyone was expecting,” adding that “it shows the huge strength of feeling here.”
Beyond earthquakes, opponents of the exploration plans had said fracking would lead to excessive traffic and noise around the drilling site – grounds cited by the council for rejecting the Roseacre Wood permit. As part of the decision regarding Preston New Road, the councillors rejected Curadrilla’s plans for a seismic monitoring array, saying the cumulative effect of exploration activity would lead to the industrialisation of the countryside and adversely affect its landscape character.
UK press reports said the 14-member council had been poised to give the go-ahead for Preston New Road, which in contrast to Roseacre wood had received the blessing of its planning board; however, individual members changed their vote at the eleventh hour. The final vote was 9 to 5. A decision on both fracking sites had been pending since February of this year. Cuadrilla had initially asked for a delay until the end of April after the planning board indicated it might turn thumbs down – see Plasteurope.com of 30.01.2015 – and the vote subsequently saw further delays.
Lancashire’s rejection of fracking at both sites was deemed by some a major blow to plans by the government of UK prime minister David Cameron to make the country a shale gas powerhouse. However, Cuadrilla is widely expected to appeal at least the New Preston Road decision. In a statement, the company, which said it was “surprised and disappointed” by the county’s move, advised that it would “now take time to consider its appeals.” Cuadrilla said it had warned the council earlier that it would be likely to lose at the appeals stage and incur financial penalties.
In other reactions, Ken Cronin, CEO of the UK Onshore Operators Group (UKOOG), which represents the shale gas industry, called on the UK government to review the protracted planning process. “This after 15 months of a long, drawn-out process cannot be right,” he said. Centrica, the private equity group that holds a 25% stake in British Gas, also said it was “extremely disappointed,” noting that “it has taken a significant amount of investment to get us where we are today.” The British Chambers of Commerce slammed the decision as “perverse, short-sighted and timid.”
The council’s vote is seen as a major victory for the green cause, in particular as it is likely to lead to month-long exploration delays at least in the area of the UK where plans are most advanced. The British arm of international management consultancy Poyry (HQ: Vantaa / Finland; www.poyry.com), which last year warned that energy companies could decide against investing in UK shale gas exploration if the approval process is not made simpler and quicker – see Plasteurope.com of 11.03.2014 – called the decision “a serious setback" for shale gas in the UK. “Many must be wondering if it can ever reach production phase,” its senior consultant John Williams told UK media. Andrea Leadsome, the UK energy minister, however, expressed confidence that the country could realise its shale gas potential despite the “disappointing decision.”
Undaunted by the prospect that courts could overturn the Lancashire decision, anti-fracking activists cheered the county’s defiance of Cuadrilla. Greenpeace UK called the vote “a triumph for democracy and a Waterloo for the fracking industry.” Environmental advocacy group Friends of the Earth said both Cuadrilla and the government “must respect the decision and not try to force unpopular fracking on these communities.” A senior campaigner called the outcome of the vote a "bigger win than anyone was expecting,” adding that “it shows the huge strength of feeling here.”
02.07.2015 Plasteurope.com [231552-0]
Published on 02.07.2015