United Kingdom fracking saga takes new turn
Tuesday, January 28, 2014 by Giles Gwinnett - Proactive Investors UK
A new twist emerged in the UK fracking debate on Monday, which appeared to strengthen the government's commitment to the controversial drilling technique.
A new twist emerged in the UK fracking debate on Monday, which appeared to strengthen the government's commitment to the controversial drilling technique.
Ministers are now looking at how trespass laws could be altered to allow fracking to take place below homeowners' properties without the occupiers' permission, it was reported.
The move will almost certainly anger those campaigners, who already see fracking as interfering too much with the environment.
Fracking is the name given to the drilling process of extracting shale gas, of which the UK has huge potential reserves.
It involves drilling down, then along horizontally, and as the law stands currently, companies would need permission from all landowners beneath whose land they drill.
If existing trespass laws were changed, shale firms would still need access rights for the surface drill site among other permissions, however.
Last week, PM David Cameron told the Commons the extraction of shale gas could provide effective low cost energy and at the same time make Britain more competitive.
“Shale is so important for the future of our country. We need to persuade people that this can go ahead without the environmental damage, and without the problems that people are worried about,” he said.
Cameron also repeated previously announced government plans which allow local government authorities and communities to directly benefit from shale gas revenues.
In other fracking news as the week began, it was revealed Cuadrilla had withdrawn applications for permits (but was preparing new ones) to frack in Lancashire so they meet revised environmental guidelines on waste water.
Private firm Cuadrilla is one of a clutch of shale firms, which have acreage in Lincolnshire.
The others hit the headlines last week as it emerged the French oil giant Total was to invest just under US$50mln developing two onshore licences - 139 and 140.
The excitement prompted share rises in Egdon Resources (LON:EDR) and IGas Energy (LON:IGAS), two of four companies that are part of the Total consortium.
The others are ASX listed Dart Energy (ASX:DTE) and privately-owned eCorp International.
A British Geological Survey (BGS) report has estimated that there could be 1,300 trillion cubic feet (tcf) of shale gas in the Bowland shale basin alone - this covers a large crescent shape and includes Lincolnshire, the Cotswolds, the South Coast and Downs.
Around a tenth of this Bowland shale would equate to around 50 years of total UK consumption.
http://www.proactiveinvestors.com.au/companies/news/52228/united-kingdom-fracking-saga-takes-new-turn--52228.html
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