Briefing Note on Fracking in the United Kingdom and Ireland Last December, Edward Davey announced the resumption of hydraulic fracturing (‘fracking’) processes subject to new controls to mitigate the risks of seismic activity. This followed an eighteen month-long suspension of operations and an investigation into two seismic tremors felt near Preese Hall, Lancashire in 2011. Fracking has become an important news story in the past twelve months but many articles are centred on its swift uptake within the United States. There it is seen as an answer to fuel security issues and remarkably due to the US’s shift from coal to gas, the flood of US exported coal into the global market has caused the global price of coal to dramatically reduce. But what is the current situation in the UK and Ireland? How are fracking operations regulated and where is the main area of interest? Fracking explained Not claiming to be an expert in extractive industries, essentially what happens is that water is pumped into the ground at high pressure. This causes the rocks (predominately shale) to fracture and the naturally occurring gas escapes. The gas, mainly methane, is channelled up through the same borehole as the water entered and is used as part of the energy supply. Sand and chemicals are then pumped down the borehole and into the shale to keep the fractures open and aid the release of more gas. The reason for it becoming a topical issue is that with the rising prices of oil and gas, reserves that were previously uneconomical to extract are now becoming viable sources of energy. With rising prices and no alternatives, predictions suggest that by 2020, over 90% of our natural gas supply will be imported1. The inputs are water (up to several million litres per day), sand and chemicals. The outputs are gas and chemicals, some of which will have a radioactive element. From a national energy perspective, the downside of applying this technology to open up gas fields is that it moves us back into the realms of searching for cheaper fossil fuels, rather than thinking about energy efficiency and renewable sources. However, the same could be said if we continue to take advantage of cheap coal and gas exports from elsewhere while they exploit their gas reserves. The other side of the argument is that it provides us with a secure supply of gas as part of our energy mix and that provided that impacts can be mitigated, should be exploited. 1 BGS report, 2011. Where are the reserves ? The simple answer is, not everywhere and depends upon the geology of the area. The firm Cuadrilla has identified a "vast reserve" on the Fylde coast in Lancashire, and other companies want to explore for shale gas in Fermanagh, the Vale of Glamorgan, Somerset, Kent and Sussex. According to publicly available reports there is said to be £70bn worth of reserves deep under rocks in South Wales. However, unlike in the US, shale gas is not anticipated to supply a large proportion of Britain's gas needs. The British Geological Survey estimates that at most the total UK shale gas reserve could amount to 150 billion cubic metres of gas, equal to 2 years’ worth of gas consumption.2 Local Impacts Along with the global impacts on energy prices due to the massive uptake of fracking in the US, and national policy implications of continued over-reliance on fossil fuels, there are local impacts, which is where the planning system comes in. Firstly, a sufficiently large and continual water supply is required, as well as the sand and chemicals that are mixed in. The BGS state that approximately 60% of the water used is returned via the same borehole but it is likely to be contaminated and will require treatment before it can be discharged back into the environment. Groundwater contamination due to the use of chemicals is also of concern. Possible contamination routes need to be considered as in the US anecdotal evidence has emerged of gas getting into the domestic water supply. The injection of high pressure water into the ground is also likely to cause seismic tremors, albeit small in nature. The tremors felt by residents near Preese Hall in Lancashire were thought to have been caused by fracking activity between 2-3km deep underground, however, tremors that can be felt by people are said to be rare. Fracturing may need to be repeated every four to five years giving rise to peaks in lorry movements to and from sites. Regulation In the UK, shale gas operations are regulated in a number of ways. DECC issues the ‘Petroleum Exploration and Development Licence’ which gives operators the rights to explore for and extract the resource. Planning Permission must be granted by the Mineral Planning Authority (or the Planning Inspectorate in England and Wales if deemed to be a national significant infrastructure project). Environmental permits will also be required by the Environment Agency in England under the Environmental 2 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/49547/What_is_shale_gas.pdf Permitting Regulations (2010), SEPA in Scotland, EPA in Ireland or Natural Resources Wales. Shale gas wells must be designed and operated in line with Health and Safety Executive and almost certainly Environmental Impact Assessments will be required. According to the Environment Agency’s website ‘if operators want to abstract water directly from surface water or groundwater for operational purposes, and this exceeds 20 cubic metres a day, they will need a water abstraction licence. Applications for a licence will be assessed like any other...(and)….there is no guarantee that directly abstracted surface water or groundwater will be available’. In terms of potential contaminants, only substances that are assessed as being nonhazardous pollutants under the Groundwater Daughter Directive can be used in fracking fluids. Any operator will also require an environmental permit as the flow-back fluid, sediments and scales in processing vessels are likely to contain sufficient naturallyoccurring radioactive materials to be classified as radioactive waste. Guidance notes are available from the EA and there is a joint working strategy between the EA and the Health and Safety Executive to ensure a joined up approach and appropriate monitoring and inspection of operations. National Planning Policies National Planning Policy for England recognises the need to ‘clearly distinguish between the three phases of development (exploration, appraisal and production) and address constraints on production and processing’ of this type of unconventional gas.3 While Minerals Planning Policy Wales does not expressly mention shale gas (it was published in 2001) it states that ‘where oil and gas operations can be carried out in an environmental acceptable way and consistent with the principles of sustainable development, there is no case in land use planning terms for placing more restrictions on the development’.4 Scottish Planning Policy mirrors this sentiment but stipulates that transportation of the end product from the extraction point should be by rail, water or pipeline rather than by road.5 Northern Ireland’s mineral policy also contains no presumption against exploitation but recognises that specific environmental permitting requirements needed (in this case by the Northern Ireland Environment Agency).6 3 Para 147. National Planning Policy Framework. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6077/2116950.pdf 4 Para 64. MPPW. http://wales.gov.uk/docs/desh/policy/120522planningmineralpolicyen.pdf 5 Paras 236-238 Scottish Planning Policy. http://www.scotland.gov.uk/Publications/2010/02/03132605/8 The Irish Government has said that there will be no fracking licences issues in the Republic until the Environmental Protection Agency completes its next study, in 2014 at the earliest7. RTPI view The RTPI believes it is crucial for those authorities with significant reserves of shale gas in their areas to develop planning policies within their local development plans8. Amenity issues such as transport, screening, noise and stability will be vitally important considerations. We are also convinced that in order for effective inclusion of shale gas into the UK and Irish energy mix, permitting processes must go hand in hand with the planning process, and we welcome the efforts made by the agencies involved to provide a transparent, upfront and collaborative process. May 2013 6 Policy MIN4 http://www.planningni.gov.uk/index/policy/policy_publications/rural_strategy/psrni_regional_policies/psrni_miner als/psrni_min04.htm 7 http://www.belfasttelegraph.co.uk/news/local-national/republic-of-ireland/fracking-licences-onhold-in-republic-until-after-study-29204552.html 8 Development plans in NI and Scotland, Local Development Plans in Wales, Local Plans in England, Development Plans in ROI Further information British Geological Survey have produced a fact sheet on alternative fossil fuels and planning, including a map of known shale gas reserves, which is available here http://www.bgs.ac.uk/downloads/start.cfm?id=2085 DECC provide useful background information on their website: https://www.gov.uk/oil-and-gas-onshore-exploration-and-production#resumptionof-shale-gas-exploration Environment Agency have several pages on unconventional http://www.environment-agency.gov.uk/business/topics/126689.aspx gas: Environment Agency Shale Gas Unit: a local single point of contact for operators via their National Customer Contact Centre (03708 506 506). A 2012 report commissioned by the Environmental Protection Agency for the whole of Ireland identifying current knowledge and impacts: http://www.epa.ie/pubs/reports/research/sss/epa-strivesmallscalestudyreport.html SEPA’s 2012 Regulatory Guidance on Coal Bed Methane and Shale Gas included details of the process, impacts and the regulatory framework in Scotland: http://sepa.org.uk/system_pages/quicklinks_2/fracturing_guidance.aspx
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