The Government’s decision on 6th October 2016 to allow hydraulic fracturing sends a clear message on the direction of the UK’s energy policy.
Whilst the decision by Communities Secretary Sajid Javid’s to approve plans for shale gas exploration at Preston New Road in Lancashire was un-welcome to some, the decision from Government is not a surprise to the industry.
The current Government has a stated policy of encouraging the development of shale gas exploration and production in the UK and the Prime Minister has been clear that shale gas will be a large part of the UK’s future energy supply.
By being the first of its kind for the sector since the hydraulic fracturing moratorium was lifted, the decision is a landmark ruling for the progression of the industry and will pave the way for more companies to submit planning applications for shale gas exploration now Cuadrilla have finally been successful.
It also sends a message to local authorities having to consider such applications that the approval of shale gas exploration should be the preferred choice and that opposition needs to be on substantive grounds.
Although a positive decision, companies looking to undertake hydraulic fracturing still need to be mindful of the levels of opposition when preparing their planning applications and carrying out stakeholder engagement.
For the environmentalists and local campaign groups, who have already been through a judicial review of the application, they may still look for other opportunities to raise their concerns.
It could be that they challenge the Government’s decision, albeit this is not an easy process and those making the application will have to show that the Communities Secretary has erred on a point of law.
It is also worth noting that this only relates to the exploration phases and future applications for production may also face repeat challenges and other regulatory regimes (such as permitting) may also face similar scrutiny.
The outcome of the Friends of the Earth Judicial Review of the North Yorkshire Council decision and the pending Roseacre Wood appeal will also play an important part in shaping the legal and political framework for the industry.
This latest episode does however show that there is a future for shale gas in the UK.
John Bowman is a Partner, and Elaine Field is an associate, in the Real Estate Planning and Environmental team at Fieldfisher
Recommended for you
