foia2900 response - borough of scarborough · 2016. 11. 24. · briefing note and two pdf...

FOIA2900 Response Our planning team prepared a briefing note about fracking should any

councillor be interested in finding out any more about the industry. The briefing note and two pdf government documents (widely available) were saved for reference. I have attached all three documents to my response email for your information. The pdf named ‘About shale gas and hydraulic fracturing (fracking)’ is a Department of Energy and Climate Change document. The pdf named ‘Planning practice guidance for onshore oil and gas’ is a Department for Communities and Local Government document. A council officer and our Cabinet Member for Planning and Regeneration attended an informative DWF seminar about fracking in Manchester on 16 April 2013. I have attached the document from the seminar to my response email. It should be noted that all the above actions have been done on a purely informative basis so our officers and councillors are up to speed on current issues being discussed at national level – fracking opportunities are not being actively pursued in our local authority area.

No media ‘lines to take’ have been prepared by the council’s press office or communications teams on the subject of fracking in our local authority area.

We haven’t had any correspondence with MPs in relation to the subject of fracking in our local authority area.

Briefing Note Oil and Gas Extraction There are essentially three stages of the overall process for gas (and oil) related development: exploration, appraisal and extraction. Key Regulators Department of Energy and Climate Change – issues Petroleum Licences, gives consent to drill under the Licence once other permissions and approvals are in place, and have responsibility for assessing risk of and monitoring seismic activity, as well as granting consent to flaring or venting. Licences are obtained via bidding process, and there is no wider consultation ; Minerals Planning Authorities – grant permission for the location of any wells and wellpads, and impose conditions to ensure that the impact on the use of the land is acceptable; Environment Agency – protect water resources (including groundwater aquifers), ensure appropriate treatment and disposal of mining waste, emissions to air, and suitable treatment and manage any naturally occurring radioactive materials; and Health and Safety Executive - regulates the safety aspects of all phases of extraction, in particular responsibility for ensuring the appropriate design and construction of a well casing for any borehole. Please note – development in the Borough relating to gas exploration and extraction that requires planning permission is dealt with by the North York Moors National Park Authority or (outside the National Park) by North Yorkshire County Council. The Borough Council is therefore a consultee only. Common Methods of Hydrocarbon Extraction A. Underground Coal Gasification Process Allows coal to be burned in situ within the coal seam, via a matrix of wells. The coal is ignited and air injected underground to sustain a fire, which is used to produce a combustible synthetic gas which can be used for industrial heating, power generation or the manufacture of hydrogen, synthetic natural gas or diesel fuel.

B. “Fracking” or hydraulic fracturing Process It involves the injection of water, sand and chemicals at high pressure down and across horizontally into drilled wells as far as 10,000 feet below the surface. The pressurized mixture causes the rock layer to crack. The fissures are held open by the sand particles so that the natural gas released from the rock can flow up the well. Planning Requirements An Underground Coal Gasification or a Fracking trial site would require a planning application submitted in accordance with the Town and Country Planning Act. The application would be dealt with by the minerals planning authority. A trial site is likely to be considered as a stand-alone mining operation, but a semi-commercial operation would be treated as both a mining project and an industrial process. If the capacity does not exceed 50 MWe the planning application would be made to cover the two operations (mining and industrial). A scheme greater than 50 MWe would be classed as a nationally significant energy infrastructure project and be considered by the Planning Inspectorate with the final decision being made by ministers at the Department of Energy & Climate Change. Principal Environmental issues that should be addressed in the application process: noise associated with the operation dust air quality lighting visual intrusion into the local setting and the wider landscape caused by

any the placement of any building or structure within the application site area

landscape character archaeological and heritage features traffic risk of contamination to land soil resources the impact on best and most versatile agricultural land flood risk land stability/subsidence internationally, nationally or locally designated wildlife sites, protected

habitats and species, and ecological networks nationally protected geological and geomorphological sites and features site restoration and aftercare

The trial and semi-commercial operation both fall within Schedule 2 of the Town and Country Planning (Environmental Impact Assessment) Regulations 1999 and the production of an Environmental Impact Assessment (EIA) is not mandatory. Having regard to the characteristics of UCG and its potential environmental effects however, it is highly probable that the determining planning authority would request that a formal EIA be carried out for both a trial and a semi-commercial operation. Pollution Regulations The process, for both the trial and semi-commercial operation would be covered under the Pollution Prevention and Control Regulations 2000 – (PPC Regs 2000(England and Wales) or PPC Regs 2000(Scotland) as appropriate) and UCG and fracking, like all gasification processes will require, an IPPC permit from the relevant Environment Agency Groundwater Regulations, which are also part of the IPPC permit process, allow exemptions for pollutants like phenols and heavy metals (List 1 & List II substances) provided the groundwater is permanently unsuitable and the substances cannot reach other aquatic systems. The definition of this permanently unsuitable zone is a key parameter in the site risk assessment. Other parts of the same regulations require a satisfactory monitoring regime. In addition to the above planning and pollution regulations, they would have to comply with Control of Major Accident Hazards (COMAH) Regulations 1999, Air Quality Regulations and various other EU Directives now enshrined in UK law. Licensing It is anticipated that the drilling and exploration boreholes and the subsequent injection and production wells would require an Exploration Licence. Many historic licences remain extant whilst the Government is considering the granting of new licences. Existing Licences PL077 Viking UK Gas Ltd. West of Scalby End Date – 13/01/2014 PEDL120 Moorland Exploration Limited. Between Scarborough and Helmsley End Date – 01/02/2033 Summary A semi-commercial project (and indeed some exploration projects) will almost certainly require an Environmental Impact Assessment. Development of the trial site would be considered as a mining operation in any planning application submitted under the Town and Country Planning Act,

while a semi-commercial operation with electricity generation would have to be assessed separately as both an industrial process and a mining operation. The process, for both the trial and semi-commercial operation would fall under the PPC Regulations 2000 and require an IPPC permit to cover the ground and air emissions would be required. In addition, the semi-commercial operation would fall under the remit of the European Commission Directive on greenhouse gas emissions trading. Underground coal gasification will need to be licensed by the Coal Authority and hold a Surface Access Agreement from the landowner. National Guidance The NPPF directs that local planning authorities should make policy provision for the three phases (exploration, testing and production) of the extraction of minerals, including conventional and unconventional hydrocarbons, whilst minimising the effects upon public health and the environment. There are reports of significant potential for hydrocarbons being available and this hypothetical availability requires testing through exploratory drilling. Planning for the extraction of minerals (including hydrocarbons) is distinct from other types of development in terms of the availability of resources and duration of the extraction. It also requires the appropriate licensing/ permits to be in place alongside planning permissions. Appropriate provision should be made in local minerals plans. Local minerals plans should include criteria based policies for the assessment of applications. The Guidance recognises that the planning process sits alongside other regulatory processes but directs that the focus of the planning process is to determine whether the proposal is “an acceptable use of land”. The Guidance sets out the key areas for assessment of planning applications. Mineral planning authorities should be satisfied where there is an assessment required by another regulator/body that matters have been warranted sufficient consideration prior to granting planning permission. Pre-application consultation The Guidance provides a list of what will constitute a valid planning application and acknowledges that “pre-application consultation can improve the efficiency and effectiveness of the planning system”. It advocates the use of planning performance agreements in appropriate circumstances. Pre-application engagement should be meaningful and include stakeholders and local communities. Local people often have strong preconceived ideas about these types of proposals; therefore, the approach must be locally focused and avoid the use of technical language. Mineral planning authorities can request

information to support applications but only where this is on an adopted local list. The local list should confirm the supporting information and be “consistent with the spirit of this guidance”. Vertical and horizontal drilling should be considered as part of one application where possible, to avoid further planning applications. EIA requirements Screening should be undertaken to identify the requirement for an Environmental Impact Assessment (EIA) as part of the planning application. The guidance acknowledges that exploratory drilling operations which do not involve fracking are unlikely to require an EIA. The production phases of developments should generally be considered under Schedule 2 of the EIA Regulations, although if production exceeds certain limits then this would fall under Schedule 1 of the regulations and result in an obligatory EIA. The Guidance sets out issues that are likely to be required to be considered by the EIA, including cumulative effects. Whilst EIA is not mandatory, in many cases we would expect it to be carried out on a voluntary basis. This will assist in ensuring that the impacts of development proposals are thoroughly appraised, particularly given that the EIA screening process can be a fertile ground for legal challenge. There is no requirement for the consideration of alternatives as Government policy requires that energy be generated from a range of sources. The Guidance acknowledges that extraction is vital for local economies and, as such, significant weight should be attached to this in planning determinations. The Guidance contains model planning conditions which could be imposed, in order to mitigate potential environmental effects. Guidance is provided in respect of monitoring, enforcement and restoration. Restoration is the responsibility of the developer and the landowner by default. Restoration will be delivered through appropriate planning conditions and Section 106 agreements where applicable. Financial guarantees to cover aftercare are only likely to be used in exceptional circumstances. Link to Government Guidance for onshore oil and gas: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/224238/Planning_practice_guidance_for_onshore_oil_and_gas.pdf

About shale gas and hydraulic fracturing (fracking)

30 July 2013

Contents

Introduction .............................................................................................................................. 3

Hydraulic fracturing and shale gas ......................................................................................... 4

A: Water pollution, use and disposal (inc. chemicals) .......................................................... 8

B: Safety, including well integrity ......................................................................................... 14

C: Seismicity .......................................................................................................................... 21

D: Air pollution ....................................................................................................................... 26

E: Regulatory and monitoring responsibilities ................................................................... 28

F: Implications for Low carbon generation and climate change ....................................... 31

G: Planning and local environmental impacts ..................................................................... 33


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Introduction

This document provides a synopsis of common questions put forward in relation to shale gas and fracking with Government responses to these questions.

Shale gas activity in the UK is still in the exploration stage, where companies are drilling test wells. There is no experience of production operations in UK conditions as yet, although we have a long history of production of oil and gas from ‘conventional’ onshore fields. The answers to questions about the potential impacts of production operations are therefore tentative or qualified for the time being.


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Hydraulic fracturing and shale gas

1. What is shale gas? Shale gas is mostly composed of methane. Methane is ‘natural gas’ and is the gas used to generate electricity and for domestic heating and cooking. Shale gas is produced using technologies developed since the 1980s that enable gas to be recovered from rocks (mostly shale) which were previously considered to be unsuitable for extracting gas. Natural gas produced from shale is often referred to as ‘unconventional gas’ by contrast to ‘conventional gas’ produced from other kinds of rock usually sandstones or limestones. Conventional Gas or oil is found in reservoirs in sandstone or limestone, where gas or oil has migrated up from source rocks. The source rocks are normally an underlying shale. In this rock organic matter becomes gas or oil through the action of heat and pressure over time. In contrast shale gas is produced directly from the source rock. The techniques used to extract gas and oil either from are essentially the same, but shales have to be systematically fractured (“fracked”) to enable the gas to flow. This is because the gas flows much less freely through shales than sandstones or limestones, so the techniques have to be applied in a different way. 2. What is fracking? Hydraulic fracturing or “fracking” is a technique that uses fluid, usually water, pumped at high pressure into the rock to create narrow fractures to create paths for the gas to flow into the well bore and to surface. The water normally contains small quantities of other substances to improve the efficiency of the process, e.g. to reduce friction. Once the fractures have been created, small particles, usually of sand, are pumped into them to keep the fractures open. 3. How do you break the rock, does it involve explosives? There are no explosives used in fracking operations. The process of preparing any oil or gas well for production involve the use of small shaped charges to “perforate” the steel tubing used to control the flow of fluids. The perforations are very precisely designed and do not propagate into the surrounding rock. In a shale gas well, it is the water pressure applied in the subsequent fracking operation which causes the rock to fracture.


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4. What is the process for obtaining permission for drilling a shale gas well? The process of obtaining consent to drill a well is the same whether the well is targeted at conventional or unconventional gas. DECC issues a licence in competitive offerings (licence rounds) which grant exclusivity to operators in the licence area. The licences however do not give consent for drilling or any other operations. When an operator wishes to drill an exploration well, their first step is to negotiate access with landowners for the drilling pad area and the surface under which any drilling extends. Permission must also be obtained from the Coal Authority if the well encroaches on coal seams. Then the operator needs to seek planning permission from the Minerals Planning Authority (MPA) (In Scotland the local planning authority). The operator must obtain the appropriate environmental authorisation/permit from the Environment Agency (EA) in England, Natural Resources Wales (NRW), or the Scottish Environment Protection Agency (SEPA) in Scotland, who are also statutory consultees to the MPA or Scottish planning system. The MPA (or local planning authority in Scotland) will determine if an environmental impact assessment (EIA) is required, such assessments are required if the scale of the operations meets certain thresholds, or if, depending on their nature, scale and location, they may have significant environmental impacts. If an EIA is required, it must be completed by the applicant and submitted to the MPA/planning authority before the MPA/planning authority decides on planning permission. An environmental permit/authorisation from the appropriate environmental regulator may also be required. At least 21 days before drilling is planned, the HSE must be notified of the well design and operation plans to ensure that major accident hazard risks to people from well and well related activities are properly controlled, subject to the same stringent regulation as any industrial activity. HSE regulations also require examination of the well design and construction by an independent and competent person. Notification of an intention to drill has to be served on the Environment Agency under S199 of the Water Resources Act, 1991. DECC will check that the EA/SEPA/NRW and HSE have no objections before consenting drilling operations. If hydraulic fracturing is intended, DECC will require that a fracturing plan to address the risk of induced seismicity is submitted, and will review this plan before these operations are permitted. If the operator wished to drill an appraisal well or propose to start production operations, they start again with the process described above; the landowner’s permissions and planning consent, which may require an EIA; EA, NRW or SEPA consultation and HSE notification, and finally a decision from DECC. 5. Is Government regulation holding back Shale Gas development?

The UK Government has been extremely active creating the right framework to accelerate shale gas development in a responsible way. The Office of Unconventional Gas and Oil (OUGO) has been set up to co-ordinate the activity of the regulatory bodies and Departments. OUGO is liaising with regulators to create a


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streamlined planning and regulation system with a high degree of local scrutiny and prior consultation. We want to ensure that regulation is fit for purpose, encourages growth whilst fully protecting the environment.

6. What are the best estimates at the moment for the amount of shale gas that can be extracted by fracking? DECC commissioned the British Geological Society to undertake a detailed gas in place analysis for part of central Britain in an area between Wrexham and Blackpool in the west, and Nottingham and Scarborough in the east (the Bowland Shale) and this has now been published. The report shows that shale gas clearly has potential in Britain, but as little drilling or testing has taken place, it is not at this stage possible to make meaningful estimates of how much shale gas may be practically and commercially recoverable. The next area of detailed study is the Weald Basin in Southern England. 7. What about these huge numbers – bigger than the North Sea reserves – mentioned in the Press? No-one knows at this point what proportion, if any, of the gas in the ground will ever be practically and commercially producible. 8. Will shale gas give us a secure domestic supply of gas? Production of unconventional gas could offer the UK additional security of supply, but given the uncertainties around when, and the degree to which, unconventional gas will be produced outside North America, DECC continues to take a cautious view of the implications for gas security of supply. 9. Should we halt the production of shale gas? There was a moratorium on fracking following two seismic tremors in the Blackpool area during 2011, associated with “fracking” for shale gas at Preese Hall, Lancashire.

In the light of the robust controls in place to protect the environment and ensure safe operation, DECC see no need for any moratorium on shale gas. The Government takes the safety of the public and protection of the environment very seriously. We commissioned the Royal Society to review the scientific and engineering evidence on shale gas extraction conducted by the Royal Academy of Engineering and the Royal Society. This concluded that “the health, safety and environmental risks associated with hydraulic fracturing (often termed ‘fracking’) as a means to extract shale gas can be managed effectively in the UK as long as operational best practices are implemented

http://royalsociety.org/uploadedFiles/Royal_Society_Content/policy/projects/shale-gas/2012-06-28-Shale-gas.pdf

http://royalsociety.org/uploadedFiles/Royal_Society_Content/policy/projects/shale-gas/2012-06-28-Shale-gas.pdf


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and enforced through regulation.” The Government believes that the regulation is robust for exploration, but wants to continue to improve it. 10. Why has a full public consultation of all aspects of shale gas fracking not been undertaken?

There has been extensive Parliamentary discussion of shale gas, including an

inquiry into shale gas by the Energy and Climate Change Committee in 2011, which

concluded:

“On balance, we feel that there should not be a moratorium on the use of hydraulic

fracturing in the exploitation of the UK's hydrocarbon resources, including

unconventional resources such as shale gas. However, DECC needs to monitor

closely the current exploratory activity in the Bowland Shale in order to both assess

the likely impact of large scale shale gas extraction in the UK and also to promote

public confidence in the regulation of this activity”.

Also, the Royal Academy of Engineering and the Royal Society have conducted a

wide ranging review and authoritative of the scientific and technical evidence on the

risks associated with hydraulic fracturing for shale gas, and published a report in

June 2012. Their overall conclusion is that the risks can be managed effectively in

the UK as long as operational best practices are implemented and enforced through

regulation.


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A: Water pollution, use and disposal (inc. chemicals)

A1. How will the Government ensure that groundwater is not contaminated during shale gas fracking? The UK regulatory regime ensures that hazardous substances must not be allowed to enter groundwater. A permit, under the Environmental Permitting Regulations 2010 (EPR), from the Environment Agency is required where fluids containing pollutants are injected into ground, where they may enter groundwater. This may also be needed if the activity poses a risk of mobilising natural substances that could then cause pollution. The permit will specify any necessary limits on the activity, any requirements for monitoring, the chemicals which may be used and any appropriate limits on permissible concentrations. If the activity poses an unacceptable risk to the environment the activity will not be permitted. If the Environment Agency decides that the activity cannot affect groundwater, a permit will not be necessary. However, such activities are still subject to the requirements of the regulations. If a significant risk or an actual impact becomes apparent, the EA may issue a notice under the EPR requiring the operator to obtain a permit, or in extreme situations, a notice to prohibit the activity. The EA will take a risk-based approach to the regulation of the use of chemicals in shale gas fracking activities and will assess the permitting requirements for each proposal on a site-by-site basis, considering the design of the operations and its proximity to ground and surface waters. The process in Scotland is similar in outline, but the Regulations and terminology differ. A2. How will the risk of shale gas fracking fluids migrating into ground water be mitigated and how will the risk of groundwater contamination by methane and other gases be mitigated? In assessing the risks to determine whether a permit is required for a groundwater activity, the operator needs to provide the Environment Agency, Natural Resources Wales (NRW) or the Scottish Environment Protection Agency (SEPA) with details such as a geological assessment, the casing design and fracking fluid composition. If a permit/authorisation is issued, it may include conditions on aspects such as, casing design and integrity testing, distance between boreholes and groundwater resources and limits on the amounts of substances that may be discharged to the water environment. The British Geological Survey (BGS) has been undertaking a National Baseline Survey of Methane, covering all prospective areas for shale gas in England and Wales, and initial results were published in June 2013. This will enable


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environmental regulators to understand background methane levels prior to assessing permit applications. A3. How will the Government ensure that ‘fractures’ caused by hydraulic fracturing for shale gas, do not extend into aquifers and cause contamination of ground water? Fracking takes place at a depth sufficiently distant from groundwater to ensure that any risk of fractures extending into aquifers is negligible. The Royal Society considered this question and concluded that upward flow of fluids from the zone of shale gas extraction to overlying aquifers via fractures in the intervening strata to be highly unlikely. The thickness and properties of rock surrounding the fractures limit the volume of rock which is effected by fracking.

Experience in North American shale gas fracking also indicates that the laminated nature of rocks in the subsurface contain and restrict fracture height growth by what are termed ‘composite layering effects’,.

DECC, EA, SEPA and HSE have worked with the UK Onshore Operators Group to codify best practices for onshore shale gas wells. See UK Onshore Operators Group’s UK Onshore Shale Gas Well Guidelines [PDF, 674KB, 37 pages] for a description of the Hydraulic Fracturing Programme (HFP), the detailed risk assessment now required as part of DECC frac consent that also describes the control and mitigation measures for fracture containment and for any potential induced seismicity.

A4. How much water is required in Hydraulic Fracturing? Hydraulic fracturing for shale gas is likely to involve the use of large quantities of clean water, typically 10,000 to 30,000 m3 water per well (10,000 to 30,000 tonnes). The water may be obtained from the local water supply company sources or by abstraction from surface or groundwater (if permitted by the relevant environment agency). A5. How will the Government regulate the amount of water made available for Hydraulic Fracturing? To date companies have sourced water for shale fracturing from the local water utility company. We would expect companies to do this wherever possible, at least during the exploratory phase, (see A6 for how utility water supply is managed). As an alternative, companies may wish to take water direct from groundwater or surface waters. Water abstraction is regulated by the Environment Agency through the abstraction licensing process under the Water Resources Act or by the Scottish Environment Protection Agency (SEPA) under The Water Environment (Controlled Activities)(Scotland) Regulation 2011 (CAR). There is an exemption from the need

http://www.ukoog.org.uk/


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for a licence for abstractions that do not exceed 20m3/day but the water requirements for hydraulic fracturing are likely to be much greater than this limit. Operators wanting to abstract surface or groundwater would need to make an application for a licence to the environmental regulator. For groundwater, there is an additional groundwater investigation process that must be undertaken before a licence application can be made. An application for a licence from an operator would be assessed in the same way as any other application for an abstraction licence and would only be granted by the environmental regulatory where a sustainable water supply was available. A6. How will Government ensure that there is sufficient drinking water for the general public, in the face of drought and the already large demands on water use? The Environment Agency produce a Water Resources Strategy, which sets out how water resources should be managed throughout England and Wales to 2050 and beyond to ensure that there will be enough water for people and the environment. By law, water companies have to produce water resource management plans every five years to show how demand for water is going to be managed and met over a twenty-five year period. Water companies must assess in detail the pressures on future water supplies, including changes in demand and changes to the availability of water resources. The Environment Agency consults on and produces guidelines for the water companies to follow when writing their plans. Water companies must then consult on their plans for which the Environment Agency is a statutory consultee. It is also a statutory requirement for water companies to produce a drought plan every three years. The Environment Agency produces guidelines for water companies to follow to make sure their plans contain measures to adequately protect public water supplies and minimise the impact of drought on the environment. A7. How many different chemicals can be used in shale gas fracturing? A large number of chemicals have in the past been used for this purpose in the US. A full list of the most commonly used chemicals in shale gas fracking operations in the US can be found at http://fracfocus.org/chemical-use/what-chemicals-are-used. The EA and SEPA assesses the hazards presented by fracking fluid additives on a case by case basis, and therefore only the substances proposed for use in UK operations have so far been assessed for hazard potential. (See A8 for the chemical approved for use in the UK). The Environment Agency, or SEPA, will use its regulatory powers to protect the environment from shale gas fracturing.

http://fracfocus.org/chemical-use/what-chemicals-are-used


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A8. What chemicals are used in shale gas fracking in the UK? The Environment Agency has powers to require full disclosure of chemicals used in hydraulic fracturing in England and Wales, both under the Water Resources Act 1991 and the Environmental Permitting Regulations 2010 and assesses the hazards presented by fracking fluid additives on a case by case basis. SEPA has similar powers as regards Scotland. The chemicals being used by Cuadrilla, the only company so far to have carried out fracking for shale gas, are listed on Cuadrilla’s website and are as follows:

1. 99.75% of the shale gas fracking fluid is made up of water and sand, beyond

that a very limited number of chemicals are used:

2. Polyacrylamide friction reducers (0.075%), commonly used in cosmetics and

facial creams, suspended in a hydrocarbon carrier;

3. Hydrochloric acid (0.125%), frequently found in swimming pools and used in

developing drinking water wells,

4. Biocide (0.005%), used on rare occasions when the water provided from the

local supplier needs to be further purified.

All of these chemicals have been approved for use in Cuadrilla’s activities, but only polyacrylamide has been used by the company to date. For future activities, subject to appropriate protection for commercial sensitivity, the regulators have decided that operators should disclose, either on their own websites or on third-party developed websites, the chemical constituents in fracturing fluids and additives on a well-by-well basis, along with a brief description of their purpose and any hazards they may pose to the environment. A9. What additional contaminants are present in shale gas fracking fluids when they are returned to the surface via the borehole? The water that returns from the well is likely to contain small quantities of minerals that have dissolved into the water from the shale. Some of these can be harmful so their storage and disposal needs to be planned and subjected to permits. Operators must carry out laboratory and batch scale trials to identify the best options for the disposal of the flow-back fluids. All the facilities that operators use must also hold the appropriate permits from the Environmental Regulator, who will be notified in advance of any movement of the waste. The Environment Agency has sampled and analysed the flow-back fluid from Cuadrilla’s activities in Lancashire. The results show that the flow-back fluid contained significant levels of minerals dissolved from the rocks, such as chloride, sodium, iron and other dissolved metals. It also contained very low levels of naturally occurring radioactive minerals (NORM) at levels similar to those found in granite rock. All of the chemicals found are those which would be expected in shale rock.


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A10. How does the Government ensure that chemicals from shale gas fracking, both fracking fluid and flow-back fluids, do not escape into the environment? The chemicals that are present in shale gas fracking fluid, and the flow-back fluid that returns to the surface after shale gas fracking, are prevented from escaping to the environment through several regulatory mechanisms:

The borehole is designed and constructed to standards enforced by the

Health and Safety Executive, to ensure Well Integrity is maintained (see

section B).

The storage of the fluids on the surface is regulated through the planning

process, which places requirements on the design and construction of the site

to prevent and contain spills.

Flow-back fluids are deemed to be a mining waste and require an

environmental permit for disposal to a waste water treatment works. Final

disposal of the returned flow-back fluid is regulated by the environmental

regulator; (the Environment Agency in England, NRW in and Wales, and

SEPA in Scotland).

A11. How will operators dispose of shale gas fracking fluids from flow-back? The disposal method for flow-back fluid will be agreed between the operator, their contractors and the Environmental Regulator. Prior to receiving an environmental permit for disposal to a waste water treatment works, a review of options is undertaken to ascertain the most appropriate method. In general the available options include:

On-site treatment with re-use of water and disposal of remaining liquids and

solids to a suitable licensed waste treatment and disposal facility or effluent

discharge.

Removal off site to a suitable licensed waste treatment and disposal facility.

Disposal to foul sewer with the permission of the relevant waste water utility

company.

So far in England and Wales, only one shale gas well has been hydraulically fractured and the flow back from that has been taken to a waste water treatment works for treatment and disposal.


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A12. How will radioactive elements from flow back fluids be disposed of? A case-specific radiological assessment is required in support of any application for a permit for the disposal of radioactive waste. The environmental regulator will critically review any such assessment, and will only issue a permit if satisfied. The radiological assessment will detail the disposal options and the radiological implications for people and the environment. All facilities that accept the radioactive components of flow back fluids hold the appropriate permits for the materials. A13. How will the risk of flooding be considered where shale gas fracking is likely to take place (surface water, groundwater, tidal and river etc)? It is highly unlikely that companies will wish to locate shale gas wells or facilities in areas prone to flooding. The National Planning Policy Framework applies a sequential, risk-based approach to ensure that inappropriate development is located away from areas at risk of flooding whenever possible. Should a company never the less propose such a development, than a properly prepared assessments of flood risk should inform the decision-making process at all stages of development planning. A Strategic Flood Risk Assessment carried out by one or more local planning authorities to assess the risk to an area from flooding from all sources (including rising groundwater and from ‘artificial sources’) informs local plan-making, including the identification of areas for particular land uses. A site-specific flood risk assessment is required for all developments in areas where flooding is an issue, and for all development sites of at least one hectare. This assessment is carried out by, or on behalf of a developer to assess the risk to a development site and demonstrate how flood risk from all sources of flooding to the development itself, and flood risk to others, will be managed. The Environmental regulators is a statutory consultee in the planning process and undertakes assessment of flood risk from all sources where this is believed to be a key risk to a proposed site. This assessment informs the decision of the planning authority. The Environmental regulators can also incorporate conditions into a site’s environmental permit to ensure that flood risk is managed appropriately.


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B: Safety, including well integrity

B1. How is the safety of shale gas drilling and well integrity regulated? The operator is responsible for ensuring the safety of the well and the site. The HSE scrutinise the working practices adopted by operators for conformity with the requirements of the Health and Safety at Work etc. Act 1974, and regulations made under the Act. These include:

- The Borehole Site and Operations Regulations 1995 (BSOR) apply to all oil and gas

operations, including shale gas operations. These regulations are primarily

concerned with the health and safety management of the site.

- The Offshore Installations and Wells (Design and Construction, etc) Regulations

1996 (DCR) apply to all wells drilled with a view to the extraction of petroleum

(whose definition includes shale gas) regardless of whether they are onshore or

offshore. These regulations are primarily concerned with well integrity.

- The Reporting of Injuries Diseases and Dangerous Occurrences Regulations 1995

(RIDDOR). These Regulations set out a specific set of Wells Dangerous

Occurrences in Schedule 2, Part I, that the Well Operator has to report to HSE.

Reporting of well incidents enables the HSE ‘Offshore Division’ (OSD) to investigate

those that would have an effect on well integrity and ensures the Well Operator

secures improvements to his operations. These are:

A blowout (i.e. an uncontrolled flow of well fluids)

The unplanned use of blow out prevention equipment

The unexpected detection of H2S (hydrogen sulphide)

Failure to maintain minimum separation distance between wells

Mechanical failure of any safety critical element of a well

For the drilling process, the HSE initially scrutinises the well design for safety and then monitors progress on the well to determine if the operator is conducting operations as planned. An oil and gas well is a complex engineered construction and the key to well integrity inspection is to ensure that the operator is managing risks effectively throughout the life cycle of the well. To ensure this, HSE uses an


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inspection and assessment process consisting of the following main elements, all of which utilise HSE’s experienced specialist wells inspectors:

Assessment of well notifications submitted to HSE. This assesses well design prior to construction, a key phase of work where the vast majority of issues likely to have an impact on well integrity will be identified and addressed by the well operator;

Monitoring of well operations during construction based on weekly operations reports submitted to HSE by the well operators. This ensures the construction phase matches the design intent;

Meetings with well operators prior to, and during, the operational phase will be undertaken (including joint meetings with the EA). This will include site inspections to assess well integrity during the operational phase. A programme of inspections and site visits will be established for each well prior to drilling, this may include ad-hoc inspections as deemed appropriate. The following has been established as a minimum in the HSE/EA joint inspection arrangements;

For new or first time shale gas operators the HSE and Environment Agency will:

Meet them and advise of their legal duties under the relevant legislation.

Conduct a joint inspection of the key operations at site including: o cementing and verification of cement o mini hydraulic fracture o bleed back o main hydraulic fracture

Any such meetings and visits could include other interested parties e.g. DECC.

Any change in the process i.e. hydraulic fracturing at shallow depth or change of media would entail a refresh of this inspection schedule.

For the future activities on the existing Cuadrilla wells in Lancashire, the HSE/EA intend, as a minimum to:

Jointly inspect the Cuadrilla drilling operations at Anna's Road, paying

particularly attention to well integrity and cementing issues.

Jointly inspect the Cuadrilla fracking operations at both Anna's Road and

Becconsall sites.

In addition, HSE will, during the standard scrutiny of weekly drilling reports from the operator, request and review an independent analysis of logging outcomes used to verify cement job/zonal isolation.


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B2. Who is responsible for ensuring public safety in the vicinity of fracking sites and how is this managed? The well (borehole) site operator is responsible for ensuring public safety within, and in the direct vicinity of, the work activities. The HSE is responsible for regulating this requirement. B3. How will well casing integrity and quality be assured? The integrity of the wells is ensured through a combination of:

a well design created by competent personnel in compliance with appropriate health and safety regulations, specifically the Offshore Installations and Wells (Design and Construction, etc) Regulations 1996 (DCR) which apply to all wells drilled with a view to the extraction of petroleum regardless of whether they are onshore or offshore. These regulations are primarily concerned with well integrity;

a well design process that has identified any well bore hazards and mitigated them;

a review of the well design by an Independent Well Examiner;

review of the well design by HSE Wells inspector against construction Standards in HSE guidance and in the Well Integrity Guidance;

construction of the well in compliance with the design by competent personnel with any significant changes subject to the same scrutiny as described above;

monitoring of the construction phase of the well and subsequent maintenance by the Independent Well Examiner and by the HSE Wells Inspector.

B4. What impact did the seismic events near Preese Hall have on Cuadrilla’s well casings? The casing of the well close to the level of the fracking activity was distorted at the time of the seismic tremors. However, there was no similar effect in those sections of casing, higher up the well, that are critical to pressure integrity and preventing the escape of gas to the ground.


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B5. What safety ‘features’ are integrated into well operations to ensure well integrity is maintained? Well design and construction operations follow a recognised industry design and construction process (e.g. the API Guidance Document HF1 – ‘Hydraulic Fracturing Operations – Well Construction and Integrity Guidelines’). Such processes ensure that wells have ‘safety features’ incorporated into their design. Specific design and construction requirements include:

A well design based upon a review of the local geology. This enables the well

design and construction plan to mitigate for any prognosed well bore hazards.

Casing (size and grade) is selected based upon the results of a casing design

process. The casing design analyses the burst, collapse, tensile and triaxial loads

that it may be subjected to.

Once the type of casing and its setting depths have been selected, the

cementation programme is developed in consultation with the well operator’s

specialist cementing contractor. This design process analyses the rock strength

and isolation requirements of the cement slurry so that it is placed as per the well

design requirements.

The drilling of a well is conducted on a “closed” circulating system for the fluids,

so that any losses and gains to/from the well bore can be monitored.

Drilling of the well is conducted with an overbalanced drilling fluid that keeps any

overpressured formation fluids out of the well bore. If flow from an over pressured

formation is detected, the blow out preventers at the top of the well will be shut, a

denser fluid displaced into the well and the influx removed from the well bore.

Once a casing has been set in the well it is cemented in place. The cement

operation is closely monitored to ensure correct placement of the cement slurry

between the outside of the casing and the well bore. Casing strings should be

cemented back into the previous casing or back to surface for shallow strings. In

the event that the correct cement returns are not obtained then a cement bond

log may be run to verify that there is sufficient cement behind the casing. Once

cemented the casing is pressure tested to ensure its integrity.

Once the well is completed it will be monitored at the surface for any annulus

pressure (i.e., pressure in the spaces between the different strings of casing) so

that its ongoing integrity can be verified. Additional measurements can be made

at depth if there is any doubt about the integrity of the well.

B6. Would cement bond logging be an effective way of monitoring the integrity of the cement bonding? Cement bond logging (CBL) can be a useful means of verifying integrity where there is a single casing. CBL cannot verify the cement integrity through double casing of pipe and cement. Where there is a double casing, the best method and standard industry practice is to monitor the annular pressures. As an additional protection, surface methane and groundwater monitoring are being undertaken by Cuadrilla at those sites where it is the operator and any anomalies will be reported to EA, HSE


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and DECC, and compared with data from the National Baseline Methane Survey, being undertaken by the British Geological Survey. B7. What quality controls are put in place to ensure concrete well casings are of sufficient strength? The cement specification, testing of the slurry and placement of it in the well follows recognised industry best practice as contained in the following American Petroleum Institute (API) documents:

API Guidance Document HF1 – Hydraulic Fracturing Operations – Well

Construction and Integrity Guidelines.

API Specification 10A (ISO 10426-1:2009) Specification for Cements and

Materials for Well Cementing.

API Recommended Practice 10B-2 (ISO 10426-2:2003) Testing Well Cements.

B8. How are well casings tested? and how often? Pressure tests are conducted on the casing strings installed in wells to ensure they have pressure integrity. Leak-off or formation integrity tests are also conducted once the bottom of the casing strings have been drilled out to determine what the strength of the rock is. A leak-off test is where the rock is subjected to hydraulic pressure until the drilling fluid begins to leak into the rock and it begins to fracture, this determines the “leak off pressure”. A Formation Integrity Test is where the rock is subject to a predetermined pressure below the leak off pressure to monitor well integrity. Both of these tests provide the well operator with information on the strength of the rock about to be drilled through, but also provides confirmation that the casing is properly cemented into the section of rock that has just been drilled. A cement bond log of casing strings can also be conducted if there is any doubt about the quality of a cementing operation. This determines where the top of cement is in the casing and confirms that the cement is as designed for specific location and of the appropriate quality. The pressures in the spaces between the casings are routinely monitored throughout the life of the well to ensure that integrity is maintained. All of the above tests represent standard oilfield practice for well construction and are not particular to shale gas operations. Casing strings in the well are typically pressure tested as follows:

Once they have been installed and cemented.

A leak-off test or formation integrity test can be conducted on the rock at the

bottom of the casing once it has been drilled out. This is to ensure that the


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cement bond at the base of the casing is good and to gain information on the

strength of the rock at the bottom of the casing.

The innermost casing string will be pressure tested prior to any hydraulic

fracturing operations and after the running of any completion tubing.

B9. Apart from the regulator, what independent monitoring arrangements are in place? Regulation 18 of the Offshore Installations and Wells (Design and Construction, etc) Regulations 1996 requires the Well Operator to set up a Well Examination scheme and appoint a Well Examiner. The Well Examination Scheme and involvement of the Well Examiner is for the complete lifecycle of the well from design through to abandonment. The Well Examiner is an independent competent person who reviews the proposed and actual well operations to confirm they meet the Well Operators policies and procedures, comply with the Offshore Installations and Wells (Design and Construction, etc) Regulations 1996 and follow good industry practice. During assessment and inspection activities, HSE checks that the operator has these arrangements in place. The Well Operator’s well examination scheme requires the operator to send the following documents to his Well Examiner:

the well construction programme and any material changes to it;

reports on how the well is being constructed;

reports on how the well is being monitored; and

at the end of the well’s life, a plan for how it will be abandoned;

The Well Examiner reviews these documents to ensure the complete lifecycle of the

well is designed, constructed and operated in line with the Well Operator’s policies

and procedures, good industry practice and legal compliance.

Shale gas well operators will ask their well examiners to examine certain well integrity and fracturing operations in real time, especially during the early stages of a development, to provide a further level of independent assurance. Such periodic site visits should be made at the discretion of the examiner, in addition to assessing documentary evidence of well integrity, to observe and verify that such operations have been executed satisfactorily in accordance with the approved programme. The frequency and need for such site visits to shale gas operations would reasonably be expected to reduce with time.

B10. How are radioactive sources, such as well tools, stored and managed on site? and do such sources pose a risk to public health?

Radioactive sources are used in oil and gas exploration, but are also extensively

used throughout many other industries, including the NHS, paper and steel

manufacturing, food irradiation, medical sterilisation and the construction industry.


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Nuclear well logging tools are robustly built with almost no chance of radioactivity

release under normal oilfield operations and stringent regulatory requirements are

imposed on the transport, storage, handling, abandonment and eventual disposal of

chemical radioactive sources.

International Atomic Energy Agency (IAEA) guidelines, European Union protocols,

and national regulatory bodies prescribe standards for the handling of all radioactive

sources [IAEA, 2003a; IAEA, 2004; IAEA, 2005; EU, 2009; NRC, 1987; NRC, 1991]

to ensure their safe use. The use of ionising radioactive sources in the UK is strictly

controlled by the UK radiological regulatory framework, which includes the

Ionising Radiations Regulations 1999 enforced by HSE, as well as other legislation

enforced by the environmental regulators, Department of Health, and the Office of

Nuclear Regulation, all of which have programmes of inspection in place to

ensure compliance.

Strict security and safety procedures are used for storing these tools and special

shielded containers are used for transporting sources. Only authorised personnel

following specific rules can access sources of this nature.

In almost all cases nuclear logging tools are owned and operated by oil and gas

service companies, who are licensed to use the equipment. Operators, such as

Cuadrilla, would commission service companies to undertake well logging as and

when their operations require their use.

The use of such sources by appropriately trained personnel in accordance with the

prescribed standards will not result in any risk to public health.


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C: Seismicity

C1. What are the plans to mitigate the risk of earthquakes caused by shale gas fracking, and who is going to monitor the implementation? New controls are being introduced to mitigate the seismic risks identified following the events in Lancashire. A precautionary approach will be adopted for the fracking of the next few wells, and these operations will be subject to particularly close scrutiny to ensure that the controls are being applied correctly and that they are effective. A Hydraulic Fracturing Programme (HFP), the detailed risk assessment now required as part of DECC frac consent that also describes the control and mitigation measures for fracture containment and for any potential induced seismicity.

See UK Onshore Operators Group’s UK Onshore Shale Gas Well Guidelines [PDF, 674KB, 37 pages]

As a first step operators will be required to review the available information on faults in the area of the well to confirm that wells are not drilled into, or close to, existing faults which could provide the mechanism for triggering an earthquake. Background seismicity will then be monitored for a period of several weeks before fracking operations commence to provide a baseline against which activity detected during and after fracturing operations can be compared. Each stage of the fracking process will be carefully designed to use only the amount of fluid to fracture the rock sufficiently to allow the gas to flow. A flow-back period will be routinely incorporated into the design so that after each stage the pressure is quickly reduced to further reduce the risk of a tremor. Once fracking commences, “real time” seismic monitoring will be used to operate a “traffic-light” warning protocol under which operations will be halted and pressures immediately reduced if a seismic event of magnitude greater than ML 0.5 is detected. This magnitude is well below the energy level that could be felt at the surface, and the protocol would enable a review of the possible causes of the event and allow further steps to be taken to prevent the occurrence of larger events. (for more information on earthquake magnitudes, see the BGS site - http://www.bgs.ac.uk/downloads/start.cfm?id=661 ) Once the fracking and flow-back is complete, monitoring will continue for at least 24 hours so that any abnormal induced events amidst the normal background seismicity can be identified. Until the characteristics of fracking in a particular formation are well established, in addition to the real time monitoring described above, tiltmeters and a permanent buried seismometer system will record the usual microseismic events (of magnitude much less than ML 0.5) that accompany all fracking activity. These can be used to

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/185935/UKOOGShaleGasWellGuidelines.pdf

http://www.bgs.ac.uk/downloads/start.cfm?id=661


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establish exactly how far the fractures penetrate into the surrounding rock. This will allow the effectiveness of the fracture to be evaluated but also ensure that the size is as predicted and that the fracture has not extended further than planned, e.g, toward any near surface fresh water aquifer. The operator will be required to submit seismic data promptly to DECC and to publish up-to-date information on their website. For the first few operations in Lancashire, DECC will have an independent expert on site during shale gas fracking to observe that the protocols are followed and that the monitoring is proceeding as planned. The need for further DECC onsite observation will be reviewed after the first few wells. C2. The next shale gas wells fracked in Lancashire will be under close scrutiny, but will the strict requirements and measurement criteria be the same for fracking all shale gas wells in the future? This is a developing area of knowledge, and as experience is gained of the influence of local geology and the design, duration and volume of the fracking operation, then the protocols may be tightened or relaxed or new controls introduced, taking account of expert advice. This will ensure that seismic risks from shale gas operations are properly addressed and mitigated by the operators, and do not present any hazard to local communities. C3. The expert’s report suggests that an earthquake magnitude of ML 0.5 should be used as a traffic light threshold, but the ground movement from this magnitude of earthquake is within the range of ground motion that is the normal background caused by vehicles, trains and farming activities and smaller than the maximum ground motion regulated for other industrial and construction activities. Isn’t this too severe and likely to cause false alarms? A magnitude ML0.5 earthquake in itself is not cause for concern and is unlikely to be perceptible, but the analysis of the Lancashire data indicates they may be an indication of, or precursor to, a larger earthquake. Both the 2011 frac-induced earthquakes (magnitude ML 2.3 and ML 1.5) happened about 10 hours after the frac, with only much smaller earthquakes (magnitude ML<1) being recorded during the frac. By using earthquake monitoring algorithms supported by on-site expertise, it is possible to discriminate very small deep earthquakes from background surface-induced vibrations (10-12 such surface events have been detected per day as part of the background monitoring). As operational detection data develops from fracking operations, DECC will consider, with expert advice, the most appropriate criteria to define the threshold. C4. Will shale gas production (as against exploration) cause subsidence or earthquakes large enough to cause damage at the surface? There are no documented cases of shale gas operations, whether exploration or production, causing subsidence or earthquakes large enough to cause damage at


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the surface (although large scale re-injection of frac disposal fluids poses a recognised earthquake risk and, if proposed in the UK will be closely scrutinised). Shale gas production does not remove large quantities of rock from underground (by comparison with coal mining where subsidence does occur). The amount that shale rock changes with the extraction of gas is expected to be almost zero, so compaction and resultant subsidence would not be expected. However, prior to commercial production being approved, samples of the rock will be tested and analysis made to confirm this for the geology and production rates of the particular site identified. When gas is produced there is a change in the internal (hydrostatic) stress in the formation. This causes the rock to be subjected to an increased and variable overburden load, which can result in compaction of the rock structure, due to an increase in the ‘effective stress’. In soft or porous unconsolidated formations where subsidence has been observed, this compaction has resulted from a change of grain packing, pore and bulk volume of the reservoir rock, (for example in the soft chalk of offshore Ekofisk field or the porous sandstone of the Groningen Field in the Netherlands). The compressibility characteristic of a rock is quantified by Biot’s constant, the efficiency with which the internal pore pressure offsets the externally applied total vertical stress. Typical Biot’s values for most conventional porous reservoir rock types are 0.75 to 0.95. Biot’s constant approaches unity for high porosity reservoirs (e.g. conventional high porosity/permeability sandstone reservoirs) but approaches zero for low porosity/permeability reservoirs, such as shale. For US Devonian shales (probably the most analogous to the Bowland shale) Biot’s is often taken as zero, as the ratio of matrix to bulk compressibility is nearly one for such low porosity shales (Blanton and Teufel, 1983, Evans & Engelder 1986). Frac operations in North America are routinely monitored by both microseismic and tiltmeter measurements and no compaction issues have been documented. C5. Are there cumulative effects of shale gas fracking on the risk of induced earthquakes as more wells are fracked? There is no evidence from more than a decade of very active shale gas operations in the US to suggest any effect of this kind. However, there is long-term monitoring of seismicity in Lancashire, and analysis of the events recorded on the BGS National Earthquake Monitoring System will alert scientists and regulators to changes in the natural background seismicity of the area. An additional BGS National Earthquake Monitoring System station is being installed in Lancashire.


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C6. These recommendations are for exploration drilling and testing, but what would happen if these tests prove that a shale gas development would be commercially viable, with many wells and shale gas fracking over a period of years? For DECC to approve any Field Development Plan, the local authority must first grant planning permission in consultation with the Environment Agency (or SEPA in Scotland or Natural Resources Wales) and their assessment would consider the need for an EIA and environmental permits and address the impacts on the local community. DECC will require geophysical surveys to identify faulting so that planned wells are placed in low risk locations and well spacing would be evaluated with a view to avoid unplanned interaction between wells. Building on the experience gained during the exploration phase, controls would be in place to mitigate fracture induced earthquake risk and micro seismic monitoring would be used, when necessary, to ensure that fractures do not propagate further than planned. Although it is not expected that the cumulative fracturing or production would give rise to an increase in regional seismic activity or ground subsidence, the background seismicity of any area of development would be monitored by the permanent Earthquake Monitoring System so that any cumulative effect of fracking on seismicity would be identified quickly. C7. How were the technical experts regarding induced Seismicity selected by DECC? The three independent experts (Brian Baptie - British Geological Survey, Peter

Styles – Keele University and Chris Green – G-frac) were specifically commissioned

by DECC because of their knowledge of geology, seismicity, and fracking and their

professional independence.

C8. How will the Government ensure that seismic events caused by shale gas fracking will not impact existing critical infrastructure? The controls being put in place by DECC are designed to prevent any more earthquakes being triggered by fracking. In addition, DECC’s experts consider that the magnitude of any earthquake that could be triggered would be limited by the strength of the rocks to ML 3. This magnitude of earthquake occurs 3-4 times a year and only occasionally causes minor superficial damage. Published data for a number of UK earthquakes suggests that most events with magnitudes greater than ML 4.5, which could cause damage, tend to nucleate at depths of at least 10 km or greater, well below depths at which fracking will occur. Where there are concerns over particularly vulnerable infrastructure, the planning process requires engagement and consultation with stakeholders to ensure any concerns are suitably mitigated prior to consents being granted.


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C9. If it was determined that shale operations had caused an earthquake, what would the position in relation to liabilities be? The controls being put in place by DECC are designed to prevent any more perceptible earthquakes being triggered by fracturing. If despite this an earthquake did occur which caused damage, the operator would be liable in the normal way for any harm caused by their activities. The data available from the permanent BGS National Earthquake Monitoring System would establish whether any observed quake had been caused by shale gas operations, and enable anyone who believed that he had suffered damage to make his case for compensation from the relevant operator.


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D: AIR POLLUTION

D1. How will gas escaping into the air from both the well and shale gas fracking fluids be avoided/monitored? Waste gases, including fugitive emissions, are considered an ‘extractive waste’ under the Mining Waste Directive. Operators must develop a Waste Management Plan, which is submitted to the Environment Agency (Local planning authority in Scotland) with permit applications. The waste management plan must characterise the waste, set out details of how the operator will employ a waste hierarchy, including waste minimisation and safe disposal, as well as any monitoring. Techniques for the “completion” of wells to reduce the emissions of gases to air have been developed in the United States, this is known as ‘green completions’. The shale gas industry in the UK is in its infancy and green completion techniques are being developed based on industry best practice. The operator in Lancashire has already developed a green completions methodology. Venting and flaring are regulated by DECC as part of licence conditions. For all oil and gas activities, onshore and offshore, DECC requires that venting should be kept to the minimum that is technically possible. Routine venting is never permitted, but it is not possible to prohibit venting entirely, as in particular operational circumstances it may be necessary for safety reasons. However, the preferred alternative, where gas has to be released because there is no economic use for it, is that the gas should be flared to reduce its contribution to global warming emissions. In respect of future appraisal or production activities, DECC’s established policy is that flaring should be reduced to the economic minimum. D2. How will air pollution due to site operations be monitored locally and who is responsible? During the construction and drilling of a well the operator will monitor methane emissions at the site and this will be a permanent feature of operations should activity progress to commercial development. The Environment Agency has published research to understand how the emissions from a well can affect air quality, how they can be monitored and what controls are available. The local authority has general responsibility for local air quality and developing a strategy to improve it.


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D3. Leaks of methane from the well heads will be a major contributing factor in increasing GHG and climate change? It is essential to develop as clear a picture as we can about the environmental impact of all fossil fuels. Any emissions of methane form shale gas operations, including leakage, should be taken into account in the UK greenhouse gas inventory, and count towards UK carbon budgets and international commitments on emissions reduction. The carbon footprint of shale gas operations has been the subject of a number of reports and significant controversy. The most recent comprehensive review of the evidence, by consultants to the European Commission, (see http://ec.europa.eu/clima/policies/eccp/docs/120815_final_report_en.pdf) concluded that even on worst case assumptions, the carbon footprint of shale gas is likely to be substantially less than that of coal; and with the application of good industry practice, is likely to be only a few percentage points greater than that of conventional gas. Better data to inform future assessments is expected to emerge from studies presently being conducted by the US Environmental Protection Agency. Ultimately, emissions from shale gas extraction processes will be determined by the design and conditions of a particular development. No development has yet been proposed for the UK but any application would be required to minimise the release of methane to the atmosphere including through the adoption of green completions and the avoidance of routine venting of gas.


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E: Regulatory and monitoring responsibilities

E1. Who will regulate seismic (earthquake) risks associated with shale gas fracking?

DECC will ensure that appropriate monitoring and control arrangements to regulate seismic activity caused by shale gas fracking are agreed, before consent is granted. Operators will be required to have procedures in place to monitor, report and mitigate seismic activity caused by shale gas fracking, and a Hydraulic Fracturing Programme (HFP), the detailed risk assessment now required as part of DECC frack consent that also describes the control and mitigation measures for fracture containment and for any potential induced seismicity.

E2. Who will regulate shale gas fracking operations from an environmental perspective? Environmental aspects of shale gas fracking operations are monitored by the Environmental Regulator with jurisdiction within a geographical area within the UK (The Environment Agency in England or Natural Resources in Wales, and SEPA in Scotland). The environmental regulators adopt a risk based approach to the monitoring of environmental issues to ensure those operations that potentially pose the greatest risk are more closely scrutinized, combining their own ‘direct’ monitoring, supplemented by inspections of the operators’ reports. This approach is aligned in the same way that the environmental impacts of other industrial sectors are regulated. The conditions attached to any operator’s environmental permits will stipulate the minimum requirements for site based monitoring and reporting. E3. Who will regulate shale gas fracking operations from a safety perspective? The Health and Safety Executive monitors shale gas operations from a safety perspective. The role of HSE, in relation to shale gas, is to regulate the health and safety risks to people from these operations, as it does for any UK well construction project onshore or offshore. In doing this, HSE works closely with other regulators such as the Environment Agency (EA) and the Department of Energy and Climate Change (DECC) to share relevant information on such activities and to ensure that there are no material gaps between the safety, environmental protection and planning authorisation, and that all material concerns are addressed.


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E4. How is the health of local communities from shale gas operations being considered? The Health Protection Agency (HPA) is currently reviewing the evidence base on the health impacts of shale gas, with a particular focus on the health impacts of emissions to air, land and water. This review will identify any potential health risks, and inform both future regulation and any future health impact assessments that may be carried out. The HPA will assess the potential impact on health on a case by case basis, when approached by local authorities or industry as part of the Environmental Impact Assessment process. The current work on shale gas will help inform the HPA’s position on the potential risk presented by such operations.

The Environment Agency is the main environmental regulator for shale gas operations in England (or Natural Resources in Wales, and SEPA in Scotland). They take a risk based approach to the protection of groundwater and will only allow substances that are not hazardous to groundwater to be used for hydraulic fracturing for shale gas. They will not authorise the use of hazardous substances for shale gas fracking operations. Non-hazardous substances may be used, subject to their appropriate use and it may restrict or prohibit the use of any substances where they would pose a risk to the natural environment. The Environment Agency has recently published research on how the emissions from a well can affect air quality, how they can be monitored and what controls are available to minimise fugitive emissions. E5. Who funds the enforcement of the regulatory framework on shale gas? HSE can recover its costs from operators for assessment and inspection activities associated with an onshore well notification. Government also funds the Environment Agency’s work up to the point at which a company applies for a permit, after which the permit charge is designed to cover the cost of permitting a facility. For standard permits there is a fixed charge depending on the types of activity, for bespoke permits used on complex sites, the Environment Agency charges for time spent on the permit application on a case by case basis. DECC already recovers costs from industry for offshore environmental regulation, and is currently extending cost recovery to certain licensing activities both offshore and onshore. E6. Who will monitor the environmental aspects of shale gas operations in the UK? The Environmental Regulators adopt a risk-based approach: combining their own ‘direct’ monitoring, supplemented by inspections of the operators’ reports. This approach is aligned in the same way that the environmental impacts of other


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industrial sectors are regulated. The conditions attached to any operator’s environmental permits will stipulate the minimum requirements for site based monitoring and reporting. Planning authorities also have a responsibility for monitoring and enforcing any planning conditions attached to the planning permission. E7. Who will monitor traffic movements? Impacts from traffic movements are a relevant consideration in planning permission. Overall the local authority has general responsibility for assessing local air quality and developing a strategy to improve it. This would include the monitoring of pollution from traffic flow as a result of shale gas fracking operations. E8. What regulations govern how shale gas fracking operators comply with environmental laws? The key regulations in England and Wales are the Environmental Permitting Regulations 2010, which incorporate the requirements of a number of different pieces of legislation, such as the Mining Waste Directive, Water Framework Directive, the Groundwater Daughter Directive and the Radioactive Substances Act 1993. The Environment Agency also has the provisions of s30 and s199 of the Water Resources Act 1991 available to it. In Scotland SEPA will use the Water Environment (Controlled Activities) (Scotland) Regulations 2011 to control borehole drilling, the abstraction of water and the discharge of fracturing (fracking) fluids and other discharges to the water environment. SEPA also have powers under the Pollution Prevention and Control (Scotland) Regulations 2000 for certain activities, such as those involving refining of gas, gasification or other heat treatments, combustion, or disposal of solid or liquid wastes and powers to control any naturally occurring radioactive materials (NORM) via the Radioactive Substances Act (1993). E9. Who will regulate the disposal of flow back fluids? Flow back fluids are regarded as extractive waste under the Mining Waste Directive and may be covered by the Radioactive Substances Act 1993 if the amount of naturally occurring radioactive material exceeds specified amounts. As such their disposal will most likely require a permit from the Environmental Regulator. E10. What are the arrangements for a new round (14th) of onshore licencing? DECC plans to conduct a new round of onshore licensing (the 14th) next year, and is presently conducting the necessary Strategic Environmental Assessment.


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F: Implications for Low carbon generation and climate change

F1. Why is the UK exploring shale gas when we should be investing in low carbon energy? The UK Government has and continues to strongly support the roll-out of low carbon energy across the UK. We need a diverse energy mix including renewables, CCS, nuclear and gas. Gas generation will continue to play a major role in our electricity mix over the coming decades, alongside low-carbon technologies as we decarbonise our electricity system. Gas fired power stations are relatively cheap and quick to build, and they will also be important for providing flexibility to help balance out increasing amounts of relatively inflexible and intermittent low carbon capacity. The Government is keen to maximise indigenous production where we can - this includes shale gas. F2. Why is the UK not investing the money being used to explore Shale Gas into renewables? There are no subsides for shale gas exploration, so the Government is not “investing” in shale gas. Rather its role is to licence acreage so that operators are able to see if commercially recoverable amounts exist; and to ensure that those operations are conducted safely and without harm to the community and environment. F3. We should be making our existing assets more efficient and integrate low carbon energy into all developments? The Government’s energy and climate change goals are to deliver secure energy on the way to a low carbon energy future and drive ambitious action on climate change. To achieve this, it is critical that we address security of energy supply and climate change challenges while maximising benefits, including economic benefits investment that creates jobs and tax receipts. F4. Exploiting shale gas will only continue the UKs addiction to fossil fuels? The Government is committed to a diverse, efficient and low-carbon energy supply, but this cannot be achieved overnight. Oil and gas supply two thirds of our energy today, and will continue to be of substantial importance for many years to come. We have robust regulatory systems in the UK to protect the environment and ensure safe working. We think it is very much in Britain’s interests for as much as possible of our future oil and gas supplies to be produced here, rather than in other countries which may not maintain the same standards.


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So we believe it is vital that we do all we can to maximise economic recovery of our indigenous hydrocarbon reserves and we think it is right to encourage industry to continue to invest in exploration, development and production whilst maintaining high standards of management and minimising environmental impacts. F5. Why would the UK exploit shale gas when it is clearly not aligned to managing global warming? Shale gas production would in the first place replace declining offshore gas production and reduce reliance on external supplies. Beyond that point, use of gas could displace use of coal in generation, with a positive effect on GHG reduction (provided fugitive emissions are subject to proper controls as outlined above). The Government is committed to meeting its legally binding target to cut emissions by at least 80% by 2050 and its renewable energy target by 2020. We need a diverse energy mix in the UK, including renewables, CCS, nuclear and gas generation. F6. Investment in shale gas must be at the expense of investment in low carbon? It is too early to say whether shale gas will be able to contribute significantly to our sources of gas supplies for the future. But the recently published Gas Generation Strategy confirms that the Government sees a significant role for gas into the future; while continuing development of low carbon supply will be essential to meeting our targets for renewables and wider climate change goals.


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G: Planning and local environmental impacts

G1: How will local issues (visual impact, traffic movements, natural environment etc) be taken into account where shale gas fracking is proposed? Proposals for shale gas fracking in exploration and development wells will require planning permission from the relevant planning authority. The National Planning Policy Framework requires planning authorities to assess applications for all minerals developments, including oil and gas developments, so as to ensure that permitted operations do not have unacceptable adverse impacts on the natural or historical environment or on human health, including from noise, dust, visual intrusion, or migration of contamination from the site. In doing so, they should take into account the cumulative effects of multiple impacts from individual sites and/or a number of sites in a locality. The National Planning Policy Framework makes it clear that the phases of development - exploration, appraisal and production - of on-shore oil and gas extraction (including unconventional sources such as shale gas) should be clearly distinguished. Planning applications for each stage are subject to consultation with the local community and with relevant statutory consultation bodies such as the Environmental Regulator before the mineral planning authority/local planning authority takes a decision. Furthermore the applicant is required to provide sufficient information that is relevant, necessary and material to the proposed development. Shale gas wells, whether for exploration or production, are subject to the environmental impact assessment regime established by the EIA Directive. The EIA Directive is transposed into English law through the Town and Country Planning (Environmental Impact Assessment) Regulations 2011. Similar regulations apply in the Devolved Administrations. Under the Regulations, all deep drilling operations, including shale gas wells, will be screened by the local planning authority to assess whether they are likely to have any significant effects on the environment. Where significant effects are identified, an environmental statement will need to be submitted to the relevant planning authority before the planning application is consulted on and considered. Guidance on the role of planning system in handling applications for all phases of development may be found on GOV.UK

G2. What has the Government set as the minimum distance that shale gas fracking can take place from populated areas? There is no set minimum distance for any industrial activity from populated areas. Planners are asked to assess the environmental effects of each application on a case-by-case basis.

https://www.gov.uk/government/publications/planning-practice-guidance-for-onshore-oil-and-gas


34

G3. Who is responsible for monitoring and managing any long-term aspects of shale gas fracking. e.g. when shale gas extraction has ceased?

The planning authority will monitor the restoration of the site to its previous use once operations have ceased. The restoration of sites will be the subject of planning conditions imposed as part of any planning consent.

The procedures for abandoning a well are designed to ensure that all fluids will be it is permanently contained sealed. In addition, DECC is in discussion with the industry on how introducing arrangements to ensure that, for a defined period after abandonment of a well, the operator will conduct suitable monitoring monitor the groundwater and the air in the vicinity of the abandoned well. G4. How will the Government ensure that communities do not suffer ‘property blight’, or higher insurance, as a result of hydraulic fracturing activities and what mechanisms exist for compensating people who suffer property damage due to seismic events caused by Hydraulic Fracturing? There is no reason to expect that the current phase of exploration activities will have any adverse effect on property values in the vicinity of the activities. There has been no evidence of any such effect in the UK to date, in over half a century of oil and gas exploration and production, though the impacts on health, local amenity, traffic movements, etc., are expected to be broadly similar; and the activities will be subject to the same robust safety and environmental regime, supplemented by new controls against seismic risks.

The scale and character of any future phase of shale gas production in the UK is at present unknown, and its impacts, including impacts on health, local amenity, etc. will of course be fully considered through the planning process before any such project can proceed.

G5. Who will monitor the impacts of shale gas fracking activity on agriculture? There is no reason to expect any impacts on agriculture, and no plausible mechanism for such an impact has been proposed. Until some such possible threat has been identified, no monitoring activity would be meaningful or justified. G6. If agricultural activity is impacted by fracking activity, who will compensate the landowners? Any farmer who believes his activities have been adversely affected should seek compensation from the relevant operator.


35

G7. What if fracking has come up on the conveyancy searches completed when buying a house?

Conveyancy services will compile reports that list information of interest for a particular site, and their reports may include the words “licence” and “fracking”. This should not be taken to mean that fracking or any other oil and gas activity is either happening or imminent at that site.

Please note that DECC cannot undertake to enter into correspondence about individual conveyancing cases; furthermore DECC is under no obligation to provide information that is already publicly available or which should be sought elsewhere, or to speculate about licensees’ future plans.

© Crown copyright 2013

Department of Energy & Climate Change

3 Whitehall Place

London SW1A 2AW

www.gov.uk/decc

URN

Leeds, 16 April 2013

Fracking – issues and opportunities°

Agenda, Speaker Profiles and Slides

Agenda°

Fracking – issues and opportunities

Manchester, 16 April 2013

8.30am Registration and Breakfast

8.45am Introduction

8.50am Seminar:

◦ Description of the fracking process; its history in the US and here; issues and

opportunities; the current licensing regime. Adam Nell, Director, DWF LLP

◦ Planning issues. Jo Hannah, Associate, DWF LLP

◦ Fracking: Environmental Regulation & Compliance.

Gary Smith, Director, DWF LLP

10.00am End and Networking

Please visit our Linked in group: DWF - Legal Help With Shale Gas Fracking Issues UK, a

discussion of legal issues for landowners, local government and other interested parties arising from

hydraulic fracturing for shale gas in the United Kingdom. This group is regularly updated and a good

way to stay current within this fast-moving area.

http://www.linkedin.com/groups?gid=4548549&trk=hb_side_g

Speaker Profiles°

Adam Nell, Director

DWF LLP

Adam is a member of DWF’s Energy & Infrastructure Sector Group and a

Director in DWF's Construction team in London, specialising in construction

and engineering disputes. He has extensive experience of all types of dispute

resolution procedures, ranging from litigation and arbitration through statutory

adjudication to ADR techniques such as mediation, conciliation, expert

determination and dispute boards.

Adam has acted for a large number of blue chip national and international

clients in the petrochemical, rail, engineering, nuclear, construction, marine

and automotive sectors.

Most of his matters have been construction or project disputes, but he has

additional experience of computer disputes, M&A disputes and complex, large-

scale yacht construction disputes. Many of his disputes have involved cross-

border issues and the application of a number of different systems of law.

Adam also undertakes elements of non-contentious construction work,

particularly in relation to the NEC and FIDIC forms of contract. He is also

experienced in all the main sets of commercial arbitration rules, including

UNCITRAL, LCIA and ICC rules.

Adam is a graduate of Oxford University and a member of the Society of

Construction Law and an Associate of the Chartered Institute of Arbitrators.

Real Estate

DD +44 (0)207 645 9617 M +44 (0)7912 599 627 E [email protected]

Jo Hannah, Associate

DWF LLP

Jo Hannah is a senior member of our Planning team and has a wealth of

experience of working for the public and the private sector. Before joining

private practice she was head of the Planning and Technical Legal Team at

Trafford Metropolitan Borough Council.

Jo has experience of a wide range of planning, highways, compulsory

purchase and other public law matters including:

• Advising on major regeneration schemes including advice on the adequacy

of the Environmental Impact Assessment, appeals against a refusal of

planning permission including public inquiries, drafting and negotiation of

complex S106 Agreements.

• Drafting and negotiating Agreements under S38 and S278 of The Highways

Act 1980 and obtaining Stopping Up and Diversion Orders under S247 and

S257 of the Town & Country Planning Act 1990 and S116 and S119 of the

Highways Act 1980.

• Advising acquiring authorities on their powers of compulsory acquisition and

preparing the necessary documentation for making the compulsory purchase

order. Jo also advises acquiring authorities and claimants on objecting to

compulsory purchase orders and compensation claims.

• Advising on objecting to applications to have land registered as a town or

village green and the associated local inquiries. Also advising on objecting

to applications to have footpaths included on the definitive map. (both of the

above are used by objectors to development, to try to delay or prevent

development).

Real Estate


Gary Smith, Director

DWF LLP

Gary specialises in regulatory crime i.e. environmental, health and safety,

trading standards and food safety offences. This extends from the point of

initial investigation, through to recorded interviews under caution and

advocacy at court.

A background consisting of both private practice and public sector (various

local authorities and the Environment Agency) place Gary in a unique position

of having worked both sides of the fence; experience that has proved

invaluable to clients in dealing with regulators.

Notable cases include:

representing a charity of which Princess Anne is the patron in relation to a

salmonella outbreak that had been caused by the use of non pasteurised

egg whites

presenting due diligence arguments for many national food manufacturers

in relation to excess packaging and trade description allegations

advising a major frozen poultry producer in relation to an investigation by

the BBC's Panorama programme

representing a company in relation to the second only prosecution In

England for Corporate Manslaughter

both prosecuting a particular confectionary manufacturer for breaching a

consent limit then defending them on the basis that the same consent was

invalid

acting for a multi-national chemical company in a prosecution by the

Environment Agency following a discharge of hydrochloric acid into a SSSI

Regulatory


www.dwf.co.uk

©DWF LLP 2012

DWF LLP is a limited partnership registered in England and Wales with registered number OC328794.

The content of the Regulatory and Licensing Insert does not constitute legal advice and should not

be relied on as such. Specific advice should be sought about your specific circumstances.

Go further°

DWF is the business law firm with industry insight.

Our legal experts combine real commercial understanding

and deep sector knowledge to help clients anticipate issues,

create opportunities and get the outcomes they need.

We’ll deliver the results that help you go in the right direction –

wherever you are.

Planning practice guidance for onshore oil and gas

July, 2013 Department for Communities and Local Government

© Crown copyright, 2013 Copyright in the typographical arrangement rests with the Crown. You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or e-mail: [email protected]. This document/publication is also available on our website at www.gov.uk/dclg Any enquiries regarding this document/publication should be sent to us at: Department for Communities and Local Government Eland House Bressenden Place London SW1E 5DU Telephone: 030 3444 0000 July 2013 ISBN: 978-1-4098- 3960-6

http://www.nationalarchives.gov.uk/doc/open-government-licence/

mailto:[email protected]

1

What is the purpose of this guidance? 1. Mineral resources are concentrations of minerals which can be removed from the

earth’s crust, whether by underground or surface working, in an economically viable and environmentally acceptable manner for use by society. They make an essential contribution to the country’s prosperity and quality of life.

2. Oil and gas (hydrocarbons) underpin key aspects of modern society, supplying energy

to power industry and heat homes, fuel for transport to carry goods and people all over the world, and raw materials to produce everyday items. Hydrocarbons remain an important part of the UK’s energy mix whilst the country transitions to low carbon energy supplies.

3. This guidance provides advice on the planning issues associated with the three phases

of extraction of hydrocarbons. It will be kept under review and should be read alongside other planning guidance and the National Planning Policy Framework.

4. This guidance is not intended to replace the need for judgement by minerals planning

authorities and those making planning applications. Nor is it intended to be a source of definitive legal advice. Those seeking to make applications for oil and gas development, or taking decisions on such applications, are responsible for obtaining and acting on their own legal advice.

Planning Policy on Hydrocarbons 5. Paragraphs 142 to 149 of the National Planning Policy Framework set out minerals

planning policy. It makes clear that minerals planning authorities should identify and include policies for extraction of mineral resource of local and national importance in their area. This includes both conventional hydrocarbons and unconventional hydrocarbons such as shale gas and coalbed methane (see Annex A). It also expects minerals planning authorities to ensure that mineral extraction does not have an unacceptable adverse impact on the natural or historic environment or human health. Unconventional hydrocarbons are emerging as a form of energy supply, and there is a pressing need to establish – through exploratory drilling - whether or not there are sufficient recoverable quantities of unconventional hydrocarbons present to facilitate economically viable full scale production.

2

Why is there a separate minerals planning process? 6. Planning for the supply of minerals, including hydrocarbons, has a number of special

characteristics that are not present in other forms of development:

• minerals can only be worked (i.e. extracted) where they naturally occur, so location options for the economically viable and environmentally acceptable extraction of minerals may be limited. This has implications for the preparation of local minerals plans;

• working is a temporary use of land, although it often takes place over a long period of time;

• working may have adverse and positive environmental effects, but most adverse effects can be mitigated;

• since extraction of minerals is a continuous process of development, there is a requirement for routine monitoring, and if necessary, enforcement to secure compliance with conditions that are necessary to mitigate impacts of mineral working operations; and

• following working, surface land should be restored to make it suitable for beneficial after-use; and

7. The minerals planning authority is the County Council in two-tier parts of the country,

the Unitary Authority, or the National Park Authority. 8. Onshore extraction of hydrocarbons may only take place if the operator has first

obtained a petroleum licence and subsequently obtained both planning permission and other necessary permits and approvals.

The Phases of onshore hydrocarbon extraction What are the phases of onshore hydrocarbon extraction? 9. There are three phases of onshore hydrocarbon extraction: exploration, testing

(appraisal) and production. When is planning permission required for the extraction of hydrocarbons?

10. Planning permission is required for each phase of hydrocarbon extraction, although some initial seismic work may have deemed planning consent under Part 2 of Schedule 22 to the Town and Country Planning (General Permitted Development) Order 1995 (see http://www.legislation.gov.uk/uksi/1995/418/schedule/2/made)

http://www.legislation.gov.uk/uksi/1995/418/schedule/2/made

3

i) Exploratory phase What is the exploratory phase of hydrocarbon extraction? 11. The exploratory phase seeks to acquire geological data to establish whether

hydrocarbons are present. It may involve seismic surveys, exploratory drilling and, in the case of shale gas, hydraulic fracturing.

What geological data will operators collect before carrying out any exploratory drilling? 12. It is a matter for individual operators to determine how much preliminary data is

necessary before undertaking exploratory drilling. However, preliminary data which the operator might obtain to consider the most appropriate locations for exploratory drilling include:

• existing geological and other relevant data to gather information about rock

formations under the earth’s surface; • information from earlier drilling for oil, water, coal or other minerals and mining or

quarrying activities; • information on aquifers and groundwater resources; seismic reflection, gravity

and magnetic surveys and remote sensing data e.g. satellite photographs, and results of previous seismic surveys.

Why carry out seismic surveys? 13. Seismic surveys are essential to understand the structure under the earth’s surface

and be able to predict the depths of the key target formations. Operators will often wish to conduct new surveys with the latest technology, even where previous survey data exists. Among other things, this helps to determine the most promising target for drilling.

How long does exploratory drilling last? 14. For conventional hydrocarbons, exploration drilling onshore is a short-term, but

intensive, activity. Typically, site construction, drilling and site clearance will take between 12 to 25 weeks.

15. For unconventional hydrocarbons exploratory drilling may take considerably longer, especially if there is going to be hydraulic fracturing and, in the case of coalbed methane, removing water from the coal seam.

ii) Appraisal Phase What is the appraisal phase of hydrocarbon extraction? 16. The appraisal phase takes place following exploration when the existence of oil or gas

has been proved, but the operator needs further information about the extent of the deposit or its production characteristics to establish whether it can be economically exploited.

4

What does the appraisal phase involve? 17. The appraisal phase can take several forms including additional seismic work, longer-

term flow tests, or the drilling of further wells. This may involve additional drilling at another site away from the exploration site or additional wells at the original exploration site. For unconventional hydrocarbons it may involve further hydraulic fracturing followed by flow testing to establish the strength of the resource and its potential productive life. Much will depend on the size and complexity of the hydrocarbon reservoir involved.

iii) Production phase What is the production phase of hydrocarbon extraction? 18. The production phase normally involves the drilling of a number of wells. This may be

wells used at the sites at the exploratory and/or appraisal phases of hydrocarbon development, or from a new site. Associated equipment such as pipelines, processing facilities and temporary storage tanks are also likely to be required.

How will any additional sites for appraisal or production be determined? 19. Any additional sites, following exploration, will be selected by the operator taking

account of what they have learnt or discovered through previous phases. In doing so, they should take also account of their ability to access the resource whilst seeking to minimise or avoid any adverse environmental and amenity issues.

What is the production life of an oil or gas field? 20. Production life of an oil or gas field can be up to 20 years, possibly more. When

production ceases, the facilities should be dismantled and the sites restored to their former use, or, in some circumstances, an appropriate new use.

Planning for hydrocarbon extraction How should mineral planning authorities plan for hydrocarbon extraction? 21. Mineral planning authorities are encouraged to make appropriate provision for

hydrocarbons in local minerals plans through:

• use of published data on information on the location of conventional and unconventional hydrocarbons, for example: https://www.gov.uk/oil-and-gas-onshore-exploration-and-production;

• use of ordnance survey based proposals maps; and • available data on existing wells.(see

https://www.og.decc.gov.uk/pls/wons/wdep0100.qryWell)

https://www.gov.uk/oil-and-gas-onshore-exploration-and-production

https://www.gov.uk/oil-and-gas-onshore-exploration-and-production

https://www.og.decc.gov.uk/pls/wons/wdep0100.qryWell

5

This approach will allow minerals planning authorities to highlight areas where proposals for hydrocarbon extraction may come forward, as well as managing potentially conflicting objectives for use of land.

In what areas can hydrocarbon extraction take place? 22. The exploratory, appraisal or production phase of hydrocarbon extraction can only take

place in areas where the Department of Energy and Climate Change have issued a licence under the Petroleum Act 1998 (Petroleum Licence). Details of licensed areas may be found at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/205261/landfield_lics.pdf

What are minerals planning authorities expected to include in their local plans on hydrocarbons?

23. Where minerals planning authorities consider it is necessary to update their local plan,

they are expected to include the following:

• Petroleum Licence Areas on their proposals maps; • Criteria-based policies for each of the exploration, appraisal and production

phases of hydrocarbon extraction. These policies should set clear guidance and criteria for the location and assessment of hydrocarbon extraction within the Petroleum Licence Areas.

Can mineral planning authorities include site-specific locations in their local plans? 24. Existing hydrocarbon extraction sites should be identified in local plans where

appropriate, and minerals planning authorities may include specific locations should the onshore oil and gas industry wish to promote specific sites.

Should minerals planning authorities be safeguarding areas for the extraction of hydrocarbons? 25. There is normally no need to create mineral safeguarding areas specifically for

extraction of hydrocarbons given the depth of the resource, the ability to utilise directional drilling and the small surface area requirements of well pads.

The Planning Application Process What is the role of planning in obtaining permissions for drilling wells? 26. Planning permission is one of the main regulatory requirements that operators must

meet before drilling a well, for both conventional and unconventional hydrocarbons. A flow chart setting out the process for drilling an exploratory well, and how these regulatory regimes interact, is set out at Annex B.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/205261/landfield_lics.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/205261/landfield_lics.pdf

6

Who are the key regulators for hydrocarbon extraction? 27. The key regulators for hydrocarbon extraction are:

a) Department of Energy and Climate Change – issues Petroleum Licences, gives consent to drill under the Licence once other permissions and approvals are in place, and have responsibility for assessing risk of and monitoring seismic activity, as well as granting consent to flaring or venting; b) Minerals Planning Authorities – grant permission for the location of any wells and wellpads, and impose conditions to ensure that the impact on the use of the land is acceptable; c) Environment Agency – protect water resources (including groundwater aquifers), ensure appropriate treatment and disposal of mining waste, emissions to air, and suitable treatment and manage any naturally occurring radioactive materials; and d) Health and Safety Executive - regulates the safety aspects of all phases of extraction, in particular responsibility for ensuring the appropriate design and construction of a well casing for any borehole.

What other bodies may be involved in the process of consenting hydrocarbon extraction? 28. Other bodies which may be involved in the consenting of the process include:

a) the Coal Authority, whose permission will be required should drilling go through a coal seam; b) Natural England, who may need to issue European Protected Species Licences in certain circumstances; c) the British Geological Survey, who need to be notified by licensees of their intention to undertake drilling and, upon completion of drilling, must also receive drilling records and cores; and d) Hazardous Substances Authorities, who may need to provide hazardous substances consents. There may also be additional consents and orders, such as stopping up rights of way or temporary road orders, which must be obtained.

7

What is the relationship between planning and other regulatory regimes? 29. The Planning and other regulatory regimes are separate but complementary. The

planning system controls the development and use of land in the public interest and, as stated in paragraphs 120 and 122 of the National Planning Policy Framework, this includes ensuring that new development is appropriate for its location taking account of the effects (including cumulative effects) of pollution on health, the natural environment or general amenity, and the potential sensitivity of the area or proposed development to adverse effects from pollution. In doing so the focus of the planning system should be on whether the development itself is an acceptable use of the land, and the impacts of those uses, rather than any control processes, health and safety issues or emissions themselves where these are subject to approval under other regimes. Minerals planning authorities should assume that these non-planning regimes will operate effectively.

What are the principal environmental issues of hydrocarbon extraction that should be addressed by minerals planning authorities? 30. The principal issues that mineral planning authorities should address, bearing in mind

that not all issues will be relevant at every site, to the same degree, include:

• noise associated with the operation • dust • air quality • lighting • visual intrusion into the local setting and the wider landscape caused by any the

placement of any building or structure within the application site area • landscape character • archaeological and heritage features • traffic • risk of contamination to land • soil resources • the impact on best and most versatile agricultural land • flood risk • land stability/subsidence • internationally, nationally or locally designated wildlife sites, protected habitats and

species, and ecological networks • nationally protected geological and geomorphological sites and features • site restoration and aftercare

8

What hydrocarbon issues can minerals planning authorities leave to other regulatory regimes? 31. Some issues may be covered by other regulatory regimes but may be relevant to

minerals planning authorities in specific circumstances. For example, the Environment Agency has responsibility for ensuring that risk to groundwater is appropriately identified and mitigated. Where an Environmental Statement is required, minerals planning authorities can and do play a role in preventing pollution of the water environment from hydrocarbon extraction, principally through controlling the methods of site construction and operation, robustness of storage facilities, and in tackling surface water drainage issues.

32. There exist a number of issues which are covered by other regulatory regimes and

minerals planning authorities should assume that these regimes will operate effectively. Whilst these issues may be put before minerals planning authorities, they should not need to carry out their own assessment as they can rely on the assessment of other regulatory bodies. However, before granting planning permission they will need to be satisfied that these issues can or will be adequately addressed by taking the advice from the relevant regulatory body:

• Mitigation of seismic risks – the Department of Energy and Climate Change is

responsible for controls, usually through the licence consent regime, to mitigate seismic risks. Seismic assessment of the geology of the area to establish the geological conditions, risk of seismic activity and mitigation measures to put in place is required by the Department of Energy and Climate Change for all hydraulic fracturing processes;

• Well design and construction – the Health and Safety Executive are responsible for

enforcement of legislation concerning well design and construction. Before design and construction operators must assess and take account of the geological strata, and fluids within them, as well as any hazards that the strata may contain;

• Well integrity during operation – under health and safety legislation the integrity of

the well is subject to examination by independent qualified experts throughout its operation, from design through construction and until final plugging at the end of operation;

• Operation of surface equipment on the well pad – whilst planning conditions may be

imposed to prevent run-off of any liquid from the pad, and to control any impact on local amenity (such as noise), the actual operation of the site’s equipment should not be of concern to minerals planning authorities as these are controlled by the Environment Agency and the Health and Safety Executive;

• Mining waste – the Environment Agency is responsible for ensuring that extractive

wastes do not harm human health and the environment. An environmental permit is required for phases of hydrocarbon extraction and this will require the operator to produce and implement a waste management plan;

• Chemical content of hydraulic fracturing fluid – this is covered by the environmental

permit as operators are obliged to inform the Environment Agency of all chemicals that they may use as part of any hydraulic fracturing process;

9

• Flaring or venting of any gas produced as part of the exploratory phase will be subject to Department of Energy and Climate Change controls and will be regulated by the Environment Agency. Minerals planning authorities will, however, need to consider how issues of noise and visual impact will be addressed;

• Final off-site disposal of water – Water that comes back to the surface following

hydraulic fracturing may contain naturally occurring radioactive materials. Whilst storage on-site and the traffic impact of any movement of water is of clear interest to local authorities, it is the responsibility of the Environment Agency to ensure that the final treatment/disposal at suitable water treatment facilities is acceptable

• Well decommissioning/abandonment – following exploration, the well is likely to

suspended and abandoned for a period of time. Health and Safety Legislation requires its design and construction that, so far as reasonably practicable, there is no unplanned escape of fluids from it. The minerals planning authority is responsible for ensuring the wells are abandoned and the site is restored.

A) Development Management procedures How can pre-application engagement improve the efficiency and effectiveness of the planning application system? 33. Pre-application engagement between the prospective operator and other interested

parties offers significant potential to improve both the efficiency and effectiveness of the planning application system. This can be achieved by:

• providing an understanding of the relevant planning policies and other material

considerations associated with the relevant phase of hydrocarbon extraction; • working collaboratively and openly with interested parties at an early stage to

identify, understand and seek to resolve issues associated with the relevant phase of hydrocarbon development;

• providing an opportunity for the prospective mineral operator to demonstrate they are aware of and utilise the latest techniques;

• where relevant, discussing possible mitigation of the local impact of the proposed phase of hydrocarbon extraction including any proposals for subsequent restoration and aftercare; and

• identifying and agreeing the information required to accompany a formal planning application, thus reducing the likelihood of delays at the validation stage. This may include whether an Environmental Impact Assessment is required.

The approach to pre-application engagement needs to be tailored to the phase of hydrocarbon extraction and the issues to be addressed.

Who can be involved at the pre-application stage? 34. Pre-application engagement is a collaborative process between the prospective

operator and other parties which may include: the minerals planning authority; statutory and non-statutory consultees; elected members; and local people. Each party involved has an important role to play in ensuring the efficiency and effectiveness of pre-application engagement.

10

What information does a prospective applicant need to provide to the minerals planning authority at pre-application stage? 35. It is important to see the pre-application stage, between the minerals planning

authority and the prospective operator, as a two-way process. It is recognised that the level of information necessary for effective pre-application engagement will vary depending on the phase of hydrocarbon extraction. In all cases, the level of information requested by the minerals planning authority needs to be proportionate to the phase of hydrocarbon extraction and the relevant stage of the operator in considering a site for extraction. At the stage of detailed discussion, a prospective operator would not necessarily be expected to provide all of the information that would accompany a formal planning application, but it needs to be sufficient information to allow the minerals planning authority to take an informed view.

What role do statutory and non-statutory consultees have at the pre-application stage? 36. Statutory consultees for planning applications play an important role at the pre-

application stage of hydrocarbon extraction since they will be involved in providing advice to the minerals planning authority on a formal planning application. In the case of hydrocarbon extraction, relevant non-statutory consultees such as the Health and Safety Executive also play an important role. Pre-application discussions with statutory and relevant non-statutory consultees may also provide prospective operators with an opportunity to share information that may be relevant to obtain other permits and licences. The Environment Agency strongly recommends that prospective operators undertake pre-planning and pre-permitting discussions with them.

What can a prospective minerals operator expect from the minerals planning authority at the pre-application stage? 37. A prospective operator can expect a clear, timely and authoritative view on the merits

of a proposal to extract hydrocarbons, as well as clear advice on consultation requirements and the information to be submitted with a formal planning application.

Should planning performance agreements be used for hydrocarbon extraction? 38. Minerals planning authorities and operators should seriously consider planning

performance agreements where they consider the size and complexity of any proposed extraction justifies such an agreement being drawn up.

What is required to make a valid application for planning permission? 39. The submission of a valid application for planning permission requires:

• a completed application form; • compliance with national information requirements; • the correct application fee; and • provision of local information requirements

11

What are the national information requirements? 40. An application for planning permission for hydrocarbon extraction must be

accompanied by:

• Plans and drawings; • Ownership Certificate and Agricultural Land Declaration; • Design and Access Statements (where required).

What plans and drawings must be submitted with a planning application? 41. Prospective mineral operators will need to submit the plans and drawings required by

article 6 of the Town and Country Planning (Development Management Procedure) (England) Order 2010. Any plans or drawings must be drawn to an identified scale and plans must show the direction of north. Any location plan should be based on an up-to-date map and wherever possible scaled to fit onto A4 or A3 size paper. In some cases additional plans and drawings may be requested by the minerals planning authority through their local list of information requirements.

What is an ownership certificate? 42. A certificate which prospective minerals operators must complete that provides certain

details about the ownership of the application site and confirms that an appropriate notice has been served on any other owners (and agricultural tenants).

43. An application is not valid, and therefore cannot be decided by the minerals planning

authority, unless the relevant certificate has been completed. It is an offence to complete a false or misleading certificate, either knowingly or recklessly, with a maximum fine of up to £5,000.

What is the Government’s policy on local information requirements? 44. As stated in paragraph 193 of the National Planning Policy Framework, minerals

planning authorities should publish a list of their information requirements for applications, which should be proportionate to the nature and scale of development proposals and reviewed on a frequent basis. Minerals planning authorities should only request supporting information that is relevant, necessary and material to the application in question.

Can minerals planning authorities request information that must be provided with a planning application when it is submitted? 45. A minerals planning authority may request supporting information but only if its

requirements are specified on a formally adopted ‘local list’ which is published on its website.

12

Can minerals planning authorities request any information from its local list? 46. The local list is prepared by the minerals planning authority to clarify what information

is usually required for applications of a particular type, scale or location. 47. In addition to being specified on an up-to-date local list published on the minerals

planning authority’s website, information requested with a particular planning application must be:

• reasonable having regard, in particular, to the nature and scale of the proposed

development; and • about a matter which it is reasonable to think will be a material consideration in the

determination of the application. What issues should minerals planning authorities include on their local list for exploration of hydrocarbons? 48. Minerals planning authorities should normally expect to include on their local list those

issues for which they are, or may be responsible, for assessing, when dealing with planning applications for exploratory hydrocarbon development. This list should be consistent with the spirit of this guidance.

What constitutes an application for an exploratory well? 49. The precise nature of what is included in an application for exploration will depend in

part on the applicant. The applicant and DECC will already have agreed a work programme which might include acquisition of seismic data and one or more exploratory wells as part of the exploration licence application.

50. All exploratory phases will involve drilling vertically downwards, perhaps including

directional drilling. However, the exploratory phase may include horizontal drilling once the appropriate rock formation is reached, and for unconventional hydrocarbons – hydraulic fracturing.

Can vertical and horizontal drilling, including hydraulic fracturing, be included in one application for exploratory drilling? 51. As far as it is practical to do so, any application for exploratory drilling should cover as

much of the exploratory activity as possible, including the likely number of wellheads and extent of drilling, to avoid further planning applications at a later date.

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B) Environmental Impact Assessment When is an Environmental Impact Assessment required for hydrocarbon extraction? 52. The minerals planning authority should carry out a screening exercise to determine

whether any proposal for onshore oil and gas extraction requires an Environmental Impact Assessment. A flow chart summarising the screening process is set out at Annex C.

53. Applications for the exploratory and appraisal phases will fall under Schedule 2 to the

Town and Country planning (Environmental Impact Assessment) Regulations 2011 if they exceed the applicable threshold or any part of the development is to be carried out in a sensitive area An Environmental Impact Assessment is only required if the project is likely to have significant environmental effects.

54. Whilst all applications must be assessed on a case-by-case basis, it is unlikely that an

Environmental Impact Assessment will be required for exploratory drilling operations which do not involve hydraulic fracturing unless the well pad is located in site which is unusually sensitive to limited disturbance occurring over the short period involved.

55. Applications for the production phase are also likely to fall under paragraph 2 of

Schedule 2 to the 2011 Regulations, in which cases they should be screened for likely significant effects, but applications where more than 500 tonnes of oil or 500,000 cubic metres of gas will be extracted per day may fall under Schedule 1, in which case an Environmental Impact Assessment is mandatory.

When should an operator assess cumulative effects? 56. Each application (or request for a screening opinion) should be considered on its own

merits. There are occasions where other existing or approved development may be relevant in determining whether significant effects are likely as a consequence of a proposed development. The minerals planning authority should always have regard to the possible cumulative effects arising from any existing or approved phases of hydrocarbon extraction. There could also be circumstances where two or more applications should be considered together. For example, where the applications in question are not directly in competition with one another, so that both or all of them might be approved, and where the overall combined environmental impact of the proposals might be greater or have different effects than the sum of their separate parts.

57. It is unlikely that cumulative impact will be an issue at the exploration phase of

development, regardless of how close individual well pads are to each other.

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Should minerals planning authorities take account of the environmental effects of the production phase of hydrocarbon extraction at the exploration phase? 58. Individual applications for the exploratory phase should be considered on their own

merits. They should not take account of hypothetical future activities for which consent has not yet been sought, since the further appraisal and production phases will be the subject of separate planning applications and assessments.

59. When determining applications for subsequent phases, the fact that exploratory drilling

has taken place on a particular site is likely to be material in determining the suitabilty of continuing to use that site only insofar as it establishes the presence of hydrocarbon resources.

Can information used in complying with other regulatory regimes be used to inform an environmental statement? 60. Yes, information prepared as part of the high level environmental risk assessment or

the preparation of the environmental permit (where required) may be used to inform, or be included as part of the environmental statement.

What is the area that an Environmental Impact Assessment must cover? 61. An Environmental Impact Assessment must cover the geographical area where the

impacts occur, both above and below ground. This is likely to be a broader area than the application area.

How can the mineral operator seek advice on what issues should be covered by an Environmental Impact Assessment? 62. The mineral operator can ask the minerals planning authority for its formal opinion

(scoping opinion) on the information to be supplied in the Environmental Statement. This allows the planning authority to clarify what it considers the main effects of development are likely to be and, therefore, the aspects on which the applicant’s Environmental Statement should focus.

What aspects of the environment need to be considered? 63. The list of aspects of the environment which might be significantly affected by a

development is set out in paragraph 3 of Schedule 4 to the Town and Country Planning (Environmental Impact Assessment) Regulations 2011, and includes human beings; flora; fauna; soil; water; air; climate; landscape; material assets, including architectural and archaeological heritage; and the interaction between them. Among other things, consideration should also be given to the likely significant effects of the development on the environment resulting from the use of natural resources, the emission of pollutants, the creation of nuisances and the elimination of waste. In addition to the direct effects of a development, the Environmental Statement should also describe indirect, secondary, cumulative, short, medium and long-term, permanent and temporary, positive and negative effects where they are significant. These are comprehensive lists, and a particular project is unlikely give rise to all of these effects,

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and should only require full and detailed assessment, of those impacts which are likely to be significant.

What are the legal obligations on minerals planning authorities and operators with regard to European sites designated under the Birds or Habitats Directives and Sites of Special Scientific Interest? 64. Guidance on the law affecting European sites and Sites of Specific Scientific Interest is

being prepared by Defra (http://www.defra.gov.uk/habitats-review/) and will replace the advice previously set out in Circular 06/05: Biodiversity and Geological Conservation (https://www.gov.uk/government/publications/biodiversity-and-geological-conservation-circular-06-2005).

C) Determining the planning application Do minerals planning authorities need to assess demand for, or consider alternatives to oil and gas resources when determining planning applications? 65. Mineral planning authorities should not consider demand for, or consider alternatives

to, oil and gas resources when determining planning applications. Government energy policy makes it clear that energy supplies should come from a variety of sources. This includes onshore oil and gas, as set out in the Government’s Annual Energy Statement, which is found at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/65633/7086-annual-energy-statement-2012.pdf

What weight should be given to economic need in planning decisions? 66. Mineral extraction is essential to local and national economies. As stated in paragraph

144 of the National Planning Policy Framework, minerals planning authorities should give great weight to the benefits of minerals extraction, including to the economy, when determining planning applications.

How should mineral operators seek to minimise the impact of development upon properties and the local environment in close proximity to mineral workings? 67. Minerals operators should look to agree a programme of work with the minerals

planning authority which takes account, as far as is practicable, the potential impacts on the local community and local wildlife, the proximity to occupied properties and legitimate operational considerations over the expected duration of operations.

http://www.defra.gov.uk/habitats-review/

https://www.gov.uk/government/publications/biodiversity-and-geological-conservation-circular-06-2005

https://www.gov.uk/government/publications/biodiversity-and-geological-conservation-circular-06-2005

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/65633/7086-annual-energy-statement-2012.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/65633/7086-annual-energy-statement-2012.pdf

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How should planning authorities seek to mitigate the environmental effects of mineral extraction? 68. Minerals planning authorities should use appropriate planning conditions, having

regard to the issues for which they have responsibility, to mitigate against any adverse environmental impact. Some examples of model conditions covering various areas that may be associated with exploration of hydrocarbons are attached at Annex D.

Are separation distances or buffer zones acceptable? 69. Above ground separation distances are acceptable in specific circumstances where it

is clear that, based on site specific assessments and other forms of mitigation measures (such as working scheme design and landscaping) a certain distance is required between the boundary of the minerals site and the adjacent development.

70. There is no standard minimum separation distance for proposals for hydrocarbon

extraction. Any proposed separation distance should be effective, properly justified but reasonable, taking into account:

• the nature of the mineral extraction activity (including its duration); • the need to avoid undue sterilisation of mineral resources, • location and topography; • the characteristics of the various environmental effects likely to arise; and • the various mitigation measures that can be applied.

D) Monitoring and Enforcement Can minerals planning authorities charge for site visits? 71. Minerals planning authorities can charge for a maximum of 8 site visits for monitoring

site operations within any 12 month period. Additional site visits may be undertaken but they cannot be charged.

What powers do minerals planning authorities have to enforce mineral permissions? 72. There are a range of powers available to minerals planning authorities to take

enforcement action in respect of breaches of planning control. These are set out principally in Part 7 of the Town and Country Planning Act 1990. These powers include the power under section 196A for the minerals planning authority to enter land and buildings in connection with their enforcement functions.

Aftercare and restoration Who is responsible for restoration and aftercare of hydrocarbon extraction sites? 73. Responsibility for the restoration and aftercare of hydrocarbon extraction sites lies with

the operator and, in the case of default, with the landowner.

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What are the possible forms of afteruse following hydrocarbon extraction? 74. There are many forms of use of land once minerals extraction is complete and

restoration and aftercare of land is complete. These include:

• creation of new habitats and biodiversity; • use for agriculture; • forestry; and • recreational activities. The most appropriate form of afteruse will depend on a site-by-site basis following discussions between the operator and the minerals planning authority.

When should proposals for land restoration and aftercare be submitted to the mineral planning authority? 75. The operator should submit proposals for restoration and aftercare as part of the

planning application. How will the minerals planning authority ensure that applicants will deliver sound restoration and aftercare proposals? 76. Minerals planning authorities will ensure the proper restoration and aftercare of a site

through imposition of suitable planning conditions and, where necessary, through section 106 Agreements. For hydrocarbon extraction sites where expected extraction is likely to last for a short period of time, it is appropriate for the minerals planning authority to impose a detailed set of planning conditions as part of the planning application.

How should minerals planning authorities frame planning conditions for restoration and aftercare? 77. Conditions must be drafted in such a way that, even if the interest of the applicant

applying for permission is subsequently disposed of, the requirements for restoration and aftercare can still be fulfilled, whether by a new operator or in the case of default, by the land-owner.

78. The exact planning conditions should be framed with the intended after-use in mind,

and will vary according to:

• the characteristics of the individual site; • the intended after-use; • the type of mineral to be worked; • the method of working; • the timescale of the working; • the general character of, and planning policies for the area.

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When is a financial guarantee justified? 79. A financial guarantee to cover restoration and aftercare costs will normally only be

justified in exceptional cases. Such cases include:

• for very long-term new projects where progressive reclamation is not practicable and where incremental payments into a secure fund may be made at appropriate stages in the development of site operations; and

• where there is reliable evidence of the likelihood of either financial or technical failure, but these concerns are not such as to justify refusal of permission.

80. However, where a minerals operator is contributing to an established mutual funding

scheme, it should not be necessary for a minerals planning authority to seek a guarantee against possible financial failure, even in such exceptional circumstances.

How and when should mineral planning authorities seek a financial guarantee? 81. Minerals planning authorities should seek to meet any justified and reasonable

concerns about financial liabilities relating to the restoration of the site through agreeing a planning obligation or voluntary agreement at the time a planning permission is given.

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Annex A: Shale Gas and coalbed methane/coal seam gas What is shale gas? 82. Shale gas is methane found in rocks deep below the earth’s surface which had

previously been considered too impermeable (‘tight’) to allow for economic recovery (See Figure 1).

What is hydraulic fracturing? 83. Hydraulic fracturing is the process of opening and/or extending existing narrow

fractures or creating new ones (fractures are typically hairline in width) in gas or oil-bearing rock, which allows gas or oil to flow into wellbores to be captured.

How does the hydraulic fracturing process work? 84. During hydraulic fracturing, a mixture of water, sand and possibly some chemical

additives is pumped under pressure down a borehole into the rock unit. The sand is used to prop the fractures open to increase gas extraction.

85. The borehole is lined with a steel casing and cement and a “perforating gun” is used to

create perforations to allow the hydraulic fracturing fluid to be injected into the rock. 86. Plugs may be used to divide the well into smaller sections (termed stages). Stages are

fractured sequentially, beginning with the stage furthest away. After the hydraulic fracturing is done, such plugs can be drilled through and the well is depressurised.

87. In this way, the system is designed to be a closed loop, so that when the high pressure

is removed, the hydraulic fracturing fluid returns to the surface for treatment and storage. The flowback water also may contain salts and other dissolved minerals from the shale rock formation. Estimates vary on what percentage of the hydraulic fracturing fluid returns to the surface: from 25-75%. This wide range is explained by differences in the properties of the shale and its response to the hydraulic fracturing.

Figure 1: Shale gas extraction

Source: British Geological Survey (www.bgs.ac.uk)

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Coalbed methane What is coalbed methane? 88. Coalbed methane is methane that is extracted from unworked coal seams. For further

information on the location of coalfields in England may be found at: http://coal.decc.gov.uk/en/coal/cms/publications/data/map/map.aspx.

How is coalbed methane extracted? 89. Extraction of coalbed methane is usually from one of two sources:

• drilling vertically into a coal seam (making use of pre-existing fracture patterns); or more likely

• directional drilling along a coal seam In both cases the coals may be fractured to improve flow rates; the well is then pumped to remove water and lower the pressure within the seam to allow release of methane

How does coalbed methane affect the ability to extract the coal? 90. Extracting coalbed methane does not detrimentally affect the physical properties of

coal, or prevent it from being worked at a later date. What are the key factors to consider when considering coalbed methane exploration/production? 91. There are two main factors to consider:

• unlike underground coal mining, extraction of coalbed methane does not cause subsidence of the land surface;

• removing the water is commonly required to initiate gas production. Such de-watering can take an extended period of time.

http://coal.decc.gov.uk/en/coal/cms/publications/data/map/map.aspx

Annex B: Outline of process for drilling an exploratory well

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DECC

Issues a Petroleum and Exploratory Development

Licence

Operator carries out

Environmental Risk

Assessment (for shale gas only)

Operator engages in pre-application discussion with local communities, mineral

planning authorities and statutory consultees

(Environment Agency, Natural England and English

Heritage)

Minerals Planning Authority

Screens for Environmental Impact Assessment

Operator

submits Planning Application

Minerals Planning Authority validates, advertises and

consults on application and any Environmental

Statement

Operator undertakes Environmental Impact

Assessment

Operator applies for environmental

permits

Environment Agency

Issues environmental permits

Operator abandons well

Site restoration and Post abandonment monitoring for

defined period

Views of Statutory Consultees and local communities sought

Minerals Planning Authority decides case.

Imposes planning conditions

British Geological Survey informed and Coal Authority

consulted (if appropriate)

DECC

Well Consent Granted

Operator notifies Health and Safety

Executive at least 21 days in advance of

any activity

Operator may proceed and drill well

Operator notifies Environment Agency

of intent to drill under the Water

Resources Act 1991

Operator submits copies of data to the British Geological Survey

(subject to ongoing enforcement and

monitoring)

Annex C: Establishing whether a proposed development requires an Environmental Impact Assessment

Is the development of a type described in Schedule 1 of the 2011 Regulations?

Is the development described in column 1 of Schedule 2 of the 2011 Regulations?

Is the development to be located within a sensitive area?

Does it meet any of the relevant thresholds and/or criteria in column 2 of Schedule 2?

Taking account of the selection criteria in Schedule 3, is the proposal likely to have significant effects on the

environment?

Environmental Impact Assessment required (Secretary of State’s power

to make directions)

Environmental effects are unlikely (‘Negative opinion’)

Environmental effects are likely

(‘Positive opinion’)

No

No

No

Yes

No

Yes

Yes

Yes

Environmental Impact Assessment is not required (Secretary of State’s

power to make directions)

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Annex D: Model planning conditions Ground and Surface water The boreholes must be constructed so as to prevent uncontrolled discharge of artesian groundwater to surface, and to prevent uncontrolled discharge of water or contamination into or between individual aquifers or different geological formations. Any oils, fuels, lubricants or other liquid materials shall be located on an impervious base and/or within an impervious bunded area or purpose made self-bunding tanks so as to prevent any discharge or spillage into any watercourse, land or underground strata. Spill kits shall also be located in appropriate locations around the Site and utilised in the event of any accidental discharge/spillages. No ground or surface water contaminated by oil, grease or other pollutants used on or in connection with the site operations shall be discharged into any ditch or watercourse. Visual intrusion and landscaping No development shall be commenced until a scheme providing full details of site landscaping works has been submitted to, and approved in writing, by the Local Planning Authority. Such a scheme shall include a planting plan and schedule of plants noting species, plant sizes and proposed numbers/densities. Thereafter the approved landscaping scheme shall be implemented in full. Any trees or shrubs planted or retained in accordance with this condition which are removed, uprooted, destroyed, die or become severely damaged or diseased within 5 years of planting shall be replaced within the next planting season. Noise control and monitoring Prior to the commencement of the drilling operations hereby permitted, a detailed noise monitoring scheme shall be submitted to, and approved in writing by the Mineral Planning Authority. The scheme shall include the locations and times for noise monitoring to be carried out commencing from the start of drilling operations. Noise monitoring shall thereafter be carried out in accordance with the approved Noise Monitoring scheme and the results of the each noise monitoring exercise shall be submitted to the Minerals Planning Authority within 7 days of the monitoring being carried out. Noise monitoring shall commence within 12 hours of drilling commencing. In the event that noise monitoring indicates that noise levels have exceeded the maximum permitted noise level, drilling operations shall cease within [x] hours and until such time that further noise mitigation measures which shall be firstly approved in writing by the Minerals Planning Authority have been installed and employed within the site. All plant and machinery shall be adequately maintained and silenced in accordance with the manufacturer’s recommendations at all times.

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Dust and air quality Prior to the commencement of the drilling operations hereby permitted, a detailed dust management plan shall be submitted to, and approved in writing by the Minerals Planning Authority. No activity hereby permitted shall cause dust to be emitted so as to adversely affect adjacent residential properties and/ or other sensitive uses and/ or local environment. Should such an emission occur, the activity shall be suspended until a revised dust management plan is submitted and approved by the Minerals Planning Authority. Lighting Prior to the commencement of development, details of proposed lighting, including siting, height, design and position of floodlights, shall be submitted to and approved in writing to the Local Planning Authority. The lighting shall be implemented in accordance with these details and no other form of floodlighting shall be implemented on the application site without the prior written approval of the Local Planning Authority. Soils Prior to the construction of the drilling pad all available topsoil shall be stripped from the site and shall be stored in separate mounds within the site for use in the restoration of the site. The soils shall only be stripped when they are in a dry and friable condition. All topsoil and subsoil mounds shall be graded and grass seeded within one month of the first planting season and thereafter retained in a grassed, weed free condition throughout the duration of the development pending their use in the restoration of the site. Protected species and wildlife habitats Prior to the commencement of development, a method statement for the protection of wildlife, flora and fauna during construction and during operation of the facility shall be submitted to and approved in writing by the Minerals Planning Authority. No later than one year before the decommissioning of the site, an ecological survey shall take place to establish the presence, or otherwise, of any protected species on the site within the site boundary and immediately outside. The survey and measures for the protection of and minimisation of disturbance during the decommissioning phase shall be submitted to the Minerals Planning Authority for approval in writing. The development shall be implemented strictly in accordance with approved details of protection. Restoration and after care Within (time to be specified) months of the certification in writing by the Local Planning Authority of the completion of restoration, as defined in this permission, a scheme and programme for the aftercare of the site shall be submitted to the Local Planning Authority for approval in writing.

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The scheme and programme shall contain details of the following: a) Maintenance and management of the restored site to promote its agricultural use. b) Weed control where necessary. c) Measures to relieve compaction or improve drainage. d) An annual inspection to be undertaken in conjunction with representatives of the Minerals Planning Authority to assess the aftercare works that are required in the following year. or Within 3 months of the date of this permission a detailed restoration and year aftercare scheme shall be submitted for the written approval of the Minerals Planning Authority. The scheme shall include details of the following: a) treatment of the borehole; b) soil remediation and reinstatement measures along with details of proposed grass seed mixes; c) the removal of all building, plant, equipment, machinery, fencing, temporary surfacing materials from the Site and access track not required for the purpose of restoration and aftercare; d) a 5 year aftercare programme. The Site shall be restored in accordance with the approved restoration scheme and the Site thereafter managed in accordance with the approved 5 year aftercare programme. The aftercare period shall commence from the date that the Local Planning Authority confirms that the restoration works have been carried out and fully implemented in accordance with approved details.

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Glossary Aftercare - operations necessary to maintain restored land in a condition necessary for an agreed afteruse to continue. Afteruse - the use that land, used for minerals working, is put to after restoration. Conventional hydrocarbons are oil and gas where the reservoir is sandstone or limestone. Directional drilling – non-vertical wells which begin with slanted but straight holes often used for mineral exploration and to avoid surface obstacles. Wells may also begin vertically but progressively build angle to intercept the hydrocarbon reservoir in a longer section than can be achieved by vertical drilling. Such non-vertical wells can be deployed radially from a single well pad. Flow-testing – various tests to determine the hydrocarbon flow potential from the well, the reservoir characteristics and the nature of the hydrocarbons and other fluids present, often performed at different levels in a well. Restoration - the return of land following mineral extraction to an acceptable condition, whether for resumption of the former land use or for a new use. Sensitive Areas are Sites of Special Scientific Interest and European sites; National Parks, the Broads and Areas of Outstanding Natural Beauty; and World Heritage Sites and scheduled monuments. Unconventional hydrocarbons refers to oil and gas which comes from sources such as shale or coal seams which act as the reservoirs. Well pad - A pad is a location for siting the wellheads for a number of horizontal or vertically drilled wells.

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