Out-Law News 2 min. read

Proposed planning policy for Scottish shale "should not be seen as a negative", says expert


Changes to Scottish planning policy for the extraction of 'unconventional' oil and gas, such as that extracted from shale, should not be seen as an "insurmountable hurdle" by developers, an expert has said.

David Ross of Pinsent Masons said that the proposals, announced this week by the Scottish Government, mirrored the existing planning regime for renewable energy projects. The proposed changes include additional environmental and community protection measures, including community consultation in relation to planning applications, and the introduction of 'buffer zones' between extraction sites and residential properties.

"It is interesting to see this announcement from the Scottish Government as they have been relatively quiet on the exploration of shale gas, in comparison to the positive encouragement given by the Coalition Government," he said.

"While there may be a temptation to portray this announcement as having a negative impact on shale gas exploration in Scotland, this need not be the case: Community support is still a key hurdle which developers need to overcome so by providing guidance on community consultation, the Scottish Government are providing valuable assistance to developers," he said.

He added that the burden of the proposal on developers would depend on the extent to which community consultation was required under the finalised planning policy.

The changes will be included in the new Scottish Planning Policy (SPP), which is due to be finalised by the end of this year. The SPP is the Scottish Government's statement of policy on how nationally important land use planning matters should be addressed across the country.

Announcing the changes, Environment and Climate Change Minister Paul Wheelhouse said that whether to grant a licence to extract oil or gas from a particular area was a decision for the Department of Energy and Climate Change (DECC). However, these licences did not give consent for drilling or other exploration or development work under the planning system, which consent must be granted by either the local planning authorities or the Scottish Government.

He said that there are no Scottish environmental permissions in relation to hydraulic fracturing, or 'fracking', used to extract gas from shale rock which would bypass the requirement for planning consent or a Fracking Consent from DECC. Any planning applications for coalbed methane or shale gas production in Scotland would be "studied on their merits, informed by reliable and substantive information on availability of resources and the manner and practicalities of their exploitation", he said.

The new planning policy states that the planning system must "minimise the impacts of extraction on local communities, built and natural heritage, and the water environment". In addition, proposals should also "provide an adequate buffer zone between sites and settlements".

However Ross said that only the proposed introduction of buffer zones – which would also be introduced for other renewables projects under the new policy - was new.

"Consideration of a development's impact on communities, natural heritage and the water environment actually mirrors the existing considerations for renewables projects in Scotland," he said. "This should not therefore be seen as an insurmountable hurdle for the shale gas industry as wind farm developers regularly consider these impacts through the planning system - very often with a great deal of success. In any event, addressing these key public concerns will be crucial to the success of the shale gas industry as a whole in Scotland and the rest of the UK."

"In order to secure the safe exploration of shale gas in Scotland, any development will need a number of consents including Petroleum Exploration and Development Licences, Pollution Prevention and Control permits, a licence under the Water Environment (Controlled Activities) Regulations 2011 as well as specific Fracking Consent from DECC. The requirements for these consents will mean that site selection is crucial for any development so the Scottish Government's suggestion of a buffer zone will simply be another factor to consider and may, in fact, give clearer guidance to developers as to what areas would be suitable for development," he said.

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