Out-Law News 1 min. read
UK awards 93 onshore oil and gas licences, but 'grass roots support for shale' essential, says expert
18 Dec 2015, 3:07 pm
The UK government's support for shale gas exploration must be replicated at a local level if the country is to benefit from the fledgling energy source, an expert has said.
David Ross, an energy and planning law specialist at Pinsent Masons, the law firm behind Out-Law.com, was commenting as the Oil and Gas Authority (OGA) announced the results of the UK's 14th onshore oil and gas licensing round. The oil and gas regulator is to formally offer 159 'blocks' in England for exploration, packaged into 93 onshore licences.
"Fresh licences are a positive move, but central government support for shale must be replicated at a local level to ensure proposed developments are treated fairly and have every opportunity of securing the planning permits essential for any project," Ross said. "Grassroots support for shale will be a catalyst for success for the nascent energy technology."
The award of a petroleum exploration and development licence (PEDL) gives an energy developer the exclusive right to "search and bore for and get petroleum" in the areas, or 'blocks', to which that licence relates. However, it does not give them any rights to drill for, produce, or carry out hydraulic fracturing ('fracking') in those areas, as these activities are governed by separate planning, environmental and health and safety permitting regimes.
Around 75% of the 159 blocks allocated by the OGA as part of this licencing round relate to the exploration, appraisal and extraction of 'unconventional' onshore hydrocarbons, such as shale gas coal bed methane extraction. These operations are subject to additional regulatory requirements before they can proceed.
OGA chief executive Andy Samuel said that the licensing round "attracted strong interest and a high quality of proposed work programmes". Applicants for licences must submit details of their proposed work programme, which is assessed against a published marks scheme along with evidence of the developer's financial, technical and environmental competency.
"This round enables a significant amount of the UK's shale prospects to be taken forward to be explored and tested," Samuels said.
"Upon acceptance of these offers, applicants will be issued with licences and will be able to begin planning their future strategies for exploration activities. These will be subject to further local planning, safety, environmental and other authorisations," he said.
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