Monday, November 26, 2012

Fracking: What do local authorities need to know?

Hydraulic fracking is a well-established method of extracting shale gas. It involves pumping high-pressure water, with some added chemicals, down a well briefly. This fractures the rocks around the well deep underground and releases gas, which then flows for many years.

It is used in conjunction with modern sideways drilling techniques (“directional drilling”) to recover large reserves of gas that would never be recoverable with conventional techniques. In the US it has been very successful in adding to domestic gas production and bringing down the gas price, but also very controversial. Currently it is subject to a government moratorium in the UK and the subject of hot debate.

There is currently a large swathe of the UK under review for potential drilling activity, with areas in Scotland, the North East, the North West, and South East already licensed. Should the current moratorium be lifted, local authorities may see a sharp rise in planning applications from drillers.

There has been considerable publicity around the environmental risks from fracking: earth tremors, groundwater contamination from chemicals, salt and naturally occurring radioactive material (NORM), air pollution and the sheer extra traffic, noise and bulk of a new industrial activity.

The fracking fluid needs to be carefully handled, collected and treated – which may require local authorities to provide planning permission for new, specially licensed wastewater facilities.

As the public becomes more aware of the issues surrounding fracking, the council is likely to hear more and more objections to planning requests on these grounds and will need to decide whether to take a broad-brush approach or decide each case on its own merits.

Should the Government take the decision to permit major fracking activity, the number of potential sites across the country means the majority of local authorities will need to have these issues under consideration and work closely with the various stakeholders - local residents and landowners, utilities and energy companies – to balance commercial interests with community wellbeing.

Adam Nell is director in the construction group at DWF.

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