British Government to Streamline Regulatory Permissions for Exploratory Shale Gas Wells

The British Government is working to streamline the process to obtain permissions for exploratory shale wells, said Duarte Figueira, Head of the Office for Unconventional Gas and Oil (OUGO).

“We want to streamline, simplify, but also to make sure that we don’t miss anything,” said Figueira at the conference ‘Shale Gas – Lancashire’s next industrial revolution?’ organized by the employer group Institute of Directores (IoD) in Preston, Lancashire.

Figueira stressed that streamlined procedures can promote the UK shale gas industry as long as regulations protect the environment.

“The important thing is that we have a process in place, which is safe, environmentally sound and encourages the explorations,” stated Figueira, Head of the Office recently created within the Department of Energy and Climate Change (DECC).

According to the statistics published by DECC in April, the UK imported 64% of the natural gas consumed in 2012.

“We want to encourage development in a way that improves our security of supply. We are committed to an energy mix and gas has got a significant future,” concluded Figueira.

Earlier this year, Energy Secretary Ed Davey said that gas would play a key role in the UK’s energy mix over the next two decades, with unconventional gas “making a difference.” 

Although the recognition by national politicians, operators claim that the regulatory framework is still confusing.

Corin Taylor of the Institute of Directors (IoD) addressed this point on Wednesday, suggesting that the first barrier to shale gas explorations is the planning and permitting process. 

“At the moment if you want to drill and fracture one exploration well, you need to get permission from four different agencies,” said Taylor on Wednesday. 

Taylor argued that there is a lack of guidance and suggested that the planning and permitting regimes need further clarification.

“It is not clear when you need the Environmental Impact Assessment and when you don’t need,” concluded Taylor, author of the report ‘Getting shale gas working.’

According to the report released early this week by IoD, the application process for exploration is complex and cumbersome.

‘In our view, the planning and permitting regime for shale exploration, as currently constituted, presents a major barrier to the development of shale gas in the UK,’ reads the report.

The four agencies involved are the Department of Energy and Climate Change (DECC), the Environmental Agency, the Health and Safety Executive and the Local Mineral Planning Authority (e.g. Lancashire County Council).