Hydraulic Fracturing Consent was introduced in
the Infrastructure
Act 2015as an additional step to the existing
regulatory and permitting regime. It ensures a final
check that all the necessary environmental and health
and safety permits have been obtained and the
Department of Business, Energy and Industrial Strategy
(BEIS)
is otherwise satisfied it is appropriate to grant
Hydraulic Fracturing Consent.
Cuadrilla Bowland Ltd submitted an application for
Hydraulic Fracturing
Consent to BEIS on
18 May 2018 in line with the regulatory regime.
The government has been clear it is committed to
ensuring a meticulous approach, rooted in rigorous
evidence, is taken when reviewing applications to
explore for shale gas.
Having given careful consideration to the evidence
submitted and after scrutiny from the department,
minister is satisfied
the 13 technical
requirements set out in section 4A of the Petroleum Act
1998 have been met.
In a written
ministerial statement in January 2018, the
Secretary of State set out that the financial
resilience of shale gas operators would be looked at as
a matter of policy. The Infrastructure and Projects
Authority was asked to carry out an independent
assessment and has confirmed its view Cuadrilla has
satisfactory financial resilience to operate. The
Infrastructure and Projects Authority concluded:
Cuadrilla Bowland Limited, as operator of
the PEDL 165
Licence and equity investor in the Licence alongside
AJ Lucas and Spirit Energy on a joint and several
basis, combined with continuing financial support
from its ultimate shareholders has an adequate level
of financial resilience to undertake the project.
After reviewing all of the information, Energy and
Clean Growth Minister confirmed she is
otherwise satisfied to issue the consent, subject to
certain conditions being met, which include the
department receiving a copy of the unqualified audited
report and accounts relating to the latest full
financial year of Spirit Energy Limited, or a deposit
in a suitable Escrow account in support of any
potential Decommissioning Cost liability.
It is the government’s view there are potentially
substantial benefits from the safe and sustainable
exploration and development of our onshore shale gas
resources.
Energy and Clean Growth Minister said:
Shale gas has the potential to be a new domestic
energy source, further enhancing our energy security
and helping us with our continued transition to a
lower-carbon economy. It also has the capacity to
deliver substantial economic benefits, both
nationally and locally, as well as through the
creation of well paid, high-quality jobs.
We already have an excellent, long-standing
reputation for safe oil and gas exploration. Our
world class regulations will ensure that shale
exploration will maintain robust environmental
standards and meet the expectations of local
communities.
I have carefully considered Cuadrilla’s application
and I am content that Hydraulic Fracturing Consent
should be granted in this instance.
