old.buckscc.gov.ukold.buckscc.gov.uk/media/3396432/fracking-faq-note.d… · web viewfrequently...
TRANSCRIPT
Frequently Asked Questions (FAQs) concerning on-shore oil and gas development
This document has been prepared by Buckinghamshire County Council. It addresses some Frequently Asked Questions associated with unconventional on-shore oil and gas in Buckinghamshire. This FAQ briefing note considers issues relating to the following areas:
What are oil and gas and why are they important?.....................................................2
Exploration, appraisal and production of oil and gas.................................................12
Licencing...................................................................................................................19
The Planning Process...............................................................................................21
Other agencies involved in licencing / the planning process.....................................27
Current shale gas extraction in the United Kingdom.................................................31
Oil and gas developments in Buckinghamshire........................................................31
Monitoring and enforcement.....................................................................................32
All information contained in this FAQ is based on information available to Buckinghamshire County Council at the time of its publication. It is important to note that planning policy for minerals development in Buckinghamshire (including oil and gas) is produced by Buckinghamshire County Council. This FAQ briefing note will be updated as required if new information emerges, or if the County Council considers there to be a need to update or provide clarification on issues associated with oil and gas development in Buckinghamshire. 013 v7) 1
What are oil and gas and why are they important?
1. Why are oil and gas important and what are they used for?
Oil and gas (also known as hydrocarbons) are primary sources of energy, and have a central role in the economy of the United Kingdom (UK). However, they are both finite natural resources which are being depleted through our energy consumption. As a result there is a national and local need to sustainably secure oil and gas resources, with which to support the sustainable growth of the economy. The whole of Buckinghamshire requires oil or gas in one way or another, since they are consumed either directly for heating and cooking, or indirectly in electricity generation and the manufacture of goods.
‘Unconventional’ oil and gas development (such as hydraulic fracturing gas from shale) does not currently take place in Buckinghamshire. Within the past 24 months exploration for shale gas by hydraulic fracturing (‘fracking’) has begun to emerge elsewhere within the UK, and is being promoted by the Government as a means of potentially generating jobs, reducing gas prices, and making the UK more secure in respect of energy supply.
Oil is refined to produce petroleum for use as a transport fuel, as well as wide range of other materials (including plastics). Both oil and gas can be used as energy sources for the generation of electricity, as well as for domestic heating, and are important fuels for industry. Some oil and gas is already obtained by drilling onshore within the UK, in areas such as Nottinghamshire, Lincolnshire, Dorset, and the central belt of Scotland between Glasgow and Edinburgh. The Wytch Farm site in Dorset is the largest producing site, far outstripping the rest of the active sites in the UK.
It is important to note that the likely future interest in exploration and production will be partly dependent on the energy demands of the households and businesses within the UK, as well as the price of oil.
2. What is conventional oil and gas?
‘Conventional’ onshore oil and gas refers to oil and gas resources (also known as hydrocarbons) which are situated in sandstone or limestone rock formations which are relatively porous. Conventional extraction methods generally involve drilling a borehole down to porous rock where oil or gas has formed in a reservoir. The rocks which produce these reservoirs of oil and gas are usually shale. The oil and gas resources present in these reservoirs are pumped out of the ground using beam pumps ('nodding donkeys') or electric pumps. Conventional onshore oil and gas extraction does not include shale gas (see question 3).
Conventional oil and gas resources can also be found off-shore, and there are several active producing oil platforms in the North Sea generating oil and natural gas.
3. What is unconventional oil and gas?
Natural gas produced from shale is often referred to as ‘unconventional’ and this refers to the type of rock in which it is found. In short, ‘unconventional gas’ is the same kind of natural gas, but from unconventional rock formations sources. Shale gas is considered to be ‘unconventional’ rather than conventional. (vemb013 v7)Shale gas, as the name suggests, is found within layers of organic-rich shale rocks. Shale gas is mostly comprised of methane found in rocks deep below the Earth’s surface. The key difference in the source of oil and gas is that these rocks had previously been considered too impermeable (‘tight’) to allow for the recovery of gas to be economically viable. Technological advancements over the last decade have made shale gas development economically viable with the use of hydraulic fracturing (also known as 'fracking'). It is this technological advance in being able to make the shales sufficiently permeable so as to extract gas from it that has made extraction of gas from shales deep within the earth economically feasible. As a result, shale gas is emerging as a potential form of energy supply, and there is a pressing need to establish (through exploratory drilling) whether or not there are sufficient recoverable quantities of unconventional oil and gas present to facilitate economically viable full scale production.
Shale gas may be found deeper in the ground than conventional oil and gas reservoirs, and requires deeper wells. While shales are found above, below and in between conventional reservoirs, only when a special set of geologic conditions exist is shale prospective for shale gas or shale oil. The right kind of organic material must have been originally deposited and in high enough concentrations, then preserved by subsequent sediment deposition. Then the shale must have been buried at depths and pressures great enough to mature the organic material to gas or oil. Finally, if the rocks were later uplifted by tectonic forces, then the ‘uplift’ must not have brought the shales too close to the surface or the hydrocarbons will escape. In most cases lateral well extensions will be needed to access the shale. Shale gas is produced directly from the source rock, which makes it different to conventional extraction, which is extracted from reservoirs.
The potential for the extraction of shale gas in Buckinghamshire, and indeed in the wider south east of England, is currently uncertain. Further studies and investigation are required to find out how much shale gas there might be in the United Kingdom. However the underlying geology beneath Buckinghamshire suggests that the shales that would be a potential source of gas are not likely to be present.
4. What is hydraulic fracturing (‘fracking’)?
Hydraulic fracturing or ‘fracking’ is a process used to release natural gas, including unconventional (shale) gas and oil, from shale rock formations (see question 3). This technique uses fluid, usually water, which is pumped at high pressure into the rock to create narrow fractures to create paths for the gas to flow into the wellbore up to the surface. The water normally contains small quantities of other substances to improve the efficiency of the process (see question 5). Once the fractures have been created,
other materials such as sand are pumped into them to keep the fractures open, allowing the shale gas resources to be extracted.
Recent technological advancements have resulted in horizontal drilling which has made tapping into shale gas deposits more financially viable. The shale gas extraction process broadly involves the following:
- development of a well pad and borehole to the target rock formations that contain the shale;
- 'fracking';- treatment and disposal of any water or waste materials associated with the
'fracking' process; and- decommissioning or suspension of the borehole.
The following diagram summarises the shale gas extraction process.
5. The 'fracking' processSource: Government guidance
'Fracking' will only occur for a limited period as part of an oil /gas exploration development. This means that 'fracking' will not take place at all times during the development. It will only be required to release the gases from the rock formations so they can be extracted.
‘Both the British Geological Survey (BGS) and the Department of Energy and Climate Change (DECC) provide further information on the 'fracking' process1 2.
6. What chemicals are used in 'fracking' in the United Kingdom (UK)?
In ‘Fracking’ 99.75% of the shale gas fracking fluid is made up of water and sand. Beyond that, a very limited number of chemicals are used, all of which have been approved for use by the Environment Agency, and publicised. For all future ‘unconventional’ oil and gas activities, subject to appropriate protection for commercial sensitivity, the DECC has decided that operators should disclose3 the chemical constituents of fracturing fluids and additives on a well-by-well basis, along with a brief description of their purpose and any hazards they may pose to the water environment. The Environment Agency holds powers for the disclosure of chemicals used in the 'fracking' process4.
7. What are the concerns being raised about ‘fracking’?
'Fracking' is a relatively new and emerging process, and one which has come under intense interest in the United Kingdom. The main environmental concerns related to shale gas extraction, and being raised by interested parties includes:
- water quantities and impact on water resources (see question 7);- seismic activities (see question 8);- impact on climate change (see question 9); and- other environmental concerns, such as visual intrusion, and the number and
frequency of vehicle movements.
8. Is 'fracking' water intensive, and how are water resources protected during 'fracking'?
The 'fracking' process can use significant amounts of water. It is an essential part of the process of extracting the gas, since it is injected, at pressure, into the shale rock to help with the gas extraction process (see question 5). Water use is greatest at the
1 BGS - http://www.bgs.ac.uk/research/energy/shaleGas/basics.html2 DECC - https://www.gov.uk/government/publications/about-shale-gas-and-hydraulic-fracturing-fracking/about-shale-gas-and-hydraulic-fracturing-fracking
3 Disclosure of information either on operators own websites or on third-party developed websites.4 Powers held through the Water Resources Act 1991 and the Environmental Permitting Regulations 2010.
production stage, as part of the 'fracking' process. Once a 'frack' has taken place, the production (extraction) of gas takes can take place, if gas is found in commercial quantities. Production does not require the significant amounts of water which are required to facilitate the 'fracking' process.’ At production stage (which requires a separate planning permission) multiple wells may be drilled and 'fracked' from the same “pad”, so that more water is required than for a single exploration well.
When proposing a site for shale gas development, developers must ensure that there is sufficient water and infrastructure for their operations, and, where necessary, they would need to apply for an abstraction license from the Environment Agency (EA) (see question 26).
Water resources and potential impacts on local water availability are very important considerations in the planning process, even though this issue is covered under other regulatory regimes. It is important that any oil or gas development does not have a significant impact on water resources, particularly when these feed into local water supplies.
The UK regulatory regime carried out by the Environment Agency ensures that hazardous substances are not allowed to enter groundwater. Groundwater will be protected in the 'fracking' process through any planning permissions being granted or associated consents by:
- ensuring the casing around the well hole is of an adequate standard;- ensuring adequate distance (and therefore rock) between the 'fracking' activity
and the groundwater;- ensuring the nature of the chemicals used and the quantities used render it
harmless, should they enter the water supply;- controlling the storage and disposal of waste from the sites.
The EA protects water resources as part of its role as a regulator. Where risks to the environment are significant (for example where development is proposed contrary to the EA groundwater protection policy and guidance), the EA are likely to object to any planning application for the construction and operation of individual wells.If an application for ‘fracking’ was submitted then Buckinghamshire County Council will ensure that the relevant water company is consulted on an application which may affect their area (see question 21).
In addition 'Fracking' takes place at a depth sufficiently distant from groundwater to ensure that the risk of fractures extending into aquifers is negligible. This issue was considered in the report prepared by the Royal Society and Royal Academy of Engineering (RSRAE) on the scientific and engineering evidence relating to the technical aspects of the risks associated with 'fracking'5.
5 RSRAE Report on fracking - http://royalsociety.org/uploadedFiles/Royal_Society_Content/policy/projects/shale-gas/2012-06-28-Shale-gas.pdf
9. Does 'fracking' cause subsidence or seismic activity, and if so how will this be prevented?
An environmental concern relating to 'fracking' is its potential to cause subsidence. However, there are no documented cases of global shale gas operations (at any phase of development) causing subsidence or earthquakes large enough to cause damage to infrastructure or injury. It is important to note that shale gas extraction does not remove large quantities of rock from underground (in comparison to coal mining) meaning subsidence is unlikely to be an issue associated with these operations. It is also important to note that no explosives are used in 'fracking' operations.AQ - Onshore 6 oil and gas (conventional and unconventional) development in Hampshire (November 2013 v7)Another environmental concern relating to 'fracking' is its potential to result in seismic activity. On 1 April 2011, a small (2.2 magnitude) earth tremor occurred near Blackpool. It was subsequently linked to exploratory 'fracking' operations being undertaken nearby. The tremor caused no structural damage or injury, but as a result the Department of Energy and Climate Change (DECC) suspended 'fracking' operations in the United Kingdom (UK) until potential links between 'fracking' and seismic activity had been explored. The Government's Chief Scientific Advisorcommissioned the Royal Society and Royal Academy of Engineering (RSRAE) to carry out an independent review of the scientific and engineering evidence relating to the technical aspects of the risks associated with 'fracking'6 (see question 11). This report considered the issue of subsidence and seismic activity. Investigations were subsequently completed and concluded that the seismic events may have been caused by the ‘fracking’ gas exploration activities nearby. As a result, a series of safeguards were recommended to prevent a similar situation occurring in the future. DECC announced that exploratory hydraulic fracturing ('fracking') for shale gas could resume, subject to new controls to mitigate the risks of seismic activity 7 in December 2012. The DECC also concluded that 'appropriate controls are available to mitigate the risks of seismic activity'8. The new safeguards are required by the DECC for all 'fracking' operations. In the UK, operators will have to conduct prior assessment of the geological risks including the location of known faults and submit a 'Fracking Plan', including documenting information at all stages of the development (from the small volume of fluid use at each stage and monitoring of its effects before moving to higher volumes). Where 'fracking' takes place, 'real time' seismic monitoring will be used to operate a 'traffic-light' warning protocol9 under which operations will be halted and pressures immediately reduced if a seismic event of magnitude greater than ML 0.5 is detected. This magnitude is well below the energy level that could be felt at the surface, and the protocol would enable a review of the possible causes of the event and allow further steps to be taken to prevent the occurrence of larger events. DECC will ensure that appropriate monitoring and control arrangements are in place to regulate seismic activity caused by 'fracking' and agreed, before consent is granted (see question 25). Operators will also be required to:
- have procedures in place to monitor, report, and mitigate seismic activity;6 RSRAE Report on fracking - http://royalsociety.org/uploadedFiles/Royal_Society_Content/policy/projects/shale-gas/2012-06-28-Shale-gas.pdf7 DECC Press notice 2012/1648 Written Ministerial Statement by Edward Davey: Exploration for Shale Gas9 Traffic Light Protocol - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/237333/DECC_infographic_Traffic-light-system.pdf
- put a Hydraulic Fracturing Programme (HFP) in place; and- undertake detailed risk assessments which are required as part of DECC
'frack' consent. This will also describe the control and mitigation measures for fracture containment and for any potential induced seismicity.
10. Does oil and gas development contribute to climate change?
Concerns have been raised that oil and gas development will contribute towards climate change, in particular through the generation of Greenhouse Gases (GHG). As there is a long history of conventional oil and gas development in the United Kingdom (UK), the carbon footprint associated with the practice is more known. However, the potential carbon footprint of unconventional oil and gas development is not yet known in the UK at this stage, due to the limited activity in this area to date.The Government has indicated that it is essential to develop as clear a picture as we can about the environmental impact of all fossil fuels, including unconventional oil and gas. There is a need for further research and data to be collected in the UK on this issue. A lot of the available data is based on research undertaken in the United States where the oil and gas developments, as well as regulatory controls, are both very different to those in the UK. (2013 v7) 7A report by David McKay and Tim Stone on potential greenhouse gas emissions (GGE) associated with shale gas extraction and use10, assessed the potential GHG emissions from the production of shale gas in the UK, and the compatibility of such emissions with the UK’s legislated climate change targets. The report demonstrates that GHG emissions from shale gas extraction are likely to be less than emissions from coal, Liquefied Natural Gas, and Non EU piped gas. This will mean that any production of shale gas is likely to help the UK meet their carbon reduction targets by providing a ‘bridge’ to a low-carbon future and as we move away from the use of oil and coal.
Further data to inform future assessments is expected to emerge as time progresses. Any emissions of methane from unconventional gas operations, including leakage, will need to be taken into account in the UK's greenhouse gas inventory and count towards UK carbon budgets and international commitments on emissions reduction.
Ultimately, emissions from unconventional oil and gas development will be determined by the design and conditions of a particular development. Any application would be required to minimise the release of methane to the atmosphere.The Government hopes that shale gas will become a significant part of the future energy mix for the UK11.This will be in a way that is compatible with legally binding climate change targets. Unconventional gas production would, in the first instance, replace declining offshore gas production. Beyond that point, use of gas could displace use of coal and oils, with a positive effect on GHG reduction. To meet
10 Potential Greenhouse Gas Emissions associated with shale gas extraction and use (McKay / Stone (2013)-https://www.gov.uk/government/publications/potential-greenhouse-gas-emissions-associated-with-shale-gas-production-and-use11 Ed Davey Press Release (9 September 2013)- https://www.gov.uk/government/news/davey-uk-shale-gas-development-will-not-be-at-expense-of-climate-change-targets
challenging climate change targets, the UK will need variety of different types of energy sources e.g. renewables and gas in the energy mix. Concerns have also been raised that the development of the unconventional oil and gas industry will be at the expense of the development of the renewable energy industry. The Government is committed to meeting its legally binding target to cut emissions by at least 80% by 2050 and its renewable energy target by 2020. The Government has, and continues to, strongly support the roll-out of low carbon energy across the UK and considers the need for a diverse energy mix including renewables, nuclear and gas. However, it is also clear that as the UK moves towards the greater use of renewables, there will still be a need for gas in the shorter term. The Government considers gas to be the cleanest fossil fuel, one which is part of the answer to climate change, as a bridge in our transition to a green future, especially as we move away from the use of coal. Therefore, gas generation will continue to play a major role in our electricity provision over the coming decades, alongside low-carbon technologies. The Government has made it clear that they will not allow shale gas production to compromise the focus on boosting renewables, nuclear and other low carbon technologies and will instead be used to support them.
11. Is 'fracking' safe?
The Government believes that ‘fracking’ can be carried out safely subject to appropriate regulation, the Chief Scientific Advisor commissioned the Royal Society and Royal Academy of Engineering (RSRAE) to carry out an independent review of the scientific and engineering evidence relating to the technical aspects of the risks associated with 'fracking' in the United Kingdom (UK)12. The findings have been accepted by the Government and included:
- the health, safety and environmental risks can be managed effectively in the UK;
- fracture propagation is an unlikely cause of contamination;- well integrity is the highest priority;- robust monitoring is vital;- an Environmental Risk Assessment (ERA) should be mandatory;- seismic risks are low –- water requirements can be managed sustainably;- regulation must be fit for purpose; and- policy-making would benefit from further research.
The main conclusion of the RSRAE report was that the risks associated with 'fracking' for shale gas can and could be managed effectively in the UK provided that operational best practices are implemented and enforced through regulation.
12 RSRAE Report on fracking - http://royalsociety.org/uploadedFiles/Royal_Society_Content/policy/projects/shale-gas/2012-06-28-Shale-gas.pdf
(N
12. What are the potential uses and benefits of unconventional oil and gas?
The production of conventional natural gas in the United Kingdom (UK) (such as North Sea and existing onshore gas production) has also been declining in the last few decades as reserves deplete. As a result, evidence is showing that the UK is becoming increasingly reliant on gas imports to meet its energy needs. Shale gas extraction could provide an opportunity to extract further gas resources from the UK, rather than relying on imports. The Government considers unconventional oil and gas as a promising new potential energy resource for the UK that could contribute significantly to the UK’s energy security (security of supply), reducing reliance on imported gas.
The Government hopes that shale gas will become a significant part of the future energy mix for the UK. The Government believes that gas is part of the answer to climate change, as a bridge in our transition to a green future, especially as the UK moves away from the use of coal. Production of unconventional gas could help to reduce UK's energy prices. This has been the case in the United States (US) where unconventional gas extraction is believed to have helped to reduce the price of gas. However, the actual impacts on energy prices in the UK are not fully known at this stage, as the industry is still emerging. It is also important to note that the energy market is quite different in the USA, as compared to that in Europe.
The UK Government favours shale gas extraction and associated 'fracking', and points to the potential economic benefits from large amounts of formerly inaccessible oil and gas. Unconventional oil and gas is also seen as an opportunity for employment. The local economic impact is considered to be significant in supporting local services and direct employment.
Exploration, appraisal and production of oil and gas
13. What are the phases of onshore oil and gas activity?
Oil and gas extraction activity is a temporary land use, although it can often take place over a long period of time. The nature of the oil and gas exploration, appraisal and processing operations are very different from other mineral workings (such as sand and gravel extraction), and are significantly less intrusive in terms of their limited land-take. They can also be more flexible in their locational requirements. There are three phases of onshore oil and gas development, in both conventional and unconventional forms of development:
1. exploration;2. appraisal (testing); and3. production.
Some initial seismic exploration work may be permitted development (i.e. may not need planning permission).
The Exploratory phase:
For both conventional and unconventional oil and gas development
This phase seeks to acquire geological data to establish whether oil or gas resources are present.
Wells will normally consist of a vertical well and potentially a small number of lateral extensions. The wells are designed to log and take samples of rock (‘cores’) in order to acquire geological data.
This stage may involve seismic surveys and exploratory drilling. A rig will be used to drill the boreholes and will be on site for the duration of
the exploratory phase. Exploratory drilling is an intensive activity, and may take longer than
conventional drilling, especially if there is going to be hydraulic fracturing ('fracking').
Exploration drilling is short term, but an intensive activity. The site will normally be vacated after the exploration stage.
For conventional development specifically
Site construction, drilling and site clearance takes between 3 to 6 months.
For unconventional development specifically
Exploratory drilling for unconventional oil or gas may take longer than conventional drilling, especially if there is going to be hydraulic fracturing (‘fracking’). Typically the exploratory stage for shale gas development will be 2 to 6 months. The exploration phase is likely to see the drilling of a number of small diameter vertical wells, of around 6 inches in diameter, and fractured to determine if shale gas is present and is suitable for extraction.
£100,000 of community benefits will be provided per well site where ‘fracking’ takes place.
The appraisal phase:
For both conventional and unconventional oil and gas development
This phase involves the operator seeking further information about the extent of the deposit or its production characteristics to establish whether resources are economically viable for production.
The appraisal phase can take several forms including additional seismic work, longer term flow tests, or the drilling of further wells.
The phase may allow an operator further time to appraise or flow test the well before making any further commercial decision about potential production.
The length of time to complete this stage will depend upon size and complexity of the oil or gas reservoir involved.
The phase may involve additional drilling at another site away from the exploration site or additional wells at the original exploration site.
A rig will be used to drill any additional boreholes which may be required within this stage.
For conventional development specifically:
Surface operations typically tend to last 4 to 6 months with on-site activity diminishing as the longer term flow testing is undertaken.
For unconventional development specifically:
The phase may involve hydraulic fracturing (‘fracking’) followed by flow-testing to establish the level of the resource and its potential productivity depending upon geology.
‘Fracking’ will typically involve an additional planning consent and Environmental Impact Assessment.
The Production phase
For both conventional and unconventional oil and gas development
This phase takes place once commerciality of the resource has been determined through the exploratory and/or appraisal stage.
A pad development plan (PDP) or field development plan (FDP) will be submitted to the Department of Energy and Climate Change (DECC) for
consideration. The submission of the PDP/FDP marks the start of the production phase.
The production phase normally involves the drilling of a number of wells. This may include wells used at the sites at the exploratory and/or appraisal phases of oil and gas development, or from a new site.
Production pads may be different sizes from location to location, depending upon the specific geology and surface location. Typically they will contain a number of vertical wells and associated underground laterals on a site, which would be about 2 hectares (5 acres) in size.
A rig will be used to drill any further boreholes which may be required within this stage.
Associated equipment such as pipelines and gas processing facilities may be required and will be constructed subject to additional planning permissions.
Any additional sites following exploration, will be selected by the operator taking account of what they have learnt or discovered through previous phases. In doing so, they should also take account of their ability to access the resource whilst seeking to minimise or avoid any adverse environmental and amenity issues.
It is estimated that the production life of an oil or gas field can be up to 20 years, possibly more (depending upon the resource).
When production ceases, the facilities should be dismantled and the sites restored to their former use, or, in some circumstances, an appropriate new use.
The decommissioning and restoration of the site at the end of the development is also important.
For conventional development specifically
The treatment and disposal of any water or waste materials associated with the 'fracking' process is important.
Conventional extraction methods generally involve drilling a borehole down to the porous rock where oil and gas is located in reservoirs. The resources are then pumped out of the ground using beam pumps (‘nodding donkeys’) or electric pumps.
The length of the production stage will depend upon the nature of the resource and the planning permissions.
For unconventional development specifically
‘Fracking’ process will take place at the start of the development. It will not take place throughout the production stage. It is only required to release the gas from the source rocks to allow for their extraction.
The treatment and disposal of any waste or waste materials associated with ‘fracking’ process is an important consideration.
1% of revenues at the production stage will be paid to the local communities.
On completion of drilling operations a well may be suspended to allow for further testing. If it is concluded that there is no commercially viable oil or gas resources present or if the extraction of resources has been completed, then the well will be abandoned in accordance with the latest Oil and Gas United Kingdom Standards. Once abandoned wells will be made safe for abandonment and the site infrastructure will be removed. The site will then be restored to its former condition or to a more beneficial afteruse, according to a scheme approved by the Mineral Planning Authority. A period of aftercare will commence following the initial restoration of the land, to ensure that the land returns to a state that is the same or better than it was prior to operations commencing. It is important note that decommissioning and restoration could take place within any of the three stages set out above.
Planning permission is required for each phase of oil and gas development from the Minerals Planning Authority (MPA) such as Buckinghamshire County Council, although some initial seismic work may be considered to be permitted development and does not require planning permission13.
14. What is current national planning policy on onshore oil and gas development?
In addition to the National Planning Policy Framework (NPPF)14 which sets out minerals planning policy, the Government also published the online ‘Planning practice guidance’, which includes a chapter entitled ‘Planning for hydrocarbon extraction’. The Government is clear that responsibility for determining planning applications for onshore oil and gas activities, including for the exploration of shale gas, will be with Minerals Planning Authorities (MPAs), such as Buckinghamshire County Council. Decisions will therefore continue to be taken in accordance with the relevant policies from adopted Minerals Local Plans (such as the Buckinghamshire Minerals and Waste Plan adopted in 2006), and the NPPF. It also makes it clear that MPAs should identify and include policies for extraction of mineral resources of local and national importance in their area. This includes both conventional and unconventional oil and gas. Oil and gas development is addressed in the Buckinghamshire Minerals and Waste Local Plan adopted in 2006.
The NPPF also expects MPAs to ensure that mineral extraction does not have an unacceptable adverse impact on the natural or historic environment or human health. These issues are also addressed in the ‘saved’ policies of the Buckinghamshire Minerals and Waste Local Plan, as well as those policies concerned with protection of the environment in the Minerals and Waste Core Strategy adopted in 2012.
13 Part 2 of Schedule 22 to the Town and Country Planning (General Permitted development) Order 199514 National Planning Policy Framework (DCLG, 2012) - https://www.gov.uk/government/publications/national-planning-policy-framework--2
15. What is the current Government position on unconventional oil and gas development?
The Government has stated that it considers that shale gas represents a promising new potential energy resource which could contribute significantly to the United Kingdom (UK), and could reduce our reliance on imported gas as well as supporting Growth, and provide employment. A joint statement on shale oil and gas by both DECC and DCLG in August 2015 reiterates the Government’s view on the potential value of shale oil/gas to the economy, and that it hopes that shale gas will become a significant part of the future energy mix for the UK. This will be implemented in a way that is compatible with legally binding climate change targets (see question 9).
Whilst the exploration of shale gas in the UK is in the very early stages of development, scientists from the British Geological Survey (BGS) have estimated that the total volume of gas in the Bowland- Hodder shale in northernEngland could be as much as 1,300 trillion cubic feet. The BGS is carrying out further work to establish the amount of shale gas in the Weald Basin in the south east of England.The Government has stated that it was supportive of the industry 'so long as such exploitation proved to be technically and economically viable, and can be carried out with full regard to the protection of the environment'.
The Royal Society and the Royal Academy for Engineering (RSRAE) published an independent report into the environmental, health, and safety risks of fracturing for shale gas in June 201215. The findings of the report have been accepted by the Government. The main conclusion of the RSRAE report was that the risks associated with fracking for shale gas can be managed effectively in the UK provided that operational best practices are implemented and enforced through regulation.
On 1 April 2011, a small (2.2 magnitude) earth tremor occurred near Blackpool. It was subsequently linked to 'fracking' operations being undertaken nearby. As a result, the Department of Energy and Climate Change (DECC) suspended 'fracking' operations in the UK until the connection between the activity and seismic activity was explored (see question 8). Investigations were completed and it was concluded that the tremors may have been caused by the shale gas extraction and recommended a series of safeguards to prevent a similar situation occurring in the future. (November 2013 v7)
In December 2012, following the completion of the reviews of the potential for shale and oil extraction, and the investigation into the earthquakes in Lancashire, the Department of Energy and Climate Change (DECC) announced that 'exploratory hydraulic fracturing ('fracking') for shale gas could resume, subject to new controls to mitigate the risks of seismic activity'16 (see question 8 ).
The Government has established the Office of Unconventional Gas and Oil (OUGO) in December 2012, to develop the shale gas industry, and this is part of DECC.
15 Royal Society and the Royal Academy for Engineering - http://royalsociety.org/policy/projects/shale-gas-extraction/report16 DECC Press notice 2012/164
The Government has prepared17 new planning policy guidance on onshore oil and gas development (see question 15). The BGS produced an assessment of potential for unconventional hydrocarbon resources in the UK in 201218. The Secretary of State for the DECC, Ed Davey, recently said 'We must make sure that the rigorous regulation we are putting in place is followed to the letter, to protect the local environment. We must pursue vigorously the development and deployment of technologies that will reduce emissions to protect the planet'.
16. What does the Government's Planning Practice Guidance say about onshore oil and gas?
As the unconventional oil and gas industry develops, the Government wants to ensure an effective, locally-led planning system is in place. The Government has published the online ‘Planning Practice Guidance’. This guidance provides advice concerning the planning issues associated with the three phases of oil and gas development. The guidance is kept under review, and should be read alongside other planning guidance, as well as the National Planning Policy Framework19.
The guidance states that the exploratory, appraisal, or production phases of oil and gas development can only take place in areas where the Department of Energy and Climate Change (DECC) have issued a licence under the Petroleum Act 1998 (Petroleum Licence) (see question 17).
It makes it clear that the planning system is about controlling the use and development of land. The guidance also sets out a number of issues that Minerals Planning Authorities (MPAs) (such as Buckinghamshire County Council) should address at the planning application stage (see question 19). The guidance also makes it clear that issues such as emissions, health, safety, and water resources may be addressed by other regulatory agencies (i.e. not the MPA) although these issues may be relevant to planning applications, and therefore may also be relevant matters to be put before an MPA as part of the planning process (see question 24). (November 2013 v7) 13Revised requirements relating to planning applications for onshore oil and gas
The Government revised the information requirements relating to planning applications for onshore oil and gas20. The changes relate to how landowners and tenants are notified by applicants of planning applications for onshore oil and gas development, and the form on which any application for onshore oil and gas development should be made.
Joint shale gas and oil policy statement by DECC and DCLG, August 2015:
17 Government guidance on onshore oil and gas (2013): https://www.gov.uk/government/publications/planning-practice-guidance-for-onshore-oil-and-gas18 BGS - http://www.bgs.ac.uk/research/energy/shaleGas/howMuch.html19 National Planning Policy Framework (DCLG, 2012)20 Consultation on revised requirements relating to planning applications for onshore oil and gas -https://www.gov.uk/government/consultations/revised-requirements-relating-to-planning-applications-for-onshore-oil-and-gas
On the 13th August 2005 the Government published a joint statement (DECC and DCLG) concerning shale gas and oil policy21. This statement:
Sets out measures for call- in of appeals, and potential call- ins of applications for shale gas/oil extraction, especially where MPAs continue not determine such applications within 16 weeks;
Seeks an improvement in performance by planning authorities in handling planning applications for shale gas/oil;
Gives a strong backing for the national need for this source of energy; Gives a strong emphasis on the various forms of regulation which will apply
to this activity; Seeks to make transparent to public scrutiny the process of regulation; Sets out in broad terms suggestions for sharing income from shale gas
extraction with the local community, through a ‘sovereign wealth fund’.
17. What is Buckinghamshire’s current planning policy for onshore oil and gas development?
Currently, adopted policy for minerals and waste is contained in the ‘Saved’ policies from the Buckinghamshire Minerals and Waste Local Plan (BMWLP)22, as well as the policies of the Buckinghamshire Minerals and Waste Core Strategy (MWCS). The ‘Saved’ policies from the BMWLP, and those from the MWCS provide a robust planning framework including adequate safeguards for potential environmental, community, or amenity impacts from minerals and waste developments, against which any proposal for oil and gas development in Buckinghamshire will be judged, and considered on their own merits. Buckinghamshire County Council will use the ‘Saved’ policies from the BMWLP, and the policies from the Minerals and Waste Core Strategy (MWCS), to determine any planning application for oil and gas development within their administrative boundaries. The BMWLP includes policy 9, which is specific to oil and gas development. The policy reads as follows:
Applications for exploratory works for oil and gas will be considered against all policies of this Plan. Proposals for appraisal drilling will be approved provided that the local environmental impacts are not of such a scale as to override the national interest associated with oil exploration. Particular regard will be made to the long term suitability of the site for commercial production and distribution.
Any proposal for oil and gas development will be judged against this policy, its associated supporting text, as well as all other relevant policies in the Minerals and Waste ‘Development Plan’ in relation to protecting the environment, maintaining communities (such as protection of water resources, protection of health, safety and amenity, managing traffic impacts etc.), and supporting the economy.
21 https://www.gov.uk/government/news/faster-decision-making-on-shale-gas-for-economic-growth-and-energy-security 22 Buckinghamshire Minerals and Waste Plan (2013) – adopted October 2013 – http://www.buckscc.gov.uk/environment/planning/minerals-and-waste-local-plan-2004-2016/
The BMWLP and the MWCS do not allocate any sites (site allocations) for onshore oil and gas development. As oil and gas resources are found much deeper in the ground from other mineral resources, there is no need to safeguard (protect) oil and gas deposits as they are less threatened by surface development compared to other mineral resources (such as sand and gravel, and brick-making clay) which can be sterilised by non-minerals or waste development. As a result, oil and gas resources in Buckinghamshire are not safeguarded in the same way that sand and gravel and brick-making clay resources are.
Licencing
18. What are oil and gas licences?
Licences for onshore drilling and exploration are granted by the Oil and Gas Authority within the Department for Energy and Climate Change (DECC). A UK Petroleum Exploration and Development Licence (PEDL) allows a company to pursue a range of exploration activities, including exploration and development of conventional or unconventional gas, subject to necessary drilling/development consents and planning permission (see questions 19 and 20). PEDLs allow a company to have exclusivity in a licence area. The terms of the PEDL licences require the DECC’s approval for the choice of operator.One of the issues the DECC checks before approving an operator, is coverage of relevant insurances. Licences do not give consent for drilling or any other operations.
In the 13th Onshore Licensing Round in 2008, licences were issued for shale gas in five locations in the United Kingdom23. No method for drilling is specified in the initial licence, as it only conveys exclusivity in an area for the licencee.
The Government invited companies to apply for further onshore oil and gas licences through a 14th round of licensing24 which closed at the end of October 2014. A Strategic Environmental Assessment for this round of licensing was subject to public consultation. Applications for the 14th round have been considered by DECC, and it is anticipated that decisions on which licences will be issued will begin to be made public in August 2015. Buckinghamshire County Council do not issue licences for oil and gas development. In an area that has been granted a licence from the DECC, potential operators still need to obtain:
- consent from the landowner;- planning permission of each stage of development (explorations, extraction
and production) (see question 20) from the MPA;- regulatory consents (such as from the Environment Agency);- and an additional consent from the DECC for drilling operations.
DECC will also consider the view of the Health and Safety Executive in reaching the final decision on licences. The DECC states that ‘final consent to any well or well operations is dependent on confirmation that all other necessary permits and
23 House of Commons Library SN/SC/6073 - www.parliament.uk/briefing-papers/SN06073.pdf24 14th round of licensing – http://www.og.decc.gov.uk/upstream/licensing/onshore_14th/index.htm
consents have been obtained’25. Before starting works the operator must also gain a ‘well consent’ for exploration from the DECC. An operator will then seek planning permission from the MPA to drill. The granting of a licence for the exploration of the resource does not imply that planning permission would be granted for the extraction of the resource. Planning permission would still be required as well as other associated consents (see questions 21 and 25). Now that the opportunities for unconventional oil and gas are being explored in the UK, existing licences maybe re-examined for their potential for unconventional resources.- Onshore 16 oil and gas (conventional and unconventional) development in Hampshire (November 2013 v7)
19. Are there any licences (conventional or unconventional) in Buckinghamshire?
A single oil and gas licence (see question 18), PEDL 236, was previously issued by the Department for Energy and Climate Change (DECC)26 and its boundary lies partly within Buckinghamshire. PEDL 236 is for oil exploration, and expired in June 2014. The majority of its area is within Windsor and Maidenhead Borough Council, and Slough Borough Council, with only a small area of the licence within Buckinghamshire, near to Burnham. It should be noted that the granting of a licence for the exploration of the resource does not imply that planning permission would be granted for the extraction of the resource (see questions 21 and 25).
Please note the above descriptions are only indicative. DECC provides more detailed information on which areas fall within each licence area (including the holder of each licence)27.
The Planning Process
20. What does the planning application process for onshore oil and gas development entail?
Obtaining planning permission is one of the main regulatory requirements that operators must meet before any conventional or unconventional oil and gas development can take place. The planning system controls the development and use of land in the public interest, and this includes:
- ensuring that new development is appropriate for its location taking account of the effects (including
- cumulative effects) of pollution on health, the natural environment or general amenity, and
- the potential sensitivity of the area or proposed development to adverse effects from pollution.
25 DECC- http://www.decc.gov.uk/en/content/cms/meeting_energy/oil_gas/shale_gas/shale_gas.aspx#426 DECC Licencing - https://www.gov.uk/browse/business/licences/oil-and-gas-licensing27 DECC Licence information: https://www.og.decc.gov.uk/information/licence_reports/onshorebylicence.html - search by licence code
In doing so, the focus of the planning system will be on:- whether the development itself is an acceptable use of the land;- what the potential impacts of those uses (e.g. on communities and the
environment) may be and any control (mitigation) processes; and- health and safety issues or emissions themselves where these are subject to
approval under other regimes (see question 24).
Any planning application for oil and gas development must be submitted to the Minerals Planning Authority (MPA) (see question 20), which is Buckinghamshire County Council for applications made within Buckinghamshire. Oil and gas developments are not considered to be a part of the Major Infrastructure planning regime28, (which applies to certain kinds of infrastructure projects, and which are determined by the Planning Inspectorate) and all oil and gas developments are decided by the local Mineral Planning Authority.
Pre-application discussions are encouraged by Buckinghamshire County Council in advance of any planning application for oil and gas development being submitted 29. However please note that at the time of writing, no planning applications for oil or gas exploration are expected in the immediate future.
There are three phases of oil and gas development (see question 12) and planning permission is required for each phase from the Minerals Planning Authority (MPA) (Buckinghamshire County Council, if the application is made within Buckinghamshire). The MPA will determine whether a standard planning application or if an Environmental Impact Assessment (EIA) is also required, depending on the proposal. In some cases minor initial seismic work may be considered to be ‘permitted development’ 30 and would not require planning permission. If the exploration stage results in the need for further appraisal work or full scale production, planning permission will also be required from the MPA.s (conventional and unconventional) development in Hampshire (November 2013 v7)The scale and character of any future proposal for oil or gas development will only be known when a planning application is submitted for consideration. At this stage its potential impacts, including impacts on health, local amenity, etc, will be fully considered through the planning process before any development can proceed.‘National planning policy guidance for onshore oil and gas’31 identifies the principle issues which should be addressed at the planning application stage for any oil and gas development (only relevant issues will apply to individual proposals). These include:
- noise associated with the operations;- dust;- air quality;
28 Major Infrastructure Regime consultation:https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/15333/extending_the_regime_to_business.pdf29 County Council webpages on pre-application discussions: http://www.buckscc.gov.uk/media/131644/Materials_Waste_Guidance_notes.pdf30 Part 2 of Schedule 22 to the Town and Country Planning (General Permitted development) Order 199531 Planning practice guidance for onshore oil and gas (DCLG, 2013) – https://www.gov.uk/government/publications/planning-practice-guidance-for-onshore-oil-and-gas
- site lighting;- visual intrusion;- impact on the landscape character;- archaeological and heritage features;- traffic to and from the site;- the risk of contamination of the land;- soil resources;- the impact on any ‘best and most versatile’ agricultural land present within the
site;- flood risk;- land stability / subsidence;- internationally, nationally, and locally designated sites;- nationally protected geological and geomorphological sites and features; - and sites restoration and aftercare.
Water resources are also a very important consideration for all oil and gas proposals even though this issue is covered under other regulatory regimes. The MPA will take a view on the potential impacts on water resources associated with any proposal, taking into account regulatory systems already in place on this issue, as well as the advice and guidance given by the Environment Agency at the planning application stage. Public and stakeholder engagement is also an essential element of the planning process (see question 21).
21. What is the role of the Minerals Planning Authority in the planning process?
Buckinghamshire County Council (BCC) is a Mineral Planning Authority (MPA). The MPA has the responsibility of processing and determining any planning application for onshore oil and gas development within their administrative area.District Councils within Buckinghamshire do not grant planning permission for oil and gas developments, although they will be consulted on any proposal which is within or impacts their administrative area. The MPA will determine whether a planning application alone is required, or whether it should be accompanied by an Environmental Impact Assessment (EIA)32. Q - Onshore oil and gas (conventional and unconventional) development in Hampshire (November 2013 v7) 21Before operations can begin any operator must submit a planning application to the MPA to seek planning permission for exploration, appraisal or production as well as any relevant environmental permits from the Environment Agency (EA). BCC encourages pre-application discussions in advance of any submission of an application for oil and gas development, so that the applicant is fully aware of the information that needs to be supplied in making his application. Interested parties and local communities will be consulted on any planning application for onshore oil and gas received in line with the procedures set out in the County Council Statement of Community Involvement (see question 21). Any proposal for oil and gas development will also include consultation with statutory consultees, such as Natural England and the EA (see question 27) and other interested parties such as
32 EIA's are required if the scale of the operations meets certain thresholds, or if depending on their nature, scale and location, they may have significant environmental impacts.
the Health and Safety Executive (see question 28) and the Health Protection Agency (see question 29).
BCC will refer to ‘Saved’ planning policies from the Buckinghamshire Minerals and Waste Local Plan adopted in 2006, and the Buckinghamshire Minerals and Waste Core Strategy, in determining any planning application for oil or gas development (see question 16). Any planning application decision will also take into consideration national and District Council policies that are relevant.
22. How will the community be consulted on any planning application for oil and gas development?
Public consultation forms an important part of every minerals planning application (including oil and gas) in Buckinghamshire. Following submission of a planning application for oil and gas development, the immediately adjacent local residents in the area which the proposal is located will be notified in accordance with the Buckinghamshire County Council Statement of Community Involvement, and planning legislation. The views of adjacent residents will be taken into account when coming to a decision.
Buckinghamshire County Councils Statement of Community Involvement (SCI)33 sets out the parameters for consultation on any minerals or waste planning application submitted to the County Council for consideration. The SCI sets out the minimum requirements for publicising planning applications received by the County Council. This includes:
- notifying immediately adjacent occupiers if a proposal has been received34;- notifying the local County Councillor of any proposal;- placing notices in local newspapers and on site;- notifying District Councils, that an application has been received;- making the application and all supporting information available to view at the
County Council offices, in hard copy by appointment;- providing copies of the application to all District and Borough councils for
display; and- making the application available to view electronically35 on the County Council
website.
With regards to water resources, BCC will ensure that all water companies are consulted on any oil and gas applications which may affect their area. Other statutory consultees will be consulted on an application for oil and gas development e.g. the Environment Agency (see question 26), Health and Safety Executive (see question 27), and water companies. Other parties will be consulted where they are relevant to a proposal.
33 Buckinghamshire Statement of Community Involvement – http://www.buckscc.gov.uk/environment/planning/minerals-and-waste-local-development-framework/development-plan-documents/statement-of-community-involvement/34 Immediate neighbours are notified.35 All minerals and waste applications received by the County Council can be viewed at: http://www.buckscc.gov.uk/environment/planning/planning-applications/viewing-planning-applications/
) development in Hampshire (November 2013 v7)For unconventional oil and gas development, the industry’s own Charter sets out that communities must be engaged from the very start of any planning application process36 (see question 23). The Office for Unconventional Gas and Oil (OUGO)37 has also made it a priority to help people understand the facts about unconventional oil and gas, including supporting local authorities’ engagement with their communities to help resolve any issues. The Government has recently consulted on revised requirements relating to planning applications for onshore oil and gas38.
36 United Kingdom Onshore Operators Group Community engagement charter - http://www.ukoog.org.uk/elements/pdfs/communityengagementcharterversion6.pdf37 Office for Unconventional Gas and Oil - https://www.gov.uk/government/policy-teams/office-of-unconventional-gas-and-oil-ougo38 https://www.gov.uk/government/consultations/revised-requirements-relating-to-planning-applications-for-onshore-oil-and-gas
23. If planning permission is granted, what else is required before unconventional extraction can commence?
If the Minerals Planning Authority (MPA) grants planning permission to explore oil and gas resources, the Department of Energy and Climate Change (DECC) will consider an application to drill at least 21 days before drilling is planned (a ‘well consent’). The Health and Safety Executive (HSE) must also be notified of the well design and operation plans to ensure that major accident, hazard or potential risks to people from wells (and well related activities) are properly controlled. The industry is subject to the same stringent regulation as any other industrial activity. HSE regulations also require examination of the well design by an independent and competent third party.
Notification of an intention to drill has to be served to the Environment Agency (EA) under section 199 of the Water Resources Act, 1991. Once DECC has checked the geotechnical information submitted, and that the EA and HSE are aware and consulted on the scope of the well operations, the DECC may consent to drilling. At this stage, if the intention is to ‘frack’, then DECC would impose the new controls (as introduced in December 2012) which includes:
- a geological assessment identifying faults;- a ‘Frack Plan’, and- monitoring of seismic activity before, during and after 'fracking'.
Following exploration, if operators then wish to go into production (to actually extract gas), the company must gain:
- a new planning permission from the relevant MPA;- a Field Development Consent from the DECC; and- an Environmental Permit from the EA.
24. What community benefits can be associated with shale gas extraction?
Minerals developments such as oil and gas can provide community benefits in their host areas. Community benefits may be as a result of the actual development, or through the restoration of the site, and can be used to address local issues. The unconventional oil and gas industry has already set out their commitment to community engagement in its Community Charter39. The main aim of the charter is to ensure open and transparent communications between industry, stakeholder groups and the communities in which they operate to promote a greater understanding and involvement by communities. Through the Charter, the industry has committed to a package for communities that host unconventional extraction in their area. This includes:
- engagement with local communities, residents and other consultees at each of the three stages of operations – exploration, appraisal or production,
39 United Kingdom Onshore Operators Group Community engagement charter - http://www.ukoog.org.uk/elements/pdfs/communityengagementcharterversion6.pdf
beginning in advance of any operations and in advance of any application for planning permission;
- £100,000 in community benefits to be provided per well-site where 'fracking' takes place at the exploration stage;
- 1% of revenues at production stage will be paid out to communities;- operators will publish evidence each year of how these commitments have
been met;- regular review of the Charter as the industry develops and operators consult
further with local communities.
It is important to note that the Community Infrastructure Levy40 cannot be applied to minerals developments, such as oil and gas. As of August 2015 the Government made a statement from both DECC and DCLG that it will bring forward proposals for a ‘sovereign wealth fund’.
Other agencies involved in licencing / the planning process
25. How does the planning process link to other regulatory regimes?
Oil and gas operations in the UK, are regulated under a number of different regimes. These regimes are separate but complementary to the planning process. This includes involvement by a number of organisations, and especially the Environment Agency (EA) (see question 26), and the Health and Safety Executive (see question 27).
The planning system controls the development and use of land in the public interest (see questions 19, 20, and 21). Some issues of importance may be regulated by other regulatory regimes, but may be relevant to the planning decision. For example, the EA has responsibility for ensuring that risk to groundwater is appropriately identified and mitigated. Where an Environmental Statement is required, Minerals Planning Authorities (MPAs) (in this case, Buckinghamshire County Council) play a role in preventing pollution of the water environment from oil and gas development, principally through:
- controlling the methods of site construction and operation;- ensuring the robustness of storage facilities;- ensuring the sustainable and adequate management of waste materials
resulting from oil and gas development; and- in tackling surface water drainage issues.
There exist a number of issues which are covered by other regulatory regimes such as those listed below. According to the NPPF the MPA must act under the assumption that these regimes operate effectively. Whilst these issues may be put before the MPA as part of the planning process, MPAs will not need to carry out our
40 Community Infrastructure Levy -https://www.gov.uk/government/policies/giving-communities-more-power-in-planning-local-development/supporting-pages/community-infrastructure-levy
own assessment on issues as they can rely on the assessment by other regulatory bodies. However, before granting planning permission, the MPA will need to be satisfied that these issues can and will be adequately addressed, by taking the advice from the relevant regulatory body. Issues where other regulatory bodies maybe involved include:
- mitigation of seismic risks;- design and construction of wells;- well integrity during operation - under health and safety legislation the integrity
of the well is subject to examination by independent qualified experts throughout its operation, from design through construction and until final plugging at the end of operation;
- operation of surface equipment on the well pad;- mining waste;- chemical content of hydraulic fracturing fluid;- flaring or venting of any gas produced as part of the exploratory phase;- final off-site disposal of water; and- well decommissioning, completion of development and restoration.
Following exploration, the well is likely to be suspended and abandoned for a period of time. The Health and Safety Executive (HSE) will require the design and construction of the well to be such that, so far as reasonably practicable, there will be no unplanned escape of fluids. The MPA is responsible for ensuring sites are restored through planning permissions granted.It is important to note that the UK's regulatory regime is more stringent than the regime operated in the United States where unconventional extraction is already taking place.
26. What is the role of the Department of Energy and Climate Change (DECC)?
The DECC's responsibilities include:- issuing Petroleum Licences that give consent to drill under a Petroleum
Exploration and Development Licence (PEDL) and give operators exclusive rights to explore for and develop the resource. Licences are issued once other permissions and approvals are in place, and have responsibility for assessing risk of and monitoring seismic activity, as well as granting consent for flaring or venting (see question 17);
- controlling seismic risks (usually through the licence consent regime). Seismic assessment of the geology of the area to establish the geological conditions, risk of seismic activity and mitigation measures to put in place is required by the DECC for all hydraulic fracturing processes;
- controlling the flaring or venting of any gas produced as part of the exploratory phase;
- ensuring that appropriate monitoring and control arrangements are in place to regulate seismic activity caused by 'fracking' and are agreed, before consent is granted. Operators will be required to have procedures in place to monitor, report and mitigate seismic activity, a Hydraulic Fracturing Programme (HFP)
and a detailed risk assessment as part of any 'fracking' consent granted by DECC; and
- issuing final well consents after all final checks have been made by the Health and Safety Executive (see question 27).
The Office of Unconventional Gas and Oil (OUGO) has been set up specifically to co-ordinate the activity of the regulatory bodies and departments, and sits within DECC.FAQ - Onshore oil and gas (conventional and unconventional) development in Hampshire (November 2013 v7) 25
27. What is the role of the Environment Agency (EA)?
The EA is a public body whose responsibility is to protect the environment. The EA are a statutory consultee in the planning process for planning applications for onshore exploration, appraisal, or production, of onshore oil and gas operations in Buckinghamshire. The EA's responsibilities include:
- protection of water resources (including groundwater aquifers);- ensuring appropriate treatment and management of any naturally occurring
radioactive materials;- controlling the actual operation of a site’s equipment in relation to preventing
run-off of any liquid from the pad and controlling any impact on local amenity (such as noise) along with the Health and Safety Executive (see question 28);
- ensuring that extractive wastes do not harm human health and the environment;
- regulates any flaring or venting of any gas produced as part of the exploratory phase; and
- ensures that the final treatment/disposal at suitable water treatment facilities is acceptable.
An Environmental Permit will be required by the EA for the different phases of oil and gas development. This will require the operator to produce and implement a Waste Management Plan. Other permits associated with various aspects of oil and gas development include:
- mining waste;- abstraction41; - groundwater activity;- water discharge activity;- radioactive substances activity; and- industrial emissions.
The chemical content of hydraulic fracturing fluid are also covered by the Environmental Permitting regime as operators are obliged to inform the EA of all chemicals that they may use as part of any hydraulic fracturing process (see question 5). The EA has powers to require full disclosure of chemicals used in hydraulic fracturing in England and Wales42, and assesses the hazards presented by 'fracking' fluid additives on a case by case basis.
41 The EA are likely to require an Abstraction Licence if more than 20,000 litres of water per day is to be abstracted as part of the development42 Powers through the Water Resources Act 1991 and the Environmental Permitting Regulations 2010
Environmental aspects of oil and gas operations are monitored by the EA as regulator, in particular when permits are granted. The EA have issued guidance relating to exploratory shale gas extraction operations 43 44 45 46. The EA has also recently issued draft technical guidance for onshore oil and gas exploratory operations47. The technical guidance sets out what environmental regulations apply to the onshore oil and gas exploration sector and what operators need to do to comply with those regulations. Further technical guidance will be issued by theEA on the production phase, in due course.
28. What is the role of the Health and Safety Executive (HSE)?
The HSE monitors all phases of oil and gas operations from a safety perspective. The HSE's main role in relation to all oil and gas development is to regulate the health and safety risks to people from these operations. In doing this, the HSE works closely with the Environment Agency (EA) and the Department of Energy and Climate Change (DECC) to ensure that all material considerations are addressed.The HSE's responsibilities include:
- responding to notification of well integrity and the drilling process after planning permission is granted. The HSE have 21 days to respond to such notifications;
- enforcement of legislation concerning well design and construction of a well casing for any borehole throughout the life of the development. HSE can recover its costs from operators for assessment and inspection activities associated with an onshore well notification.
- examining scheme design, construction and planned maintenance when an oil and gas site is in production, will ensure the integrity of the well and will regulate the transport of gas products and injection into the national grid; and
- controlling the operation of the site’s equipment in relation to preventing run-off of any liquid from the pad and controlling any impact on local amenity (such as noise) along with the EA.
More guidance relating to shale gas extraction and fracking from the HSE has been issued48.43Environment Agency webpage’s on Unconventional Oil & Gas – http://www.environment-agency.gov.uk/business/topics/126689.Aspx.44 Environment Agency webpage’s on Regulating Unconventional Gas – http://www.environment-agency.gov.uk/business/topics/133885.Aspx45 Environment Agency Guidance Note: Regulation of exploratory shale gas operations -http://a0768b4a8a31e106d8b0-50dc802554eb38a24458b98ff72d550b.r19.cf3.rackcdn.com/LIT_7284_231c35.Pdf46 The Environment Agency and the Health and Safety Executive: Working together to regulate unconventional oil and gas developments -http://a0768b4a8a31e106d8b0-50dc802554eb38a24458b98ff72d550b.r19.cf3.rackcdn.com/LIT_7317_e1b401.pdf47 EA Technical Guidance for onshore oil and gas operations – https://consult.environment-agency.gov.uk/portal/ho/climate/oil/gas48 The Environment Agency and the Health and Safety Executive: Working together to regulate unconventional oil and gas developments-http://a0768b4a8a31e106d8b0-50dc802554eb38a24458b98ff72d550b.r19.cf3.rackcdn.com/LIT_7317_e1b401.pdf
29. What is the role of the Health Protection Agency (HPA)?
The HPA is currently reviewing the evidence base on the potential health impacts of shale gas, with a particular focus on the health impacts of emission to air, land and water. The HPA will assess the potential impact on health on a case by case basis if approached by a Mineral Planning Authority or the industry as part of a planning application process.
Current shale gas extraction in the United Kingdom
30. Where does unconventional oil and gas development currently take place in the United Kingdom (UK)?
Unconventional gas drilling is currently only in the exploratory phase, and is still at a very early stage in the UK. There are believed to be large reserves of unconventional oil and gas (including shale gas) beneath the UK. However, it is not known what proportion of this could be economically viable.
Oil and gas developments in Buckinghamshire
31. What onshore oil and gas exploration, processing, or production currently takes place in Buckinghamshire?
Minerals can only be worked where they are found (where they naturally occur) so options of economically viable and environmentally acceptable sites for the extraction of mineral resources are limited. Buckinghamshire does not have known oil and gas resources. Oil and gas deposits are found at much deeper levels in the ground than the other minerals (such as sand and gravel) worked in Buckinghamshire. Historically there has been some evidence of gas from boreholes drilled for mineral exploration, or for wells. However none of these were commercially viable for the production of conventional gas, and it is not known whether they are connected to shale deposits.
Please note that Buckinghamshire County Council publishes a Monitoring Report (MR) for minerals and waste development each year. This includes a list of all minerals (and waste) sites in Buckinghamshire. There are no oil or gas exploration sites within the information contained in the BCC Monitoring Reports.
32. Does 'fracking' currently occur in Buckinghamshire?
Currently, there are no shale oil or gas extraction, or 'fracking', activities taking place in Buckinghamshire.
33. Are there any known proposals for unconventional oil and gas ('fracking') in Buckinghamshire?
Buckinghamshire County Council does not know of any current proposals for shale gas extraction or 'fracking', within its administrative boundary.
34. Will local communities be consulted if a planning application is submitted for conventional or unconventional oil or gas development in Buckinghamshire?
Immediately adjacent residents will be notified on all minerals and waste developments in Buckinghamshire. This means that these residents will have an opportunity to comment in the event that a planning application is received by the Buckinghamshire County Council (see question 21).
Monitoring and enforcement
35. If planning permission were to be granted for oil and gas development, how would it be monitored?
Planning permissions for any phase of oil and gas development (whether conventional or unconventional) granted by Buckinghamshire County Council will be subject to monitoring. Monitoring helps to ensure that all development is compliant with relevant planning permissions (and associated conditions or legal agreements) granted. If required, the County Council has powers to take enforcement action to ensure compliance with planning permissions granted by the County Council.
Any Environmental Permits granted by the Environment Agency (EA) will also be subject to separate monitoring. (See question 26). The Health and Safety Executive (HSE) will also monitor the operations for compliance with their legislation, once drilling has commenced (see question 27). Oil and gas operators also have a duty to monitor the drilling process as part of the development and will often have to report this to the EA or HSE if this is required.DECC is in discussion with the industry on how introducing arrangements to ensure that, for a defined period after abandonment of a well, the operator will conduct suitable monitoring monitor the groundwater and the air in the vicinity of the abandoned well.
36. What happens after an oil and gas site has been developed and the works have been completed?
Any oil and gas site exploration or production site will need to be restored following the completion of the development. Restoration involves returning the land to an acceptable condition. Sites will either be restored to the former land use or to a beneficial new use. Planning permissions granted will include a condition (s) relating to this issue, as appropriate. The successful completion of the restoration of the site will be subject to monitoring (see question 34).FAQ - Onshore 30 oil and
37. Where can I find out more information?
Further information relating to oil and gas from other bodies can be found at the following weblinks:
Department of Energy and Climate Change (DECC) (Licencing): www.decc.gov.uk
Environment Agency (EA): www.environment-agency.gov.uk
Health and Safety Executive (HSE): www.hse.gov.uk
British Geological Survey (BGS): www.bgs.ac.uk
If you wish to discuss the contents of this FAQ, please contact Buckinghamshire County Council in the following ways:
Website: http://www.buckscc.gov.uk/bcc/
By email: [email protected]
By telephone: 01296 383037/383142/387434.
In writing to: Minerals and Waste Policy, Strategic Planning and Infrastructure, Growth and Strategy, Buckinghamshire County Council, New County Offices, Walton Street, Aylesbury, HP20 1UA.
This FAQ was revised by Buckinghamshire County Council in August 2015. 32 FAQ - Onshore oil and gas (conventional and unconventional) development November 2013 v7)
Glossary
Technical term ExplanationThe Department for Energy and Climate Change (DECC)
The Government department responsible for energy supply in the UK, including the licensing of onshore and offshore oil and gas extraction.
‘Fracking’ (Hydraulic Fracturing)
A process for oil and gas exploration and production in which the fissures within rocks containing hydrocarbons are forced wider to allow the escape of the hydrocarbons.
Hydrocarbons Energy minerals including, oil, gas, (and coal), created over thousands of years from geological deposits of organic material beneath the ground.
Mineral Planning Authority (MPA)
The Local Planning Authority which is responsible for determining applications for the extraction of minerals. It is either a County Council in a two-tier area, or a unitary authority. Within the county of Buckinghamshire, Buckinghamshire County Council determines all planning applications for mineral extraction.
Mineral Sand, gravel, chalk, clay- these are minerals which are, or have been, worked in Buckinghamshire. Oil and gas are also minerals for the purposes of the planning system, and have not been worked within Buckinghamshire.
Mineral rights Legal rights to win the minerals beneath the surface of the land, and are normally reserved to private individuals. These are separate from the surface rights. Mineral rights for oil and gas in the UK are reserved to the Crown.
Mineral resources The amount of a mineral believed to be present beneath an area of land.
Mineral reserves The amount of mineral present in an area of land that is economically capable of extraction.
Permitted Development
Certain kinds of activities which do not require a planning permission from a Local Planning Authority.