Centralising Shale Planning Decisions in UK Unlikely Before Appeals, Says Lawyer

The decision taken by the Lancashire County Council on Monday had the first repercussions on the industry, with the shares of drilling and pipeline services company AJ Lucas Group registering a 6% decline on Tuesday. Meanwhile, the British press agreed on the fact that the prospects for UK shale gas are becoming bleaker.

On Monday, Lancashire County Council turned down Cuadrilla's application to drill, fracture and flow test up to four wells at Preston New Road. 

Over the last hours, comments came from several fronts. 

“Whilst the decision can be appealed, it is a setback for Cuadrilla and the onshore oil and gas industry in the UK. It is worth noting the cross-party nature of the councillors' refusal of the application and the margin by which it was refused (9 against, 3 for and 2 abstentions)”, Hamish McArdle, London-based partner in the energy & technology focused international law firm Baker Botts, commented in an emailed note on Monday. 

McArdle reported that Cuadrilla is considering the opportunity of appealing the decision to the Secretary of State.  

“The debate on the merits of centralising these planning decisions for fracking has been in the background of the Lancashire applications, although not advocated by the Government. It may be that the debate now gains momentum, although it seems unlikely that the Government will want to take action before it sees the outcome of any appeal” he added.

On the other hand, environmentalists voiced their enthusiasm about the decision. 

‘There were ecstatic scenes on the streets of Preston on Monday as Lancashire councillors rejected an application to frack at Preston New Road in Little Plumpton” Friends of the Earth UK wrote in a note.