France Plans Changes to Oil & Gas Exploration Rules

French Environment Minister Nathalie Kosciusko-Morizet has announced that plans are underway to modify rules to allow for public consultation when awarding permits for oil and natural gas exploration.

“The mining code is old and allows for insufficient consultations” on oil and gas exploration licenses, she said today in parliament in Paris. Changes that will allow for public deliberations on permit applications will be put to lawmakers before April 20, she said.

Prime Minister Francois Fillon earlier this month extended a ban on the search for of the unconventional fuels until two reports are published in June.

The government has been criticized by environmental groups and lawmakers for granting permits to companies to search for shale gas and oil using hydraulic fracturing techniques.

France has awarded three shale gas exploration licenses in March to Total SA, Schuepbach Energy LLC, and GDF Suez. These licenses cover more than 10 000 km2 on the departments of Hérault, Aveyron, Lozère, Ardèche and Drôme.

Toreador Resources Corp. in partnership with Hess and Vermilion Energy Inc. are among companies which have licenses in the Paris Basin to explore for oil trapped in shale rock.

Under existing rules, the French Energy Ministry grants permits through tenders without holding public consultations or environmental studies. These can be carried out if explorers want to move toward production.

Source: Bloomberg