WBJ: Poland proposes controversial shale gas regulations

New shale gas extraction rules proposed by the Polish government have raised controversy. In a consultation process which ended on Monday, many companies expressed concerns over some of the regulations.

One example is the rule that a tender would be organized for extraction licenses after exploration work has been completed. This means that companies which have invested in exploration drilling would not be sure if they could make money from extraction on the same license.

Investors are also concerned about the plan to create a national shale gas operator. They believe that if the operator holds stakes in licenses, companies' costs will in fact be higher than the declared 40 percent total tax planned by the government.  MORE