UK Government Unveils Community Benefits for Shale Gas Exploration

A package of community incentives designed to overcome strong local opposition to “fracking” was unveiled on Thursday by the British government, after the release of the new estimates of shale gas reserves published by the British Geological Survey. 

Shale companies will pay communities £100,000 per well where fracking takes place, and 1 per cent of revenues once production starts, reads a note published by the British government. 

“With the package announced today on planning, environmental regulations, and community benefits, it is clear that we want to encourage a shale industry that is safe and that doesn’t damage the environment," commented Energy Minister Michael Fallon.

According to a note released on Thursday, operators will be obliged to publish evidence each year of how their commitments have been met.

“Development must be done in partnership with local people. We welcome the commitments from industry on community benefits. This will provide a welcome boost for communities who will host shale exploration and production as well as offering strong assurances that operators will engage with them and work to the highest health, safety and environmental standards," said Fallon. 

Shale gas development is in its early stages in the UK, but there are already 176 licenses for onshore oil and gas exploration currently issued.

According to Edward Davey, Secretary of State for Energy and Climate Change, the measure is part of a broader plan to reform UK infrastructures, with a planned £110bn capital investment in the next decade.