Despite Public Opposition, UK Government Could Take Over Decision-Making from Local Councils

The UK Government relaunched its shale campaign, asking local governments to take faster decisions on companies' bids. It also said that the Secretary of State could call in shale applications. This would shift the onus from local governments to London. Therefore, the Government's plan will only make sense when it will show or explain how it will react to growing local opposition. 

DECC TO FAST-TRACK FRACKING BIDS

‘The Secretary of State will also actively consider calling in shale applications. Each case will be considered on its individual merits in line with his policy. Priority will be given to any called-in planning applications’ reads a note released by the Department of Energy & Climate Change on Thursday. 

The Government also intends to analyse the performance of local planning authorities, focusing on those that ‘repeatedly fail to determine oil and gas applications within statutory timeframes.’  

‘When such applications are made to underperforming local planning authorities, the Secretary of State will consider whether he should determine the application instead.’

The Government asked local planning authorities to take a decision on planning applications within 16 weeks where an application is subject to Environmental Impact Assessment. 

‘This should be supported through an upfront timeline agreed with the applicant including the anticipated decision date.’

Local planning authorities should single out which issues can be left to other regulatory regimes.  

‘We also expect local planning authorities to make full use of the funding available for 2015/16 through the £1.2m shale support programme. This will ensure there are adequate resources locally to enable the timely determination locally of planning applications for shale gas.’ 

Moreover, DECC tries to speed up seismic investigation and groundwater monitoring.  

‘The Government has published its response to consultation and will take forward amending permitted development rights to allow the drilling of boreholes for groundwater monitoring. The Government is also inviting views on proposals for further rights to enable, as permitted development, the drilling of boreholes for seismic investigation and to locate and appraise shallow mine workings.’

Once more, London stressed that local communities would cash in on their open-to-business approach. 

‘We also strongly believe that communities hosting shale gas developments should share in the financial returns they generate. The Government welcomes the shale gas companies’ commitment to make set payments to these communities, which could be worth £5-10m for a typical 10-well site, and we want to go further. As announced by the Chancellor in the 2014 Autumn Statement, and set out in our manifesto, we are determined to ensure that local communities share more of the proceeds and feel more of the benefits.’

The Government also mentioned once more how developments could bring along new jobs.  

“As a One Nation Government, we are backing the safe development of shale gas because it’s good for jobs giving hardworking people and their families more financial security, good for our energy security and part of our plan to decarbonise the economy. We need more secure, home grown energy supplies – and shale gas must play a part in that” Energy and climate change Secretary Amber Rudd said in a separate statement. 

GOOD NEWS OR BAD NEWS?

All in all, the government seems to confirm that shale is a national priority and that shale applications cannot be slowed down by local councils. This could be good news for shale enthusiasts, but it remains to be seen how the public will react.  

Local communities could easily enter into complex political mechanisms. The Government’s case-by-case approach could backlash, as Conservative MP representing the local community could pay the price of the centralisation. Additionally, the Cameron government could not anymore blame local governments. In case it failed triggering a shale gas revolution in the country, the government would be easily hated by locals and mocked by the industry. 

According to the DECC Public Attitudes survey, public opinion gradually shifted from relative support to relative opposition over the last 19 months.  

On the other hand, the Government is at least trying to flex its muscle and show that political intentions can turn into practical measures. Along with a renewed interest for North Sea production, shale gas could come in handy too.  

‘North Sea production is falling. By 2025 we will import almost 70% of the gas we need. By producing shale gas we become less reliant on foreign imports’ the Government noted in another communiqué, showing coherence and some central planning. 

In July, the Government changed rules for E&P operations in National Parks, Areas of Outstanding Natural Beauty, the Broads and World Heritage Sites. 

Gas provides around a third of UK energy. The British Geological Survey identified shale gas or oil in the Bowland shale in the North of England, the Weald Basin in Sussex and Surrey and the Midland Valley in Scotland.

Sergio Matalucci is an Associate Partner at Natural Gas Europe. He holds a BSc and MSc in Economics and Econometrics from Bocconi University, and a MA in Journalism from Aarhus University and City University London. He worked as a journalist in Italy, Denmark, the United Kingdom, and Belgium. Follow him on Twitter: @SergioMatalucci