A British Geological Survey (BGS) study of shale gas has estimated total reserves of 1,300 trillion cubic feet in northern England alone, though it is far from certain how much of this could be extracted in a way that would be commercially viable.
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“This announcement is an example of putting those principles into action”, the prime minister added.
Ryedale Liberal-Democrat councillor Di Keal, another opponent of fracking, said: “In the current economic climate people, when many people are struggling financially, the offer of £10,000 might seem appealing, but it is little compensation for the risk to the environment, our health and well-being and the wrecking of the countryside that the industry will bring”.
“Local communities should be the first to benefit from the Shale Wealth Fund, and they should get to decide how a proportion of the funding is used”, the government said in its consultation document.
Payouts to communities from the wealth fund will come on top of shale gas operator payments of 100,000 pounds per exploration well and a one percent share of shale gas site revenues. “People’s concerns about climate change and their local environment can not be silenced with a wad of cash”.
“It’s about making sure people personally benefit from economic decisions that are taken – not just councils – and putting them back in control over their lives”.
However, Greenpeace UK chief scientist Dr Doug Parr said: “The government has tried to sweeten the fracking pill with cash payments before, and it didn’t worked”.
Gardiner also questioned the government’s continued moves away from renewable energy technologies like solar, which has seen its support severely cut since the Conservative government was elected a year ago.
The shale wealth fund plan will be funded by 10% of tax revenues from shale gas production. The overarching objectives of secure, affordable and low-carbon energy continue to be a driving force for our industry.
UKOOG said that imports today make up almost half the UK’s gas demand, at a cost of £10mn per day, and that National Grid forecasts – without shale – that the United Kingdom could be 90%-reliant on imports for its gas supply.
Green Party MEP Molly Scott Cato said the policy will “exacerbate community tensions”.
Cuadrilla has appealed against the decision and the government has since changed the rules to have the ultimate say in shale gas related application.
This week’s consultation comes during a national debate about fracking, gas supply, climate change and energy security.
In the US, where abundant shale gas production has started to turn the country into an exporter, landowners have directly benefited from the shale gas boom because they have rights to mineral resources.
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“We need to question why Theresa May is trying to lock us in to a dirty fossil fuel infrastructure for the next thirty years rather than backing the clean technologies of the future”, says Gardiner.
