Whilst this is undoubtedly a significant decision for the nascent shale gas industry, as many in the industry will appreciate, not least Third Energy, there is still a very long way to go before the UK is in a position to demonstrate a credible and sustainable scale of shale gas supply.
The approval was made in the face of significant public opposition and has been a long time coming –it will be a relief not just for Third Energy who started their planning application process over 18 months ago, but also for other participants in the industry who are anxious to see some progress being made in terms of physical development after the long delays and significant upfront investment that has been made to date on the back of Government support for the industry.
Third Energy now has an opportunity to take their existing well development to the next stage.
It is noteworthy that their permission includes not just the hydraulic fracturing and flow testing phases but will also allow the well to move into a 9 year production phase. The Chief Executive of Third Energy is right to see the huge responsibility on his company to demonstrate that the development can be carried out safely and without adversely impacting on the environment – all eyes will be on how the different phases of the development run and whilst not a precedent in planning terms, the development will undoubtedly be seen as such in terms of proving the robustness and safety of technical process.
Particular attention will be paid to how the hydraulic fracture plan, introduced by DECC in 2012 following the Lancashire events in 2011, requiring small test fractures before main fracturing operations, will work in practice.
The fact that the developer was required to go to such extraordinary lengths in order to secure this planning approval, for what is an existing well, will still be of concern to the wider industry.
The application went through four separate rounds of public consultation and is the subject of a 250 plus page Officer’s report. It is clear from reading the report that the Council were incredibly rigorous in their analysis and determination of the application, leaving no stone unturned and this should hopefully ensure a robust decision. We know though, that the threat of challenge remains a very real one with Friends of the Earth producing a last minute QC Opinion to the Council on the interpretation of the project and what should have been assessed.
The Council’s QC was fairly dismissive of the FoE Opinion in the Committee meeting and we will watch this space to see if FoE follow through on their threat of judicial review.
The UK has adapted its planning and permitting regimes to put in place a robust regulatory process which is considered fit for purpose to control and facilitate shale gas development where appropriate.
If this process and industry is allowed to mature, it is to be hoped that participants may be able to look forward to a more proportionate approach in future. Whilst an appropriate level of scrutiny is, of course, essential for these applications to demonstrate that they can be carried out safely and with limited environmental impact, it does need to be proportionate to the likely impacts that might be encountered for the particular development.
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