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Biscathorpe proposed site

Welcome

Thank you for coming to this public exhibition about the proposed new conventional oil well site at . It replaces a previous site approximately one kilometre to the east for which we withdrew a temporary planning application last year after listening to feedback from local people. Egdon Resources U.K. Ltd would like to develop an exploratory oil well in order to look for oil from this location. We believe that if we find oil here it will help to make a small contribution to the security of our domestically produced energy supply. On these display stands you will find information about the planning and consultation process as well as site-specific details. We would like to reassure you that the proposed operation will involve conventional drilling for oil only and will not – either now or in the future – involve the process of hydraulic ‘fracking’ for shale gas. This part of does not have the specific rock-formation types that contain shale gas. Egdon Resources team members will be happy to answer any questions you might have.

Aerial photograph of a drilling rig on a previously-drilled Egdon site. Biscathorpe proposed site

The importance of onshore oil

The UK relies on oil for almost all its motorised transport needs. It is also used in agriculture and manufacturing, and as a fuel for heating homes not supplied with gas. Technological advances, electric vehicles, energy from renewables and energy efficiencies will affect the way energy is produced and used. However the technology change is unlikely to significantly impact the UK’s energy mix for many years and security of energy supply is a key issue for the UK. Ensuring the UK’s indigenous resources are used to their full potential plays an essential part in delivering this security, providing a reliable supply and reducing the need for imported oil. Although most of the UK’s oil and gas comes from outside of the UK and from offshore developments, onshore production makes a modest but important contribution to supply, with the additional advantages of proximity to demand, local and national industry, job creation and localised economic benefits.

The UK relies on oil for almost all of its motorised transport needs. Biscathorpe proposed site

Project background

In 2010 Egdon Resources acquired an interest in and operatorship of the licence area PEDL253 (see licence plan). We are working in partnership with Montrose Industries Ltd and Union Jack Oil plc on our proposed Biscathorpe oil well. This licence area has been previously drilled by BP in 1987, at a site just outside the eastern edge of . Although the drilling encountered an oil-bearing sandstone, the discovery was never tested. Based on 3D seismic data, a new sub-surface target has been identified by Egdon Resources to the north of the original BP well. There has been other industrial activity in the area – quarries were worked and are now filled-in, with evidence of this activity still visible in respect of access points and disused weighbridges.

Licence plan showing the boundaries of PEDL 253

Tetney Lock 01

Nettleton 01

Scupholme 01

Kelstern 01 Saltfleete 02 01Z PEDL253 Area 189.3 sq km Keddington Biscathorpe 01 22 PL 179B

Stainton 01 Ulceby Cross 01 Fiskerton Airfield

PEDL138-1 01 01

Halton Holegate 02 Stixwold 01 01 Claxby 01 Biscathorpe proposed site

Where is the proposed site?

The proposed site is located on farmland to the west of Biscathorpe, approximately nine kilometres to the west of Louth, within the of . It is under the jurisdiction of the nearest minerals planning authority Lincolnshire County Council. The site, whilst in the Area of Outstanding Natural Beauty, has been carefully selected to minimise impacts on our neighbours and the environment, whilst being technically feasible to drill between the surface location and the sub-surface target area. It is screened to the north and east by woodland. It replaces the previous site to the east for which we withdrew a temporary planning application last year after listening to feedback from local people. We feel the new site is a more suitable location as the proposed access is from the B1225 (already an approved HGV route), does not cross any waterways or through environmentally sensitive locations, and is further from public footpaths including the .

New Biscathorpe site location and construction traffic route

Louth A157

A157

Gayton le Wold

B1208B1225

Proposed site

Biscathorpe Biscathorpe Park

B1208B1225

Belmont Transmission Station

DoningtonDonington on on Bain Bain

Key Proposed site Green areas

Approved HGV route Buildings

No entry to HGVs travelling Viking Way long distance footpath to and from the site Biscathorpe proposed site

What is planned?

The development will include an enclosed well site compound measuring 139.8m long by 80.1m wide (approximately the area of one and a half football pitches), comprising of a flat stone surface, soil screening bunds and security fence. Should we receive planning permission, the development is planned to take place in four phases: 1. The construction of the well site and the associated access track is likely to take seven weeks. 2. The assembly and installation of drilling equipment and facilities and drilling of the exploratory bore hole is expected to take eight weeks. To maintain operations, drilling continues 24 hours a day, seven days a week until completion. Lighting will be used at night to ensure safety. 3. After the drilling operation, it is likely an extended production test will follow, using a small beam pump – ‘nodding donkey’, fluid storage tanks and associated production equipment to determine actual oil production rates. Under the site planning permission, the test phase may progress for up to 28 weeks. 4. Site restoration. If the well proves to be dry, plans will be made to plug the well and restore the site to farmland in accordance with best practice procedures published by the Department for Energy and Climate Change (DECC). This will take up to six weeks. Please note these development phases are approximate and depend on the availability of contractors and equipment such as a suitable drilling rig, so they could take less time or longer to complete. It may also be that they don’t run sequentially, so there may be periods with no activity on site.

What a typical conventional onshore oil drilling site looks like during the drilling phase. The tall structure pictured is a drill rig and may be up to 50 metres high (the same height as an average electricity pylon). Biscathorpe proposed site

What the site could look like

After site construction has been completed there is very little on site other than a secure compound that may include a stone surface, and a well cellar which is used as the centre point for the drilling operation. During the drilling phase, the drill rig (up to 50m high) would be visible from a number of locations looking towards the site. We have commissioned photomontages to demonstrate the visual impact from different viewpoints. Once drilling is complete and the rig has moved off site, production testing equipment will ascertain volumes of oil that can be recovered. This process will consist of a beam pump – ‘nodding donkey’, storage tanks and surface production equipment such as pumps, welfare facilities and safety control systems. Please see our separate photomontages section, showing what the proposed well site could look like during the drilling phase (with the drill rig on site) and afterwards during the production phase (without the drill rig).

A typical beam pump or ‘nodding donkey’ as used to pump fluids to the surface during a production-test phase. Biscathorpe proposed site

How the well could be drilled

An exploratory borehole involves drilling from the surface to a sub-surface target, using drill bits that reduce in size as the drilling progresses. Usually, the drilling starts with a 17-1/2 inch diameter drill bit, and finishing with a 6-1/8 inch diameter bit at the target area (we have an example of a typical drill bit for you to look at as part of our exhibition). Drilling can either be ‘vertical’ – straight down from the surface, or ‘deviated’ – whereby the drilling starts off as a vertical well and then is steered at an angle to reach the target. The proposed Biscathorpe operation will be a vertical well.

Diagram showing how the Biscathorpe oil well could be drilled.

Rock formation Depth Exploration rig

Ground level

0m

Well trajectory – vertical well

Top lias 429m

Top triassic 687m

Top sherwood sandstone 943m

Top brotherton 1272m

Top carboniferous 1458m

Top coal ‘marker’ 1898m

Dinantian limestone 1981m Biscathorpe proposed site

Environmental protection

Sub-surface When drilling is started, the bore hole is drilled down to a certain depth below any aquifer rocks and steel casing (a hollow steel tube) is cemented into the drilled hole to seal against the rock. A smaller drill bit is used to drill from within this casing to a deeper point, and then longer lengths of casing are cemented in place. This process is repeated to provide at least three steel and cement barriers across any groundwater or aquifer rock formations, preventing any potential for contamination (see casing model on display). When drilling shallow wells, particularly when drilling through aquifer- bearing rock formations, water-based drilling fluids are used which are classified and approved as being non-hazardous. Surface All Egdon Resources’ sites are built to high standards of environmental protection, using an impermeable membrane (specialist clay-based or plastic sheeting) under the site surface to ensure that there is no potential for contaminated surface waters to affect the land. In addition, containment ditches around the site perimeter are designed to contain fluids in the event of any spillages on site – these prevent any discharge to local watercourses. Procedures and equipment applied on site such as bunded tanks, spill kits and waste management ensure that drilling operations are managed professionally and responsibly to prevent any impact on the local environment. Drilling operations have sophisticated control systems to ensure that wells are drilled safely. Environmental permits All UK drilling operations are now subject to a permitting system implemented and regulated by the Environment Agency. This regulates the drilling operation to ensure best practice is adhered to and that all steps and controls are applied to prevent pollution and minimise waste. Should a production test be undertaken, the system is extended to cover this, and additional controls and measures are applied to reduce and minimise any potential risks to the environment. If we receive planning permission the Biscathorpe well will be subject to this permit process.

We take environmental protection very seriously. Biscathorpe proposed site

Environmental studies

Over recent weeks, Egdon has commissioned a number of studies to assess the potential effects that the construction and operation of the site might have on a number of aspects, including: • Noise • Flood risk, geology and pollution control • Ecology • Traffic and transport • Environmental sensitivities • Archaeology • Landscape and visual impact

The studies, although not yet complete, are undertaken by independent environmental specialists and will be submitted as part of our planning application. As the assessments are independent, any recommendations to reduce environmental impacts or improve the local environment help inform the planning decision process and feed through into specific planning conditions. For example, on other Egdon Resources’ drill sites: • Noise monitoring is applied during all of the operational phases • Water samples are taken from local streams and analysed for quality before, during and after drilling • Bird and bat boxes have been installed in local woodlands.

Photo for illustrative purposes only. Biscathorpe proposed site

Local impacts

Noise We recognise that, as drilling progresses 24/7, there are concerns about noise from the operation. We have selected a site that is at least 300 metres from the nearest property, in order to have a buffer zone that will minimise noise impact. We are also undertaking a noise survey and modelling assessment to calculate noise from the operation at the nearest properties, and should we receive planning permission we will apply noise monitoring during the separate development phases. This is to ensure we don’t exceed any noise thresholds set under local and national regulations. Traffic The access route for site traffic is off the B1225, which as a busy road is already used by heavy goods vehicles (HGVs). All site traffic will approach and leave the site from this road, therefore reducing the impact on local residents and avoiding environmentally sensitive areas. HGV movements will only be permitted during daytime hours, for example 7am to 7pm Mondays to Fridays and 7am to 1pm on Saturdays, with no movements on Sundays). We are also reviewing the design of the well site itself, with a view to reducing the number of HGVs that would be needed to bring materials to the development. Lighting As the drilling rig will operate 24 hours a day, lighting will be needed to ensure safety – this is generally low level and inward facing to light up working areas. The site will be visible from some perspectives and viewpoints, and there will be a light at the top of the rig mast that will be noticeable. However the site location is generally well screened from view by trees and woodland from the north and east, so this should reduce any intrusive visible light. Please ask an Egdon Resources team member if you have any queries.

We plan to undertake noise monitoring during the different construction phases. Biscathorpe proposed site

The planning process

The new site location for the Biscathorpe exploratory conventional oil well is in the pre-planning application stage. As a responsible developer and operator, Egdon Resources considers it vital when preparing a planning application to consult the local communities in order to introduce the plans and understand views, which in turn can inform our proposals. We have recognised the original site we proposed last year was not popular. A temporary planning application for an oil well at this new location will be finalised over the next couple of months and submitted to Lincolnshire County Council. Following its submission, you will be able to view the application and submit comments to the council’s planning department. Any comments received will be considered alongside the application by a planning committee made up of elected councillors, which decides whether or not to grant consent. If temporary planning consent is granted, detailed site preparations will be prepared and this will include applications for the relevant environmental permits. Regular progress updates will be posted on the project web page below: www.egdon-resources.com/Wellsite_Biscathorpe Your views count We are keen to learn your views about this exhibition and the information being made available. Please take a few minutes to fill out a feedback form and let us know your thoughts. We want to be good neighbours and will listen to and address any questions or concerns you might have so do not hesitate to approach the Egdon Resources team members here today.

Photo for illustrative purposes only. Biscathorpe proposed site

About Egdon Resources

Egdon Resources U.K. Ltd is a subsidiary of Egdon Resources plc, a British onshore oil and gas exploration and production company established in 1997. We use all our expertise to ensure our onshore hydrocarbon drilling projects in the UK and mainland Europe are managed responsibly. We currently have 27 licences in the UK and France including existing oil production sites at Keddington near Louth in Lincolnshire, Dukes Wood and Kirklington near Newark, Nottinghamshire and Waddock Cross near Dorchester, Dorset. All sites operate under permits issued by the Environment Agency and have operated safely and without incident for a number of years. We are committed to high standards of health, safety and environmental protection and performance and these elements are key to Egdon as a responsible operator. We strive to find effective and appropriate ways of consulting with all our stakeholders, including local residents and businesses, and we believe that the views of local people are an integral part of the development process. Thank you for coming to our exhibition. We hope you have found it both useful and informative.

Aerial photograph of a drilling rig on a previously-drilled Egdon site.