Underground Drilling Access Government Response to the Consultation on Proposal for Underground Access for the Extraction of Gas, Oil or Geothermal Energy 25 September 2014 © Crown copyright 2014 URN 14D/365 You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Any enquiries regarding this publication should be sent to us at [email protected] 2 General Information Purpose of this document: This document sets out the Government’s response to the consultation on a proposal for underground access for the extraction of gas, oil or geothermal energy, published on 23 May 2014. Issued: 25 September 2014 Enquiries to: The Office of Unconventional Gas and Oil and The Heat and Strategy Policy Team Department of Energy & Climate Change, 3 Whitehall Place, London, SW1A 2AW Email: [email protected] Territorial extent: The proposals discussed in this Government response apply to England, Wales and Scotland in respect to petroleum. The proposals on deep geothermal energy also cover England, Wales and Scotland (where in Scotland, deep geothermal energy is exploited for the sole, or main purpose of electricity generation). The use of deep geothermal energy for heat only purposes is devolved to the Scottish Government. In Northern Ireland, responsibility for petroleum and geothermal energy lies with the Northern Ireland Executive’s Department of Enterprise, Trade and Investment. Additional copies: You may make copies of this document without seeking permission. An electronic version can be found at: https://www.gov.uk/government/consultations/underground-drilling-access Quality assurance: This consultation has been carried out in accordance with the Government’s Consultation Principles, which can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/60937/Consultation- Principles.pdf If you have any complaints about the consultation process (as opposed to comments about the issues which are the subject of the consultation) please address them to: DECC Consultation Co-ordinator 3 Whitehall Place London SW1A 2AW Email: [email protected] 3 Contents Executive Summary ................................................................................................................... 6 Responses ............................................................................................................................... 6 Question 1 ................................................................................................................................ 8 Question 2 ................................................................................................................................ 9 Question 3 ................................................................................................................................ 9 Summary of conclusions ........................................................................................................ 10 Introduction .............................................................................................................................. 11 Stakeholder responses ....................................................................................................... 11 Questionnaire responses .................................................................................................... 13 Freeform responses ............................................................................................................ 14 Analysis .................................................................................................................................. 15 Legislation to provide underground access .............................................................................. 17 Support for legislation to provide access ................................................................................ 19 Investment potential ............................................................................................................ 19 Legal issues ........................................................................................................................ 19 Regulatory issues ............................................................................................................... 21 Other comments ................................................................................................................. 22 Against legislation to provide access ...................................................................................... 23 Opposition to Hydraulic Fracturing ......................................................................................... 23 Opposition to hydraulic fracturing due to concern for environmental factors ....................... 24 Opposition to hydraulic fracturing due to concern for seismic events or subsidence .......... 25 Other concerns about hydraulic fracturing .......................................................................... 25 Depth Limit .......................................................................................................................... 28 Support for renewable energy to be pursued in place of hydraulic fracturing ..................... 29 Liabilities & Compensation .................................................................................................. 29 Opposition to legislation to provide access ............................................................................. 31 Ownership of Land .............................................................................................................. 31 National Interest .................................................................................................................. 33 Other comments ..................................................................................................................... 35 Exemptions and Scope ....................................................................................................... 35 Other Minerals .................................................................................................................... 36 Support for geothermal ....................................................................................................... 37 4 Alternative solution to legislating for underground access ....................................................... 39 Alternative solutions ............................................................................................................... 39 A move to renewables/other energy policy ......................................................................... 40 Keep Existing Framework ................................................................................................... 42 Voluntary scheme proposed by industry .................................................................................. 45 Voluntary scheme for payment and notification of access ...................................................... 45 The need for regulation ....................................................................................................... 46 Support for the Voluntary Scheme ...................................................................................... 48 Role of Councils .................................................................................................................. 48 Definition of Community ...................................................................................................... 48 Information and Notification ................................................................................................ 49 Use of the Payment ............................................................................................................ 50 The Payment Amount ......................................................................................................... 50 Individual Payments ............................................................................................................ 51 Other issues ........................................................................................................................ 52 Conclusion and next steps ....................................................................................................... 53 5 Executive Summary Introduction 1.1. The Government is supportive of developing our own indigenous energy sources in a safe and sustainable manner. We believe shale gas and oil, and deep geothermal energy may hold potential for adding to the UK’s energy sources, helping to improve energy security, create jobs and meet carbon targets. In order to explore this potential, the Government wishes to ensure that the existing regulatory system is fit for purpose. Both industries access underground deposits by drilling deep underground wells, and we consider the existing procedures for gaining this underground access to be costly, time-consuming and disproportionate for these industries. 1.2. From 23 May to 15 August 2014, the Government ran a public consultation seeking views on a proposal designed to simplify the existing procedure for underground access when seeking to exploit oil, gas or geothermal resources (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/313576/Con