Written question asked by Lord Greaves (Liberal Democrat) on Wednesday, 11 March 2015, in the House of Lords. It was due for an answer on Wednesday, 25 March 2015. It was answered by Baroness Verma (Conservative) on Tuesday, 24 March 2015 on behalf of the Department of Energy and Climate Change.

Fracking

Question: To ask Her Majesty’s Government whether the advance payment of £100,000 to local communities for every site fracked during exploratory fracking is voluntary or whether it is a condition of a licence being granted.

Answer

The shale gas industry has made a commitment to the Community Engagement Charter, co-ordinated by its representative body UK Onshore Oil and Gas, which includes a commitment to provide benefits to local communities at the exploration/appraisal stage of a minimum £100,000 per well site where hydraulic fracturing takes place.

The Infrastructure Act 2015 introduced a range of further requirements that must be met before an operator can carry out hydraulic fracturing. Once these provisions come into force, the Government will not issue a hydraulic fracturing consent unless satisfied that a scheme is in place to provide financial or other benefit for the local area.

A Sovereign Wealth Fund would ensure that revenues from shale gas and oil are put to good use. Proposals will be brought forward in the next Parliament.

Secondary information

Type: Written question
Reference: HL5652
Session: 2014-15
Subjects: Licensing Exploration Payments Fracking
Link: View this Written question on www.parliament.uk

Fracking

Secondary information

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