The Energy Independence Bill was included in the Kings’ Speech on 13 May.

The Bill will contain measures which will deliver our manifesto commitment not to issue new licences to explore new fields, including new licences that could be used for fracking for shale gas in England.

There is an effective moratorium on fracking for shale gas (“associated hydraulic fracturing” as defined by the Petroleum Act 1998) in England, which will continue to apply to existing licences. Similar restrictions are in place across other parts of the UK.

I am happy to agree with my noble friend that energy from waste is an excellent production technique. There are many successful energy-from-waste projects; it is another technology that will make a contribution to our energy supply.

To answer to the first part of my noble friend’s question, waste will become an important generator of electricity and we need to recognise its value. We need to consider how district heating may be based upon such approaches, which may indeed benefit those in the proximate area—the local community—and we will give further consideration to that.

My Lords, I was a Minister in the department at the time, so I well recollect that and believe that it is still the current policy. That is important, but what is also clearly important is that we have safe, secure supplies of clean energy at affordable prices in this country. Those are the three guiding principles: they were then and they are now.

The Government supports strong regulatory controls to ensure that fracking is carried out safely. Environmental permits issued by the Environment Agency (EA) set legally binding conditions to ensure compliance with requirements for environmental protection. Hydraulic fracturing fluid that returns to the surface, known as flowback fluid, can be reused and recycled onsite if it meets environmental standards. Flowback fluid that cannot be recycled will become waste, and must be taken offsite for treatment at appropriately licensed waste water treatment facilities.

Waste water treatment facilities must have the correct environmental permits in place to receive waste flowback fluid, and must meet strict environmental standards for any discharge into receiving waters. This is similar to any other industrial effluent. The EA does not allow reinjection of waste water back into a fracking well for disposal purposes.

Before a company can carry out exploration for oil and gas onshore it needs to apply to the Oil and Gas Authority for a Petroleum Exploration & Development Licence (PEDL). PEDLs do not give permission for operations. Rather, they grant exclusivity to licensees, in relation to hydrocarbon exploration and extraction (including for shale gas but also for other forms), within a defined area. The key criteria considered when assessing licence applications are the proposed operator’s competency, financial viability and financial capacity.

In June 2013 the then Secretary of State for Department of Energy and Climate Change (DECC) asked Sir Ian Wood to conduct an independently led review of UK Continental Shelf (UKCS) oil and gas recovery, specifically looking at how economic recovery could be maximised.

A key recommendation of the Wood Review was the creation of a new independent body, responsible for operational regulation of the UKCS, focused on supervising the licensing process and maximising economic recovery of the UK’s offshore oil and gas reserves in the short, medium and long terms. Given the many synergies with aspects of the regulation of onshore oil and gas activities (including shale gas) the Review also highlighted the strong rationale for a single regulator to manage the licensing regime for onshore reserves as well. On the basis of these recommendations, the Oil and Gas Authority assumed responsibility for all licensing functions related to offshore and onshore oil and gas in October 2016.

In accordance with the Smith Commission Agreement and St David’s Day Agreement and the resulting Scotland Act 2016 and Wales Act 2017, we are currently in the process of making and laying regulations, which will transfer powers for onshore oil and gas licensing within Scotland and Wales to the Scottish and Welsh Governments respectively. The responsibility for onshore oil and gas licensing in England will remain with the Oil and Gas Authority.

The Environment Agency has issued Third Energy with an environmental permit that will ensure a high level of protection for the environment and human health. Before the permit was issued a detailed hydrogeological assessment was undertaken to ensure groundwater would be protected. This included a consultation with Yorkshire Water which was satisfied that activities would not pollute drinking water. The permit requires the operator to undertake baseline monitoring of groundwater, as well as operational monitoring, to ensure the activities are not having an impact on groundwater.

The British Geological Survey has also been undertaking additional groundwater monitoring in the area since 2015 and will continue to monitor the groundwater at the site during operations.

Shale companies need permission from independent expert regulators before any hydraulic fracturing operations can begin:

- A licence for onshore oil and gas exploration is required from the Oil and Gas Authority

- Planning permission is required from the local Mineral Planning Authority

- Permits to operate a site are required from the Environment Agency

- Safety on a drilling site and standards of well construction are regulated by the Health and Safety Executive

- A drilling consent is also required from the Oil and Gas Authority

We are confident that we have a robust regulatory regime in place. The Government will keep the regulatory regime for shale under review as the industry develops to ensure it is proportionate and fit for purpose.

My Lords, shale could promote the opportunity

of a new, domestic source of gas which adds to our energy security. Since 2000, UK gas production has decreased and import dependency has increased. This Government have been clear that shale development must be safe and environmentally sound. As our response to the Committee on Climate Change report states, we believe that each of the three tests for shale gas development will be met.

We have made it clear that we will take steps to meet our carbon targets, particularly by 2050, and we agreed on the fifth carbon budget before the Summer Recess. In relation to the tests, the first test is met by our regulatory system; tests 2 and 3 will be met by the commitments we will be making in the carbon budgets.

A planning application for the extraction of shale gas in Ryedale is currently under consideration by North Yorkshire County Council. It would not be appropriate for the Government to comment on the specifics of any proposal. It will be for the Council to take into account the impacts of the proposed development on the local economy and the environment as relevant in its determination of that application.

The Government continues to support the development of the shale industry in the UK. It has the potential to power economic growth, create tens of thousands of jobs and provide a new domestic energy source, making us less reliant on imports from abroad.

We receive a wide variety of representations on onshore unconventional oil and gas, and we always listen carefully to the views expressed.

The legal protections are in the Infrastructure Act 2015, which my hon. Friend played a role in shaping as it went through this House. I want to pay tribute to her for her long service in this House for her constituents: she has been unending in her determination to support them. I would say that anybody looking to propose a development of unconventional oil and gas ought to act as though the provisions of the Infrastructure Act were in place. There will be a period before they are formally implemented, but we need to ensure that development continues in the assured and careful manner provided for in the Act.

I certainly commit to my hon. Friend that we will ensure that there are proper environmental protections for water, as part of the Environment Agency’s work on protection for fracking areas. On the Department’s achievements, we have put food and farming at the heart of the long-term economic plan. We have seen food exports rise to £19 billion. That is vital for the one in eight people in this country who work in food and farming.

The Environment Agency (EA) is the regulator for onshore gas operations in England. It requires operators to obtain environmental permits which contain conditions that ensure risks are properly managed and will not allow companies to start work unless they can demonstrate how they will provide a high level of protection for people and the environment. The EA will monitor compliance with permits and take enforcement action if it believes permit conditions have been breached.

The EA undertakes inspections based on its assessment of the risks presented by a particular site. Often the site operator is responsible for environmental monitoring, which the EA then examines to ensure that they are abiding by their permit conditions. In some cases, depending on the risks presented by a site, the EA may undertake extra monitoring itself.

The environmental permits require operators to monitor the emissions from their activities and assess their environmental impact. They do this in order to demonstrate to the EA that pollution is minimised and to comply with the limits specified in their permit. The monitoring must be carried out to recognised standards by competent personnel. The EA recommends that operators do this through its Monitoring Certification Scheme (MCERTS). Operators can choose to use an alternative certified monitoring standard, as long as it is equivalent to the MCERTS standard.

MCERTS is the Environment Agency’s Monitoring Certification Scheme. It provides the framework for businesses to meet EA’s quality requirements. If operators comply with MCERTS, the EA can have confidence in the monitoring of emissions to the environment.

The EA will adopt a compliance assessment plan for each site that sets out how it will measure the operator’s compliance and ensure that environmental risks are properly managed. This may include a variety of methods such as audit, site inspections, check monitoring, sampling, and reviewing operator records and procedures.

In addition, DECC officials are currently developing further measures to provide independent evidence directly to the public about the robustness of the existing regulatory regime, as announced in the Autumn Statement.

The Environment Agency will make a case by case assessment of monitoring requirements. There is provision in the environmental permit for an operation involving hydraulic fracturing to require monitoring indefinitely post closure of a well. The Environment Agency will not allow surrender of the permit unless it is satisfied that the well has been decommissioned in line with standards set by the Health and Safety Executive, the site has been returned to a satisfactory condition and there is no significant on-going risk to the environment.

The recent Infrastructure Act 2015 makes clear that any hydraulic fracturing activity cannot take place unless appropriate arrangements have been made for monitoring emissions of methane into the air. During operations the operator will be required to undertake environmental monitoring, including emissions monitoring, to demonstrate compliance with their permits. In some cases, depending on the risks presented by a site or community concerns, the Environment Agency may undertake extra monitoring themselves.

My rt. hon. Friend the Secretary of State will not grant well consent unless he is satisfied that an environmental permit is in place which contains a condition requiring compliance with a waste management plan providing for the monitoring of emissions of methane into the air for the period of the permit.

The Office for Unconventional Gas and Oil is part of DECC. It works closely with regulators and industry to ensure that regulation is as efficient as possible whilst remaining robust to safeguard public safety and protect the environment.

The Department has received representations about self-monitoring from various parties, including members of the public, NGOs and a Minerals Planning Authority.

The Department of Energy and Climate Change will maintain and regulate controls to mitigate risks of seismic activity, including requiring developers to submit a Hydraulic Fracturing Plan providing for a traffic light system.