Utility Week

14 | 4TH - 10TH NOVEMBER 2016 | UTILITY WEEK Policy & Regulation "When it comes to the fi nancial benefi ts of shale, our plans mean local communities benefi t fi rst" COMMUNITIES SECRE- TARY SAJID JAVID time incor- porate shale gas activities into the Nationally Signi cant Infrastructure Projects pro- gramme pursuant to the Planning Act 2008. The aim would be to try and accelerate the decision-making process and limit the in• uence of local politics. The reality is that it is unlikely there was the political will to take such action with a general election looming. Fracking is not a vote winner. It may be that with Brexit on the horizon, the government takes the oppor- tunity to centralise the decision-making process in relation to an area that is highly politically charged and at the centre of the UK's ongoing energy debate. In practice we will not see the widespread rollout of fracking operations in England until the oil price recovers and the econom- ics of fracking make more sense. There is ongoing turbulence in the global oil markets as a result of the signi cant shale gas pro- duction by the US and the resulting impact this is having on oil production and prices, driven predominantly by the Middle East. Once the economics do make sense, we expect operators to build on the foundations laid by these early applications and appeals. The scaling up of fracking operations will undoubtedly be more rapid than these pio- neering projects. Simon Colvin is partner and national head of environment team at law rm Weightmans LLP Market view O n 6 October Sajid Javid, the secre- tary of state for the Department for Communities and Local Government (DCLG), overturned Lancashire County Council's decision of June 2015 not to allow Cuadrilla permission to undertake further exploratory drilling for shale gas at the Preston New Road site in Preston. Javid did not make a decision on a second appeal by Cuadrilla concerning the Roseacre site, but indicated that he is minded to grant permis- sion if appropriate conditions can be devel- oped to address concerns relating to vehicle movements. The government con rmed its intention to call in the decision in November 2015. Their announcement last week followed the recommendations of the planning inspec- tor a˜ er a public inquiry in February and March 2016. The decision marks another step on the road to more widespread shale gas exploration, and possibly production, across England. The grant of permission for Cuadrilla to undertake further drilling is signi cant because other operators are following Cuad- rilla's lead. North Yorkshire County Coun- cil and Nottinghamshire County Council are both currently considering separate applications, from Third Energy and IGas respectively. The government's decision sets a precedent for these other applica- tions. Although those applications will be judged on their own merits, there is an air of inevitability. Under the 2010-15 coalition government, the localism agenda suggested that decisions in relation to fracking and shale gas explora- tion would be le˜ to local communities. That approach soon changed when the govern- ment woke up to the potential represented by shale gas. Government statements in recent years have indicated the level of support for fracking. Many believe that support is now being borne out in the government's recent decision and will no doubt be re• ected in future decisions should other applications reach the same point. Many commentators have long believed that the government will at the appropriate Shale being prepped to go This government has signalled a much more positive support for shale exploration than the last, and once the oil price recovers the UK could be ready for production. By Simon Colvin. "We have been through an exhaustive environmental impact assessment on this. We have assessed everything; noise, traffi c, water, emissions, etc. The Environment Agency are entirely comfortable with it." CUADRILLA CHIEF EXECUTIVE FRANCIS EGAN

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