LONDON—The U.K. government said Thursday it will fast-track
planning applications to explore for shale gas in an effort to
kick-start the country's nascent industry.
The move limits to 16 weeks the time that local governments in
England have to make a decision on whether to allow a company to
explore for shale gas using hydraulic fracking. The
procedure—essentially pumping water, sand and chemicals into
shale-like rock formations to extract natural gas—has triggered
stiff opposition among some environmental groups and others across
Europe. In France, for instance, the procedure is banned
outright.
In the U.K., the Conservative government of Prime Minister David
Cameron has generally supported fracking as a way of helping to
lessen Britain's dependence on energy imports. But efforts by
mostly small energy companies to drill have been stymied by local
opposition and long local government reviews. So far only a handful
of shale gas wells have been drilled, and only one well has been
fracked.
In Lancashire, in northwest England, for instance, the county
government's planning authorities deliberated for over a year
before rejecting applications by privately held Cuadrilla Resources
Ltd. to drill and frack up to eight wells at two sites. Cuadrilla
is appealing the decisions.
"To ensure we get this industry up and running we can't have a
planning system that sees applications dragged out for months, or
even years on end," said U.K. Energy and Climate Change Secretary
Amber Rudd. Under the new rules, which take immediate effect, the
government will have the power to intervene and make a decision to
approve or reject applications when local authorities are taking
too long.
Fracking critics said the move would allow the government to
override local decision making. "Bulldozing fracking applications
through the planning system against the wishes of local people and
councils will simply fan the flames of mistrust and opposition,"
said Friends of the Earth planning adviser Naomi Luhde.
Shares in shale-gas explorers IGas Energy PLC and Egdon
Resources PLC surged on the government's announcement. A group of
tiny shale companies, some of which have financial backing from
large European energy companies including Total SA and GDF Suez of
France, are preparing to submit applications to drill and frack in
Britain.
IGas said the policy gave clarity on the timetable for
determining planning decisions for onshore oil and gas exploration.
Cuadrilla said it was in the national interest to explore for shale
gas to see if there is enough supply to meet domestic demand for
the fuel.
Write to Selina Williams at selina.williams@wsj.com
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