Expect fracking in a town near you
The chancellor announced in the budget ‘Shale gas is part of the future. We will make it happen.’
Water UK concluded that fracking is “safe” (BBC News 9 November). A spokesman said “there are risks, but we feel that they’re risks that can be mitigated”.
On 31 October Public Health England concluded that the shale gas emissions pose a “low” risk to public health.
Even the business community has given its backing. In the Report from the Business Taskforce “Cut EU red tape” in October 2013, the Taskforce recommended that “there is no need for a new detailed Directive on shale has”. A prescriptive Directive would “deter investment”, “threaten the exploitation of this valuable source of energy” and provide scope for legal challenge”.
On 13 January 2014 David Cameron announced that local authorities in England can keep 100% of business rates that they collect from shale gas sites.
It appears that the policy debate has already been decided.
What is fracking?
Shale gas is a natural gas, predominantly methane, that is trapped in shale rock.
Hydraulic fracturing (“fracking”) involves pumping water and chemicals into shale rock at high pressure to release the gas.
The British Geological Survey has identified potential shale gas areas in the North East, across the Pennines, Berkshire, Sussex, Kent and parts of the Midlands, Scotland and Wales.
Prepare for the inevitable
The Department of Energy & Climate Change is encouraging shale gas extraction to reduce the UK’s reliance on imported gas. It is estimated that the UK could meet around 10% of its current gas needs from shale.
Shale fracking is already a reality in the U.S which has seen extraordinary growth rates since 2005.
There is currently no commercial shale gas production in the UK, however this is expected to change. Energy Minister Michael Fallon has said that exploration trials could soon take place in Wiltshire, Hampshire, Surrey, Sussex and Kent.
Low risk to public health
The Public Health England review focused on the potential health impacts of exposures to chemical and radiological pollutants from shale gas extraction, based on data from other countries.
The report concluded that where health impacts have been identified, these have resulted from operational failure and a poor regulated environment.
Ie – there may be a link between emissions and adverse health effects however, with proper monitoring, onsite management and regulation the risks to public health are low.
Public Health England recommendations
• Prior environmental monitoring to provide a baseline for assessment ahead of shale gas extraction.
• Environmental monitoring in the vicinity of extraction sites during the development, production and post-production stages of shale gas wells
• Good well construction and maintenance is essential to reduce the risks of groundwater contamination.
The jury is still out on environmental and property concerns.
Greenhouse gas emissions
Methane is a potent and damaging greenhouse gas. Shale gas extraction could increase greenhouse gas emissions (CO2 and methane) and accelerate climate change.
In April 2013 the House of Commons Select Committee advised that “shale gas could challenge the UK’s ability to meet its statutory climate change targets if it is developed on a substantial scale”.
Groundwater contamination
The effects of fracking on groundwater methane migration and drinking water supplies is relatively unknown, however, the potential environmental and health risks are significant.
Contaminated land lawyer Keith Davidson advised a developer who “knowing permitted” the migration of groundwater methane from a landfill site that impacted residential houses. The build up of methane created an explosion risk.
Earthquake damage
Since fracking is an emerging technique, there is still uncertainty about the impact of seismic activity on the surrounding area.
Two minor earthquakes were caused by fracking trials near Blackpool in 2011. This led to a temporary moratorium on shale gas exploration that was lifted by the government in December 2012.
Siesmic activity could cause structural damage, subsidence and failure of underground utilities. Water UK warned that damage to water pipes could lead to leaks and shortages to people’s homes and businesses.
Loss of property value
Building damage, ground disturbance or environmental clean up operations can result in diminution of value and loss of rent.
Protecting property assets
Although Water UK and Public Health England conclude that fracking with proper management and regulation is safe, there is still a lack of independent peer review. Uncertainties remain over the potential environmental effects and property damage risks.
What can property owners do now?
Desktop search
If properties are located in a likely fracking area, carry out a desktop search.
The GroundSure Energy Report includes a database of planning applications for hydraulic fracturing sites.
http://www.groundsure.com/blogs/new-groundsure-energy-report
Insurance cover
Check that your insurance policy wording covers earthquake damage, subsidence, flooding, diminution of value, loss of rent, business interruption and environmental clean up.
Planning appeals
ELM Law’s planning consultants can advise if you are considering a legal challenge against shale gas exploration in your area.