Infrastructure Bill [HL]

Debate between Lord Jenkin of Roding and Baroness Young of Old Scone

Monday 10th November 2014 Lords Chamber

[Lord Jenkin of Roding]

My Lords I understand the case that has been made by the noble Baroness, Lady Worthington. I started my consideration of the details of this with the hugely important joint report of the Royal Society and the Royal Academy of Engineering back in June 2012. Indeed, I had substantial discussions with the chairman of the committee that produced the report, Sir Robert Mair, whom I had known previously. Perhaps the most important statement in that report—and it had a great deal of detail backing it up—was that they had reviewed the scientific and engineering evidence on risks associated with UK shale gas development and concluded that those risks,

“can be managed effectively in the UK as long as operational best practices are implemented and enforced through regulation”.

That has been at the heart of my continuing support for the development of the shale gas industry in this country.

My second point—and no doubt my noble friend will be able to elaborate on this—is that the regulation system that we have in this country, in general under the authority of the Environment Agency, is quite different from that in the United States. I am in no doubt that some of the regulation there has been quite seriously defective. That has given rise to accidents that have been reported, and to the lack of support that one is aware of here and that the noble Baroness has referred to. Of course, you only have to read the media to realise that every accident that happens there is greatly magnified through the media—with a trumpet, as it were. If noble Lords studied the various blogs that come out on this every day, I am sure they would realise what an unbalanced argument it has become because of the way in which all these things are presented here in this country.

I have been critical in the past of both the industry and the Government for failing to realise the extent to which they need to fight the case for the development of a shale gas industry. To be fair to the industry, it has now started a considerable programme called “Let’s talk about shale”. Briefly, the leaflet I have been sent speaks of the very considerable activities that the industry is now taking—primarily in the areas of the Bowland shale deposits, because that is where the main arguments come from at the moment, but of course that can eventually be spread nationwide. That is a welcome development, if perhaps a bit belated, but at least it is now happening.

The one point where I agree with the noble Baroness is that the Government have to match that as well, and take these scare stories seriously and counteract them. Indeed, when I talked to the head of the trade association UK Onshore Oil and Gas, I said, “Learn the lesson of instant rebuttal”. We learnt that from a previous Government. If they wanted to scotch a rumour, it had to be the subject of an instant rebuttal. I see very little sign in the media that either the industry or the Government are yet engaging effectively in the instant rebuttal of scare stories.

Having said that, I will perhaps anticipate what my noble friend will say. We now have the most effective system of regulation in the world for our oil and gas resources. It is of a very high standard and admired across the world. There is absolutely no suggestion that the existing powers of the Environment Agency and other bodies involved in this need reinforcing by additional statutory provisions, as in these amendments.

I read the amendments and thought, “For goodness sake, all this is happening already”. The noble Baroness mentioned baseline monitoring. The Environment Agency has the powers—as have the Scottish Environment Protection Agency and Natural Resources Wales—to require baseline monitoring of those environmental indicators it considers appropriate and for the lengths of time it deems suitable for each given site. We discussed this in Grand Committee. I was certainly there arguing that baseline monitoring is hugely important. If there is to be any question of contamination, you have to know what you are starting with. That is what it means and we do that in this country already. I have never heard it suggested that it is anything other than fully effective.

I am not sure that we need the additional provisions in the noble Baroness’s amendments. I have great faith in the ability of our existing monitors. They have these powers and the duties imposed on them. They do not need to be told in detail by Parliament what to do and how to do their jobs, so this is probably unnecessary. I understand the motives behind the amendments, but the issue should be dealt with effectively by proper information programmes to counter the mischievous rumours that one reads in the press every day. I shall be interested to hear my noble friend’s response from the Front Bench, but I do not think that these amendments actually add anything to what we have already.

[Baroness Young of Old Scone (Non-Afl)]

My Lords, I rise to support Amendment 113G. I declare a past interest, having been chief executive of the Environment Agency for eight years. This is a technology that is deeply distrusted by the public. Certainly, my experience of regulation in the environmental field is that if a degree of certainty can be given to both sides—the industry and the public—that is hugely beneficial in removing tension, distrust and suspicion. Industry used to tell me time and again that it would prefer to see clear, unequivocal regulation, which it could then fit its business around and make sure that it was compliant with, so that there was no doubt about the requirements that would be laid upon it. This was the most successful way of developing a degree of trust on hotly contested issues that could have an environmental impact.

Therefore, I urge the Minister to think seriously about placing in the Bill an environmental impact assessment and some of the other associated requirements here. Some of these exist elsewhere in legislation, but there is no harm in making the point that whether they are implemented is not the decision of the Environment Agency but a requirement because this technology is so distrusted by the public. I think it should cover exploration as well as extraction. It should also be associated, if I may say so slightly in advance, with the two amendments—or at least one of them—that I have put down, which we will be debating later. Certainly in the initial stages of this hotly contested area, we need belt and braces, not just belt.

--- Later in debate ---

[Lord Jenkin of Roding]

The noble Baroness had an amendment in Grand Committee which addressed the question of whether there should be downward drilling and whether pads for developing shale gas could be located in any of these places. Although we did not vote in Grand Committee, the argument was perfectly clear that it would depend on the site. You have got planning permission and you have got a whole range of other things. I must confess I have not reread the noble Baroness’s debate on that occasion, but what we were talking about here is 300 metres below.

[Baroness Young of Old Scone]

Perhaps I may give just a couple of examples. Water pollution and the impact on aquifers in general could be quite a substantial issue. We already know that the volume of wastewater coming from shale gas extraction sites is substantial. For the most part that will be brought back to base, but where aquifers are involved we are not absolutely clear about that. There are a number of issues which are not just the site-based issues on the surface. They are about what is happening in terms of underground processes as well.

Infrastructure Bill [HL]

Debate between Lord Jenkin of Roding and Baroness Young of Old Scone

Tuesday 14th October 2014 Grand Committee

[Baroness Young of Old Scone (Non-Afl)]

My Lords, by way of an aside, it is slightly surreal to be debating an amendment to an amendment on something that does not appear in the Bill. I should declare an interest as vice-president of the Royal Society for the Protection of Birds and president of the Wildlife Trust for Bedfordshire, Cambridgeshire and Northamptonshire.

Biodiversity in our species and habitats is not in a good way in this country. The State of Nature report showed that 60% of species are in long-term decline; that is, 755 species in the UK are in danger of extinction. The 2011 UK National Ecosystem Assessment showed that 30% of ecosystem services—the services that we as human beings get from the natural world and the environment—are in long-term decline. It is not, therefore, an issue about “tweety birds”, things that crawl and flowers but the very basic services on which human life depends.

The water framework directive, that highly important piece of European legislation, was responded to by the UK Government, who said that the percentage of waters achieving “good” status by the end of 2015 would increase from 26% to 30%. Alas, we are now in decline, with 25% of waters achieving “good” status under the directive—not a great story. Some of the most important ways in which to turn that around are about making sure that those nationally and internationally important protected sites are the jewels in the crown of our ecosystem services, conservation and environment, and are properly protected so that species, habitats and waterbody quality are maintained.

My amendment would require shale gas extraction not to be permitted within these special conservation sites. I am sure that the Minister will say that the welcome reassurances we have just heard about the existing protection measures continuing should be sufficient: there is a body of European and UK law that already applies to all these sites. Alas, we see that being breached increasingly frequently. We are seeing the first signs of rise in damage to sites of special scientific interest since I thought we had put an end to that at the end of the 1980s. It is a heartbreaking turnaround.

The Committee will understand why I am concerned about the impact of shale gas extraction. There is a significant land take. The sites last for as long as 20 years. There are about 120 well pads per site. The impacts are well beyond the immediate site of entry into the substructure for extraction. There are issues such as water stress, and a recent AMEC report showed that up to 25,000 cubic metres of water per well could be required. That is not just about the abstraction of clean water, which already has many competing demands from human beings, wildlife and other uses, including industrial use, but results in waste water that has to be disposed of. We certainly do not have the waste water capacity to do that. There is water stress and water pollution. We have to be aware of the propensity to spills. The fluids used for extraction can pick up toxins, heavy metals and radioactivity from existing substances in the substructure.

Perhaps what I worry most about is habitat fragmentation and loss. We already know from our experience in the construction of onshore wind and solar technologies that unless they are very carefully handled, we see fragmentation and loss of habitat on a much wider scale than is absolutely necessary. I am not knocking those important technologies, but they need careful management. Of course we need to be aware that these sites create noise and activity such as traffic access and we run the risk of disturbance of some of the most important species.

Some 15% of the land that is under consideration for the next round of extraction coincides with special protection areas, special areas of conservation under European legislation, Ramsar sites, which are important globally designated wetland sites, and SSSIs, which are the jewel in the crown of national protection sites. An example that is very close to my heart is that 85% of the global population of pink-footed geese winter in the UK, yet two of the four main overwintering sites for pink-footed geese lie within the possible shale gas extraction sites. We have to pay real attention to those important areas. Potential licence areas also cover some of our most sensitive river systems. All nine of the Chilton chalk streams suffer from low flows as a result of overabstraction so further abstraction of water and the potential for water quality issues would be a real worry there.

The Government introduced additional planning guidance advising that there should be no shale gas extraction in national parks, the Broads, areas of outstanding natural beauty, natural beauty and world heritage sites except in exceptional circumstances where a public interest test could be shown. We welcome that, but it is not enough. It is guidance rather than having a legislative basis and does not cover sites of biodiversity importance, and our nationally and internationally important wildlife sites.

I welcome the amendments that we will debate shortly that other noble Lords have raised to introduce stronger environmental regulation around shale gas extraction and I appreciate that the Minister was keen to stress that the rights of owners of surface land and the protection of surface land remain. But additional measures are needed, hence my amendment. Removing these sensitive areas from the 14th licensing round would reduce the total area being offered for licence by just 12%. That is not a huge sacrifice in order to ensure that our most important sites remain protected and that we do not see an increase in the threat to our most globally important wildlife sites that we are already beginning to see from other pressures. I beg to move.

[Lord Jenkin of Roding (Con)]

I thank the Minister for her powerful explanation of the case for developing shale gas. She also mentioned the fact that this legislation and, indeed, the whole consultation extended to geothermal energy. It is about that that I would like to say a few words in support of the amendment which I have tabled to the Government’s first new clause.

I totally support the case for extending the right to underground access. It is essential, and equally essential for both shale gas and geothermal energy. One of the advantages of the Recess was that the Government’s response to the consultation was published when we had a bit of time to look at it. I have read it from cover to cover. I have to say that it was not a particularly interesting exercise. I admire very much the detailed attention which was given to the public’s replies to the consultation, and I was not in the least bit surprised that the exercise was used by large numbers of people not to address the main questions the consultation was about. It evoked a torrent of opposition from organisations and people who have declared themselves totally opposed to any form of shale gas development. One thing that rather amused me was the criticism made by some of the people who put in a response about the inclusion of geothermal energy in the same consultation, as if somehow the Government were spoiling their protest by adding something which they probably supported. Conditions about underground access and the need for a simpler process, which I totally support, apply equally well to both. That is made perfectly clear in the impact statement about geothermal activities, which says:

“Operators wishing to extract geothermal energy have to negotiate with landowners for underground access. This is a time consuming, uncertain and potentially costly process. If a landowner refuses access, that project cannot continue”,

or would go ahead only after a lengthy and expensive process.

One thing I gained from the report, the Government’s response and the consultation is just how much more needs to be done by the industry and the Government to make the case for the development of shale gas. The Government have made it perfectly clear—indeed, my noble friend repeated it this afternoon—that over the next 20 or 30 years gas is bound to play a significant role in our energy supplies and how much better that we should have indigenous sources rather than being increasingly subject to the vagaries of a flexible and perhaps unpredictable international market.

I have discussed this with the trade association that represents onshore gas developments. It entirely recognises the problem, but I was left a bit unclear about what it is planning to do about it. It is something that has to be done, and the Government certainly have to take a lead on that.

Geothermal energy is important in this context. When I started reading the paper, I was aware that I did not know nearly as much about geothermal energy as I should. I know that my noble friend Lord Teverson is very knowledgeable about it—he has geothermal in his part of the country, Cornwall—but I was not, so I asked a number of people to explain to me what the potential is, how it should be developed and what they were doing about it. I found that immensely interesting.

I do not propose to use this speech to deliver a lecture to noble Lords, but I will make three short points. Geothermal energy promises to be part of the future energy mix of the United Kingdom. It offers a supply of secure, low-carbon energy without the variability of wind and wave. It is derived from heat radiating from the centre of the earth and must not be confused with ground-source heat from solar warming. That is quite important: one is talking about sources of heat that may be a kilometre, a kilometre and a half or even two kilometres deep.

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[Lord Jenkin of Roding]

My Lords, I do not think that any of us is in any doubt about the importance of baseline monitoring for the purposes of environmental control. I totally agree with much of what the noble Lord, Lord Young of Norwood Green, said about the misrepresentation that is going around on the whole question of fracking. This must be scientifically based. To my mind, that is where both the Government and the industry have so far failed to convince the public of the case for fracking. As the noble Baroness, Lady Worthington, said in her opening speech, my noble friend Lady Verma made the case for the need for shale gas on environmental grounds. That is the case we need to go on pressing.

With regard to the amendment moved by the noble Baroness, Lady Worthington, an enormous amount of work is being done by the British Geological Survey on the baseline monitoring of contaminants of various kinds, and on the protection of water. This has been sparked by examples in America, where there never has been any proper baseline monitoring. That is an example of the imperfections of their system of regulation, of which our people have taken full account. They recognise that if we are to control contaminants—it is very important that that should be done—we need to know where we are starting from. That is the heart of the noble Baroness’s amendment.

I am told that the British Geological Survey is about to publish a further study. It originally put in the 12-month period on the grounds that there might be seasonal variations. Its latest work on the contamination of drinking water has shown that there are no seasonal variations: there is no evidence of that at all. I would not be in the least surprised if, in its further report—this is the advice I have had—it finds the 12-month period to be unreasonable and that the best method of assessing baseline monitoring for methane should be scientifically based. The work that is done by the BGS in this country is, for the most part, to the highest standard. The Government are entirely justified in putting their faith in it.

I do not know what the Minister will say in response to the amendment, but I would guess that everything the noble Baroness, Lady Worthington, is asking for is, in one way or another, already being achieved or will be achieved by the Government’s existing policy. I am interested to hear my noble friend’s reply. I share the view of the Committee that baseline monitoring is absolutely crucial if we are to have effective regulation.

[Baroness Young of Old Scone]

My Lords, I shall comment on baseline monitoring. We need to learn from other monitoring schemes that are already in place as a result of regulatory regimes and the planning system.

There are two issues here. First, the 12-month period may not be required for methane monitoring but it certainly is for biodiversity monitoring, which is also mentioned in one amendment in the name of the noble Baroness, Lady Worthington. Too often, I have seen planning appeals and inquiries get hideously beached as a result of inadequate 12-month monitoring of biodiversity impact. If a species is present only at certain times of the year, it is quite difficult to do a baseline account of it if you are doing that in a season when the species is not present and is not expected to be present. That causes delays in planning processes. It is important to make it very clear that some of these impacts and baselines can be dealt with only on a 12-month basis.

I accept the commendation by the noble Lord, Lord Jenkin, of the work done by the BGS and other statutory agency baseline surveys and ongoing monitoring processes. However, the other point of principle we ought to regard as important is the need to make commercial organisations that want to undertake commercial activities responsible for ensuring that the baseline monitoring that needs to happen before they begin is undertaken—and undertaken at their expense. That is an important principle commonly adopted in many regulatory regimes and in much of the planning system. We must not move away from that. It is important that the commercial organisations get their heads around what the issues of their impact are before they start to put forward their propositions, rather than relying on somebody else’s baselines and not really understanding, when their propositions come forward, what they will need to monitor and how they will need to monitor it. That is an absolutely fundamental principle.