UK Shale Gas

Debate between Lord Lilley and Kerry McCarthy

Thursday 18th July 2013 Westminster Hall

[Kerry McCarthy (Bristol East) (Lab)]

As always, it is a pleasure to serve under your chairmanship, Mr Amess. I want to focus on the area in Somerset that borders my constituency. I note that the hon. Member for Wells (Tessa Munt) intends to speak next, so I hope that I do not steal too much of her material.

So far, four petroleum exploration and development licences have been granted in an area extending from Keynsham, just south of Bristol, down to Pilton and Evercreech—east of Glastonbury—and covering towns such as Marksbury, just south-west of Bath. The area is significantly covered by green belt and includes the Mendip hills—an area of outstanding natural beauty—and there are water catchments for several areas, including Bristol. Bath’s hot springs, which are of course a world heritage site, could be affected. The unique combination of features in the region is said to result from the

“specific geological circumstances of the Mendip Carboniferous strata.”

I understand that UK Methane, which has been granted three of the licences in partnership with Eden Energy, has confirmed that it has been working on plans in the Ston Easton area and around Compton Martin, both within the Chew valley, for its next test drilling sites. UK Methane intends to apply for permission for full production at a site beside the Hicks Gate roundabout on the Bristol ring road in Keynsham towards the end of 2013. Again, that is very close to the border of my constituency. I should say that the areas have been identified for coal bed methane extraction, rather than for fracking, although coal bed methane extraction commonly comes under the same heading and the process can involve fracking.

I thank Louise from Frack Free Somerset for her time this week in setting out the organisation’s concerns. The umbrella organisation brings together many groups, from families to farmers and from the Mendip Campaign to Protect Rural England to Bristol Rising Tide. Residents are particularly concerned about the impact of possible soil, water and air pollution on tourism and agriculture, and there are also concerns about light and noise pollution, especially as some wells could be flaring off gas 24/7. There will be noise from rigs operating 24 hours a day and roads will become blocked with lorries carrying chemicals and waste.

Another key concern is the potential for water contamination, which could also affect people living outside the licence area. The reservoir water supply in the Chew valley needs to be protected, and the impact on the hot springs that supply Bath’s spa water is still unknown. The British Geological Survey’s report to Bath and North East Somerset council concluded that hydraulic fracturing within the carboniferous rocks would

“pose an undefinable risk to the springs.”

The written ministerial statement issued by the Secretary of State for Energy and Climate Change on 13 December 2012 acknowledged instances of water contamination outlined in reports by US regulators and review bodies, which he said confirmed

“the need for the industry to consistently apply good practice, and the need for proper scrutiny and oversight of the industry to ensure that this is in fact done.”—[Official Report, 13 December 2012; Vol. 555, c. 47WS.]

The Environment Agency is of course responsible for providing that scrutiny, but there is real concern that it does not have the staff to monitor wells effectively.

Residents in the area who are opposed to the plans are particularly concerned by evidence emerging from coal bed extraction in south-west Queensland, from gas leaking into local rivers to perceived heath problems such as nosebleeds and skin rashes. The Health Protection Agency does not appear to have published its review of the public health impact of shale gas. I hope that the Minister agrees that potential health risks should be assessed before exploration is allowed to go ahead.

Bristol Greenpeace has raised with me its concern about UK Methane, which was described by a local resident, Laura Corfield, in a recent article in The Guardian by John Harris as

“a company of two guys in a broom cupboard”.

It is difficult to confirm UK Methane’s financial position, but John Harris tracked down its head office to an industrial estate in Bridgend with no listed telephone number. I understand that DECC has set out criteria that need to be met for a company to become a licensee, including a level of financial capacity to show that it is able to meet the actual costs that may be reasonably expected to arise.

How does awarding three licences to UK Methane square with DECC’s guidance? Is it presumed that UK Methane will ultimately be trading its licences to a larger company in the same way as with Eden Energy, with which it was partnered and that has now sold its stake to Shale Energy, a UK firm, for a large amount? That does not appear to be consistent with DECC’s view that licences are not regarded as

“mere tradable assets, and we expect companies to buy licence interests with a view to exploiting them—not merely to sell them on.”

There are specific issues with the area’s geology, including the prevalence of coal mine shafts in Bristol and Somerset, which makes the land more unstable and potentially more prone to both subsidence and tremors. A recent technical report by independent geologists Integrale Ltd concludes:

“Unlike much of North America and Australia where ‘simpler’ rock strata occur, the Carboniferous Coal Measures of the Bristol-Bath Basin form the most tectonically complex area of the UK, ie the rocks are highly fractured, folded, contorted and faulted... So gasfield exploration and exploitation in this district will be commercially and technically ‘high risk’”.

There is a point about whether companies need public liability insurance, given the risks. I understand that, apart from employers’ liability insurance, there is no statutory requirement for insurance.

The hon. Member for South Thanet (Laura Sandys), who is Parliamentary Private Secretary to the Minister of State, Department of Energy and Climate Change, the right hon. Member for Bexhill and Battle (Gregory Barker), said that planning applications for shale gas

“make onshore wind farms look like a walk in the park.”—[Official Report, 6 September 2012; Vol. 549, c. 146WH.]

She was referring to the public opposition that is likely to be encountered.

[Mr Lilley]

Does the hon. Lady ever feel that she has a duty to her constituents not merely to pander to every anti-development pressure group and to give credence to every scare story, but to give some balanced account of what, for example, the royal societies, the Royal Academy of Engineering and the British Geological Survey have said? Two million such wells have been drilled in the States without untoward effect.