Infrastructure Bill [Lords]

Glyn Davies Excerpts

Wednesday 11th February 2015 Commons Chamber

[Amber Rudd]

On Report in the Commons, I informed the House of our intention to strengthen the amendments we tabled in Committee by specifying that if the Committee on Climate Change advises us that onshore oil and gas might adversely impact on climate change objectives, the Secretary of State must either make regulations providing that the right of use for petroleum and deep geothermal exploitation will no longer be available for future projects, or report to Parliament on the reasons for not doing so. Amendment 20B and consequential amendment 20C seek to address that commitment. By introducing them, we are making it absolutely clear that shale development will remain compatible with our goal to cut greenhouse gas emissions.

The Government disagreed with Commons amendment 21 and proposed amendments 21B, 21C and 21D in lieu. There is a clear and pressing need to ensure that this legislation is absolutely right. As drafted, amendment 21 cannot be included in the Bill. Although the courts would attempt to interpret the provisions, it is not viable as law and simply would not work in practice. Our amendments are designed to support the growth of the shale industry, while reassuring local communities it will be done in a safe and responsible manner. They also ensure clarity for all interested parties by proposing clauses that can be interpreted and enforced effectively by the courts.

Regarding the scope of our amendments, they will apply to associated hydraulic fracturing for onshore oil and gas, as defined in the amendment. Geothermal operations will be excluded. Conventional oil and gas well stimulation techniques will also be excluded, which makes perfect sense as they have been used for decades onshore. The territorial extent of the amendments will be limited to England and Wales. To that end, I ask that this House agree with amendment 33A.

[Glyn Davies (Montgomeryshire) (Con)]

Will the Minister clarify the position in relation to hydraulic fracturing in Wales? We read reports that this matter may well at some stage be devolved to Wales. Is that under consideration, and could it happen in the foreseeable future?

[Amber Rudd]

I thank my hon. Friend for the opportunity to clarify that. The Welsh Government, as he will know, already have substantial control of onshore oil and gas activities through planning controls and environmental regulation, as they are already devolved. As he will also be aware, the Secretary of State for Wales is leading discussions on further powers for Wales ahead of the St David’s day announcement. I understand that there is some merit in these decisions being devolved to the Welsh Assembly. However, this issue requires further consideration before a decision can be taken.

Turning to the specifics, we outlined on Monday in the other place that Government amendments 21B, 21C and 21D in lieu are designed to ensure associated hydraulic fracturing cannot occur unless a set of 13 conditions have been met. The Secretary of State will not grant consent for associated hydraulic fracturing unless that has been done. I would be very happy to speak about each condition if colleagues have specific questions, but I would like to focus on areas of concern raised during Monday’s debate and by amendments that have been tabled subsequently.

First, amendment (a) indicates a misunderstanding of our clauses, and specifically the way in which subsection (3) works. At the end of (3)(a) it very clearly says “and”, not “or”, so paragraph (3)(b) is not a get-out provision for the Secretary of State, but an additional safeguard to ensure that my Department refuses consent if there is something else wrong with the proposal. We should not change anything here.

Secondly, amendment (b) asks that the environmental impact assessment of the development be taken into account. I want to reassure the House that there is no difference between us on the outcome we are seeking to achieve; it is simply a question of how we deliver the requirement in law. The term “environmental information” is used in the Town and Country Planning (Environmental Impact Assessment) Regulations 2011. It captures the information that must be taken into account by the relevant planning authority before planning permission is granted, including, but not limited to, an environmental statement. This process is commonly referred to as an environmental impact assessment. The Secretary of State cannot give consent for associated hydraulic fracturing unless he is satisfied that the environmental impact of the development has been taken into account by the relevant planning authority. He can be satisfied that this has happened where he is given a notice by the local planning authority stating that the environmental information has been taken into account. As I have said, this is simply about delivering a provision that has a meaning in law. I hope that reassures the House.

Amendment (b) asks that we refer to fugitive emissions, rather than emissions of methane into the air in our clauses. The Environment Agency already requires operators to manage, monitor and report on fugitive emissions. It is unlikely it would require this for carbon dioxide emissions, which are likely to be negligible. The MacKay Stone report on potential greenhouse gas emissions from shale gas sites shows that on average, shale gas is approximately 86% methane and 3% carbon dioxide, as well as ethane, propane and nitrogen. Methane represents more than 99% of the carbon dioxide equivalent emissions—in other words, the global warming emissions—from fugitive shale gas. It therefore makes sense for the conditions related to associated hydraulic fracturing to focus on methane. The principal source of carbon dioxide emissions would be from combustion of gas in flaring. Such emissions from flaring are modelled and monitored as part of the permit conditions. I can also confirm that we are actively considering whether the drilling of bore holes for monitoring purposes should be classified as permitted development, and we hope to take this forward in the near future.

Amendment (b) also deals with individual notification of residents. It is just not feasible to require separate notifications for each individual resident regarding associated hydraulic fracturing. We live in a free country where individuals are not required to register where they live. It would be practically impossible for the Secretary of State to identify each individual resident and check whether they had been notified, so making individual notification a condition of issuing consent for associated hydraulic fracturing would leave every consent wide open to legal challenge by third parties. Similarly, it would be unreasonable to introduce a demand that would require every single resident to consent to associated hydraulic fracturing.