Shale Gas

Kevin Hollinrake Excerpts

Tuesday 30th June 2015 Westminster Hall

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I beg to move,

That this House has considered shale gas.

It is a pleasure to serve under your chairmanship, Mr Howarth.

Is shale gas exploration right for the UK, right now, and right for the constituency I represent? The benefits of shale gas exploration are clear. Greater energy independence and security at a time of significant international uncertainty is a compelling proposition, as is the prospect of a prosperous new industry that can provide new jobs, business opportunities and direct financial benefit to local communities. The economy is important, but no economic benefit, vested interest or party political pressure could ever lead me to support something that I believed would have a detrimental effect on our countryside or the health of local residents. Over the last 10 months, I have met parties on either side of the fracking debate in an attempt to get a clearer understanding of the issues.

Shale gas exploitation will produce harmful greenhouses gases. The natural gas produced is a fossil fuel, and many object to its production because when burned it produces carbon dioxide, a greenhouse gas. Some say we should instead focus on renewables, such as wind farms, solar and producing energy from household waste, but most reasonable observers would accept that we are a long way from green energy being able to met all our needs. Natural gas produces 50% less greenhouse gas emissions than coal and can help us to meet our climate change targets more quickly and cheaply. Although renewable energy production is increasing, in 2014 it delivered only 7% of our total energy needs. We need a mixed, and ideally domestic, solution to our energy requirements.

On Saturday morning, I visited the village of Kirby Misperton in my constituency, where an application to drill for shale gas has recently been submitted. Of about 50 people in attendance, 44 were against fracking and six had an open mind; none was in favour. These people are not professional campaigners: they are decent local people, desperately worried that fracking will change their lives forever, and not for the better. Their concerns mainly centre on safety—the potential for contamination of water supplies and air pollution—during production and after the producer has made their money and left; the spoiling of countryside by drilling rigs, noise and light pollution and lorry movements; and, at the end of the day, who cleans up and who pays up if things go wrong.

First, on safety, the fact that other Administrations—France, Germany, New York state and so on—have banned fracking is a major worry to many. So too is the “Shale Gas: Rural Economy Impacts” report from the Department for Environment, Food and Rural Affairs, which had 63 redactions within 13 pages, including of a whole section on the impact on house prices. The Government’s position that

“There is a strong public interest in withholding the information”

did little to ease anxieties. It leads many members of the public to feel that they are being deceived, patronised or treated with contempt. We have only one chance: we need to get it right an to be seen to get it right.

The Environment Agency, Department of Energy and Climate Change, the mineral protections authority and the Health and Safety Executive regulate operations. Having met the Environment Agency, I am confident that our regulations are strong. Fracking will be allowed only outside groundwater source protection areas. According to one representative of the agency, chances of contamination are entering the “realms of fantasy”, but I would like to see a clearer, more robust and independent monitoring regime for the regulations. The Environment Agency is already stretched and cannot be reasonably expected to carry out truly independent checks on the producers’ operations and any consequential effects on the environment.

A 2012 International Energy Agency report on unconventional gas exploration includes in its golden rules:

“Recognise the case for independent evaluation and verification of environmental performance”.

Our current regulations require the producer to instruct a chartered independent contractor to take baseline checks before drilling and to monitor water and air quality before, during and after production. Concerned local residents do not feel that those checks would be truly independent, as there is a clear commercial relationship between the producer and the contractor. Would it not make sense for the Environment Agency to instruct the relevant chartered environmental engineers, with the bill reimbursed by the producer?

The Royal Society’s 2012 report states:

“The operator commissions and pays for the services of the well examiner… This might be someone employed by the well operator’s organisation. It is important that those carrying out examination work have appropriate levels of impartiality and independence from pressures, especially of a financial nature. Promotion, pay and reward systems should not compromise professional judgement…. The independence of the scheme must not be compromised.”

Evidence provided to the House of Lords Economic Affairs Committee in 2013-14 states:

"the weakest point of the regulatory process concerns the Environment Agency”,

which appears to have

“insufficient in-house expertise.”

The Committee stated that the agency

“should make it much clearer to the industry and the public exactly how and when they would inspect well sites.”

Many are also concerned about the amount of water required and whether it can be safely decontaminated and recycled, and whether contaminates can be disposed of, particularly on the scale proposed.

The spoiling of countryside is another major concern. I would be first in a long line of local residents who would fight tooth and nail to prevent any attempt to produce shale gas in my area in a way that industrialises the landscape. Traditionally, the fracking process involves a high number of lorry movements and unsightly infrastructure that could be a real blot on the landscape. Just one of the companies, Third Energy, has stated that it might drill 950 wells in less than a third of my constituency, which would require hundreds of thousands of lorry movements, all in one of the country’s most beautiful counties, with an economy heavily dependent on agriculture and tourism. North Yorkshire County Council, which would handle any application, has to take into account the impact on other parts of the economy, particularly tourism, and the suitability of our roads to handle additional traffic. The beauty of our countryside is North Yorkshire’s main asset and we must protect this at all costs.

A 2012 “World Energy Outlook” report on unconventional gas stated that production is

“an intensive industrial process”,

which

“can have major implications for local communities, land use and water resources… Improperly addressed, these concerns threaten to curb, if not halt, the development of unconventional resources.”

I propose clear planning guidance that there must be buffer zones, with a minimum distance between sites of, say, six miles. We do not want the images of a fracked industrial landscape from North Dakota to become a reality here. The 2012 Royal Society report recommends recycling and reuse of waste water and that water disposal options should be planned from the outset, thereby reducing traffic and the impact on local communities.

Who cleans up and who pays up if things go wrong? We need to make sure that our green fields are not turned into brown fields. Appropriate regulation and supervision may reduce the chances of things going wrong, but we also need to understand and provide for a situation where it does. Although groundwater source protection zones are excluded from fracking activities, what protections are in place for boreholes and artesian wells? According to United Kingdom Onshore Oil and Gas, the body that represents the industry,

“if a company causes damage, harm or pollution to the environment, they can be required under these regimes to remediate the effects and prevent further damage or pollution…. Environmental regulators and planning authorities have the power to require upfront financial bonds to address these risks. The industry does not wish to leave this to the taxpayer or the landowner. As a less expensive alternative to upfront bonds, UKOOG is working with Government on the development of an industry scheme that will step in and pay for liabilities.”

The Royal Society report states:

“Arrangements for monitoring abandoned wells need to be developed. Funding of this monitoring and any remediation work needs further consideration.”

What if the producer has gone bust? Who compensates those who have lost out?

As far as the jewels in the crown are concerned—namely, areas of outstanding natural beauty, national parks, ancient woodlands and sites of special scientific interest—we need to state unequivocally that production will not take place in such areas. We must ensure that people do not feel that the Government agenda is being directed by big business. Many members of the general public do not trust business and also feel, perhaps unfairly, that too often politicians will support business at their expense. We need to take it one step at a time and ensure that people see that the process and facts are being properly monitored, assessed and reviewed.

All energy sources have impacts. As Members of Parliament, we have constituents who might be against onshore wind, solar farms, nuclear power or energy from waste. Twenty years ago in my constituency, many had similar fears when proposals were announced to carry out conventional gas exploration. Protests took place, views were heard and compromises were reached. Gas has been produced in the area ever since, with many residents unaware of its existence. Many members of the public have an open mind on fracking; others have genuine safety concerns. Whatever their viewpoint, it is critical that we keep the public informed and that local communities are consulted on the case for fracking, the potential benefits, the environmental risks and the proposed safeguards. We need to reassure the public that we are prepared to stop if fracking is significantly affecting lives and livelihoods, just as we did in 2011 when it caused earthquakes at Preese Hall in Blackpool.

In summary, we need: truly independent monitoring and publicly available analysis; a defined minimum radius between production sites; a clear solution on water recycling and disposal to reduce traffic; additional blight compensation for any person or community directly impacted; the release of an unredacted version of the DEFRA report; a clear willingness to stop if lives and livelihoods are affected to unacceptable levels; and, a clear answer to the question of who cleans up and who pays if the worst happens. We need to take the public with us, consult, provide expert scientific information and ensure that people do not feel they are being pushed or manipulated.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I congratulate the hon. Gentleman on securing the debate, and I thank him for his reference to Preesall in my constituency. Is he aware that yesterday, Lancashire councillors overwhelmingly voted to reject fracking in the county? The result was very clear: nine voted against and three voted in favour, which broadly reflects opposition to fracking across Lancashire—two thirds of people are in opposition, and the figure might be similar for his constituents over in Yorkshire. We had 300 local businesses write to the council, urging it to reject fracking. Those businesses included farmers, bed and breakfasts, media companies, the retail sector and many others. Does he agree that opposition to fracking runs across many different parts of our communities?

[Mr George Howarth (in the Chair)]

Order. It might be of assistance to remind those hoping to take part in the debate that interventions should be short and to a single point. I think the hon. Lady made a mini-speech there, and I will not tolerate that in any future contributions.

[Kevin Hollinrake]

I absolutely accept that many local residents have real concerns, and we need to take those concerns into account before taking the next steps.

[Mark Menzies (Fylde) (Con)]

As a point of correction, the hon. Member for Lancaster and Fleetwood (Cat Smith) mentioned Preesall in her constituency. For the record, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) was actually referring to Preese Hall, which is a fracking well in my constituency.

--- Later in debate ---

[Kevin Hollinrake]

I am grateful for the lesson in geography. It is not a part of the world I am all that familiar with, but I am very familiar with the geography of the beautiful parts of North Yorkshire, and I am strongly keen to ensure that they remain that way.

As the IEA report recommends, we need to:

“Integrate engagement with local communities, residents and other stakeholders into each phase of a development starting prior to exploration; provide sufficient opportunity for comment on plans, operations and performance; listen to concerns and respond appropriately and promptly.”

The public deserves precise answers to those questions.

[Julian Knight (Solihull) (Con)]

I congratulate my hon. Friend on securing this debate. Does he acknowledge that although the United States and Canada initially saw a transformative economic effect from shale gas, there has been a slowdown since 2014? Some gas fields are running at a loss. Does that not show that we need to ensure that there is an economically viable case in all instances of exploration?

[Kevin Hollinrake]

There is clearly an opportunity here. The volatility of oil and gas prices is not within my remit, but there is commercial pressure to exploit shale gas for future domestic security. I understand that; it is why we need to get it right.

The public deserve precise answers to their questions via every means possible, including a comprehensive series of community meetings conducted by real experts with real answers. It would be all too easy to join the chorus of political voices who oppose fracking in North Yorkshire, but I do not believe that politics should be about doing what is convenient or being swayed by a vocal minority; it is about doing what is right. At this stage, we need to look at the issues and solutions more closely and find those solutions that reassure the public that we have their interests at heart and that allow us to realise the benefits of low-carbon, low-cost energy independence.