Lee Rowley

There are five sites in England with the necessary permits to treat all variations of waste water content generated from hydraulic fracturing. In addition, there are other sites around the country which, subject to obtaining the relevant permits, could accept and treat waste water from hydraulic fracturing.

As part of the environmental permit application, and before any hydraulic fracturing can take place, operators must submit a waste management plan to the Environment Agency for approval. This describes the processes and the types of extractive waste that will be generated at the site. The plan must set out how the operator will manage, minimise, reuse, recycle and dispose safely of the extractive waste, and how they will monitor the extractive waste.

As part of their normal responsibilities as one of the independent regulators of the shale gas industry, the Oil and Gas Authority (OGA) is carrying out a scientific analysis of the data gathered during the operations at Preston New Road. It is not a review of the traffic light system.

The OGA will work with recognised and independent geologists and scientists with expertise in hydraulic fracturing operations to assess the data and will provide updates on the progress of this analysis on their website as appropriate.

While not primarily a scientific body, the Oil and Gas Authority (OGA) frequently undertakes some level of scientific analysis, drawing on external data as well as internal data, and external and internal expertise. Recent examples include:

• Geophysical seismic data release packages (2015 & 2016)
• 21^st Century Roadmap projects (ongoing)
• British Geological Survey shale reports (2014)
• East Midlands coal mining seismicity (2017)
• The separation of the Bowland-Hodder shale unit from coal mining activity in the East Midlands (2018)
• Offshore geochemical database (planned summer 2019)
• Reservoir engineering analyses of production data and well test data (ongoing)
• Laboratory analyses of oil and gas fluid properties (ongoing),

As part of their normal responsibilities as one of the independent regulators of the shale gas industry, the Oil and Gas Authority (OGA) is carrying out a scientific analysis of the data gathered during the operations at Preston New Road. It is not a review of the traffic light system.

The OGA will work with recognised and independent geologists and scientists with expertise in hydraulic fracturing operations to assess the data and will provide updates on the progress of this analysis on their website as appropriate.

As part of the Oil and Gas Authority’s (OGA) assessment of an application for hydraulic fracturing operations, the OGA requires the operator to have in place the necessary funds or an insurance policy (including third-party liability) that will cover unforeseen events. All companies on a licence share joint and several liability for obligations and liabilities that arise under it throughout the lifecycle of the licence.

To date, only two wells in the UK have been hydraulically fractured, at Cuadrilla’s sites at Preese Hall and Preston New Road in Lancashire. The well at Preese Hall has been fully plugged and abandoned, while Preston New Road is still operational.

Hydraulic Fracturing Consent (HFC) will not be issued unless the Secretary of State is satisfied that it is appropriate to do so. My rt. hon. Friend the Secretary of State is entitled to refuse HFC and/or, in certain circumstances, can impose conditions to provide additional protections. As set out in the Written Ministerial Statement [HCWS428] of 25 January 2018, as a matter of policy the Government will look at the financial status of all companies wishing to carry out hydraulic fracturing operations, including their ability to fund decommissioning costs. Suitable conditions may be put in place to provide assurance that these costs can be covered.

Following minor seismic events at Preese Hall in 2011, an expert scientific review recommended that a traffic light system (TLS) be put in place, under which hydraulic fracturing operations should be paused if a seismic event was detected at or above a precautionary threshold of magnitude 0.5. The intention of the TLS was to minimise disturbance to local communities and to avoid harm to people or the environment. The TLS was developed in consultation with industry.

The Oil and Gas Authority monitors seismicity as part of their regulatory duties at shale gas sites and requires certain controls and requirements to be adhered to as set out in a Hydraulic Fracture Plan (HFP) which must be agreed between the operator and the regulators before operations can start. The TLS did not specify a pause period after a 0.5 magnitude event, however as a part of the HFP for their first well at Preston New Road, Cuadrilla proposed that they would pause for a minimum of 18 hours should a seismic event greater, or equal to, the 0.5 magnitude threshold be detected. The regulators considered that this was reasonable to allow them sufficient time to analyse seismic data and minimise the risk of trailing events.

Management of fugitive emissions from shale well sites is regulated by the Environment Agency through the environmental permit. As part of the permit application, an operator will need to describe in their Environmental Risk Assessment, Waste Management Plan and in an Emissions Monitoring Plan how they will manage on-site fugitive emissions.

The environmental permits issued to date for sites that involve hydraulic fracturing only allow the venting of natural gas for safety reasons and when carrying out maintenance operations. Venting during routine operations is not permitted by the Environment Agency.

All environmental and waste permits in relation to Preston New Road can be found on the Environment Agency site: https://consult.environment-agency.gov.uk/onshore-oil-and-gas/information-on-cuadrillas-preston-new-road-site/.

Management of emissions from shale well sites is regulated by the Environment Agency through the environmental permits. The permit sets out legally binding conditions on a site by site basis for how activities must be carried out so that the environment is protected.

Operators are required to carry out emissions monitoring, including monitoring of methane to air before and during shale gas operations. They also need to have an agreed gas management plan for leak detection and repair for the lifetime of site operations.

The Hydraulic Fracture Plan sets out how an operator controls and monitors the fracturing process. It needs to be approved by the Environment Agency and by the Oil and Gas Authority. The Environment Agency has to be satisfied that the operator has the controls in place to know where fractures go, where waste fluid is left behind underground and that groundwater protection measures continue to operate effectively.

All environmental and waste permits in relation to Preston New Road can be found on the Environment Agency site: https://consult.environment-agency.gov.uk/onshore-oil-and-gas/information-on-cuadrillas-preston-new-road-site/.

All oil and gas exploratory sites need to hold permits under the Environmental Permitting (England and Wales) Regulations 2016. Any company managing extractive waste is required to draw up a Waste Management Plan that has to be approved by the Environment Agency.

The Waste Management Plan describes the processes and the types of extractive waste that will be generated at the site and sets out how the operator will monitor, manage, minimise, reuse, recycle and safely dispose of the extractive waste at an appropriately licenced facility.

All environmental and waste permits in relation to Preston New Road can be found on the Environment Agency site: https://consult.environment-agency.gov.uk/onshore-oil-and-gas/information-on-cuadrillas-preston-new-road-site/.

Flowback fluids are deemed to be a mining waste under the Mining Waste Directive and require an environmental permit for management on site.

A company wishing to use hydraulic fracturing would need approval from the Environment Agency on its proposed methods for safe reuse and recycling as part of its Waste Management Plan. The Environment Agency and the European Commission have provided guidance on appropriate methods and techniques. This assessment is made on a case by case basis.

The Environment Agency has adopted a precautionary approach and does not allow the re-injection of flowback fluid for disposal underground.

All environmental and waste permits in relation to Preston New Road can be found on the Environment Agency site: https://consult.environment-agency.gov.uk/onshore-oil-and-gas/information-on-cuadrillas-preston-new-road-site/.

The Infrastructure Act 2015 makes it clear that hydraulic fracturing activities cannot take place unless an independent inspection of the well has been carried out by the Health and Safety Executive (HSE). My rt. hon. Friend the Secretary of State will not issue a Hydraulic Fracturing Consent unless he is satisfied this has happened. Specifically, the Secretary of State will require a certificate from the HSE confirming that an inspection of the well site has been carried out by its inspectors.

To this end, every shale well site will receive an on-site inspection by the HSE as well as the Environment Agency in the exploration stage. Through notifications and weekly reports made by the well operator, the HSE also inspects well design and monitors progress to ensure the operator manages risks effectively throughout the life cycle of the well. The HSE’s inspection of these notifications and weekly reports, which occurs before and during construction, is carried out by specialist wells inspectors. Any significant changes to well construction are subject to the same scrutiny.

Under the Traffic Light System (TLS), regulated by the Oil and Gas Authority (OGA), if a seismic event of magnitude 0.5 or above is detected (a “red event”), injection must be paused and pressure in the well be reduced, followed by monitoring for a minimum of 18 hours to determine the cause of the seismic event. This precautionary threshold is set at a level well below what could be felt at the surface.

This threshold and pause in operations allows the OGA to review the event to ensure it is in line with the geological understanding set out in the Hydraulic Fracture Plan (HFP), which must be agreed with regulators before operations can commence, and that the risk of induced seismicity is being appropriately managed by the operator.

The Traffic Light System applies to seismic events recorded during injection or pumping operations, therefore red events are categorised as those of magnitude 0.5 or greater occurring during these operations. However, the Hydraulic Fracture Plan (HFP) for Cuadrilla’s operations at Preston New Road stipulated that any trailing event recorded at magnitude 0.5, or above, also required an 18 hour pause to allow for monitoring and assessment. The HFP must be agreed between the operator and regulators ahead of operations commencing.

The Government has made good progress in laying the up to 600 statutory instruments required by exit day to ensure a functioning statute book. As of 31 January, my department has laid 62 exit related statutory instruments. All exit related statutory instruments are published on legislation.gov.uk, and include ‘EU Exit’ in their title.

The Shale Environmental Regulator Group (SERG) complements the existing regulatory regime and operates in a virtual capacity. This is afforded through existing budgets to the Environment Agency, Health and Safety Executive and Oil and Gas Authority, with the exception of some specific incremental costs for three roles within the Environment Agency which cover activities for coordination and communications which are to be agreed annually. The cost within this first year for these roles is £75,000 and there have been no further additional roles or funding to any of the other regulators.

The Shale Environmental Regulator Group is a virtual entity bringing together the regulators of the onshore oil and gas sector, including shale gas operations (the Environment Agency, the Health and Safety Executive and the Oil and Gas Authority). Each of these regulators has the appropriate expertise and is properly resourced to enforce the regulations for which they are responsible. The Shale Environmental Regulator Group creates a single interface for Mineral Planning Authorities and industry, to streamline information access to the regulations, and three current employees of the Environment Agency have been deployed to support this new entity.

Protesters’ rights must be balanced with the rights of others to go about their business lawfully, without fear of intimidation or serious disruption to the community.  Rights to peaceful protest do not extend to violent or threatening behaviour and the police have powers to deal with any such acts. Any impact of protest activity on local access and highways is a matter for local police forces.

In the UK, strong controls are in place to mitigate any risks from induced seismicity due to hydraulic fracturing operations. The Oil and Gas Authority (OGA) monitors seismicity as part of their regulatory duties and they require operators, as part of a pre-agreed Hydraulic Fracture Plan, to pause if a seismic event of 0.5ML or above on the ‘Richter Local Scale’ is detected. Operations will only be allowed to proceed if the independent regulators determine there are no safety concerns and that the seismic event conforms to the thresholds agreed as part of a Hydraulic Fracture Plan, which they have all signed off.

These regulations ensure that the risk of seismic activity during hydraulic fracturing is assessed in advance and that operations are closely monitored to allow action to be taken by the OGA and other regulators where necessary.

The Department for Business, Energy and Industrial Strategy undertakes quarterly assessments on a range of subjects and topics as part of our Public Attitudes Tracker (PAT). Questions which explore the public’s perception and understanding of shale are included as part of this. The Department has no specific objectives for increasing the ‘rating’ of shale gas in the next twelve months.

The Government understands the development of shale gas exploration and production sites is an issue which directly affects local communities and recognises the need to provide those communities with fact-based information. Therefore, the Government appointed Natascha Engel to be the first Commissioner for Shale gas in October 2018. The Commissioner is a contact point for residents, to listen to their concerns, refer them to relevant and factual research and help improve communication with regulators and industry.

The Department undertakes quarterly assessments on a range of subjects and topics as part of our Public Attitudes Tracker (PAT). Questions which explore the public’s perception and understanding of shale are included as part of this.

The latest report was published on 8 November 2018 using survey data collected between 19 - 30 September 2018. The report can be found at: https://www.gov.uk/government/statistics/beis-public-attitudes-tracker-wave-27.

The UK regulatory regime for shale gas is considered among the most robust and stringent in the world but it is also complex with three regulators: the Environment Agency, the Health and Safety Executive and the Oil and Gas Authority. Therefore, the Government has brought the existing regulators together through a virtual Shale Environmental Regulator Group to act as a single point of contact for Mineral Planning Authorities and industry, to improve the efficiency in resolving regulatory issues on sites and to share best practice.

The Government is confident that the right protection is in place to explore shale safely and each regulator will continue to retain its own independent regulatory functions with the virtual regulator group having no statutory powers.

The Shale Environmental Regulatory Group is a virtual entity bringing together the Environment Agency, the Health and Safety Executive and the Oil and Gas Authority to provide a single interface for Mineral Planning Authorities and industry. It is not a statutory body and has no new powers or regulatory responsibilities. Each regulator will continue to retain its own independent regulatory functions, duties and enforcement powers as set out in law.

In the Written Statement of 17 May 2018, the Government committed to consult on the principle of whether non-hydraulic fracturing shale exploration development should be treated as permitted development. The consultation sought views on a proposed definition of non-hydraulic fracturing shale exploration development. The Government will respond to the consultation in due course.

The figure quoted is an industry estimate that has been modelled on scenarios in the Institute of Directors’ report entitled ‘Getting shale gas working’.

The shale gas industry has made a commitment through its Community Engagement Charter[1], to provide benefits to local communities at locations where hydraulic fracturing takes place.

[1] http://www.ukoog.org.uk/community/charter

This is publicly available information and can be found at https://www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes.

I have met periodically with both shale gas companies and industry representatives.

Since June 2017, in my capacity as Minister for Energy and Clean Growth, I have met with a range of stakeholders, including representatives from shale gas companies.

I have had a number of meetings with stakeholders interested in shale gas exploration, but have not yet had opportunity to visit a site.

The Department for Business, Energy and Industrial Strategy has not made any estimates on the proportion of UK gas demand that could be met from UK-sourced shale gas.

I refer my hon. Friend to the answer I gave the hon. Member for Southampton, Test on 6th April 2018 response to Question 134603. The Government will continue to monitor progress of the shale gas industry and will revise its estimates, as appropriate, as the industry develops.

I refer my hon. Friend to the answer I gave the hon. Member for Southampton, Test on 6th April 2018 response to Question 134603. The Government will continue to monitor progress of the shale gas industry and will revise its estimates, as appropriate, as the industry develops.

I refer my hon. Friend to the answer I gave the hon. Member for Southampton, Test on 6th April 2018 response to Question 134603. The Government will continue to monitor progress of the shale gas industry and will revise its estimates, as appropriate, as the industry develops.

Getting a smart meter is the best way to avoid inaccurate bills and increased energy costs. Smart meters are bringing an end to estimated billing and are expected to take an estimated £300m off energy bills in 2020 alone.

Smart meters must comply with relevant legislation on measurement, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 and the Measuring Instruments (Gas Meters) Regulations 2006. The accuracy of all meters is also monitored through the in-service testing (IST) scheme, and energy suppliers have strong commercial incentives to ensure that smart meters installed are accurate and function correctly given the costs of replacement.

Ofgem require suppliers to treat customers fairly, including setting out in contracts compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing. These requirements apply with smart meters as they do with traditional meters.

Instances of back-billing sometimes occur after installations of smart meters due to an absence of meter readings from a legacy meter, and are often mistakenly attributed to a smart meter being faulty. BEIS has worked with energy suppliers to identify and share good practice to mitigate the risk and impact of consumers receiving back-bills when they have a smart meter fitted, and energy suppliers cannot back-bill their domestic customers for more than 12 months where the consumer is not at fault.

Getting a smart meter is the best way to avoid inaccurate bills and increased energy costs. Smart meters are bringing an end to estimated billing and are expected to take an estimated £300m off energy bills in 2020 alone.

Smart meters must comply with relevant legislation on measurement, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 and the Measuring Instruments (Gas Meters) Regulations 2006. The accuracy of all meters is also monitored through the in-service testing (IST) scheme, and energy suppliers have strong commercial incentives to ensure that smart meters installed are accurate and function correctly given the costs of replacement.

Ofgem require suppliers to treat customers fairly, including setting out in contracts compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing. These requirements apply with smart meters as they do with traditional meters.

Instances of back-billing sometimes occur after installations of smart meters due to an absence of meter readings from a legacy meter, and are often mistakenly attributed to a smart meter being faulty. BEIS has worked with energy suppliers to identify and share good practice to mitigate the risk and impact of consumers receiving back-bills when they have a smart meter fitted, and energy suppliers cannot back-bill their domestic customers for more than 12 months where the consumer is not at fault.

Getting a smart meter is the best way to avoid inaccurate bills and increased energy costs. Smart meters are bringing an end to estimated billing and are expected to take an estimated £300m off energy bills in 2020 alone.

Smart meters must comply with relevant legislation on measurement, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 and the Measuring Instruments (Gas Meters) Regulations 2006. The accuracy of all meters is also monitored through the in-service testing (IST) scheme, and energy suppliers have strong commercial incentives to ensure that smart meters installed are accurate and function correctly given the costs of replacement.

Ofgem require suppliers to treat customers fairly, including setting out in contracts compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing. These requirements apply with smart meters as they do with traditional meters.

Instances of back-billing sometimes occur after installations of smart meters due to an absence of meter readings from a legacy meter, and are often mistakenly attributed to a smart meter being faulty. BEIS has worked with energy suppliers to identify and share good practice to mitigate the risk and impact of consumers receiving back-bills when they have a smart meter fitted, and energy suppliers cannot back-bill their domestic customers for more than 12 months where the consumer is not at fault.

In October 2017, the Government published a report summarising gas security, including consideration of the role of shale gas, over the next 20 years:

https://www.gov.uk/government/publications/gas-security-of-supply-strategic-assessment-and-review.

UK security of supply is provided by having access to a diverse range of sources, of which shale gas could be one. However, it is not yet known how much of the UK shale gas resource will ultimately be recoverable, or what rates of extraction, deliverability or reliability could be assumed if shale sources are found to be viable.

As such, while shale gas has the potential to support gas security of supply in the UK at a time when UK Continental Shelf supply sources are in decline, and to reduce reliance on imported gas, we do not have a figure on the number of wells needed to have an effect on security of supply.

Government security of supply assessments have conservatively assumed no shale contributions during the next 20 years.

Ofgem, as the energy regulator, are responsible for deciding what information suppliers have to provide on energy bills. Too much detailed information on energy bills is not always an effective way to engage with consumers who can find this too complex or confusing. Ofgem are therefore introducing a principles based approach which allows bills to be simplified, with information made available elsewhere in a way which works for consumers. This approach recognises the different preferences consumers have for how they receive information, and balances protection for consumers with greater room for flexibility and innovation in the future. Ofgem are also conducting trials, the first of which concluded in autumn last year, to uncover what works in engaging consumers, without irritating them. These trails will be scaled up and rolled out nationally if successful.

Smart meters installed in Great Britain must comply with the relevant legislation on measurement at the time of installation, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations and the Measuring Instruments (Gas Meters) Regulations.

The Office for Product Safety & Standards (OPS&S) regularly monitors the accuracy of meter populations through the in-service testing (IST) scheme to ensure they continue to perform to an acceptable level. IST therefore forms an important part of consumer protection by ensuring only meters that operate within the prescribed limits of accuracy are used for consumer billing. Further information is available online: https://www.gov.uk/guidance/in-service-testing-for-gas-and-electricity-meters