Onshore Gas

Mark Menzies Excerpts

Wednesday 24th October 2012 Commons Chamber

[Mark Menzies (Fylde) (Con)]

I am delighted to have secured this evening’s Adjournment debate on an extremely important issue. Many of the issues related to onshore gas exploration and extraction are, rightly, of concern to residents in my constituency and throughout the country. I am pleased to see a number of my hon. and right hon. Friends present and taking a keen interest in the debate. I pay particular tribute to my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw), who recently secured a Westminster Hall debate on wider energy interests in Lancashire. I know that he, like me, is concerned for the well-being of not only the environment in the county but the well-being of all our constituents. The issue is not just prevalent in Lancashire. Shale gas reserves have been found in the constituencies of a number of other right hon. and hon. Members, so it is right that we have this debate. It is timely, because any decision on the future of the industry is still to be made.

I pay tribute to the previous Minister, my hon. Friend the Member for Wealden (Charles Hendry), for his work on the matter. It was my privilege to work as his Parliamentary Private Secretary for two years, and I know how hard he worked on this issue and many others. I wish him well in what he does next.

I have subsequently had the opportunity to meet the new Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), on several occasions to talk about regulations on shale gas and more widely. I know that he takes the issue as seriously as I do, and I am grateful for all that he has done to date. I am pleased that he will be responding to this evening’s debate.

The issue that we have come here to discuss is extremely important, particularly in Fylde, where, as my hon. Friend the Minister knows, two earth tremors were triggered by the actions of Cuadrilla Resources last year when the Preese Hall gas well was fracked. As a resident of St Anne’s myself, I know at first hand the concern that that has generated. It left many constituents worried about the way in which the process is regulated.

It must be said that we have come some distance since then in understanding what is required and in making improvements to the regulations surrounding the emerging industry. Notably, there is the traffic light system to ensure that tremors are unlikely to occur again, which is most welcome. I am further pleased that I have received assurances from the Minister that his Department is taking on board recommendations from the reports of both the Royal Society and the Royal Academy of Engineering on shale gas.

I was also most grateful that my calls for a shale gas strategy group to be established, encompassing the Department of Energy and Climate Change, the Department for Environment, Food and Rural Affairs, the Health and Safety Executive and the Environment Agency, were swiftly acted upon. Ensuring that there are no gaps in regulation and that there is cross-departmental understanding on shale gas is extremely important. I know that representatives of each organisation are working extremely hard.

The debate is therefore not about bringing into question the expertise or integrity of the people involved in those regulatory bodies. I was extremely pleased that representatives of the HSE, the EA, DECC and Lancashire county council were present at a public meeting that I held in Fylde. I know that they were left fully aware of my constituents’ concerns and saw at first hand the level of research and knowledge that Fylde residents have accumulated over the past year. Rather, then, the debate is about supplementing their work to ensure that we achieve a gold standard of regulation.

We still have some way to go before we have a regulatory system in place for any potential stage of development. We need a system that addresses all concerns, that can be properly enforced and that sets an example to industry across the world. That is particularly important for the UK, where population density will always be a factor.

As it stands, what is supposed to happen is that DECC assesses and licences drilling, development and production activity; the environmental regulator with jurisdiction for the geographical area in question monitors and regulates the environmental aspects of shale gas fracking; the HSE monitors shale gas operations from a safety perspective; and the relevant planning authorities have a key role in considering the acceptability of the activities in question from the viewpoint of traffic movements, visual intrusion, consistency with local plans and so on.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

Does my hon. Friend share my concern that the plans for gas storage in salt caverns in the Wyre estuary and the possibility of fracking are a dangerous combination, given what he said earlier about the risk of earthquakes and earth tremors occurring again?

[Mark Menzies]

My hon. Friend makes a valid point, which was touched upon in the debate that my hon. Friend the Member for Lancaster and Fleetwood secured in Westminster Hall. I know that the Minister heard that point and is well aware of it.

Many of the people who have been involved in the process are experts in their field, but despite that, I do not believe that the regulatory system is robust or transparent enough to instil public confidence should permission be granted to the industry. That is why I am calling for an independent panel of experts to be set up without delay. Many questions and concerns still surround the shale gas process, and it is vital that we have a panel for three purposes: to look at each issue in detail; to fully appraise the risk; and to ensure that specific regulations are in place to deal with that. If part of the process cannot be dealt with safely through regulation, an alternative method should be found. If, however, an alternative way of carrying out that process is not possible, it must not be done.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

I congratulate my hon. Friend the Member for Fylde (Mark Menzies) on securing this important debate. Does he agree that one key issue of regulation and safety, particularly in my constituency, is the impact on the water table? It is not yet clearly understood by all that many of my constituents draw water from their own boreholes directly from the water table, and do not receive mains water.

--- Later in debate ---

[Mark Menzies]

My hon. Friend’s point is exactly the type of concern that I would want the panel to consider. It is a case of, “Bring everything out; let’s examine it independently, robustly and with integrity, and then let’s answer the questions”. I believe that the establishment of a panel is of the utmost importance and must be achieved forthwith. Should the Secretary of State give the go-ahead for the resumption of fracking, I will demand on behalf of my constituents intense scrutiny of all operations on the Fylde. Fracking rightly demands careful monitoring and full transparency, and I believe that work by the current regulatory bodies will be aided and enhanced by the presence of an independent panel of experts.

The panel is designed not to create more bureaucracy but to allow questions to be independently answered and solutions developed. It is crucial that the panel is open and accessible so that all interested parties—including Fylde borough council, which is about to establish a scrutiny group to look at this issue—have a means of getting their questions answered, and a body through which submissions can be made.

I have been assured that the technical competence of the regulators is not in doubt among those working in the industry, but the perceived lack of transparency, engagement and on-the-ground presence is prompting fears among many in the local communities that the industry does not receive sufficient oversight. We must therefore ensure that the UK continues its proud record of having world-leading energy regulators. Due to the developmental nature of the process in the UK, it is vital that we support the work of current regulatory bodies. In no uncertain terms can we allow the environment or the well-being of our constituents to be compromised.

Cuadrilla Resources is still unaware of how much shale gas it will be able to recover. Although the reserves may be considerable, it is unclear what level of gas can be recovered, or even if that is commercially viable. I urge the Minister to ensure that once that information is available, the panel will look at its impact on all key aspects of the local economy.

As I have told the Minister on previous occasions, constituents have raised with me a number of concerns that I would, in future, expect to be addressed by the panel. Those concerns are wide ranging and often technical in nature, but given the time allowed for this debate, it is not possible to go into each one in detail. Some concerns, however, are particularly worthy of mention.

First, many of my constituents are concerned that there are no specific onshore exploration regulations. The offshore regulations, developed in the 1990s following the Piper Alpha disaster, are perhaps not sufficient to address all the issues that arise from moving a process onshore, especially in a relatively populated area such as Fylde.

Secondly, although I welcome the environmental assessment being undertaken by the Environment Agency, I call for environmental impact studies to be undertaken on any proposed site, regardless of size. Furthermore, does the Minister have any plans to encourage a health impact assessment in a similar vein? A number of constituents have raised that issue with me, many of whom live within a couple of miles of potential fracking sites.

Importantly, the number of shale gas pads that would be developed in Fylde has been under speculation. We must take into account the population density and beautiful countryside of Fylde, and it would be completely unacceptable for that to be compromised by the proliferation of those sites. I speculate that similar situations will arise where shale gas reserves are discovered in other areas of the country. I therefore urge the Minister to ensure that any shale gas operator is fully transparent on the location and number of production pads that they seek to develop, and that the planning process is sufficiently rigorous.

Knowing the countryside of Fylde as I do, I know it would be completely unacceptable to take many sites to extraction phase. For example, I would consider the current site at Anna’s road, where exploratory drilling is taking place, to be an unacceptable location for extraction to occur. I would vehemently oppose its development as such.

If you will forgive me, Madam Deputy Speaker, I shall list other issues worthy of mention: the storage and disposal of fracking flow-back water; cement quality and the inspection of cement bond logs; the potential for subsidence; the examination of formation integrity tests as they are executed; surface methane detection; the publication of fracking chemicals used at each well; visual impact; impacts on local animals and welfare; potential flaring; and what happens to a site when it is no longer in use. It is important to note that that is not an exhaustive list, but it goes some way to highlighting the issues that I would expect the panel to look into—and it should explain its conclusions to the public. I appreciate that such a regime would require further funding, but for the panel to work, it is important that it is adequately resourced. We should not be putting a price on environmental considerations in my constituency or wider afield.

In a letter from June this year, the Secretary of State for Energy and Climate Change assured me that, if the decision is to permit further fracking, he will respond in detail to the points directly linked to the exploration activities and on what further steps might be necessary to ensure the effectiveness of a regulatory regime throughout any future production phase. Will the Minister reiterate this pledge to the Secretary of State if such a decision is taken?

I have called for the establishment of a committee of independent experts to look at all aspects of the process. Will the Minister take personal responsibility to ensure that that is done, and will he personally oversee the work of the committee, because it must be robust and of a Rolls-Royce standard? In the event of the Secretary of State giving permission for the shale gas industry to move from the exploration phase to the extraction phase, the panel should not only continue, but ramp up its work and take on the responsibility for scrutinising the onshore gas sector. Drawing on perceptions that have been formed from this point onwards, I would expect regular and thorough on-the-ground inspections from each regulator body; regulations that are rigorously enforced; and considerable sanctions brought to bear should any breach of such regulations take place.

I have not addressed other aspects of the industry, such as how the gas, once extracted, would get to the grid, how the potentially large revenues could be shared with the local community, or how shale gas could play a part in our energy mix in future. I expect the Minister and his fellow Ministers will take those issues on board and address them in due course should we ever get to that point. Shale gas might well have a role to play in our energy future, but that can happen only if it is backed up by a robust, open and exhaustive regulatory regime.

I will continue to pay close attention to the matter and will have no fear in raising my concerns or those of my constituents should we feel that progress is not being made. I am sure the Minister would expect no less of me. I have said in the House on many occasions that Fylde is a beautiful place to represent. I will continue to do everything within my ability to ensure that neither the environment nor the economy of this precious corner of our green and pleasant land are ever compromised.