Oral Answers to Questions

Phillip Lee Excerpts

Thursday 11th July 2013 Commons Chamber

[Christopher Pincher (Tamworth) (Con)]

13. What steps he is taking to encourage shale gas exploration in the UK.

[Dr Phillip Lee (Bracknell) (Con)]

16. What steps he is taking to encourage shale gas exploration in the UK.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

Further to my earlier answer to my hon. Friend the Member for Pendle (Andrew Stephenson), the Government have commissioned the British Geological Survey to carry out a study of possible shale gas resources in the Weald basin in the south-east of England. This will be published in the early part of next year. We are also carrying out a strategic environmental assessment with a view to launching a further onshore licensing round for oil and gas in 2014.

--- Later in debate ---

[Michael Fallon]

I am grateful to my hon. Friend. We all have a responsibility to ensure that the debate over shale and fracking is conducted on the basis of evidence rather than myths. I want to ensure that the developers of potential shale resources and those who want to dig exploration wells engage early with local communities. I also want to ensure that those communities that want to host shale are fully aware of the procedures involved and of the significant financial benefits that could accrue.

[Dr Lee]

Given the likely significant increase in Government revenue from shale gas exploration in the north-west, would the Minister consider using a proportion of that revenue to transform the plutonium stockpile in Cumbria from a liability into an electricity-generating asset for the nation and, in the process, secure jobs for the north-west region?

[Michael Fallon]

We have a separate plutonium management strategy. I think that that will answer my hon. Friend’s inquiry on that matter. It is worth saying that local communities that are prepared to host shale will receive significant benefits, including some £100,000 for an exploration well and, potentially, between £5 million and £10 million over the lifetime of any production well. Those are significant amounts, and they would rightly recompense local communities for any of the disruption involved.