Infrastructure Bill [Lords]

John Bercow Excerpts

Monday 26th January 2015 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss the following:

New clause 1— Hydraulic fracturing—

‘(1) The Environmental Permitting (England and Wales) Regulations 2010, Schedule 1, Part 2, Chapter 1, is amended as follows:

(2) After Section 1.2 insert—

“SECTION 1.3

Hydraulic Fracturing Activities

Part A(1)

(a) carrying out exploration or assessments prior to hydraulic fracturing;

(b) drilling wells for use in hydraulic fracturing;

(c) process of hydraulic fracturing;

(d) decommissioning and long-term maintenance of hydraulic fracturing wells.””

New clause 2—Shale gas extraction: devolution—

‘(1) The Scotland Act 1998 is amended as follows:

(2) In Schedule 5, Part II, section D2, after “gas other than through pipes,”, insert—

“( ) The licensing of onshore shale gas extraction underlying Scotland.

( ) Responsibility for mineral access rights for onshore extraction of shale gas in Scotland.””

New clause 4— Committee on Climate Change shale gas reports—

It shall be a duty of the Committee on Climate Change to produce Reports into the effects of exploitation of shale gas in the UK on net carbon emissions from the UK.”

New clause 6—Hydraulic Fracturing exclusion zones—

‘(1) The Petroleum Act 1998 is amended as follows.

(2) In Section 3, after subsection (4), insert—

“(5) No licences shall be granted to search and bore for petroleum in protected areas using the process of hydraulic fracturing.

(6) For the purposes of this section, “protected area” means—

(a) special areas of conservation under the Conservation (Natural Habitats, &c) Regulations 1994,

(b) special protection areas under the Wildlife and Countryside Act 1981,

(c) sites of special scientific interest under the Wildlife and Countryside Act 1981,

(d) national parks under the National Parks and Access to the Countryside Act 1949,

(e) The Broads under the Norfolk and Suffolk Broads Act 1988, and

(f) areas of outstanding natural beauty under the Countryside and Rights of Way Act 2000.”

New clause 7—Environmental Impact Assessment: publication—

“(1) Any Environmental Statement undertaken in respect of the possible exploitation of petroleum or deep geothermal energy, under the Town and Country Planning (Environmental Impact Assessment) Regulations 2011, must be publicised before a planning application is submitted to the local planning authority and/or the Secretary of State.

(2) The publication of an Environmental Statement under subsection (1) must be in accordance with the procedures set out in Article 13 of the Town and Country Planning (Development Management Procedure) (England) Order 2010.”

New clause 8— Impact on rural communities—

“The Secretary of State for Environment, Food and Rural Affairs must, within one month of this Act receiving Royal Assent, lay before the House of Commons the full report on Shale Gas Rural Economy Impacts.”

New clause 9— Moratorium on onshore unconventional petroleum—

“(1) All use of land for development consisting of the exploitation of unconventional petroleum in Great Britain shall be discontinued during the relevant period.

(2) The Secretary of State must ensure that an independent assessment is undertaken of the exploitation of unconventional petroleum in Great Britain including the use of high volume hydraulic fracturing.

(3) The assessment must take account of the impacts of the exploitation of the unconventional petroleum on—

(a) climate change;

(b) the environment;

(c) health and safety; and

(d) the economy.

(4) The Secretary of State must—

(a) consult such persons as the Secretary of State thinks fit; and

(b) publish the assessment

within the relevant period.

(5) For the purposes of subsections (1) to (4)—

“relevant period” means a period of not less than 18 months and not more than 30 months commencing on the date two months after Royal Assent;

“unconventional petroleum” means petroleum which does not flow readily to the wellbore.

(6) In section 3 of the Petroleum Act 1998, at the end of subsection (4) add “and subsection (4A).

“(4A) Nothing in this section permits the grant of a licence to search and bore for and get unconventional petroleum in Great Britain during the relevant period.

(4B) For the purposes of subsection (4A) “relevant period” and “unconventional petroleum” have the meaning specified in section [Moratorium on onshore unconventional petroleum] of the Infrastructure Act 2015.”

New clause 10— The security of supply of gas—

(1) The Secretary of State shall, in accordance with section 4AA of the Gas Act 1986 and so far as it appears to him practicable from time to time, keep under review whether further measures may be appropriate in order to protect the interests of existing and future consumers in relation to the security of the supply of gas to them.

(2) For the purposes of subsection (1), the Secretary of State may direct the Gas and Electricity Markets Authority to conduct a Significant Code Review in relation to whether modifications to licences granted under Part 1 of the Gas Act 1986 or to the Uniform Network Code are appropriate in order to underpin the demand for and the security of supply of gas.

(3) For the purposes of this section—

“consumers”, for the avoidance of doubt, includes domestic and non-domestic consumers;

“Significant Code Review” has the meaning given in Standard Special Condition A11 (24) of licences granted under section 7 of the Gas Act 1986;

“Uniform Network Code” means the document of that title required to be prepared pursuant to Standard Special Condition A11 of licences granted under section 7 of the Gas Act 1986.

New clause 11— Annual report by Secretary of State on security of energy supplies—

“(1) Section 172 of the Energy Act 2004 (annual report on security of energy supplies) is amended as follows.

(2) In subsection (2), at the end insert—

“(e) the security of supply of gas to consumers in Great Britain, including available storage capacity, and any appropriate remedial measures.””

New clause 19— Hydraulic fracturing: necessary conditions—

Any hydraulic fracturing activity can not take place:

(a) unless an environmental impact assessment has been carried out;

(b) unless independent inspections are carried out of the integrity of wells used;

(c) unless monitoring has been undertaken on the site over the previous 12 month period;

(d) unless site-by-site measurement, monitoring and public disclosure of existing and future fugitive emissions is carried out;

(e) in land which is located within the boundary of a groundwater source protection zone;

(f) within or under protected areas;

(g) in deep-level land at depths of less than 1,000 metres;

(h) unless planning authorities have considered the cumulative impact of hydraulic fracturing activities in the local area;

(i) unless a provision is made for community benefit schemes to be provided by companies engaged in the extraction of gas and oil rock;

(j) unless residents in the affected area are notified on an individual basis;

(k) unless substances used are subject to approval by the Environment Agency

(l) unless land is left in a condition required by the planning authority, and

(m) unless water companies are consulted by the planning authority.”

The purpose of this new clause is to ensure that shale gas exploration and extraction can only proceed with appropriate regulation and comprehensive monitoring and to ensure that any activity is consistent with climate change obligations and local environmental considerations.

Amendment 50, page 39, line 12 leave out clause 37.

This deletes the Clause that puts into primary legislation a new duty to maximise the economic recovery of UK oil and gas.

Amendment 68, in clause 37, page 39, line 17, leave out

“the objective of maximising the economic recovery of UK petroleum, in particular through”

and insert

“not the objective of maximising the economic recovery of UK petroleum but ensuring that fossil fuel emissions are limited to the carbon budgets advised by the Committee on Climate Change and introducing a moratorium on the hydraulic fracturing of shale gas deposits in order to reduce the risk of carbon budgets being breached, in particular through—”.

This reflects the conclusions from an inquiry into the Environmental risks of fracking by the Environmental Audit Committee, whose report is published on 26 January (Eighth Report, HC 856).

Amendment 73, page 39, line 31, at end insert—

“(3A) A strategy must be compatible with the Climate Change Act 2008.”

This would require strategies drawn up under clause 37 on maximising the economic recovery of oil and gas to be compatible with the Climate Change Act 2008, thereby avoiding the risk that the Secretary of State could, as a result of clause 37, be required to fulfil conflicting duties.

Amendment 51, page 45, line 22 leave out clauses 39 to 44.

This deletes the Clauses that seek to change the trespass law and introduce a new right to use deep-level land, which would allow fracking companies to drill beneath people’s homes and land without their permission and to leave any substance or infrastructure in the land.

Amendment 44, in clause 39, page 45, line 25, leave out

“petroleum or deep geothermal energy”

and insert—

“(a) petroleum; or

(b) deep geothermal energy.

“(1A) The right under (1)(a) only applies if the Committee on Climate Change’s most recent report under section (Committee on Climate Change Shale Gas Reports) concludes that shale gas exploitation leads to a net reduction of UK carbon emissions.

(1B) The carrying out of hydraulic fracturing in connection with the exploitation of unconventional petroleum is not allowed unless the Committee on Climate Change’s most recent report under section (Committee on Climate Change Shale Shale Gas Reports) concludes that shale gas exploitation leads to a net reduction of UK carbon emissions.”

Amendment 47, page 45, line 27, leave out from “if” to end of line 29 and insert—

“(a) it is deep-level land,

(b) it is within a landward area, and

(c) the well shaft is not within two kilometres of any village or town.”

Amendment 56, page 45, line 29, at end insert—

“(c) subject to the agreement of the owner of any land altered by the use.”

Amendment 83, page 45, line 29, at end insert—

“(c) outside:

(i) Special Areas of Conservation under the Conservation (Natural Habitats, &c.) Regulations 1994,

(ii) Special Protection Ares under the Wildlife and Countryside Act 1981,

(iii) Sites of Special Scientific Interest under the Wildlife and Countryside Act 1981,

(iv) National Parks under the National Parks and Access to the Countryside Act 1949,

(v) The Broads under the Norfolk and Suffolk Broads Act 1988, and

(vi) Areas of Outstanding Natural Beauty under section 82 of the Countryside and Rights of Way Act 2000.”

Amendment 117, page 45, line 29, at end add—

“(c) subject to the prior collation of existing environmental data and that data is published in a form that enables it to be subject to scientific peer review.”

Amendment 57, page 45, line 32, at end insert—

(a) The right of use shall be subject to the precautionary principle being applied;

(b) The Environment Agency will determine whether the condition under paragraph (a) has been met; and

(c) In this section, “precautionary principle” shall mean that no land is used for the purposes of exploiting petroleum or deep geothermal energy unless it is proved that it is not harmful to the environment.”

Amendment 3, page 45, line 33, leave out “300 metres” and insert “1,000 metres”.

Amendment 65, page 45, line 33, leave out “300 metres” and insert “950 metres”.

Government amendment 86.

Amendment 2, page 45, line 36, at end insert—

“(6) The Secretary of State shall, before the award of licences in relation to the use of deep-level land for onshore oil and gas exploration, issue additional planning guidance introducing a presumption against such developments within or under protected areas.”

Amendment 48, page 45, line 36, at end insert—

“(6) The Secretary of State shall prevent the exploitation of shale oil or gas if either a water company or the Environment Agency credibly asserts that to do otherwise would—

(a) create substantial risks to public health due to potential contamination of groundwaters from the extraction process; or

(b) create substantial risks to nearby surface waters due to potential contamination from flowback and waste water arising from hydraulic fracturing activity; or

(c) create substantial risks to the nearby environment due to potential contamination from flowback and waste water arising from hydraulic fracturing activity.”

Amendment 49, page 45, line 36, at end insert—

“(5A) The use of hydraulic fracturing in connection with the exploitation of unconventional petroleum shall be prohibited.

(5B) For the purposes of subsection (5A), “unconventional petroleum” means petroleum which does not flow readily to the wellbore.

(5C) In section 3 of the Petroleum Act 1998, at the end of subsection (4) add “and subsection (4A).

“(4A) Nothing in this section permits the grant of a licence to search and bore for and get unconventional petroleum in Great Britain.

(4B) For the purposes of subsection (4A), “unconventional petroleum” has the meaning set out in section 38(5B) of the Infrastructure Act [2015].””

This amendment would ban fracking (the use of high volume hydraulic fracturing to extract oil and gas) in the UK.

Amendment 66, page 45, line 36, at end insert—

“(6) This section shall not extend to Wales unless an order authorising it has been passed by the National Assembly for Wales.

(7) An order under subsection (6) may contain any conditions which the Assembly deems appropriate.”

Amendment 82, page 45, line 36, at end insert—

“(5A) The Secretary of State shall be required to commission and consider reports on—

(a) The cumulative impacts of water use in hydraulic fracking of exploratory and productive gas wells;

(b) The cumulative impacts of flowback and waste water arising from hydraulic fracking activity; and

(c) The cumulative impacts on communities of road and vehicle movements from hydraulic fracking activity

Before providing any permissions for exploitation of petroleum on deep level land where one or more exploitation facility exists within one mile of a proposed site.”

Amendment 60, in clause 40, page 46, line 6, at end insert—

“(f) any substance used for the purposes of paragraph (d) must be—

(i) approved by the Environment Agency; and

(ii) publicly declared by the operator.”

Amendment 1, page 46, line 17, at end insert—

“(3A) Before a well design is commenced or adopted in connection with the exploitation of petroleum, the right of use requires the Health and Safety Executive to inspect the well so as to satisfy itself that—

(a) so far as is reasonably practicable, there can be no unplanned escape of fluids from the well; and

(b) risks to the health and safety of persons from it or anything in it, or in strata to which it is connected, are as low as is reasonably practicable.

(3B) Where the Health and Safety Executive is satisfied that a condition in subsection (3A) is met, it shall give notice to the Secretary of State.

(3C) The Secretary of State shall publish the information received from the Health and Safety Executive in accordance with subsection (3A).”

Amendment 59, page 46, line 17, at end insert—

“(3A) The right of use shall be conditional on operators ensuring the—

(a) safe conveyance of wastewater from the site to a safe place of storage;

(b) effective treatment and disposal of wastewater from the site; and

(c) publication of the details of the treatment and disposal of wastewater under sub-paragraph (ii).”

Government amendment 87.

Amendment 78, in clause 41, page 46, line 41, leave out “may” and insert “shall”.

Amendment 79, page 46, line 44, leave out “may” and insert “shall”.

Amendment 61, page 47, line 2, at end insert—

“(c) to compulsorily purchase properties in the event of blight from the activities of the extraction and exploitation of petroleum and geothermal energy in deep-level land.”

Amendment 80, page 47, line 4, after “the”, insert “minimum”.

Amendment 81, page 47, line 5, after “payments”, insert

“which shall be calculated as a percentage of the gross value of the gas extracted”.

Amendment 62, in clause 42, page 47, line 19, leave out sub-paragraphs (i) and (ii) and insert

“to persons of specified descriptions”

Amendment 63, page 47, line 22, leave out “within the area” and insert

“on the Parish Council noticeboard”.

Amendment 64, page 47, line 24, at end insert—

“(2B) Failure to display or publish notice under the terms of subsection (2) will negate any right to exploit or extract petroleum or geothermal energy.”

Government amendments 88, 89, 90, 96, 97, 98, 99 and 103.

Amendment 69, title, line 10 leave out

“to make provision about maximising economic recovery of petroleum in the United Kingdom;”

This reflects the conclusions from an inquiry into the Environmental risks of fracking by the Environmental Audit Committee, whose report is published on 26 January (Eighth Report, HC 856).

[Amber Rudd]

I rise to speak to new clause 15 and amendments 98 and 103. Both shale gas and geothermal energy are exciting new energy resources for the UK, with the potential to provide greater energy security, growth and jobs, while also playing an important role in the transition to a low-carbon economy.

--- Later in debate ---

[Tom Greatrex]

On a point of order, Mr Speaker. Can you assist the House? The Minister seems to have suggested that an amendment is being made to the amendments before us. If that is the case, and what she has said about words being removed from the Bill is correct, will we have an opportunity to scrutinise that amendment?

[Mr Speaker]

I think that is a matter of the hon. Gentleman’s interpretation. For the avoidance of doubt, I must say that no manuscript amendment has been tabled. The normal course would have been for it to be tabled prior to the start of the debate, and it has not been. I think that the best course at this stage is for hon. Members in all parts of the House simply to listen to the Minister’s speech. [Interruption.] There is indeed no manuscript amendment—I do not think that I can be clearer.

[Miss McIntosh]

On a point of order, Mr Speaker. Is there, then, an amendment to that effect?

[Mr Speaker]

No amendment is required to prove that there is no amendment. That makes me think that the hon. Lady has been reading Heidegger—“the nothing noths”. There is no manuscript amendment, and consideration of this matter should not be clouded by thoughts of a manuscript amendment. I have been given no indication that there will be a manuscript amendment. It would be extraordinary, to put it mildly, for a manuscript amendment to be proposed or put forward for consideration by me or by professional advisers when the debate has already started. Things need to be dealt with in an orderly manner.

[Joan Walley]

On a point of order, Mr Speaker.

[Amber Rudd]

rose—

[Mr Speaker]

Order. I will take the point of order from the hon. Lady and then the Minister can either respond to that or continue her speech.

[Joan Walley]

Thank you, Mr Speaker. I think that the House would like some clarification as to whether what we are going to be voting on will be an overall ban. Members on both sides of the House have tabled many amendments seeking to bring that about. When, in an hour’s time, we vote on these amendments, we will not know whether we can be confident that the Government are really doing as they say. I would be grateful if the Minister, if not instantly, then in the next 45 minutes, could tell us what she is actually proposing.

[Mr Speaker]

Of course Members must listen to what the Minister has to say, but, for the avoidance of doubt, Members will be voting on that which is on the amendment paper. I do not mean this in any sense discourteously, but it is not for the Chair to seek to interpret amendments or new clauses, and I would not presume to do so. Each right hon. or hon. Member must make his or her own assessment of the merits or demerits, and implications, of new clauses and amendments and vote accordingly. We are voting only on what is on the amendment paper, not on that which is not on it. I call the Minister.

[Amber Rudd]

Thank you very much, Mr Speaker.

I will address new clause 7 on environmental impact assessments—EIAs—and new clause 19 and its various themes in turn. The Government share the desire expressed in new clause 7 and new clause 19(a) to ensure that the public are made fully aware of issues raised in EIAs before a planning application is submitted, and I can assure Members that this is the case. The comprehensive requirements for planning applications for which there is an environmental statement are already set out in article 13 of the Town and Country Planning (Development Management Procedure) (England) Order 2010, which requires that the environmental statement be publicised before a local planning authority can determine an application. Planning authorities are already required to ensure that mineral developments will not have unacceptable adverse impacts on the environment. Where a development is likely to have a significant effect, an EIA is required. If any significant environmental effects are identified that cannot be mitigated, planning permission can be refused.

This approach works well in practice and is consistent with our European obligations. It ensures that an EIA, which involves substantial work often taking up to a year to develop, is undertaken only where it adds value. However, the Government understand the need to build public confidence in the shale sector. We therefore welcome the reassurance provided by the industry’s public commitment to carry out EIAs for all exploration wells that involve hydraulic fracturing. The industry has made a further commitment to produce an annual report listing the shale sites that have produced an EIA.

--- Later in debate ---

[Andrew Gwynne]

On a point of order, Mr Speaker. Will you please rule on the Minister’s view, because she seems to be confusing the Bill Committee with an Order in Council committee, which lasts a mere 90 minutes?

[Mr Speaker]

I do not think that that is a matter for the Chair. Members must make their own assessment. The hon. Gentleman has made his assessment. For all I know, he might beetle around the Chamber to share it with others, but people will form their own assessment. Let us hear the Minister’s oration.

[Amber Rudd]

Thank you for that clarification, Mr Speaker.

On the announcement I made in Committee, the Secretary of State for Environment, Food and Rural Affairs will direct the Environment Agency to require operators to undertake the three months’ baseline monitoring. That is a minimum of three months so, in practice, the Environment Agency may require a longer period of monitoring where appropriate.

--- Later in debate ---

[Andrew Miller]

On a point of order, Mr Speaker.

[Mr Speaker]

I may be wrong, but I just have a slight sense that this might be a point not of order but of frustration. We will discover.

[Andrew Miller]

There is a lot of frustration in the debate, Mr Speaker. In Committee, the Government made an extraordinary statement that there were some issues around baseline monitoring that the Minister regards as commercial-in-confidence. That is why I have tabled the amendment. Would it not be helpful if the Minister answered that point now, while she is dealing with that measure, rather than simply moving on?

--- Later in debate ---

[Andrew Miller]

No, but it is on the record.

[Mr Speaker]

All sorts of things are helpful and all sorts of things are unhelpful, but they usually have one thing in common: that none of them is a point of order.

[Amber Rudd]

Thank you, Mr Speaker. The hon. Gentleman is right and asks an interesting question. I reassure him that I have written to him and other members of the Committee about that point.

--- Later in debate ---

[Mr Hayes]

rose—

[Mr Speaker]

The animation of the House knows no bounds when the right hon. Member for South Holland and The Deepings (Mr Hayes) seeks to take to the Dispatch Box.