Question

To ask the Secretary of State for Energy and Climate Change, what steps she is taking to ensure that shale gas community benefit funds are distributed to those households closest to potential drilling sites.

The government believes that every community hosting shale projects should share in the benefits.

The shale gas industry has made a voluntary commitment to its Community Engagement Charter, co-ordinated by its representative body UK Onshore Oil and Gas, which includes a commitment to provide benefits to local communities of £100,000 per well at the exploration/appraisal stage where hydraulic fracturing takes place and a further 1% of revenues if shale gas is discovered.

At a local level, the particular package of community benefits will be designed in conjunction with local residents. Industry have committed to keep their Charter and interaction with local communities under review, including consulting communities about it over time, in the light of operating experience.

We have also committed to setting up a Sovereign Wealth Fund for the North of England, so that the shale gas resources of the North are used to invest in the future of the North.