Question

To ask Her Majesty’s Government whether the advance payment of £100,000 to local communities for every site fracked during exploratory fracking is voluntary or whether it is a condition of a licence being granted.

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

The Infrastructure Act 2015 introduced a range of further requirements that must be met before an operator can carry out hydraulic fracturing. Once these provisions come into force, the Government will not issue a hydraulic fracturing consent unless satisfied that a scheme is in place to provide financial or other benefit for the local area.

A Sovereign Wealth Fund would ensure that revenues from shale gas and oil are put to good use. Proposals will be brought forward in the next Parliament.