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Ineos to challenge Scots fracking 'ban' Ineos to challenge Scots fracking 'ban'
(about 1 hour later)
Petrochemical firm Ineos has launched a legal challenge to the Scottish government's effective ban on fracking.Petrochemical firm Ineos has launched a legal challenge to the Scottish government's effective ban on fracking.
Ministers announced the prohibition in October 2017, and it was subsequently endorsed by a vote of MSPs.Ministers announced the prohibition in October 2017, and it was subsequently endorsed by a vote of MSPs.
Ineos Shale has applied for a judicial review of the decision, citing "serious concerns" about its legitimacy.Ineos Shale has applied for a judicial review of the decision, citing "serious concerns" about its legitimacy.
The Scottish government argued that it took a "cautious, evidence-led approach" while coming to the decision and included business and communities.The Scottish government argued that it took a "cautious, evidence-led approach" while coming to the decision and included business and communities.
While announcing the ban it insisted that its backing for Scotland's industrial base and manufacturing sector was "unwavering", but had decided there was no place for fracking north of the border while "balancing the interests of the environment, our economy, public health and public opinion".While announcing the ban it insisted that its backing for Scotland's industrial base and manufacturing sector was "unwavering", but had decided there was no place for fracking north of the border while "balancing the interests of the environment, our economy, public health and public opinion".
The Scottish government first introduced a moratorium on fracking in 2015, while undertaking a series of reports and a public consultation on whether to give permission in future.The Scottish government first introduced a moratorium on fracking in 2015, while undertaking a series of reports and a public consultation on whether to give permission in future.
Energy Minister Paul Wheelhouse told MSPs last year that this moratorium, enforced via planning powers, would continue "indefinitely" after consultations showed "overwhelming" opposition to fracking from the public.Energy Minister Paul Wheelhouse told MSPs last year that this moratorium, enforced via planning powers, would continue "indefinitely" after consultations showed "overwhelming" opposition to fracking from the public.
Labour and the Greens called for the ban to be put down in legislation, but Mr Wheelhouse insisted that the existing method was "sufficiently robust", and ultimately only Conservative MSPs voted against the move.Labour and the Greens called for the ban to be put down in legislation, but Mr Wheelhouse insisted that the existing method was "sufficiently robust", and ultimately only Conservative MSPs voted against the move.
The development was welcomed by environmental organisations, but slammed by business groups, with Ineos among the most vocal in its criticism.The development was welcomed by environmental organisations, but slammed by business groups, with Ineos among the most vocal in its criticism.
Ineos, which operates the industrial processing plant in Grangemouth and which holds fracking exploration licences across 700 square miles of the country, said the government's decision was "a major blow to Scottish science and the engineering industry".Ineos, which operates the industrial processing plant in Grangemouth and which holds fracking exploration licences across 700 square miles of the country, said the government's decision was "a major blow to Scottish science and the engineering industry".
Ineos Shale Operations Manager Tom Pickering said the group had "no option" but to raise a legal challenge alongside business partner Reach.Ineos Shale Operations Manager Tom Pickering said the group had "no option" but to raise a legal challenge alongside business partner Reach.
He said: "We have serious concerns about the legitimacy of the ban and have therefore applied to the court to ask that it review the competency of the decision to introduce it."He said: "We have serious concerns about the legitimacy of the ban and have therefore applied to the court to ask that it review the competency of the decision to introduce it."
"Ineos, Reach and other operators have invested significantly in unconventional development over the years, against a supportive regulatory and planning backdrop."Ineos, Reach and other operators have invested significantly in unconventional development over the years, against a supportive regulatory and planning backdrop.
"If Scotland wants to continue to be considered as a serious place to do business, then it cannot simply remove the policy support that attracted that investment in the first place without proper procedures being followed and without the offer of appropriate financial compensation.""If Scotland wants to continue to be considered as a serious place to do business, then it cannot simply remove the policy support that attracted that investment in the first place without proper procedures being followed and without the offer of appropriate financial compensation."
'Best interests''Best interests'
Announcing the decision to impose the indefinite ban, Mr Wheelhouse told MSPs that "while I am sure that an unconventional oil and gas industry would work to the highest environmental, and health and safety standards", the government had to "make a decision we believe is in the best interests of the people of this country as a whole".Announcing the decision to impose the indefinite ban, Mr Wheelhouse told MSPs that "while I am sure that an unconventional oil and gas industry would work to the highest environmental, and health and safety standards", the government had to "make a decision we believe is in the best interests of the people of this country as a whole".
He said the government had to be "confident that the choices we make will not compromise health and safety of damage the environment in which we live", adding that the studies carried out did not "provide a strong enough basis from which to adequately address concerns" of communities.He said the government had to be "confident that the choices we make will not compromise health and safety of damage the environment in which we live", adding that the studies carried out did not "provide a strong enough basis from which to adequately address concerns" of communities.
Ineos contends that the studies actually showed that shale gas could be produced safely in Scotland, and pointed to findings that the industry could support up to 3,100 jobs.Ineos contends that the studies actually showed that shale gas could be produced safely in Scotland, and pointed to findings that the industry could support up to 3,100 jobs.
During the Holyrood debate of the ban, Labour MSP Neil Findlay voiced strong criticism of Ineos, saying the firm was "not well known for philanthropic behaviour" and had been "holding the country to ransom" by threatening to move jobs.During the Holyrood debate of the ban, Labour MSP Neil Findlay voiced strong criticism of Ineos, saying the firm was "not well known for philanthropic behaviour" and had been "holding the country to ransom" by threatening to move jobs.
And Green MSP Mark Ruskell accused the company of "throwing their toys out of the pram" with "a predictable and desperate attempt" to challenge the ban.
He said: "Scotland doesn't want or need fracking and Ineos should accept they lost the democratic debate in the Scottish Parliament - the evidence was there to ban fracking and that is what Holyrood has done."