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Fracking licences to be granted by government Fracking in beauty spots 'in exceptional circumstances'
(35 minutes later)
The government has opened the bidding process for new licences to extract shale gas using the controversial fracking process. The controversial process of fracking, could get the go ahead in Britain's top beauty spots, but only in "exceptional circumstances".
About half the UK is open to exploration, but tightened rules cover areas of outstanding beauty. The government has launched a new bidding round for licences which covers around half of the UK.
Companies granted a licence to begin test drilling will also need planning permission and environmental permits. But companies applying to frack near National Parks, Areas of Outstanding Natural Beauty and World Heritage Sites face tightened restrictions.
The coalition sees shale gas as a major potential energy source. Critics of fracking warn of environmental dangers. Some green campaigners had hoped for an outright ban.
Fracking involves blasting water, chemicals and sand at high pressure into shale rock formations to release the gas held inside. But other groups, including the National Trust, gave the move a cautious welcome.
In announcing the so-called 14th onshore licensing round, Business and Energy Minister Matthew Hancock said: "Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth." Fracking involves blasting water, chemicals and sand at high pressure into shale rock formations to release the gas and oil held inside.
Environmentalists argue that the process can cause contamination of the water supply and earth tremors. The industry rejects these criticisms, claiming that the process can be done safely.
But Business and Energy Minister Matthew Hancock said it would be "irresponsible" not to explore the possibilities that shale offers.
"Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth," he said.
"We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy.""We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy."
It is the first time in six years firms have had the opportunity to secure new licences. This is the first opportunity to bid for new licences for six years.
"Of course there is local opposition in some places," Mr Hancock told the BBC."Of course there is local opposition in some places," Mr Hancock told the BBC.
"But broadly there is also public support for the argument that we need energy security.""But broadly there is also public support for the argument that we need energy security."
However he was unable to immediately name a community which is welcoming fracking. Much of the reserves of shale energy already identified are in the north west of England.
Environmental sensitivities
"We welcome the new planning guidance which makes clear that applications should be refused in these areas other than in exceptional circumstances," Richard Hebditch, Assistant Director of External Affairs for the National Trust said in a statement.
Forty percent of the National Trust's land is in National Parks and it owns large areas of land in other Areas of Outstanding Natural Beauty.
"We hope it will reflect a much more cautious approach that recognises the risks of turning some of the most special places in the country over to industrial scale extraction of shale gas and oil," Mr Hebditch added.
As well as acquiring a licence, any company wishing to drill near a protected site will be required to submit a detailed "Statement of Environmental Awareness" to demonstrate their understanding of the environmental sensitivities.
Limits on fracking in beauty spots
Drill downDrill down
Robert Gatliff, Science Editor at the British Geological Survey told the BBC it would still be some time before full scale drilling would start. Robert Gatliff, Science Director for Energy at the British Geological Survey told the BBC it would still be some time before full scale drilling would start.
"The first stage, you'd review all the data you've got. Then you'd want to drill one or two exploration holes and then take samples of the shale and see exactly what the content is and see which have got the most in and which bits are likely to fracture best to get the most oil out.""The first stage, you'd review all the data you've got. Then you'd want to drill one or two exploration holes and then take samples of the shale and see exactly what the content is and see which have got the most in and which bits are likely to fracture best to get the most oil out."
An agreement to proceed with drilling would still be subject to planning permission and permits from the Environment Agency.An agreement to proceed with drilling would still be subject to planning permission and permits from the Environment Agency.
He said that although surveys suggest there is between 820 and 2000 trillion cubic feet of gas embedded under the UK, "there's no way we'd get all that out." He said that surveys suggest there is up to 2000 trillion cubic feet of gas embedded under the UK, although "there's no way we'd get all that out."
"If you look at what happens in the US, and that's where you've got to look because that's where they've drilled thousands of holes, they're not getting more than 5%," Mr Gatliff said."If you look at what happens in the US, and that's where you've got to look because that's where they've drilled thousands of holes, they're not getting more than 5%," Mr Gatliff said.
"In Britain we're so crowded and we've got these beautiful areas, that reduces the amount we can get out as well.""In Britain we're so crowded and we've got these beautiful areas, that reduces the amount we can get out as well."
AnalysisAnalysis
By Norman Smith, chief political correspondent, BBC News ChannelBy Norman Smith, chief political correspondent, BBC News Channel
Government sources have dismissed claims that new restrictions on fracking are designed to head off protests in Tory seats in the south of England.Government sources have dismissed claims that new restrictions on fracking are designed to head off protests in Tory seats in the south of England.
The government has today announced new curbs on fracking in areas of outstanding beauty and has also given the environment secretary more power to intervene where there are disputes over drilling.The government has today announced new curbs on fracking in areas of outstanding beauty and has also given the environment secretary more power to intervene where there are disputes over drilling.
However sources deny that the announcement by the Energy Minister, Matthew Hancock, is designed to assuage anger from Tory voters in the south - where fracking has been threatened in areas such as Hampshire, Surrey, Sussex and Kent.However sources deny that the announcement by the Energy Minister, Matthew Hancock, is designed to assuage anger from Tory voters in the south - where fracking has been threatened in areas such as Hampshire, Surrey, Sussex and Kent.
Sources say that Mr Hancock is "a countryside man" with a genuine desire to protect areas of natural beauty.Sources say that Mr Hancock is "a countryside man" with a genuine desire to protect areas of natural beauty.
However he acknowledges there is a need to re-assure voters about the impact of drilling for natural gas.However he acknowledges there is a need to re-assure voters about the impact of drilling for natural gas.
They stress that the new restrictions will apply to National Parks and Areas of Outstanding Beauty across the UK and not just in the south of England.They stress that the new restrictions will apply to National Parks and Areas of Outstanding Beauty across the UK and not just in the south of England.
It's understood the first gas from fracking is likely to be extracted early next year.It's understood the first gas from fracking is likely to be extracted early next year.
About half the UK is open for licensing, including parts of National Parks. But applications there will only be accepted in "exceptional circumstances and in the public interest", said the government.
The same rules apply for the Broads, Areas of Outstanding Natural Beauty and World Heritage Sites.
"Proposals for such development must recognise the importance of these sites," Communities Minister Lord Ahmad of Wimbledon said.
Tom Greatrex MP, Labour's Shadow Energy Minister, said: "With 80% of our heating coming from gas and declining North Sea reserves, shale and other unconventional gas may have the potential to form a part of our future energy mix."Tom Greatrex MP, Labour's Shadow Energy Minister, said: "With 80% of our heating coming from gas and declining North Sea reserves, shale and other unconventional gas may have the potential to form a part of our future energy mix."
But he added: "There are legitimate environmental concerns that must be addressed before extraction is permitted. Robust regulation and comprehensive monitoring are vital to ensure the public acceptability test is met."But he added: "There are legitimate environmental concerns that must be addressed before extraction is permitted. Robust regulation and comprehensive monitoring are vital to ensure the public acceptability test is met."
The industry itself rejects these criticisms, arguing that, if regulated properly, fracking is a safe way to unlock huge resources of gas, which is a cleaner source of energy than coal.
In the UK test drilling has taken place in Lancashire and in the West Sussex town of Balcombe where last summer more than 1,000 people protested at a site operated by energy company Cuadrilla.In the UK test drilling has taken place in Lancashire and in the West Sussex town of Balcombe where last summer more than 1,000 people protested at a site operated by energy company Cuadrilla.
The north of England is the largest area identified as containing shale reserves. The north of England is the area containing the largest shale reserves.
The British Geological Survey has also pinpointed south east Scotland as containing significant shale resources. The British Geological Survey has also pinpointed south east Scotland as containing significant resources.
Access rightsAccess rights
The government is keen to promote fracking in the UK, and has already announced a number of incentives to help kick-start the industry, including tax breaks, payments of £100,000 per site plus a 1% share of revenue to local communities.The government is keen to promote fracking in the UK, and has already announced a number of incentives to help kick-start the industry, including tax breaks, payments of £100,000 per site plus a 1% share of revenue to local communities.
It argues that shale gas could be an important bridge to help secure energy supplies until renewable energy capacity is increased.It argues that shale gas could be an important bridge to help secure energy supplies until renewable energy capacity is increased.
Others argue that while it may be cleaner than coal, it is still a hydrocarbon that emits CO2 linked to global warming.Others argue that while it may be cleaner than coal, it is still a hydrocarbon that emits CO2 linked to global warming.
The BBC's Environment Analyst Roger Harrabin said: "If environmentalists succeed in stopping fracking in the UK by stirring up local objections they will actually make the greenhouse effect worse in the short term."The BBC's Environment Analyst Roger Harrabin said: "If environmentalists succeed in stopping fracking in the UK by stirring up local objections they will actually make the greenhouse effect worse in the short term."
"This is because Britain will continue to use gas for heating and as a backup to capricious wind and solar electricity. If the industry can't get British gas it will import liquefied gas - and the energy needed to turn gas liquid makes it worse for the climate than home-produced gas.""This is because Britain will continue to use gas for heating and as a backup to capricious wind and solar electricity. If the industry can't get British gas it will import liquefied gas - and the energy needed to turn gas liquid makes it worse for the climate than home-produced gas."
In the US, shale gas has caused energy costs to tumble, but questions remain about whether the American shale revolution can be replicated in the UK and elsewhere.In the US, shale gas has caused energy costs to tumble, but questions remain about whether the American shale revolution can be replicated in the UK and elsewhere.