Onshore oil and gas: environmental regulation and the consenting process UKELA Seminar 23 September 2015

An established onshore industry Dales Water Services Ltd Source: Silson Communications Ltd. AONB and SSSIPart of drilling operations at Wytch Farm, Europe’s largest onshore oil field 4th most expensive real estate in the world (reputedly)

We regulate other complex industries 3

OGA Checks all permits and permissions are in place Issues consents – well consent, flare consent, extended well tests, and consent for hydraulic fracturing. Oil & Gas Authority awards exclusive Licence after open competition Oil & Gas Well Regulatory process – Overview (England) Mineral Planning Authority - Environmental Impact Assessment - Planning permission Traffic, noise, visual intrusion, nature conservation… HSE Scrutiny before operations Well design & construction Independent verification Safety of drilling operations EA - Abstraction licences - Environmental permits Mining Waste Groundwater Radioactive Substances Installations Statutory consultee EA/HSE MoU

Environmental permits and controls ControlsRisk Abstraction license Issued under the Water Resources Act. Over abstraction of water Section 199 Notice Issued under the Water Resources Act. Method statement on well design and construction Proper use of water; groundwater pollution; well integrity. Groundwater Permit Hydrogeological risk assessment Chemical disclosure of drilling muds and fracturing additives Groundwater pollution Extractive Waste Permit (Mining Waste) Waste management plan including used and residual hydraulic fracturing fluid Management of extractive wastes Radioactive Substances Permit Radiological assessment of Naturalling Occurring Radioactive Material (NORM) Management of NORM wastes Installations Permit (Industrial Emissions Directive) Flaring of waste gases over 10 tonnes per day Waste gases and air quality risks Water Discharge Activity Required if surface water run-off becomes polluted Surface spills

Environmental Permitting Process

Regulatory Steps and Public Consultation Stages in Shale Exploration OGA issues Petroleum License to operator 21 days pre-planning notice given to landowners and parishes Environmental Risk Assessment conducted by operator Operator holds Pre- application consultation with the Local Planning Authority stakeholders, the local residents and Environment Agency Operator makes planning application to Local Planning Authority Local Planning Authority advertises planning application and consults with stakeholders and local residents Local Planning Authority decides whether or not to provide planning permission Local Planning Authority makes scoping decision if Environmental Impact Assessment to be requested and conducted by operator Operator applies for environmental permits from Environment Agency Environment Agency decides whether or not to grant permits Planning conditions set by Local Planning Authority are met by the operator Health and Safety Executive is notified of the well design Public OGA Strategic Environmental Assessment (SEA) and Public Consultation on Licencing Public Operator starts operations (to drill, frack, test or produce) according to permits and consents OGA and Regulators monitor operations and frac- induced seismicity according to permits and consents DECC gives consent, to drill and/or frac with Hydraulic Fracture Plan OGA launch Licence Round and Assess Applications OGA publish consultation on Habitats Assessment (HRA) for each block proposed for award Public Credit: Sciencewise

A changing regulatory landscape Infrastructure Act Introduces a new consent for hydraulic fracturing Reinforces existing environmental, planning and health and safety safeguards New definitions for protected areas Water companies as statutory consultees DCLG announcements Permitted development rights Underperformance and use of SoS call-in powers Shale Task Force – a single regulator? EU – from Recommendation to Directive?

Our approach We understand and have assessed the environmental risks from onshore oil and gas We have the right regulatory controls in place We will continue to work with other regulators to ensure the adequacy of the regulatory regime We will consult and engage with local communities We will streamline the process, whilst maintaining high standards of environmental protection We will keep this under review, in light of any legislative changes and as we move into the production phase

Additional slides

DECC Roadmap

Risks from surface operations Text here

Risks from poor well design Text here

Risks from hydraulic fracturing Text here