Government announcement: Going all out for shale

2 minute read
13 January 2014

Newspapers today have reported new announcements by David Cameron in relation to shale oil and gas projects in England, with measures intended to ensure that local communities see the benefits of the new shale industry in their area.

The government will double the amount of tax that local councils in England can retain which is raised from shale gas sites. Councils will now be entitled to keep 100% of the business rates raised from a shale gas site, which reports suggest could be worth up to £1.7 million per year.

Mr Cameron also said that new rules would allow energy companies to make cash payments, either directly to homeowners living in the vicinity of shale project sites, or into funds that would be managed by local communities.

Reports indicate that industry will consult with local communities on how to best distribute funds of up to £10 million over the lifetime of a typical shale project site. This amount will consist of a lump sum payment of £100,000 upon the fracking of a test well, together with 1% of revenues raised by that site if a project is subsequently developed.

These new announcements show the government's commitment to developing a shale industry in England in a way that will see direct benefits going to those communities most affected by shale development.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Related   Energy