The following is an extract relating to the UK from Shale gas – an EU analysis
Elizabeth Shepherd , Eversheds: June 2012, updated December 2013

The UK is arguably the best informed Member State in that it was the first to carry out a detailed study which concluded that there is no direct risk to water aquifers, so long as the well-casing is intact. Concerns were however raised following seismic activity near Cuadrilla’s drilling site in Blackpool, in the North West of England in April/May 2011 which led to a temporary moratorium.

2013 has been an important year for shale gas producers in the UK following the lifting of the temporary moratorium in December 2012. The lifting of the moratorium was subject to new controls to mitigate the risks of seismic activity. These new controls include a traffic light system to categorise seismic activity and direct appropriate responses. The Government’s decision followed analysis of detailed studies and advice from leading experts. At the same time the Government announced that there would be a consultation on how the current licensing regime could be modified to support the particular characteristics of shale gas developments and that a tax regime specific to the shale gas industry would be developed.

Since December 2012 the Government has continued to demonstrate its support for shale gas. In June 2013 the UK Government announced that the 14th onshore licensing round would be launched in 2014 (this is the competitive process by which the UK allocates permits to explore for and extract petroleum).

In July 2013 the Government published a consultation paper on proposals for a tax regime for shale gas. In this consultation the Government recognised the potential for shale gas to increase energy security, create jobs and generate substantial tax revenue. The proposals in the consultation aim to unlock early investment and support industry development.

At the end of July draft technical guidance for onshore oil and gas exploratory operations was released for public consultation. The Government has also produced guidance on how shale gas (and other onshore oil and gas) developments should proceed through England’s planning system.

The Chancellor , in his Autumn Statement on 5 December 2013, announced a new tax allowance to kick start the exploitation of onshore oil and gas (including shale gas). The allowance makes the effective tax rate for shale gas projects lower than that in the US and the most competitive in Europe. Legislation to implement the allowance is expected to be included in the Finance Bill 2014.

The United Kingdom Onshore Operators Group (UKOOG) (the representative body for UK onshore oil and gas companies including exploration, production and storage) has also published industry guidelines covering best practise for shale well operations in the UK. The Department for Energy and Climate Change (DECC), the Health and Safety Executive (HSE), the Environment Agency (EA) and the Scottish Environment Protection Agency (SEPA) provided input into these guidelines. The guidelines also provide a template for the public disclosure of hydraulic fracturing fluid composition.

UKOOG has also entered into a Memorandum of Understanding with Water UK (which represents the UK water industry) to ensure their respective members co-operate through the shale gas exploration and extraction process. The memorandum’s key aim is to give the public greater confidence and reassurance that everything will be done to minimise hydraulic fracturing’s effects on water resources and the environment.

Overall the UK government remains positive and whilst the legal framework is being clarified the overall approach of the UK appears to be that it does not see the need for further EU legislation on shale gas activity, it simply wants the freedom to explore and understand the extent of its shale gas opportunity. In spite of this political support the rate of exploration has been slow and no further hydraulic fracturing activities have been undertaken in the UK since the moratorium was lifted. Public debate regarding onshore hydrocarbon production (both conventional and unconventional) has increased and there have been high profile protests highlighting public concern regarding hydraulic fracturing.

Taken from the website of SHIP (Shale gas Information platform)  produced by the German Research Centre for Geosciences