Fracking decision may just be temporary setback
Does Lancashire County Council's decision to refuse an application from Cuadrilla mark the end of the road for fracking, or shale gas production as the industry prefers to call it, in the UK?
Or is it merely a hiccup on the long road to a greener energy policy?
The battle lines have been clearly drawn for some time between the two sides of the argument and there was little that was new to come out in the planning process.
Recommendation
It may only prove to be a short delay for Cuadrilla as the application did have a recommendation for approval from the county's planning officers which may make it hard for them to defend an appeal should one be lodged.
The new Conservative Government has made it clear that it is are behind the shale gas industry as a key step to a greener climate and a means of energy security for the UK.
Of greater impact, however, might be the effect that this refusal will have on other companies who are thinking of submitting planning applications.
These may now be delayed until the outcome is clear and whether there is the prospect of this becoming a precedent for the whole industry.
The grounds for refusal quoted of landscape impact and noise do not appear to be insurmountable so its potential as a precedent looks slim.
Threat
This decision, though, must present a threat to the industry – that the level of regulation in the UK, combined with the global energy price, will make extraction in the UK unattractive and importation a commercial reality.
It is worth noting that the current round of applications for exploration licences closed in October and no decision has yet been made regarding these.
While this was undoubtedly delayed by the General Eelection we will watch with interest to see when these come forward and if the successful bidders start their exploratory work in the near future. If not, it may be that those opposed to fracking scored a significant success.
William Gagie, a partner in Fisher German – who are leading rural estate agents, property consultants, and chartered surveyors in the UK – said: "Given the new Government's strong support for shale gas extraction I don't think this is the last we will hear of fracking, but it will bolster those opposed to it for a while and make life harder for the industry.
"However in the end the need for UK energy security and a coherent energy policy will mean we will see it across the UK."
* By Julian Mellis, of Fisher German
