LONDON (Alliance News) - The UK government will introduce a bill which should further promote the development of fracking in the country by reducing trespass laws against shale oil and gas companies wanting to drill under peoples homes, confirmed the Queen in her annual speech on Wednesday.
The Competitiveness and Infrastructure bill had been widely expected and will include a provision to end requirements that land and home-owners have to give permission for shale gas and oil drilling deep under their land.
"The Bill will enhance the United Kingdom?s energy independence and security by opening up access to shale and geothermal sites and maximising North Sea resources," said the Queen.
Further details of the bill were not explained in the speech but the proposed legislation joins a range of decisions by the UK government which have placed shale gas fracking as a key component of planned future energy production in the country.
The onshore and gas exploration lobbying body, UKOOG, welcomed the announcement and said the proposed legislation will bring the industry into line with other activities, such as mining and utilities, which can already operate under peoples homes at depth without permission.
"Horizontal drilling and hydraulic fracturing are techniques that have been used by the oil and gas industry around the world for a number of decades," UKOOG said in a statement. "These techniques are typically used at depths of one mile or greater below the surface of the land using well diameters of 6 to 9 inches."
The shale industry in the UK is undergoing a major push, with companies such as IGas Energy PLC, Total SA, Cuadrilla Resources Ltd and Egdon Resources PLC developing fracking operations around the country.
Hydraulic fracturing, otherwise known as fracking, involves extracting gas trapped in shale by pumping in pressurised water and chemicals.
In the US, fuel prices have been falling sharply as fracking has become commonplace across such states as North Dakota and Mississippi.
However, so far in Europe fracking has had mixed results, often seen as either controversial or unreliable. In the UK, there have been major protests against the method, which critics fear will pollute water tables in rural areas and may cause small earthquakes.
?Not only does this bill defy public opinion, it denies people a voice. To allow fracking companies to drill under people?s homes and land without their permission is to ignore public interest in pursuit of the vested interests of a few," UK Green Party MP Caroline Lucas said on Monday in response to reports that the bill would be announced during the Queens speech.
In May, the UK government announced proposals to simplify land access rules and the Department of Energy and Climate change said it was launching a consultation process to make it easier and quicker to drill underground, with proposals that there should be underground right of access for shale gas and deep geothermal operations below 300 metres at the time.
IGas Energy shares were up 2.0% to 138.68 pence, while Egdon Resources shares were down 6.0% to 26.56 pence on Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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