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LONDON (Alliance News) - The controversial fracking application made by Cuadrilla Resources has been refused by Lancashire County Council on the grounds that it would lead to the "industrialisation of the countryside".

The decision will be a major setback to Cuadrilla Resources, which is at the forefront of the fracking argument in the UK and called the decision "regrettable".

"We will now take time to consider our options regarding an appeal for Preston New Road, along with also considering appeals for the planning applications recently turned down, against (planning) officer advice, for monitoring and site restoration at Grange Hill, and last week?s decision to refuse the Roseacre Wood application," said Cuadrilla.

Cuadrilla submitted two applications to frack sites between Preston and Blackpool. The application for the Roseacre site was unanimously rejected by councillors on Thursday, following recommendations that it should be refused on traffic grounds.

Last Friday, the vote held for the Preston New Road site to refuse Cuadrilla was defeated, although seven councillors voted in favour of the refusal and seven against it with one abstention, as the chairman Munsif Dad voted against the refusal with the casting vote.

The proceedings were then adjourned again, as the councillors had received legal advice in private that they then proposed to make public and the council deferred the decision until Monday.

The councillors Monday rejected the application and risk Cuadrilla appealing the decision, something that lawyers have said will prove difficult as the company is likely to win the appeal. The councillors adjourned to decide on the official reasoning for refusing the application. Councillors decided it would have too much of an impact on the countryside.

"It is over a year since the application was submitted to the council and the committee?s decision comes after planning officer?s scrupulously went through the rigorous, 4,000 page environmental statement that accompanied our application and conducted widespread public consultation, which led to their positive recommendation," said Cuadrilla.

Last week, the legal advice said if the "refusal is issued, the case officer cannot give evidence at any appeal", adding that "it would be difficult, if not impossible, to find a reputable independent planning consultant to defend Lancashire County Council's position".

The North West Task Force, an "independent" organisation which looks at extracting natural gas in Lancashire, said last week that a rejection would send the message that the UK "was not open for business and investment". Although the force is independent, Cuadrilla is one of its members.

UK Onshore Operators Group, or UKOOG, the fracking trade body, Monday said the news was "disappointing" and urged the government to launch a strategic review to ensure applications were dealt with in a timely manner, adding that Cuadrilla's application took 15 months to process and judge, compared to the guideline of 16 weeks.

"This is just one adverse planning decision, where the professional judgement of planning officials, leading counsel and expert agencies was to approve based on the fact that all of the environmental, safety, health and local issues had been addressed. Other exploration companies have already stated they will be putting in their own applications very shortly," said UKOOG.

Concerns that were raised about the Preston New Road application included the effect on the environment, traffic, house prices, the visual impact, local health, water pollution and the impact it would have on energy prices in the UK, as protesters both for and against clashed outside the council building.

The decision will be a huge blow to AIM-listed companies such as IGas Energy PLC, which is currently working on a five-year plan to develop shale gas sites in the North West and East Midlands, just south of Cuadrilla's sites, alongside major international partners Total, GDF Suez and INEOS.

IGas shares were down 10.6% at 27.50 pence Monday afternoon, having fallen as low as 25.80 pence earlier in the day.

Centrica PLC also holds a 25% stake in Cuadrilla's Lancashire operations after it signed a deal in 2013. Centrica shares were down 1.2% to 270.80 pence per share Monday afternoon.

The UK government will also be facing a setback after committing to accelerating the shale gas industry during the election campaign earlier this year.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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