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UPDATE 1-Dutch court refuses to halt Groningen gas production

Wed, 01st Apr 2015 13:01

(Adds comments from judge, details)

By Toby Sterling

THE HAGUE, April 1 (Reuters) - A Dutch judge on Wednesdayrefused to order a production halt at Europe's biggest gasfield, Groningen, where extraction is causing earthquakes,dealing a blow to opponents of government policy.

Production from the field was temporarily reduced inFebruary after the Dutch Safety Board warned of possibledangers. A decision on the request for a quick ruling by thecountry's Council of State by citizens' groups from Groningen isexpected within two weeks.

But Judge Thijs Drupsteen said he would give the public asneak preview of his position: "I'm not planning to order theproduction decision 100 percent stopped."

That demand was made by rights groups during a heated publiccourt session.

The Groningen field is operated by state-owned Gasunie andoutput jointly exploited by the government and a joint venturebetween Royal Dutch Shell and Exxon Mobil called NAM (Nederlandse Aardolie Maatschappij).

The groups' suit challenges a decision by Economic AffairsMinister Henk Kamp to set 2015 production from Groningen at 39.4billion cubic metres (bcm) of gas, down from 42.5 bcm in 2014.

One of 40 complainants, Nette Kruzenga, asked the judge tohalt production immediately, saying Kamp's decision was "faultyin terms of procedure and in terms of judgment."

That was countered by Hans Besselink, a Ministry of EconomicAffairs official, who said "further reduction of gas fromGroningen could lead to millions of households in theNetherlands and surrounding countries ... left without gas."

The judge agreed: "In my opinion, that would be such afar-reaching decision that people outside would say 'now they'vegone crazy.' I don't think I can take responsibility for that."

Much of Wednesday's debate focused on production atLoppersum, where the risk of earthquakes is greatest andproduction has already been cut by 80 percent, and Eemskanaal,where there are vulnerable dikes.

Drupsteen asked questions about the feasibility of furtherreducing or stopping production at the two sites, but nodecision was announced.

The frequent production-linked earthquakes in Groningen havenot hurt anyone, but have caused billions of euros of damage tohomes and buildings.

In his later ruling, Drupsteen could instruct Kamp to reviewor even scrap his February decision to cut production levels to33 bcm. More likely, he could make recommendations for Kamp, whois due to announce a new decision in July. (Editing by Anthony Deutsch, Jason Neely and David Evans)

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