The CLA today (30 September) said proposals put forward by industrial giant Ineos demonstrate a more collaborative approach to developing the shale gas industry which better recognises landowners.
The organisation said it has consistently argued that the successful development of the shale gas industry depends on gaining the support of landowners and communities by sharing the benefit of development. It says proposals from Ineos to give six percent of its shale gas revenues back to those near wells specifically recognising property owners reflect this.
CLA President Henry Robinson said: “We have consistently argued that the shale gas industry would be better served by incentivising landowners to engage with development – an approach which has worked well in the US, allowing the industry to reach commercial production more quickly.
“Although ownership of the shale gas and property rights in the US are very different to the UK, providing land and property owners with a potential benefit from shale gas in the longer term could help to overcome some initial opposition to exploration. The proposals put forward by Ineos better recognise land and property owners rather than cutting them out of the shale gas equation altogether as the Government’s recent response to the underground access consultation has.
“These proposals could help to speed up development of the industry which is important if shale gas is to contribute to the UK’s energy security and provide a bridging fuel to a low carbon economy as Government believes it can.”
Mr Robinson added: “Our recent response to the underground drilling consultation identified the need to more adequately recognise landowners. It seems only right that those whose property is drilled beneath feel some benefit from the process.
“While the detail of this proposal is critical, Ineos intervention in the discussions seems a step in the right direction. The critical concerns of landowners surrounding long term liability still need to be addressed by the industry and we look forward to hearing more about these proposals and discussing them further.”