Recent Developments In The UK Shale Gas Industry

UK government lifts moratorium on hydraulic fracturing

On December 13, 2012, the UK Department of Energy and Climate Change (DECC) announced that the current moratorium on hydraulic fracturing in the UK was lifted, subject to the introduction of new regulatory controls designed to mitigate the risk of seismic activity from hydraulic fracturing operations. The Secretary of State for Energy and Climate Change (the Secretary) noted that, given the relative infancy of the shale industry in the UK, the controls are not to be considered exhaustive or definitive, but rather as "precautionary measures for our present state of knowledge". The Secretary also noted that initial operations under these new controls will be subject to careful scrutiny (to ensure the effectiveness and efficacy of the controls) and that the controls will be reviewed as experience develops to ensure that they are proportionate to the risks involved with hydraulic fracturing. The Secretary stated that