Tuesday, January 28, 2014

United Kingdom:

UK Trespass Review Could Boost Shale Gas, Geothermal (Platts)

The UK government is to examine whether trespass laws should be amended to make it easier for producers to access potential shale gas reserves, the Department of Energy and Climate Change said Tuesday.

The review could also benefit deep geothermal energy projects, it said.

"Like any other industrial activity, oil and gas operations require access permission from landowners...there is an existing legal route by which operators can apply for access where this cannot be negotiated," the DECC said. "We are currently considering whether this existing route is fit for purpose. ."

Unlike in the US, UK landowners do not have rights to the oil and gas under their land, which has been cited as a reason why shale gas could be slow to take off.

The government and industry have proposed new community benefit schemes to remedy this, including a fee per well and a revenue-sharing mechanism.

However, while landowners do not own the oil and gas under their land, it is possible that drilling under someone else's land could lead to a trespass action.

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