Fracking in the Headlines

Fracking has been back in the news again this week as the UK Government has released new proposals that will enable energy companies to access land for shale oil and gas developments, without necessarily needing the land owner’s permission.

The new rules, which are aimed at speeding up the introduction of fracking, would grant underground access rights meaning that firms would be able to ‘frack’ at depths of 300 metres. In return, those living above the site of the well would receive a voluntary payment of £20,000 (per horizontal well that extends 200 meters or more).

This follows the publication of a new report from the British Geological Survey (BGS) that suggests 4.4 billion barrels of oil are located in an area of southern England, which stretches from Kent, through to Sussex, Surrey and Hampshire.  While oil is present in the ‘Weald basin’, it has been reported that the ability to extract the oil may prove difficult due to the built-up conditions. Add to this, the report has identified that there is no potential for shale gas extraction in the same area.

With the consultation period now in place, interested parties have until 15 August in which to respond to the outline proposals.  More details on the proposals and how to respond can be accessed from the Department of Energy & Climate Change website.  

Energy and Infrastructure Report

Landmark’s Energy and Infrastructure Report provides an accurate search, for both commercial and residential properties, for a number of selected energy and infrastructure projects across the UK.

Currently the report indicates if the property has the potential to be impacted by any of the following development projects:

·        Areas licensed for on-shore energy exploration and production, including areas licensed for fracking;

·         High Speed 2 rail network (HS2);

·         Existing and proposed Wind Farms and Wind Turbines across the UK;

·         Operating and planned Solar Farms;

·         Crossrail;

·         Yorkshire and Humber Carbon Capture and Storage (CCS) Cross Country Pipeline

If you are concerned about key energy or infrastructure developments in your area, or for a specific property or plot of land, the Landmark Energy and Infrastructure Report provides valuable data to support your wider due diligence programme.

You can download a sample of the report here.  

Landmark Information Group supports UKELA in raising the awareness of flood in Wales

Natural Resources Wales’s Flood Risk Strategy Manager, Steve Cook, told a meeting of the UK Environmental Law Association, that currently one in six properties in Wales is at risk of flooding.  

Mr Cook said: “The current number of properties at risk of flooding is likely to increase as we experience the effects of climate change.  In the future we can expect increased rainfall, more severe storms and rises in sea levels”.

Following the dramatic weather of last winter and the serious impacts on individuals, insurance companies, infrastructure providers, public sector bodies and others, the UK Environmental Law Association brought together a number of leading lawyers, insurance providers and academics to debate the wider effects of flooding, how to minimise these impacts and the insurance industry’s response to the crisis.

Simon Boyle, a leading and well respected environmental lawyer with Landmark Information Group, brought a stark reality to the discussion.  He outlined the dramatic consequences of flooding such as death, personal injury, property losses and damage, as well as the insurance implications.  Mr Boyle also pointed out the impact on commercial businesses:

“Although businesses usually have business interruption insurance, generally this only covers a three month period.  When businesses are flooded this period is often not long enough to get the business back on track after the flood. This is part of the reason why around 60% of companies that suffer major flood incidents go out of business within two years.”

As with any crisis, there are a number of potential solutions.  

Mr Boyle said: “From as little as a few thousand pounds effective flood resistance measures could be installed for individual residential properties.

          

“Most flooding does not go above a depth of 80cm and can be effectively kept out of houses by installing flood resistance measures such as door and window baffles.”

The insurance industry’s perspective was provided by Duncan Spencer of EDIA who reinforced the sector’s challenge of balancing costs with protection of homes and businesses.  

Mr Spencer identified that other impacts of flooding, especially from the pollution caused as a result, are often overlooked.  He pointed out that the costs of these can be many hundreds of thousands of pounds.

In looking to the future, Mr Spencer spoke about increasing risks and the potential for a rise in liability law cases, as is being experienced within the United States.

There was general agreement that the situation whereby those home owners who are at a high risk of flooding are receiving premium subsidies from other insurance payers of well over £500 for each household annually is not sustainable in the longer term. 

In this context, Professor Mark Stallworthy of Swansea University provided an overview of the UK Government’s proposals for introducing a statutory Flood Re-insurance scheme.  The scheme has the overall aim of ensuring home owners continued reliance on the insurance industry to cover losses from flooding.  It will require the insurance industry to pay levies into a fund that will be used to financially support some claims.  It also provides for the continued cross subsidising of low and high flood risk insured households.  Overall, this could result in a fairer insurance deal for homeowners not at risk of flooding and also those at high risk of flooding. 

However, Professor Stallworthy said:

“Whilst the Flood Re-insurance scheme promises to protect the sustainability of flood insurance, there are concerns about the significant number of properties that will be excluded and the failure to address the possibility of a rapid increase in the levels of flood risk.”      

Note to Editors:

UKELA [ http://www.ukela.org/ ] is the charity which aims to make the law work for a better environment and to improve understanding and awareness of environmental law. It promotes, for the benefit of the public generally, the enhancement and conservation of the environment in the UK and advances the education of the public in all matters relating to the development, teaching, application and practice of law relating to the environment.

A working party for Wales was established in October 2013 to promote understanding and awareness of environmental law and influence the development of legislation.

The seminar on Flood Risk and Planning was hosted by Hugh James: Solicitors and held on Thursday 8 May.  A similar event is being held at the University of Law, Christleton, Chester on Thursday 15 May.  The programme is as follows:

5.00 pm - Arrivals

                       

5.30 pm - Chair’s introduction 

5.35 pm – Overview of Flooding Risks and Measures in Wales:  Keith Ivens, Natural Resources Wales

6.05 pm – UK Government Proposals for Insurance Indemnity: Professor Mark Stallworthy

6.25 pm – Flood Risk: Property and Land Transactions: Angus Middleton

                                   

6.55 pm – Flood Risk and Insurance: Duncan Spencer

7.15 pm – Panel Discussion

7.30 pm – Chairs Summary and Conclusion

7.40 pm – Networking

Bookings can be made by accessing the link http://ukela.sym-online.com/walesfloodseminarchester/default.htm

UKELA is grateful to Landmark Information Group for sponsoring both these events. 

For any enquiries, please contact Dr Norma Barry, UKELA Wales Coordinator on 07785 551511 or 029 2022 6263

UK Environmental Law Association - Making the law work for a better environment

Registered charity 299498; company registered in England number 2133283

Registered office: City Point, One Ropemaker Street, London, EC2Y 9SS