‘Give local communities a better deal for hosting a shale gas well’, MP urges

Beverley and Holderness MP Graham Stuart’s move comes amid controversy over further exploration of wells at West Newton, near Aldbrough and Crawberry Hill, at Walkington.

Canadian-owned Rathlin Energy (UK) has applied for permission to carry out a so-called “mini fall-off test”, also known as a “mini frac”, as part of investigations at the two conventional wells.

It denies it is “fracking or testing” for shale gas.

But its application states that the test will take place at 2,677m down at Walkington, and 3,055m at West Newton, in layers of rock with “extremely low permeability” which “require mechanical intervention to enhance its permeability”.

It says the information gathered “will help determine whether the formation is capable of being hydraulically fractured.”

The Government says local authorities would receive 100 per cent of the business rates levied on shale gas wells - up to £1.7m for a typical site with 12 drilling rigs. That would be in top of the one-off payment of £100,000 and one per cent of the well’s revenue.

Mr Stuart said he and colleagues had pressed Energy Minister Michael Fallon to improve the financial offer to five per cent.

He said: “My view is if the right environmental controls are in place and we have a pretty good record in this in oil and gas - it is not the Wild West - if it is highly regulated and local people benefit and their representatives have the final say, that is what I would like to see. With all these safeguards it could have tremendous benefits for the nation which is why I am pressing hard for a more generous contribution to local people.”

His survey asks residents questions including what conditions should be applied if fracking was allowed and what scale it should be.

Rathlin has a licence to explore for oil and gas in a 241,000-acre area from Beverley to the North Sea - which campaigners say would equate to 3,000 shale gas wells. Opponents held a public meeting in Aldbrough last night.