Government refuses to take action against ‘cowboy fracking’

Harry Huyton, Head of Climate Change 

Some would have you believe that fracking is 100% guaranteed safe. The Prime Minister himself has assured us that the UK regulatory regime is one of the most stringent in the world and today Lord Deben, the Chair of the Committee on Climate Change and a respected champion for action on climate change, joined the chorus saying that fracking “poses no risk to the environment”.

Yet there is a growing number of reports of water pollution incidents in the USA (see here and here for example), where intensive fracking has been underway for several years. These incidents can have serious consequences for the local environment, both for people and wildlife, and carry a heavy price tag for clean up. The former Chief Scientist, David King, warned that concern over such incidents taking place in the UK was a rational concern that ‘has to be dealt with with very careful legislation’.

So the RSPB, the Angling Trust, the Salmon and Trout Association and the WWT agree with several MPs from both sides of the House, who have been asking Government to put clear rules in place to ensure that if an accident does happen then the fracker pays for the clean up rather than the public. This should help to ensure that proper safeguards are put in place from the outset, and a fairer approach to dealing with any damage.

As it stands, gas exploration companies have little obligation to demonstrate their ability to pay for any damage they cause to our environment, and if they go bust then any costs fall to the taxpayer. Yesterday, an amendment to the Water Bill tabled by Liberal Democrat MP, Roger Williams was debated in Parliament. The amendment would have ensured that fracking companies had finance in place from the outset for any accidents and that the liability for fixing any mistakes was firmly in their court. In the words of Conservative MP, Mark Spencer, the amendment would have prevented ‘cowboys’ entering the industry and would have made sure only the most competent companies drill for shale gas.

Roger Williams MP noted that shale gas companies will benefit from the most generous tax regime in the world for fracking. He argued it therefore stands to reason that the businesses who will benefit commit to pay for cleanup should an accident occur. He also noted that fracking companies have said that the risk of pollution to groundwater is extremely low, which would mean this amendment should pose minimal cost and would simply hold these companies to their assurances.  

Unfortunately, the Environment Minister rejected the need for an amendment, assuring MPs that existing regulation is adequate and we do not therefore need additional measures to clarify liability.

We were deeply disappointed by this conclusion. The Prime Minister promised one of the most stringent regulatory regimes for fracking in the world but his Government appears more interested in tax cuts than managing risk.

In the end, it doesn’t matter if you are pro or anti fracking – this proposal would simply ensure that when things do go wrong shareholders, not taxpayers bear the cost for cleanup if companies go bust or cease trading. If Government’s response boils down to concerns about the cost of insurance it sheds an interesting light on just how safe they really think the technology is.