Cuadrilla names new fracking sites in Lancashire

Oil and gas explorer Cuadrilla Resources has announced two new exploration sites in Lancashire to assess the potential of the region's shale gas reserves.

The company said it intended to apply for planning permission for "fracking" operations in Roseacre Wood and Preston New Road, both between Preston and Blackpool. It is seeking to drill four wells at each location, it said on Tuesday.

Tony Carruthers, Cuadrilla's commercial director, said that if permission is granted, it hopes to start drilling by late summer and if exploration is successful, production might start at the end of next year or early in 2016.

Fracking, or hydraulic fracturing, involves pumping a mixture of chemicals, sand and water deep underground at high pressure to break the shale rock and release oil and gas trapped inside.

Environmentalists worry the process can contaminate groundwater and claim shale gas production can lead to the release of methane, a potent greenhouse gas. They are also concerned about damage from shale operations to air quality and on infrastructure such as roads.

There have been fierce protests against fracking operations in other parts of the country, particularly at a Cuadrilla site near the Sussex village of Balcombe. Cuadrilla announced last month it would not carry out fracking operations there.

Cuadrilla said its representatives had started to talk to residents and community representatives and were committed to public consultation.

Francis Egan, Cuadrilla's chief executive, said the sites were selected after "extensive technical and geological analysis" and that focusing on only two sites "will allow us to reduce the potential impact on the local area during exploration".

"We're committed to being a good neighbour and to talking with the community at every stage of the process," he said.

Mr Carruthers said there was no evidence that fracking caused water contamination and that, in surveys by the company, twice as many people in Lancashire backed drilling in their areas as opposed.

"We're confident that when we get this programme under way, it will have a minimal effect on the environment," he said. "This is not new technology.

"And I'm very confident that by entering into engagement with the folks in Lancashire we will be able to proceed smoothly. As for engagement with folks from outside the area, that's a different question."

Helen Rimmer, of environmental group Friends of the Earth, predicted there would be "stiff opposition" to the latest plans.

"Cuadrilla claims to be a good neighbour, but it still hasn't cleared up the mess from the botched fracking operation that caused earth tremors only a couple of miles from one of the proposed sites." she said.

"Despite David Cameron's gung-ho approach, opposition to shale gas is rising - and will grow further as more communities are faced with the fracking threat."

Last month, Mr Cameron promised sweeteners for communities affected by fracking, saying local authorities could keep 100 per cent of business rates collected from shale sites, up from the usual 50 per cent.

The British Geological Survey estimates there could be reserves of 1,300tn cubic feet of shale gas in the Bowland basin in northwest England. Cuadrilla, which is backed by Lord Browne, the former BP chief executive, has said its licences in Bowland contain 200tn cubic feet of gas in place - enough to meet the UK's needs for 67 years. But only a fraction of that might be recoverable.

Centrica, the owner of British Gas, bought a 25 per cent stake in Cuadrilla's Bowland Shale exploration licence last year.

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