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http://www.theguardian.com/environment/2014/may/23/fracking-compensation-increase-quell-opposition

The amount of compensation made available to communities affected by fracking is to be increased in an attempt to counter opposition, the government is to say. The news comes as a report is due to be published estimating that several billion barrels of oil lie in shale rocks beneath southern England.

Ministers will say an average of £800,000 in additional payments will be provided to communities affected by fracking. The announcement shows that the government accepts it must reach out to communities angered by its plan to deny homeowners the right to use trespass laws to contest fracking developments.

The Department for Energy and Climate Change will announce a new payment of about £20,000 for each lateral well at fracking sites. The average site will have 10 wells, each with four lateral wells, making the average total £800,000. The payments are on top of the existing compensation system, under which communities are to be given a lump sum of £100,000 when a test well is fracked, plus 1% of revenues.

In a study due to be published on Friday, the British Geological Survey (BGS) is expected to say there are large shale gas reserves in Kent, Sussex, Surrey and Hampshire. But according to reports, the BGS will say it remains to be seen whether extracting them is economically viable.

David Cameron is an avid supporter of fracking for shale gas. Ministers claim the process could bring down energy bills and create thousands of jobs. Environmental activists are bitterly opposed to the technique, which they say can cause small earthquakes and pollute water supplies, and which they believe will accelerate climate change.

Cameron has said fracking would be "good for our country" and has blamed a lack of understanding of the process for some of the opposition. The government is preparing to introduce changes to the trespass laws that would make it easier to begin fracking.

Given the cost of housing in those areas I'm guessing extracting the reserves won't be economically viable.

Surely if you "own" the home it's your land especially if it's freehold so the company should be buying the rights from you? Or does this only work if you are landed gentry?

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http://www.theguardian.com/environment/2014/may/23/fracking-compensation-increase-quell-opposition

Given the cost of housing in those areas I'm guessing extracting the reserves won't be economically viable.

Surely if you "own" the home it's your land especially if it's freehold so the company should be buying the rights from you? Or does this only work if you are landed gentry?

No, that's only US law. US law basically means that you own a whole 'wedge' in theory down to the core of the earth from your land, including all mineral rights. Most other countries have different laws on this (I'd have to look up the details).

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The US Shale Oil Miracle Disappears

20140522_shale_0.pngThe US shale oil "miracle" has about as much believability left as Jimmy Swaggart. Just today, we learned that the EIA has placed a hefty downward revision on its estimate of the amount of recoverable oil in the #1 shale reserve in the US, the Monterey in California. As recently as yesterday, the much-publicized Monterey formation accounted for nearly two-thirds of all technically-recoverable US shale oil resources. But by this morning? The EIA now estimates these reserves to be 96% lower than it previously claimed. Yes, you read that right: 96% lower. As in only 4% of the original estimate is now thought to be technically-recoverable at today's prices.

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Its not going to be just one 40 lateral super pad in the community though , the gas is everywhere through the shale , so you need multiple pads over a large area . 1000's of superpads are needed .

40 laterals will mean continual fracking for years on each pad as the laterals get fracked in succession . the Marcellus mostly average around 8/16 depending on age .

it will mean there will be a major chemical plant with its accociatred HGV truck park of thousands of HGV lorry movements 24/7/365 slap bang within that community .

Then there is the venting plume ....

This is a typical five well 10 lateral Marcellus pad ........note the lorry queue

6951e7c40f624f58f68d122341c6f58e.jpg?ito

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The economics of the Fracking boom are.. murky to say the least.

I wouldn't mind it being attempted in the UK as an alternative to gas and oil imports, IF I had confidence that it would be tightly regulated as far as water use and disposal was concerned. The problem is that the pro-fracking lobby is too anti-regulation to make a stab at effective regulation and the anti-fracking lobby is too busy panicking about non-issues (burning tapwater and tiny earthquakes) to put a decent case together. Both sides need a slap with the haddock of reality.

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No, that's only US law. US law basically means that you own a whole 'wedge' in theory down to the core of the earth from your land, including all mineral rights. Most other countries have different laws on this (I'd have to look up the details).

Don't bother ...it doesn't matter what's applicable in the US...the crown owns the mineral rights in the UK , trespass laws are now being changed in this summers queens speech , If there is a pad within 2 miles of you they can run a lateral under your house without the need of notification let alone permission .

The first you may know of it is when you come to renew your mortgage or sell , and suddenly find exemption clauses in your bricks and mortar insurances , a premium price hike , or an outright refusal of renewal , and all that entails . Your stuffed if your an homeowner .

Edit

Tiny earthquakes are not a minor issue , they shatter pipe trains , they only need a nudge , its what shut down Prees Hall in Blackpool , the well casements got deformed and had to be plugged .... No doubt they look OK on the surface , but what's already been pumped down is still mobile and will be for decades .

Edited by Tankus

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Don't bother ...it doesn't matter what's applicable in the US...the crown owns the mineral rights in the UK , trespass laws are now being changed in this summers queens speech , If there is a pad within 2 miles of you they can run a lateral under your house without the need of notification let alone permission .

The first you may know of it is when you come to renew your mortgage or sell , and suddenly find exemption clauses in your bricks and mortar insurances , a premium price hike , or an outright refusal of renewal , and all that entails . Your stuffed if your an homeowner .

That lateral will be at significant depth, and pretty much be definition won't have any effect at the surface. Indeed, you'd be very hard pressed to find the thing.

An abandoned 150-year-old mine shaft would be worse, or the presence of natural evaporite rocks which can dissolve to form a sinkhole.

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That lateral will be at significant depth, and pretty much be definition won't have any effect at the surface. Indeed, you'd be very hard pressed to find the thing.

An abandoned 150-year-old mine shaft would be worse, or the presence of natural evaporite rocks which can dissolve to form a sinkhole.

If that is correct, what compensation is required and why?

They wouldnt be talking about it at all if nobody was affected.

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If that is correct, what compensation is required and why?

They wouldnt be talking about it at all if nobody was affected.

I believe the compensation is for locals who may be affected by noise and general disturbance. It is a significant industrial operation.

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Tiny earthquakes are not a minor issue , they shatter pipe trains , they only need a nudge , its what shut down Prees Hall in Blackpool , the well casements got deformed and had to be plugged .... No doubt they look OK on the surface , but what's already been pumped down is still mobile and will be for decades .

And you know this from..?

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I believe the compensation is for locals who may be affected by noise and general disturbance. It is a significant industrial operation.

We had our local reservoir enlarged over 4 years...no compensation for the noise and disturbance for us.

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Cuadrilla themselves .......

They finally admitted the casement failure 6 months after the tremors happened. Its the real reason why operations were immediately suspended and the casements grouted to the point of failure ...The pipe train got trashed .

Just do the math .....6% of well casements fail during construction 50% fail within 3 decades , every 40 lateral pad is practically guaranteed to have a containment failure along its pipes .......with no idea of the hydrological response over time ....its a crap shot ...

But all this has been done to death in the other threads , just read them !

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Cuadrilla themselves .......

They finally admitted the casement failure 6 months after the tremors happened. Its the real reason why operations were immediately suspended and the casements grouted to the point of failure ...The pipe train got trashed .

Just do the math .....6% of well casements fail during construction 50% fail within 3 decades , every 40 lateral pad is practically guaranteed to have a containment failure along its pipes .......with no idea of the hydrological response over time ....its a crap shot ...

But all this has been done to death in the other threads , just read them !

Yes, I've read a lot of badly-informed speculation.

Not quite sure that it's the best way to drive energy policy.

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Maybe you should inform yourself then !

Those percentages are from the oil company actual failure rates , no speculation at all.

Why do you think the fracking companies required legal exemption from all that hardwon common sense basic environmental legislation in the US with the Haliburton loophole ?

Also absolution from a bond to cover future environmental damage after the well has been capped ?

Simples really.!

There is a rush in the UK , to get it under way before the problems in the US get to big to buy off, hide , or cover with secrecy clauses.

Edited by Tankus

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The mineral rights belong to the crown, The land owners just get the lease money for the pad.

http://www.theguardian.com/environment/2014/may/23/fracking-compensation-increase-quell-opposition

Given the cost of housing in those areas I'm guessing extracting the reserves won't be economically viable.

Surely if you "own" the home it's your land especially if it's freehold so the company should be buying the rights from you? Or does this only work if you are landed gentry?

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How will the £££ used - no council tax due from affected households for xxx years?

Doubt it. Big salaries for consultants on what to do with it..... And then it's gone.

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http://www.independent.co.uk/news/uk/politics/no-gas-found-in-the-weald-basin-does-this-spell-the-end-of-the-governments-dream-of-a-fracking-revolution-9428918.html

The Government’s dream of kickstarting a fracking revolution has suffered a major setback after a survey of one of the UK’s great shale gas hopes found no evidence of gas in the area.

And while the same survey – of the Weald basin, stretching from Wiltshire to Kent – did find an estimated 4.4 billion barrels of oil, the scientist who oversaw the project admitted it would be so difficult to extract that the basin would be unlikely to yield even 0.5 per cent of the oil so far extracted from the North Sea.

Robert Gatliff, director of energy and marine geoscience at the British Geological Survey, which produced the report, said: “It’s not a huge bonanza. But we have to see what happens.” He added: “It is going to be a challenge for the industry to get it out.”

The North Sea has produced about 40bn barrels of oil since the 1970s and is likely to yield between three billion and 24 billion more, according to industry estimates. But Mr Gatliff expects the Weald basin to yield no more than 220m barrels of oil, based on a generous extraction rate of about 5 per cent of the total estimated “resource”. This is less oil than Britain consumes in six months.

Asked if the findings were a let-down for the Government, Energy minister Michael Fallon said: “It’s not a let-down or a let-up. It is what it is.” He insisted the shale oil could still be a “significant addition to our homegrown energy supplies”.

It doesn't sound like we are going to be producing much oil.

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Here's the other lesson from the US:

The U.S. drive for energy independence is backed by a surge in junk-rated borrowing that’s been as vital as the technological breakthroughs that enabled the drilling spree. While the high-yield debt market has doubled in size since the end of 2004, the amount issued by exploration and production companies has grown nine-fold, according to Barclays Plc. That’s what keeps the shale revolution going even as companies spend money faster than they make it.

The spending never stops, said Virendra Chauhan, an oil analyst with Energy Aspects in London. Since output from shale wells drops sharply in the first year, producers have to keep drilling more and more wells to maintain production. That means selling off assets and borrowing more money.

“The whole boom in shale is really a treadmill of capital spending and debt,” Chauhan said.

http://www.bloomberg.com/news/2014-04-30/shale-drillers-feast-on-junk-debt-to-say-on-treadmill.html

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If there's one thing you can guarantee, if there's no cash in it, it will NOT be rail roaded through on behalf of Fallons chums.

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The UK's new oil rush may have ended before it even began. There are several billion barrels of oil under south-east England, according to a new report, but it may not be worth drilling for it.
The report, by the British Geological Survey, estimates that there are 2.20 to 8.57 billion barrels of oil trapped in the shale rocks of the Weald Basin, south of London. However, it concludes there are no significant gas deposits in the area.
Energy companies will have to resort to the controversial technology of fracking to get at the oil. But they may decide not to bother, says petroleum geologist Andrew Aplin of Durham University in the UK. That's because very little of the oil can be reached, even with fracking.

http://www.newscientist.com/article/dn25624-fracking-southeast-england-for-oil-may-be-pointless.html

Edited by Eddie_George

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