Fergus O'Dowd (Louth, Fine Gael)

There is potential for Ireland to enjoy both economic and energy security benefits from its indigenous oil and gas resources. These benefits will only be realised through effective exploration. Ireland has a policy of actively encouraging investment by relevant companies in exploration for oil and gas, both offshore and onshore.

Where exploration or production takes place, it is subject to a robust regulatory framework, with a clear objective of ensuring that all exploration and production activities are carried out in a safe manner and do not harm the environment.

I am very conscious of the views that people have strongly expressed that use of the technology known as hydraulic fracturing in exploration and production activities could have a negative impact on the environment. The principal concerns that have been expressed relate to the production phase of a project and environmental considerations arising from the large number of production wells that would be hydraulically fractured.

In February last year, my Department granted onshore licensing options to three companies over parts of the Lough Allen and Clare Basin. The licensing options are preliminary authorisations and are different to exploration licences. The options are for a two-year period from 1 March 2011. During this period, the companies will evaluate the natural gas potential of the acreage, largely based on studies of existing data. Exploration drilling is not permitted under these authorisations.

While it is too early to say if any of the three existing onshore licensing options will progress to the exploration phase, let alone to a production phase, I would like to set out in summary terms the regulatory framework that would apply in Ireland in the case of a shale gas production project. Under the framework a developer would require consents from An Bord Pleanála, the Environmental Protection Agency, the Commission for Energy Regulation and the Minister for Communications, Energy and Natural Resources. All of these authorities have a statutory obligation to consider the potential environmental impact of any proposed petroleum production project. All these processes are subject to EU environmental directives, including the Environmental Impact Assessment Directive.

The policy approach is therefore one of encouraging investment in exploration, while ensuring all exploration and production activities are carried out in a safe manner and without harming the environment.

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