Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 1: To ask the Minister for Communications; Energy and Natural Resources if he intends to develop a national policy on the extraction of onshore natural gas by hydraulic fracturing; if the issuing of further licences for the exploration and exploitation of this resources will be deferred pending the development of such a policy; and if he will make a statement on the matter. [2620/12]

Fergus O'Dowd (Louth, Fine Gael)
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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.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister of State for his response but I do not think he really replied to the question. Do we have a wider policy framework in relation to fracking? The Minister of State says that only preliminary licences were given out but the presumption is that if that was successful, one would progress to the next licensing stage. Before we go any further with this, we should have a national policy on fracking. As well as the purely narrow environmental concerns, there are also human, social and community concerns. Members of the House might remember that previous governments decided not to allow mining for gold on Croagh Patrick, even if there were endless supplies there. That was because of the social and wider human concerns about it.

Is it intended that this country should develop a policy on fracking to take all these concerns - not just the purely narrow environmental ones - into account? Will the Minister of State clarify the status of Clare County Council's decision not to allow fracking there? Has the Minister of State examined the reasons why France has banned fracking? That seems to be a very serious decision for a government to take.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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There are two minutes remaining on this question.

Fergus O'Dowd (Louth, Fine Gael)
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I will answer the last question first. In Britain, a House of Commons committee has recommended that hydraulic fracturing can take place and will not damage the environment.

Any decision made by Clare County Council is a matter for them. If they wish to change their development plan, that is their prerogative. However, if they are going to change it, the plan must go on public display and there will be due process in which my Department will engage. Clearly, there is a democratic process in that regard.

We are talking about three phases: licensing, exploration and production. The full-scale production phase covers the significant issues raised by the Deputy, including how the volume of activity on the ground affects society and impacts on the community. The key matter of importance is protecting the environment.

The EU guidance on regulations is very clear. The following directives apply to fracking: Environmental Impact Assessment Directive; Mining Waste Directive; Water Framework Directive; Reach Directive, which covers the safe use of chemicals; Biocidal Products Directive; Seveso Directive; Habitats Directive; and the Environmental Liability Directive. Therefore, significant environmental safeguards are already built in to any such applications. I am confident that due and proper process through An Bord Pleanála, will be clear and will be taken on board. It is a democratic process and anybody can express their views. Ultimately, however, if it can exploit gas or oil onshore, it will create a lot more jobs than it would offshore, provided that the environment is protected. Clearly, in the context of all the directives I cited, the EPA will have to apply a full and rigorous examination of all the issues.

Éamon Ó Cuív (Galway West, Fianna Fail)
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May I ask a second supplementary question?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry, Deputy, but the standing order allows two minutes for the Minister's reply and four minutes for supplementaries.

Éamon Ó Cuív (Galway West, Fianna Fail)
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It seemed to be more than two minutes.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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No, it was two minutes. I will give the Deputy ten seconds, if he wishes.

Éamon Ó Cuív (Galway West, Fianna Fail)
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There are many things I could say, but I will put it simply. To go back to the Croagh Patrick analogy, it might have passed all those technical tests and still not be considered because at the time the State took that policy on gold mining there.

Will the Minister of State consider publishing a Green Paper or a White Paper on the issue of onshore exploration in this country before any further licences are issued? That would treat all the issues in the round in the context of policy, rather than of permits.

Fergus O'Dowd (Louth, Fine Gael)
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The EPA has commissioned preliminary background research into all aspects of shale gas production in the form of a desktop study being carried out by the University of Aberdeen. In addition, the EPA will be commissioning more extensive research on hydraulic fracturing in 2012. A working group involving representatives from my Department and the EPA is currently developing specifications for this study.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Before moving to the next question, I wish to set out for the benefit of Deputies that two minutes are available to the Minister for the initial reply and four minutes overall for supplementary questions and replies.