Barry Cowen (Laois-Offaly, Fianna Fail)
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Question 73: To ask the Minister for Communications, Energy and Natural Resources his policy in relation to shale gas exploration on land; and if he will make a statement on the matter. [37219/11]

Pat Rabbitte (Dublin South West, Labour)
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My Department's goal is to maximise the benefits to Ireland from exploration for and production of our indigenous oil and gas resources, while ensuring that activities are conducted safely and with due regard to their impact on the environment and other land/sea users.

Exploration for oil and gas in Ireland, in common with most other jurisdictions, is carried out under licence from the State. Petroleum exploration authorisations are issued under the Petroleum and Other Minerals Development Act 1960 and the oversight operational framework is set out in the Licensing Terms for Offshore Oil and Gas Exploration, Development & Production 2007,

I am aware that there has been a good deal of public interest recently on the topic of onshore gas exploration with considerable focus on the possibility of the technology of hydraulic fracturing ("fracking") being used following the granting of authorisations by my Department in February.

The authorisations which are called 'licensing options' were granted for a term of two years each and provide for the carrying out of work programmes agreed with my Department. These work programmes are primarily based on desktop studies of existing data and should be completed by February 2013. They do not permit exploration drilling. When they have completed their work programmes each company will then have to decide if it wishes to move to the next stage and apply for an exploration licence.

Any application for an exploration licence that would involve exploration drilling, including drilling that proposed using hydraulic fracturing, would be subject to an Environmental Impact Assessment (EIA) that would include a Public Consultation Phase. My Department would also seek and be guided by the expert advice of other relevant statutory authorities such as the Environmental Protection Agency (EPA), the National Parks and Wildlife Service (NPWS) and the Local Authorities. The outcome of the EIA would determine whether or not an Exploration Licence would be granted.

In the event that at some point in the future a commercial discovery of natural gas is made and an onshore gas extraction project is proposed then there is a comprehensive regulatory framework in place that would apply to any such proposal. The development of such a project would require a number of statutory consents including a planning consent from An Bord Pleanála under the Planning and Development (Strategic Infrastructure Act) 2006, an Integrated Pollution Prevention Control Licence from the Environmental Protection Agency (EPA), along with a Petroleum Lease, a Plan of Development consent and a Gas Pipeline consent from myself as Minister for Communications, Energy and Natural Resources. A core element of these consent processes would be to consider the potential environmental impact of any proposed development.

It is too early to conclude at this point whether or not these licensing options will proceed to the exploration licence stage and much too early to anticipate a commercial discovery that could potentially lead to a natural gas production project.

Notwithstanding the foregoing I have asked the EPA to examine the area and advise me and my colleagues in Government on the environmental implications of onshore drilling for gas. The EPA has commenced research into the environmental considerations and impacts of shale gas exploration and extraction, in particular with regard to the use of hydraulic fracturing and investigation into the regulatory approaches of other countries, with a view to helping to establish best environmental practice. The EPA proposes to commission a further and more extensive study in 2012 and is liaising with my Department in relation to the scope of same.