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UK opens bidding process for shale gas extraction licenses

The Ministries of Business and Energy of the United Kingdom have opened the bidding process for companies seeking licences to explore for onshore oil and gas (including shale oil and gas), under the so-called "14th onshore licensing round". The licences provide the first step to starting drilling – but do not give absolute agreement to drill. On top of a licence, any further drilling application will then require planning permission, as well as permits from the Environment Agency and sign-off from the Health and Safety Executive. The government will provide some additional planning guidance for areas of Outstanding Natural Beauty, World Heritage sites, national parks and the Broads. The Department of Energy & Climate Change (DECC) will also require detailed Statements of Environmental Awareness to be submitted with licence applications to these areas, to demonstrate applicants’ understanding of the environmental sensitivities relevant to the area proposed. Unless the DECC is satisfied with the Statement the application will be rejected.

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