UK Prime Minister David Cameron plans to increase the compensation paid to communities that will be affected by fracking to about 800,000 pounds in order to cool down anti-fracking sentiment in Tory heartlands.
The Times reported that Cameron will announce the new compensation after a report is published showing the amount of shale gas reserves in southern England. Cameron hopes the extra monies will remove a hurdle to his plans to amend trespass laws to pave way for the fracking industry to enter Britain’s nascent shale energy sector.
However, the move has been opposed by Lord Howell, who recently cautioned that the government’s support for fracking will backfire, resulting a massive loss of rural votes. But Cameron has been adamant, saying “fracking will be good for our country and pointed out that a “lack of understanding” of the fracking process was partly contributing to the opposition.
“Those who have visited sites in America will also know that even after installation, the thump of compressors can be sensed up to two miles away, as well as the whiff of diesel from the compressor pump engines,” he warned.
The new compensation will be added on top of the one-time payment of 100,000 pounds and 1 percent share of the total profits earned. The new payment will be announced when the British Geological Survey (BGS) releases a report on the amount of shale gas reserves in southern England. Areas surveyed include Conservative strongholds of Hampshire, Surrey, Kent and Sussex.
The BGS has already confirmed the presence of huge shale gas reserves in the country’s North, though it has fully assessed the extent of the resource in the South. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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