House of Lords written question – answered at on 17 July 2013.
Lord Greaves
Liberal Democrat
To ask Her Majesty’s Government, in the light of their proposal for local communities where fracking takes place to receive £100,000 per well and 1 per cent of the overall revenues, at what stage the payment per well will be made; how the overall revenues will be assessed, at what intervals, and when those payments will be made; how the nature and extent of local communities will be defined; which bodies will be responsible for making the payments; which local persons or bodies will receive and control the payments; and for what purposes the money may be used.
Baroness Verma
The Parliamentary Under-Secretary of State for Energy and Climate Change
The industry has recently published its Community Charter, setting out how it will engage with communities that host shale development, and also proposing to provide communities with £100,000 per well-site at exploration stage, and 1% of any revenues made at production stage.
The Government welcomes this offer from industry, which represents a good deal for communities at this stage in the development of the UK shale industry. We are also pleased that industry has pledged to keep this offer under review, and to consult with communities about it from time to time in the light of operating experience.
The UK Onshore Operators Group plan to publish further details of how the Charter will operate in practice in the Autumn, and they will be engaging with communities and stakeholders as they develop these proposals further.
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