Through this paper, we are going to advice the company named Trump Valley Plc., which is planning to carry out its shale gas exploration operations in the US and the UK, in terms of the regulatory requirements that needs to comply with in order to get the permission. The company also has advised how it can convince the people of the US with regards to its exploration activates and benefits. For this purpose, the laws that govern the exploration of shale gas in both the countries should be understood.

Considerable Growth of Shale Gas

It has been observed that with the increase in the application of shale gas in industrial, residential, transportation, power generation, and commercial activities, it has been expected that Shale gas market is going to show a considerable growth. The major factor which demands shale gas is depletion of reservoirs and increased demands for energy. An increased interest in using the unconventional gasses has also called for shale gas market growth. It also has been observed that the increase in demand for energy cannot be satisfied only by using the unconventional gasses and thus again there is a need for conventional sources of energy to meet these demands.

The increase in the prices of crude oil prices has also increased the demand for an unconventional source of energy. Again this will strive for an increase in global shale gas market. In addition, many governments nowadays have been enacting favorable government regulation to deal with the shale exploration due to various benefits offered by it, which again boosts the market growth of shale gas globally.

Regulatory Bodies in the US

Although Congress’ has the power to regulate the activities related to hydraulic fracturing as per the Commerce Clause of the U.S. Constitution, still most of the regulatory power with regards to the technology of the oil and gas industry vests with the states.

States are free to regulate hydraulic fracturing as they see fit, with the exception that state regulations must meet the minimum requirements of any applicable federal regulations. This approach to oil and gas industry regulation has led to varying levels of complexity in the regulatory process encountered by companies in different states.

The Oil and Gas Conservation Act (OGCA) is the main act that regulates development of oil and gas development in Colorado.

The Department of Natural Resources (DNR) is that Office of Conservation which has been given the responsibility of regulating the activities related to exploration and production of oil and gas in Louisiana.

The Wyoming Oil and Gas Conservation Commission (WOGCC) has been given the power to regulate development of oil and gas by the state, and it also handles the permitting process needed for oil and gas development in Wyoming.

The Oil and Gas Division of the Texas Railroad Commission is the prime regulatory body which administers the regulations that deal with the drilling of oil and gas in Texas.

Regulatory Bodies in the UK

There are a number of regulatory bodies that work along with various government departments in order to regulate the activities related to exploration of shale gas in the UK.

Some of these regulatory bodies include:

DECC

It has been given the power by under the Petroleum Act 1998 to conduct licensing rounds and then issuing the licenses for drilling and exploratory activities

Mineral Planning Authorities

It considers the applications for land use planning permissions and then it decides whether an environmental impact assessment is to be done or not

The Environment Agency (England), the Scottish Environmental Protection Agency (Scotland) (SEPA) or Natural Resources (Wales)

It consider applications for environmental permits

The Health and Safety Executive (HSE)

It considers design of the well and also the risk in the form of major accidents and hazards to people.

The Department of Communities and Local Government (DCLG)

It has the role of publishing the planning guidance.

Petroleum Exploration and Development Licenses (PEDLs) issued by DECC

By getting this license, the company is allowed to pursue a range of exploration activities, and DECC issues these licenses.

Differences of Laws of Both Countries the US and the UK Governing Shale Gas

There are various laws prevent in each state that governs the activities related to exploration of shale gas. The UK government has an adamant regulatory framework and legislations with regards to the exploration of shale gas as opposed to the US government which has comparatively lenient regulations. The US laws have also given a specific exemption to the exploration activities from various regulatory laws. On the other hand, in the UK there are a number of laws that regulate, govern and thus act as a legal hindrance in the path of exploration of shale gas.

It can be noted that in the US, as per The Energy Policy Act of 2005, the exploration activities are exempted from regulations under following laws:

• the Safe Drinking Water Act
• the Resource Conservation and Recovery Act
• the Emergency Planning and Community Right-To-Know Act
• the Clean Water Act; the Clean Air Act
• the Comprehensive Environmental Response, Compensation, and Liability Act
• The National Environmental Policy Act.

The Laws in the UK that govern the exploration activates are as follows;

• Petroleum Act 1998
• Town & Country Planning Act 1990 and EIA Rigs
• HSWA and Borehole Site Rigs (Well consents), Wells Design and Construction Rigs
• Environmental Protection Act 1990
• Environmental Permitting Regulations
• Wastes Management/contamination
• Water Resources Act: Anti-pollution works notices, Groundwater Regulations, and Water Resources Management Plans
• Drinking Water Standards
• REACH/radiological assessments

Contractual and Civil Liability (Tort/Environmental Liability Directive)

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