Fracking would be “lose, lose, lose” for locals say Environmentalists

‘Fracking’, a controversial method of extracting natural gas from ‘shale rock’ or gas-bearing sands which would not have been accessible otherwise, could become an issue for Limavady if a firm known as Rathlin Energy discover gas which they cannot extract by conventional means.

The Sentinel revealed last week that Rathlin Energy’s parent company had intentions as early as 2005 to discover ‘shale gas’ and ‘coalbed methane’ in an area, which takes in local beauty spots near Benevenagh and Magilligan, known as the ‘Rathlin Basin’

The firm have already struck oil in the Rathlin Basin and say that they are primarily focussed on ‘conventional’ targets, but have consistently refused to rule out the option of fracking.

Now, Friends of the Earth have warned that there will be no benefits for locals because any jobs that might arise out of Rathlin Energy carrying out any ‘fracking’ work are “unlikely” to go to locals. They also said it was unlikely gas bills would be reduced and that pollution, disruption and greenhouse emissions will be the only outcome.

A spokesperson for the Environmental group said: “Energy Minister, Arlene Foster, should rule out exploration for shale gas. We should be moving towards a low carbon future, not drilling for more dirty fossil fuels. We need to be cutting our greenhouse gas emissions now. That means energy efficiency and renewables. Fracking for gas is going in completely the wrong direction.

“Shale gas is not only bad for the environment, but it’s unlikely to have any benefits for the people of the north coast, or Northern Ireland in general. Northern Ireland has no experience in fracking so the best paid jobs are unlikely to go to local people. And the gas will most likely be sold at international prices, so we won’t see lower gas bills either. All we will get is pollution, disruption, and greenhouse emissions – lose, lose, lose. The only winners will be Rathlin Energy.”

Meanwhile, the exact financial benefits to be expected from any “oil or gas extraction from the coastline” have been outlined by Enterprise Minister Arlene Foster, who had been asked to provide the details by North Down MLA Alex Easton.

She said: “Taxable profits from the production of oil or gas in the United Kingdom are subject to Ring Fence Corporation Tax (RFCT) and a Supplementary Charge on the company’s ring fence profits. RFCT is levied at 30 per cent and the current rate of the Supplementary Charge is 32 per cent, although a Field Allowance was introduced in 2009 to reduce the impact of the Supplementary Charge on new marginal fields.

“The UK oil and gas fiscal regime is administered by HM Revenue and Customs, Large Business Service Oil and Gas Sector from whom further information is available.

“Oil or gas production onshore Northern Ireland is also subject to a 7.5 per cent ‘royalty’ payable to the former owners of the rights in minerals and petroleum.

“In some circumstances it may be more advantageous to develop oil and gas resources that lie beneath the seabed close to the coast from a coastal onshore location rather than from an offshore platform, for a variety of economic, environmental or engineering reasons.”