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Report to the Leader of the County Council
Report submitted by: Interim Executive Director for Environment
Date: 4 August 2014
Part I
Electoral Division affected:
Fylde East
The Environment Agency Consultation on an Application for Environmental
Permits from Cuadrilla Elswick Ltd for the Proposed Exploratory Shale Gas
Site at Roseacre Wood, Roseacre Road, Lancashire
Contacts for further information:
Clare Phillips, 07814 043253,
[email protected]
Andrew Mullaney, (01772) 534190,
[email protected]
Stuart Perigo (01772) 531948,
[email protected]
Executive Summary
This report describes the Environment Agency consultation on applications for
environmental permits from Cuadrilla Elswick Ltd for the proposed exploratory
shale gas site at Roseacre Wood, Roseacre Road, Lancashire.
The purpose of this report is to provide a recommended response from the County
Council to the consultation.
Recommendation
The Leader of the County Council is asked to consider and approve the
recommended response to the consultation as set out in the report.
This decision should be implemented immediately for the purposes of Standing
Order 34(3) as any delay could adversely affect the execution of the County
Council's responsibilities. The reason for this is that the response should be
submitted to the Environment Agency by the deadline of 5 August 2014.
Background and Advice
1. The consultation
Cuadrilla Elswick Ltd has applied to the Environment Agency for permits for their
proposed new sites at Roseacre Wood, Roseacre Road, Lancashire.
The consultation documents can be viewed at
https://consult.environment-agency.gov.uk/portal.
Cuadrilla has applied for the following permits:

Environmental Permit for the management of mining waste involving waste
facilities, the flaring of gas in plant with a capacity of over 10 tonnes per
day.

Environmental Permit for a radioactive substances activity permit to
accumulate radioactive waste and dispose of radioactive waste.

Environmental Permit for groundwater activity. Permit for the discharge,
from oil and gas exploratory operations, of pollutants that might lead to an
indirect input of those pollutants to groundwater.
2. What are Environmental Permits?
Shale gas developments that include hydraulic fracturing require environmental
permits under the Environmental Permitting (England and Wales) Regulations 2010.
The Environment Agency determines these applications by undertaking
environmental risk assessments.
Environmental permit for a mining waste operation
The EU Mining Waste Directive requires that extractive wastes are managed in a
way that minimises harm to human health and the impact on the environment. The
waste can be solid, liquid or gas and both oil and gas are defined as minerals. The
operator is required to demonstrate the management of waste through a waste
management plan that accompanies the permit application.
Environmental Permit for a radioactive substances activity permit
Naturally occurring radioactive materials (NORM) are present in many geological
formations including oil and gas bearing strata such as shale formations. The flowback fluid that returns to the surface following hydraulic fracturing, as well as
sediments and scales in gas or water process vessels are likely to contain sufficient
NORM that they will be classed as radioactive waste. As such the operator must
have an environmental permit for their temporary storage and subsequent treatment
and disposal. The level of radioactivity is however extremely low.
An operator seeking to dispose of radioactive waste will need to assess all
reasonably practicable disposal options and explain his choice. All facilities that
accept the radioactive waste must hold the appropriate permits to manage the
treatment and disposal of the waste. The radiological impact of their disposals [and
hence of waste transferred to them] will be assessed as part of the permit
applications. Applicants proposing to transfer waste will need to demonstrate that
they have contracts in place with suitable waste disposal companies.
Environmental permitting of groundwater activities
The Environment Agency (EA) assesses activities that could involve the discharge of
pollutants into groundwater (a ‘groundwater activity’) and the nature of these
pollutants. There must be no direct discharge of pollutants into groundwater. The
indirect entry of non-hazardous pollutants must be limited so as not to cause
pollution.
The operator must inform the EA of the chemicals they propose to use in activities so
that they can assess whether a substance is hazardous. Operators are expected to
propose only non-hazardous substances for use. A permit application should include
a detailed evaluation of any risks to groundwater and the proposed measures to
prevent the input of hazardous substances and to limit the input of non-hazardous
pollutants so as to ensure such inputs do not cause pollution of groundwater.
3. Summary of the permit applications
Waste
During the lifecycle of the exploration programme, a number of extractive wastes will
be produced. Further detail of how the following extractive waste streams will be
managed is provided in the permit application. This includes the following waste
streams:
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Drilling muds;
Drill cuttings;
Cement;
Sand;
Flow back fluid;
Surplus natural gas;
Spacer fluid;
Scale; and
Retained hydraulic fracturing fluid.
Extractive waste is accumulated on site in steel skips or containers pertinent to the
waste stream. The containers store fluids and solids coming out of the well for a
period of time prior to off-site disposal.
The waste streams are then sent to permitted facilities (depending on the waste
stream) and taken by licensed waste carriers.
Solid wastes are likely to be classified as construction wastes and disposed of at
appropriate facilities.
The flow-back fluid that returns to the surface following hydraulic fracturing, as well
as sediments and scales in gas or water process vessels are likely to contain
sufficient NORM that they will be classed as radioactive waste. As such the operator
must have an environmental permit for their temporary storage and subsequent
treatment and disposal. The flow back water will be removed off site by a waste
contractor for treatment and disposal at a waste water treatment facility that is
licensed to accept this waste.
After fracturing, and once the well is plugged and abandoned, some fluid remains
within the very low permeability formation. Fluid retained in the formation several
thousand feet below ground presents a very low risk to the environment with no
direct pathways or pressure gradient to the surface or upper groundwater once the
well is plugged and abandoned.
In the early stages (up to 90 days), it is proposed that surplus natural gas will be
combusted in one or two enclosed flares at the site and is not stored or accumulated.
Waste natural gas is flared on site using best available techniques. The waste gas is
burnt in an enclosed flare at temperatures exceeding 800°C for complete combustion
and converts methane into carbon dioxide and water vapour. Ambient air quality
monitoring shall be conducted at a number of locations surrounding the site.
Monitoring shall be conducted before, during and after operations. A combination of
hand held equipment and diffusion tubes shall be utilised to record a range of air
quality parameters including methane, oxides of nitrogen, hydrogen sulfide and
others. Samples from the monitoring locations shall be collected and analysed by an
independent consultant. Emissions from the flare stack shall be assessed with
continuous temperature monitoring of the flare to ensure effective combustion is
achieved. The feedstock into the flare shall be regularly sampled to establish the
natural gas composition.
Groundwater
The rock formation directly above the target formation, known as the Millstone Grit,
has been assessed as a groundwater unit. A groundwater activity permit is therefore
required. Review of the Millstone Grit identifies a poor quality groundwater receptor
at depths of ~1300m to ~1550m below ground level. Hydraulic fracturing fluid
injected into the target formation is not likely to reach groundwater in the layers of
rock formation lying above due to the absence of a pressure gradient forcing the fluid
to the surface. A thick, impermeable formation (the Manchester Marl) lies above the
target formation. As a result the application concludes that fracturing fluid will be
trapped and held in the target formation.
Surface & Groundwater Management
It is proposed that the site pad is underlain by a membrane designed to provide
containment for any spilled liquid. The drilling muds, cuttings skips, cement,
suspension fluid and flow back fluid are stored in separate containers located upon
the well pad membrane. The risk of any adverse impact to groundwater is highly
unlikely from the extractive waste streams.
Surface water run-off attenuation will be provided by a perimeter drainage ditch
system. The system is closed during operations and discharges from site are only
conducted in consultation with the Environment Agency. These measures will be put
in place to ensure no escape of materials from site. Surface water shall be sampled
for the duration of the project taking into account baseline conditions and
environmental quality standards. Sampling shall be conducted in combination with
independent consultants.
Groundwater boreholes will be drilled around the edge of the well pad to allow the
quality of groundwater and dissolved gases within the shallow geology to be
monitored. Monitoring is conducted on a continuous basis, with samples taken and
analysed by an independent consultant.
4. Comment and recommended response

It should be noted that although shale gas operators must have planning
permission from the planning authority, they must also apply to the Environment
Agency under a separate regime for a range of environment permits.

Lancashire County Council is in receipt a Planning Application from Cuadrilla
Elswick Ltd for the proposed exploratory shale gas site at Roseacre Wood,
Roseacre Road, Lancashire and an Associated Application for a monitoring
array. The application for the site development will be for drilling, fracking and
extended flow testing with a direct connection to a local gas transmission pipeline
if extended testing is to be carried out. It is proposed to drill 4 vertical/lateral
boreholes extending underground within a defined quadrant as projected to the
surface. The application for the array is for up to 80 monitoring boreholes located
strategically around the site and which will be used to monitor seismicity
associated with the fracking and ground water. The Planning Application is
accompanied by an Environmental Statement which has been produced as a
result of the environmental impact assessment of the proposed development.

The Environmental Statement has been submitted as supporting information to
the Permit Application.

The County Council as part of the determination of the Planning Application will
come to a view on the impacts that have been described in the Environmental
Statement that accompanies the Planning Application. The interrelationship
between the permit application and the information presented in the
Environmental Statement is recognised. The County Council therefore reserves
the right to make further comment upon the applications for the environmental
permits until a view on the Environmental Statement is established as part of the
determination of the planning application.

It is noted that Environment Agency is a statutory consultee in the planning
process and the Agency's view on the permits will be a consideration in the
determination of the planning application.

The County Council believes the Agency must satisfy itself that all environmental
risks can be controlled to an acceptable level.

It is the County Council's view that in the determination of Permits, the
Environment Agency needs to be satisfied that appropriate waste management
facilities are in place, and particularly in light of the emerging national strategy for
the treatment of NORM. The Environment Agency should be satisfied prior to the
granting of any Permits for the site that adequate capacity is available, and will
remain available into the future to treat and dispose of the waste streams set out
in the permit. In addition, the Environment Agency should be convinced that the
operator has taken every effort to reduce the amount of waste to be treated and
disposed off-site in line with the Waste Hierarchy.

The County Council would also recommend that appropriate baseline and
operational monitoring of groundwater and air quality should be a requirement of
any permit, and the Agency should randomly verify the applicant's monitoring
results.

Finally, the County Council is keen to ensure that long term environmental
monitoring (eg, 10 years or more) of the site and its environs is undertaken after
operations have ceased, and the results of such monitoring are published
regularly. If the Agency grants a permit, the County Council would welcome the
inclusion of a condition along these lines.
Consultations
The County Council's Finance and Legal Services groups have been consulted on
the drafting of this report and their comments addressed.
Implications:
This item has the following implications, as set out in the report.
Risk management
N/A
List of Background Papers
Paper
Date
Contact/Directorate/Tel
Environment Permit Application,
Roseacre Wood
June 2014
Clare Phillips/
Environment/(01772)
534190
Reason for inclusion in Part II, if appropriate
N/A