In terms of ownership, shale gas deep underground is owned by ‘the Crown’. However, land owners who have wells drilled on their land will receive payment from shale gas operators.
There will also be financial benefits to communities. The industry has committed to paying £100,000 to the local community living near to each exploratory well site where hydraulic fracturing takes place, together with a £20,000 community benefit payment per unique horizontal well over 200 metres in length and below 300 metres in depth. This will be paid by the operator, regardless of whether or not recoverable deposits are found. In addition, the industry has committed to paying communities 1% of the value of the shale gas that is produced – for a site of 40 horizontal wells, this could be worth £5-10 million in total.
In addition, operators will pay business rates on their sites – 100% of which will go straight to the local authorities in the area. And finally, operators will pay up to 62% tax to the national government on any profits from shale gas production.
If it is viable to extract shale gas in a certain area, the operators themselves will benefit financially. They will only extract shale gas in a certain area if they can make a profit doing so, like all gas and oil companies – and indeed, companies in other sectors.
Thank you to everyone who submitted questions similar to the one above. Questions we have received which are similar are shown below:
- Can it be nationalised, or will it just be another way for privatised firms to maunfacture top directors wages while we pay through the nose are noses by extortionate bills?
- I would like to know who will be making lots of money from fracking? Will it be British companies?
- North sea gas when found was to be cheap for everone except the users fracking if goes ahead will be the same making a fortune for the shareholder but destroying the earth in the process of greed for foreign investors
- What safe guards will be put in place to ensure: financial security of people negatively affected by fracking; engineering safety and integrity of an associated operations; profits will be shared with the users
- Is shale gas obtained by "fracking" going to: A: Reduce pollutant emmissions, B: Reduce consumer costs; C: Obviate foreign imports of fuel; D: Make more profits for oil/gas industry
- If they find it under my house how much money do I get?
- If it gets found under my house will I get any money?
- What rights do the people have that own the land?
- Who benefits most from fracking is it the tax payer or investor
- Will any money raised by fracking come back to me?
- Who are the fat cats who will gain the most profits? We do not want Americanised exploitation here in England. Who is pushing for shale gas? Certainly not the people!
- The dangers associated with fracking appears to be very real. Why is the interests and safety of people and countryside secondary, whereas it appears yet again (utilities/banks) ultimately profit for companies is all that matters? Surely renweable energy (safe) etc. is a better route. Homes without gas!
- I want to know that the profits from our shale gas go back in to our country and we don't use foreign companies to process.
- Does this just benefit the rich? Why aren't you using alternative methods to get energy? Why do polititians not want fracking near them?
- Are you only concerned about the share holders?
- Is it going to cost me anything? In tax is this going to create jobs? How profitable is it going to be to the rich and the poor? How is it going to effect pollution? Why do we need it ? What is the benefit?