Your interview: Francis Egan, chief executive of Cuadrilla Resources

FRANCIS EGAN (FE): Cuadrilla is drilling an exploration well on a site at Balcombe where an existing exploration well was drilled by Conoco in 1986. The site in question has, we understand, existed in harmony with the environment since that date. Our proposed exploration activities on this site will be relatively short (a matter of months) after which the site will be restored to its former condition. We do not anticipate that our exploration activities will have any long-term impact on the outstanding natural beauty of Balcombe More broadly, we believe that onshore oil and gas exploration and production in the UK is not only essential for UK energy security and economic development but also that these activities can and will co-exist with local communities and environmental protection. The successful onshore oil operation at Wytch farm in Dorset is a perfect example of this. The onshore natural gas processing terminal in Talacre North Wales is another. There are several existing oil producing operations in Sussex which co-exist in harmony with local communities and the environment.

In Lancashire, Cuadrilla is completing a rigorous environmental permitting process (run by the Environment Agency) for its proposed shale gas exploration activities. Cuadrilla is also completing detailed Environmental Impact Assessments (EIA) for each proposed shale gas hydraulic fracturing site.

These EIAs will be carried out by a recognised and respected industry leader. To say that this illustrates a “flagrant disregard” for the environment is not only factually incorrect but insulting to the professionalism and integrity of the Environment Agency, the Health and Safety Executive, Lancashire County Council and Department of Energy and Climate Change, all of whom have obligations to ensure that environmental protection and the interests of local communities are protected whilst also progressing the legitimate and important exploration and development of our own natural resources.

STEVE HUCKLE: The UN’s Intergovernmental Panel on Climate Change (IPCC), in their Fourth Assessment Report, found that “warming of the climate system is unequivocal” and “most of the observed increase in global average temperatures since the mid- 20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations”.

The effects of this warming are not easily predicted, but amongst the likely scenarios highlighted by the report, include dry regions are projected to get drier, drought-affected areas will become larger and heavy precipitation events are very likely to become more common and will increase flood risk.

Many millions more people are projected to be flooded every year due to sea-level rise by the 2080s. Fracking will create more greenhouse gas emissions. Given the findings of the UN’s IPCC Fourth Assessment, could you explain why this is a good thing?

FE: In answer to the question, burning natural gas (instead of other fossil fuels, particularly coal) emits fewer pollutant emissions. In addition, developing and producing our own indigenous onshore shale gas reserves under a strict UK regulatory environment will, we believe, result in significantly lower CO2 emissions than importing that gas in liquified form from the Middle East, North Africa or the US or in pipelines from Norway or Russia. The growth of renewables share of UK electricity generation should reduce both coal and natural gas demand over time and with that CO2 emissions from electricity generation. However, as some two-thirds of UK natural gas usage has nothing to do with electricity generation (being primarily used for heating homes and businesses and as feedstock for industry), the growth in gas imports from further afield, with consequent higher emissions, is likely to remain for many decades. Producing and consuming our own natural gas reserves makes both economic and environmental sense.

Finally, as almost 50% of UK primary energy demand is accounted for by the transport sector, increasing natural gas share of that sector (for example by using compressed natural gas as a fuel in public transport), is entirely consistent with reducing emissions and developing our shale gas reserves.

LUCY DUNNE: Recently meetings at local government level have confirmed that issues such as fracking are completely out of local hands. Is Cuadrilla happy to continue collaborating with central government in bypassing local democracy?

FE: This is simply not true. All of Cuadrilla’s exploration activities in the UK (historic and ongoing) have, and continue to be, subject to local planning approval processes including local consultation. We are committed to providing the local community with information and explanation about our plans, hence our recent public information session in Balcombe.

MARINA: I have read “the list of the harmed” – the list of the individuals and families that claim to have been harmed by fracking in the US. There are more than 1,350 cases on this list.

I am astonished that the company you represent plans to subject us to the same thing here in Sussex.

I am afraid for my health – I have multiple chemical sensitivities and if I am exposed to certain synthetic chemicals I experience nausea, searing pain and extreme exhaustion. I’m also afraid for the health of the community, local ecology and future generations.

How do you feel about the people who have already paid with their health in the US? And are you willing to make me pay with my health here in Sussex?

FE: From our experience at the drop-in event held in Balcombe recently, we are aware that people have been told or read that our operations will or could harm people’s health. This is not the case. There have been more than 2,000 wells drilled onshore in the UK, more than 50 in West Sussex alone and we are not aware of a single documented case of any member of the UK public or indeed workforce drilling those wells becoming ill as a consequence.

The oil exploration well that Cuadrilla plans to drill outside Balcombe is no more technically challenging than all of these previouslydrilled wells so we do not believe that there is likely to be any risk of damage to health, property or the environment.

Cuadrilla has appointed independent specialists, GGS, to carry out air quality baseline monitoring for the duration of our work. The monitoring is extensive and capable of detecting for a number of parameters including methane, nitrogen dioxide and sulphur dioxide. We will benchmark these against the Air Quality Standards Regulations 2010 and will publish a summary of our monitoring activity.

LOUISA DELPY: Last Thursday Cuadrilla held a drop-in session where I met with Francis Egan privately for an hour of my own questions and answers. During our conversation, Francis confirmed that Cuadrilla would be looking to exploratory drill, under its exploration licence, other locations within Sussex before going to full scale production.

This would enable them to make a better guess at the size of the potential oil and gas extraction opportunity. Where are these potential sites?

FE: As discussed at our drop-in session, Cuadrilla has yet to drill a single exploration well in its Sussex exploration licence and the well at Balcombe will be the first for Cuadrilla. In the event that the Balcombe exploration well discovered oil in commercial quantities, it would be unusual for Cuadrilla, or indeed for any other exploration company, to move into a development phase on the basis of a single exploration well. The more likely scenario, if the first well is successful, would be a requirement to drill one or more other exploratory wells (typically called appraisal wells) to better define the extent of any discovery. As we have not yet drilled, or seen the results of the first well, Cuadrilla has not committed to drilling any additional wells much less determined surface locations from where any such appraisal wells might be drilled.

LOUISA DELPY: Why have you chosen to drill within 100m of the mainline train line from London to Brighton when the method you are proposing has been linked with seismic activity and there is a viaduct at Balcombe built in 1841?

FE: Cuadrilla’s exploration well location is on the exact same site as the Conoco well drilled in 1986 (to a deeper vertical depth and with a larger rig) with no damage caused to the viaduct. The Cuadrilla exploration well will vary in diameter from a diameter of 17.5 inches over the first 140 feet to just 6 inches in diameter in the reservoir section. We are more than confident that the level of vibration associated with drilling such a well will not damage the viaduct, which is capable of accommodating the vibration associated with a fully laden passenger train. There is no documented connection between drilling and seismic activity.

ROSALYN ST PIERRE: Given the extreme stress on water supplies in an area of expanding population and an ageing population where water usage is high, how will the companies provide water for fracking operations where recycling of that water is negligible?

Will Cuadrilla oppose the plans to make pollution of the environment a criminal offence with a possible prison sentence for chief executives and their teams?

FE: The water that Cuadrilla uses is sourced from local utilities and we are and will be subject to the same rules and regulation as any other industrial customer including, if there are water shortages, the same restrictions and curtailments. It is worth noting that the Institute of Directors (IoD) put potential water usage for shale gas development into context in a recent report. The IoD calculated that water requirement for a shale gas development scenario ultimately reaching 100 multi-well production pads, under a maximum water case (no water recycling) assumption would peak at 0.05% of UK current annual water consumption.

Ultimately of course the UK and individual counties will need to decide how they allocate water resources for domestic, industrial (including energy) and leisure uses.

The planned test drilling at Balcombe will use 500m3 of water, less than half the contents of an average 50 metre swimming pool.

ETHAN MERRICK: The oil well at Balcombe is around 100m away from the nearest houses. How can people who live in Sussex find out if a well is being planned in their locality?

FE: DECC has put all of its information for onshore exploration on one web page gov.uk/oil-and-gas-onshoreexploration- and-production. The best way to see the licences is an interactive map on the UKOGL site, ukogl.org.uk.

PAUL BONHAM: If 82 per cent of a village (Balcombe) has voted against fracking, why is Cuadrilla arrogantly going ahead with drilling against the wishes of the majority of the people in Balcombe?

FE: This is approved activity and Cuadrilla has been granted all the relevant permissions and approvals.

Cuadrilla has followed the approved process for our planned activities at Balcombe, which do not entail hydraulic fracturing in the planned operation. Any future proposal to fracture would be subject to a separate process which would include public consultation.

OWEN McDONOUGH: I would like to know if Cuadrilla is going to compensate the village for the drop in property values due to the company drilling close to the village?

FE: As far as we are aware, there has been little research into the impact of oil and gas exploration on house prices. All I can say is that more than 50 exploration wells have already been drilled in Sussex (several of them still in production) and we are unaware that their presence has had any impact on property prices. In fact, Balcombe has already had such an exploration well and there has never been any suggestion that the Balcombe-1 well drilled on the same site in 1986 made the village of Balcombe less desirable.

Our single well exploration activity will be a temporary operation, lasting for a period of approximately four months and all equipment will be removed from site by the end of September.