Shale gas update: major changes for the 14th onshore oil and gas licensing round
The UK government has published application criteria and terms for the 14th onshore oil and gas licensing round, accompanied by new guidance. Many, but not all, issues of concern to developers and others have been dealt with. The need for planning and environmental input at the licensing stage is also significantly increased.
Applications for new licences under the 14th round can be made until 14:00 on 28 October 2014.
Licence model terms set out in the Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014 are tailored to ‘unconventional’ oil and gas and include: new ‘drill or drop’ provisions; extension terms, retention and development areas; new 3D horizon splitting concept on surrender; echoes of Wood Review requirements for maximising economic recovery; and remaining concerns with confidentiality provisions and water injection provisions…
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