A nice little boost for homeowners...

cells

A single well pad could be draining an area of 20,000 acres or more so MR smith with his house on 0.2 acres wouldn't get much at all.

The tax rate for the gas will be in the region of 60% whih goes to central gov. Perhaps 10% of that should go to the council who can lower local council tax.

cells

The great potential of shale in the UK is that lots of pipeline infrastructure already exists so production will not be limited by pipelines or the need to build them.

The UK could well handle 100BCM of shale gas production using mostly existing infrastructure. That's a £22B a year industry with 60% going to gov as royalties and some 20k plus jobs

And then perhaps shale oil too if that could add 1mbpd of production it would be another £20-25B boost

IronWolf

Cant say I agree with Boris on this, I think what's underground should remain the property of the country as a whole and not individuals. The rights have to end somewhere.

princeofpounds

Perhaps 10% of that should go to the council who can lower local council tax.

I think there was a provision for some direct council tax recently introduced actually. Relatively small.

Ozzuk

IronWolf wrote: »

Cant say I agree with Boris on this, I think what's underground should remain the property of the country as a whole and not individuals. The rights have to end somewhere.

Why do rights have to end? If I work hard to own a bit of land, shouldn't it all be mine? Why should someone else be able to say sorry it isn't yours anymore, for the greater good of course.

I do think the government could potentially do more to benefit everyone in country, as do many other countries with low gas prices for instance, but I don't think this should be at the expense of a land owner.

CLAPTON

Ozzuk wrote: »

I do think the government could potentially do more to benefit everyone in country, as do many other countries with low gas prices for instance, but I don't think this should be at the expense of a land owner.

presumably, if there was no gas under your own property, you would welcome the opportunity to pay much higher gas prices to fund the cost of paying off the lucky house owners

silvercar

As a home owner I am allowed to dig a basement to my house and allowed to put a pool in my back garden. Is there a limit on the depth I can go?

Some here seem to be suggesting there is an invisible line, somewhere between the depth of a building's foundations and the depth of fracking. No mention of it on the deeds to my home.

danothy

I suppose the easy solution would be to assign ownership of resources to land owners, but in the case of fracking place the onus on them to demonstrate a fracture has actually been induced in the volume of earth under their property before they can charge for the resources taken.

IronWolf

Ozzuk wrote: »

Why do rights have to end? If I work hard to own a bit of land, shouldn't it all be mine? Why should someone else be able to say sorry it isn't yours anymore, for the greater good of course.

I do think the government could potentially do more to benefit everyone in country, as do many other countries with low gas prices for instance, but I don't think this should be at the expense of a land owner.

The rights have to end otherwise they would go right through the earth to the other side. You don't think we own a little bit of Australia do you?

Its not yours, you buy the land up to about 3m down or something, noone is taking anything away from you, it wasn't yours in the first place.

Land owners should of course be compensated for any disruption, but cant see what benefit it brings to allow a few people to "win the lottery" so to speak by getting lucky with their land purchase.

BillJones

IronWolf wrote: »

The rights have to end otherwise they would go right through the earth to the other side. You don't think we own a little bit of Australia do you?

No, traditionally, as I wrote above, you own the sector down to the centre, and up to the top of the sky. You do not own someone else's sector elsewhere on the planet.