Commercial oil drilling has been given the go-ahead in North Lincolnshire, despite plans being rejected three times by the local authority.
Hampshire-based oil and gas firm Egdon Resources will now retain its well site at Lodge Farm, near Wressle, with a 15-year production plan to be brought forward, after it won its appeal against the decision by councillors in Scunthorpe.
It follows a three-day inquiry held in November.
The authority decided not to defend its reasons to reject the proposal on groundwater contamination concerns and “did not wish to provide evidence” at the hearing.
Now, Government-appointed planning inspector Phillip Ware has approved the proposal and awarded costs against the council.
In his decision, he said he gave “great weight” to the economic benefits of the plan, which involves conventional drilling, not the hydraulic fracking process.
His report said: “The council agrees with the appellant that the proposal would deliver economic benefits nationally and locally through taxation, business rates and direct and indirect jobs and would reduce the need for imported fuel.
“I give great weight to these and other benefits. In particular the proposal would make a significant contribution towards the provision of secure energy supplies and be consistent with the use of a mix of energy sources during the transition to a low carbon economy.”
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He added that any adverse effects of the proposal would “not be significant” and could be “properly controlled and mitigated”.
Egdon managing director Mark Abbott said: “I am delighted that the Planning Inspectorate has made this positive determination in relation to this important asset for Egdon and our joint venture partners.
“We will now begin work on discharging the planning conditions and the detailed planning for the development works. We will continue to keep shareholders and the local community informed.”
It is located to the north of the village off the B1208 Brigg Road, with an initial production rate of 500 barrels per day anticipated. Production start-up in 2020 was eyed up in the annual general meeting presentation, given just before Christmas.
In awarding costs, Mr Ware said the authority acted with “unreasonable behaviour” and delayed the development, which resulted in “unnecessary and wasteful expense”. The council did not resist the application.
It is five years since test operations to establish fuel quantities began, having gained temporary consent in 2013. Drilling started in the summer of 2014 with a well drilled to a depth of 2,240 metres. Test operations began in January 2015 and were completed at the end of the March. The ‘Wressle One’ well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. This totalled 710 barrels of oil equivalent per day from all zones.
Egdon was formed in 1997 and awarded its first licence in 1998. In 2000 Egdon gained its first operated licence and listed on the OFEX market for small company share trading, graduating to the AIM in 2004.
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Revenues of £2.2 million were reported from oil and gas in the year to July, as Egdon produced 182 barrels a day from sites at Ceres, in the near North Sea off East Yo9rkshire and at Keddington and Fiskerton in Lincolnshire. It raised £2.1 million in an open share offer, covering off a £1.7 million loss. Assets were valued at £31 million.
Egdon also has interests in North Kelsey, Louth and Gainsborough, all in Lincolnshire.
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