£1m fracking promised money should give

Diplomatic correspondent(wp/t)::: Prime Minister told an audience in Lancashire, where fracking is due to resume next year: "We are looking at trying to have a very simple system where every time a well is dug, immediately £1m goes to the local community. "And not just to the local council but actually to local people, so people can see a cash benefit in their local village, in their local town and even, potentially, in their local pocket as well." In fact, ministers in June backed a proposal from the shale gas industry to offer local communities £100,000 in an upfront payment for each exploration or appraisal well site where fracking takes place. Downing Street sources confirmed the Prime Minister had slipped up and the correct figure was £100,000. Fracking, which involves pumping water, sand and chemicals into the ground to extract gas trapped in the rocks, has faced fierce local opposition. Protestors have attempted to block fracking firm Cuadrilla from drilling for oil at Balcombe in Sussex Prime Minister said the government was working to dispel “myths” over fracking and pledged: “Nothing is going to happen in this country unless it’s environmentally safe. “There is no question of having earthquakes and fire coming out of taps,” he said. “There will be very clear environmental procedures and certificates you will have to get before you can frack." Mr Cameron said he did not want Britain to miss out on "cheaper energy" and wanted to emulate the shale gas boom in the US. He said that the promised community benefits - labelled 'bribes' by their critics - were key to winning over local communities. “I think if people can see a direct benefit from fracking and from shale gas they will be more willing to really look at the arguments about, ‘what will this mean for my community if it goes ahead’. I think in that way we can see wells dug and we can see the benefits of shale gas here in the country," he said. As well as the upfront payment when a well is drilled, Mr Cameron said that "if that well is successful, even more money should be ploughed back into the local community". This matched proposals by shale gas explorers who have promised they will also provide 1pc of the revenues if drilling succeeds and production begins, with this money split between the local community and the county. country Onshore Operators Group estimates this could be worth between £5m and £10m per production site over a period of 25-years. Total benefits across the country could be in excess of £1.1bn.