Chemical News
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Total set to appeal against cancellation of French shale gas permit: CEO
https://www.chemnet.com Nov 29,2011 Platts
Total is to appeal against the French government's decision earlier this year to cancel its permit for the exploration of shale gas, company CEO Christophe de Margerie said at the weekend.
The government said in October it had decided to annul the three shale gas exploration permits it allocated in 2010 following a law enforced in July banning the use of hydraulic fracturing, or fracking, for shale gas and oil on French territory.
Total held a permit to explore a 4,327 sq km site around Montelimar, southern France. The two other shale gas permits were held by US company Scheupbach Energy.
The ban on fracking was a response to rising public and political opposition to shale drilling. It stipulated the permit holders had two months to declare which method of drilling they would use and their permits would be repealed if they indicated the fracking technique.
In October, Total CEO Christophe de Margerie said the company had declared to the government it would not use the fracking technique and at a forum in Lyon on Saturday, he said the company would appeal against the government's decision.
Total was told by the government its plan was not believable and the company wanted further explanation, a company spokesman confirmed Monday.
According to French law, the French company has until December 12 to appeal and the company is considering two options.
One is to formally ask the energy and ecology ministries for a detailed explanation on why the permit was canceled.
The second option is to file a formal appeal to a French administrative Court.
Total had not planned to begin exploration drilling on the site until 2012 at the earliest.
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