Legal News Oil & Gas

Judicial review dismissed over UKOG Horse Hill oil

A judicial review has been dismissed against Surrey County Council’s planning consent for long-term oil production at the UK Oil and Gas (UKOG) site in Horse Hill, Surrey.

Portfolio: UKOG said that oil would remain necessary to manufacture electric vehicles and wind turbines (UK Oil and Gas)

The High Court’s judgement rejected the challenge’s three grounds, so leaving the company’s planning consent in place.

UKOG, which owns 85.635% of the project, was granted permission in September 2019 for long-term oil production at the site.

The challenge, by Sarah Finch for the Weald Action Group, claimed that the council failed to assess indirect greenhouse gas emissions of the development arising from the combustion of any produced oil. She also argued that the council’s decision did not comply with governing European Union and Town and Country Planning Act environmental impact assessment (EIA) regulations.

However, Mr Justice Holgate found yesterday (21 December) that the council had acted in accordance with regulations and that “their obligation did not include the environmental effects of consumers using (in unknown locations unrelated to the development site) an end product which would be made in a separate facility from materials to be supplied from the development being assessed.”

The judgement added that such indirect environmental effects outside of the development fell under other environmental regulatory regimes, which the council concluded would act to safeguard the environment.

The court also found that there was no question of national planning policies being in conflict with the EU / EIA regulations.

In addition, the court highlighted that, had the challenge been successful, there would have been implications on the need to assess all indirect carbon emissions from projects such as mineral extraction, metals, energy, aviation, manufacturing, handling of waste, recycling, recovery and disposal to landfill, all of which generate indirect carbon emissions.

Present during the hearing were legal teams for UKOG, Surrey County Council, and for the Secretary of State for Housing, Communities and Local Government who was acting as an interested party with respect to UK planning policy and guidelines. There have been two previous attempts to bring a judicial review against the council.

Following the ruling, UKOG chief executive Stephen Sanderson said the judgement had been a victory for law and common sense.

“One can, however, only wonder why a comprehensively unsound claim with a clear political agenda was permitted so many bites at this legal cherry. Justice Holgate made it abundantly clear in his judgement that the courts are not responsible for making political, social, or economic choices.   

“To our opponents, many of whom fail to see the irony of burning oil to drive to our site to protest, I bring to their attention last week’s Energy White Paper, in which indigenous oil and gas is a part of the UK’s energy transition to net zero.”

Mr Sanderson added that oil use as a non-combusted industrial feedstock would remain necessary to manufacture key 21st century materials such as electric vehicles, green aviation or wind turbines.

“It must surely be preferable that such transitional fuel and vital feedstocks should come from domestic sources rather than those beyond our control and regulation.

“Production will thus continue at Horse Hill to ensure that each highly regulated barrel we produce is one less higher carbon footprint and less regulated barrel imported. Our indigenous barrel’s economic benefit will also remain in the UK rather than add to the UK’s balance of payments deficit.”