Energy & Utilities Onshore Energy

Understand deep land rights and petroleum licensing for onshore energy

How deep level land access rights work for petroleum and geothermal exploration. Covers the 300m depth threshold, PEDL licensing, hydraulic fracturing consent requirements, and the 11 statutory safeguards. Includes differences between England/Wales and Scotland.

UK-wide
Guide summary

You need a Petroleum Exploration and Development Licence (PEDL) to explore for oil or gas onshore in England or Wales. You can drill below 300m without landowner consent but must notify them first. You also need planning permission, environmental permits, and hydraulic fracturing consent if fracking below 1000m.

  • Get a PEDL from NSTA before exploring for petroleum
  • No landowner consent needed for drilling below 300m
  • Notify landowners at least 21 days before starting work
  • Apply for planning permission for surface works
  • Get environmental permits from the Environment Agency
  • Hydraulic fracturing consent required below 1000m
  • Scotland has different rules and a moratorium
  • PEDL lasts up to 24 years across 3 terms
  • Initial term lasts 6 years maximum
  • Pay annual rent from £30 per km²
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UK-wide

Related guides in Energy & Utilities

If you're exploring for petroleum (oil and gas) or developing geothermal energy in England or Wales, the Infrastructure Act 2015 provides important rights for operations at depth. Understanding these rights - and the obligations that come with them - is essential before starting any onshore energy project.

This guide explains:

  • How deep level land access rights work (no landowner consent needed at 300m+ depth)
  • The Petroleum Exploration and Development Licence (PEDL) process
  • MER UK Strategy obligations for petroleum operators
  • Hydraulic fracturing consent requirements and the 11 safeguards
  • Seismic monitoring and community benefit requirements
  • Key differences for operations in Scotland

Deep level land access rights

One of the most significant provisions of the Infrastructure Act 2015 is the creation of statutory access rights to land at depths of 300 metres or more. This means you do not need to negotiate with or obtain consent from surface landowners to use deep-level land for petroleum or geothermal operations.

This right exists because at 300 metres depth, surface activities are generally unaffected by deep drilling or extraction operations. The 300-metre threshold was chosen to balance property rights against the national interest in energy security.

What you can do with deep level land rights

The statutory right allows you to:

  • Drill and bore through deep-level land
  • Fracture or otherwise alter the deep-level land
  • Install, use, and remove infrastructure
  • Inject substances (such as fracturing fluids) and remove them

What you still need

Deep level land rights do not remove the need for:

  • A petroleum licence (PEDL) from NSTA or Scottish Government
  • Planning permission for surface works
  • Environmental permits from the Environment Agency
  • Hydraulic fracturing consent from the Secretary of State (if fracturing at 1000m+)
  • Surface access agreements for your well site location

Notifying landowners before deep drilling

Although you do not need landowner consent for operations at 300m+ depth, you must still notify affected landowners before starting work.

This notification is a courtesy and transparency requirement - it does not give landowners a right to refuse access to deep-level land. However, maintaining good relations with local landowners and communities is important for the long-term success of any onshore energy project.

Getting a Petroleum Exploration and Development Licence (PEDL)

Before you can explore for or produce petroleum onshore, you need a PEDL from the North Sea Transition Authority (NSTA) in England and Wales, or from the Scottish Government in Scotland.

PEDLs are awarded through competitive licensing rounds. The licence gives you exclusive rights to explore and produce petroleum in your licensed area, but you must also obtain planning permission and environmental permits before any physical work can begin.

Current licensing position

An effective moratorium on hydraulic fracturing for shale gas in England has been in place since November 2019 (briefly lifted September-October 2022, then reinstated). The current government has committed to making this ban permanent through legislation. No new licensing rounds for unconventional oil and gas have been announced since the original moratorium.

Conventional petroleum operations (where hydraulic fracturing is not required) may still proceed under existing licences, subject to the normal planning and environmental permit requirements.

MER UK Strategy - your obligations to maximise economic recovery

The Infrastructure Act 2015 puts the MER UK Strategy (Maximising Economic Recovery) into law. If you hold a petroleum licence, you are legally bound by this strategy.

The MER UK Strategy has been revised to incorporate net zero considerations. You must now balance maximising economic recovery against the UK's climate commitments. This means considering carbon emissions in your operational decisions and being prepared for the transition away from fossil fuels.

Practical implications

  • You must collaborate with other licensees to maximise recovery (e.g., shared infrastructure)
  • NSTA can require you to share data with other operators
  • You cannot abandon reserves prematurely without NSTA approval
  • Decommissioning decisions must consider whether remaining reserves could be economically recovered by another party

Hydraulic fracturing consent and safeguards

If your operations involve associated hydraulic fracturing (high-volume fracturing of shale formations), you need specific consent from the Secretary of State in addition to your PEDL and other permits.

The 11 statutory safeguards

Section 50 of the Infrastructure Act 2015 requires the Secretary of State to be satisfied that 11 safeguards are in place before granting hydraulic fracturing consent:

  1. Environmental impact assessment - Full EIA completed and considered
  2. Notification to landowners - Surface owners notified of horizontal wells beneath their land
  3. Planning permission - Obtained from the mineral planning authority
  4. Environmental permits - All required permits from the Environment Agency
  5. Well integrity testing - Independent well examination completed
  6. Baseline methane monitoring - 12 months of pre-drill monitoring
  7. Ongoing methane monitoring - Plan for operational and post-completion monitoring
  8. Protected areas exclusion - No fracturing within protected groundwater source areas
  9. Public disclosure - Chemicals used must be publicly disclosed
  10. Waste treatment - Flowback fluids must be treated and disposed of properly
  11. Community benefits - Industry commitment to provide community payments

Seismic monitoring requirements

Hydraulic fracturing operations must implement real-time seismic monitoring to detect and respond to induced seismicity. The Traffic Light System (TLS) sets the operational limits.

The 0.5 ML threshold is particularly stringent compared to international standards. This was set following the 2.3 ML event at Preese Hall in 2011, which caused minor damage to the wellbore. The current threshold means even very minor seismic events - smaller than most people could feel - require operations to stop.

Implications for operators

The strict threshold has made commercial hydraulic fracturing operations challenging in the UK. Operations at Cuadrilla's Preston New Road site in 2018-2019 were repeatedly halted due to seismic events above 0.5 ML, which ultimately led to the moratorium being imposed.

Environmental permits for onshore operations

Separate from your PEDL and any hydraulic fracturing consent, you need environmental permits from the Environment Agency (England) or Natural Resources Wales to manage the environmental impacts of your operations.

Environmental permits are assessed independently of planning permission and petroleum licensing. The Environment Agency considers:

  • Impacts on groundwater and surface water
  • Waste management arrangements
  • Air quality (including methane emissions)
  • Noise and vibration
  • Naturally occurring radioactive materials (NORM)

Well integrity and safety requirements

The Health and Safety Executive (HSE) regulates well integrity for onshore petroleum operations. You must ensure your wells are designed, constructed, operated, and abandoned to prevent any uncontrolled release of hydrocarbons or other fluids.

Well integrity is particularly important for hydraulic fracturing operations, where the wellbore is subjected to high pressures. The requirement for two independent barriers at all times is designed to provide redundancy against well failure.

Community benefit requirements

The onshore oil and gas industry has committed to providing financial benefits to communities hosting shale gas operations. While not a statutory requirement, this commitment is referenced in the hydraulic fracturing safeguards.

Community benefit payments are designed to ensure local areas share in the economic benefits of energy development. The payments are additional to any business rates or other taxes paid by the operator.

Scotland - different rules apply

Onshore petroleum licensing in Scotland has been devolved since February 2018. The Scottish Government has implemented an indefinite moratorium on unconventional oil and gas extraction, meaning no new hydraulic fracturing operations will be permitted.

Steps to develop an onshore petroleum project

  1. 1

    Identify your target area and assess resources

    Use geological data (seismic surveys, well logs from existing wells) to identify prospective areas. Check whether the area falls within an existing PEDL or whether you would need to apply in a future licensing round.

  2. 2

    Apply for or acquire a PEDL

    Either apply in a new licensing round (when announced) or acquire interests in existing licences from current licensees. The NSTA must approve any licence transfers.

  3. 3

    Engage with local planning authority and community

    Before submitting planning applications, engage with the mineral planning authority and local community. Pre-application discussions can identify potential issues early. Consider community benefit arrangements.

  4. 4

    Apply for planning permission

    Submit planning application to the mineral planning authority. For nationally significant infrastructure projects (above certain thresholds), a Development Consent Order may be required instead.

  5. 5

    Apply for environmental permits

    Submit permit applications to the Environment Agency (England) or Natural Resources Wales. Allow 4-6 months for standard applications, longer for complex or contentious projects.

  6. 6

    Notify HSE and prepare well design

    Notify HSE of your intention to drill at least 21 days before commencing operations. Have your well design independently verified by a competent person.

  7. 7

    If hydraulic fracturing - apply for consent

    If your operations will involve associated hydraulic fracturing, apply to the Secretary of State for hydraulic fracturing consent (note: currently subject to moratorium in England).

  8. 8

    Implement monitoring and begin operations

    Install seismic monitoring arrays, commence baseline methane monitoring (12 months required before fracturing), and implement your environmental management plans.

Manufacturing & Engineering Opportunity

Geothermal projects also benefit from deep level land rights

Deep geothermal energy projects (such as enhanced geothermal systems or deep heat mining) can also use the deep level land access rights under Section 43 of the Infrastructure Act 2015. The 300m depth threshold applies equally to geothermal and petroleum operations. Unlike hydraulic fracturing for shale gas, geothermal projects are not subject to the current moratorium and may benefit from a more favourable policy environment as part of the UK's transition to net zero.