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Council defers vote on permits for UK's first shale-producing wells

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[January 28, 2015]  By Karolin Schaps

LONDON (Reuters) - A local English government council has delayed a decision on whether shale gas firm Cuadrilla can progress with two fracking projects in a test case showing the challenges facing the industry in Britain.

The vote over what could be Britain's first shale-producing wells has been closely watched by the industry and environmental campaigners as it highlights the role local governments can play in deciding whether shale gas has a future in Britain.

The government is determined to create a shale gas boom to ensure these unconventional resources will help stem a decline in North Sea energy reserves and slow Britain's gas import dependence.

Officials at Lancashire County Council in northwest England said last week Cuadrilla's applications should be rejected when the council voted, because the work would be too noisy and create too much traffic.

In response Cuadrilla, chaired by ex-BP boss John Browne, submitted additional documents which councillors have now opened for public consultation for at least 8 weeks, hence deferring their decision.

"The additional information we have provided on further mitigation measures will, we believe, fully address the noise and traffic concerns raised," Cuadrilla said in a statement. "We remain committed to the exploration of shale gas in Lancashire."

Shale gas fracking, in which chemicals and water are blasted at underground rock formations to release trapped gas, has come under fire from environmentalists who are concerned about groundwater contamination and earth tremors.

"The councillors should look again at the mounting evidence of fracking's environmental, health and climate impacts, and put the wellbeing of their communities before the interests of the shale lobby," said Simon Clydesdale, UK energy and climate campaigner at Greenpeace.

Opposition to fracking has been mounting in Britain and earlier this week, the British government fended off proposals from lawmakers to ban shale gas fracking outright, agreeing instead to curb fracking in national parks.

In the U.S, a boom in shale gas production has put the country on the path to energy independence and lowered energy costs for industry and businesses.

(editing by Kate Holton)

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