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France Constitutional Court Confirms Shale Fracking Ban

France Constitutional Court Confirms Shale Fracking Ban
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Παρ, 11 Οκτωβρίου 2013 - 18:36
France's constitutional court Friday ruled that a law banning hydraulic fracturing to extract shale gas was in line with the country's constitutional law, after a legal challenge by Texan energy company Schuepbach Energy LLC.
France 's constitutional court Friday ruled that a law banning hydraulic fracturing to extract shale gas was in line with the country's constitutional law, after a legal challenge by Texan energy company Schuepbach Energy LLC.

The French constitutional court Friday rejected the arguments raised by Schuepbach Energy, which had sought to explore potential shale gas reserves in the Paris region, that the ban was against entrepreneurship, freedom and ownership.

The court ruled the law was constitutional as it seeks to preserve the environment, referring to the precautionary principle that requires proof that an action doesn't cause harm in the absence of scientific consensus about the risks.

The move underscores the precedence of environmental concerns over economic considerations or lower energy prices, in France .

According to industry estimates, France could harbor Europe 's largest shale gas reserves. In 2011, however, the government banned hydraulic fracturing, or fracking, -- where water, sand and chemicals are injected at high pressure into shale rock to release gas -- due to fears water tables could be polluted.

The ban was a setback for several companies such as Total SA (TOT) and GDF Suez SA (GSZ.FR) that had already obtained licenses to explore some fields.

The energy industry in Europe had fiercely criticized the move as gas prices in the region remain high, while the shale gas revolution in the U.S. has granted companies there a substantial competitive edge.

In a reaction to the latest court verdict, GDF Suez Chairman and Chief Executive Gerard Mestrallet said: "So in fact nothing has changed. We'll continue to work on shale elsewhere, in Poland , in the U.K. , in China , and we'll do nothing in France ," He was speaking on the sidelines of a conference in Brussels .

"Who am I to comment (on) the decision of France 's constitutional court? But I nevertheless have a question now: how can Europe go on with gas prices which are three times higher than that in the U.S. ?" Italy 's ENI SpA (E)Chairman and CEO Paolo Scaroni said, at the same conference. "Shale gas could be part of the solution," he added.

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