People living in villages around Third Energy’s Kirby Misperton site are to be surveyed next month on how they think a fracking fund should be spent.
The £100,000 fund has been set up under a voluntary industry scheme by Third Energy, which is preparing to frack its KM8 well in Kirby Misperton.
The fund will be open to groups and charities in Kirby Misperton, Great and Little Habton, Great and Little Barugh and the area around the Beansheaf Hotel.
But the criteria specifically prevent money going to groups opposed to fracking and hydrocarbon production. Among the projects that cannot be funded are:
“Activities contrary to the best interests of the Donor [Third Energy] or of any of its Affiliates.”
The criteria also exclude funding for: animals; advancement of religion; foreign trips; curriculum activities for schools, colleges or universities; groups controlled by local authorities. Individual grants are expected to be in the range of £200-£10,000.
The fund becomes available when Third Energy receives hydraulic fracturing consent for the KM8 from the Secretary of State for Business, Energy and Industrial Strategy.
The company has said it expects consent to be imminent and fracking to be completed before the end of the year.
The money will be distributed by the Two Ridings Community Foundation, a local fund administrator, when the first of five fracks start.
Two Ridings said yesterday it would be carrying out a survey of what local people think should be the priorities. It would also set up a local panel to advise on how the money should be spent.
Chief executive, Jan Garrill, said:
“We are very pleased to have signed the agreement setting up this new fund.
“We will shortly begin the work to set up the Kirby Misperton Community Fund which will include a survey to establish local priorities and the recruitment of a panel to advise on the distribution of funds.”
The Two Ridings Foundation website said:
“Local knowledge is invaluable in contributing to decisions no how funds are best used to enhance the local area of benefit.”
According to the website, the panel would comprise representatives of the parish council and community. Individuals “may be invited at the discretion of Two Ridings Community Foundation for their relevant local knowledge and experience.”
Two Ridings said the fund was linked to the exploration and appraisal phrase of fracking at Kirby Misperton. It expected the money would be allocated during 2018. The website added:
“If, after this phase, the Energy Company decides to carry out further hydraulic fracturing that leads to commercial production, a new community fund arrangement will be set up. In this revenue phase the Fund will be based on a contribution from Third Energy of the equivalent of 1% of production revenues (before Third Energy has accounted for costs). “
Rasik Valand, chief executive of Third Energy, said
“With our test fracs at Kirby Misperton imminent, this Fund is recognition of the role that residents in the Kirby Misperton area have hosting these operations in their community.
“We look forward to learning how the grants will benefit the local community.”