Fearing a claim for damages, the Ministry of Economic Affairs has renewed an expired permit to search for gas in Utrecht. This is the conclusion of activists from Woerden from government documents they have requested.
They are concerned about future gas extraction under and around their hometown by the Canadian mining company Vermilion. There is one of the hundreds of small gas fields in the Netherlands.
According to the campaign group Laat Woerden niet Zakken, Vermilion is becoming increasingly powerful and the company is financially vulnerable. They tried to find out more about this by appealing to the Government Information (Public Access) Act. After the NAM, permit holder of the Groningveld, Vermilion is the largest gas extraction company in the Netherlands.
Does not fit in the sustainability agenda
The province of Utrecht is also strongly against gas extraction. “New extractions are not in line with the provincial ambition to meet the demand for heat in a completely sustainable way by 2040”, says Utrecht. The province also finds the decision to proceed with an extension insufficiently substantiated.
That so-called exploration license expired in 2018. The extension requested by Vermilion has now been approved by the ministry. The documents state that “at a higher level in EZK (the ministry, ed.) There is some reserve about the extension”.
But, it is said, by not renewing the State will receive less income, because of missing out on taxes and payments and the right to a share of the profit. It is calculated what a possible claim will cost the state, depending on the amount of gas present.
Gas needed until 2050
According to Vermilion spokesman Hidde Baars, there are no imminent damage claims. He does point out, however, that the gas from the small fields will still be needed for the energy supply of the Netherlands until 2050.
“The Ministry of Economic Affairs also sees this importance. It would therefore be strange if permits were not renewed,” said Baars. He points out that searching for gas costs a lot of money.
Administrative reliability
The extension of the permit is against the sore leg of residents of Woerden. They have been campaigning against the proposed gas extraction for years. They fear damage to their homes and loss of value due to gas extraction. Moreover, this weakens support for the energy transition, they argue.
“The fear of claims by Vermilion and loss of income for the State appears to be of greater importance to the Ministry of Economic Affairs and Climate Policy than the administrative reliability and political agreements to phase out gas extraction,” says Leo Sonneveld of the campaign group Laat Woerden Niet Zakken.
He is referring to the agreement in the coalition agreement not to issue new exploration permits for gas fields. Because this contract had already expired, there is a new permit, according to Sonneveld.
Smaller risks than Groningen
The State Supervision of Mines (SSM) does not consider the risks of damage above small gas fields comparable to Groningen. The Groningen field is much larger than those small fields. There, the maximum magnitude is calculated at 5.
In small fields there is a very small risk of a quake of a maximum of 3.8, according to SSM. This depends, among other things, on the size of a field.
In addition, NAM has promised to stop gas extraction if a quake above a magnitude of 3 occurs. Vermilion also says in a response to quakes of 3 to stop gas extraction. The only quake that Vermilion has had to deal with so far is one of 2.8 in 2009 in the Frisian De Hoeve.
Less deep than Groningen
According to Sonneveld, Vermilion takes insufficient account of the depth of the field. Where in Groningen the quakes are 3 km deep, the field in Woerden is much closer to ground level at about 1.6 km. As a result, the vibrations and potential damage, according to Sonneveld, are much greater.
Geologist Peter van der Gaag, who has been researching gas extraction in Groningen for years, confirms the SSM lecture. According to him, the risk in Woerden is “very low”. He points out that the magnitude of a quake is related to the surface that will move, which is relatively small in Woerden.
The province of Utrecht and several municipalities as well as the Laat Woerden Niet Zakken foundation have objected to the extension of the exploration permit. The Ministry of Economic Affairs has not yet responded to the accusation of the Woerden action group.
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