The government is proposing to bribe communities with cheaper energy bills in exchange for dropping opposition to local fracking projects as part of plans to push ahead with shale-gas extraction . Several options to cajole rural England to accept the contentious drilling schemes are being discussed as ministers prepare to announce that the UK 's shale-gas reserves are much larger than previously estimated . Fracking , an extraction technique that involves pumping water , sand and chemicals at high pressure into shale rock to release trapped pockets of oil and gas , has transformed the US energy market , triggering a production boom that pushed gas prices to 10-year lows last year . Environmentalists worry that the process can pollute ground water and cause emissions of methane , a potent greenhouse gas . The government 's paper on `` community benefits '' will propose policies that aim to persuade locals to drop their resistance to fracking in northwest and southeast England , where the largest shale-gas deposits are found . The biggest incentive being discussed by the coalition is cheaper household energy bills for people in the area , according to those familiar with the discussions . Neighbourhoods could also be offered funding for new sports clubs or community centres and other projects to improve local amenities . The House of Commons energy select committee said on Friday that communities affected by shale-gas projects `` should expect to receive , and share in , some of the benefits of development '' . It suggested that local authorities hosting shale ventures should also be allowed to retain business rates . The system would be similar to the `` planning gain '' whereby councils that give planning permission to property developments can force the developer to pay for certain infrastructure improvements , such as roads and schools . A separate paper will make a similar proposal for new wind farms . The government could still face big protests against fracking sites , reminiscent of the widespread grassroots Tory hostility to onshore wind turbines and to the HS2 high-speed railway . One Conservative MP , Laura Sandys , has said that planning applications for shale-gas drilling will `` make onshore wind farms look like a walk in the park '' . Britain 's only fracking operation , by Cuadrilla Resources near Blackpool , was suspended after two minor earthquakes in 2011 . It was allowed to resume last December . Last year , the government commissioned the British Geological Survey to produce a new estimate of Britain 's shale-gas reserves , which is understood to show that they are much larger than previously thought .
Ministers prepare to announce UK 's shale-gas reserves are much larger than previously estimated . Britain 's only fracking operation was suspended after two minor earthquakes in 2011 . Fracking is extraction of gas and oil by pumping water at high pressure into shale rock .