Energy group Ineos AG has applied to launch a legal challenge to the Scottish government's ban on onshore unconventional oil and gas development in Scotland, known as fracking, arguing the ban was imposed unlawfully.
Scotland decided to outlaw fracking in October after a public consultation found overwhelming opposition to the practice.
However, Ineos said that decision flew in the face of other expert reports which concluded that shale gas could be produced safely and has applied for a judicial review.
The application will be heard at the Court of Session, Scotland's supreme civil court.
"The [Scottish government's] decision in October was a major blow to Scottish science and its engineering industry, as well as being financially costly to Ineos, other businesses and indeed the nation as a whole," said Tom Pickering, operations director at Ineos Shale.
Ineos said it had concerns about the legitimacy of the ban and alleged serious errors in the decision-making process, adding there had been a failure to adhere to proper statutory process and a misuse of ministerial power.
There was no immediate comment from the Scottish government.
Scotland imposed a moratorium on fracking in 2015. That decision was extended last autumn after a large survey of public opinion, in which 60,000 people took part, found 99% opposed fracking.
However expert opinion consulted as part of the government's report also found that the regulatory framework was "largely in place" to control the potential environmental impacts.
Ineos said that, having attracted investment for fracking, the ban would mean the Scottish government had to compensate the companies concerned.
"If Scotland wants to continue to be considered as a serious place to do business, then it cannot simply remove the policy support that attracted that investment in the first place without proper procedures being followed and without the offer of appropriate financial compensation," Pickering said.
Supporters of fracking say it could offset the decline in North Sea oil reserves and boost the Scottish economy.
Britain is estimated to have substantial amounts of shale gas trapped in underground rocks but despite support from the central government in London, progress has been slow as environmentalists and local communities lobby against fracking.
Recommended Reading
Enbridge Advances Expansion of Permian’s Gray Oak Pipeline
2024-02-13 - In its fourth-quarter earnings call, Enbridge also said the Mainline pipeline system tolling agreement is awaiting regulatory approval from a Canadian regulatory agency.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.