CANATXX Gas Storage Rejected

The Government has rejected controversial plans for a huge gas storage scheme in underground caverns below the Wyre Estuary at Preesall near Fleetwood on the Lancashire coast.

The proposals, by North American energy company Canatxx, were opposed by the county council, Wyre Borough Council and local residents on health and safety grounds as well as the environmental impact of the scheme.

The project was the subject of a recovered appeal inquiry held last year.

In her decision letter Communities Secretary Hazel Blears agreed with the inspector and technical assessor who held the inquiry and recommended the project should not be allowed.

Blear's letter said the proposals weren't compliant with the development plan or national planning policies in a number of respects. "These include lack of robust geological modelling, inadequate understanding of risk, visual harm, the proposed means of access to the proposal and uncertainty regarding noise impact," she said.

The minister said she had taken into account the benefits of the proposal in helping to meet the need for underground gas storage facilities and the marginal economic benefit but concluded "there are no material considerations of sufficient weight to indicate that she should determine the application other than in accordance with the development plan".

A spokesman for Canatxx said the company was "disappointed and surprised" at the inspector's report and Blear's decision letter.