Dutch Court Orders Production Cut at Part of Groningen Field

A Dutch high court on Tuesday ordered a temporary halt to gas production around Loppersum, in the northern province of Groningen, because of safety concerns from earthquakes.

In a preliminary ruling, the Council of State said it would however not order a complete halt to gas production at the Groningen gas field, as complainants had sought.

Loppersum production was previously capped at 3 billion cubic meters (bcm) for 2015, representing roughly 9 percent of overall production from the Groningen field, Europe's largest.

"For the time being, gas may be extracted in and around Loppersum only if extraction from other locations is no longer possible and if necessary for the security of supply," a court statement said.

Judge Thijs Drupsteen said he was ordering the government's approval of the extraction plan submitted by NAM, a joint venture between Royal Dutch Shell (RYDAF) and Exxon Mobil Corp. 0 to be "partially suspended". The administrative court has jurisdiction over government decisions.

The ruling on Tuesday was preliminary and based on complaints filed by two out of 40 applicants. The cases will be heard in full in mid-September, it said.

"If production were stopped in full, demand for gas from the Netherlands and neighbouring countries could not be met," the judge said.

Reporting by Toby Sterling