STA, 16 August 2022 - The UK energy and natural resources company Ascent Resources and its Slovenian subsidiary have formally submitted a request for arbitration against Slovenia following complications in the country green-lighting their gas project near Lendava. The company has revised its damage assessment from EUR 100 million to over EUR 500 million.

The request was submitted to the Washington-based International Centre for Settlement of Investment Disputes (ICSID), Ascent Resources said in a press release.

The move follows notices of dispute filed in July 2020 and May 2022 in which "Slovenia was formally notified of the existence of a dispute under the Energy Charter Treaty and the UK-Slovenia bilateral investment treaty," the company said.

Ascent Resources CEO Andrew Dennan said the company remained "amenable to discussing settlement with the Republic of Slovenia following its review of the matter or otherwise pursing our damages claim through to a binding result for the company."

Ascent claims Slovenia had led a populist campaign against it, preventing the development of the Petišovci oil and gas field.

The dispute dates back to 2019, when the Environment Agency (ARSO) said an environment impact assessment was required, a decision which was later also backed by the Administrative Court.

Ascent claims that such an environment impact assessment was not required and had never been required under Slovenian law and that the agency's decision went against the conclusion of the country's own expert bodies.

The company also says that the minister of the environment and spatial planning had repeatedly made public statements portraying Ascent, as well as the Petišovci project, in a negative light.

Moreover, the company believes that leaks were made by ARSO to the press. "This further demonstrates that ARSO was biased against the investors and that ARSO's decision was politically motivated."

Moreover, in May changes to the mining act took effect, imposing a complete ban on fracking. Ascent says this was the culmination of the country's campaign against it.

Its board believes that "statements made during the parliamentary debate on the ban leave no doubt that the investors were being specifically targeted by it".

STA, 5 May 2022 - As a blanket ban on hydraulic fracturing in Slovenia entered into force on Thursday, the UK investor Ascent Resources, which is still in dispute with the state over the granting of permit to extract gas by means of fracking in Petišovci (NE), said it remained committed to defending its EUR 50 million investment.

"Ascent Resources and its subsidiary Ascent Slovenia have formally notified the Slovenian government of further breaches under the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty," the company said in a press release published on its website.

It added that the government had been notified that the amendments to the mining act that "specifically prohibit holders of mining rights from carrying out the exploration or exploitation of hydrocarbons with the use of any hydraulic stimulation" had caused further considerable harm to its investment in Slovenia.

Ascent Resources said that it remained committed to defending its investment of over EUR 50 million in Slovenia and that it would "vigorously pursue its damages claim through in international arbitration".

It added that it sincerely hoped that an amicable solution to the dispute could be found and following the failure of earlier negotiations with the government, it welcomes any constructive proposals that compensate it for its losses.

Ascent Resources announced it would initiate arbitration proceedings against Slovenia over the dispute in March 2021 after the state had failed to set forward a damages proposal. The company has estimated damage to be in excess of EUR 100 million.

The announcement came after the Slovenian Environment Agency issued a decision that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo.

STA, 6 April 2022 - The National Assembly has imposed a blanket ban on hydraulic fracturing or fracking as MPs voted 54 in favour and none against to pass the relevant amendments to the mining act on Wednesday.

This was the sixth attempt by the National Assembly to pass such a ban after it failed to endorse similar proposal by the opposition looking to thwart plans by UK investor Ascent Resources to extract gas by means of hydraulic fracturing in Petišovci in the north-east.

The original set of amendments put forward by the government proposed to ban only high volume hydraulic fracturing, but a full ban was added through an amendment tabled by the ruling coalition and endorsed on the committee.

The amendments also define in more detail certain concepts relating to the rehabilitation of mining sites, the regulation of special cases of extension of mining rights and concessions, the introduction of a digital mining register and the transfer spatial planning powers for municipal spatial planning in mining from the Infrastructure Ministry to the Geological Survey.

They introduce solutions for the payment of compensation for the mineral extracted during the rehabilitation of an illegal mine in cases where the mining right and the exploitation concession are terminated before the rehabilitation is carried out, and additionally for the transfer of mining rights if the concessionaire goes bankrupt.

The amendments also improve the scope of regulated professions in the mining sector, define certain offences and add a legal basis for the financing of monitoring and maintenance of permanent cave structures after the closure of coal mines, Infrastructure Ministry State Secretary Aleš Mihelič told MPs last week.

The debate focused on the ban on fracking with the opposition hailing the government's changing its mind about fracking.

The Velenje coal mine welcomed the amendment allowing the concessionaire within the mining area to extend the duration of the mining right without meeting the condition of having the right to carry out mining operations on the entire land subject to the extension of the mining right.

It said it was a step towards meeting the condition for obtaining a concession to mine coal after July 2023 - by which time they have extended the mining right and the concession relationship - or until the end of the mining operation.

"The amendment provides that such concessionaires only enter into legal transactions with landowners immediately before they start developing their land, rather than years or decades before, as in the case of the Velenje coal mine," the mine operator, Premogovnik Velenje, said.

It added that the amendment did not mean that in future landowners would not be involved in deciding what was done to their land.

STA, 12 January 2022 - The government has adopted amendments to the mining act under which low-volume hydraulic fracturing would be allowed but high-volume fracturing banned, legislation that paves the way for fracturing in the only location in Slovenia where it is currently being explored, the Petišovci gas field in the east.

The only permitted type of hydraulic fracturing would be the kind where less than 1,000 m3 of water is injected per fracturing phase, with the total amount of water injected in the entire process capped at 10,000 m3, according to amendments adopted on Tuesday evening.

All compounds used in the process - the injected water is typically mixed with different chemicals to make the process more efficient - would have to be identified and permitted in Slovenia.

The fracturing well would have to be located, constructed and tested for sealing in a manner that would prevent pollutants from leaking.

Fracturing may not result in two water bodies coming into contact, or fluids being mixed in different geological layers. Drilling would have to be done vertically, with a maximum deviation of 10 degrees.

The bill – of which hydraulic fracturing is only a part - was adopted just a day after a rival bill that would have banned hydraulic fracturing altogether was to be discussed on committee.

The ban, proposed by three centre-left parties, is the fifth attempt spearheaded by the Left to introduce a blanket ban on fracking.

Left leader Luka Mesec said today the government bill would allow the UK firm Ascent Resources to continue extracting gas in Petišovci under the pretext that this would only constitute a small-scale operation.

"The government is showing its true face yet again: it does not care about the country, the people or the environment, all it cares about is dirty business," Mesec said.

The government bill was first announced almost exactly a year ago.

STA, 23 March 2021 - The British company Ascent Resources has announced it will initiate arbitration proceedings against Slovenia over the dispute over permits for the extraction of gas by means of hydraulic fracturing in Petišovci (NE), after the state had failed to set forward a damages proposal. The company has estimated damage to be in excess of EUR 100 million.

Claiming that Slovenia is breaching its obligations to the detriment of the company's investments in Slovenia, procedures to start an investor dispute at international arbitration were formally started by Ascent Resources last July.

This could not happen before a three-month period has passed in which the parties would have the opportunity to settle the dispute amicably.

The two sides entered negotiations last October, but the British company said this would not prejudice its rights to pursue its investment treaty claim under the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty.

The deadline for a possible settlement in the direct negotiations had been set for 19 March this year.

The latest announcement from Ascent Resources comes after the State Attorney's Office told the STA last Saturday that Slovenia had rejected an amicable settlement with the company as the deadline for the decision expired on Friday.

The British company said on its website it "intends to initiate arbitration proceedings against the Republic of Slovenia" and "confirms that an amicable settlement is presently not achievable."

It added that as part of direct pre-arbitration settlement discussions, it had "submitted a damages calculation to the state totalling significantly in excess of EUR 100 million."

The Slovenian Environment Agency issued a decision in March that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo. The decision was upheld by the Administrative Court in June this year.

Ascent Resources said in the same release that "it is ultimately expected that the pressure at PG-11A will decline to unsustainable levels without mechanical stimulation (which forms part of the damages claim against the state)."

However, it added that it was pleased PG-11A was currently producing and that it intended to continue production whilst it was possible to do so.

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STA, 18 March 2021 - The newspaper Delo reported unofficially on Thursday that Slovenia was not to accept a settlement with the British company Ascent Resources over the dispute over permits for the extraction of gas by means of hydraulic fracturing in the north-east of the country.

The two sides entered negotiations last October, but the British company said this would not prejudice its rights to pursue its investment treaty claim under the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty.

Claiming that Slovenia is breaching its obligations to the detriment of the company's investments in Slovenia, Ascent Resources formally begun procedures to start an investor dispute at international arbitration.

According to Delo, the deadline for Slovenia to announce its decision runs out on Friday, and the State Attorney's Office told the newspaper that Slovenia would inform the other party about its viewpoint within the agreed time.

"Since the negotiations about a possible solution of the dispute with a mutual agreement are still confidential, we are not able to provide more information," it added.

The negotiations are being held as a damages lawsuit by Ascent Resources is looming, with the company, according to Delo, expected to demand EUR 120 million in compensation.

The company alleges that through Slovenia's violation of its obligations under the two treaties, it has sustained considerable harm, as it has invested more than EUR 50 million in the development of the Petišovci oil and gas field.

The Slovenian Environment Agency issued a decision in March that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo. The decision was upheld by the Administrative Court in June this year.

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STA, 9 January 2020 - The government has drafted mining act changes, under which high-volume fracking would be prohibited in Slovenia. The changes also lay down conditions for low-volume fracking. This comes after several unsuccessful attempts by opposition parties to ban fracking altogether.

The changes draw the limit between low-volume and high-volume fracking at 1,000 cubic metres of water per fracking phase or 10,000 cubic meters per entire fracking procedure.

While high-volume fracking would be banned, low-volume fracking would be allowed under several conditions, including that all ingredients in the fracking fluid and proppants must be known and approved for use in Slovenia.

Moreover, there can be no surface outflow of pollutants and they must not pollute the soil, water or air. Pollutants on the surface must be handled according to relevant rules, and must not contaminate underground water.

What is more, fracking must not come into contact with an aquifer and must not cause damage to other activities near the drilling wells.

Answering a question from the opposition earlier this week, Infrastructure Minister Jernej Vrtovec said that the changes "are substantially more restrictive than the provisions proposed by the European Commission," because the latter does not find low-volume fracking dangerous and does not regulate it.

"The technological method, just like any dangerous technological in the industry, will be safe for the people, the environment and nature," Vrtovec said in written answer to SocDems MP Dejan Židan.

The changes were put up for public consultation by the Infrastructure Ministry two weeks ago and stakeholders have until 22 January to comment.

The British company Ascent has been trying for years to get approval for fracking in Petišovci, NE, while left-leaning parties have attempted to get fracking banned three times.

STA, 20 November 2020 - A renewed attempt by the opposition to ban the extraction of natural gas through hydraulic fracturing in Slovenia, was rejected in a 39:40 vote in parliament on Friday. While some coalition members agree with a ban, they want to wait for what was described as comprehensive solution being drawn up by the Infrastructure Ministry.

While the first motion to amend the mining act with a ban on what is also known as fracking, tabled by the opposition Left, was rejected at committee level last month, the renewed attempt, coming from the four left-leaning opposition parties, was rendered unfit for further reading at Friday's plenary.

Thursday's discussion saw the Left's Nataša Sukič highlight the dispute with British company Ascent Resources, which she said has been pushing to introduce fracking at the Petišovci gas field in the north-east of Slovenia for decades.

Ascent Resources has begun procedures for an investor dispute against Slovenia over the decision of Slovenian authorities that an environmental impact assessment is needed before any permits can be issued for hydraulic fracturing.

While Sukič spoke of a "dirty technology that is also proving abroad as destructive for the environment and the health of local populations", the government disagrees with the proposed changes, which also stipulate that already issued permits and mining rights and applications for them would need to be "coordinated" with the ban as well.

Infrastructure Ministry State Secretary Blaž Košorok argued that the motion was not worded appropriately and did not take into account the consequences of interference with obtained rights to use hydraulic fracturing to extract hydrocarbons, for which an environmental impact assessment needs to be conducted.

Franci Kepa of the senior coalition Democrats (SDS) said strategies needed to be thought through carefully also because of responsibilities toward potential investors in this field.

"The Infrastructure Ministry has been drawing up changes to the mining act for some time...It is not good to change the act just because of a single issue; instead, a comprehensive and complex approach is necessary," Kepa said.

A similar view was taken by other coalition parties, although the Pensioners' Party (DeSUS) and the Modern Centre Party (SMC) expressed support for a ban in principle, while Mihael Prevc of New Slovenia (NSi) argued hydraulic fracturing should be discussed by experts and not politics.

Gregor Perič of the SMC spoke of "a strange case of amnesia" on the part of those forgetting that the mining act and Slovenia's mining strategy consider hydrocarbons as resources of strategic importance. He added the changes proposed by the opposition brought more questions than answers.

All opposition parties begged to differ, rejecting the systemic or comprehensive solution argument and highlighting the right of the inhabitants of Petišovci to live in a healthy environment.

"We find it nonsensical for such a good legislative proposal to be rejected merely on the basis of the excuse we are waiting for a systemic of comprehensive solution," Soniboj Knežak of the SocDems said.

"The company wanting to frack in Petišovci comes from the UK, where fracking is banned. It has also been banned in France, Germany, Ireland as well as Bulgaria, and it is high time that this invasive and dangerous method...also be banned in Slovenia," Knežak added.

STA, 22 October 2020 - British company Ascent Resources has entered into direct negotiations with Slovenia in a bid to potentially settle the dispute over permits for the extraction of gas in the north-east of the country.

In an announcement made in a filing with the London Stock Exchange, Ascent Resources says the negotiations will be carried out on a strictly confidential basis.

The company says the negotiations will not prejudice its rights to pursue its investment treaty claim under the UK - Slovenia bilateral investment treaty and the Energy Charter Treaty.

Claiming that Slovenia is breaching its obligations under the two treaties to the detriment of the company's investments in Slovenia, Ascent Resources has formally begun procedures to start an investor dispute against Slovenia at international arbitration.

The request for arbitration cannot be entered after the expiry of a three-month period in which the parties can try to solve the dispute amicably.

According to explanations recently provided by the Slovenian State Attorney's office, request for arbitration can be filed after 23 October unless the dispute has been resolved by then. This is because the official notification on the existence of the dispute was handed to Slovenia on 23 July.

The company alleges that through Slovenia's violation of its obligations under the two treaties, it has sustained considerable harm, considering it has invested more than EUR 50 million in the development of the Petišovci oil and gas field.

The Slovenian Environment Agency issued a decision in March that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo. The decision was upheld by the Administrative Court in June this year.

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STA, 9 September 2020 - The UK-based company Ascent Resources has formally begun procedures to start an investor dispute against Slovenia at international arbitration for taking measures to protect its groundwater from fracking, the NGO Friends of the Earth has announced.

On its website, the NGO released a letter addressed to Prime Minister Janez Janša, Foreign Minister Anže Logar and Environment Minister Andrej Vizjak on 23 July by the London law firm Enyo Law, which says it represents Ascent.

In the letter Ascent formally notifies the existence of the dispute, while also expressing willingness for negotiation in "hope that an amicable solution can be found to the present dispute".

The letter alleges actions by Slovenia in breach of its obligations under the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty, which it alleges caused considerable harm to the investors' investments in Slovenia.

They say the investors have invested sums in excess of EUR 50 million in the development of the Petišovci oil and gas field.

Enyo Law alleges that the Environment Agency (ARSO) has missed deadlines in issuing its decision on the application for a screening assessment, and that its decision that an environmental impact assessment was required was at odds with with opinions issued by other Slovenian government authorities and institutions.

"The ARSO decision was not based on the recommendations of Slovenia's own experts and, furthermore, it contradicted the opinions they gave. It is therefore manifestly arbitrary and unreasonable," reads the letter.

The law firm also says that while the procedure at ARSO was ongoing, the Slovenian minister of the environment and spatial planning repeatedly made public statements portraying Ascent and the Petišovci project in a negative light, and that leaks were made by ARSO to the press.

The letter says that this "further demonstrates that ARSO was biased against the investor and that the ARSO decision was politically motivated".

With the letter, investors formally consent to submit their investment dispute with Slovenia to international arbitration, which is considered a formal notification of the existence of the dispute.

"We sincerely hope that an amicable solution can be found to the present dispute, and will welcome any constructive proposals you may have," reads the letter, adding that Ascent is "ready to engage at a senior level" with the Slovenian government.

Friends of the Earth note that several EU countries have banned or introduced moratoria on fracking, including Austria, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, France, Germany, Ireland, Italy, Lithuania, Luxembourg, Netherlands, Spain, Slovakia, and Sweden.

ARSO issued a decision in March that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci in the north-east of the country by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo. The decision was upheld by the Administrative Court in June this year.

In 2018 the then Environment Minister Jure Leben ordered internal oversight at ARSO, which found pressure and threats had been exerted on the agency's work and that its independence had been undermined. The findings cost the then director of ARSO Joško Knez his job.

Incumbent Minister Andrej Vizjak has also said that he is not in favour of fracking.

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