In an effort to persuade communities of the benefits of fracking, the process of extracting gas by the hydraulic fracturing of rock using high pressure liquid, firms will offer £100,000 of benefits for each exploratory well.
Mr Cameron said:
"Companies have agreed to pay £100,000 to every community situated near an exploratory well... If shale gas is then extracted, 1% - perhaps as much as £10 million - will go straight back to residents."
He also claimed a thriving shale-gas industry could create tens of thousands of jobs.
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