A petition for judicial review has been lodged by Ineos Shale alongside its co-venture partner, Reach, on the government's decision in October to 'effectively ban' onshore unconventional oil and gas extraction in Scotland.
Ineos said it believes there were "very serious errors" in the decision-making process, including a failure to adhere to proper statutory process and a misuse of Ministerial power.
Tom Pickering, Operations Director at Ineos Shale, said the decision was a "major blow" to Scottish science and its engineering industry.
"It also removed at a stroke the potential for the country in these uncertain times to secure its own indigenous energy supply," he said.
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"We have serious concerns about the legitimacy of the ban and have therefore applied to the Court to ask that it review the competency of the decision to introduce it."
Ineos said as a result of the ban, Scotland will miss out on an estimated £1 billion to be generated for local communities, as well as the creation of around 3,100 jobs.
Defending the decision, Energy Minister Paul Wheelhouse said the Government has taken a "careful and considered approach" on its preferred policy on unconventional oil and gas in Scotland.
"The Scottish government's position was endorsed by the Scottish Parliament in October, subject to completion of a strategic environmental assessment, and follows detailed assessment of the evidence and consultation with the public," he said.
However, Mr Pickering concluded: "INEOS, Reach and other operators have invested significantly in unconventional development over the years, against a supportive regulatory and planning backdrop.
"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.
"In the light of these failings, INEOS has been left with no option other than to raise this legal challenge."
(LM)
