George Osborne's father-in-law has apologised after telling a shocked House of Lords fracking should happen in the North East because it is filled with "desolate areas".
Lord Howell of Guildford, whose daughter Frances is married to the Chancellor, claimed the controversial form of gas production could take place in the North East without any impact on the surrounding environment.
Environmental campaigners called the declaration "jaw-dropping" and Labour claimed it was further proof that the Tories are "out of touch" with ordinary Britons.
The Tory peer, who was energy secretary under Margaret Thatcher, argued that the same approach on fracking should not be taken in all regions.
"Would you accept that it could be a mistake to think of and discuss fracking in terms of the whole of the United Kingdom in one go?," he said at Lords Questions.
"I mean there obviously are, in beautiful natural areas, worries about not just the drilling and the fracking, which I think are exaggerated, but about the trucks, and the delivery, and the roads, and the disturbance, and those about justified worries."
He added: "But there are large and uninhabited and desolate areas, certainly in part of the North East where there's plenty of room for fracking, well away from anybody's residence where we could conduct without any kind of threat to the rural environment."
Anti-fracking protesters in Balcombe, West Sussex, on Tuesday Despite the wave of stunned exclamations from peers, he continued unperturbed.
Turning to Energy Minister Baroness Verma, he asked: "So would you agree with me, that the distinction should be made between one area and another, rather than lump them all together?
"And if we can push ahead with this kind of gas production, then obviously it takes us fast away from the kind of coal-burning, which is increasing at the moment because of delays in authorising gas production."
Lord Howell later issued a statement apologising for "any offence caused" and insisted he did not believe the North East was "desolate".
"There are parts of the country that are less densely inhabited than others," he said.
"That includes parts of the North East but also other areas in the south of England as well.
"The shale gas industry should be encouraged to develop in a sustainable way where it is appropriate to do so and in way that ensures communities benefit, which could be in many different parts of country."
His comments came as protesters demonstrated for a sixth day at a rural site earmarked for exploratory oil drilling in Balcombe, West Sussex.
Lord Howell was a minister in the Foreign Office responsible for international energy policy from 2010 and 2012 and energy secretary from 1979 to 1981 under Margaret Thatcher.
George Osborne with wife Frances, Lord Howell's daughter Labour's Baroness Farrington of Ribbleton was among those to speak out against his comments.
She said: "I declare an interest as a resident of Lancashire, who is aware of the enormous beauty of the Trough of Bowland.
"Would you, Minister, join with me in condemning the alleged remarks of protesters in the south of England, that all the fracking could be done in the north of England?
"And will you join with me in insisting that the beauty of Lancashire is as important, not more but as important, as the beauties surrounding, for example, Guildford?"
Baroness Verma agreed with Lord Howell that some areas of landscape would not be suitable for fracking and said he had made "some very important points".
Addressing Baroness Farrington, she added: "I'm sure that my noble friend did not say that Lancashire was (not) as beautiful. All parts of this great country are beautiful."
A Government spokesman later added: "Lord Howell is not a minister and does not speak for the Government. He has not been a Government adviser since April 2013."
James Wharton, the Tory MP for Stockton South, added: "I think his comments about the North East are foolish and ill-informed."
Tony Bosworth from Friends of the Earth said: "The Government's ill-conceived fracking plans aren't something that can be quietly brushed under the carpet 'up north' - as the villages resisting the drillers in the Tory heartlands of England's south show.
"It's time to pull the plug on the UK's dirty fossil fuel addiction and develop clean energy that won't cost people all over England their green and pleasant land."
Fracking involves drilling holes deep into the ground and then using high-pressure liquid to fracture shale rocks to release gas trapped inside.
Mr Osborne has said it has "huge potential" and plans for major tax breaks for shale gas income were unveiled earlier this month, to the fury of environmental campaigners.
They claim investment in the industry will distract from moves to develop renewable energy sources and also fear fracking could pollute water supplies and blight the countryside.
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