Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 281: To ask the Minister for Communications, Energy and Natural Resources the steps he is taking to ensure that gas exploration in the Upper Shannon catchment area is properly monitored for dangers in view of the exploration methods, particularly fracking, and that granting of licences should be conditional on the safest practices with regard to health and environment and his views on the present position as it applies to exploration in this area. [19552/11]

Pat Rabbitte (Dublin South West, Labour)
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I can inform the Deputy that my Department has not licensed hydraulic fracturing in the Upper Shannon catchment area. In February of this year, following an open competition, my Department awarded two year onshore Petroleum Licensing Options to two companies over parts of the North West Carboniferous or Lough Allen Basin. The Licensing Options are designed to allow the companies assess the natural gas potential of the acreage largely based on desktop studies of existing data from previous petroleum exploration activity. This potential had been identified in earlier exploration, but was not considered commercially viable at that time. The Licensing Options specifically exclude exploration drilling but shallow geological sampling is permitted.

Exploration activity under these authorisations is at an early stage and there is no certainty that it will lead to an application for a follow-on exploration licences that would be required before exploration wells could be drilled. In the event that hydraulic fracturing was envisaged as part of a possible future exploration or production programme, then that activity would be subject an environmental impact assessment, including an appropriate public consultation phase.

My Department requires drilling operators to comply with best international practice when carrying out drilling operations both on and offshore Ireland. This includes verification that all equipment, systems and procedures are in place to allow operations to proceed safely and without polluting the environment.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 282: To ask the Minister for Communications, Energy and Natural Resources his plans to put a moratorium in place on the issuing of further licences to explore for hydrocarbons in Irish waters to afford the relevant Oireachtas committee time to examine the terms of exploration in Irish waters and make recommendations on same; and if he will make a statement on the matter. [19616/11]

Pat Rabbitte (Dublin South West, Labour)
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Ireland's fiscal and non fiscal licensing terms for oil and gas exploration and production were last reviewed in 2007. The review, which was underpinned by independent economic analysis, considered the appropriateness of Ireland's licensing terms in comparison to other European countries that Ireland competes with for exploration investment. The outcome of that review was the introduction of a profit resource rent tax of up to 15% on top of the 25% corporation tax rate that already applies. The revised terms apply to exploration licences issued since 1st January 2007.

While I will keep the licensing terms under review in light of relevant future developments, at this juncture I believe that my Department's focus should be on attracting a larger share of international exploration investment, to Ireland to increase the chances of new commercial discoveries being made. I would of course be happy to engage with any Oireachtas Committee that might decide to consider this issue. However, at this stage I have no plans for a moratorium on the issuing of petroleum exploration licences.