Written answers

Tuesday, 30 May 2006

Department of Communications, Energy and Natural Resources

Energy Resources

8:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 148: To ask the Minister for Communications, Marine and Natural Resources if he has in mind a set of procedures to develop and deliver rapidly and efficiently, oil, gas or other mineral discoveries with a view to maximisation of benefit to the economy and the Exchequer; and if he will make a statement on the matter. [20725/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 319: To ask the Minister for Communications, Marine and Natural Resources if he has in mind a set of procedures to develop and deliver rapidly and efficiently, oil, gas or other mineral discoveries with a view to maximisation of benefit to the economy and the Exchequer; and if he will make a statement on the matter. [20803/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 148 and 319 together.

There are already procedures in place for developing and delivering oil and gas discoveries. It must be understood that the area of developing oil and gas fields is a very complex area and is dependent on factors such as the location of the discovery and whether the discovery is oil or gas. Issues such as existing infrastructure in the area and the environment of the area will have a major influence on how development takes place. For example, the Seven Heads Gas field off the south coast was developed using the existing facilities available at the Kinsale gas field. On the other hand, in the case of the Corrib Gas field off the west coast, there was no existing infrastructure and new infrastructure has to be developed.

It should be pointed out that there would be no discoveries without exploration taking place first. It is therefore the Government's policy to actively encourage petroleum exploration. This is done through both the licensing terms and fiscal and taxation terms on offer for the exploration and development of oil and gas offshore and onshore Ireland. These terms are available to licensees in Frontier areas through Licensing Rounds such as the recent Slyne/Erris/Donegal Licensing Round.

There is also an 'open door' policy in respect of non-frontier areas whereby companies may apply for authorisations in these areas at any time. It is hoped that such exploration will lead to the discovery and development of new oil and gas resources and reduce Ireland's present high level of dependency on imported energy.

It is Government policy that mineral development be undertaken in an environmentally responsible fashion by private enterprise, under Lease or Licence from the State. By providing employment in rural areas and by direct contribution to the State through royalties and taxes, minerals development contributes to the local and National economy. A new Minerals Development Bill is currently being prepared to consolidate and update the Minerals Development Acts, 1940 to 1999. This Bill, if enacted, will streamline procedures for permitting exploration for and development of mineral deposits. I hope to obtain Government approval shortly for the General Scheme of the Bill to be drafted and introduced in the Oireachtas as soon as possible.

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