Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Question 851: To ask the Minister for Communications, Marine and Natural Resources the procurement procedure for buying mineral, petroleum and natural gas rights off the North East Coast of Ireland; and if he will make a statement on the matter. [28478/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

Petroleum resources within the national jurisdiction belong to the State. Exploration for and extraction of these resources are regulated under the Petroleum and Other Minerals Development Act, 1960, and the Licensing Terms for Offshore Oil and Gas Exploration and Development 1992. There are two mechanisms for issuing exploration licences. The first applies to frontier areas which are opened from time to time through licensing rounds in which companies make competitive bids on the basis of exploration-based work programmes, the second applies to more accessible areas for which applications may be made at any time through an 'open door' policy; the north east coast is in this category.

Exploration for and extraction of non-petroleum mineral resources are regulated under the Minerals Development Acts 1940 to 1999. Exclusive prospecting licences are granted under the Acts which allow the holder to explore for specified minerals within a designated licence area. Competitions are held four times a year for recently surrendered prospecting licence areas. Applications can be made at any time for areas where licences have not been held recently or where no licence has been previously held. No prospecting licences are held at present for offshore minerals.

The exclusive right to work all non-petroleum minerals within in the national jurisdiction, with a very small number of exceptions, is vested in the State. All offshore minerals within the national jurisdiction are the property of the State. In the event of a discovery of a commercial deposit, a prospecting licence holder may apply for a state mining lease to extract the minerals, terms for which are negotiated on a case-by-case basis, once the Minister is satisfied with the proposed development.