Written answers

Wednesday, 14 September 2011

Department of Communications, Energy and Natural Resources

Energy Resources

9:00 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 501: To ask the Minister for Communications, Energy and Natural Resources if the CER consultation paper on high level design of the petroleum safety framework CER/11/137, is aimed at creating a safety framework exclusively for the existing petroleum industry, both onshore and offshore; and if it is not, the reason it does not cover unconventional methods such as hydraulic fracturing; and if he will make a statement on the matter. [23979/11]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The Petroleum (Exploration and Extraction) Safety Act 2010 confers statutory responsibility for the safety of petroleum exploration and production on the Commission for Energy Regulation (CER). Petroleum is defined for this purpose to include both oil and gas. CER is currently developing the associated safety framework. The 2010 Act extends the CER's safety remit to all upstream, or unprocessed gas and oil undertakings.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 502: To ask the Minister for Communications, Energy and Natural Resources in view of the recent granting of licensing options in the northwest carboniferous basin, in which local persons have developed concerns that consequent production may involve hydraulic fracturing if these companies are granted petroleum leases in the future, will he permit hydraulic fracturing in these regions; and in view of the fact that a company (details supplied) has submitted an application for the Dowra gas find in the onshore north west carboniferous basin, the area in which the company intends to drill for this gas; the location at which this gas will be refined; and if he will make a statement on the matter. [23980/11]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Earlier this year, my Department granted an onshore Licensing Option to Tamboran Resources PTY Ltd over parts of Cavan Leitrim and Sligo. The Licensing Option is for a two year period from March 2011 to end February 2013.

This Licensing Option is designed to allow the company to assess the natural gas potential of the acreage, largely based on desktop studies of existing seismic and well data. The company will also undertake a preliminary environmental baseline/impact assessment and engage with the local authorities and other statutory agencies as required. This work is largely office/desktop based and does not involve exploration drilling or hydraulic fracturing.

By the end of the Option period in February 2013, the company will have to decide whether to apply for a follow-on exploration licence or relinquish their acreage. In the event that the company decides to apply for an exploration licence that proposes hydraulic fracturing, the application would have to be set out in detail and be supported by an environmental impact statement.

My Department would then undertake a full assessment of the application, including an environmental impact assessment and public consultation. My Department would also consult with other relevant statutory authorities such as the EPA, NPWS, Local Authorities etc, in reaching any decision.

However, at this stage in the Licensing Option, it is much too early to conclude whether or not this authorisation will proceed to the exploration licence stage let alone to anticipate a commercial discovery that would potentially lead to a petroleum production project.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 503: To ask the Minister for Communications, Energy and Natural Resources the stage of the Bandon, Slyne Basin assessment; the quantity of oil the authorisation holder estimates there to be; and when he expects the authorisation holder to make a declaration of commerciality or relinquish the licence. [23981/11]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Frontier Exploration Licence 1/06 was awarded to Serica Energy (UK) Ltd in December 2006 for a period of 15 years. The licence is situated in the Slyne Basin off the west coast and is divided into four phases of three, two, five and five years. Each phase of the licence is subject to a work programme to be agreed with my Department. A commitment to drill an exploration well is required to progress to the second phase of a frontier exploration licence.

In 2009, during the first phase of the licence the company drilled an exploration well to test the Brandon gas prospect. Although no gas was found, the company encountered an oil accumulation. Further detailed evaluation is required in order to assess the extent of the discovery and to determine whether the accumulation can be progressed to commercial development. This work is continuing.

Regarding relinquishment, the company must surrender 50% of the acreage held at the end of the second phase in November 2011 unless the third phase work programme includes a commitment to drill a second exploration well. The company will be required to surrender the licence at the end of the third phase unless a second exploration well has been commenced by that date.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 504: To ask the Minister for Communications, Energy and Natural Resources in view of the fact that the oil at Hook Head, North Celtic Sea Basin was initially identified in 1971, the reason it is still under assessment; the volume of oil the company estimates there to be; at what stage is this assessment; and when does he expect the authorisation holder to make a declaration of commerciality or relinquish the licence. [23982/11]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Petroleum was identified in the Hook Head prospect in 1971 by Marathon. While this resulted in the granting of a petroleum lease, it did not lead to a development and the lease was relinquished in 1992. The acreage has been subject to further exploration authorisations on a number of occasions since then, none of which has resulted in a commercial discovery being made.

The current authorisation over the area, a standard exploration licence, was granted in 2007 to a consortium with Providence Resources Plc as operator. This exploration licence is for a six year period from February 2007 to January 2013, divided into two phases of three years each. Under such a licence the holders are required to drill one exploration licence in the first phase of the licence.

Since being granted the licence in 2007 the holders have drilled two wells and are at present planning a further appraisal well in the Hook Head prospect in order to complete their assessment of its potential. The licence holders relinquished 70% of the acreage initially held under the licence on entering phase two on 1 February 2010.

The holders have until January 2013 to relinquish the licence or apply for a petroleum lease to produce petroleum, or a lease undertaking in order to be granted a petroleum lease.

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