Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources the extent to which commercial or promising oil, gas or other mineral finds have been located on or off shore in each of the past five years to date; the licensing regime and terms under which any such discoveries will fall with particular reference to benefit accruing to the Irish economy in the event of a major commercial discovery; the extent to which preparations are in hand to bring product to the consumer for home or export use; and if he will make a statement on the matter. [43722/12]

Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources arising from any discoveries of oil, gas or other minerals in the past five years, if provision has been put in place to ensure a greater return to the Irish taxpayer than previously; the extent to which such discoveries are likely to positively impact on the economy in the short and medium term; and if he will make a statement on the matter. [44019/12]

Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources the full extent of commercially viable oil, gas or other mineral discoveries over the past twenty years which have been fully developed and commercialised; the extent of any such discoveries remaining undeveloped for whatever reason; and if he will make a statement on the matter. [44020/12]

Fergus O'Dowd (Louth, Fine Gael)
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I propose to take Questions Nos. 28, 121 and 122 together.

There have been no new commercial discoveries of oil or gas either onshore or offshore Ireland in the past five years. There have, however, been four discoveries in the Irish offshore during this time, namely the Hook Head and Barryroe oil discoveries in the Celtic sea, the Bandon oil discovery in the Slyne basin and the Schull gas discovery in the Celtic sea. None of these discoveries has been declared commercial to date and tests are ongoing in order to determine if any of them can be declared commercial.

All of these discoveries, other than the Barryroe discovery, were made pursuant to licences granted under the 1992 Licensing Terms, the Barryroe discovery was made pursuant to a licence granted under the 2007 licensing Terms. The Licensing Terms provide inter alia for a Corporation tax on profits which is set down in the Finance Acts. A basic tax rate of 25% applies to profits from oil and gas production. Following a review of the fiscal terms in 2007 the terms were revised to provide for a higher tax rate of up to 40% in the case of more profitable fields. The revised terms apply to all discoveries pursuant to exploration licences granted since 1 January 2007.

A commercial discovery would also strengthen Ireland’s energy security of supply and associated development projects would be expected to stimulate a range of economic activity and give rise to job creation.

There have been two commercial discoveries of natural gas over the last 20 years, namely the Seven Heads gas field in the Celtic sea and the Corrib gas field off the coast of Mayo. While the Seven Heads field has been developed and commercialised the Corrib field is still at the development stage with production expected to commence in late 2014.

With regard to non-petroleum minerals, as of 30 September 2012, there are 606 active mineral prospecting licences currently held by 46 companies.

In the past twenty years, the Galmoy and Lisheen zinc/lead mines have been successfully brought into production, and discoveries of additional reserves adjacent to Boliden Tara Mines Ltd’s operations at Navan have extended the life of that mine. While no new commercially viable deposits of minerals have been discovered in recent years, there have been some encouraging results, particularly in Counties Limerick and Clare. However, it is too early to determine whether these results will lead to identification of commercially viable deposits or to estimate the economic benefits that might accrue.

Financial and other terms for State Mining Facilities (Lease or Licence, depending on ownership of minerals) are negotiated on a case by case basis, in accordance with the Minerals Development Acts 1940 to 1999. Receipts from State Mining Facilities are normally paid in the form of periodic royalties based on volume of production or revenue. Output from base metal mines is exported to smelters abroad while industrial minerals, such as gypsum, are produced for the home market.