asked the Minister for Industry and Commerce the action he proposes to take to encourage the development of this country's mineral resources.
Ceisteanna—Questions. Oral Answers. - Oil and Gas Exploration.
15.
In both the on-shore and off-shore sectors I have taken or propose to take a number of measures and initiatives which will contribute significantly to the development of our mineral resources.
New rules relating to on-shore minerals prospecting licences were announced in 1976 with a view to more intensive and speedier exploration of these resources. Active consideration is being given to steps that might be taken to resolve certain difficulties that have arisen in regard to private ownership of minerals and which have been a cause for some concern to companies engaged in prospecting.
A further development has been the decision announced in the recent Green Paper to revive the State sponsored company, Mianraí Teo., with a view to participation in the development of mineral resources in parallel with and in co-operation with the private sector.
In accordance with directions issued by me discussions between the IDA and established companies are continuing in relation to the setting up of a zinc smelter to process production from the valuable ore-body at Navan now in course of development.
I am also preparing policy guidelines to deal with exploration for and development of potential deposits of radioactive minerals, and extensive prospecting facilities have already been offered.
As regards the off-shore sector a further area was designated last July with a view to increasing the area of Continental Shelf within which the State will have rights in regard to the exploration and exploitation of the natural resources of the seabed and subsoil. The total area thus designated to date comprises well over half a million square kilometres or more than seven times our total land mass and at its furthest points extends 520 nautical miles approximately from our coastline.
Until this year exploratory drilling for oil and gas was conducted solely by Marathon Petroleum Ireland Ltd. and by Esso Exploration Inc. under a farm-out agreement from Marathon. Earlier this year I announced that exclusive petroleum exploration licences had been granted to 11 consortia including virtually all the most competent exploration groups in the world. The firm work obligations provided for in these licences ensure a territorially wide ranging drilling programme in our Continental Shelf area covering 43 blocks in the south-west, west, north-west and east. There has already been some drilling in the limited time available this year and the programme will continue for the next three to four years.
In regard to the Kinsale gas field plans are already well advanced so that production will commence in about 18 months.
Is the Minister in a position to indicate further to the House the difficulties he has over the private ownership situation?
I am not in a position to say very much though I would be as helpful as I could to the Deputy. This is a fundamental, legal matter and indeed a matter with some constitutional overtones, as I expect the Deputy knows. The search is being conducted for a mechanism that will be satisfactory and also not open to endless reassessment and further litigation. It is not an easy problem but it is one that we are aware of and of which we are seized. I should not like to anticipate the advice that I hope to receive fairly shortly.
Is the Minister telling us that that was the decision of the Supreme Court in the 1940 Act—that particular thing with which he is concerned?
There are, I gather, a whole lot of what one might call grey areas legally. There are unclarities that I think need to be sorted out.