Ireland has a very clear strategy in respect of the Offshore Oil and Gas Exploration sector, key elements of which are: to seek to maximise the benefits to the people of Ireland from its indigenous natural resources; to provide opportunities and encourage private industry to take the risk associated with investing in exploration; to take initiatives to deepen knowledge of the potential of its offshore, in particular through supporting key research projects; and to seek to have a robust regulatory regime in place to ensure that activities are carried out in a safe manner that does not harm the environment.
The regulatory regime for oil and gas has been significantly modernised over the last ten years. The Planning and Development (Strategic Infrastructure) Act was introduced in 2006 to consider certain developments which are of strategic, economic or social importance to the State or to a region. This means that planning applications for certain large scale private developments, generally of a scale requiring Environmental Impact Assessment, will be made directly to An Bord Pleanála ('the Board') where previously such applications were the remit of the relevant Local Authority, with a right of appeal to the Board. As part of its assessment of any such application, including oil or gas production developments, the Board is required to consult with all prescribed bodies. My Department is a statutory consultee under this process and any observations it submits must be considered in coming to a decision with regard to the grant or otherwise of a planning development consent.
In accordance with the provisions of the Petroleum and Other Minerals Development Act, 1960, potential developers are also required to apply to my Department for approval of a Plan of Development for the development and commercial operation of such a project. Prescribed bodies such as the Board, along with any other parallel consent authority will also be consulted as part of this assessment process and their observations considered in coming to a decision with regard to the grant or otherwise of an approval. If there is either a Foreshore Licence required from the Minister for the Environment, Community and Local Government or an emission control licence required from the EPA, again parallel consent authorities, including my Department and the Board are consulted and their observations considered in the respective approval processes of both of these authorities.
This is the assessment process which was implemented with respect to the most recent phase of the Corrib Gas Field Development with regard to the construction of the on-shore segment of the Corrib Gas Pipeline. This application was submitted simultaneously to both the Board and my Department in April, 2010, with the two consent processes concluded by February, 2011.
Finally, in 2010, the Oireachtas approved the Petroleum (Exploration and Extraction) Safety Act 2010, which introduced a modern Petroleum Safety Framework for upstream petroleum activities, administered by the Commission for Energy Regulation
It is not possible for the State to compulsorily acquire a share of any privately held extractive company intending to operate in Ireland. However, in order to maximise the return to the State from any future development, profits from the petroleum production arising from Exploration Licences granted after 2007 will be taxed at a rate of up to 40%.
