asked the Minister for Industry, Commerce and Energy (a) if he has received a report on a possible reallocation of natural gas from the Marathon field which was stated in a daily newspaper on 4 February 1978; (b) the authors of the report; and (c) the recommendations contained in the report.
Ceisteanna—Questions. Oral Answers. - Oil and Gas Exploration.
6.
I have received a report reviewing the current allocation for energy purposes of natural gas from the Marathon field. The report was prepared, at my request, by an inter-departmental committee comprising representatives of my Department, the Department of Finance and the Department of Economic Planning and Development. The main conclusions in the report were published on 10 April.
I should like to ask the Minister when he got a copy of this report?
I got it in early January.
Would the Minister tell the House the reason for the delay of three months before he published his statement?
I needed to consider the report in some detail and to consult the Government about it also.
For three months?
Yes. The consideration of it took some time.
Will the Minister publish this report?
No. I have already indicated that I have published the conclusions drawn by the framers of the report. I do not propose to publish the report for reasons which I have already stated and which I believe are valid.
Would the Minister agree that until the report is published and the public have an opportunity of seeing the foundations on which the conclusions rest we have to take the Minister's word for it that those conclusions are correct?
The House should take my word for it that the statement which I made accurately reflects the conclusions of the report. I certainly have not misled anybody in that respect.
Apparently, I am not expressing myself properly. I mean that unless the report is published the public will not be able to judge whether the conclusions are justifiable. I am sure the Minister has summarised the conclusions accurately.
I believe most people accept that they are logical, rational and commercial conclusions to draw in all the circumstances. My own preference is to publish reports of this kind where I can, but this report contains a fair amount of detail about negotiations between BGE, on behalf of the State, and the Marathon Oil Company in relation to the price of gas. It would certainly not be in the public interest if that information was published. I hope the State will at some future date be in the position of having to negotiate a similar contract with some other oil company or perhaps a number of companies.
Does the Minister agree that his reluctance to publish this report contrasts strangely with his profuse wish when in Opposition to see such reports published?
No. The report to which the Deputy is referring is a totally different report which contains no commercial information except——
The Minister sounds like Justin Keating every day of the week.
The other report to which the Deputy refers is in a totally different category. It is not a commercial document. It is a legal agreement under which a substantial amount of public money was paid out a number of individuals.
The Minister should publish it minus the commercial information and tell the Dáil when he is so.
I endeavoured to have an edited version prepared but I found that, unfortunately, it became meaningless without the information.
7.
asked the Minister for Industry, Commerce and Energy if he will indicate the prospects that exist during 1978 for the discovery of oil as a result of the intensified drilling plans.
While surveys have shown the existence of a number of interesting structures in our Continental Shelf area, it is only by drilling in these structures that the presence of hydrocarbons can be established. The substantial increase in drilling activity in 1978 as compared with previous years is naturally a favourable development since it will result in a very significant number of structures in different areas being tested. It would, however, be premature at this stage to attempt a definitive assessment of prospects.
Would the Minister indicate if the prospects of the Porcupine Bank to date, in relation to the information available to this Department, are more than encouraging?
I would describe them, on the basis of the two wells which were drilled last year, as reasonably encouraging. That view must be shared by the companies concerned because considerably more extensive drilling will go on there this year.
8.
asked the Minister for Industry, Commerce and Energy the exact position regarding the various companies who have been granted prospecting licences for oil and gas off this country's shores with particular regard to (1) the nature of their exploration technique, (2) the conservation and environmental protection measures used in the process of exploration, (3) the safety regulations applied for personnel on any oil rig or any alternative form of exploration, (4) the total number of personnel employed in this exploration by these companies, (5) the total number of Irish people employed by these companies in this exploration, (6) the monitoring and inspecting processes employed by his Department to oversee the activities of these exploration activities, and (7) the system and method whereby the Government, through him, can have a full and accurate assessment of the finds produced by any of these exploration efforts.
The Deputy's question presumably refers to activities under exclusive petroleum licences. The replies to the points raised by him are as follows:
(1) The methods used in exploring for hydrocarbons are virtually the same all over the world. Licensees commence by conducting seismic surveys of the blocks exclusively allocated to them. The interpretation of the results of such surveys helps in the selection of the most favourable locations for drilling exploratory wells which is the only means by which the actual presence of hydrocarbons can be established.
(2) The exclusive licensing terms provide that the licensee shall maintain all apparatus and appliances and all wells in good repair and condition, and shall execute all operations in a proper and workmanlike manner in accordance with good oilfield practice. In addition my Department have prepared Rules and Procedures for Offshore Petroleum Exploration which stipulate in detail the measures to be taken to guard against any possible conservation or environmental problems.
(3) The exclusive licensing terms provide that the licensees shall take all necessary steps for securing the safety, health and welfare of persons employed or undergoing training in or about the licensed area and shall comply with all regulations made and directions given by the Minister for Labour, after consultation with other appropriate Ministers, in this regard. The Minister for Labour proposes soon to introduce specific legislation regarding standards for the safety, health and welfare of persons employed on offshore installations in the exploration and exploitation of our natural resources.
(4) and (5) On average about 140 workers are employed on an offshore drilling unit and very roughly 50 per cent of these would be Irish workers. I cannot at this time say with absolute precision how many wells will be drilled in the coming season but it seems unlikely that the number will be less than 16. This could involve up to seven drilling units operating simultaneously in Irish waters. On this basis as many as 1,000 personnel, including about 500 Irish people, could be employed by offshore drilling contractors between mid-March and October of this year. This does not take account of personnel employed directly by the exploration companies, shore base operators, catering firms, supply boats, standby safety vessels and general service companies. I am not in a position to indicate precisely the number or proportion of Irish people employed in these diverse activities. However, a reasonable estimate is that about 500 people would be employed in these areas, of whom something less than half would be Irish people.
(6) Drilling operations conducted by licensees are monitored by my Department on a daily basis. During the period of drilling the licensee is required to submit daily progress reports by telex. In addition my technical staff are in frequent contact with the licensees' technical experts and they also visit the various rigs during drilling operations. After a well has been completed the data and information resulting from the drilling operations are the subject of a detailed analysis.
(7) I receive regular detailed reports from my technical staff of the results of all drilling operations. I am also informed immediately of any potentially important developments arising from such operations. I am satisfied that the arrangements adopted will enable me to make a full and accurate assessment of any finds which may be made.
I thank the Minister for his detailed reply. Is the Minister satisfied, now that arrangements currently exist in the form of regulations and standards, that in the event of any kind of environmental mishap there is a sufficient back-up emergency plan in order to minimise the impact that such a mishap might have on the marine environment and related industries such as fishing?
Yes. The Deputy should bear in mind that the question relates to exploratory drilling and that the bulk of this takes place 100 miles or more from our shores in very deep water and the likelihood of some major environmental disaster is extremely remote. The companies drilling in these waters observe the same high standards they observe in other parts of the world. I am satisfied, taking into account the conditions under which they drill, that all proper and necessary precautions are taken.
Is the Minister satisfied that he has the resources within his Department to monitor precisely the activities of these companies and is the Minister quite happy with their conduct to date?
Yes, I have told the Deputy in some detail about how we monitor their activities, and I have no reason for complaint.
9.
asked the Minister for Industry, Commerce and Energy if he will state in respect of offshore drilling for oil, if the Government have inserted any clause in any contracts or permits granted by them requiring the driller to report to the State any underwater archaeological finds which may come under notice during this work; if he will request all concerned to make notification immediately to the State if any such archaeological find is noticed, in order that records may be kept in respect of it; and if he will make a statement on the matter.
The published licensing terms applicable to offshore drilling operations contain a specific provision that, if a shipwreck or object of historical interest is discovered during such operations, the matter must be immediately reported both to me and to the Minister for Tourism and Transport and special care must be taken by the licensee not to cause any damage to such objects. There is also a provision in the terms for the issue of special instructions relating to the procedure to be observed in the treatment of such objects.