Petroleum and Gas Exploration

Dáil Éireann Debate, Tuesday - 24 April 2012

Tuesday, 24 April 2012

Ceisteanna (376, 377, 378, 379)

Tony McLoughlin

Ceist:

468 Deputy Tony McLoughlin asked the Minister for Communications, Energy and Natural Resources the number of companies/partnerships and individuals within and outside the state holding exclusive asset ownership rights to oil and gas pre the ownership of all State and non-State petroleum being vested in the Minister for Industry and Commerce and his successors on the enactment of the Petroleum and Other Minerals Development Act 1960; and if he will make a statement on the matter. [20122/12]

Tony McLoughlin

Ceist:

471 Deputy Tony McLoughlin asked the Minister for Communications, Energy and Natural Resources the implications of the Petroleum and Other Minerals Development Act 1960 on oil and gas development in the event of a commercial extraction of oil or gas project being developed that was not State petroleum prior to the enactment of the 1960 Act, which provides that compensation is payable by him and outline its implications to the taxpayer; if he will further outline if the Kinsale gas field was part of this programme; and the cost to the State. [20125/12]

Freagraí scríofa

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte)

I propose to take Questions Nos. 468 and 471 together.

The Petroleum and Other Minerals Development Act 1960 provides that the property in all petroleum shall vest in the State. The Act also provides for a compensation mechanism for persons who immediately before the passing of that Act were entitled to an estate in minerals that included petroleum. The compensation provisions in the Act, which would only apply in circumstances where a commercial discovery had been made and petroleum was being extracted, set out the process through which a person can establish their right to compensation. Payment of compensation would reduce the financial return to the State from a producing field.

As the Deputy will be aware my Department does not have a statutory role in relation to the registration of property rights and accordingly does not have details of the property rights held by private individuals or corporate bodies.

The compensation provisions set out at Chapter VI (Sections 33 to 39) of the 1960 Act are not of relevance in the case of the Kinsale area gas fields as they do not apply to offshore areas.

Tony McLoughlin

Ceist:

469 Deputy Tony McLoughlin asked the Minister for Communications, Energy and Natural Resources if he will comment on the 1958 arrangement by then Minister for Industry and Commerce and Madonna Oil being granted exploration drilling rights for 27,000 square miles for £500 in the context of impending enactment of the Petroleum and Other Minerals Development Act in 1960. [20123/12]

Tony McLoughlin

Ceist:

470 Deputy Tony McLoughlin asked the Minister for Communications, Energy and Natural Resources if he will list the conditions for oil and gas exploration in Ireland pre the enactment of the Petroleum and Other Minerals Development Act 1960 and relevant legislation governing the 1958 decision to issue Madonna Oil/Ambassador Irish Oil Ltd. exploration drilling rights for 27,000 square miles for £500. [20124/12]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte)

I propose to take Questions Nos. 469 and 470 together.

The agreement between the Minister for Industry and Commerce and Ambassador Irish Oil Ltd. was made over half a century ago and gave the company an exploration licence for 20 years from 29th March 1960. The area licensed to the company was the whole onshore area of the Republic of Ireland and any seas under Irish jurisdiction. The licence was subject to the performance of a work programme and the surrender of 25% of the original acreage every five years. The extensive exploration rights conferred by that agreement have long since expired, with the only areas remaining under licence being the producing fields in the Kinsale area.

Prior to the enactment of the Petroleum and Other Minerals Development Act 1960, legislation applying to petroleum exploration was contained in the Petroleum (Production) Act, 1918 and the Minerals Development Act, 1940. Since the enactment of the 1960 Act, the terms applying to oil and gas exploration have been amended on a number of occasions, the most recent changes being in 2007.

Question No. 471 answered with Question No. 468.