HC Deb 08 March 1966 vol 725 cc1890-2
28. Mr. Hector Hughes

asked the Minister of Power how many licences he has now granted to drill for oil and gas in the North Sea; how many and which of these operations have failed and been discontinued; and how many and which of these operations are still continuing.

Mr. Frederick Lee

I have granted 37 production licences in addition to the 53 granted by my predecessor. No licences have been surrendered. Under these licences, I have so far given my consent to drill 19 wells, of which eight have been completed, one locating a commercially exploitable gas field. Four wells are being drilled at present and others will be started soon.

Mr. Hughes

While thanking the Minister for that Answer, may I ask him whether he is aware that one of these operations—Sea Gem—has failed disastrously with loss of life? Has he any details to give about that?

Mr. Lee

The operation has not failed disastrously. In fact, it is a very great success. There was the loss of the Sea Gem, but that will not prevent B.P. from continuing their operations in that particular area.

29. Mr. Hector Hughes

asked the Minister of Power if he will state the details of each of the licences he has granted to drill for oil and gas in the North Sea; and in how many of them he has provided that the licensees must report progress, success, failure, and profits and losses to him.

Mr. Frederick Lee

I gave the House on 24th November, 1965, particulars of the production licences I have awarded. All licences incorporate the model clauses prescribed in Regulations, which provide that licensees must make monthly and annual returns of progress, including particulars of wells drilled and any petroleum encountered and won. All licensees must pay royalty on oil and gas won and saved and are subject to normal taxation.

Mr. Hughes

Does not the Minister realise that that is not an answer to the Question on the Order Paper? Will he not give details, facts and figures of the progress or retrogression of these operations?

Mr. Lee

I would have thought that during the period my hon. and learned Friend has been asking these questions I had given more details on these particular operations than on any other I can think of.

Mr. Maxwell-Hyslop

Has the right hon. Gentleman had any further thoughts on putting conditions into licences to protect local authorities from oil pollution when wells of this kind may get out of control?

Mr. Lee

If the hon. Gentleman looks at the model clauses, he will find that there is an obligation to that effect.