§ 62. Mr. Pentlandasked the Minister of Power how many applications he has received from oil companies and other interests for licences to enable them to explore for oil and natural gas under the North Sea; when he will be able to grant licences; and how many companies are expected to conduct their operations from the North-East of England mainland.
§ Mr. ErrollRegulations have now been laid before Parliament and published. These describe the way in which applications for licences should be made. Exploration licences will be granted as soon as possible but I intend to allow 60 days for applications for production licences. It is not known how many companies will operate from the North-East.
§ Mr. Proudfootasked the Minister of Power when he intends to invite applications for petroleum licences in respect of the United Kingdom part of the North Sea Continental Shelf; and what financial terms he intends to stipulate for those licences.
§ Mr. ErrollI intend to invite applications by notice in the London, Edinburgh and Belfast Gazettes on 15th May. Exploration licences will cost £1,000 per annum. Production licences will cost £25 per square kilometre for an initial period and thereafter annual sums rising by £25 per year per square kilometre from £40 per square kilometre to £290 per square kilometre; royalty will be charged at the rate of 12½ per cent. of the value of the petroleum at well-head, but the annual sums payable under production licences will be deductible from royalty. The Regulations prescribing model clauses for the licences and other relevant matters were laid before Parliament yesterday.