HC Deb 25 February 1976 vol 906 c226W
Mr. Skeet

asked the Chancellor of the Exchequer, for the purpose of computing the oil allowance under petroleum revenue tax what is the statistical correlation used by the Inland Revenue between oil and natural gas; and whether in fact the formula employed has been found to be correct.

Mr. Dell

Section 8(7) of the Oil Taxation Act provides the rule for calculating the gas equivalent of the oil allowance: 40,000 cubic feet of gas at a temperature of 15 degrees Centigrade and pressure of one atmosphere are to be counted as equivalent to one long ton of oil.

Mr. Skeet

asked the Chancellor of the Exchequer if he will list the criteria involved in defining an oilfield for petroleum revenue tax purposes.

Mr. John Smith

I have been asked to reply:

As stated in 1975 by my hon. Friend the then Minister of State, Treasury on 21st and 23rd January 1975 during the consideration of Schedule 1 to the Oil Taxation Bill in Standing Committee D—[c. 355–82]—the determination will be based on geological and geophysical considerations.