§ Mr. Skeetasked the Secretary of State for Energy if he has completed his review of onshore licensing arrangements.
§ Mr. Buchanan-SmithI have now completed the review. The record number of licence awards in recent years reflect the growing interest in and importance of onshore oil and gas exploration and production. I have concluded therefore that modifications to the licensing arrangements are required to ensure there is a sensible modern framework for onshore exploration and production which takes account both of the demand for licences and of current environmental interests.
Accordingly, the new licence arrangements will be based closely on the three stages of exploration, appraisal and development. The new exploration licence will last for 6 years. The 5-year appraisal licence will enable the licensee to prepare a satisfactory development programme and seek long-term planning permission. Both will be a prerequisite for an application for the 20-year development licence.
Applications for the new exploration licences will be for 100 sq km blocks, based on the Ordnance Survey grid, and will be made within specified periods for any unlicensed area. Details of the fees, charges and conditions for applications for the new licences will be set out in the official gazettes when the invitation to apply is announced.
Planning safeguards will be maintained. I shall continue to require evidence that the local planning authority has been consulted about any proposed seismic survey and that planning approval has been given before I consent to any well being drilled.
I have placed a memorandum in the Library of both Houses describing the new arrangements more fully.