§ Mr. David Howellasked the Secretary of State for Energy whether he will now institute a review of the methods under which oil exploration and development licences are granted, with a view to considering methods by which the owners of property under which oil and gas is found can share in the returns.
§ Mr. Buchanan-SmithI do not propose to review onshore licensing. Property in petroleum is vested in the Crown by virtue of section 1 of the Petroleum (Production) Act 1934. Licences granted under the powers conferred by the Act do not carry any rights to access to property, and individual owners are free to negotiate appropriate terms for access and use of land.
§ Mr. David Howellasked the Secretary of State for Energy what studies he has made of onshore oil and gas drillings and development procedures in the United States of America, and of the incentives and returns available to the owners of the land under which oil or gas is found; and whether he will make a statement.
§ Mr. Buchanan-SmithTitle to property in petroleum in the United States of America is different from the United Kingdom where that title rests in the Crown. Owners of land are free to negotiate appropriate terms for access or other use of land.