§ Mr. Foulkesasked the Prime Minister if she will deposit in the Library a copy of the Falkland Islands Mining (Minerals and Oil) Regulations.
§ The Prime MinisterYes.
§ Mr. Foulkesasked the Prime Minister what is (a) the yearly rent and (b) the rate of royalties payable on oil extracted, imposed in the licence granted to Firstland Oil and Gas plc.
§ The Prime MinisterAs stipulated in the Falkland Islands Mining (Mineral Oil) Regulations 1964, the licence provides for an annual rent for each square mile of the licensed area at the following rates:
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Rent 1st year of initial term 50 pence 2nd year of initial term £1.00 3rd year of initial term £1.50
Rent 4th year of initial term £1.75 1st year of renewal £2.00 2nd year of renewal £2.25 3rd year of renewal £2.50 It also provides for a royalty of 12½ per cent. of the value of all crude oil won and saved and of all casinghead petroleum spirit recovered by Firstland Oil and Gas plc from the licensed area; and a royalty of 5 per cent of the value of all natural gas produced and sold from the licensed area. The rent paid in the relevant year is deducted from the amount of royalities so payable.