§ Mr. FavellTo ask the Secretary of State for Energy, further to his reply of 12 December, upon whom the cost of abandonment of North sea oil rigs will fall; whether he has plans to introduce regulations to require future installations to be constructed in a way which makes their abandonment easier and less expensive; and if he will make a statement.
§ Mr. Peter MorrisonResponsibility for the costs of abandonment of North sea offshore installations lies with the parties to the joint operating agreement relating to the installation, and any other persons given notice by the Secretary of State under section 1 of the Petroleum Act 1987. Tax and royalty relief will be available under the normal rules. The cost of abandonment is a factor which my Department is already able to take into account when considering field development proposals.