§ Dr. Kim HowellsTo ask the President of the Board of Trade if he will make a statement on the ownership of methane within coal seams in the United Kingdom.
§ Mr. EggarThe Petroleum (Production) Act 1934 vests all petroleum in the Crown. For the purposes of this Act the definition of petroleum includes any natural gas—such as methane—existing in its natural condition in strata.
§ Dr. Kim HowellsTo ask the President of the Board of Trade what plans he has to clarify the rights of British Coal in relation to the coal bed methane industry.
§ Mr. EggarThe Government announced in their White Paper "The Prospects for Coal" (Cm 2235) that when the coal industry is privatised, it is intended that there will be a new coal authority. The authority's powers and duties302W would be set out in the relevant legislation. Meanwhile, as the owner of the coal, British Coal's consent is required before any coal bed methane operations can take place.
§ Dr. Kim HowellsTo ask the President of the Board of Trade whether methane extracted under a methane drainage licence under schedule 8 of the Petroleum (Production) Regulations 1982 may be commercially exploited by the holder of that licence.
§ Mr. EggarMethane drainage licences are granted incorporating the model clauses in schedule 8 of the Petroleum (Production) Regulations 1982 for the purposes of making and keeping mines safe. The terms of the licence do not prohibit the commercial exploitation of the methane obtained in this way.
§ Dr. Kim HowellsTo ask the President of the Board of Trade on what basis British Coal assesses the value of coal that has been damaged by methane extraction.