Scotland Act 2016 and Wales Act 2017 (Onshore Petroleum) (Consequential Amendments) Regulations 2018

Lord Grantchester Excerpts

Thursday 21st June 2018 Lords Chamber

[Lord Teverson (LD)]

My Lords, my noble friend has pretty well gone through everything that I might have said, except to say that from these Benches we fully support this extra act of devolution in an important area. It is about making sure that those in the energy field—in this area it is petroleum, but it can also be nuclear, renewables or whatever—such as energy developers and owners, put the environment or land back to what it was originally. Should be public need that, the Government or the devolved authorities are able to insist on a financial consideration. So we very much support these regulations.

[Lord Grantchester (Lab)]

I thank the Minister for his explanatory introduction. As he says, this instrument devolves Section 45A of the Petroleum Act 1998 to the devolved Administrations of Scotland and Wales. As obligations for plugging and abandoning wells are included in the licence conditions, Section 45A, relating to the financial ability of the relevant party, is a key part of the licensing regime that needs to be devolved.

I have only one curiosity to be satisfied in agreeing to the regulations. The territories of Scotland and Wales are defined in area according to the Territorial Sea Act 1987, which defines the onshore area to include up to 12 nautical miles offshore. Could there be a situation whereby an offshore activity could be undertaken under onshore petroleum legislation? I am sure the Minister may reply that up to 12 nautical miles offshore is, in fact, onshore territory. May I follow that up with a further question? Should there be a well or field that straddles the border both within and without the 12-mile limit, who would have to apply the wisdom of Solomon to adjudicate on whether it was onshore or not? While the Minister puzzles over the question, I am happy to approve the regulations.

[Lord Henley]

My Lords, I thank the noble Lord, Lord Grantchester. I certainly puzzled over the question, and I imagine that those who advise me in these matters are also puzzled. The simplest thing would be to say that I will write to him in greater detail on the Territorial Sea Act 1987—an Act we all wish to know more about. I am grateful to the noble Lord for his assiduous study of it.

I am also grateful for the comments of the noble Lord, Lord Bruce. As he rightly says, there is not much that I can do in the way of commenting on this—I certainly cannot engage in theological discussions between the Executive north of the border and the judiciary. It will be a matter for them to resolve. All I can say is that, like him, and unlike his party—I have had this discussion with his noble friend, the noble Baroness, Lady Featherstone, on a number of occasions—I am a great believer in looking at the facts on these matters, and a great believer in the possible economic benefits to this country and north of the border for the extraction of shale gas. I hope he will continue to do his work within his party. I did not quite discover what the views of the noble Lord, Lord Teverson, were on this; he indicates that he wishes to remain silent on these matters. He can discuss that with the noble Baroness, Lady Featherstone, in due course.

There are great opportunities in the extraction of shale gas, and we should look at the facts when it comes to that. Obviously, with the passing of these regulations, that and all the other activities will become a matter for the Scottish Government, but I hope they will listen to the noble Lord, Lord Bruce, and not other siren voices, on this matter.

I think I have dealt with all the questions, other than the rather technical ones from the noble Lord, Lord Grantchester, on the Territorial Sea Act 1987.