30-10-00 Wildlife and marine species will be the focus of a three month consultation on improving environmental protection from offshore oil and gas activity. The proposals and consultation were announced by Energy Minister Helen Liddell in response to a Parliamentary Question.
Mrs Liddell said: "I have today initiated a three month public consultation which will look at the potential environmental impact of oil and gas activity in the area between the Shetland and Faroe Islands known as the 'White Zone'. "A formal invitation will shortly be made to oil companies to bid for licences in this area. But before any licences are awarded, I want to hear the views of the public and experts on the environmental impact that these activities might have.
Depending on the outcome of this consultation, we may impose conditions on the licences or withhold areas on offer. "For the first time, the department has commissioned and published an independent Strategic Environmental Assessment of the White Zone, the surrounding area and the possible oil and gas impacts on it. This report will be made available to interested parties and should help promote informed responses to the consultation. "The consultation also asks for views on draft regulations applying the EU's Habitats Directive, which requires the protection of certain species and habitats, to offshore oil and gas activities. Under the regulations, the Secretary of State must consider the requirements of the Directive when taking decisions relating to those activities. "Today's proposals mark a further major improvement to the transparency of our environmental and licensing regimes. They demonstrate the importance Government and industry continue to place on protecting marine habitats and species. "However, it is also important to provide further opportunities for petroleum exploration on the UK Continental Shelf. The proposed changes will provide a stronger legal and environmental framework for future offshore licensing rounds. "The 19th Licensing Round applications, which should be received early next year, will be the first to be considered under this new approach. "Maintaining oil and gas discoveries over the coming years is vital if we are to sustain an important industry and benefit the UK economy."

1. On 5 November 1999 in R v. Secretary of state for Trade and Industry ex parte Greenpeace, the High Court declared that the EU Habitats Directive (92/43/EEC) applied not just to territorial waters but also the UK's continental shelf out to 200 miles. The Court also held that the Secretary of State for Trade and Industry could not lawfully decide whether to grant licences in the prospective 19th Round in the North East Atlantic without first considering and applying the provisions of the Directive. The Secretary of State for Trade and Industry announced shortly afterwards that the Government would not appeal against the ruling.
2. Draft regulations applying the requirements of the Directive to oil and gas activities form part of the consultation. These require the Secretary of State to treat habitat sites that are likely to be transmitted to the European Commission and selected for special protection under the Directive, to be treated as if they were already selected. The DETR will be consulting separately on regulations applying to other marine activities and setting out the process for site selection.
3. A seabed survey of the "white zone" was planned before the court proceedings were initiated and took place over the summer of 1999. A preliminary consultation with NGOs and scientists was launched in December 1999 to identify possible sites that would require protection under the Directive. A Strategic Environmental Assessment of the "white zone" and the impact that oil and gas activity might have on it which has been commissioned by the DTI is a core part of the consultation.
4. A Notice announcing the launch of the 19th Licensing Round will shortly be sent to the Official Journal of the European Communities (as required by the HydrocarbonsLicensing Directive) and should be published shortly. A number of substantial oil and gas prospects have been identified in the "white zone" and these should attract considerable interest from oil industry. On current schedule licence awards could be made during the first quarter of 2001.