HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobaavyb0001 and id is 1 raw text is:
DOCUMENT RESUME
03412 - [A2723932]
The United Kingdom's Development of Its North Sea Oil and Gas
Reserves. ID-77-51; B-118678. September 23, 1977. 31 pp. + 5
appendices (21 pp.).
Report to the Congress; by Elmer 8. Staats, Comptroller General.
Issue Area: International Economic and Military Programs (600).
Contact: International Div.
Budget Function: Natural Resources, Environment, and Energy:
Energy (305) ; Natural Resources, Environment, and Energy
(300).
congressional Relevance: House Ccmmittee on Interior and Insular
Affairs; Senate Committee on Energy and Natural Resources;
Congress.
Authority: Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.).
The United Kingdom's (UK's) philosophy, approach, and
control over developmert of its North Sea oil and gas reserves
was examined in crder tc gain pertinent information that could
be useful to the United states for managing resources of the
Outer Continental Shelf. Findings/Conclusions: The UK's
decision to adopt a policy of rapid exploration and development
was facilitated by the basic resolution of mineral rights
ownership, oil price increases, a~id the ability to develop
needed technolcgy. The policies were implemented primarily
through a system of licensing, establishment of a national oil
company, and a system of taxation and royalty. The licensing
system encotraged rapid exploration because the cost of licenses
was low, two-thirds of the licensed area must be surrendered
after 7 years, and the Government stressed intensive work
programs. The British National Cil Corporation, created on
January 1, 1976, provides the Gcvernment with a secure source of
oil and gas because it is a 511 partner In all licenses. The tax
and royalty system encourages development by allowing companies
to recover capital costs early ir the production life of oil
fields. Majcr features include a petroleum revenue tax, a
corporation tax, and a 12.5% royalty. (H10)](ViewImageLocal?handle=hein.gao/gaobaavyb0001&div=1&collection=&method=preview&ext=.png&size=3)