Official Report: Minutes of Evidence

The Deputy Chairperson (Ms Forsythe): Members, only a limited number of responses were received to the call for evidence on the Bill, and a small number of evidence sessions were scheduled. The Committee agreed on 9 September 2026 that it would not require further evidence sessions to conclude the Committee Stage. This session will be reported by the Official Report.

I welcome back to the Committee, from the Department for the Economy: Jimmy Graham, director of business decarbonisation, gas, minerals and renewable electricity; Chris Nesbitt, head of minerals and petroleum branch; and John McManus, minerals and petroleum branch. I invite the officials to make any remarks on the Bill that they wish to.

Mr Jimmy Graham (Department for the Economy): Thank you, Deputy Chair. I will make a very short statement. We have provided written responses on a number of issues that were raised in the call for evidence, and, of course, we are happy to discuss any aspects of those today.

I will address one particular issue that was raised during evidence: whether it would be preferable to retain the existing rights and powers and introduce an explicit prohibition on petroleum exploration and production. As members will be aware, the approach taken in the Bill is different: it removes the underlying rights, the powers and the licensing framework. The Department considers that to be a more coherent legislative approach to implementing the policy intent to end onshore petroleum exploration and production.

Petroleum remains vested in the Department, and there is no change in the Bill in relation to ownership. The change is that there would no longer be a legal framework to explore for it, produce it or license others to do so. I hope that the limited keeling schedule that was provided to the Committee is helpful in illustrating that distinction.

I am happy to take any questions that members may have and to provide any further assistance that would support the Committee's scrutiny of the Bill.

The Deputy Chairperson (Ms Forsythe): Thank you very much. Do members have questions now, or do they want to progress through the Bill, clause by clause, and put questions to the officials as we go through? Are members happy to take that approach?

The Deputy Chairperson (Ms Forsythe): OK, thank you. Is the Committee content to move to the informal clause-by-clause consideration of the Bill?

The Deputy Chairperson (Ms Forsythe): OK, thank you. I ask that members set out for the record their informal views on the clauses of and amendments to the Bill, if they have any. No votes will be taken. Our formal clause-by-clause consideration will take place next week, at which time votes may be required. If members are clear on that, we will proceed. Are members clear on that?

The Deputy Chairperson (Ms Forsythe): Let us deal, first, with clause 1, "Principal set of repeals", which amends the Petroleum (Production) Act (Northern Ireland) 1964 to remove the Department's power to grant licences for all forms of onshore petroleum exploration and production in Northern Ireland. It also removes the Department’s right to search, bore for and get petroleum. Clause 1 repeals provisions in the 1964 Act that relate to the licensing regime and the Department’s power to explore for petroleum.

The Letterbreen and Mullaghdun Partnership (LAMP) argued that the Bill should be amended to include a specific ban on exploration and extraction. The Department countered that the Bill removes the framework for licensing, exploration or extraction, and that a specific ban is therefore not required. The Department previously advised that it will retain the right to initiate action against those who conduct activities on land, including boring, that might result in the release of petroleum that might exist under the ground. Thus, DFE seems to contend that an explicit ban on exploration and extraction is not required. Do members have any questions that they wish to put to the officials on that point? No. Do officials have anything to add on that point?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): OK. Will you confirm whether the Department wants to retain the right to initiate action against those conducting activities on land, including boring, that might result in the release of petroleum that might exist under the ground?

Mr Graham: Yes.

The Deputy Chairperson (Ms Forsythe): OK. LAMP and some others argue that the Bill should be amended to include an explicit statutory prohibition on hydraulic fracturing and other unconventional petroleum extraction techniques. The Department countered that the Bill removes the complete framework for licensing, exploration or extraction and that a specific ban on fracking is not, therefore, required. Do members have any questions on that? No. Do officials have anything to add on it?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): LAMP further argued that the Bill should be amended to ensure that Northern Ireland retains:

The Department has advised that section 1(1) of the Petroleum (Production) Act (Northern Ireland) 1964 is not being repealed. It is therefore argued that the property in petroleum existing in its natural condition in strata in Northern Ireland remains vested in the Department and that that position is unchanged by the Bill. I ask that the officials explicitly confirm that the property in petroleum existing in its natural condition in strata in Northern Ireland remains vested in the Department. Do you confirm?

Mr Graham: Yes.

The Deputy Chairperson (Ms Forsythe): OK, thank you. Do members have any questions? No. Do officials have anything further to add from the Department's perspective?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): OK, thank you. LAMP also argues that the Bill should be amended to reflect the Windsor framework and:

The Department countered that it does not consider that the Bill requires amendment in respect of the Windsor framework or cross-border arrangements. Do members have any questions on that? No. Do the officials have anything to add?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): OK. I ask members to confirm that they understand clause 1, the suggested amendments and the Department's responses. Are members content with that?

The Deputy Chairperson (Ms Forsythe): OK. I ask that members indicate, informally, that they wish to support the proposition that clause 1 stand part of the Bill? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): OK, thank you.

Clause 2, "Transitional provision", deems that live applications for licences are to be treated simply as withdrawn by the applicants. The clause enables the Department to provide to applicants, at its discretion, a refund — partial or whole — for the fee paid in relation to the application, including an amount for interest. Friends of the Earth indicated that it supports revoking all live licences and refunding the fees for applying for licences. However, it also indicated that it:

arguing that —

The Committee understands that there are few live applications and, thus, the number of refunds would be limited. The Department advised that the payments of interest associated with refunds would be made on a case-by-case basis and in line with 'Managing Public Money Northern Ireland' guidance and European Convention on Human Rights (ECHR) principles. Do members have any questions on that?

Mr M Nesbitt: Under clause 2(2), the Department will determine how a refund is calculated. How would that work?

Mr Graham: If there is a refund, it will be whole or partial. We would need to look at the specific circumstances at the time, if there is a request for a refund of an application. As the Deputy Chair said, we would do that following Managing Public Money guidelines.

Mr M Nesbitt: What would happen if I said that I had spent £2·5 million so far?

Mr Graham: The refund is just for the application. Licence applications, at that time, cost £1,000 each. It is a small amount of money.

Mr M Nesbitt: Why would you need to calculate it then? Why not just say that they would get their £1,000 back?

Mr Graham: We want to ensure that the legislation is open so that we can make a decision based on the specific circumstances at the time, if there is such an application.

Mr John McManus (Department for the Economy): The inclusion of interest is consistent with established ECHR principles of just satisfaction and restitution. It would be fair to give interest as well as refund the application fee.

Mr M Nesbitt: OK.

The Deputy Chairperson (Ms Forsythe): Do officials have anything further to add at this point?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): Do members understand clause 2, the suggested amendments and the Department's responses? Are members content with that?

The Deputy Chairperson (Ms Forsythe): OK. Thank you. I ask that members indicate, informally, that they wish to support the proposition that clause 2 stand part of the Bill? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Clause 3, "Consequential provision", makes consequential repeals to the legislation, referring to the licensing regime being repealed by the Bill, and revokes regulations relating to the licensing regime. Do members have any questions? No. Do officials have anything to add?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): I ask members to confirm that they understand clause 3.

The Deputy Chairperson (Ms Forsythe): Are members content to indicate, informally, that they support the proposition that clause 3 stand part of the Bill? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Clause 4, "Ancillary regulations", enables the Department to make regulations in relation to the outcome intended by the Bill. Some of the regulations will be subject to draft affirmative procedure at the Assembly.

Fermanagh and Omagh District Council argued that the Bill should be amended to:

The Department clarified that it does not consider that the power will be used to enable petroleum-related development or weaken the effect of the Bill and that, in any case, any such ancillary regulations would be subject to Assembly controls. Do members have any questions on that? No. Do officials have anything to add?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): OK. Thank you. I ask members to confirm that they understand clause 4, the suggested amendments and the Department's responses.

The Deputy Chairperson (Ms Forsythe): I ask that members indicate, informally, that they wish to support the proposition that clause 4 stand part of the Bill? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Clause 5, "Commencement", provides for the Act to come into operation on the day after it receives Royal Assent. Do members have any questions? No. Mike is smiling.

Mr M Nesbitt: That is very controversial. [Laughter.]

The Deputy Chairperson (Ms Forsythe): Do officials have anything to add?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): OK. I ask members to confirm that they understand clause 5.

The Deputy Chairperson (Ms Forsythe): I ask that members indicate, informally, that they wish to support the proposition that clause 5 stand part of the Bill? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Thank you.

Clause 6 provides the short title of the Bill. Do members have any questions? No. Do officials have anything to add?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): I ask members to confirm that they understand clause 6.

The Deputy Chairperson (Ms Forsythe): I ask that members indicate, informally, that they wish to support the proposition that clause 6 stand part of the Bill? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Thank you.

I remind members that the Assembly's Legal Services advised that the removal of the power to grant licences in cases where they have been applied for could amount to an interference with that person's article 1, protocol 1 (A1P1) rights under the European Convention on Human Rights. The Department countered that any pending applications do not constitute possessions for the purposes of article 1, protocol 1 of the ECHR, as they do not give rise to a legitimate expectation of a licence being granted. The Department has advised that any related regulations are likely to be technical or consequential in nature and, therefore, unlikely to engage A1P1 rights. The Department has provided an assurance to the Committee that, where A1P1 is engaged, it will ensure that any provision is justified and compliant with the convention rights in line with section 23 of the Northern Ireland Act. Members, do you have any questions to put to the officials on that? No. Do officials have anything to add?

Mr Graham: No.

The Deputy Chairperson (Ms Forsythe): Thank you.

Members, is the Committee content to accept the Department's related assurances and take no further action? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Thank you.

Various stakeholders sought assurance that the UK Government would not overrule a ban on petroleum exploration and extraction. The Committee understands that the UK Government can, through Parliament, enact any legislation that it wants in any part of the UK and, thus, any ban could be overturned by the UK Government. Members, do you have any questions for the officials on that? No. Will the officials confirm that that is correct?

Mr Graham: Yes.

The Deputy Chairperson (Ms Forsythe): Thank you. Is the Committee content to accept the Department's related explanation and content to take no further action? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Thank you.

I remind members that a stakeholder suggested that the Bill be amended in order to also ban offshore petroleum exploration and extraction. The Department countered that offshore petroleum exploration that takes place in coastal or open waters is not devolved to Northern Ireland. The Petroleum (Production) Act (Northern Ireland) 1964, which is being amended by the Bill, expressly excludes:

As such, offshore petroleum exploration and production falls outside the scope of the legislative regime that is being amended by the Bill. Members, do you have you any questions for the officials on that? No. Thank you. Will the officials confirm that that is correct?

Mr Graham: Yes.

The Deputy Chairperson (Ms Forsythe): Thank you. Is the Committee content to accept the Department's related explanation and content to take no further action? Is that informally agreed?

The Deputy Chairperson (Ms Forsythe): Thank you. I thank the officials for coming and providing those confirmations in respect of the Bill. We appreciate it.