Falklands : Public Meeting Report (02/21/06)
Submitted by Falkland Islands News Network (Juanita Brock) 22.02.2006 (Article Archived on 08.03.2006)
An update on hydrocarbons exploration was the main focus of this meeting.
PUBLIC MEETING REPORT (02/21/06)
By J. Brock (FINN)
A public meeting was held in the Court and Council Chamber of the Town Hall at 1700hrs on Tuesday, 21 February 2006. Present were Cllrs. Clausen (Chair), Cllrs. Davies, Robertson, Hansen, Rendell and Summers. The focal point of the meeting was a presentation by Mrs. Phyl Rendell about progress in the Mineral Resources Department. She began with a brief history of seismic activity in the Falklands beginning with early seismic lines shot in 1977, right up through the surveys of the early to mid ‘90s when the exploration regime got underway. She pointed out the successes and failures of wells drilled by Shell, Amerada Hess, Lasmo and Lundin Oil. The “Open Door” licencing that lasted from 2001 to 2005 brought the configuration of companies that we see operating in the Falklands today, i.e. Argos Resources plc, Desire Petroleum plc and Rockhopper Exploration plc.
Mrs. Rendell gave a brief report about the Area of Co-operation. When the bottom fell out of the oil price meetings ceased but it is thought that with the increase in activity in the North and South Falkland Basins that talks with Argentine officials about the special area of co-operation could begin again.
A presentation by Desire Petroleum about the EIA will take place on 22 February 2006 at the Chamber of Commerce and Rockhopper Petroleum is using the Geo Pacific for 2D Surveys in the in the North Falkland Basin. FOGL have used GSI Admiral in the South Falkland Basin for the same reason, with 3D Seismic shortly to identify prospects for drilling. Rockhopper’s OHM Survey with the GSI Pacific is soon to commence and FOGl has completed all but 3,000 sq km of their 25,000 sq km survey area in the South Falkland Basin.
In the future, Desire Petroleum plan to get a rig to do exploratory Drilling in their tranches as soon as possible. Vessels will do 3D surveys in both the North and South Falkland Basins. Seeing that there will be minimal impact on land, drill ships will be used to pump and store crude for on forwarding to markets on tankers. FPSOs as they are called, would, in future, have the facilities to liquefy natural gas into diesel for on forwarding to markets.
Former Governor, Mr. David Tatham, asked if natural gas could now be processed onboard FPSOs and Colin Phipps said not yet but research and development in that area is nearly complete and the facility for liquefying gas should be available on them in the not so distant future. Cllr. Clausen added that in Norway Natural gas is liquefied on barges and transported to market with no environmental impact.
According to Mrs. Rendell, a new type of company is searching for oil now in the North and South Falkland Basins. When exploratory drilling began in the late ‘90s Shell had shown an interest and drilled, generating hydrocarbons. They gave up their tranches and now smaller, more efficient companies have taken their place. She explained that normally the smaller companies explored for oil in an area and when commercial quantities were found the bigger companies moved in.
Following the presentation about offshore oil Mrs Rendell explained about progress that Falkland Islands Gold and Minerals Limited (FGML)are making. She explained that their remit was firstly Gold, then Diamonds followed by Rare Earth Elements. Thus far they have carried out shallow core work. Since beginning exploration on the Falklands the Company has been listed on the Alternative Investment Market (AIM).
Mrs Rendell mentioned that it was terrific that money was being spent in Camp and that thanks to FGML buildings where they are working are being maintained. As a result of the exploration there is new legislation in place. At the moment FGML have a licence for prospecting. If they find anything, there will be an exploration licence to apply for and if mining begins, a Mining licence has to be applied for.
Anne Gisby asked if minerals were found on private property, did the crown have a right to it. Mrs Rendell said that the Crown takes all mineral rights where they are vested in the Crown. There will be no exploitation in nature reserves or areas that are inhabited.
During the second part of the meeting a variety of questions were asked. Cllrs. Read out a question by Roger Spink, who had asked if a report that was promised into the pitfalls of the Gordon Forbes Case and how a similar scenario could be avoided would be available soon. Cllr Clausen said that the promise was made during the time when the new Council had taken over and that it had lowered on the list of priorities. However, Cllr. Clausen said it would be highlighted again and dealt with.
Former Cllr. Stephen Luxton then asked a question about Capital Gains Tax and whether it was fair that when oil stocks were sold one had to pay them but when other stocks were sold, people in the Falklands didn’t have to pay them.
Cllr. Summers said that the law was set up to prevent scams in that a company could sell shares to avoid paying Capital Gains Taxes. Previously the law did not apply to other kinds of stock but that in fishery companies and others would now be subject to it.
Colin Phipps said that in the UK people were not allowed to trade in licences but it would be worth explaining what the Capital Gains Taxes mean here. Cllr. Summers said it was a worthwhile point.
Brian Summers wanted to know why lay members on Government Committees were being made redundant and a third Councillor would be put on the committees where lay members had been present. He mentioned that it was a way for Councillors to make more money on allowances. Cllr. Clausen said that it hasn’t been decided yet about lay members but that the whole Committee system was under review. Cllr Summers said that it was being considered to bring the numbers of committees down from 26 to 8. Cllr Davies mentioned voting rights and responsibilities for lay members and that they were different. Cllr Summers said it would be ideal to have a uniform approach to the composition and number of Government Committees but that it has turned out to be a case by case basis. Cllr. Rendell mentioned that lay members were supposed to represent the public but it turns out that they are representing themselves. Cllr. Robertson mentioned that lay members had a lot to give to committees and that their input was valuable.
Cllr Summers then talked about the Constitution and said that certain sections of it should be put out for consultation at different times. He suggested the lengthy document could be divided into three parts with Government Structure going out for public consultation first and other sections at later dates.
Mr. Roger Spink asked about the moratorium on PRP and Cllr. Robertson said that Councillors were looking into it. She indicated that the system was a bit dodgy and it needed to be refined. She also said that the public needs to write in and give their views. Cllr. Summers said that the private sector would not benefit if PRP would be eliminated. It was the granting of status that caused a problem. The private sector benefits because people seeking status bought land and houses and made developments. Cllr Davies agreed that the system as it is at present is not satisfactory and time was needed to get it right.
Trickle immigration was thought to be the best way forward for the Falklands. There were issues with employment for new immigrants.
Former Cllr. Luxton brought up the proposed new Road Traffic Ordinance in relation to seat belts. Cllr. Robertson said the new ordinance had been gazetted but that seat belts would be dealt with under a separate ordinance.
A concern about designated roads and insurance was raised by Cllr. Summers who indicated that insurance either wouldn’t pay or there would be a different payment if a family were wiped out on a non designated road. Degrees of designation were discussed, with cllrs saying that the whole matter is under review. Alex Blake mentioned that if a road were designated then there was a responsibility to police it. Cllr Clausen mentioned that there were many designated areas that weren’t policed.
Mr. Phil Middleton mentioned the use of mobile phones while driving and Cllr. Robertson said that was in hand in the new ordinance. Two-metre conversations were also under consideration. It is thought that even if a set were hands free a call could make a person lose concentration on their driving. The only entity that couldn’t be regulated was conversations with other passengers in a vehicle.
Bill Curtis brought up the JOHN CHEEK that was boarded in international waters. Cllr. Clausen updated those attending on what happened. This item will be dealt with in another forum. See the CTF report by Graham Bound for more info.
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