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The Crown Estate works with industry bodies to settle offshore lease worries
03.11.2010
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http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/wind/the-crown-estate-works-with-industry-bodies-to-settle-offshore-lease-worries.html

The UK’s Crown Estate has told NewNet it is working with both renewable power and oil, and gas, bodies to identify opportunities for cooperation after claims that wind farm operators in the North Sea may loose their rights to oil explorers.

A report by the Financial Times this week revealed industry members feared terms in leases issued by The Crown Estate might threaten the future funding of wind projects.
Trade group Oil & Gas UK has rejected allegations that it is poised for conflict with offshore wind developers and a spokesperson for The Crown Estate said they were negotiating cooperation with the group to identify joint opportunities for developments in both sectors.
‘Renewable UK and Oil and Gas UK as well as The Crown Estate are working together to identify opportunities for cooperation and coexistence between the two energy industries,’ the spokesperson said.
‘In addition, we are working with government to encourage a clear and strategic approach that will ensure cooperation and achieve financial agreement.’
The specific leases that have been accused of containing pro-oil and -gas clauses are The Crown Estate’s Round 2 leases, the extensions to both Rounds 1 and 2, the Scottish Territorial Waters leases and Round Three.
Oil and Gas UK denied that it was planning legal action to defend its own offshore interests and said it was calling for all parties to work together.
‘Our call is for greater cooperation, not less and I can assure you that threatening legal action is furthest from our minds,’ said David Odling, energy policy manager at Oil and Gas UK.
‘In order to meet the UK’s future energy needs, we are going to have to invest in all forms of energy, including oil and gas and renewables. It is important therefore that the two industries – offshore hydrocarbons and wind – work together, particularly in areas such as Hornsea in the southern North Sea, where permissions have been granted for wind farm development in zones already licensed for many years for oil and gas exploration and production and where production of gas is widespread.’

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