UK Extractive Industries Transparency Initiative (EITI)
Source: data.gov.uk (2021-09-09)

The Extractive Industries Transparency Initiative (EITI) is an international standard for openness around the management of revenues from natural resources. It is designed to improve accountability and public trust for the revenues paid and received for a country’s oil, gas and mineral resources.

The Extractive Industries Transparency Initiative (EITI) reports covering payments and data for the UK extractives sector and a reconciliation of payments made by oil, gas, mining and quarrying companies for the UK extraction of raw materials and government receipts are now available on the [UK EITI website](https://www.ukeiti.org/about-us).

To access the data via the [UK EITI website](https://www.ukeiti.org/publications-reports), please put a tick in the “UK EITI Reports” box and click on the “Filter” box. Each UK EITI payments report will be listed. When you double click on the report title a list of the related data will also be listed and accessible.

UNITED KINGDOM EXTRACTIVE INDUSTRIES
TRANSPARENCY INITIATIVE (UK EITI)

UK EITI REPORT FOR 2014

April 2016

This Report has been prepared by UK EITI Multi Stakeholder Group (MSG) charged with the implementation of the Extractive
Industries Transparency Initiative in the United Kingdom in collaboration with the Independent Administrator (IA). This Report has
been prepared within the context of EITI reporting and is published for information purposes. The figures included within the
report have not been subject to specific audit procedures and accordingly neither the MSG nor the IA take responsibility for any
loss which may be incurred by any other party, should they rely on figures included within this report if such figures were later
discovered not to be accurate.

UK EITI report for 2014
Table of Contents

1. EXECUTIVE SUMMARY ........................................................................................ 5
2. APPROACH AND METHODOLOGY ..................................................................... 9
2.1. Payment Flows ............................................................................................... 9
2.2. Government Agencies .................................................................................. 11
2.3. Materiality Threshold .................................................................................... 11
2.4. Completeness of Data .................................................................................. 11
2.5. Material Deviation ......................................................................................... 12
2.6. Methodology ................................................................................................. 12
3. INFORMATION ON THE UK EXTRACTIVE INDUSTRIES .................................. 16
3.1 The Extractive Industries in the UK .............................................................. 16
3.2 Oil and Gas ................................................................................................... 22
3.3 Mining and Quarrying ................................................................................... 35
3.4 Beneficial Ownership .................................................................................... 47
3.5 The UK’s Budget and Audit Processes ......................................................... 48
4. RECONCILIATION RESULTS ............................................................................. 49
4.1. Payment Reconciliation between Extractive Companies and Government
Agencies ............................................................................................................... 49
4.2. Unreconciled Differences ............................................................................. 50
5. INDEPENDENT ADMINISTRATOR’S RECOMMENDATIONS TO THE MSG .... 51
ANNEXES ................................................................................................................. 54
Annex 1: Detail of mining & quarrying receipts ..................................................... 55
Annex 2: Detail of RFCT & SC by company .......................................................... 56
Annex 3: Detail of PRT by company ..................................................................... 57
Annex 4: Detail of petroleum licence fees by company and licence number ......... 59
Annex 5: Beneficial ownership reporting form ....................................................... 69
Annex 6: Reporting templates ............................................................................... 70
Annex 7: Persons contacted or involved in the 2014 UK EITI reconciliation ......... 79

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LIST OF ABBREVIATIONS
BGS
British Geological Survey
billion
one thousand million or 109
BIS
Department for Business, Innovation & Skills
BMAPA
British Marine Aggregate Producers Association
BO
Beneficial ownership
BODF
BO declaration form
boe
barrel of oil equivalent
Brent
as applied to trading, the standard quality of oil in Europe and elsewhere comprising a blend of four
North Sea crudes from the Brent, Ekofisk, Forties and Oseberg fields
brownfield
an oil or gas field already in production
CA
Coal Authority
CFA
Cross Field Allowance
CNS
Central North Sea
CT
Corporation Tax
DCLG
Department for Communities and Local Government
DECC
Department of Energy & Climate Change
DETI
[Northern Ireland] Department for Enterprise, Trade and Investment
DOE
Department of the Environment
DRD
Decommissioning Relief Deed
E&P
Exploration and Production
EITI
Extractive Industries Transparency Initiative
FYAs
First Year Allowances
GB
Great Britain
GDP
Gross Domestic Product
GIS
Geographic Information System
GPA
Group Payment Arrangement
GVA
Gross Value Added
HM
Her Majesty’s
HMRC
Her Majesty’s Revenue and Customs
IA
Independent Administrator
LAs
Local Authorities
LPA
Local Planning Authority
M&Q
Other Mining & Quarrying
MEA
Mineral Extraction Allowance
MMO
Marine Management Organisation
MPA
Mineral Planning Authority
MPL
Mineral Prospecting Licence
MSG
UK EITI Multistakeholder Group
MTOE
Million Tonnes of Oil Equivalent
NAO
National Audit Office
NIEA
Northern Ireland Environment Agency
NPPF
National Planning Policy Framework

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UK EITI report for 2014
LIST OF ABBREVIATIONS
NRW
Natural Resources Wales
NYM
North York Moors
OBR
Office for Budget Responsibility
OGA
Oil & Gas Authority (as inheritor body of oil and gas functions from DECC)
ONS
Office for National Statistics
PEDL
Petroleum Exploration and Development Licence
PEP
Politically Exposed Person
PMA
Plant and Machinery Allowances
PRT
Petroleum Revenue Tax
PSC
Persons exercising Significant Control
RDA
Research and Development Allowance
RFCT
Ring Fence Corporation Tax
RFES
Ring Fence Expenditure Supplement
SC
Supplementary Charge
SEPA
Scottish Environment Protection Agency
SPD
Supplementary Petroleum Duty
TCE
The Crown Estate
ToR
Terms of Reference
UCG
Underground Coal Gasification
UK
United Kingdom
UKCS
UK Continental Shelf

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1. EXECUTIVE SUMMARY
The Extractive Industries Transparency Initiative (EITI) is a global standard of
transparency that, for implementing countries, requests oil, gas and mining
companies to disclose what they pay to the government; and the government to
disclose what it collects from these companies. The initiative aims to encourage
governments to be more transparent in publicising the benefits they receive from
their country’s natural resources.
The EITI Global Board published the ‘EITI Standard’ in May 2013. An updated
version of the standard was published in February 2016. The EITI Standard sets
minimum requirements that implementing countries must meet, with the fundamental
aspect of revenue transparency at its core. At the national level, EITI is governed by
a multi-stakeholder group (MSG) composed of representatives from the government,
the extractive industries and civil society. This oversight body sets the direction for
EITI implementation by formulating country objectives, engaging stakeholders and
publishing an annual EITI report. The MSG is also responsible for selecting an
Independent Administrator (IA) that is responsible for reconciling data on company
payments to government receipts.
This first UK EITI report contains detailed information relating to £3,233 million
of revenues received by UK Government Agencies from extractive companies
in 2014 for a range of payments included within the scope of EITI. The report
shows a breakdown of this sum between the oil & gas and mining & quarrying
sectors, between the different payment types and between the Government
Agencies that received those payments. A total of 71 extractive companies
participated in compiling the report.
The IA has been able to reconcile £2,431 million of those payments to disclosures
made by companies. The report shows the breakdown of this sum between
companies and is the first time such information has been made available to the
public. Information on the unreconciled amounts has also been included in this
report.
A number of features of the global EITI Standard and how it interacts with the UK
legislative framework have presented the MSG and the IA with challenges in meeting
the requirements of the EITI requirements. Those features, which are described in
more detail within the report, include:
Voluntary reporting: The absence of legislation requiring companies to disclose their
payments results in UK EITI being a voluntary process for companies.
Taxpayer confidentiality: Legislation prevents HMRC from disclosing confidential
taxpayer information. HMRC was therefore able to provide information relating to tax
payments received only from extractive companies which gave their consent through
a waiver of confidentiality. This constraint also had an impact on the MSG’s ability to
target the EITI process at companies that made material payments.
Oil & Gas Sector Taxes: Companies in the oil & gas sector are subject to a separate
fiscal regime on their UK extractive activities. Whilst this separation aids the

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identification of taxes that are within the scope of UK EITI, the payment mechanism
established by HMRC enables companies to combine payments that relate to their
extractive activities with payments that relate to other activities. This required
additional work on the part of HMRC and companies to distinguish the extent to
which payments related to the extractive activities.
Mining & Quarrying Sector Taxes: There is no separate fiscal regime for UK mining
and quarrying activities. For HMRC, this means that it cannot identify all of the
companies that are engaged in those activities and the payments that those
companies made. For companies, the lack of a separate fiscal regime for extractive
activities means that the reported payments can relate to both extractive and non-
extractive activities.
Despite these challenges, the MSG is encouraged by the level of company
participation, the proportion of payments received by government that have been
reported by companies, the positive outcome of the reconciliation process and the
level of collaboration between stakeholders that led to the production of this report.
The MSG’s insights in relation to each of these areas are as follows:
Company Participation: Most of the companies that made material payments that are
within the scope of EITI have reported their payments. A small number of oil and gas
companies that made material payments in 2014 did not disclose their payments to
the IA. Whilst a small number of mining and quarrying companies also did not
disclose their payments, the exclusion of those payments from this report is not
considered to have a material impact on the reported figures. Finally, the taxpayer
confidentiality constraint led to a large number of companies being sent templates to
try to capture all in-scope companies although in practice many such companies had
not made material payments during the year.
Payment Disclosures: Of the £3,233 million of in-scope payments received by
Government Agencies in 2014, £2,431 million has been reported by companies. The
balance (£802.08 million) comprises tax payments made by oil & gas companies that
did not report their payments to the IA, an unreconciled difference for non-tax mining
and quarrying payments of £0.15 million, £10.09 million of non-tax payments made
by oil & gas and mining & quarrying companies that did not report their payments to
the IA and £0.09 million of payments to local authorities unilaterally reported by
mining and quarrying companies.
Reconciliation: Except for the small differences of £0.15 million and £0.09 million
mentioned above, the IA was able to reconcile all of the payments that were reported
by companies (£2,431 million) to the amounts disclosed by the relevant Government
Agencies for each of those companies to within the £10,000 threshold established by
the MSG.
Collaboration: Preparation of this report required a high degree of collaboration
between government officials, industry representatives, representatives of civil
society organisations and the companies that agreed to provide their payment data.
The MSG is grateful to all of these stakeholders and recognises the importance of
maintaining and improving this level of collaboration for future reporting periods. The
MSG will therefore conduct a thorough review to identify ways in which the UK EITI

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process can be made more efficient and effective to ensure that this high level of
collaboration is sustained.
In conclusion, the MSG is grateful to all the companies that participated in the EITI
process for 2014. We appreciate that the absence of legislation in the UK requiring
companies to participate in EITI means that participation was voluntary. These
companies have chosen to support increased transparency in the sector through
their participation in the UK’s EITI process.
Whilst the level of company participation in the first reporting period is encouraging, it
is clear to the MSG that more work needs to be done to achieve compliance with the
EITI Standard. To meet that objective, it is essential that all companies within the
scope of the UK EITI process participate.
Further work is required to ensure that, to the extent possible, the UK EITI process is
focused on extractive companies that have made payments in excess of the
materiality threshold set by the MSG. Reducing the amount of work involved in
interacting with companies that did not make material payments will enable the
MSG, and the IA, to focus their efforts on the second priority issue, which will involve
encouraging the companies that did not participate in EITI for the first reporting
period, and which did make material payments, to participate in future periods.
Summary of Extractive Industries Payments to UK Government in 2014
The tables below summarises the total in-scope amounts reported as having been
received by Government Agencies and/or reported as having been paid by extractive
companies during the calendar year 2014.
There are minor differences in the totals reported here and in the first chapter for
PRT and RFCT/SC which come from published HMRC estimates.1

1 Source: HM Revenue & Customs (HMRC), Tax Receipts and National Insurance Contributions for the UK,
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk

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UK EITI report for 2014

(in £ million)
Type of payee:
Oil &
Gas
Oil & Gas Oil & Gas
Other
Mining &
Quarrying
Other
Mining &
Quarrying
Other
Mining &
Quarrying
Other
Mining &
Quarrying
All
Recipient:
OGA
HMRC
HMRC
HMRC
TCE
CA
LAs
All
Payment
stream:
Licence
Fees
PRT
RFCT &
SC
Mainstream
CT
Payments
to TCE
Payments
to CA
S.106 etc
payments
Total
payments
Total
68.58
614.23
2,490.57
43.44
15.21
1.10
0.09
3,233.24
of which:
reconciled
60.75
587.78
1,725.40
43.44
13.69
0.10
-
2,431.16
not reconciled
7.83
26.46
765.17
-
1.52
1.00
0.09
802.08

(in £ million)
Type of payee:
Oil & Gas
Other
Mining &
Quarrying
All
All
All
All
All
All
Recipient:
All
All
OGA
HMRC
TCE
CA
LAs
All
Payment stream:
Total
payments
Total
payments
Total
payments
Total
payments
Total
payments
Total
payments
Total
payments
Total
payments
Total
3,173.39
59.85
68.58
3,148.25
15.21
1.10
0.09
3,233.24
of which:
reconciled
2,373.93
57.23
60.75
2,356.62
13.69
0.10
-
2,431.16
not reconciled
799.46
2.62
7.83
791.63
1.52
1.00
0.09
802.08

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2. APPROACH AND METHODOLOGY

2.1. Payment Flows
The MSG considered which revenue streams should be included within the scope of
the UK EITI reconciliation process. A sub-group of the MSG prepared a paper listing
out potential revenue streams which could be included within the scope. The tax
authorities and MSG representatives from the mining and quarrying trade bodies
gave presentations to add context to the discussion of this paper.
The MSG agreed that the following payment/revenue streams would be in scope for
the UK EITI reconciliation exercise (more detailed descriptions can be found in the
fiscal regime and revenue streams sub-sections in chapter 3):
Oil and gas sector
Direct taxes specific to UK oil and gas production

Ring Fence Corporation Tax (RFCT): Paid to HMRC. A profits tax similar to
corporation tax (CT) but with different treatment of losses, 100% first year capital
allowances and (in 2014) a higher rate of 30% of all profits.
Supplementary Charge (SC): An addition to corporation tax, levied during 2014 at
the rate of 32%. Profits are computed in the same way as for ring-fence corporation
tax, but finance costs are not deductible for supplementary charge purposes and in
2014 there were additional deductions from field allowances.
Petroleum Revenue Tax (PRT): A field-based tax on profits which applies only to
fields given development consent before 16 March 1993. In 2014, PRT was levied at
a rate of 50% and was deductible for the purposes of computing profits charged to
ring-fence corporation tax and the supplementary charge.
Licence and other payments

Petroleum licence fees: Paid in 2014 to DECC (now the OGA). Licences are
granted to “search and bore for and get” petroleum. Each licence confers such rights
over a limited area and for a limited period. There are also exploration licences. The
MSG decided that licences should be reported at licence level, which is equivalent to
project reporting. All payments were disclosed by the OGA to the IA and are reported
in Annex 4.
Notes:
i. The MSG decided that any interest or penalty payments should be included as an
element of the payment (or repayment) with which they are associated.
ii. Larger oil and gas companies pay mainstream CT, RFCT and SC in instalments
“in-year” (based on estimates). A number of these instalments will consist of a
single payment covering all three taxes, which are allocated only at a later date,
too late to be included within the reconciliation. All three taxes are taxes on profits
so can be treated as a single revenue stream for EITI purposes, but an additional
complication arises because mainstream corporation tax paid by oil and gas
producers is out of scope of the UK EITI so should not be reported.

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iii. For 2015, to be covered by the second year report, companies have been given
the option to make two payments, one being the mainstream corporation tax
payment (out of scope) and the other being the RFCT and SC payment (within
scope). Payments had already been made for the 2014 calendar year before the
methodology was agreed so, as an exception for the 2014 reconciliation,
companies were allowed to confirm the split between in-scope and out-of-scope
payments themselves.
iv. The MSG decided that PRT should be reported at the project level (by field).
However, in reality many companies pay the liability for a number of fields in one
payment. To accommodate the MSG’s decision HMRC agreed to provide a
breakdown of the cash payments received by company and by field and to provide
these data to the IA.
Mining and quarrying sector
Taxes
Corporation Tax: Paid to HMRC: Direct tax paid on company profits.
The UK allows for Group Payment Arrangements (GPAs) under which HMRC offer
companies in the same group the facility to have one nominated company pay tax on
behalf of all of them. Joining a GPA is optional, but the majority of mining and
quarrying companies operating in the UK have used this option. The consequence is
that reported payments may relate to certain non-extractive activities.
Licence and other payments
Payments to the Coal Authority:

• Statutory licences, operating or conditional for surface and underground
coal gasification.
• Production related rents under coal leases.
• Fees and royalties for taking digging and carrying away coal during
development (not coal related).
• Payments for coal rights.
Payments to The Crown Estate:

• Production royalty payments for marine aggregates and land based mineral
extraction.
• Mineral rights to potash under the seabed.
• Mineral leases for land based mineral extraction operations.

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Other taxes and payments made to government

Payments for Planning Obligations paid to Local Planning Authorities. Monetary
payments to Local Planning Authorities as part of planning obligations.
There is no central record of planning obligation payments, therefore the MSG
agreed these payments would be reported unilaterally by companies.
Note:
i.
The MSG decided that any interest or penalty payments should be included
as an element of the payment with which they are associated.
2.2. Government Agencies
The Government Agencies required to report for the 2014 EITI Report are:
 Her Majesty’s Revenue and Customs (HMRC)
 Oil and Gas Authority (OGA) [as the inheritor body of key oil and gas
functions from the Department of Energy and Climate Change (DECC)]
 The Crown Estate (TCE)
 The Coal Authority
2.3. Materiality Threshold
The MSG took an early decision to shadow the Reports on Payments to Government
Regulations 2014 where practicable. These regulations require all EU large and
listed extractives companies to publish the payments they make to governments in
all the countries where they operate.
For EITI in line with the regulations, the materiality threshold is set at £86,000 and
will apply to each revenue stream at group or individual company level. The
threshold applies to the total of net payments and repayments – once the threshold
has been reached in a revenue stream, then all individual payments within that
stream will be included. This means that individual payments below £86,000 are
included within the revenue stream total, once the threshold has been reached.
2.4. Completeness of Data
Taxpayer confidentiality provisions are established in UK law and are set out in the
Commissioners for Revenue and Customs Act 20052. These provisions prevented
HMRC from providing the IA or the MSG with a list of companies that were “in scope”
for EITI and had made material tax payments to the UK Government during 2014.
Except in the case of oil and gas companies, it is anyway not possible for HMRC to
know how much, if any, of the corporation tax they pay is in respect of extractive
activities, so they could not provide a list of “in scope” companies.
In the absence of this list of companies from the tax authorities, the MSG considered
alternative ways to contact companies that may need to report under the EITI. The
2 www.gov.uk/government/uploads/system/uploads/attachment_data/file/209602/HMRC_s_Policy_and_Legal_Framework_08-
05-13.pdf

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MSG agreed on two different approaches, the first relating to oil and gas companies,
the second relating to mining and quarrying companies:
Oil and gas companies
The MSG decided that the IA should send reporting templates and confidentiality
waivers to all companies that hold petroleum licences. Information about who holds a
petroleum licence is already in the public domain. These licences were administered
in 2014 by the Department of Energy and Climate Change (DECC) with
responsibility transferring to the Oil and Gas Authority (OGA) from 1 April 2015. This
meant that templates and waivers were distributed to a significantly higher number of
oil and gas companies than those that had made material payments during 2014.
Companies were asked to return confidentiality waivers to the IA so that HMRC, The
Crown Estate and the Coal Authority could release details of receipts to the IA. This
would include verifying when payments were below the £86,000 materiality threshold
agreed by the MSG – see section 2.6 below. In many cases, once a company
realised it did not have to return the template as its payments were not deemed to be
material for the purposes of UK EITI, it did not return the confidentiality waiver.
HMRC has confirmed that six oil and gas companies made material tax payments in
2014 but have not returned waivers or completed templates.
Mining and quarrying companies
Oil and gas production apart, there is no specific tax regime for the minerals sector in
the UK. This means that mining and quarrying companies pay mainstream
corporation tax on all their profits with no requirement to identify separately the tax
paid on their extractive activities. Minerals representatives on the MSG agreed a
methodology with the MSG to identify companies that were thought to account for
80% by volume of the total output of the UK mining and quarrying sector. A list was
provided to the IA and reporting templates and confidentiality waivers were sent to
39 mining and quarrying companies.
2.5. Material Deviation
The MSG agreed that the IA should reconcile differences of over £10,000.
2.6. Methodology
The reconciliation process consisted of the following steps:
• analysis of the reconciliation scope prepared by the MSG;
• collection of payment data from Government Agencies and extractive
companies which provide the basis for the reconciliation;
• comparison of amounts reported by Government Agencies and extractive
companies to determine if there are discrepancies between the two sources of
information; and
• contact with Government Agencies and extractive companies to resolve the
discrepancies.

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Analysis of the reconciliation scope
The IA, Moore Stephens, undertook a preliminary analysis in accordance with their
Terms of Reference for the purpose of reviewing the scope of the reconciliation
exercise for the 2014 calendar year. This preliminary analysis covers the UK’s
extractive industries and related entities (Government Agencies and extractive
companies).
Sub-groups were created within the UK EITI MSG in order to work on different
aspects of the reconciliation exercise such as the scope, the reconciliation activities
and the EITI report content. Moore Stephens reviewed all work carried out by sub-
groups and provided recommendations where they noted deviations to the EITI 2013
Standard or where they felt improvements would make the EITI reporting process
more efficient.
The preliminary analysis included:
• acquiring a good understanding of the extractive resources and industries of the
country;
• reviewing the fiscal regime and other relevant revenue streams applicable to the
extractive sector including in-kind payments, social payments, infrastructure
provisions and other bartering agreements;
• reviewing existing data from the relevant period to determine significant revenue
streams;
• reviewing materiality thresholds for revenue streams set by the MSG;
• identifying extractive companies which make material payments within the
scope of the agreed material revenue streams;
• identifying Government Agencies which collect material revenues within the
scope of the agreed material revenue streams;
• reviewing the reporting template to be used; and
• acquiring a good understanding of assurances to be provided by reporting
entities to ensure the credibility of the data made available to us.
Moore Stephens also carried out:
• interviews with several entities involved in the EITI process in order to collect
relevant information and documentation necessary to the achievement of the
objectives of our review;
• two workshops for Oil & Gas Reporting entities in Aberdeen and London on 1
and 2 July 2015 respectively to present the:
 reconciliation process
 reconciliation scope
 reporting templates and instructions
 reconciliation issues;
• one Webinar for Mining & Quarrying Reporting entities on 22 July 2015.
The reconciliation of cash flows for the year ended 31 December 2014 is based on
the reconciliation scope approved by the MSG.

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The IA’s recommendations are set out in Chapter 5 of this report to assist the MSG
in its future reconciliation exercises, and relating to:
• a reporting template for government agencies;
• the reporting unit (£);
• the materiality threshold for the revenue streams;
• overall coverage of the report;
• determining in scope companies in the mining & quarrying sector; and
• register of licences for the mining sector.

Collection of payment data
The MSG developed instructions, including reporting templates and reporting
guidelines which can be found here: https://www.gov.uk/guidance/extractive-
industries-transparency-initiative.
The reporting package included:
• Reporting template
• EITI guide
• Step-by-step guide
• Beneficial ownership guide
• Confidentiality waiver
The reporting template was sent electronically to all extractive companies by end of
June 2015. This included 220 companies: 181 Oil & Gas companies and 39 Mining
and Quarrying companies. Extractive companies were asked to report directly to the
IA using the email address xxx@xxx.xx, to which they were also
requested to direct any queries on the reconciliation exercise. Extractive companies
were also encouraged to visit the UK EITI website for information and guidance on
the EITI process at https://www.gov.uk/extractive-industries-transparency-initiative.
Reliability and Credibility of Data Reported
Extractive companies were asked to have their reporting templates signed by a
senior official.
For Government Agencies, the MSG accepted that rules of Government Accounting
in the UK applied and the data to be reported was agreed with the IA in most
instances.
Reconciliation and Investigation of Discrepancies
The process of reconciling the data and investigating discrepancies was carried out
between 29 October 2015 and 18 March 2016. In carrying out the reconciliation, the
IA performed the following procedures:
• figures reported by extractive companies were compared item-by-item to
figures reported by Government Agencies. As a result, all discrepancies
identified were listed item by item in relation to each Government Agency and
extractive company;

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• where data reported by extractive companies agreed with the data reported by
the Entities, the Government figures were considered to be confirmed and no
further action was undertaken; and
• the Government Agencies and the extractive companies were asked to provide
supporting documents and/or confirmation for any adjustment to the information
provided on the original data collection templates.
At the end of the reconciliation process, only one material payment was not
reconciled to within the £10,000 tolerance agreed by the MSG.

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INFORMATION ON THE UK EXTRACTIVE INDUSTRIES

3.1 The Extractive Industries in the UK
The extractive sector makes a sizeable contribution to the UK economy, while
supporting substantial added value in downstream industries and related supply
chains. Currently by far the largest economic contribution comes from offshore oil
and gas production, but coal, aggregates and other mineral extraction remain
significant subsectors. There is currently no UK state participation in the extractive
industries.
In some of the summary information below, coal is grouped with oil and gas.
However, for the rest of this chapter, oil and gas (Section 3.2) are treated separately
from mining and quarrying, including coal (Section 3.3).
Value of the sector
The table below shows gross value added (GVA) for the mining and quarrying sector
in UK national statistics, which includes fossil fuel production, other mining and
quarrying, and mining support service activities. (Mining support services are
essential to, but not themselves part of, the extractive sector for EITI purposes.) The
table covers the years 2010–14 and gives for each subsector its percentage share of
total UK GVA in 2014.3
Gross Value Added (£ million) 4
Year
Mining
of coal
and
lignite
Extraction
of crude
petroleum
and
natural
gas
Other
mining
and
quarrying
Mining
support
service
activities
{b}
Total
mining
and
quarrying
etc {a}
of which
Extractive
{c] =
{a} - {b}
Total
GVA
Total
GDP {d}
of which
Extractive
GVA
{c} / {d}
2010
993
25,134
2,127
2,134
30,389
28,255
1,397,744
1,555,548
1.8%
2011
399
27,941
2,524
2,669
33,534
30,865
1,443,281
1,619,480
1.9%
2012
380
23,558
3,015
2,832
29,786
26,954
1,485,776
1,665,213
1.6%
2013
381
23,199
3,037
2,820
29,438
26,618
1,546,914
1,734,949
1.5%
2014
298
18,973
3,321
2,991
25,584
22,593
1,612,905
1,816,439
1.2%
%*
0.0%
1.2%
0.2%
0.2%
1.6%
1.4%
100.0%
* The percentages for 2014 are shares of total GVA for all industries.
Government revenues
UK Government accounts cover the period April–March rather than a calendar year,
so some of the data on government revenues in this chapter are of necessity on that
basis. Where possible, calendar year data is (also) provided, as in the table below.5

3 Source: Office for National Statistics (ONS), Gross Domestic Product Preliminary Estimates, Quarter 3 (July to Sept) 2015,
http://www.ons.gov.uk/ons/rel/gva/gross-domestic-product--preliminary-estimate/q3-2015/stb-gdp-preliminary-estimate.html.
Generally, in this chapter, unlike in the ONS table and some other official sources, a terminological distinction is made between
“oil and gas” and “mining and quarrying”, the latter comprising the extraction of coal and of all non-hydrocarbon minerals, and
excluding oil and gas.
4 Source: ONS, Gross Domestic Product Preliminary Estimate, Quarter 3 (July to Sept) 2015, published 27 October 2015.
5 Source: HM Revenue & Customs (HMRC), Tax Receipts and National Insurance Contributions for the UK,
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk

| P a g e 16

UK EITI report for 2014
UK Government CT Revenues
£ million
Total
Corporation
Tax
Of which
offshore
Petroleum
Revenue Tax
Total Upstream
Oil and Gas
Total HMRC
receipts
Upstream Oil and
Gas Share of Total
(%)
2010-11
43,040
6,864
1,458
8,322
453,614
1.8%
2011-12
43,130
8,840
2,032
10,872
472,315
2.3%
2012-13
40,484
4,393
1,737
6,130
473,779
1.3%
2013-14
40,327
3,556
1,118
4,674
493,646
0.9%
2014-15
43,005
2,073
77
2,150
515,348
0.4%

2010
42,148
6,232
1,349
7,581
444,761
1.7%
2011
43,231
8,270
1,775
10,045
469,554
2.1%
2012
40,726
5,847
2,106
7,953
470,767
1.7%
2013
40,418
3,862
1,296
5,158
489,334
1.1%
2014
41,577
2,5386
5697
3,107
506,570
0.6%
This table includes an estimate of the amount of corporation tax (CT) paid in respect
of upstream oil and gas production (i.e. the exploration and production stage)
activities (described for simplicity as “offshore” CT) and of petroleum revenue tax
(PRT). The amount of CT paid by other extractive industries is not identified in UK
Government accounts, because CT is a corporate tax so the amounts payable in
respect of mining and quarrying activities (excluding the production of oil and gas)
cannot be estimated. Estimates for mining and quarrying published annually by
HMRC include oil and gas and mining support service activities and are on a liability
basis for financial years rather than a cash basis for calendar years; the latest
published estimate relates to 2013-14. In addition to taxation, the extractive sector in
the UK also pays much smaller amounts by way of licence fees. These payments
are summarised later in this sub-section.
The level of government revenues from taxes on production of oil and gas is
dependent on rates of taxation and adjusted profitability, driven by a combination of
production volumes, commodity prices and cost levels. Historical data by financial
year since 1976/77 on upstream oil and gas taxes including licence fees are shown
in constant price terms in Figure 1.

6 The RFCT/SC figure contains a different reduction for estimated tax on non-upstream activities compared to EITI data.
7 The PRT figure has a timing difference for the December payments compared to published EITI data that is based on when
the payment was made by the business rather than received by Government.

| P a g e 17

UK EITI report for 2014
Figure 1. Government revenues from UK oil and gas production (£ billion,
2014/15 prices) 8
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
1976/77
1977/78
1978/79
1979/80
1980/81
1981/82
1982/83
1983/84
1984/85
1985/86
1986/87
1987/88
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
Licence Fees
Royalty
Supplementary Charge
Ring Fence Corporation Tax
Supplementary Petroleum Duty
Petroleum Revenue Tax

Income from fees for petroleum licences totalled £66.9 million in 2014/15 (£67.7
million in 2013/14).9 For calendar year 2014, total licence fees were £68.6 million. In
2014 the Coal Authority received £238,000 in licensing fees and £863,000 in rents,
royalties and rights.10 Government revenues received by The Crown Estate for
marine aggregate dredging licence and terrestrial minerals fees in 2014 were
£15,210,000.
For more information on the specific tax regimes for oil and gas, and mining and
quarrying, respectively, see sub-sections 3.2.8 and 3.3.5.
Section 106 payments (in England, plus equivalent payments made elsewhere in the
UK) to local authorities relating to the granting of planning permission for mining
operations, to the extent that these were captured in data provided for this report,
totalled £94,000 in 2014 as reported by Aggregate Industries UK Ltd, a mining &
quarrying company.
There are no barter arrangements between extractive companies and the
government in the UK.
Forecasts of UK Government oil and gas revenues are published by the independent
Office for Budget Responsibility (OBR), covering the medium term budget horizon
(currently to 2020/21) and longer-term outlook (currently to 2040/41).11 The OBR
also publishes details of its underlying forecasts of oil and gas production, prices and
expenditure broken down between exploration and appraisal, development capital
expenditure, operating costs and decommissioning costs.
8 Source: Oil and Gas Authority (OGA), Oil and gas: tax and government revenues, https://www.gov.uk/guidance/oil-tax-
government-revenues
9
Department
of
Energy
and
Climate
Change
(DECC),
Annual
report
and
accounts:
2014
to
2015,
https://www.gov.uk/government/publications/decc-annual-report-and-accounts-2014-to-2015
10 Source: Coal Authority, email communication.
11 OBR, Economic and Fiscal Outlook, July 2015, http://budgetresponsibility.org.uk/economic-fiscal-outlook-july-2015/; OBR,
Fiscal Sustainability Report, June 2015, http://budgetresponsibility.org.uk/fiscal-sustainability-report-june-2015/

| P a g e 18

UK EITI report for 2014
For projections of future oil and gas production volumes, and the production outlook
for coal and non-hydrocarbon minerals, see Sections 3.2 and 3.3 respectively.
3.1.1. Exports
Data on the volume and value of exports (and imports) of fossil fuels is tabulated
below, together with the volume and value of indigenous production.12 The UK
exports coal, oil and natural gas but with the decline in indigenous production of all
three fossil fuels imports more of each and is thus a net importer overall.13
Volume & Value of UK Fossil Fuel Exports, 2010-14
Volume of exports (mtoe)

Value of exports (£ million)
Year
Coal
Crude Oil
Natural Gas
Oil & Gas
Coal
Crude Oil
Natural Gas
Oil & Gas
2010
0.537
45.999
15.168
61.167
85
16,025
2,505
18,530
2011
0.370
36.770
15.794
52.565
60
16,830
3,555
20,385
2012
0.368
33.837
12.384
46.221
55
16,435
2,715
19,150
2013
0.447
36.192
9.429
45.622
90
17,460
2,510
19,970
2014
0.319
33.865
10.998
44.863
55
14,670
2,005
16,675

Volume of imports (mtoe)

Value of imports (£ million)
Year
Coal
Crude Oil
Natural Gas
Oil & Gas
Coal
Crude Oil
Natural Gas
Oil & Gas
2010
17.723
60.135
50.951
111.086
2,080
21,165
7,120
28,285
2011
21.399
63.471
50.600
114.071
3,050
30,115
9,630
39,745
2012
29.061
66.090
47.250
113.340
3,315
31,270
10,045
41,315
2013
32.122
64.675
46.011
110.687
3,235
30,100
10,985
41,085
2014
27.289
58.852
41.029
99.881
2,235
24,145
7,250
31,395

Volume & Value of UK Net Fossil Fuel Exports & Indigenous Production, 2010-
14
Volume of net exports (mtoe)

Value of net exports (£ million)
Year
Coal
Crude Oil
Natural Gas
Oil & Gas
Coal
Crude Oil
Natural Gas
Oil & Gas
2010
(17.185)
(14.136)
(35.783)
(49.919)
(1,995)
(5,140)
(4,615)
(9,755)
2011
(21.029)
(26.701)
(34.805)
(61.506)
(2,990)
(13,285)
(6,075)
(19,360)
2012
(28.693)
(32.253)
(34.867)
(67.119)
(3,260)
(14,835)
(7,330)
(22,165)
2013
(31.675)
(28.483)
(36.582)
(65.065)
(3,145)
(12,640)
(8,475)
(21,115)
2014
(26.970)
(24.987)
(30.031)
(55.018)
(2,180)
(9,475)
(5,245)
(14,720)

Volume of indigenous production (mtoe)

Value of indigenous production (£ million)
Year
Coal
Crude Oil
Natural Gas
Oil & Gas

Coal
Crude Oil
Natural Gas
Oil & Gas
2010
11.425
68.983
57.196
126.179
1,065
22,610
7,755
30,365
2011
11.532
56.902
45.289
102.191
1,175
26,525
7,890
34,415
2012
10.583
48.756
38.925
87.681
990
23,685
7,840
31,525
2013
7.973
44.468
36.523
80.991
535
21,330
7,755
29,085
2014
7.289
43.705
36.583
80.288
450
18,185
6,655
24,840
Data for 2014 on the volume and value of exports, imports and production of non-
hydrocarbon minerals (i.e. excluding oil, gas and coal) are not yet available. For the
12 Source: DECC, Digest of UK Energy Statistics 2015, https://www.gov.uk/government/collections/digest-of-uk-energy-
statistics-dukes
13 Source: Digest of UK Energy Statistics 2015.

| P a g e 19

UK EITI report for 2014
latest available data, for 2013, and an explanation of why 2014 data are not currently
available, see Section 3.3.
3.1.2. Employment
The extractive industries are typically capital rather than labour intensive and
represent a smaller share of the workforce than of GVA. In the table below, mining
support service activities are included, even though they are not part of the extractive
sector for EITI purposes, because regional data is not available for fossil fuel
production and other mining and quarrying separately. Most of the first column in the
table comprises employment related to extraction of oil and gas rather than coal.14
Workforce estimates from Business Register and Employment Survey (in
thousands)
Year
Mining of coal and
lignite
Extraction of crude
petrol/gas [SIC (2007)
Divisions 05-06]
Mining of metal ores
Other mining and
quarrying [SIC (2007)
Divisions 07-08]
Mining
support
service
activities
[SIC (2007)
Division 09]
Of which
Extractive
[SIC (2007)
Divisions
05–08]
Total mining
& quarrying
etc [SIC
(2007)
Section B]
Total
industries
[SIC (2007)
Section A-T]
2010
19
19
26
37
63
31,124
2011
21
19
25
40
65
31,323
2012
24
22
30
46
76
31,654
2013
22
18
30
40
70
32,074
2014
21
18
30
39
68
33,156
2014*
0.1%
0.1%
0.1%
0.1%
0.2%
100.0%
* The percentages for 2014 are shares of the total workforce for all industries.
All extractive employment shown in the table above is in the private sector. Office for
National Statistics (ONS) estimates exclude employees of first tier contractors
working offshore in roles that would otherwise be within extractive companies and
tend to exclude small groups of employees working in support activities. The data
also excludes employment associated with the production of mineral products.
Extractive industry employment levels have fallen markedly from their historic peak
decades ago, mainly due to the decline of the coal industry.
Further details of employment supported directly and indirectly by the oil and gas
sector are available from various Oil & Gas UK (industry association) publications.15
3.1.3. Regional location of extractive industries
Almost all UK oil and gas production comes from fields located offshore. Maps
showing the location of oil and gas fields in Great Britain and on the UK Continental
Shelf (UKCS) are published online by the Oil and Gas Authority (OGA).16 These
maps also show which areas are under licence offshore and onshore in Great
Britain. A map showing which areas are under licence in Northern Ireland is
14 Source: ONS Labour Market Statistics, December 2015, http://www.ons.gov.uk/ons/rel/lms/labour-market-
statistics/december-2015/statistical-bulletin.html
15 Oil & Gas UK, http://oilandgasuk.co.uk/
16 OGA, Oil and gas: offshore maps and GIS shapefiles, https://www.gov.uk/guidance/oil-and-gas-offshore-maps-and-gis-
shapefiles, and Oil and gas: onshore maps and GIS shapefiles, https://www.gov.uk/guidance/oil-and-gas-onshore-maps-and-
gis-shapefiles

| P a g e 20

UK EITI report for 2014
published by the Northern Ireland Department of Enterprise, Trade and Investment
(DETI)17 but there is as-yet no production.
The majority of coal production comes from sites in Scotland, England and South
Wales, as mapped by the Coal Authority.18 Mining and quarrying of non-hydrocarbon
minerals are widely distributed across the UK. There are no significant hard-rock
aggregate deposits in the South-East, so these materials are transported from
further afield in the Midlands and the West Country to this important market.
The broad geographic spread of employment in the UK extractive sector (including
oil and gas) is illustrated in the table and chart below. Because of data limitations,
these include mining support service activities. The concentration of employment in
Scotland reflects the dominance of the Aberdeen area in terms of oil and gas-related
activity.
Figure 2. Mining & quarrying [SIC (2007) Section B] regional share of mining
workforce (2014)
Region
2014

(thousand)
(share)
Scotland
38
55%
Yorkshire and The
Humber
5
7%
East Midlands
4
6%
South East
4
6%
London
4
6%
South West
3
4%
North East
2
3%
North West
2
3%
East of England
2
3%
Wales
2
3%
Northern Ireland
2
3%
West Midlands
1
1%
United Kingdom
69
100%
3%
3% 7%
6%
1%
3%
6%
6%
4%
3%
55%
3%
North East
North West
Yorkshire and The Humber
East Midlands
West Midlands
East of England
South East
London
South West
Wales
Scotland
Northern Ireland
For further details of the geographical location of UK oil, gas and minerals
production, see Sections 3.2 and 3.3.

17 Department of Enterprise, Trade and Investment (DETI), Petroleum Licensing,
https://www.detini.gov.uk/publications/petroleum-licence-map
18 Coal Authority, Interactive Map, http://mapapps2.bgs.ac.uk/coalauthority/home.html

| P a g e 21

UK EITI report for 2014

3.2 Oil and Gas
3.2.1. Production
Production of the UK’s oil and gas is dominated by production from offshore areas,
which account for virtually all of UK output.19 Production of natural gas began in
1967 with the West Sole field in the Southern North Sea. Offshore oil production
began with the Argyll field in the Central North Sea (CNS) in 1975.
Combined oil and gas production volumes peaked in 1999 at 4.59 million barrels of
oil equivalent (boe) per day, and have since declined to 1.44 million boe/day in 2014,
split roughly 60:40 between oil production and natural gas production (Figure 3).
Figure 3. UK oil and net gas production20

0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
million barrels of oil equivalent/day
Oil & NGLs
Natural Gas
Total Hydrocarbon Production
For data on the value of UK oil and gas production in 2014, see Section 3.1.
The OGA publishes data relating to production of UK oil and gas, including
production data for individual fields, current and historical production figures,
production projections, and tables and charts on UKCS income and expenditure.21
3.2.2. Background and recent developments
At the start of the industry in the 1960s and 1970s production was dominated by a
small number of very large, profitable fields, such as Forties, Brent, Ninian and Piper,
and the development of key offshore infrastructure pipelines. UKCS production now
19 Wytch Farm in Dorset, England, is the only substantial onshore field and is partly covered by a “seaward” licence; the drilling
sites are onshore, but some of the wells extend under Poole Harbour. Wytch Farm is here treated as offshore.
20 Source: OGA, https://www.gov.uk/guidance/oil-and-gas-uk-field-data. Net natural gas production equals gross production
less producers’ own use, i.e. the gas used in the course of production of oil and gas and therefore not available for sale to end
users.
21 OGA, Oil and gas: field data, https://www.gov.uk/oil-and-gas-uk-field-data

| P a g e 22

UK EITI report for 2014
comes from a large number (over 300) of predominantly small fields and others that
are much more technically complex to produce from, both of which tend to increase
unit development and production costs. The overall level of production has fallen
significantly, especially in the last decade – a consequence of natural reservoir
decline in existing fields combined with fewer/smaller developments. Figure 4
illustrates this for crude oil production.
Figure 4. UK crude oil production by start-up year of field22
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Thousand tonnes

At £14.8 billion, development capital expenditure in 2014 was at a record level with a
number of large developments taking place, such as the Laggan and Tormore fields,
the redevelopment of Schiehallion and the next phase of the large Clair Field. The
costs of running the industry reached a total of £9.6 billion in 2014. Operating costs
per barrel have more than doubled since 2010 as production has fallen while costs
have risen (in a high oil price environment in which few fields ceased production).
For the first time, the cost of decommissioning assets in the UKCS exceeded £1
billion in 2014. With oil prices falling by nearly 50% in the second half of 2014 to
approximately US$60/barrel for dated Brent, despite flat production in 2014, income
fell significantly resulting in strongly negative post-tax cashflow for the sector as a
whole.
The UK is still a significant oil and gas producer. In 2014, the UK was the 23rd largest
producer of oil and gas globally (ranked 24th for oil and 21st for gas production).23
The UK produced 1.0% of global output of oil and gas in 2014.24

22 Source: OGA.
23 BP, Statistical Review of World Energy, 2015, http://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-
world-energy.html
24 BP, Statistical Review of World Energy, 2015, http://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-
world-energy.html

| P a g e 23

UK EITI report for 2014

3.2.3. Reserves and forecasts
A total of 42 billion boe had been produced from the UKCS by the end of 2014. The
OGA estimates remaining recoverable hydrocarbon resources from the UKCS to lie
in the range 11 to 21 billion boe.25 Full details of the assumptions underpinning
forthcoming years in the budget cycle and relating to projected production,
commodity prices and revenue forecasts are provided by the independent OBR.26
Exploration activity in 2014 was at a historical low, matched only by 2011 since the
start of offshore exploration in the mid-1960s. Only 14 exploration wells (including 1
sidetrack) were drilled in the year, and discovered volumes are thought to have been
around 55 million boe.27 Cumulative reserves produced to date are catching up with
cumulative resources discovered to date (Figure 5); the number of fields discovered
but not yet developed is dwindling – an important issue for the long term future of the
UKCS.
Figure 5. Recoverable UKCS reserves discovered and reserves produced28
0
10
20
30
40
50
60
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Cumulative Reserves Discovered and
Produced
(Billion boe)
Recoverable Reserves Discovered
Reserves Produced

Forecasts of future production rates vary. Oil & Gas UK predicts that production will
increase in the near term, with the start-up of some very large projects more than
offsetting anticipated reservoir decline from existing fields. Official forecasts suggest
little or no short-term increase and a more rapid return to declining production in
future years (Figure 6).

25 OGA, UK Oil and Gas Reserves and Resources, https://www.gov.uk/guidance/oil-and-gas-uk-field-data#uk-oil-and-gas-
reserves-and-resources
26 OBR, http://budgetresponsibility.org.uk/
27 Oil & Gas UK, Activity Survey 2015, http://oilandgasuk.co.uk/
28 Underlying data from Wood Mackenzie, Upstream Data Tool,
http://www.woodmac.com/content/portal/energy/highlights/wk4_Nov_13/Upstream%20Data%20Tool.pdf; chart showing up to
2013 from Oil & Gas UK, Economic Report 2014, http://oilandgasuk.co.uk/wp-content/uploads/2015/05/EC041.pdf, p. 28.

| P a g e 24

UK EITI report for 2014

Figure 6. Oil & Gas UK and OBR forecast for future UKCS output29

0.0
0.5
1.0
1.5
2.0
2.5
3.0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
million barrels of oil equivalent a day
Oil & Gas UK
OGA/OBR

3.2.4. Balance of trade
Domestic production of oil and gas continues to supply around 50% UK hydrocarbon
consumption. For data on the volume and value of UK exports (and imports) of oil
and natural gas, see Section 3.1. Net exports (imports) since 1998 are illustrated in
Figure 7.
Figure 7. Volume and value of net UK oil and gas exports (imports)

-20
-15
-10
-5
0
5
10
15
20
25
-40
-30
-20
-10
0
10
20
30
40
50
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
£ billion (2014 prices)
million tonnes of oil equivalent
Crude Oil - Volume (left-hand axis)
Natural Gas - Volume (left-hand axis)
Crude Oil - Value (right-hand axis)
Natural Gas - Value (right-hand axis)

| P a g e 25

29 Source: Oil & Gas UK and OBR.

UK EITI report for 2014
Oil and gas (whether domestically produced or imported) provide over 70% of the
UK’s total primary energy needs, and despite policy objectives and measures
supporting the use of alternative energy sources, DECC expect this percentage to
stay stable up to 2030 under current policies.
3.2.5. Employment
For data on the UK extractive sector employment, including in the oil and gas
industry, see Section 3.1. Additional information on employment in the UK oil and
gas industry, including the UK supply chain, is provided in the annual Economic
Report of Oil & Gas UK, the main upstream trade association. 30

3.2.6. Legal framework and licensing31
The Petroleum Act 1998 vests rights to oil and gas (petroleum) resources in the
Crown.32 The government grants petroleum licences, giving exclusive rights to
“search and bore and get” petroleum (mineral oil, natural gas and any associated
hydrocarbons) over a limited area for a limited period. There are separate licensing
regimes for offshore (seaward) and onshore (landward) areas, with distinct licences
in each. In Northern Ireland, the Petroleum (Production) Act (Northern Ireland) 1964
vests the property in oil and gas in Northern Ireland, with certain exceptions, in the
Department of Enterprise, Trade and Investment (DETI).33
Before 1 April 2015 petroleum licences were awarded by the Department for Energy
and Climate Change, (DECC). Since then a newly established independent
regulator, the Oil and Gas Authority (OGA), has been the licensing authority in all
areas other than onshore Northern Ireland, where the Northern Ireland Executive
has retained responsibility.
Northern Ireland’s offshore waters are subject to the same licensing regime as the
rest of the continental shelf. The OGA publishes oil and gas licences and licence
reports for Great Britain and the UKCS.34 The OGA also publishes offshore and
onshore maps and GIS shapefiles. The interactive maps allow users to find the co-
ordinates of each licence and download individual licences. 35 Older licences have
not all been scanned so some are not available online but copies may be requested
from the OGA.
The Northern Ireland DETI issues separate onshore licences independently of the
OGA and publishes current licences and a map showing licence areas.36
The OGA works to maximise economic recovery of the nation’s petroleum resources.
Before awarding the licence, the government also has essential requirements, such
as the establishment of a tax base, requiring the would-be licensee to have a fixed
30 Oil & Gas UK, Economic Report 2015, http://oilandgasuk.co.uk/economic-report-2015.cfm
31 This subsection draws on OGA, Oil and gas: petroleum licensing guidance, https://www.gov.uk/guidance/oil-and-gas-
petroleum-licensing-guidance
32 Petroleum Act 1998, www.legislation.gov.uk/ukpga/1998/17/contents
33 http://www.legislation.gov.uk/apni/1964/28/contents
34 OGA, Oil and gas: licence data, https://www.gov.uk/oil-and-gas-licence-data;
see also OGA, Current fields and licences wall map, https://www.gov.uk/oil-and-gas-onshore-maps-and-gis-shapefiles
35 OGA, Oil and gas: offshore maps and GIS shapefiles, https://www.gov.uk/guidance/oil-and-gas-offshore-maps-and-gis-
shapefiles, and Oil and gas: onshore maps and GIS shapefiles, https://www.gov.uk/guidance/oil-and-gas-onshore-maps-and-
gis-shapefiles
36 DETI, Petroleum Licensing, https://www.detini.gov.uk/articles/petroleum-licensing

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place of business within the UK. The OGA routinely informs HMRC of proposed
transactions so that the latter will be aware of potential tax issues.
Award and transfer of licences
Licences are awarded during regular competitive onshore and offshore licensing
rounds once the OGA has been satisfied that the licensee has the necessary
technical and financial capacity37. This method of licensing optimises recovery of the
UK’s petroleum. Out-of-round licence applications are possible but only in
exceptional circumstances. Licensing rounds are announced in the Official Journal of
the European Union and assessed against a publicly announced set of criteria. 38
Each licence takes the form of a deed, which binds the licensee (either a single
company or several working together and bound under joint and several liability) to
obey the licence conditions regardless of whether or not they are using the licence at
any given moment. The apportionment of costs arising from the licence (including
the licence rental) and revenues arising from it require the Secretary of State’s
consent under licence conditions.
The OGA (and DECC previously) regulates the transfer and sale of licences in order
to enforce its policy objectives.
Licence applications and interests attract fees and charges payable by the applicant
or licensee. Each licence carries an annual charge, commonly called a rental.
Rentals serve the double purpose of incentivising licensees to work their whole
licensed areas and to surrender acreage they do not intend to exploit. Rentals are
due every year on the licence anniversary, and are charged at a variable rate on
each square kilometre that the licence covers at that date. The rates are set out in
the licence document at award.
Licence conditions and types of licences
Each licence contains detailed terms and conditions, but not all regulation is
contained in the licence. The Petroleum Act 1998 requires these conditions — called
model clauses — to be published first in secondary legislation except in particular
cases.39 In recent years, the model clauses have also been set out in full in the
licence document.
Production licences are valid for a sequence of periods, or terms. These terms mirror
the typical life cycle of a field: exploration, appraisal and production, and provide that
each licence will expire automatically at the end of each term, unless the licensee
has sufficiently progressed to warrant a move into the next term. The duration of
each term depends on the type of the licence.
The OGA publishes additional information about the different types of licences, their
normal duration and different phases of the licensing lifecycle.40
37 OGA documentation of award rounds is available at Oil and gas: licensing rounds, https://www.gov.uk/oil-and-gas-licensing-
rounds
38 See for example http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014XG0620(01)&from=EN for the
announcement of the 14th landward licensing round including the assessment criteria.
39 Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014,
http://www.legislation.gov.uk/uksi/2014/xx-xxxx-xxxx/contents/made
40 OGA, Oil and gas: petroleum licensing guidance,
https://www.gov.uk/guidance/oil-and-gas-petroleum-licensing-guidance

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While landward licences confer the right to search for, bore and extract petroleum on
areas under licence, they do not exempt the licensee from other legal or regulatory
requirements, including a need to obtain access rights from landowners or planning
permission from relevant local authorities, or to conform to health and safety
regulations.
In Northern Ireland, there is only one type of petroleum licence which has broadly
similar terms and condition to onshore GB Petroleum Exploration and Development
Licences (PEDLs) but also some differences. 41
3.2.7. An introduction to the published tax receipts
The published reconciled tax receipts in this EITI Report illustrate how the amount of
tax paid by a company can vary significantly. This is because the level of tax paid by
a company in a single tax period is the product of a number of different variables.
The first is the level of taxable profits within that period. This is dependent on any
capital expenditure incurred including decommissioning and investment. The second
is the tax rate for that year. Third is any tax loss carried forward from the prior year or
carried back from a later year. Where losses are carried back, a repayment of tax will
often arise.
Other industries pay standard corporation tax, which was 23% at the start of 2014,
reducing to 21% from 1 April 2014; 42 this is largely based around accounting profit.
Taxable profits and accounting profits diverge substantially for the ring-fence
corporation tax in a way that no longer applies elsewhere. This is largely due to the
100% capital allowances, which are unique to the oil and gas industry, and the way
decommissioning is accounted for. In periods where income within the ring fence
(field production income, tariff income, etc.) exceeds ring fence expenditure (capital
expenditure investing in new facilities and wells, and operating expenditure running
installations and paying tariffs to third parties), this surplus (“profit”) is liable to tax at
the prevailing rates. Where there is a deficit of income compared with expenditure,
the company makes a loss, which can be carried forward to offset a future profit (or
to a limited extent carried back to generate a repayment from government).
The UK tax regime does not ordinarily pay companies for their losses upfront, for
example in the exploration phase when companies are spending money on drilling
exploration wells and acquiring seismic data but have no production income within
the UKCS. This trading loss can only be carried back one year or forward to offset
trading profits in future periods. However, where a loss has arisen because the
company is engaged in decommissioning a field, or for the terminal loss when the
business ceases its ring fence trade, losses can be carried back further.
In recent years, levels of expenditure have been at record levels as global
competition for rigs and resources has been significant, and a number of very large
projects have been in the development phase. By virtue of historic losses built up
within companies, the tax receipts lag behind profitability at the basin level. The day-
to-day profitability of the UKCS decreased as production volumes declined and as
the cost of operating the assets increased in line with the basin’s overall maturity.
41 https://www.detini.gov.uk/articles/petroleum-licensing
42 UK Corporation Tax rate fell to 20% on 1 April 2015.

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This decline in profitability accelerated markedly during 2014 as benchmark oil prices
fell by around 50% in the second half of the year.

3.2.8. Fiscal regime and revenue streams
Objectives and history
Background
Over the last 40 years, the UK has developed into one of the world's major oil
production countries. Successive administrations have developed a fiscal regime
which encourages companies to explore for and develop the nation's oil and gas
reserves whilst aiming to ensure that an appropriate share of the benefits accrues to
the UK economy as a whole.
Although the North Sea is a relatively high cost production area, its high quality
crude oil, political stability and proximity to major European consumer markets have
allowed it to play a major role in world oil and gas activity. However, as the North
Sea matures, recovering the remaining oil and gas offshore is becoming more
difficult. In recent years, the offshore industry has faced a growing challenge to
maintain production, which has fallen 38% since 2010, and exploration, where rates
have been low since 2009.
Foundations of the fiscal regime
The current ring fence fiscal regime grew out of the ordinary corporation tax system
which has been amended by successive Acts and agreements to support the
exploitation of the UK’s oil and gas reserves.
As a direct result of early discoveries during the 1960s, by 1974 a number of gas
fields were in production and a number of oil discoveries had been made further
north in the CNS. In 1974 the Department of Energy issued a White Paper, United
Kingdom Offshore Oil & Gas Policy (Cmnd 5696). This set out the government’s two
main objectives, to secure a fairer share of profit for the nation and to maximise the
balance of payments benefit, while ensuring the oil companies received a suitable
return on their heavy capital investment in exploration and production.
The White Paper proposed that the government should establish a specialist fiscal
regime for the oil and gas industry. This was enshrined in law in the Oil Taxation Act
1975, which introduced the Petroleum Revenue Tax (PRT). The main objectives
behind PRT when it was introduced in 1975 were: to allow a project to rapidly
recover its cost, then tax it at an appropriate rate; to ensure that tax due was paid as
early as possible; and to ensure that projects where no economic rent was likely
were protected from the tax.
The 1975 Act also introduced a ring fence around corporation tax profits from UK oil
production to prevent profits from the UK oil resource being diluted by losses or
allowances on other activities. There were special rules for the allowance of interest
and the treatment of advanced corporation tax.
There have been various incremental changes in the oil tax regime since 1975. PRT
was removed for fields authorised after 1993 in the Finance Act that year and the
rate lowered from 75% to 50%. This was part of a number of changes aimed at

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encouraging the further development of the UK's oil and gas resources by allowing
companies to keep more of their profits, whether from additional investment in
existing oil and gas fields, or from the development of new ones.
In 2002 an additional tax was introduced, the Supplementary Charge, which was
increased in 2006 and 2011 peaking at 32%. Whilst rates of Corporation Tax outside
the ring fence declined from 2008 onwards, the rate of Ring Fence Corporation Tax
has remained static at 30%, meaning that the difference between the rates of
corporation tax is a further effect of the ring fence.
The regime historically did include a royalty levied at 12.5% of “well head value”, but
this feature was partially abolished with effect from 1982 and finally abolished in
2002 due to its regressive nature distorting the investment incentives within the
UKCS. A short lived Supplementary Petroleum Duty (SPD) also featured in the
regime in 1981 and 1982.43
The current regime
The fiscal regime which applies to the exploration and production of oil and gas in
the UK and UKCS comprises three taxes. In 2014, the rates were:
• Ring Fence Corporation Tax (RFCT) – levied at 30%
• Supplementary Charge (SC) – levied at 32%
• Petroleum Revenue Tax (PRT) – levied at 50%
The marginal tax rate in 2014 was 81% on income from fields paying PRT and 62%
for other fields.
Ring Fence Corporation Tax (RFCT). RFCT is calculated in the same way as the
mainstream corporation tax applicable to all companies but with the addition of a
“ring fence” and certain other modifications. The main purpose of the modifications is
to ensure the UK gains the proper benefit from oil extraction activities by stopping
profits from oil extraction activities in the UK and UKCS being reduced for tax
purposes by losses from other trading activities that the company may engage in
(e.g. refining and petrochemicals and sales of oil and gas products to consumers).
Supplementary Charge (SC). A supplementary charge of 10% was introduced in
Finance Act 2002 on companies producing oil and gas in the UK and UKCS. SC is
levied on the profits that are charged to RFCT but without deduction for financing
costs. The rate of SC was increased in Finance Act 2006 to 20% and was further
increased to 32% in Finance Act 2011. In Finance Act 2015, it was reduced to 20%.
Petroleum Revenue Tax (PRT). The rate of PRT in 2014 was 50%. This is a special
tax on oil and gas production from the UK and UKCS. It is a field based tax charged
on profits arising from individual oil fields; it is not charged on the aggregate profits
from all oil fields owned by each company. PRT was abolished in Finance Act 1993
for all fields given development consent on or after 16 March 1993. PRT is
deductible in computing the profits for RFCT and SC. In Finance Act 2015 it was
reduced to 35% with effect from 1 January 2016.
43 For further detail about SPD see http://www.hmrc.gov.uk/manuals/otmanual/ot05705.htm

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Allowances
There are various allowances that apply to reduce the profits chargeable to RFCT,
SC and PRT.
Capital Allowances. Virtually all capital expenditure incurred by oil and gas
companies for their ring fence trade, including putting the plant and machinery in
place, or in dismantling it at the end of the life of an oil field, now qualifies for 100%
First Year Allowances (FYAs), allowing the cost to be written off for tax purposes in
the accounting period in which the expenditure is incurred. Three different capital
allowances exist – namely the Research and Development Allowance (RDA),
Mineral Extraction Allowance (MEA) and Plant and Machinery Allowances (PMA).
Ring Fence Expenditure Supplement (RFES). RFES assists companies that do
not yet have sufficient taxable income for ring fence corporation tax purposes against
which fully to set their exploration, appraisal and development costs. The RFES
currently increases the value of unused expenditure carried forward from one
accounting period to the next by a compound 10% a year for a maximum of 10 years
(6 years prior to 2014), not necessarily consecutively.
Allowances that reduce the profits chargeable to SC
• Cluster Area allowance - Legislation was introduced in Finance Act 2015 to
introduce a new cluster area allowance, which aims to support large development
projects in areas of high pressure and high temperature, encouraging exploration
and appraisal in the surrounding area (or “cluster”). The allowance provides for
an amount of adjusted ring fence profits, equal to 62.5% of qualifying capital
expenditure spent within the cluster area, to be exempted from SC. This means
that these profits will only be subject to ring fence corporation tax at 30%. The
allowance will be activated by production income from the cluster area. Cluster
areas are determined as such by DECC, and the only area determined as such
by the end of 2014 is the Culzean Cluster Area in the CNS.

• Onshore Allowance - The Onshore Allowance was introduced in Finance Act
2014 to provide support for the early development of onshore oil and gas projects
which were economic but not commercially viable at the prevailing tax rate. The
onshore allowance covers both conventional and unconventional hydrocarbons
and replaces all existing field allowances for onshore projects. The allowance
removes an amount equal to 75% of capital expenditure incurred by a company
after 5 December 2013 in relation to an onshore site from its adjusted ring fence
profits which are subject to SC, subject to certain capacity limits (for production
yield).

• Field Allowance - In recent years the discoveries and subsequent developments
on the UKCS have been increasingly small in size (<50 million boe, many of
which are very small, i.e. <25 million boe), and/or technically challenging. These
fields were not commercially viable at the previously prevailing tax rates. The
Field Allowance was therefore introduced in 2009 based on the physical
characteristics of qualifying fields (or in the case of the brownfield allowance,
based on project economics). By the end of 2014 there were a total of seven
different categories of field that were eligible.

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The Field Allowance gives an amount of production income that can be earned
free of the Supplementary Charge. The Field Allowance is only a relief against
SC, so the full income (profit) from the field always pay RFCT at the full 30% rate
(and PRT for applicable incremental projects). The existing system of offshore
field allowances was replaced by a single Investment Allowance in Finance Act
2015. Similarly to the Cluster Area Allowance, the Investment Allowance provides
for an amount of adjusted ring fence profits, equal to 62.5% of qualifying capital
expenditure, to be exempted from SC.

PRT Allowances Within the PRT regime Oil Allowance is the only one of a
package of measures designed to prevent PRT bearing unduly on smaller, more
marginally economic fields. “Safeguard” and “Cross Field Allowance” have both
expired and are only relevant to the current regime in a historical context.44 Oil
Allowance ensures that for at least the first 10 years of a field's life a substantial slice
of production is free from PRT. The available amounts are converted each
chargeable period into a “cash equivalent” which then reduces the liability to PRT.
Decommissioning
Decommissioning is an inherent cost of doing business in the UKCS. As a result, tax
relief within the tax regime is given for decommissioning costs at the point that they
are incurred and the decommissioning is carried out (for accounting purposes a
company will make an annual provision – but this cannot be deducted for tax
purposes as the cash has yet to be spent).
If decommissioning expenditure produces an overall loss for a year, the loss may be
carried back against previous ring fence profits of that company, as far as 2002 for
RFCT and SC, and indefinitely against field profits for PRT. Losses are offset against
the profits of most recent years first. Losses generated by decommissioning costs
and carried back to be offset against previous profits will be relieved at 20% for SC
and 30% for RFCT in non-PRT paying fields. The rate of relief for PRT fields is up to
75%. The amount of relief available is limited to the taxable profits of the relevant
field/company, and in economic terms represents a repayment of tax that has been
overpaid through the profitable life of the company or field. Decommissioning relief is
only available when the activity is carried out, and not as the annual provision is built
up.
Decommissioning Relief Deeds (DRDs). At Budget 2012, the government
announced a package of measures on oil and gas taxation to support investment.
The package included the introduction of legislation in 2013 giving the government
statutory authority to sign contracts (DRDs) with companies operating in the UK and
UKCS.
The aim of the DRD is to ensure that a lack of certainty over decommissioning tax
relief does not: create a barrier to asset trades and joint ventures; reduce companies’
ability to access investment capital in the UKCS; and discourage existing asset
owners from incremental investment.
44 For further information about PRT, including Safeguard and CFA, see
http://www.hmrc.gov.uk/manuals/otmanual/OT03000.htm

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The DRD works by underpinning the quantum of expenditure that qualifies for tax
relief in perpetuity based on Finance Act 2013. It provides a payment from the
Exchequer to compensate companies for adverse changes to the tax regime
provisions (but not tax rates) compared to those that existed in 2013. The DRD will
also pay out to ensure the claiming company is no worse off in the instance that it
picks up the decommissioning liabilities of another company that has defaulted under
its Petroleum Act obligations than the latter company would have been. This
provides industry with certainty over the availability of decommissioning relief in
future years.
Looking ahead: the oil and gas plan
At Budget 2014 the government committed to review the long-term future of the oil
and gas fiscal regime. Over 2014, HM Treasury sought views on how the
government should best adapt the regime to the changing economics of the UKCS,
create fiscal stability, help the UKCS compete for investment, simplify the regime
and ultimately use the regime to help maximise the economic recovery of the UK’s
oil and gas resources.
In December 2014 the government published Driving Investment – a plan to reform
the oil and gas fiscal regime.45 Although the conclusion was that the fundamentals of
the fiscal regime remain sound, there was recognition of the need for significant
change within the ring fence in order to continue to attract investment. Some of the
highlights from the plan are set out below:
• Driving investment: a plan to reform the oil and gas fiscal regime
acknowledged that to be consistent with the objective of maximising economic
recovery as new projects become ever more marginal the overall tax burden
would need to fall as the basin matures. At Budget 2015 the government
announced a reduction in the rate of SC from 32% to 20% with effect from
January 2015 and this was further reduced at Budget 2016 to 10%. A reduction in
the rate of PRT from 50% to 35% was also announced at Budget 2015 but this
was subsequently reduced to 0% at Budget 2016. The plan also committed that
when making judgments about fiscal policy, the government would consider the
wider economic benefits of oil and gas production, in addition to revenues; and
that the government’s judgment of what constitutes a ‘fair return’ to the nation
would take account of the global competitiveness of commercial opportunities in
the UK and UKCS, and take account of both commodity prices and costs.

• A basin wide investment allowance - To support companies that are actively
investing in the UKCS and to simplify and replace the existing suite of field
allowances,46 the government announced the introduction of a new basin wide
investment allowance at Budget/Finance Act 2015, roughly mirroring the cluster
area allowance. All capital expenditure incurred from 1 April 2015 will qualify, with
transitional arrangements for projects which attracted a Field Allowance in the
prior regime. It will provide greater certainty on the tax treatment to help ensure
companies maximise the remaining opportunities in the North Sea. As with the
45 HM Treasury, Driving Investment – a plan to reform the oil and gas fiscal regime,
2014,https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/xx-xxxx-xxxx/PU1721_Driving_investment_-
_a_plan_to_reform_the_oil_and_gas_fiscal_regime.pdf
46 From the effective date, new fields and incremental projects will no longer qualify, respectively, for field allowances for new
fields or for the brownfield allowance.

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Cluster Allowance, the Investment Allowance reduces the amount of adjusted
ring fence profits subject to SC. This means that these profits will only be subject
to ring fence corporation tax at 30%. The portion of profits reduced by the
allowance will be dependent on a company’s investment expenditure and will be
generated at 62.5% of that expenditure.

• Supporting exploration - The plan advised that the government would open
discussions in 2015 to consider options for supporting exploration through the tax
system, such as a tax credit or similar mechanism, in a way that is carefully
targeted and affordable.

• Fiscal treatment of infrastructure - The call for evidence identified a number of
issues concerning the tax treatment of tariffs (where infrastructure owners charge
for its use by third parties) and of asset transfers which could improve
stewardship of infrastructure assets. The plan advised that the government would
consider options for reforming the fiscal treatment of infrastructure and consult
further with industry in 2015.

• Decommissioning - A number of responses to the call for evidence identified
that where specialists are taking ownership of assets, they will not be in a
position to offset their decommissioning costs against RFCT and SC unless they
are making profits from production in other fields. This is not an issue for PRT, as
the relief can be carried back and offset against the tax history of the field.
However, stakeholders are not permitted to “look back” to RFCT and SC history
in the same way. The plan advised that the government would consider options
to improve access to decommissioning tax relief to encourage new entrants into
the UKCS, where this does not increase the overall forecast cost to government
of providing decommissioning tax relief, and consult further with industry in 2015.

3.2.9. Unconventional hydrocarbons
Research by the British Geological Survey (BGS) indicates that there are potentially
large volumes of shale gas beneath the UK. Further exploration is required before
the full extent of these resources is known and the benefits they may bring can be
estimated. There is also some interest in underground coal gasification (UCG) from
offshore coal seams.
The licence and fiscal terms do not generally differentiate between conventional and
unconventional hydrocarbon activities. For example, the “onshore allowance” (an
allowance against the supplementary charge which ensures that otherwise economic
developments are not uncommercial) is applicable to both new conventional oil and
gas as well as to shale gas developments. As Petroleum Exploration and
Development Licences (PEDLs) do not grant automatic rights to operations such as
drilling or hydraulic fracturing, any company looking to develop shale will also need
to obtain all necessary permissions, like planning and environmental permits. A
range of measures specific to hydraulic fracturing and the shale industry have been
put in place. The Infrastructure Act 2015, for example, specifies 13 conditions that
need to be met before a hydraulic fracturing consent will be issued, including public
notification and a scheme to provide financial or other benefit for the local area.
The UK Government is committed to encouraging the safe and sustainable
development of shale gas whilst ensuring that communities share in the benefits

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from shale gas developments in their areas. Delivering on the commitment made at
Summer Budget 2015, the Government announced at Autumn Statement 2015 that it
will commit up to 10% of tax revenues from shale gas developments to a Shale
Wealth Fund, which could deliver up to £1 billion of investment in local communities
hosting shale gas developments, the north of England and other shale-producing
regions. The Government will set out its proposals in more detail in 2016.
The Scottish Government has announced a moratorium on planning consents on 28
January 2015. Scottish Ministers have announced a public consultation and have
since announced a comprehensive programme of research and a consultation
timetable. This was followed by a separate moratorium on planning consents for
UCG developments on 8 October 2015, which will be followed by an independent
examination of the issues and evidence surrounding UCG, working closely with
stakeholders and communities. On 13 February, Welsh Minister for Natural
Resources, Carl Sargeant, issued a new direction to Mineral Planning Authorities
(MPAs) requiring them to notify him of any planning application where
unconventional extraction techniques such as fracking are proposed. This direction
only applies if the MPA plans to approve the application and gives the Minister an
opportunity to consider calling it in.
3.3 Mining and Quarrying47
3.3.1. Production
The UK has relatively diverse and large deposits of minerals that have been
historically mined. Key sectors include:
• energy minerals – coal;
• construction minerals – aggregates, brick clay and cement raw materials;
• industrial minerals – kaolin (china clay) and ball clay, silica sand, gypsum,
potash, salt, industrial carbonates, fluorspar and barytes;
• metal minerals – tungsten, gold.
Construction is the largest bulk market for non-energy minerals. Industrial minerals
extracted and used in the UK, range from minerals used primarily domestically (for
example, silica sand and limestone for glassmaking, iron and steel manufacture) and
minerals such as kaolin, ball clay and potash, which have significant international
markets. Mineral production supports a wide variety of upstream, midstream and
downstream industries.
Total turnover of the UK mining and quarrying industry, including coal but excluding
oil and gas and mining services activities, was £7 billion in 2013.48 Total value (GVA)
for the same sector definition was £2.2 billion according to the Annual Business
Survey. The UK Minerals Yearbook includes 2013 value-of-production data for
individual minerals.49
47 Unless noted otherwise in this section of the chapter, mining and quarrying include coal but exclude oil and gas extraction.
48 BGS, UK Minerals Yearbook 2014, p.11, gross value added table,
https://www.bgs.ac.uk/mineralsuk/statistics/UKStatistics.html
49 BGS, UK Minerals Yearbook 2014, https://www.bgs.ac.uk/mineralsuk/statistics/UKStatistics.html 2014 data for specific
minerals is due to be incorporated into the BGS UK Minerals Yearbook 2015 from the Annual Minerals Raised Inquiry (AMRI)
carried out by the Office for National Statistics (ONS) for the Department of Communities and Local Government (DCLG), and
will become available during 2016.

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In recent years, an increase has occurred in the UK mining and quarrying non-coal
production, while coal production volumes have consistently fallen for the past two
decades. Output of non-coal mining and quarrying and support activities (including in
this case oil and gas support activities) has grown substantially since 2010, picking
up after a post-2007 downturn (Figure 8).
Figure 8. Gross Value Added mining and quarrying xx-xxxx-xxxx

Production volumes for specific minerals are provided in sub-section 3.3.6 below.
3.3.2. Balance of trade
Although the UK has significant domestic supply of some minerals, it is a net
importer of many minerals and mineral-based products, particularly metals, and in
the long term has experienced a balance of trade deficit. UK mineral exports and
imports have both increased in recent years. In 2013 the value of total UK exports of
minerals and mineral products was £77.1 billion and imports £98.7 billion. Excluding
hydrocarbons and coal, exports of other minerals and mineral products were valued
at £37.8 billion and imports of other minerals and mineral products valued at £43.6
billion.
Export data for specific minerals is provided in sub-section 3.3.6 below.

50 ONS, Index of Production, 2015, http://www.ons.gov.uk/ons/rel/iop/index-of-production/january-2015/index.html
0
1
2
3
4
5
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
£ billion, 2014 prices
Mining of coal
Other mining and quarrying

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3.3.3. Employment
In 2013, total UK employment (employed and self-employed) in mining and quarrying
approximated 131,090 people, of whom 17,812 worked in quarrying of stone, sand
and clay (the largest subsector of the industry in terms of employment).51 All
employment is in the private sector.
ONS data allows for a disaggregation of employment by subsectors of mining and
quarrying in Great Britain, where the majority of UK activity takes place (Figure 9).
Figure 9. Total GB employment in mining and quarrying in 2013 by sub-
sectors, in thousands52

2.2
2.4
4.9
7.0
0.3
1.1
0.4
Deep coal mining (05101)
Open cast coal mining (05102)
Quarrying of ornamental and
building stone; limestone;
3.3.4. Legal framework, fiscal regime and revenue streams
Planning
Extraction of minerals is subject to the UK’s mineral planning process.53 The aim of
mineral planning is to meet the social, economic and environmental cost, while
protecting conservation or heritage areas. Mineral working is not a permanent use of
land, and extraction sites are usually restored for beneficial after-use.
Mineral planning policy is devolved and set out in the National Planning Policy
Framework (England),54 Mineral Planning Policy Wales55 and National Planning
51 ONS, Labour Force Survey, average of four quarterly survey results for 2013: www.ons.gov.uk
52 ONS, BRES 2013 revised, 2015, http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-
391230. The true employment figure is likely to be slightly higher, because the ONS tends to exclude small groups of
employees working in support activities for UK mining and quarrying. The UK dataset combines data for Great Britain with
estimates for Northern Ireland.
53 See BGS, Planning, https://www.bgs.ac.uk/mineralsuk/planning/home.html
54 Department for Communities and Local Government (DCLG), 2012,
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6077/2116950.pdf
55 Welsh Government, 2001, http://gov.wales/topics/planning/policy/minerals/?lang=en
gypsum; chalk and slate (08110)
Operation of gravel and sand
pits; mining of clays and kaolin
(08120)
Extraction of salt (08930)
Other mining and quarrying n.e.c.
(08990)
Support activities for other mining
and quarrying (09900)

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Framework for Scotland 2.56 In Northern Ireland, policy and guidance are provided
through documents such as the Strategic Planning Policy Statement for Northern
Ireland, 57 which partly supersedes the
Planning Strategy for Rural Northern Ireland.58 The UK framework is supported by
technical documents providing guidance on particular issues of mineral planning.
The focus of the mineral planning process is on whether the development itself is an
acceptable use of the land.59
Mineral planning and decisions on planning applications are a responsibility of a
local authority body designated as the Mineral Planning Authority (MPA). In Wales,
Scotland and some parts of England MPAs are Unitary Authorities. In most of
England MPAs are the County Councils or National Parks. In Northern Ireland, the
Minerals Unit, part of the Planning Service of the Department of the Environment,
was responsible for minerals planning until 1 April 2015. 60 MPAs have four areas of
planning responsibility:
• planning to guide future developments;
• safeguarding mineral resources;
• managing developments by deciding on planning applications; and
• monitoring and enforcement of existing planning permissions.
Some minerals permissions last for many years, and there may be a need for
periodic reviews of the planning conditions attached to that permission. MPAs control
mineral developments under the orders established under the Town and Country
Planning Act 1990 (Section 97, Part II of Schedule 5, and Schedule 9).61
Minerals extraction may only take place if the operator has obtained both a planning
permission from the MPA and any other permits and approvals. The latter may
include:
• permits relating to surface water, groundwater and mining waste, issued by the
Environment Agency (under UK legislation related to the EU Water Framework
Directive and Mining Waste Directive);
• where appropriate, European Protected Species Licences, issued by Natural
England;
• where appropriate heritage asset consents issued by Historic England;
• licences for exploration and extraction of coal, or agreements to enter into or
pass through a coal seam to extract any other mineral, need to be granted by the
Coal Authority;
• licences for exploration and extraction of minerals managed by TCE need to be
obtained from the latter.62
56 Scottish Government, 2009, http://www.gov.scot/resource/doc/278232/0083591.pdf
57 http://www.planningni.gov.uk/index/policy/spps.htm
58 Northern Ireland Department of the Environment, 1993, http://www.planningni.gov.uk/index/policy/rural_strategy.htm
59 For environmental issues that may be considered during the planning process, see DCLG, Assessing environmental impacts
from minerals extraction, http://planningguidance.planningportal.gov.uk/blog/guidance/minerals/assessing-environmental-
impacts-from-minerals-extraction/
60 The functions of the Department’s Strategic Planning Division Minerals Unit in Northern Ireland transferred to each of the 11
councils on 1 April 2015. Under the two-tier planning system councils, will be the determining planning authority for the vast
majority of planning application, including mineral applications. Applications of regional significance will be submitted directly to
the DOE under the provision set out in S26 of the Planning Act (Northern Ireland) 2011.
61 For more information see DCLG, Minerals planning orders,
http://planningguidance.planningportal.gov.uk/blog/guidance/minerals/minerals-planning-orders/
62 The Crown Estate (http://www.thecrownestate.co.uk) is an incorporated public body that manages the monarch’s property
portfolio.

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Additional consents, such as relating to diverting and reinstating rights of way or
temporary road orders, may need to be obtained. Additional rights of way and land
use may need to be secured from landowners. Active mining and quarrying
operations are also regulated by the Health and Safety Executive.
Information about mineral planning and environmental permitting within the UK’s
devolved administrations is available as follows:
• Scottish Government, Guide to the Planning System in Scotland.63
• Northern Ireland Environment Agency (NIEA) and Scottish Environment
Protection Agency (SEPA), NetRegs: Environmental Guidance for Your Business
in Northern Ireland and Scotland.64
• Northern Ireland Planning Service, Minerals Planning.65
• Welsh Government, Planning.66
• Natural Resources Wales, Mining waste.67

3.3.5. Fiscal regime and revenue streams
Mineral ownership and licensing
With the exception of oil, gas, coal, gold and silver, the state does not own mineral
rights in the UK.68 Generally, mineral rights belong to private landowners. There is
no single national licensing system for exploration and extraction of non-petroleum
minerals. Planning permission goes with the land, so if the land is sold, the rights
under the permission transfer to the new owner. Environmental permits are granted
to the operator and therefore must be formally transferred to a new operator.
Where mineral rights belong to a private landowner, permission for exploration must
be received from the landowner. As The Crown Estate and (in Great Britain) Forestry
Commission manage land on behalf of the Crown, they also issue exploration and
extraction licences for mineral deposits under their management and grant access
right permits (wayleaves). In some cases, mineral rights can be managed by a
private agent on behalf of a public body (The Crown Estate and Forestry
Commission Scotland).
Coal Authority
The Coal Authority is a regulatory executive non-departmental public body,
established in 1994 following privatisation of the industry and sponsored by DECC.69
The Authority owns, on behalf of the State, the majority of unworked coal and
abandoned underground coal mine workings in Great Britain and regulates and
grants licences for working of coal and underground coal gasification together with
agreements to enter its coal estate for other processes such as coal bed methane
extraction.
The Coal Authority holds an offline public registry of licences and does not publish
licences online. Information about coal licences can be requested by post and
63 http://www.gov.scot/Publications/2009/08/11133705/1
64 http://search.netregs.org.uk/environment/Mineral-Extraction
65 http://www.planningni.gov.uk/advice_special_studies_minerals
66 http://gov.wales/topics/planning/?lang=en
67 https://naturalresources.wales/apply-for-a-permit/waste/waste-permitting/mining-waste/?lang=en
68 BGS, Legislation & policy: mineral ownership, https://www.bgs.ac.uk/mineralsuk/planning/legislation/mineralOwnership.html

69 See https://www.gov.uk/government/organisations/the-coal-authority

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email.70 The Authority provides online coal mining data including on licence areas
and known areas of activity.71
Coal Authority revenue streams include:72
• fees for statutory licences, either operating or conditional (where the licensee is
yet to secure planning permission) for surface and underground coal mining
operations and underground coal gasification;
• fees for licences for coal exploration;
• production-related rents under coal leases which transfer the property interest in
the coal to the licensee when holding an operating licence;
• fees and royalties for digging and carrying away coal during non-coal-related
development (Incidental Coal Agreement);
• fees for agreements to access or pass through the Authority’s coal estate for
processes such as coal bed methane and abandoned mine methane extraction,
mine water heat recovery and deep energy exploitation (e.g. geothermal, shale
gas);
• payments for coal rights under options for lease (granted with conditional
licences) and rights for pillars of support in coal.
In 2014, the Authority received £238,000 income in fees for its licensing activities
(retained by the Authority) and £863,000 in rents, royalties and rights for its coal
(these pass to HM Treasury).73
At the end of March 2015, 24 surface mines were in operation under licences held by
17 companies, and 9 underground mines were in operation under licences held by 9
companies. In addition, there were 19 underground coal gasification licences held by
2 companies, but all were conditional licences and none operational.
Northern Ireland

All mineral rights in Northern Ireland are vested in the DETI (Department for
Enterprise, Trade and Investment, the successor to the Ministry of Commerce) with
certain exceptions.74 The DETI publishes a description of the process for the award
of Mineral Prospecting Licences (MPLs) and consults publicly on applications.75
Applications are accepted on a “first come, first served” basis, although there is
provision for a competitive process where an expression of interest has been lodged
over an area for which an application is subsequently submitted by another
company. In 2014 the DETI awarded seven new MPLs to two companies. MPLs are
held electronically and available on request from the DETI’s Minerals and Petroleum
Branch.
70 Contact details at https://www.gov.uk/government/organisations/the-coal-authority
71 Coal Authority, https://www.gov.uk/government/collections/coal-mining-data
72 Coal Authority, www.gov.uk/government/organisations/the-coal-authority/about/about-our-services#licensing-charges
73 Source: Coal Authority, email communication.
74 Mineral Development (Northern Ireland) Act 1969, http://www.legislation.gov.uk/apni/1969/35/contents.
75 DETI, Mineral Licences-Guidance for Applicants, DETI, Minerals licensing, https://www.detini.gov.uk/articles/minerals-
licensing

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The Crown Estate: marine licences

The Crown Estate (TCE) manages the seabed to the 12-nautical mile territorial limit
and non-energy mineral rights out to 200 nautical miles.76 TCE awards, through a
market-based tendering process, commercial agreements to companies to explore
for or extract marine aggregate minerals, and it collects royalties for minerals
extracted. TCE’s policy is not to disclose contracts and agreements relating to
minerals on the grounds that they contain commercially confidential information. All
licensed application and exploration/option marine aggregate area details are
published online.77
Such rights and options can only be exercised once the necessary regulatory
consent (marine licence) is obtained under the Marine Works (Environmental Impact
Assessment) Regulations 2007, as amended in 2011, from the national regulator:
the Marine Management Organisation (MMO) in England, Natural Resources Wales
(NRW), Marine Scotland or the Northern Ireland Executive, according to location.78
All regulators are required to keep a public register of marine licences they have
issued.79 Applications for marine licences must be publicised to allow anyone who is
interested a chance to object.80
Revenue streams for marine aggregates comprise:
• marine licence payments to the relevant regulator;
• annual per tonne production royalty payments to TCE.81
TCE manages mineral rights to potash mined from beneath the UK seabed.
Currently only one operating mine pays royalties for potash mined offshore (Boulby,
operated by Cleveland Potash); there is also one exclusive option agreement (York
Potash) on which planning approval has been granted but extraction has yet to start.
Fees and royalties received by TCE are negotiated privately. Rock salt is a by-
product of potash mining at Boulby, with arrangements analogous to potash (royalty
fees to TCE for minerals mined from the offshore section of the mine) are in place.
The Crown Estate: terrestrial minerals

TCE has also granted mineral leases across the UK for land based mineral
extraction operations, including sand, gravel, hard rock, dimension stone and slate. It
charges royalties for minerals extracted. Lease conditions and royalty payment
provisions are negotiated on an open market and case-by-case basis. TCE also
76 http://www.thecrownestate.co.uk/
77 TCE, Our portfolio, http://www.thecrownestate.co.uk/energy-and-infrastructure/aggregates/our-portfolio
78 British Marine Aggregate Producers Association (BMAPA), Licensing and regulation,
http://www.bmapa.org/regulation_and_management/licensing_and_regulation.php; the MMO is an executive non-departmental
public body sponsored by the Department for Environment, Food & Rural Affairs: see
https://www.gov.uk/government/organisations/marine-management-organisation
79 England: https://marinelicensing.marinemanagement.org.uk/mmo/fox/live/MMO_PUBLIC_REGISTER;Wales:
https://naturalresources.wales/media/4986/applications-received-and-determined-july-2015.pdf; Scotland:
http://www.gov.scot/Topics/marine/Licensing/marine/register; Northern Ireland: “A register of licensing information is available
for inspection at all reasonable times by members of the public free of charge. This register is available to view at the NIEA
Lisburn Office or regional offices if requested” – Northern Ireland Environment Agency (NIEA), Marine Dredging,
https://www.doeni.gov.uk/contact
80 UK Environmental Law Association, Marine Licensing, http://www.environmentlaw.org.uk/rte.asp?id=275
81 Royalty rates vary between licences and are commercially confidential. Companies also pay “dead rent”, a standard
minimum annual fee payable to TCE if no dredging has occurred within the past 12 months.

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manages the right to gold and silver (“Mines Royal”),82 but there is no significant gold
or silver production in the UK.
Local Planning Authorities (planning obligations payments)

Planning obligations are agreements made between a planning applicant (including
the freehold owner of land where the operator only has a minerals lease) and a Local
Planning Authority (LPA) under Section 106 of the Town and Country Planning Act
1990 in England and Wales, Section 75 of the Town and Country Planning
(Scotland) Act 1997 (and its 2010 modification regulation) in Scotland and Article 40
of the Planning (Northern Ireland) Order 1991. Planning obligation payments are
site-specific and negotiated case by case. They may comprise:
• monetary payments to LPAs; or
• “in-kind” infrastructure provisions: mainly off-site provisions, usually in form of
highway improvements (on-site provisions within the boundary of a planning
permission are theoretically possible but more likely to be included in planning
conditions rather than under planning obligations).
The difference between off- and on-site “in-kind” infrastructure provisions can be
understood as between provisions that benefit the local community and those used
by the extractive company itself. Only monetary payments and off-site provisions are
in scope for the UK EITI.
Planning obligations can be short term, such as obligations to carry out works before
the extraction can take place, or long-term, such as obligations to restore or provide
after-care of extraction sites.
Obligations are recorded in online planning registries kept by LPAs, but payments
owed or made are not recorded, and no central registry of such planning obligations
or relevant payments exists.
Fiscal regime

HMRC collects tax from mining and quarrying businesses, and the applicable CT
regime is the same as for all other business sectors in the UK83 (apart from the Ring
Fence CT oil and gas regime). Mining and quarrying companies pay standard rate
CT. 84 Profits from upstream and downstream activities are not separated, and such
companies pay a single amount of CT on the profits arising from all their activities. It
is therefore not possible to say how much of the taxes paid by the companies whose
tax payments are reported here related to their extractive activities nor what the total
of such taxes was (and therefore what proportion of the total is covered by these
companies).
Companies based in the UK have to pay CT on all their taxable profits, wherever in
the world those profits originate, although double tax relief is available where
appropriate to avoid the same profits being taxed twice. Companies not based in the
UK, but with branches operating in the UK, have to pay CT on taxable profits arising
82 With an exception of a few places in Scotland, where mineral rights were transferred historically.
83 More advice on corporation tax can be found at: https://www.gov.uk/corporation-tax-rates/allowances-and-reliefs?
84 Corporation tax rates: https://www.gov.uk/corporation-tax-rates/rates

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from their UK activities. CT payments by mining and quarrying companies are
included in the scope of the UK EITI. The figures reported are for total CT and
include tax on both upstream and downstream activities.
Aggregates businesses pay HMRC the aggregates levy - an environmental tax on
commercial exploitation of sand, rock and gravel introduced in 2002 because of the
impact of extraction on the environment and to encourage use of recycled
aggregates. Charged at £2 per tonne of commercially exploited material, the levy
raised £328 million in 2014. With the exception of a sustainability scheme operated by
the Welsh Government, all revenues are now used for general taxation purposes.
Responsibility for the levy in Scotland is to be devolved. The levy is excluded from the
scope of the UK EITI as it is a sales tax charged at the first point of sale and not
directly related to extraction.
3.3.6. Mineral subsectors
Coal
The majority of coal output comes from surface mining (opencast) sites in Scotland,
England (North East and East Midlands), and South Wales. At the end of March
2015 there were 24 operating surface mines. Underground coal mining output was
predominantly from three large operational deep mines - Hatfield and Kellingley in
Yorkshire and Thoresby in Nottinghamshire - but all were due to be closed by the
end of 2015. At the end of March 2015 there were 9 operating underground mines.
UK coal production peaked in 1913 and has been contracting, with fluctuations,
since the mid-twentieth century, with the sharpest decline in the 1990s.85 Electricity-
generating power stations currently account for most of the UK’s coal consumption.
Output in 2014 was 11.6 million tonnes (7.9 million surface mining, 3.7 million
underground).86 For data on value of production (GVA) and coal exports, see
Section 3.1.
Construction minerals
Construction minerals include aggregates, brick clay and cement raw materials.
Supply of aggregates includes crushed rock, sand and gravel (land-won and marine-
dredged) with contributions from recycled and secondary materials. Brick clay is an
essential raw material for the manufacture of bricks; limestone and chalk are the
primary materials for the production of cement.
The aggregates industry produces crushed rock, sand and gravel. According to the
Mineral Products Association, in 2014 the industry produced 149 million tonnes of
aggregates (in addition to 60 million tonnes of recycled and secondary aggregates),
12 million tonnes of cementitious products and 1 million tonnes of dimension stone
for construction uses in Great Britain. In addition, 17 million tonnes of rock and 4
million tonnes of industrial sand for non-construction use in Great Britain, and 4
85 DECC, Historical coal data: coal production, availability and consumption 1853 to 2014, 2015,
https://www.gov.uk/government/statistical-data-sets/historical-coal-data-coal-production-availability-and-consumption-1853-to-
2011
86 Source: Coal Authority, email communication.

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million tonnes of clay were extracted in 2013 for brick manufacture. 87 The BGS does
not record statistics on the value of production of construction minerals.
Aggregates are the largest element of the supply chain of the construction industry,
and fluctuations in construction have a large impact on demand and production. The
market has declined since the mid-1990s, most steeply following the 2008 economic
crisis, but in 2014 production of land-based primary aggregates increased by 11%
relative to the previous year. Production of marine aggregates also increased by
11%, due to higher UK construction demand. Exports to the near Continent (in 2014,
17% of marine aggregate production from UK waters was exported) declined, but
demand for replenishing UK beaches increased. There is evidence of a long-term
decline in reserves of land-based sand and gravel, which could constrain supply if
production continues to be greater than the approval of new reserves.88
Most (65% of) UK primary aggregates production in 2014 took place in England,
15% in Scotland, 12% in Northern Ireland and 8% in Wales.89 In 2014, 726 sq km
(less than 0.1% of the total area of UK seabed) were licensed for dredging by TCE,
three-quarters of this off the east and south coasts of England from where the
majority of aggregates are supplied to the construction market in London and the
South East. The area dredged in the year, however, was significantly lower – 86 sq
km, within which 90% of extraction effort (defined by hours dredged) occurred in an
area of 37 sq km.90
The UK is a net exporter of aggregates, although both imports and exports represent
less than 5% of UK markets. Because transport costs are a very significant factor for
aggregates, most markets are local or regional, with relatively little international
trade. Historically, the UK has been self-sufficient in the supply of primary
aggregates due to significant geological resources and adequate reserves with
planning permissions. Export of UK aggregates were valued at £77.3 million in 2014,
compared with imports worth £39.4 million.91
Industrial minerals

Industrial minerals include a number of raw materials used in specialised industrial
processes, with notable production in the UK of the following:92
Kaolin Kaolin, also known as china clay, is a commercial clay with specialist
applications in paper production, ceramics, cosmetics and other industries. UK
deposits of kaolin are concentrated in Cornwall and Devon and world-class in terms
87 Mineral Products Association, The mineral products industry at a glance – key facts, 2014,
http://www.mineralproducts.org/documents/mpa_facts_at_a_glance_2014.pdf, based on BGS data (excluding Northern
Ireland); BGS, UK Minerals Yearbook 2013, https://www.bgs.ac.uk/downloads/start.cfm?id=2930
88 UK Minerals Forum, The future of our minerals: A summary report, November 2014, http://www.british-
aggregates.co.uk/documentation/doc136_UKMineralsForumFINAL07112014(1).pdf
89 Mineral Products Association, The mineral products industry at a glance,
http://www.mineralproducts.org/documents/mpa_facts_at_a_glance_2014.pdf
90 British Marine Aggregate Producers Association, Sustainable development report 2014,
http://www.bmapa.org/documents/BMAPA_SD_Report2014.pdf
91 BIS, Monthly Bulletin of Building Materials and Components, https://www.gov.uk/government/collections/building-materials-
and-components-monthly-statistics-2012
92 Sources of data in this subsection include: BGS, UK Minerals Yearbook 2014;
https://www.bgs.ac.uk/downloads/start.cfm?id=3030; BGS, Mineral Planning Factsheets,
https://www.bgs.ac.uk/mineralsuk/planning/mineralPlanningFactsheets.html; BGS,
UK mineral statistics, https://www.bgs.ac.uk/mineralsuk/statistics/UKStatistics.html; UK Minerals Forum, Trends in UK
Production of Minerals,
http://www.ukmineralsforum.org.uk/downloads/Trends%20in%20UK%20Production%20of%20Minerals_08012014.pdf

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of size and quality.93 Production peaked in 1988 at 2.8 million tonnes but since then
has declined to 1.1 million tonnes in 2013, 90% of which was exported, mostly to
Europe. Value of production was estimated at £129 million. The UK exported 1
million tonnes (dry weight) of kaolin in 2013 worth £116 million and imported 0.9
million tonnes (dry weight) worth £15 million.
Ball clay Ball clay, another major industrial mineral, is produced in Devon and
Dorset mainly for the manufacture of white ware ceramics. Production levels peaked
between 2005 and 2008 at more than 1 million tonnes. In 2013, production was
estimated at 740,000 tonnes, 75.8% of it exported. Estimated value of production in
2013 was £50 million, with 560,843 tonnes exported worth £37.6 million and imports
totalling 6,848 tonnes worth £2.4 million.
Potash Yorkshire has one of the largest proven world deposits of potassium-rich
minerals. There is one potash mine in the UK, at Boulby, Yorkshire, and in June 2015
a planning application was approved for another mine in the North York Moors (NYM)
National Park. Ninety per cent of potash mined in the UK is used for agricultural
fertiliser production. Small quantities are also used in the pharmaceutical and
chemical industries. Production of potash reached its record high of 1.04 million
tonnes (refined potassium chloride) in 2003 but then declined. Current production
(2013) is estimated at 0.9 million tonnes, worth an estimated £248 million.94
The Boulby mine, which produces salt in conjunction with potash, directly employs
about 1,000 people, half of whom work underground.95 The mine that is to be
established in the NYM National Park is expected to employ between 1,000 and
2,000 people and could make the UK a major world exporter of potash.96
Salt England accounts for 95% of UK salt production, 80% of which takes place in
Cheshire; the Boulby potash mine in Yorkshire is another large centre. About 70% of
salt is extracted through solution mining, the rest mined as rock. County Antrim is the
main area of salt production in Northern Ireland. Rock salt is primarily used for de-
icing roads and in agriculture. Brine salt is chiefly used in chemical industrial
processes that require chlorine. 6.6 million tonnes of salt were produced in the UK in
2013, with exports totalling 497,670 tonnes worth £42 million and imports 738,670
tonnes worth £54 million.
Silica sands contain a high proportion of silica and their properties make them
essential for glassmaking and a wide range of other industrial and horticultural
applications. UK production has declined from approaching 7 million tonnes in 1974
to about 4 million tonnes currently. Hydraulic fracturing for shale gas/oil could offer a
significant new market.
Gypsum Natural gypsum is used in plaster, plasterboard and cement making and
has historically been mainly extracted by mining in the UK. The amount extracted in
the UK has declined appreciably because of the use of desulphogypsum derived
from flue gas desulphurisation at coal-fired power stations.
93 BGS, Mineral Planning Factsheet, Kaolin, https://www.bgs.ac.uk/downloads/start.cfm?id=1362
94 Company information; BGS, UK Minerals Yearbook 2014, https://www.bgs.ac.uk/downloads/start.cfm?id=3030
95 BGS, Mineral Planning Factsheet, Potash, https://www.bgs.ac.uk/downloads/start.cfm?id=1367
96 Company information; H. Pidd, “North York Moors potash mine gets £1.7bn go-ahead”, Guardian, 30 June 2015,
http://www.theguardian.com/environment/2015/jun/30/north-york-moors-potash-mine-gets-17bn-go-ahead

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Industrial and agricultural carbonates are important in iron and steel making,
sugar refining and glass making, as fillers in various products, to reduce soil acidity
in agriculture and flue gas desulphurisation in coal fired power generation. Total
industrial carbonates production peaked at around 11.5 million tonnes in the late
1990s but was around 10 million tonnes in 2014.
Fluorspar is the most important and only UK source of the element fluorine, most of
which is used in the manufacture of hydrofluoric acid. It is extracted from the
Southern Pennine ore field in the Peak District National Park.
Barytes is principally used as a weighting agent in drilling fluids used in hydrocarbon
exploration, to which its fortunes have been linked. The major source comes from
the Foss mine near Aberfeldy in Scotland.
Metal minerals
Tungsten (wolfram) is an essential element in a range of industrial processes,
valued for its high melting point, density and extreme strength. England hosts the
world’s fourth largest known tungsten deposit – the Drakelands Mine near Plympton,
Devon. This has been estimated to contain 318,800 tonnes of tungsten metal, or
about 10% of the world’s known reserves, as well as an estimated 43,700 tonnes of
tin. Production at Drakelands, historically known as Hemerdon mine, began in 2015
after a 70-year break, operated by Australian company Wolf Minerals. This is the first
significant new metal mine to open in the UK for 45 years. Production will take the
form of open-pit mining, and the company predicts producing 5,000 tonnes of
tungsten concentrate and 1,000 of tin concentrate each year, mainly for export.97

3.3.7. Outlook
Coal
At the end of 2014 the UK had an estimated 166 million tonnes of coal reserves and
resources at operating surface and underground mines together with those in the
planning process. In addition there was some 167 million tonnes of resources in
projects at the pre-planning stage plus just under 4 billion tonnes of potential
resources at identified projects developed to various stages in the past 30 years.98
Construction minerals
Construction output has increased since the end of the industry recession and rose
by 9.5% in 2014. Independent forecasts suggest a growth trend in construction of
3% to 5% per annum in the medium term to 2018, based on factors including modest
growth in housebuilding, increased spending on infrastructure projects in areas such
as transport, energy and water, and increases in commercial construction (including
offices and retail development) outside London and the South-East. The demand
trend for construction minerals such as aggregates is therefore likely to increase.
Longer- term construction-related demand will depend on economic performance
and government spending and policy decisions, but projected UK population
increases to 2030 suggests a continuing underlying need for construction activity
and minerals.
97 BGS, Mineral profiles, Tungsten, http://www.bgs.ac.uk/downloads/start.cfm?id=1981; Wolf Minerals, Drakelands Mine,
http://www.wolfminerals.com.au/irm/content/drakelands-mine.aspx?RID=324&RedirectCount=1
98 Source: Coal Authority, email communication.

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Although there may be a greater general focus on the use of recycled materials in
aggregates markets, their use is already mature in domestic markets (in recent years
recycled materials have made up an estimated 25% to 30% of the market in
England, Wales and Scotland, over twice the European average). Therefore,
demand for quarried and dredged aggregates is likely to remain significant.
Geologically the UK has substantial resources of construction minerals, which will
remain subject to planning approvals before they can be extracted.
Industrial and metal minerals
Future extraction trends for industrial minerals will depend on movements in UK and
overseas markets and on the competitiveness of operating costs and the business
environment in the UK. The recent opening of a globally significant tungsten mine in
Devon and planning approval for a major new potash mine in the NYM illustrate the
continuing importance of the UK as a mineral producer.
Recent assessment of the gold deposit at Curraghinalt in Northern Ireland gives a
measured mineral resource of 15,100 ounces, an indicated mineral resource of
989,000 ounces and inferred mineral resource of 2,490,000 ounces: a significant
deposit in global terms.99
For both aggregates and industrial minerals, future extraction trends will be linked to
economic growth. The National Planning Policy Framework (NPPF) recognises in
paragraph 142 that ‘Minerals are essential to support sustainable economic growth
and our quality of life. It is therefore important that there is a sufficient supply of
material to provide the infrastructure, buildings, energy and goods that the country
needs. However, since minerals are a finite natural resource, and can only be
worked where they are found, it is important to make best use of them to secure their
long-term conservation.100
The NPPF also places an obligation on MPAs to plan for a steady and adequate
supply of aggregates and industrial minerals.
3.4 Beneficial Ownership
The UK EITI Multi-Stakeholder Group (MSG) agreed to incorporate beneficial
ownership disclosure as an ongoing reporting requirement. Accordingly, companies
reporting under the UK EITI were asked to disclose their beneficial owners, that is,
the identity of the people who ultimately own and control each company.
The approach to beneficial ownership in the UK EITI is aligned with the related
provisions of the Small Business, Enterprise and Employment Act 2015.101
Publicly listed companies are asked to confirm their listed status, because they are
already required to provide ownership information under stock exchange
requirements. Private companies are asked to identify the owners who exercise
control or receive economic benefits from the company. This control or benefit could
99 Source: Micon International for Dalradian Resources Inc., An Updated Preliminary Economic Assessment of the Curraghinalt
Gold Deposit, Tyrone Project, Northern Ireland, October 2014, filed on SEDAR,
http://s1.q4cdn.com/162468244/files/doc_downloads/PEA/Curraghinalt-PEA-Report-2014-10-31-(SEDAR).pdf
100 DCLG, NPPF, 2012, para 142,
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6077/2116950.pdf
101 http://www.legislation.gov.uk/ukpga/2015/26/contents/enacted

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UK EITI report for 2014
be represented by owners having shareholdings of 25% or more or be exercised
through one or more intermediary companies (trusts or company partners) or by
other means.
Private companies are also asked to disclose information on any owners who are
identified as “politically exposed”, that is, have political influence, or who as family
members or close associates have links to senior political figures or government
officials in the UK or abroad, and who have a share of 5% or more in the company. A
senior company official is required to verify the information provided.
Data collected on reporting companies’ beneficial ownership and politically exposed
persons is detailed in Annex 5 of this report. Out of the 13 private companies that
reported beneficial ownership information, and which made payments to the UK
Government, 1 company (HJ Banks) has reported a beneficial owner who holds
more than 25% of the shares in the company.
3.5 The UK’s Budget and Audit Processes
The UK Government publishes full details of its income and expenditure (outturn
figures, estimates and forecasts).102 Budget forecasting is now overseen by the
independent Office for Budget Responsibility (OBR).103 Government accounts are
audited by the National Audit Office (NAO)104 and scrutinised by the Public Accounts
Committee.105
With very few exceptions (see below for one relating to extractive income), central
government receipts are not hypothecated to specific items or types of expenditure.
From 2015 onwards, that will change in the case of the newly introduced OGA levy,
which will fund the operation of the recently created Oil and Gas Authority (OGA).106
The only extractive revenues currently earmarked for specific UK programmes or
geographic regions involve the allocation of a population-based share of income
from seaward petroleum licences to the Northern Ireland Government, as required
by section 2 of the Miscellaneous Financial Provisions Act 1968. The amount
transferred in 2014/15 was £1,850,000 (£1,759,000 in 2013/14). 107

102 See e.g. HM Treasury, Summer Budget 2015, https://www.gov.uk/government/publications/summer-budget-2015
103 OBS, http://budgetresponsibility.org.uk/
104 NAO, https://www.nao.org.uk/
105 Public Accounts Committee, http://www.parliament.uk/business/committees/committees-a-z/commons-select/public-
accounts-committee/
106 DECC, Funding the Oil and Gas Authority, https://www.gov.uk/government/consultations/funding-the-oil-and-gas-authority-
consultation-on-levy-design
107 DECC, Annual report and accounts: 2014 to 2015, https://www.gov.uk/government/publications/decc-annual-report-and-
accounts-2014-to-2015

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3. RECONCILIATION RESULTS
We present below the detailed results of our reconciliation exercise, as well as
differences noted between amounts paid by extractive companies and amounts
received by Government Agencies.
3.1. Payment Reconciliation between Extractive Companies and Government
Agencies
The table below summarises the differences between the payments reported by
extractive companies and receipts reported by the various Government Agencies.
The MSG agreed that differences of £10,000 or less were not considered material
and were not investigated by the IA. Any companies with differences below this
threshold are considered fully reconciled and fully compliant with EITI.
The table includes consolidated figures based on the reporting templates prepared
by every extractive company and Government Agency.
(in £000)
Company
Government
Agencies
(A)
Extractive
companies
(B)
Difference
(B) - (A)
Oil & Gas
3,173,388
2,373,990
(799,398)
Adamo Energy (UK) Ltd
139
139
-
Alkane Energy plc
240
240
-
Alpha Petroleum Resources Limited
1,135
1,130
(5)
Apache North Sea
475,774
475,774
-
Atlantic Petroleum UK Ltd
173
173
-
Bayerngas Europe Ltd:
115
115
-
BG Group Plc
646,079
646,079
-
BP
(128,552)
(128,556)
(4)
CalEnergy Resources Group
(135)
(135)
-
Carrizo Oil & Gas, Inc.
116
116
-
Centrica Energy E&P
181,490
181,500
10
Chevron North Sea Limited
38,388
38,388
-
Chrysaor Holdings Limited
391
391
-
CNR International
419
419
-
ConocoPhillips
220,154
220,149
(5)
Dana Petroleum
(5,903)
(5,899)
4
DEA UK
2,439
2,439
-
DONG E&P UK Ltd
838
838
-
Dyas UK Ltd and EOG Ltd
15,000
15,000
-
E.ON E&P UK Limited
2,114
2,111
(3)
Egdon Resources plc
203
203
-
Eni UK Limited
153,118
153,116
(2)
EnQuest PLC
6,173
6,173
-
Europa Oil & Gas Limited
400
400
-
ExxonMobil
(31,931)
(31,926)
5
Fairfield Energy Limited
202
211
9
GDF SUEZ E&P UK Ltd
7,855
7,856
1
Hess Limited
250
250
-
Hurricane Energy plc
1,093
1,093
-
Idemitsu Petroleum UK Ltd.
9,144
9,144
-
IGas Energy Group
1,659
1,659
-
InfraStrata plc
86
86
-
Ithaca Energy (UK) Limited
17,039
17,039
-
JX Nippon Exploration and Production (U.K.) Limited
(19,989)
(19,989)
-
Maersk Oil North Sea UK Limited
12,506
12,506
-
Marathon Oil
97,243
97,240
(3)
Marubeni North Sea Limited
363
363
-
Mitsui E&P UK Ltd
9,915
9,915
-
MPX North Sea Limited
227
227
-

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(in £000)
Company
Government
Agencies
(A)
Extractive
companies
(B)
Difference
(B) - (A)
Murphy Petroleum Limited
221
221
-
Noble Energy (Oilex) Ltd
383
383
-
Norwegian Energy Company UK Ltd
233
233
-
OMV (U.K.) Limited
(402)
(402)
-
Parkmead Group plc
449
449
-
Perenco UK
251,924
251,929
5
Premier Oil
35,548
35,548
-
Providence Resources Plc
197
197
-
Shell UK Limited
(187,324)
(187,324)
-
Serica Energy (UK) Limited
355
355
-
Statoil (UK) Limited
9,469
9,469
-
Sterling Resources (UK) plc
368
368
-
Suncor Energy UK
550,614
550,614
-
Talisman Sinopec Energy UK Limited
(102,525)
(102,525)
-
Taqa Global
79,873
79,873
-
Total Holdings UK Limited
12,014
12,007
(7)
Tullow Oil plc
5,090
5,090
-
Verus Petroleum Holding Limited
125
125
-
Wintershall Noordzee B.V.
507
507
-
Xcite Energy Resources plc
751
751
-
Other companies
799,548
145
(799,403)
Mining & Quarrying
59,848
57,168
(2,680)
Aggregate Industries UK Ltd
3,212
3,212
-
Breedon Aggregates Ltd
1,998
2,000
2
Britannia Aggregates Ltd
182
187
5
CEMEX UK
3,847
3,835
(12)
Cleveland Potash Limited
1,919
1,919
-
Compass Minerals- Winsford Salt Mine
919
919
-
Hanson UK
3,404
3,404
-
Hargreaves Services plc
4,486
4,483
(3)
HJ Banks & Company
3,966
3,966
-
Saint-Gobain Construction Products UK Limited
29,520
29,520
-
Tarmac Holdings Limited
3,052
2,899
(153)
Volker Dredging Ltd
730
730
-
Other companies
2,613
94
(2,519)
Total payments
3,233,236
2,431,158
(802,078)
3.2. Unreconciled Differences
After reconciliation, there were only a handful of differences in excess of the £10,000
materiality threshold agreed by the MSG. The main difference relates to payments
by Tarmac to TCE.
Tables in section 1 summarises the total in-scope amounts reported as having been
received by Government Agencies and/or reported as having been paid by extractive
companies during the calendar year 2014.
There are minor differences in the totals reported here and in the first chapter for
PRT and RFCT/SC which come from published HMRC estimates.108

108 Source: HM Revenue & Customs (HMRC), Tax Receipts and National Insurance Contributions for the UK.
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk

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4. INDEPENDENT ADMINISTRATOR’S RECOMMENDATIONS TO THE MSG
These recommendations are made solely to assist the MSG in the definition of the scope of the future
reconciliation exercises including:
• a reporting template for government agencies;
• the reporting unit (£);
• the materiality threshold for the revenue streams;
• overall coverage of the report;
• determining in scope companies in the mining & quarrying sector; and
• register of licences for the mining and quarrying sector.

i.
Reporting template for Government Agencies
Paragraph 5.2 of the 2013 EITI Standard requires the MSG and the IA to develop the
reporting templates and agree on the assurances to be provided by the reporting
entities to the IA. This may include sign off by a senior company or confirmations
from the company / government auditors.
The MSG discussed assurances to be provided by reporting entities during the
September 2015 meeting. It was concluded that the statutory requirements on
government bodies and Companies Act requirements on the companies were
sufficient for EITI purposes.
However, while templates requiring sign off by senior company officials had been
designed for companies, there was not a template for Government Agencies. This
caused some difficulties in the reconciliation process as we received data from some
government bodies in a different format from those received from companies.
Absence of an agreed reporting template for Government Agencies caused several
challenges to the reconciliation process. For example, the data received from one
government body was not structured in the same way as the companies reporting
templates.
It is highly recommended that the MSG agree a reporting template for Government
Agencies reporting. This should be designed to facilitate the reconciliation work.
ii.
Reporting unit
We noted that the use of ‘thousand £’ in the reporting template created confusion for
some extractive companies. We received a number of templates where payments
were reported in units of £ instead of thousand £. This issue has led us to request
confirmations from various companies in order to check whether they have reported
the correct amount.
We recommend that in future reconciliation exercises both extractive companies and
Government Agencies are asked to report their payments in units of £ to avoid
confusion.
iii.
Materiality threshold
In accordance with requirement 4.1 of the 2013 EITI Standard, the MSG is required
to agree which payments and revenues are material and therefore must be
disclosed, including appropriate materiality definitions and thresholds.

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Payments and revenues are considered material if their omission or misstatement
could significantly affect the comprehensiveness of the EITI Report. A description of
each revenue stream, related materiality definitions and thresholds should be
included in the EITI Report. In establishing materiality definitions and thresholds, the
MSG should consider the size of the revenue streams relative to total revenues. The
MSG should document the options considered and the rationale for establishing the
definitions and thresholds.
The MSG has agreed that the £86,000 disclosure threshold will be applied at the
group level for each payment stream. However, a number of companies applied the
threshold to individual payments rather than to total payment streams.
In addition, companies may have payment streams above the threshold and other
payment streams which are below the set threshold. We noted that in some
instances, entities reported payment streams below the materiality threshold as they
were already considered within the scope (due to making significant payments for
other types of payment streams). We also noted the opposite situation where
companies or Government Agencies reported only payment streams above the
materiality threshold.
We recommend that in future reconciliation exercises the materiality threshold is
applied to the company and not to each payment stream. If one tax meets the
materiality threshold of £86,000, all other taxes under the materiality threshold would
then be included in the EITI scope.
iv.
Overall coverage of the EITI report
As highlighted in the Executive Summary, there is specific legislation in the UK which
prevents HMRC from disclosing confidential taxpayer information.109 HMRC are
therefore not able to provide data relating to tax payments received from the
extractive companies without the consent of these parties. Consequently, we were
unable to report all companies which had made material tax payments in the year.
Extractive companies were not obliged to disclose their payments, thus 72 extractive
companies have not reported their figures either for lack of being in scope, lack of
involvement in the EITI process or due to lack of contact details available to us.
In view of the current legislation with regard to disclosure of confidential information,
we recommend that the MSG focuses on enhancing the communication aspects of
the EITI process in the UK in order to encourage more companies to join the
reporting process, notwithstanding the significant efforts already made in this
respect. The MSG should introduce the EITI to extractive companies through a
strong awareness campaign such as conferences, meetings, workshops, etc.
v.
Determining in scope companies in the Mining & Quarrying sector
Due to the difficulty in tracing all extractive companies which might exceed the
£86,000 threshold, the MSG decided to identify companies responsible for 80% of
the total output volume of the mining and quarrying sector. Consequently, the Mining
Sub-Group provided a list of companies that constitute over 80% of production of
109 http://www.hmrc.gov.uk/manuals/emmanual/em0070.htm

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UK EITI report for 2014
mining and quarrying in the UK. This list provides the basis for determining which
companies will be within scope for the EITI reconciliation exercise.
A list of companies representing those potentially in scope above the lower cut off
(80% of production) were prepared from three sources: (i) the Minerals Products
Association (covering aggregates); (ii) the Coal Authority (covering both surface and
underground coal); and (iii) the Mining Association of the UK (covering underground
non coal, as well as other industrial minerals).
The methodology adopted for selecting mining companies considers only the volume
of production and was chosen because it was an initial means of identifying
companies more likely to be in the scope of EITI. One of the drawbacks of the
methodology is that it does not identify companies by the value of extraction,
profitability or potential payments to Government.
It would therefore be worthwhile reviewing the methodology used in order to better
identify mining and quarrying companies within the scope of EITI. One avenue to
explore could be the potential to link participation in EITI with the UK implementation
of the Reports on Payments to Government Regulation 2014.
vi.
Register of licences for the mining sector
In accordance with requirement 3.9 of the 2013 EITI Standard, implementing
countries are required to maintain a publicly available register or cadastre system(s)
with timely and comprehensive information regarding each of the licences pertaining
to companies operating in the extractive sector. The Oil & Gas Authority has a
publicly available register of licences which can be consulted through its website.
The Coal Authority has an offline public registry of licences and does not publish
licences online. Information regarding coal licences can be requested by post and
email.
However, The Crown Estate has a policy not to disclose contracts and agreements
relating to minerals on the grounds that they contain commercially confidential
information.
The MSG should discuss the possibility of requesting licence information from mining
companies included in the scope of the EITI Report. This can be done through the
reporting template where detailed information can be requested. The information
collected from companies could then be annexed to the EITI report.

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ANNEXES

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UK EITI report for 2014
Annex 1: Detail of mining & quarrying receipts
Mining & Quarrying receipts reported by the relevant Government Agencies are
detailed by company as follows:
(in £000)
Company
Government
Agencies

Corporation
Tax
Payments to
the Crown
Estate
Payment to
the Coal
Authority
S106
payment110
Total
Aggregate Industries UK Ltd
3,212
94
3,306
Breedon Aggregates Ltd
1,442
556
1,998
Britannia Aggregates Ltd
182
182
CEMEX UK
3,847
3,847
Cleveland Potash Limited
1,919
1,919
Compass Minerals- Winsford Salt Mine
919
919
Hanson UK
3,404
3,404
Hargreaves Services plc
4,384
102
4,486
HJ Banks & Company
3,966
3,966
Saint-Gobain Construction Products UK Ltd
29,520
29,520
Tarmac Holdings Limited
3,052
3,052
Volker Dredging Ltd
730
730
Other companies
1,520
1,520
Total payments
43,443
15,210
102
94
58,849

110 This payment was reported unilaterally by the company.

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UK EITI report for 2014
Annex 2: Detail of RFCT & SC by company
RFCT & SC reported by HMRC are detailed by company as follows:
(in £000)
Company
RFCT & SC
Apache North Sea
282,632
Atlantic Petroleum UK Ltd
173
BG Group Plc
612,000
Centrica Energy E&P
20,000
Chevron North Sea Limited
22,009
ConocoPhillips
175,429
Dyas UK Ltd and EOG Ltd
15,000
EnCounter Oil Ltd
96
Eni UK Limited
141,969
Europa Oil & Gas Ltd
400
ExxonMobil
10,599
Ithaca Energy (UK) Ltd
5,504
Marathon Oil
82,921
Murphy Petroleum Ltd
221
Noble Energy (Oilex) Ltd
383
Perenco UK
154,955
Suncor Energy UK
550,614
Total payments
2,074,905
BP
(31,856)
Dana Petroleum
(4,255)
EnQuest PLC
(1,491)
JX Nippon Exploration and Production (U.K.) Ltd
(13,334)
OMV (U.K.) Limited
(1,998)
Premier Oil
(6,590)
Shell UK Limited
(203,555)
Talisman Sinopec Energy UK Ltd
(50,000)
Taqa Global
(33,357)
Total Holdings UK Ltd
(3,066)
Total repayments
(349,502)
Total net payments
1,725,403

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Annex 3: Detail of PRT by company
PRT reported by HMRC for those companies signing waivers are detailed as follows.
In all cases, material payments were reconciled and the company’s reported figure
differed from that shown here by no more than the agreed materiality threshold of
£10,000.e should show the figures to the nearest £000 not
(in £000)
Company / field name
PRT
Apache North Sea
192,399
Beryl
38,969
Forties
148,414
Nelson
9,118
Scott
(4,102)
BG Group
33,362
Everest
3,923
Judy
29,439
BP
(102,622)
Alba
(178)
Bruce
8,383
Everest
3,370
Forties
(64,314)
Magnus
(39,927)
South Valiant
(1,736)
Vulcan
(8,220)
CalEnergy Resources Group
(135)
Victor
(135)
Centrica Energy E&P
157,147
Alba
15,698
Amethyst East
(365)
Audrey
(1,113)
Brae
(1,764)
East Brae
1,953
Galleon
(683)
Ravenspurn
(6)
South Morecambe
98,814
Statfjord
46,333
Victor
(1,720)
Chevron
14,650
Alba
14,650
ConocoPhillips
39,791
Everest
55
Galleon
(646)
Judy
38,076
Miller
(1,489)
Murdoch
12,748
South Valiant
(3,845)
Thistle
(36)
Victor
(667)
Vulcan
(4,405)
Dana Petroleum
(2,865)
Claymore
(2,261)
Victor
(604)
Eni UK Limited
10,056
Everest
28
Judy
29,098
Magnus
(2,719)
Ninian
(8,689)
Piper
(7,662)
EnQuest PLC
5,773
Alba
5,773
(in £000)
Company / field name
PRT
ExxonMobil
(42,530)
Barque
(3,098)
Brent
(61,631)
Forties
4,105
Fulmar
154
Galleon
(3,887)
Nelson
18,551
North Sean
(1,713)
South Sean
6,285
Victor
(1,296)
GDF SUEZ E&P UK Ltd
5,005
Murdoch
5,005
Idemitsu
9,145
Nelson
9,145
Ithaca Energy (UK) Limited
10,891
Wytch Farm
10,891
JX Nippon Exploration and Production
(U.K.) Ltd
(6,783)
Brae
(1,127)
East Brae
1,840
Magnus
(7,496)
Maersk Oil North Sea UK Limited
11,314
Scott
(248)
Wytch Farm
11,562
Marathon Oil
14,041
Brae
(2,934)
East Brae
16,975
Marubeni North Sea Limited
363
Bruce
1,981
Magnus
(1,746)
Ninian
128
Mitsui E&P UK Ltd
9,915
Alba
9,915
Perenco UK
93,053
Amethyst East
837
Lancelot
4,324
West Sole
18,665
Wytch Farm
69,227
Premier Oil
40,610
Nelson
1,236
Scott
(7,784)
Wytch Farm
47,158
Shell UK Limited
14,296
Barque
(6,108)
Beryl
38,401
Brent
(69,321)
Forties
79
Fulmar
176
Galleon
(2,840)
Miller
(3)
North Sean
(2,386)
NW Hutton
(1)
South Sean
3,175

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UK EITI report for 2014
(in £000)
Company / field name
PRT
Statoil (UK) Limited (continued)
8,404
Alba
8,404
Talisman Sinopec Energy UK Limited
(54,251)
Claymore
(31,899)
Piper
(30,103)
Wytch Farm
7,751
Taqa Global
112,001
Brae
1,029
East Brae
21,639
North Cormorant
69,877
(in £000)
Company / field name
PRT
Taqas Global (continued)
112,001
SNC Brae
(553)
Tern
20,009
Total
10,877
Alwyn North
5,537
Bruce
5,340
Tullow Oil plc
3,868
Murdoch
3,868
Total payments
587,775

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UK EITI report for 2014
Annex 4: Detail of petroleum licence fees by company and licence number
Licences fees reported by the OGA regardless of the £86,000 materiality threshold
are detailed by company and licence number as follows.
In all cases, where companies reported material payments they were reconciled and
the company’s reported figure differed from that shown here by no more than the
agreed materiality threshold of £10,000.

(in £000)
Company / licence number
Licence
Fees
4Gen Energy (UK) Ltd
4
P1949
1
P1959
3
Adamo Energy (UK) Ltd
138
PEDL100
138
Alkane Energy (UK) Ltd
73
AL010
28
EXL253
3
PEDL001
11
PEDL014
6
PEDL037
8
PEDL039
2
PEDL191
3
PEDL202
4
PEDL254
5
PEDL255
3
Alpha Petroleum Resources Ltd
768
P001
7
P1062
61
P1070
313
P1736
109
P683
278
Altaquest Energy Corporation (UK) Ltd
40
EXL141
24
EXL294
16
Angus Energy Weald Basin No.3
32
PL235
20
PL241
12
Antrim Resources (NI) Ltd
23
P077
7
P1875
16
Apache Beryl 1 Ltd
418
P087
32
P103
51
P139
37
P1764
2
P1982
29
P1983
6
P1984
1
P1985
16
P1986
20
P254
10
P337
214
Apache North Sea Ltd
323
P057 (i)
4
P057 (ii)
4
P084 (i)
6
P084 (ii)
6
(in £000)
Company / licence number
Licence
Fees
Apache North Sea Ltd (continued)
323
P087
32
P1753
31
P1788
27
P1820
24
P1998
23
P2001
4
P2005
26
P2035
12
P2042
26
P246 (i)
41
P246 (ii)
41
P255 (i)
8
P255 (ii)
8
APEC Ltd
3
P1962
2
P2002
1
Ardent Oil Ltd
4
P1950
2
P1951
1
P1955
1
ATP Oil & Gas plc ['Alpha']
367
P1034
261
P1609
106
Aurora Exploration Ltd
5
PEDL164
5
BayernGas Europe Ltd
116
P1639
66
P2199
50
BG International Ltd
718
P066
44
P098
28
P101
73
P110
68
P2071
30
P2078
3
P2079
6
P2187
4
P591
136
P672
68
P810
258
BHP Billiton Petroleum Ltd
15
P209
15
Biogas Technology (Sawtry) Ltd
49
EXL203
24
EXL276
25
Blackland Park Exploration Ltd
5
PL199
4

| P a g e 59

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Blackland Park Exploration Ltd (continued)
5
PL215
1
BP Exploration Operating Company Ltd
5,926
E408
2
P057 (i)
12
P057 (ii)
12
P059 (i)
18
P059 (ii)
14
P092
78
P103
43
P110
4
P111
29
P1570
161
P165
71
P168
52
P1777
31
P1803
25
P1819
3
P193
69
P198
36
P2041
11
P2111 (i)
13
P2111 (ii)
13
P2125
94
P2127 (i)
72
P2127 (ii)
72
P240
5
P276
167
P340 (i)
242
P340 (ii)
242
P363 (i)
204
P363 (ii)
204
P556
1,310
P558
442
P566
124
P803
520
P974
176
P975 (i)
645
P975 (ii)
710
Bridge Energy (UK) Ltd
116
P1767
81
P1791
10
P1915
23
P2122
2
Burgate (E&P) Ltd
2
P2076 (i)
1
P2076 (ii)
1
Burlington Resources (Irish Sea) Ltd
['Conoco']
732
P099
16
P1904
6
P251
9
P287
182
P547
122
P706
366
P865
31
Carrizo Oil & Gas, Inc
115
P1797
23
P1801
20
(in £000)
Company / licence number
Licence
Fees
Carrizo Oil & Gas, Inc (continued)

P2121 (i)
36
P2121 (ii)
36
Celtique Energie Holdings Ltd
10
PEDL197
10
Celtique Energie Weald Ltd
50
PEDL231
20
PEDL234
15
PEDL243
15
Centrica North Sea Gas Ltd
2,039
P028
57
P030
5
P1060
122
P1186 (i)
22
P1186 (ii)
162
P1241 (i)
205
P1241 (ii)
244
P1246 (i)
20
P1246 (ii)
23
P1447
182
P1724
34
P1727
72
P1828
142
P1899
71
P1906
62
P455
287
P468
329
Centrica North Sea Oil Ltd
369
P1673
44
P212
24
P351
301
Centrica Resources Ltd
1,274
P016
8
P083
14
P104
10
P1354
135
P1443
147
P2019
30
P2057
22
P2066
10
P2108
63
P2112
72
P2116
1
P2117
22
P2120
7
P2126
124
P2128
36
P293
8
P323
141
P612
110
P774
37
P776
147
P901
130
CGG Services (UK) Ltd
4
E422
2
P2008
2
Chevron North Sea Ltd
1,730
P1026
603
P119
23

| P a g e 60

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Chevron North Sea Ltd (continued)
1,730
P1191 (i)
274
P1191 (ii)
325
P1272
26
P183
16
P213
65
P264
79
P324
23
P345 (i)
148
P345 (ii)
148
Chrysaor Ltd
392
P1578
44
P1932
8
P1977
305
P2074
35
Cirque Energy (UK) Ltd
15
EXL294
15
Cluff Natural Resources plc
36
P2248
3
P2252
11
P2253
3
P2259
8
P2261
11
CNR International (UK) Ltd
417
P104
12
P114
4
P119
17
P199
28
P202
42
P203
12
P204
46
P224
14
P225
30
P328
15
P329
61
P748
136
Coastal Oil & Gas Ltd
21
PEDL216
2
PEDL217
5
PEDL219
5
PEDL220
5
PEDL249
1
PEDL250
1
PEDL252
2
ConocoPhillips (UK) Ltd
3,848
P025
34
P033
133
P039
24
P103
70
P1058
347
P1139
265
P118
15
P130
111
P170
35
P1773
7
P1798
3
P1809
5
P2081
3
P341
177
(in £000)
Company / licence number
Licence
Fees
ConocoPhillips (UK) Ltd (continued)
3,848
P347
82
P450
414
P451
479
P452
261
P459
319
P519
269
P590
110
P640
250
P691
193
P741
242
ConocoPhillips Petroleum (UK) Ltd
349
P032
56
P079
33
P1589
100
P1821
2
P672
158
Courage Energy Ltd
40
PEDL090
40
Cuadrilla Balcombe Ltd
8
PEDL244
8
Cuadrilla Bowland Ltd
56
PEDL165
56
Cuadrilla Elswick Ltd
65
EXL269
65
Cuadrilla Weald Ltd
54
EXL189
54
Dana Petroleum (E&P) Ltd
1,215
P021
28
P1051
98
P1242
301
P1566
163
P1610
66
P1720
44
P1742
21
P1766
7
P1786
13
P1896
39
P1935
17
P1987
2
P215
1
P225
57
P353
135
P361
51
P472
42
P570
130
Dart Energy (EE) Ltd
29
PEDL173
4
PEDL174
5
PEDL178
3
PEDL179
4
PEDL200
6
PEDL207
1
PEDL210
6
Dart Energy (FV) Ltd
87
PEDL133
83
PEDL163
4
Dart Energy (WE) Ltd
20
PEDL185
10

| P a g e 61

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Dart Energy (WE) Ltd (continued)
20
PEDL188
5
PEDL189
5
DEO Petroleum (UK) Ltd
131
P588
131
DEO Petroleum Exploration Ltd
10
P1993
10
Dolphin Geophysical Ltd
2
E419
2
Dong E&P (UK) Ltd
838
P1598
459
P1931
18
P2014
59
P2021
40
P2022
114
P2044
148
E.On E&P (UK) Ltd
2,113
P1114
171
P1330
340
P2003
16
P2010
18
P2012
76
P2020
60
P2023
59
P2073
59
P2090
21
P2103 (i)
18
P2103 (ii)
18
P2105 (i)
17
P2105 (ii)
17
P2136 (i)
2
P2136 (ii)
2
P380
519
P452
65
P456
307
P686
194
P766
61
P771
73
Egdon Resouces (UK) Ltd
205
P1929
54
PEDL005
24
PEDL068
50
PEDL118
4
PEDL130
14
PEDL180
5
PEDL182
2
PEDL201
5
PEDL203
1
PEDL209
3
PEDL237
5
PEDL241
6
PEDL253
10
PL090
22
Elf Exploration (UK) Ltd (Total)
461
P2068
1
P362
279
P666
181
EMGS ASA
2
E428
2
(in £000)
Company / licence number
Licence
Fees
Encounter Oil Ltd
26
P1943
5
P1945
3
P2095 (i)
2
P2095 (ii)
2
P2096 (i)
7
P2096 (ii)
7
Endeavour Energy (UK) Ltd
656
P1615
22
P1948 (i)
109
P1948 (ii)
109
P1990
48
P1991
12
P1999
16
P2034
2
P2060
17
P2065
18
P226
56
P339
115
P592
132
Enegi Oil plc
41
P1974
15
P2007
26
ENI (UK) Ltd
92
P1620
92
ENI (ULX) Ltd
8
P473
8
ENI Hewitt Ltd
65
P028
63
P112
2
ENI Liverpool Bay Operating Company
937
P099
4
P710
688
P791
245
EnQuest Heather Ltd
1,896
P073
2
P1077
480
P1107
49
P1200
56
P1214
301
P1415
234
P1617
27
P1765
75
P1825
15
P1892
24
P1967
28
P1968
64
P1976
42
P1978
7
P1996
57
P2000
2
P2027
5
P2084
7
P209
11
P2137
5
P2143
9
P2148
12
P2176
29
P2201
17

| P a g e 62

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
EnQuest Heather Ltd (continued)
1,896
P236
26
P238
49
P242
39
P475
16
P585
97
P902
111
Enterprise Oil Ltd ['Shell']
69
P069 (i)
13
P069 (ii)
13
P077 (i)
14
P077 (ii)
14
P111
7
P114
8
EOG Resources (UK) Ltd
337
P1476
337
Europa Oil & Gas Ltd
70
DL001
14
DL003
6
PEDL143
23
PEDL181
27
Extract Petroleum Ltd
15
P1938
15
Fairfield Cedrus Ltd
94
P1746
29
P2089
36
P591
29
Fairfield Energy Ltd
88
P104
8
P2043
1
P2059
6
P232
16
P296
17
P721
40
Fairfield Fagus Ltd
20
P721
20
Faroe Petroleum Ltd
359
P1839
50
P1853
105
P2011
44
P2045
62
P324
13
P689
85
First Oil Expro Ltd
103
P1627
70
P1887
33
Frequent Oil Ltd
2
P2226
2
Fugro Survey Ltd
2
E424
2
GdF Suez E&P (UK) Ltd
2,852
P1055
1,485
P1588
41
P1731
62
P1745
23
P1799
37
P1805
16
P1818
8
P1823
9
(in £000)
Company / licence number
Licence
Fees
GdF Suez E&P (UK) Ltd (continued)
2,852
P1900
50
P1901
33
P1907
95
P1936 (i)
9
P1936 (ii)
9
P2083
6
P2087
2
P2102
5
P2113
1
P2130
36
P454
98
P611
532
P614
295
GP Energy Ltd
359
EXL273
58
EXL288
90
PEDL012
33
PEDL146
69
PEDL147
22
PEDL159
73
PEDL186
5
PEDL187
4
PL162
5
GTO Ltd
19
P2245
6
P2267
13
Harworth Power (Generation) Ltd
1
EXL250
1
Hess Ltd
250
P1830
18
P1831
57
P218
8
P310
123
P588
44
Humbly Grove Energy Ltd
12
PL116
12
Hurricane Energy Ltd
1,093
P1368
948
P1485
138
P1835
7
Hydrocarbon Resources Ltd
613
P1483
255
P153
43
P1919
161
P2106
23
P251
33
P543
98
Idemitsu Petroleum (UK) Ltd
22
P1800
22
IGas Energy (Caithness) Ltd
175
P1270 (i)
61
P1270 (ii)
75
PEDL158
39
Independent Oil & Gas Ltd
27
P1737
22
P1941
3
P2085 (i)
1
P2085 (ii)
1

| P a g e 63

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Infrastrata plc
86
P1918
86
Iona Energy Company (UK) Ltd
69
P1606
48
P1607
12
P185
9
Iranian Oil Company (UK) Ltd
38
P198
38
Island Gas (Singleton) Ltd
66
PEDL233
4
PL240
62
Island Gas Ltd
922
AL009
10
DL002
16
DL004
20
ML003
3
ML004
8
ML006
1
ML007
1
ML018
1
ML021
2
PEDL006
136
PEDL021
50
PEDL040
36
PEDL056
15
PEDL070
22
PEDL078
120
PEDL107
8
PEDL116
9
PEDL139
25
PEDL140
35
PEDL145
19
PEDL184
14
PEDL190
5
PEDL193
15
PEDL235
5
PL178
2
PL179
107
PL182
55
PL199
4
PL205
22
PL211
33
PL220
16
PL233
71
PL249
36
Ithaca Energy (UK) Ltd
642
P1011
19
P1031
22
P128
29
P1293
148
P1383
26
P1392
35
P1631
74
P1632
43
P1665
39
P1832
20
P187
20
P1994
12
P201
4
(in £000)
Company / licence number
Licence
Fees
Ithaca Energy (UK) Ltd (continued)
642
P2048
138
P2064
5
P982
8
Jetex Petroleum (UK) Ltd
7
P2092
7
JX Nippon E&P (UK) Ltd
128
E426
2
P1850
57
P312
69
Maersk Oil North Sea Ltd
1,192
P032
8
P090
3
P103
6
P1041
384
P1320
51
P1424
34
P1464
11
P1612
26
P1891
76
P2036
5
P2039
3
P2054
2
P2099
3
P2131
21
P2132
52
P233
51
P255
17
P257
7
P295
28
P496
290
P631
24
P735
57
P980
33
Magellan Petroleum (NT) Pty Ltd
2
PEDL246
2
Marathon Oil (UK) Ltd
281
P108
54
P313
191
P483
36
Margin Oil & Gas Ltd
11
P2263
11
Moorland Exploration Ltd
94
PEDL120
94
MPX North Sea Ltd ['Zennor']
227
P1633
198
P1763
27
P1981
2
Nautical Petroleum plc
115
P1759
21
P2123
94
Newton Energy (UK) Ltd
15
PEDL204
5
PEDL208
10
Nexen Petroleum (UK) Ltd
4,393
P1192 (i)
254
P1192 (ii)
302
P1298
114
P1560
31

| P a g e 64

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Nexen Petroleum (UK) Ltd (continued)
4,393
P1580
11
P1659
133
P1771
129
P1779
13
P1796
17
P1829
167
P1848
19
P185
109
P1893
61
P1988
14
P1992
16
P2029
15
P2046
5
P205
8
P2050
208
P2056
28
P2062
68
P2067
69
P2101 (i)
21
P2101 (ii)
21
P218
23
P244
50
P273
220
P300
302
P317
275
P928
1,690
Northern Petroleum (GB) Ltd
3
PEDL126
3
Norwegian Energy Company (UK) Ltd
233
P1768
39
P1934 (i)
9
P1934 (ii)
9
P1989
97
P2009
29
P2032
50
NP Solent Ltd
7
P1916
7
OK Energy Ltd
12
P2104
12
OMV (UK) Ltd
1,596
E436
2
P1028
669
P1189
342
P1190
455
P1833
21
P1849
45
P1854
48
P2080
14
Onshore Oilfield Services Ltd
10
PL215
10
ORG Geophysical Ltd
2
E437
2
PA Resources (UK) Ltd
4
P2025
4
Parkmead E&P Ltd
233
P2069
31
P2082
20
P2107 (i)
55
(in £000)
Company / licence number
Licence
Fees
Parkmead E&P Ltd (continued)
233
P2107 (ii)
55
P2110 (i)
36
P2110 (ii)
36
Perenco (UK) Ltd
3,920
ML005 (i)
3
ML005 (ii)
3
P001
119
P005
35
P016
152
P024
20
P025
63
P028
19
P030
14
P037
91
P050
10
P064
15
P105
6
P1061
155
P133
36
P138
11
P142
17
P1743
1
P1744
4
P2114 (i)
3
P2114 (ii)
3
P302
367
P460
365
P461
255
P463
233
P534
451
P606
133
P609
505
P685
386
P780
136
P787
75
P844
69
P947
105
PL089
33
PL259
27
Polarcus Seismic Ltd
2
E423
2
Premier Oil (UK) Ltd
1,526
P1042
137
P1420
289
P1430
528
P1463
131
P164
36
P1655
39
P1812
69
P1886
64
P201
16
P2028
15
P2040
34
P2063
17
P2070
20
P2077
34
P2086
44
P233
8

| P a g e 65

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Premier Oil (UK) Ltd (continued)
1,526
P354
45
Providence Resources (UK) Ltd
196
P1885
166
P1930
30
Rathlin Energy (UK) Ltd
49
PEDL183
49
Reach Coal Seam Gas Ltd
20
PEDL162
20
Regent Park Energy Ltd
116
PEDL011
6
PEDL040
14
PEDL043
46
PEDL056
25
PEDL057
20
PEDL169
3
PL161
2
RWE Dea (UK) Ltd
2,437
P1230
1,094
P1328
109
P1630
153
P1726
40
P1741
79
P1909
12
P1975
27
P2018
28
P2109 (i)
33
P2109 (ii)
33
P2119
28
P2134 (i)
38
P2134 (ii)
38
P520
134
P524
98
P607
325
P608
168
Scottish Power Ltd
17
PL161
4
PL162
13
Sendero Petroleum Ltd
145
P1783
63
P1795
12
P1888
29
P2013
8
P2031
33
Serica Energy (UK) Ltd
355
P1314
87
P1482
218
P1917
32
P2124
18
Seven Star Natural Gas Ltd
51
PEDL141 (i)
20
PEDL141 (ii)
25
PL213
6
Shell UK Limited
1,865
P007
88
P008
181
P011
55
P012
60
P013
72
(in £000)
Company / licence number
Licence
Fees
Shell UK Limited (continued)
1,865
P054
32
P064
2
P088
15
P096
8
P1015
77
P1117
50
P117
31
P132
61
P1664
18
P169
74
P1749
6
P1750
3
P1807
1
P185
6
P188
28
P1890
29
P1894
8
P1895
11
P1910
15
P1911
18
P1912
31
P1937
16
P2038
34
P2058
18
P233
13
P255
11
P257
22
P295
15
P296
48
P465
211
P523
12
P559
164
P598
112
P664
135
P732
44
P739
4
P886
26
Sonorex Oil & Gas Ltd
13
PEDL157
9
PEDL224
4
Spectrum Geo Ltd
2
E431
2
Statoil (UK) Ltd
1,066
E427
2
P1758
6
P1846
22
P1847
33
P2061
11
P2067
34
P2075
26
P2097 (i)
44
P2097 (ii)
44
P2144
92
P2145
71
P2151
1
P2152
9
P2207
105
P234
11

| P a g e 66

UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Statoil (UK) Ltd (continued)
1,066
P335
236
P493
83
P726
126
P920
45
P977
65
Sterling Resources (UK) Ltd
368
P1792
17
P1914
37
P2133 (i)
157
P2133 (ii)
157
Summit Petroleum Ltd
20
P2006
20
Suncor Energy (UK) Ltd
76
P1666
14
P1889
62
Swift Exploration Ltd
1
P1963
1
Talisman Sinopec Energy (UK) Ltd
1,725
P019
16
P020
13
P073 (i)
25
P073 (ii)
25
P111
11
P116
11
P1621
27
P1622
128
P1781
3
P1806
3
P185
27
P1880
34
P1939
1
P2049
10
P2053
86
P219
12
P220
24
P237
17
P240
8
P241
29
P249
22
P250
28
P256
5
P263
8
P266
218
P291
63
P292
15
P294
6
P295
1
P297
157
P307
178
P324
53
P344
180
P593
55
P729
148
P973
78
Taqa Bratani Ltd
1,230
P1021 (i)
12
P1021 (ii)
13
P1064
198
(in £000)
Company / licence number
Licence
Fees
Taqa Bratani Ltd (continued)
1,230
P1634
32
P1680
90
P1774
18
P184
32
P1969
11
P1995
33
P201
30
P2015
30
P205
5
P209
18
P226
17
P232
22
P239
1
P258
20
P296
78
P338
95
P474
2
P478
381
P945
22
P980 (i)
33
P980 (ii)
37
TGS Geophysical Co (UK) Ltd
4
E434 (i)
2
E434 (ii)
2
Third Energy (UK) Gas Ltd
9
DL005
7
PEDL177
2
Total E&P (UK) Ltd
3,746
E425
2
P090
82
P1159
177
P118
16
P119
5
P1195
476
P1453
605
P1626
104
P1678
14
P1754
31
P1755
63
P1789
17
P1816
10
P1822
23
P1970
8
P1973
12
P1980
21
P199
1
P2017
122
P2047
36
P2051
30
P2055
30
P2072
112
P208
1
P2194
48
P2203
45
P2204
28
P2214
117
P2216
50
P239
17

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UK EITI report for 2014
(in £000)
Company / licence number
Licence
Fees
Total E&P (UK) Ltd (continued)
3,746
P268
41
P281
31
P284
51
P416
38
P491
82
P622
16
P701
127
P724
51
P752
91
P911
530
P967
385
Trap Oil Ltd
304
P1267
199
P1556
56
P2026
3
P2170
46
Tullow Oil (SK) Ltd
1,222
P039
6
P453
459
P516
595
P786
50
P852
112
UK Methane Ltd
67
PEDL148
25
PEDL149
25
PEDL214
4
PEDL215
5
PEDL227
8
UPB Services Ltd
12
P1960 (i)
6
P1960 (ii)
6

(in £000)
Company / licence number
Licence
Fees
Veritas GeoPhysical Ltd
37
P2146
32
P2225
5
Verus Petroleum (SNS) Ltd
8
P2122
8
Viking (UK) Gas Ltd
38
PL077
5
PL079
10
PL080
11
PL081
12
WesternGeco Ltd
2
E435
2
Wingas Storage (UK) Ltd
29
PEDL005
29
Wintershall (E&P) Ltd
55
P1619
45
P1972
10
Wintershall Noordzee BV
452
P1239
367
P1733
4
P1902
4
P1903
17
P2115 (i)
7
P2115 (ii)
7
P2135 (i)
23
P2135 (ii)
23
Xcite Energy Resources Ltd
750
P1078
697
P1760
6
P1761
6
P1979
41
Zeus Petroleum Ltd
75
P1861
25
P1863
50
Total payments
68,583

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UK EITI report for 2014
Annex 5: Beneficial ownership reporting form
Of the 101 reporting templates received, 83 companies submitted a beneficial
ownership declaration form. 25 of these companies were privately held, of which 13
stated they had made material payments to the UK Government under UK EITI.
These 13 companies are detailed in the table below.
List of Privately owned companies making material payments which submitted
a beneficial ownership declaration form.
Company
Sector
Beneficial ownership disclosed
PEP disclosed
Alpha Petroleum Resources Ltd
Oil & Gas
No
No
Britannia Aggregates Ltd
Mining & Quarrying
No
No
Chrysaor Holdings Ltd
Oil & Gas
No
No
Dana Petroleum
Oil & Gas
No
No
DONG E&P UK Ltd1
Oil & Gas
No
No
Dyas UK Ltd and EOG Ltd
Oil & Gas
No
No
Fairfield Energy Ltd
Oil & Gas
No
No
GDF Suez E&P UK Ltd
Oil & Gas
No
No
HJ Banks & Company
Mining & Quarrying
Yes: Mr Harry James Banks
No
Mitsui E&P UK Ltd
Oil & Gas
No
No
Perenco UK
Oil & Gas
No
No
Statoil (UK) Ltd
Oil & Gas
No
No
Verus Petroleum Holding Ltd
Oil & Gas
No
No

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UK EITI report for 2014
Annex 6: Reporting templates
2014 Reporting Templates for Oil & Gas Companies
Template 1 - Tax and Licence Summary

Reporting group:
REPORTING ITEMS
PAYMENTS
(£ thousand)
REPAYMENTS
(£ thousand)
NET PAYMENT
(£ thousand)
1. TOTAL COPORATION TAX AND
SUPPLEMENTARY CHARGE
a. Ring Fence CT and Supplementary
Charge
b. Mainstream CT
2. PETROLEUM REVENUE TAX
3. PETROLEUM LICENCE FEES
4. PAYMENTS TO THE CROWN ESTATE
SUM OF REPORTED PAYMENTS
Name of contact person:
Telephone number
E-mail:
SIGNATURE
DATE
I confirm that the information above reflects an accurate record of the relevant transactions during 2014.
REPORTING TEMPLATE ACCORDING TO THE UK EITI REGULATIONS (TEMPLATE 1)
PAYMENTS/REPAYMENTS IN CALENDAR YEAR 2014

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Template 2 - Corporate Tax and Supplementary Charge

Template 3 - Petroleum Revenue Tax

Reporting
Entity (Name) UTR
RFCT/SC Payment
(£ thousand)
RFCT/SC Repayment
(£ thousand)
NET RFCT/SC
Payment
(£ thousand)
Mainstream CT Payment
(£ thousand)
Mainstream CT Repayment
(£ thousand)
NET Mainstream CT
Payment
(£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 2)
RFCT/SC PAYMENTS/REPAYMENTS IN THE CALENDAR YEAR 2014 PER GPA/INDIVIDUAL COMPANY
Reporting Entity (Name)
Field (Name)
PRT
Reference
PRT Payment
(£ thousand)
PRT Repayment
(£ thousand)
NET Payment
(£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 3)
PRT PAYMENTS/REPAYMENTS IN THE CALENDAR YEAR 2014 PER FIELD

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UK EITI report for 2014
Template 4 - Licence Fees

Template 5: The Crown Estate

Reporting entity (Name)
Licence Number
Licence Fee (£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 4)
PAYMENTS IN THE CALENDAR YEAR 2014 PER PETROLEUM LICENCE
Reporting Entity (Name)
License Number or other reference
Payment (£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 5)
PAYMENTS TO THE CROWN ESTATE IN THE CALENDAR YEAR 2014

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UK EITI report for 2014
2014 Reporting Templates for Mining & Quarrying Companies
Template 1 - Tax and Licence Summary

Reporting group:
REPORTING ITEMS
PAYMENTS
(£ thousand)
REPAYMENTS
(£ thousand)
NET PAYMENT
(£ thousand)
1. CORPORATION TAX
2. COAL AUTHORITY LICENSING AND
PERMISSIONS CHARGES
3. PAYMENTS TO THE CROWN ESTATE
4. SECTION 106 (Town and Country
Planning Act 1990) PAYMENTS
SUM OF REPORTED PAYMENTS
Name of contact person:
Telephone number
E-mail:
SIGNATURE
DATE
I confirm that the information above reflects an accurate record of the relevant transactions during 2014.
REPORTING TEMPLATE ACCORDING TO THE UK EITI REGULATIONS (TEMPLATE 1)
PAYMENTS/REPAYMENTS IN CALENDAR YEAR 2014

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UK EITI report for 2014
Template 2 - Corporation Tax

Template 3 - Licence & permissions charges

Template 4 - The Crown Estate

Reporting Entity (Name)
UTR
CT Payment (£
thousand)
CT Repayment
(£ thousand)
NET Payment
(£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 2)
CT PAYMENTS/REPAYMENTS IN THE CALENDAR YEAR 2014 PER GPA/INDIVIDUAL COMPANY
Reporting entity (Name)
Licence Number
Licence Fee (£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 3)
PAYMENTS TO THE COAL AUTHORITY IN THE CALENDAR YEAR 2014 PER LICENCE
Reporting Entity (Name)
License Number or other reference
Payment (£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 4)
PAYMENTS TO THE CROWN ESTATE IN THE CALENDAR YEAR 2014

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UK EITI report for 2014
Template 5 - S106 Payments

Reporting Entity (Name)
Local Authority
Unique Reference
Payment (£ thousand)
SUM
APPENDIX TO UK EITI REPORTING TEMPLATE (TEMPLATE 5)
S106 PAYMENTS TO LOCAL AUTHORITIES IN THE CALENDAR YEAR 2014 PER SITE

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UK EITI report for 2014
Beneficial ownership declaration form
Company identification
Full legal name of the company
[Company name]
(including legal form)

Unique identification number (e.g. company
registration number)
[Unique identification number]

Is the company a publicly listed company, or a wholly owned
subsidiary of a publicly listed company?
□ Yes – there is no need to complete the remainder of the form
□ No – please go to the following question

Is the company reporting payments to the UK Government
under the UK EITI?
□ Yes – please complete the remainder of the form
□ No – there is no need to complete the remainder of the form
Contact address

(registered office for companies)
Declaration form prepared by
Name
Position

E Mail Address
Signature
Beneficial ownership definition
In accordance with the EITI Standard, Requirement 3.11.d.i, a beneficial owner in respect of a company means
the natural person(s) who directly or indirectly ultimately owns or controls the corporate entity. Further to
Requirement 3.11.d and in accordance with the decision of the UK EITI MSG, for the purposes of the UK EITI
and for non-PEP beneficial owners (as defined below), beneficial ownership declarations are only required in
respect of beneficial owners who directly or indirectly ultimately own or control more than twenty-five per cent
(25%) of a company that (a) is reporting payments to the UK Government under the UK EITI and (b) is not a
publicly listed company, or a wholly owned subsidiary of a publicly listed company. In connection with (a) above,
companies will be asked to prepare a report under UK EITI if any reportable payment exceeds the agreed
materiality threshold of £86,000. This threshold will be applied at the group level to each separate payment type.

The >25% threshold is calculated by reference to the nominal value of the shares in the company in the case of a
company with share capital. If the company does not have a share capital, this condition is met by an individual
holding a right to share in more than 25% of the entity’s capital or profits.

Control shall be defined consistently with the interpretative provisions applying to the new public register of
persons with significant control of UK companies introduced in the Small Business, Enterprise and Employment
Act 2015 (the “PSC Register”).

A person with significant control over a company is defined as an individual that (either alone or as one of a
number of joint holders of the share or right in question) meets one of the following conditions:

1. The individual holds, directly or indirectly, more than 25% of the shares in the company. The 25% threshold is
calculated with reference to the nominal value of the shares in the case of a company with share capital. If the
company does not have a share capital, the condition is met by an individual holding a right to share in more than
25% of the entity’s capital or profits
2. The individual holds, directly or indirectly, more than 25% of the voting rights in the company. Voting rights
held by the company itself are disregarded for this purpose.
3. The individual holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of
the company
4. The individual has the right to exercise, or actually exercises, significant influence or control over the company.
(The Secretary of State for Business Innovation and Skills is required to issue guidance on the meaning of
‘significant influence or control’ and regard must be had to that guidance in interpreting this condition).
5. The trustees of a trust or the members of a firm that is not a legal person meet one or more of the other
specified conditions in their capacity as such or would do if they were individuals, and the individual has the right
to exercise, or actually exercises, significant control or influence over the activities of that trust or firm

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UK EITI report for 2014

Beneficial ownership disclosure

Identity of beneficial owner

Full name as it appears on national identity
card

Month and year of birth

Nationality

Country of residence

Date when beneficial interest was acquired

Service address

Method of Control

Select from:
1. The individual holds, directly or indirectly, more than 25% of
the shares in the company. The 25% threshold is calculated
with reference to the nominal value of the shares in the case of
a company with share capital. If the company does not have a
share capital, the condition is met by an individual holding a
right to share in more than 25% of the entity’s capital or profits

2. The individual holds, directly or indirectly, more than 25% of
the voting rights in the company. Voting rights held by the
company itself are disregarded for this purpose.

3. The individual holds the right, directly or indirectly, to appoint
or remove a majority of the board of directors of the company

4. The individual has the right to exercise, or actually exercises,
significant influence or control over the company. (The
Secretary of State for Business Innovation and Skills is required
to issue guidance on the meaning of ‘significant influence or
control’ and regard must be had to that guidance in interpreting
this condition).

5. The trustees of a trust or the members of a firm that is not a
legal person meet one or more of the other specified conditions
in their capacity as such or would do if they were individuals,
and the individual has the right to exercise, or actually
exercises, significant control or influence over the activities of
that trust or firm
Politically exposed person (PEP) definition

In accordance with the decision of the UK EITI MSG, for the purposes of the UK EITI, declarations are required in
respect of PEPs who directly or indirectly ultimately own or control more than five per cent (5%) of a company
that (a) is reporting material payments to the UK Government under the UK EITI and (b) is not a publicly listed
company, or a wholly owned subsidiary of a publicly listed company.

UK EITI has adopted the EU's definition of politically exposed person as described in the new EU Fourth Money
Laundering Directive. The term ‘politically exposed person’ means a natural person who is or who has been
entrusted with prominent public functions and includes the following:

(a) heads of State, heads of government, ministers and deputy or assistant ministers;
(b) members of parliament or of similar legislative bodies;
(c) members of the governing bodies of political parties;
(d) members of supreme courts, of constitutional courts or of other high-level judicial bodies, the decisions of
which are not subject to further appeal, except in exceptional circumstances;
(e) members of courts of auditors or of the boards of central banks;
(f) ambassadors, chargés d’affaires and high-ranking officers in the armed forces;
(g) members of the administrative, management or supervisory bodies of State-owned enterprises;
(h) directors, deputy directors and members of the board or equivalent function of an international organisation.

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UK EITI report for 2014
No public function referred to in points (a) to (h) shall be understood as covering middle-ranking or more junior
officials

“Family members” includes the following:

(i) the spouse;
(ii) any person considered as equivalent to the spouse;
(iii) the children and their spouses or persons considered as equivalent to the spouse;
(iv) the parents.

Persons known to be “close associates” means:

(i) any natural person who is known to have joint beneficial ownership of legal entities or legal arrangements, or
any other close business relations, with a person referred to in points (i) to (vii);
(ii) any natural person who has sole beneficial ownership of a legal entity or legal arrangement which is known to
have been set up for the benefit de facto of the person referred to in points (i) to (vii).

The [>5%] threshold is calculated by reference to the nominal value of the shares in the company in the case of a
company with share capital. If the company does not have a share capital, this condition is met by an individual
holding a right to share in [more than 5%] of the entity’s capital or profits.

Disclosures in relation to PEP beneficial owners reflect the actual knowledge of the company based on the
information available to the company in the ordinary course of business, i.e. with no requirement for incremental
due diligence.
PEP disclosure
Identity of PEP:
Full name as it appears on national identity
card

Month and year of birth

Nationality

Country of residence

Date when beneficial interest was acquired

Service address

Political Connection
Name of public office holder

Public office position and role

Date when office was assumed

Date when office was left, if applicable

If the PEP beneficial owner is not the public
office holder, PEP beneficial owner’s
connection with the public office holder

Attestation
Select one of the following:
1. Full Attestation

“I, undersigned, for and on behalf of [company], confirm that all information provided in the above beneficial
ownership declaration is, to the best of my knowledge, accurate and reliable.”

Attestation prepared by:
[Name, Position, Signature]
2. Qualified Attestation

“I, undersigned, for and on behalf of [company], confirm that all information provided in the above beneficial
ownership declaration is, to the best of my knowledge, accurate and reliable, subject to the following
qualifications:
□ Information was not received from one or more beneficial owners; and/or
□ One of more beneficial owners did not give satisfactory consent for the disclosure of information; and/or
□ Other – please specify.”
Attestation prepared by:
[Name, Position, Signature]

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UK EITI report for 2014
Annex 7: Persons contacted or involved in the 2014 UK EITI reconciliation
Independent Administrator | Moore Stephens LLP
Tim Woodward
Partner
Ben Toorabally
Mission Director
Radhouane Bouzaiane
Team Leader
Hedi Zaghouani
Supervisor
Dora Chambers
Supervisor

UK EITI Secretariat | Department for Business, Innovation & Skills
Margaret Sutherland
UK EITI Secretariat
Vina Krishnarajah
UK EITI Secretariat
Joseph Turtle
UK EITI Secretariat
Taras Fedirko
UK EITI Secretariat ( formerly)

HMRC

Alan Tume
Large Business Deputy Director
Paul Sozi
Tax Professional Manager
Carolinn Booth
Oil & Gas Policy
Andrew Nicholls
CT Specialist
Femi Ojo
CT Specialist
Craig Murray
PRT Specialist

Coal Authority

Simon Cooke
Principal Manager Licensing

Crown Estate

Anne Thomas
Group Financial Controller
Rosie Carolan
Rental Accounts Assistant

Oil and Gas Authority

Mike Earp
Senior Fiscal Analyst
Darrell Sime
Finance Officer (Licence Rentals and Fees)

Multi Stakeholder Group (MSG)
Baroness Neville-Rolfe DBE, CMG
Parliamentary Under-Secretary of State for the Department for
Business, Innovation and Skills and Minister for Intellectual Property /
EITI Champion
Marie-Anne Mackenzie (Chair to
November 2015)
Department for Business Innovation & Skills
Maureen Beresford (Chair from
November 2015)
Department for Business Innovation & Skills
Dr Patrick Foster
Mining Association of the UK / Camborne School of Mines-University
of Exeter
John Bowater
Aggregate Industries
Stephen Blythe
Independent Consultant
Andrew Enever
Shell
Danielle Foe
Extractive Industries Civil Society
Eric Joyce
Extractive Industries Civil Society
Miles Litvinoff
Publish What You Pay UK
Brendan O’Donnell
Global Witness
Mike Earp
Oil & Gas Authority (OGA)
Alan Tume
HMRC
Stephen Martin
Scottish Government
Victoria Molho
Department for Business Innovation & Skills

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UK EITI report for 2014
Multi Stakeholder Group (MSG) Alternates
Jon Atkinson
Department for International Development (DfID)
Natalie Reeder
HM Treasury (HMT)
Claire Ralph
Oil and Gas UK
Roger Salomone
ExxonMobil UK
Jerry McLaughlin
Mineral Products Association
Joseph Williams
Natural Resource Governance Institute
Colin Tinto
Independent consultant
Martin Brown
Extractive Industries Civil Society
Eddie Holmes
Extractive Industries Civil Society

Multi Stakeholder Group (MSG) Previous members
Michael Barron
BG Group
Rachel Davies
Transparency International
Yannick Vuylsteke
Transparency International
Gavin Hayman
Global Witness

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