Industry activities in the Atlantic Frontier area are not new and have been under way for 25 years as an integral part of UK Continental Shelf exploration and development. Indeed, licences were first granted for West of Shetland acreage in 1972, while the Clair field discovery of 1977 was the first maior find in the area.

The significance of real economic and social benefits that oil and gas has brought to the United Kingdom and its citizens over the last 30 years must not be overlooked. The industry also has an important contribution to make in the area of sustainable development. As noted in the 1987 Bruntland Commission report, the goal of sustainable development points to the continuing need for economic growth that is socially and environmentally sustainable. The need for fossil fuels will continue for some time in meeting the economic and social aspirations of development and the oil and gas industry is committed to their production in the most environmentally sustainable manner practicable.

There is no doubt that environmental pollution poses challenges and responsibilities for businesses, governments and citizens alike. The threat of global climate change, despite the continuing scientific uncertainties is one that the oil and gas industry takes seriously. Marathon will maintain its close interest in this matter. However, the issues are complex and we believe that a genuine broad based discussion is needed rather than an approach based on single issue campaigns. The oil and gas industrv intends to participate constructively in this debate as it develops.

Marathon was pleased to participate in an environmental conference and exhibition held last month in Aberdeen. We were able to explain our environmental policy and good performance, for example, our initiative to reduce carbon dioxide emissions through the Brae Power Management System. Local members of your organisation attended and had the opportunity to discuss range of issues with exhibiting companies, including planned activities in the Atlantic Margin.

In regard to the three questions you pose at the end of your letter Marathon's position is as follows.

1) We shall continue to operate on the UKCS an accordance with the licences issued by the UK Government.

2) In recognising the environmental sensitivities of the continued development and use of fossil fuels, we will continue to operate in an environmentally responsible manner in full accordance with all national and international regulatory requirements.

3) As the debate on important environmental issues continues, we intend to contribute constructively, both as a company and as part of the oil and gas industry.

Sincerely yours

D.E.Smith