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National Power's principal business is the generatton of electricity in the UK and overseas. As such, the Company has very limited involvement in fossil fuel development, and currently has no oil or gas field developments in the Atlantic Frontier. Whilst we are a member of a consortium which was awarded offshore exploration acreage in the recent 17th Oil and Gas Licensing Round, the consortium has no near term plans to drill for oil or gas. Any future activities would, of course, be subject to strict environmental conditions laid down by government and the Joint Nature Conservation Committee. With regard to the wider issues you raise concerning climate protection and fossil fuel use, our environmental policies and performance are set out in the enclosed report for 1996. This independently verified report shows our continuing significant improvements in environmental performance; and, we believe, demonstrates that we take our environmental responsibilities very seriously. National Power has always operated well within its statutory emission limits, and wlll continue to ensure it meets ever tightening controls. I will ensure that you receive a copy of our 1997 Environmental Performance Review, which is to be published shortly. Yours sincerely
Andrew Swanson
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