Ms Sarah.J.Burton Director, Campaign for Sane Energy, Greenpeace UK Canonbury Villas London, N1 2PN
	Shell-Mex House Strand London 11th June 1997

Dear Ms. Burton

Thank you for your letter to Chris Fay dated 9th May. I am replying as the Managing Director responsible for Shell U.K. Limited's operations in the Atlantic Margin region.

Rather than answer your questions specifically, I have endeavoured to emphasise our thinking and ongoing actions. Let me start by confirming that we share society's concern about potential global climate change, irrespective of the continuing scientific debate.

The Royal Dutch/Shell Group of Companies is committed to contributing to sustainable development - a journey which all parts of society must find and follow. Success will require industry, government and public interest groups to work together to find the smoothest societal transition. I would be interested to learn about what you are doing to encourage the lifestyle changes required.

There are no simple answers to the climate change issue. The world's need for more sustainable forms of energy cannot be placed at the doorstep of one company or industry, or achieved overnight. The Royal Dutch/Shell Group of Companies already supports the development of alternative, renewable energy supplies. We do not doubt the role that renewable energy will play in the future, but recognise that fossil fuels are needed today and for quite some time to come - to maintain energy security, sustain quality of life and enable a smooth transition to a more sustainable energy future.

As a commercial organisation, we strive to recover fossil fuels as efficiently as possible, taking into account our commitment to protecting the environment, by continuously reducing the impact of our operations. We also try to ensure that customers know how to use our products efficiently. We will continue to work co-operatively within any future policy framework that is agreed by the UK Government. We shall, both as a company and as part of the oil and gas industry, seek to contribute constructively to the continuing debate on these important issues.

Within Shell U.K. Exploration and Production, we implement a range of actions and initiatives aimed at reducing greenhouse gas emissions associated with our own day-to-day activities. For example, challenging performance targets to reduce the quantities of gas that we flare and vent, and improve the energy efficiency of our operations. These are programmes that remain high on our agenda for action.

In our business development programmes we continue to seek sound investment and development opportunities that will further enhance the diversification of our energy supply and services portfolio.

By calling for a withdrawal from the Atlantic Margin, you appear unconcerned about the potential damage you are trying to inflict on a British industrial sector. You overlook the employment, skill building opportunities and the regional development. You do not seem to have thought through the domestic disruptions that could occur if the UK did not maintain security of energy supply. These widespread benefits and essential services would be forgone or diminished without the Atlantic Margin developments. If we stop drilling for oil and gas in UK waters in the Atlantic Margin region, we would not fundamentally impact on world carbon dioxide emissions. Indeed global environmental impacts could increase if the UK became heavily dependent on energy imports from other world regions, not to mention the loss of transferable skills and technology to other parts of the world.

To date the companies operating in the Atlantic Margin region have invested some £1.5 billion pounds. There have been two commercial finds; Foinaven and Schiehallion, which together contain a fraction of one percent of global oil reserves. In addition to contributing to replacing the dwindling UK reserves of oil and gas, these two projects have generated over £500 million to the national economy and create 6500 jobs during the construction phase and over 1500 full-time jobs when operational. The economic revenue and technical skill-base generated for the UK from these developments provides the nation with an opportunity to continue to construct a more sustainable energy future.

In exploring for, and finding, these reserves there has been an unprecedented level of environmental assessments and industry co-operation in developing a careful environmental management programme. We fully recognise the environmental sensitivities of both the development and use of fossil fuel and we will continue to operate in an environmentally sensitive manner and fully in accordance with all national and international regulatory requirements.

The industry has helped to establish the Atlantic Frontier Environmental Network (AFEN) and the Atlantic Frontier Environmental Forum (AFEF). Both are aimed at establishing more open, constructive and co-operative working relationships between relevant regulatory authorities, public interest group and companies.

The AFEN focuses on developing and implementing a range of environmental research projects. Within AFEN, industry operators are working with a variety of interest groups such as the Joint Nature Conservancy Council and the Royal Society for the Protection of Birds - on a variety of nature-related projects. These projects aim at ensuring there is sufficient information and data to minimise any disturbance from the operations: initiatives include whale, dolphin and sea bird monitoring. There is also a project that aims to independently 'police and fingerprint' any tar balls found on local beaches, in order to ensure that the correct point of origin can be identified.

The AFEF provides a second regular interface for a wide variety of interest groups (including fishermen and other environmentalists) to meet and discuss issues and raise any concerns with the oil companies. It is independently chaired to ensure that all sides of the debate are considered.

Finally, I must disagree with your claim that the UK Government has failed to properly implement the Environmental Impact Assessment ("EIA") Directive offshore. Our activities in the Atlantic Margin region are entirely lawful. The licences awarded in the 17th Offshore Licensing Round require us to review the need for additional environmental assessments before further development can take place. We will submit our required work package to the DTI before any drilling commences, and comments from external interest groups will be invited on our proposed work schedule. We look forward to this input.

In the discussions that have already been held between Greenpeace International and The Royal Dutch/Shell Group of Companies we have listened to your views and explained our position. I firmly believe that it will only be through genuine, broadly based dialogue-involving the wide range of relevant and interested parties- that we will find the path to more sustainable societal development and resolve complex issues such as global climate change. Such objectives will not be achieved either in correspondence or by simplistic slogans and headlines. We remain, as ever, open to genuine and constructive dialogue.

As part of our ongoing direct interfaces with a selection of non-governmental organisations, I would be happy to meet with respresentatives of Greenpeace UK to exchange information on our differing approaches to assisting society to finding the path lowards sustainable development. In response to your letter of 27th May, I have asked my secretary to contact you about possible dates for later in the summer.

Yours sincerely
for: Shell U.K. Exploration and Production,