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Statoil has been operating in Norway and elsewhere for 25 years and has an environmental record which supports our commitment to protect the environment. In particular there are active ongoing energy conservation programmes all of which lead to increased efficiency in the use of energy and also reduced emissions. We would of course welcome the opportunity of sharing our achievements, policies, environmental report and views with you and if you would like to contact me I will arrange such a meeting. As a Company we shall continue to operate on the UK Continental Shelf in accordance with the terms of licences issued by the UK Government. We recognise the environmental sensitivities of both the development and use of fossil fuel reserves, and as a Company will continue to operate in an environmentally responsible manner and fully in accordance with all national and international regulatory requirements. In the UK exploration and development of oil and gas reserves on the Continental Shelf, of which the "Atlantic Frontier" is an integral part has been carried out for 30 years. ' Licences were first granted in the West Shetland area in the 4th Licensing Round in 1972 and major oil discoveries have been made in the area since 1977. These discoveries and future discoveries will make a major contribution to the UK's natural resources. Development of these indigenous natural resources, from coal in the nineteenth century to oil and gas today has brought real economic and social benefits to the United Kingdom and its citizens. The goal of sustainable development as set out by the Brundtland commission points to the continuing need for economic growth that is socially and environmentally sustainable. Fossil fuels will continue to be needed for some time to maintain the economic and social dimensions of development, and the oil and gas industry is committed to their production in as an environmentally sustainable manner as is practicable. Environmental pollution in all its forms poses challenges for us all as individual citizens, businesses or governments, and the threat of global climate change, despite the continuing scientific uncertainties, is one that the oil and gas industry takes seriously. However, it presents a complex of issues that cannot be resolved either in correspondence or by slogans and headlines; genuine broadly based dialogue is needed, and my Company and the oil and gas industry in general will participate constructively in this evolving debate. Statoil will not be taking "steps to pressure Governments" either for or against policies that may be adopted in the future. However 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. Thank you once again for your letter. I hope that I have been able to set out our position clearly for you and I also attach a copy of our 1996 Annual Report on Health, the Environment And Safety. Yours sincerely
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