asked the Secretary of State for Energy whether he intends to continue to take royalties in oil rather than in cash from North Sea licensees.

I have reviewed the practice of taking royalty in kind and the contribution it makes to the security of the United Kingdom's oil supplies. I have decided to continue to take royalty in kind on broadly the present scale, but to discontinue taking it from some of the smaller fields. The licensees of four of the smaller fields have accordingly been notified that, with effect from 1 January 1983, they will no longer be required to deliver royalty in kind. My decision will apply similarly to fields which have recently come on stream.