Given that Scotland is not a sovereign state, it has no effective maritime boundaries; and any claims Scotland may assert are subsumed as part of claims made by the United Kingdom. However, due to the existence of two separate legal systems in Great Britain — that of Scots law pertaining to Scotland and English law pertaining to England and Wales — constitutional law in the United Kingdom has provided for the division of the UK sector of the North Sea into specific Scottish and English components.[6] The Continental Shelf Act 1964 and the Continental Shelf (Jurisdiction) Order 1968 defined the UK North Sea maritime area to the north of latitude 55 degrees north as being under the jurisdiction of Scots law[7] meaning that 90% of the UK's oil resources was considered under Scottish jurisdiction.[8][9] In addition, section 126 of the Scotland Act 1998 defined Scottish waters as the internal waters and territorial sea of the United Kingdom as are adjacent to Scotland.[10] This was subsequently amended by the Scottish Adjacent Waters Boundary Order 1999 which redefined the extent of Scottish waters and Scottish fishery limits.[11][12]
Nevertheless, a Scottish share of North Sea oil is never formally alluded to as part of Scotland's net fiscal position and is treated by HM Treasury as extra-regio resources.[14] The BBC economist Evan Davis however reported prior to the 2007 Scottish Parliament election that the Barnett formula already allows Scotland to sustain higher levels of per capita public spending relative to the rest of the UK, which is approximately equivalent to its disproportionately high annual contribution of tax revenues to the central UK Treasury [b]from Oil production[/b].[15] However Scotland's per capita spending growth, relative to the rest of the UK, has in recent years, been nominally reduced by the operation of the Barnett formula, in order to bring public spending levels into line with the UK average, in a phenomenon that had been dubbed the "Barnett Squeeze".
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