Recent events in the Orkney islands provide an interesting case study of some of the problems of processing energy developments within the framework of the planning system. The development in question was a proposal by the South of Scotland Electricity Board (SSEB) in December 1976 to carry out exploratory drilling in three areas to the north of Stromness to establish the extent of uranium deposits. Planning permission for the development was refused by the Orkney Islands Council (OIC) in March 1977. The decision was based on a policy formulated by the OIC (following receipt of the planning application) which prohibits the exploitation of uranium in the Orkney Islands. The policy was included in the Council's Structure Plan which was subsequently submitted to the Secretary of State for Scotland for confirmation and was one of three issues selected by him for examination in public in March 1979. Three matters have been selected for particular study:-(1) the manner in which the planning application was dealt with by the OIC; (2) the formulation of the policy statement prohibiting the exploitation of uranium; and (3) the procedure for the examination in public.