Petroleum and Submarine Pipe-lines Act 1975 (repealed 15/02/1999)

• (1) Except where the context otherwise requires, in this Part of this Act " pipe-line " means a pipe or system of pipes (excluding a drain or sewer) for the conveyance of any thing, together with any apparatus and works associated with such a pipe or system ; and for the purposes of this Part of this Act the following apparatus and works and no other shall be treated as associated with such a pipe or system, namely—

• (a) any apparatus for inducing or facilitating the flow of any thing through, or through a part of, the pipe or system ;

• (b) valves, valve chambers and similar works which are annexed to, or incorporated in the course of, the pipe or system;

• (c) apparatus for supplying energy for the operation of any such apparatus or works as are mentioned in the preceding paragraphs;

• (d) apparatus for the transmission of information for the operation of the pipe or system ;

• (e) apparatus for the cathodic protection of the pipe or system; and

• (f) a structure used or to be used solely for the support of a part of the pipe or system.

• (2) The Secretary of State may by order provide that a part of a pipe-line specified in the order shall be treated for the purposes of this Part of this Act, except this subsection, as a pipe-line.

• (3) For the purposes of this Part of this Act " owner " in relation to a pipe-line, and " proposed owner " in relation to a proposed pipe-line, mean the person for the time being designated as the owner of the pipe-line, or as the case may be as the proposed owner of the proposed pipe-line, by an order made by the Secretary of State, and an order designating a person as the proposed owner of a proposed pipe-line may also contain provision for him to be designated as the owner of the pipe-line in question at a time determined by or under the order; but it shall be the duty of the Secretary of State—

• (a) before designating a person in pursuance of this subsection, to give him an opportunity of being heard with respect to the matter; and

• (b) if a person for the time being designated in pursuance of this subsection requests the Secretary of State in writing to cancel the designation, to consider the request and, if the Secretary of State considers it appropriate to do so, to give that person an opportunity of being heard in connection with the request.

• (4) The Secretary of State may by order revoke any order made in pursuance of subsection (2) or (3) of this section.

• (5) Except where the context otherwise requires, in this Part of this Act the following expressions have the following meanings—

• " authorisation " means an authorisation required by section 20 of this Act;

• " construction " in relation to a pipe-line, includes placing, and cognate expressions shall be construed accordingly;

• " heard " means heard on behalf of the Secretary of State by a person appointed by him for the purpose;

• " holder ", in relation to an authorisation, means the person to whom the authorisation was issued;

• " pipe-line ", in relation to an application for a works authorisation, means the proposed pipe-line in respect of which the application is made ; and

• " works authorisation " means an authorisation for works for the construction of a pipe-line or for such works and for the use of the pipe-line.

• (6) For the purposes of this Part of this Act, works at any place in, under or over controlled waters for the purpose of determining whether the place is suitable as part of the site of a proposed pipe-line and the carrying out of surveying operations for the purpose of settling the route of a proposed pipe-line are not works for the construction of a pipe-line.

• (7) Any reference in this Part of this Act to a contravention of a provision of that Part or of regulations made or directions given by virtue of that Part includes a reference to a failure to comply with that provision.

• (8) Any reference in this Part of this Act, except this subsection, to that Part includes a reference to Schedule 4 to this Act.

• (9) This Part of this Act, so far as it applies to individuals or bodies corporate, applies to them notwithstanding that they are not British subjects or, as the case may be, are not incorporated under the law of any part of the United Kingdom.

PART IV — Refineries

Control of construction and extension of refineries

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• (1) No person shall execute any works for the construction of a controlled refinery or a controlled extension of a refinery or for converting plant into a controlled refinery, unless—

• (a) he is authorised in writing by the Secretary of State to do so and the works are in accordance with the terms of the authorisation ; or

• (b) the works are executed in accordance with planning permission in force in pursuance of the Town and Country Planning Act 1971 and granted (otherwise than by a development order within the meaning of that Act) either before the passing of this Act or in consequence of an application for such permission which was made before 7th December 1974.

• (2) In this Part of this Act—

• " refinery " means crude petroleum distillation plant which is designed for the treatment of crude liquid petroleum ;

• " controlled refinery " means a refinery designed to be capable of treating more than one million tons a year of the kind of crude liquid petroleum which it is designed to treat;

• " controlled extension ", in relation to a refinery, means works designed to extend, adapt or be used in conjunction with the refinery, or to extend or adapt works so used, and to increase by more than half a million tons a year the quantity of crude liquid petroleum which the refinery apart from the works is capable of treating; and

• " authorisation " means an authorisation required by the preceding subsection;

and for the purposes of this Part of this Act the quantity of crude liquid petroleum which any plant is or will be capable of treating shall be determined on the assumption that throughout every day the plant is or will be capable of being used to its maximum capacity and is or will be so used.

• (3) The Secretary of State may by order provide that for any number of tons for the time being specified in the preceding subsection there shall be substituted another number specified in the order; arid the order may—

• (a) without prejudice to the generality of section 46(1)(d) of this Act, contain such transitional provisions as the Secretary of State considers appropriate in consequence of any amendment of that subsection made by the order (including provision dispensing with authorisations in cases for which they would not be required apart from the order); and

• (b) vary or revoke any previous order made in pursuance of this subsection.

Authorisations to construct or extend refineries

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• (1) It shall be the duty of the Secretary of State—

• (a) to satisfy himself before he issues an authorisation that it is consistent with the national policy relating to petroleum to authorise the execution of the works in question;

• (b) not to issue an authorisation to a person other than a body corporate.

• (2) An authorisation may contain such terms as the Secretary of State thinks appropriate including in particular, without prejudice to the generality of the preceding provisions of this subsection, terms as to—

• (a) the duration of the authorisation, including the method of ascertaining its duration;

• (b) the persons or kinds of persons who are authorised to execute the works in question or are so authorised if the Secretary of State consents to the execution of the works by them ;

• (c) the area in which the works may be executed ;

• (d) the conditions (which may include conditions requiring the execution of further works) which are to be satisfied before any works authorised by the authorisation are used;

and the Secretary of State may, with the consent of the body to which an authorisation was issued, alter any of its terms at any time.

• (3) Where an authorisation contains such conditions as are mentioned in paragraph (d) of the preceding subsection, no person shall, before the conditions are satisfied, use any works of which the execution was authorised by the authorisation except to the extent specified, in a notice given by the Secretary of State to the body to which the authorisation was issued, as the extent to which the works may be used notwithstanding that any of the conditions is not satisfied; and the Secretary of State may at any time revoke such a notice by a further notice so given.

• (4) Where an authorisation contains such conditions as are mentioned in the said paragraph (d), a notice given as aforesaid which states that such of them as are specified in the notice are satisfied shall be conclusive evidence for the purposes of this Part of this Act that, on and after the date on which the notice is given, the conditions so specified are satisfied.

• (5) If it appears to the Secretary of State that since the issue of an authorisation there has been a change in the control of the body to which it was issued, it shall be his duty to give to that body a notice—

• (a) cancelling the authorisation at a time specified in the notice; or

• (b) identifying the change and stating that he has decided not to cancel the authorisation in consequence of it; or

• (c) stating that he proposes to cancel the authorisation unless, before a time specified in the notice, such requirements as are so specified with respect to the control of that body are satisfied;

and where it appears to the Secretary of State that any requirement specified in a notice served by virtue of paragraph (c) of this subsection is not satisfied at the time specified in the notice he may give to that body a further notice cancelling the authorisation at a time specified in the further notice.

• (6) There is a change in the control of a body to which an authorisation was issued whenever a person has control of that body who did not have control of it when the authorisation was issued; and subsections (2) and (4) to (6) of section 302 of the Income and Corporation Taxes Act 1970 shall apply, for the purpose of determining whether for the purposes of this subsection a person has or had control of such a body, with the following modifications—

• (a) for the words " the greater part" wherever they occur in the said subsection (2) there shall be substituted the words " one-third or more "; and

• (b) in the said subsection (6), for the word " may" there shall be substituted the word " shall " , the words from " and such attributions " onwards shall be omitted and in the other provisions of that subsection any reference to an associate of a person shall be construed as including only a relative of his (as defined by section 303(4) of that Act), a partner of his and a trustee of a settlement (as defined by section 454(3) of that Act) of which he is a beneficiary.

• (7) If an authorisation contains such conditions as are mentioned in subsection (1)(d) of this section and, at the time when apart from this subsection the authorisation is cancelled or otherwise ceases to be in force, any works authorised by the authorisation have been executed and any of those conditions is not satisfied, the authorisation shall, so far only as it contains the unsatisfied conditions, continue in force until those conditions are satisfied.

Planning permission for works requiring authorisations

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• (1) An application made after the coming into force of this section for planning permission for works for the construction or extension of any refinery or for converting plant into a refinery shall be of no effect unless it is accompanied by—

• (a) a copy of an authorisation in force for all of those works in the area of the local planning authority for which an authorisation is required; or

• (b) a certificate signed by or on behalf of the applicant and stating that no authorisation is required for any of those works in that area.

• (2) Where at the time when this section comes into force—

• (a) an application for planning permission made after 6th December 1974 is pending or any appeal to the Secretary of State connected with such an application is pending or the time within which such an appeal may be begun has not expired ; and

• (b) if the application had been made after the coming into force of this section it would have been of no effect by virtue of the preceding subsection,

the application shall be of no effect, or as the case may be the appeal shall be stayed or not begun, until the authority to which the application was made is furnished with such a copy or certificate as is mentioned in that subsection in respect of the works to which the application relates.

• (3) Where by virtue of the preceding subsection a prohibition imposed by that subsection on the beginning of an appeal ceases to be so imposed, the appeal may be begun during a period which begins with the cesser and is equal to so much of the time within which the appeal could have been begun apart from the prohibition as was unexpired when the prohibition was so imposed.

• (4) In the preceding provisions of this section " local planning authority " and " planning permission " have the same meanings as in the Town and Country Planning Act 1971.

Inspectors

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• (1) The Secretary of State may appoint, as inspectors to assist him in the execution of this Part of this Act, such number of persons appearing to him to be qualified for the purpose as he considers appropriate from time to time; and the Secretary of State may make, to or in respect of any person appointed in pursuance of this subsection, such payments by way of remuneration or otherwise as the Secretary of State determines with the approval of the Minister for the Civil Service.

• (2) An inspector appointed in pursuance of the preceding subsection may, at all reasonable times and on producing written evidence of his authority if required to do so,—

• (a) inspect any refinery and for that purpose enter on any land on or near which any part of the refinery is situated;

• (b) without prejudice to the preceding paragraph, inspect any land on which a refinery is being provided and for that purpose enter on the land and any land near it;

• (c) require any person having control of any refinery or land which the inspector is authorised to inspect or enter by virtue of either of the preceding paragraphs to give the inspector such assistance and afford him such facilities as the inspector may reasonably ask for in connection with the powers conferred on him in relation to the refinery or land by either of those paragraphs;

• (d) require any body to which an authorisation for the time being in force has been issued to produce and permit the inspector to inspect any documents in that body's possession or control which relate to the issued share capital of that body;

• (e) require any person to produce and permit the inspector to inspect any documents in that person's possession or control which relate to—

• (i) any works for the provision or extension of a refinery, or

• (ii) the use of any works at a time when a notice in pursuance of section 35(3) of this Act was in force in respect of them.

Offences

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• (1) Any person who—

• (a) contravenes any provision of section 34(1) or 35(3) of this Act; or

• (b) makes a statement which he knows is false in a material particular or recklessly makes a statement which is false in a material particular—

• (i) for the purpose of inducing the Secretary of State to issue or to alter or not to cancel an authorisation or to give a notice in pursuance of section 35(3) or (4) of this Act, or

• (ii) in any document purporting to be such a certificate as is mentioned in section 36(1)(b) of this Act,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding £400 or on conviction on indictment to a fine.

• (2) Any person who—

• (a) wilfully obstructs an inspector appointed in pursuance of the preceding section in the exercise of the powers conferred on him by paragraph (a) or (b) of subsection (2) of that section; or

• (b) without reasonable excuse fails to provide facilities or assistance or to produce or permit the inspection of any document which he is required to provide or produce in pursuance of any other paragraph of that subsection,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding £400.

• (3) Where an offence under any of the preceding provisions of this section has been committed by a body corporate and is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

In this subsection " director ", in relation to a body corporate which—

• (a) is established by or under any enactment for the purpose of carrying on under public ownership any industry or part of an industry or undertaking; and

• (b) is a body whose affairs are managed by its members,

means a member of the body corporate.

• (4) No proceedings shall be instituted in England and Wales for an offence under any of the preceding provisions of this section except by or with the consent of the Director of Public Prosecutions or by the Secretary of State or a person authorised by him in that behalf.

Modifications of Part IV for Scotland and Northern Ireland

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• (1) This Part of this Act shall have effect in its application to Scotland with the following modifications, namely—

• (a) in section 34(1)(b) for the words "Town and Country Planning Act 1971" there shall be substituted the words " Town and Country Planning (Scotland) Act 1972 ";

• (b) in section 36(1)(a) for the words "area of the local" there shall be substituted the words " district of the ";

• (c) in section 36(2) for the word " stayed " there shall be substituted the word " sisted "; and

• (d) for subsection (4) of section 36 there shall be substituted

(4) In the preceding provisions of this section (4) In the preceding provisions of this section " planning authority" and "planning permission" have the same meanings as in the Town and Country Planning (Scotland) Act 1972.

• (2) This Part of this Act shall have effect in its application to Northern Ireland with the following modifications, namely—

• (a) for any reference to the Secretary of State there shall be substituted a reference to the Department of Commerce for Northern Ireland except in section 34(3), 36(2)(a) and 37 and in subsection (4) of section 38 so far as it relates to an offence under subsection (2) of that section and to an offence under subsection (3) of that section committed by reference to an offence under subsection (2);

• (b) in section 34(1)(b) for the words " Town and Country Planning Act 1971 " there shall be substituted the words " Planning (Northern Ireland) Order 1972 " and for the words " that Act" there shall be substituted the words " that Order ";

• (c) in section 36(1) the words " in the area of the local planning authority" in paragraph (a) and the words " in that area " in paragraph (b) shall be omitted ;

• (d) in section 36(2) for the words "Secretary of State" there shall be substituted the words " Planning Appeals Commission " and for the words " authority to which the application was made " there shall be substituted the words " Department of Housing, Local Government and Planning for Northern Ireland ";

• (e) in section 36(4) for the words from "' local planning authority'" onwards there shall be substituted the words " ' planning permission' has the same meaning as in the Planning (Northern Ireland) Order 1972 ";

• (f) in section 37(1) after the words " assist him " there shall be inserted the words " and the Department of Commerce for Northern Ireland ";

• (g) in section 38(4) for the words " England and Wales" there shall be substituted the words " Northern Ireland " and after the word "Prosecutions" there shall be inserted the words " for Northern Ireland ".

PART V — Miscellaneous and General

Miscellaneous

The National Oil Account

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• (1) There shall be an account, to be called the National Oil Account (and hereafter in this section referred to as " the Account"), which subject to the following provisions of this section shall be under the control and management of the Secretary of State.

• (2) There shall be paid into the Account, in addition to any sums required to be paid into it by virtue of any other provision of this Act,—

• (a) all sums received by the Corporation from any source or standing to the credit of the Corporation in any bank account, except such sums as the Secretary of State specifies from time to time for the purposes of this paragraph with the approval of the Treasury;

• (b) all sums which, after the coming into force of this paragraph, are received by the Secretary of State by virtue of the Petroleum (Production) Act 1934 or from the sale of any petroleum delivered to him under the terms of a licence granted in pursuance of that Act;

• (c) all sums which are payable to the Corporation in respect of services performed by the Corporation for a Minister of the Crown or a Northern Ireland department.

• (3) There shall be paid out of the Account, in addition to any sums required to be paid out of it by virtue of any other provision of this Act,—

• (a) such sums as the Secretary of State considers are needed to enable the Corporation and any relevant subsidiary to defray expenditure properly chargeable to revenue or capital account;

• (b) any sums which, after the coming into force of this paragraph, are payable by the Secretary of State by reference to any licence granted in pursuance of the Petroleum (Production) Act 1934 ;

• (c) any sums which the Treasury direct are to be paid out of the Account to a Minister of the Crown or a Northern Ireland department in respect of the revenue accruing to the Minister or department in connection with such services as are mentioned in paragraph (c) of the preceding subsection ;

and when the Secretary of State considers and the Treasury agree that the amount standing to the credit of the Account exceeds the amount required for the purposes of the Account the Secretary of State shall pay the excess into the Consolidated Fund.

• (4) It shall be the duty of the Secretary of State as respects the financial year ending on 31st March 1976 and each subsequent financial year—

• (a) to prepare, in such form as he may determine with the approval of the Treasury, an account of the sums paid into and out of the Account in that year; and

• (b) to send a copy of the account to the Comptroller and Auditor General not later than the end of the month of November next following that year;

and the Comptroller and Auditor General shall examine, certify and report on each account of which a copy is sent to him in pursuance of this subsection and shall lay copies of it and of his report on it before each House of Parliament.

Payments to petroleum licence holders etc from the Account

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• (1) The Secretary of State may by order make provision for the making by the Corporation, or by another person specified in the order, of payments to or in respect of persons who are or have been entitled to the benefit of licences granted in pursuance of the Petroleum (Production) Act 1934 and are parties to such agreements as are mentioned in section 2(1)(e) of this Act or similar participation agreements made with title Corporation or a relevant subsidiary; and, without prejudice to the generality of the power conferred by the preceding provisions of this subsection, such an order may include provision for the making of payments—

• (a) to the Secretary of State in settlement of any sums pay able to him by such persons in pursuance of licences so granted;

• (b) to the Commissioners of Inland Revenue in settlement of any sums payable by such persons by way of petroleum revenue tax, income tax or corporation tax.

• (2) An order in pursuance of this section may be varied or revoked by a subsequent order in pursuance of this section.

• (3) Where any person has paid to the Secretary of State a sum by way of royalty under the terms of a licence granted in pursuance of the Petroleum (Production) Act 1934, the Secretary of State may with the approval of the Treasury repay to him the whole or a part of that sum if the Secretary of State considers it expedient to do so for the purpose of facilitating or maintaining the development of the petroleum resources of the United Kingdom ; and any repayment and right to a repayment in pursuance of this subsection shall be disregarded for the purposes of income tax, corporation tax and petroleum revenue tax.

• (4) Any sums required for making payments in pursuance of the preceding subsection or an order made by virtue of this section shall be paid by the Secretary of State out of the National Oil Account.

Loans etc to promote development of United Kingdom petroleum resources

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• (1) Where it appears to the Secretary of State expedient to do so for the purpose of facilitating or maintaining the development of the petroleum resources of the United Kingdom, he may with the approval of the Treasury—

• (a) make loans to an oil company on terms determined by him; or

• (b) guarantee on such terms the repayment of the principal of and the payment of interest on loans made to an oil company by another person.

• (2) Any sums required by the Secretary of State for the purposes of the preceding subsection shall be defrayed out of money provided by Parliament; but the aggregate amount for the time being outstanding in respect of the principal of loans made in pursuance of that subsection shall not exceed £50 million and the aggregate amount of the principal sums in respect of which guarantees in pursuance of that subsection are for the time being in force and of the payments on account of principal sums which have been made by the Secretary of State under such guarantees and not recovered by him shall not exceed a further £600 million.

• (3) Immediately after a loan is made or a guarantee is given in pursuance of subsection (1) of this section, the Secretary of State shall lay a statement relating to it before each House of Parliament; and where any sum is issued for fulfilling a guarantee so given the Secretary of State shall, as soon as possible after the end of each financial year (beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest thereon is finally discharged), lay before each House of Parliament a statement relating to that sum.

• (4) In subsection (1) of this section " oil company " means a body corporate which, in the opinion of the Secretary of State, has as its principal object—

• (a) the production or refining of petroleum or the production and refining of petroleum ; or

• (b) the supplying of petroleum in a case where any of its other objects is one of those mentioned in the preceding paragraph.

Payments in respect of Burmah Oil Co. Ltd

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The Secretary of State may, out of money provided by Parliament, pay to the Bank of England (hereafter in this section referred to as " the Bank ") such sums, not exceeding in the aggregate £350 million, as may be needed, in pursuance of arrangements made between the Secretary of State and the Bank, for the purpose of making good any losses sustained by the Bank in consequence of guarantees given by the Bank in respect of loans to the Burmah Oil Company Limited or any of that Company's subsidiaries or in consequence of loans made by the Bank to that Company or any of its subsidiaries.

Extension of Mineral Workings (Offshore Installations) Act 1971

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• (1) The Mineral Workings (Offshore Installations) Act 1971, except section 1, shall have effect as if any reference to an offshore installation within the meaning of that Act included a reference to any other installation, whether floating or not, which—

• (a) is maintained or intended to be established, in controlled waters or waters in the United Kingdom, for use in connection with the conveyance of things by means of a pipe constructed in or under the sea ; and

• (b) is, or when established will be, capable of being manned by one or more persons ;

and in relation to any such other installation subsection (4) of section 3 of that Act (which includes the concession owner among the persons having the duty to ensure that regulations under that section relating to an installation are complied with) shall have effect as if references to the concession owner were omitted.

• (2) In relation to any such offshore installation which comprises only apparatus or works which are associated with a pipe or system of pipes for the purposes of Part III of this Act and are capable of being manned by one or more persons, the said subsection (4) shall have effect as if references to the concession owner were omitted except, in a case where the concession owner has the right to exploit the mineral resources in the area in which the installation is situated, in relation to minerals from those resources which are included among the things in connection with the conveyance of which the installation is or was or will be for use.

• (3) At the end of section 12(3) of the said Act of 1971 (which provides that references in that Act to an offshore installation do not include an installation which at the relevant time consists exclusively of a pipe-line) there shall be inserted the words " and do not include any apparatus and works which are treated as associated with a pipe or system of pipes in pursuance of section 33(1) of the Petroleum and Submarine Pipe-lines Act 1975 and are at the relevant time incapable of being manned by one or more persons ".

• (4) Provision may be made by regulations as to what things are, for the purposes of subsection (1) or (2) of this section or any provision of section 12 of the said Act of 1971 as amended by this section, capable or incapable of being manned by one or more persons.

• (5) It is hereby declared that the powers to make regulations conferred by section 6 of the said Act of 1971 include power to make regulations—

• (a) providing for an inspector appointed in pursuance of that section to enter upon any premises or vessel used or intended to be used in connection with an offshore installation within the meaning of that Act and to inspect the premises or vessel and anything on the premises or vessel which is used or intended to be used as aforesaid; and

• (b) requiring the payment of fees in connection with any examination or test required by regulations under that section and of fees for the issue of certificates in pursuance of regulations under that section.

General

Amendments of enactments

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• (1) It is hereby declared that the reference to pipe-lines under the high seas in section 8(1) of the Continental Shelf Act 1964 (which among other things relates to the punishment of persons who damage such pipe-lines) includes pipe-lines under the territorial sea adjacent to the United Kingdom.

• (2) In section 23 of the Prevention of Oil Pollution Act 1971 (which among other things authorises the Secretary of State to exempt vessels from provisions of that Act) the words " any vessels or classes of vessels " shall be omitted and at the end of the section there shall be inserted the words "—

• (a) any vessels or classes of vessels ;

• (b) any discharge of, or of a mixture containing, crude oil produced as a result of operations for the exploration of the sea-bed and subsoil or the exploitation of their natural resources in a case where the discharge occurs in the course of such operations or is from a pipe-line or a place on land."

• (3) Nothing in the Dumping at Sea Act 1974 shall apply to anything done—

• (a) for the purpose of constructing or maintaining a pipeline as respects any part of which an authorisation (within the meaning of Part III of this Act) is in force; or

• (b) for the purpose of establishing or maintaining an offshore installation within the meaning of the Mineral Workings (Offshore Installations) Act 1971 or any such other installation as is mentioned in section 44(1) of this Act.

Orders and regulations

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• (1) Any power conferred by this Act to make an order or regulations—

• (a) includes power to make different provision by the order or regulations for different circumstances and to include in the order or regulations such incidental, supplemental and transitional provisions (including, in the case of regulations, provisions for the payment of fees in respect of consents and certificates required by the regulations) as the Secretary of State considers appropriate in connection with the order or regulations; and

• (b) shall be exercisable by statutory instrument;

and any statutory instrument made by virtue of this subsection, except an instrument containing only an order made by virtue of section 6(3), 33(2), (3) or (4) or 49(2) of this Act, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (2) No order shall be made in pursuance of section 6(3) of this Act unless a draft of the order has been approved by a resolution of the House of Commons.

Expenses

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Any administrative expenses of the Secretary of State or a government department which are attributable to this Act shall be defrayed out of money provided by Parliament.

Interpretation etc-general

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• (1) In this Act—

• " controlled pipe-line " and " controlled waters " have the meanings assigned to them by section 20(2) of this Act;

• " the Corporation " has the meaning assigned to it by section 1(1) of this Act;

• " enactment " includes an enactment of the Parliament of Northern Ireland or of the Northern Ireland Assembly;

• " functions " includes powers and duties;

• " notice " means notice in writing;

• " prescribed " means prescribed by regulations;

• " regulations " means regulations made by the Secretary of State;

• " relevant subsidiary " means a wholly owned subsidiary of the Corporation; and

• " subsidiary " shall be construed in accordance with section 154 of the Companies Act 1948 or section 148 of the Companies Act (Northern Ireland) 1960 and " wholly owned subsidiary" shall be construed in accordance with section 150(4) of the said Act of 1948 or section 144(5) of the said Act of 1960.

• (2) Subsections (1) to (3) of section 49 of the Pipe-lines Act 1962 (which relates to the service of documents in pursuance of that Act) shall have effect as if references to that Act included references to this Act and as if after the words " arrangements agreed " in subsection (3) there were inserted the words " or in accordance with regulations made by virtue of the Petroleum and Submarine Pipe-lines Act 1975 " ; and in the application of this subsection to Northern Ireland the said subsections (1) to (3) shall have effect as if they extended to Northern Ireland.

• (3) Except so far as this Act expressly provides otherwise and subject to the provisions of section 33 of the Interpretation Act 1889 (which relates to offences under two or more laws), nothing in this Act—

• (a) confers a right of action in any civil proceedings (other than proceedings for the recovery of a fine) in respect of any contravention of this Act or an instrument made in pursuance of this Act;

• (b) affects any restriction imposed by or under any other enactment, whether public, local or private; or

• (c) derogates from any right of action or other remedy (whether civil or criminal) in proceedings instituted otherwise than under this Act.

• (4) References in this Act to any enactment are references to it as amended by or under any other enactment.

• (5) Without prejudice to the generality of the preceding subsection, references in this Act to licences granted under the Petroleum (Production) Act 1934 include references to licences granted under section 2 of that Act as applied by section 1(3) of the Continental Shelf Act 1964; but nothing in this Act affects the extent of the said Act of 1934.

Short title, commencement and extent

49

• (1) This Act may be cited as the Petroleum and Submarine Pipe-lines Act 1975.

• (2) This Act shall come into force on such day as the Secretary of State may by order appoint; and, without prejudice to the generality of section 46(1)(a) of this Act, different days may be appointed in pursuance of this subsection for different provisions of this Act and for such different purposes of the same provision as may be specified in the order.

• (3) This Act, except Part II and Schedules 2 and 3, extends to Northern Ireland and the following provisions of this Act extend to controlled waters and places above and below those waters, namely,—

• (a) Parts II and III and Schedules 2 and 3 ;

• (b) sections 44 and 45 ; and

• (c) sections 46 and 48 and this section so far as they relate to any provision mentioned in paragraph (a) or (b) of this subsection.

SCHEDULE 1

Appointment and tenure of members

1

Provision may be made by regulations with respect to the appointment of members and the tenure of office as the chairman, a deputy chairman and a member.

Remuneration etc. of members

2

The Corporation shall—

• (a) pay to each member, except an official member, such remuneration and expenses as the Secretary of State may determine with the consent of the Minister for the Civil Service;

• (b) reimburse to each official member any expenses incurred by him in carrying out his functions as a member.

3

• (1) The Corporation shall make such provision as may be determined by the Secretary of State with the consent of the said Minister for the payment of pensions, allowances or gratuities to or in respect of such members and former members as may be so determined.

• (2) Where a person ceases to be a member otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for that person to receive compensation, the Secretary of State may with the consent of the said Minister direct the Corporation to make to that person a payment of such amount as the Secretary of State may determine with the consent of the said Minister.

• (3) References to a member in the preceding provisions of this paragraph do not include an official member.

Proceedings

4

Provision may be made by regulations with respect to the proceedings of the Corporation including, without prejudice to the generality of the preceding provisions of this paragraph, the meetings and determinations of the Corporation and the quorum of the Corporation.

5

An official member shall not be entitled to a vote on any matter.

6

Subject to any regulations made in pursuance of paragraph 4 of this Schedule and to the preceding paragraph, the Corporation may regulate its own proceedings.

7

The validity of any proceedings of the Corporation shall not be affected by any vacancy among the members or by any defect in the appointment of a member.

Staff

8

• (1) The Corporation shall appoint one member (who may be the chairman or a deputy chairman or another member but must not be an official member) to be the chief executive of the Corporation on such terms as are specified in his instrument of appointment; but a person shall not be appointed in pursuance of this sub-paragraph except with the prior approval of the Secretary of State.

• (2) The functions of the chief executive shall be such as the Secretary of State and the chairman acting jointly may from time to time determine.

9

The Corporation may appoint, on such terms as it thinks fit, such officers and servants of the Corporation as it thinks fit; and references in the following provisions of this Schedule to employees of the Corporation are references to persons appointed in pursuance of this paragraph.

10

• (1) The Corporation may pay such pensions, allowances or gratuities as it thinks fit to or in respect of any of its employees, make such payments as it thinks fit towards the provision of pensions, allowances or gratuities to or in respect of any of its employees or provide and maintain such schemes as it thinks fit (whether contributory or not) for the payment of pensions, allowances or gratuities to or in respect of any of its employees.

• (2) If an employee of the Corporation becomes a member and was by reference to his employment by the Corporation a participant in a pension scheme maintained by the Corporation for the benefit of any of its employees, the Corporation may determine that his service as a member shall be treated for the purposes of the scheme as service as an employee of the Corporation whether or not any benefits are to be payable to or in respect of him by virtue of .paragraph 3(1) of this Schedule.

11

It shall be the duty of the Corporation, except so far as it is satisfied that adequate machinery exists for achieving the purpose of this paragraph, to seek consultation with any organisation appearing to the Corporation to be appropriate with a view to the conclusion between the Corporation and that organisation of such agreements as appear to the parties to be desirable with respect to the establishment and maintenance of machinery for—

• (a) the settlement by negotiation of terms and conditions of employment of employees of the Corporation, with provision for reference to arbitration in default of such a settlement in such cases as may be determined by or under the agreements ; and

• (b) the promotion and encouragement of measures affecting the safety, health and welfare of employees of the Corporation and the discussion of other matters of mutual interest to the Corporation and its employees, including the education and training of its employees and efficiency in the performance of the Corporation's functions.

Performance of functions

12

The Corporation may authorise any member or employee of the Corporation and, except so far as regulations provide otherwise, any other person to perform on behalf of the Corporation such of the Corporation's functions (including the function conferred on the Corporation by this paragraph) as are specified in the authorisation.

Instruments and contracts

13

Provision may be made by regulations with respect to—

• (a) the execution of documents by or on behalf of the Corporation;

• (b) the admission in evidence of documents purporting to be executed or issued by the Corporation or signed by a member or an employee of the Corporation;

• (c) the mode of entering into contracts by or on behalf of the Corporation.

Supplemental

14

In this Schedule references to the chairman, a deputy chairman and a member are respectively references to the chairman, a deputy chairman and a member of the Corporation and references to an official member are to a member appointed in pursuance of section 1(3)(c) of this Act

SCHEDULE 2

PART I — Further amendments of Schedule 4 to the Petroleum (Production) Regulations 1966 as amended

1

For paragraph (1) of clause 8 of the model clauses set out in Schedule 4 to the Petroleum (Production) Regulations 1966 as amended by the Petroleum (Production) (Amendment) Regulations 1971 (hereafter in this Part of this Schedule referred to as "the relevant clauses") there shall be substituted the following paragraph:—

• (1) The Licensee shall make to the Minister as consideration for me grant of this licence—

• (a) payments of royalty in accordance with clauses 8A and 8B of this licence ;

• (b) deliveries of petroleum in accordance with clause 8C of this licence ; and

• (c) payments in accordance with Schedule 2 to this licence.

2

After clause 8 of the relevant clauses there shall be inserted the following clauses:—

(8A) (1) Subject to paragraphs (2) to (4) of this clause the Licensee shall pay to the Minister, in respect of each half year in which this licence is in force (hereafter in this clause and in clause 8B of this licence referred to as a " chargeable period "), a royalty of an amount equal to 12 ½ per cent. of the value of the petroleum relating to that period. (2) The Licensee shall not be required to make a payment in pursuance of paragraph (1) of this clause in respect of a chargeable period if he is required by virtue of clause 8C of this licence to deliver to the Minister all the royalty petroleum for that period. (3) The Licensee shall not be required to make a payment in pursuance of paragraph (1) of this clause in respect of a chargeable period if he is required by virtue of clause 8C of this licence to deliver to the Minister some but not all of the royalty petroleum for that period; but in respect of that period the Licensee shall, subject to paragraph (4) of this clause, pay to the Minister a royalty of an amount determined in accordance with the formula— $$A(12½−B)100−B$ where A is the value of the petroleum relating to that period and B is the number of per cent. in the percentage which the royalty petroleum required to be delivered to the Minister in that period is of the petroleum won and saved in the licensed area in that period.$ (4) Where in a chargeable period in respect of which, apart from this paragraph, royalty is payable in pursuance of paragraph (3) of this clause, the petroleum won and saved in the licensed area includes both petroleum in the form of gas and petroleum in other forms, that paragraph shall have effect— (a) in relation to the petroleum in the form of gas, as if references to petroleum in the provisions of that paragraph relating to the meaning of A and B excluded petroleum in other forms; and (b) in relation to the petroleum in other forms, as if those references excluded petroleum in the form of gas; and in such a case the value of the petroleum relating to that period shall be apportioned between the petroleum in the form of gas and the petroleum in other forms in such manner as the Minister and the Licensee may agree. (5) For the purposes of this clause and clause 8B of this licence the value of the petroleum relating to a chargeable period is, subject to paragraph (b) of this clause, the total of the amounts which, if the words " one-half of " were omitted from paragraph (b) of subsection (4) and paragraph (d) of subsection (5) of section 2 of the Oil Taxation Act 1975, would in pursuance of paragraph (a) of the said subsection (4) fall to be taken into account in relation to that period in respect of the persons who by reference to this licence are or are treated as participators for the purposes of those subsections, reduced by— (a) the total of the market values which would in pursuance of the said paragraph (b) fall to be taken into account as aforesaid ; and (b) a sum ascertained in pursuance of paragraph (7) of this clause in respect of the cost of conveying and treating petroleum. (6) The value which, in pursuance of paragraph (5) of this clause, is the value of the petroleum relating to a chargeable period shall be increased by— (a) the amount of the price received or receivable for any petroleum consisting of gas won and saved in the licensed area in that period which is sold to the British Gas Corporation in that period under a contract made before the end of June 1975 ; and (b) an amount equal to the value, as determined for the purposes of income tax or the charge of corporation tax on income, of so much of the petroleum won and saved in the licensed area as falls within section 10(1)(b) of the Oil Taxation Act 1975 and was in that period disposed of or relevantly appropriated (within the meaning of Part I of that Act) by the persons mentioned in the said paragraph (5). (7) The Minister may from time to time, by notice in writing given to the Licensee, determine the mode of ascertaining any sum for the purposes of sub-paragraph (b) of paragraph (5) of this clause ; but— (a) the Minister shall not give a notice in pursuance of this paragraph unless he has consulted persons appearing to him to be representative of the holders of petroleum production licences about the terms of the notice ; and (b) any dispute between the Minister and the Licensee as to the amount of such a sum shall, in default of agreement before the expiration of fourteen months beginning with the last day of the chargeable period to which the sum relates and subject to sub-paragraph (c) of this paragraph, be determined by the Minister ; and (c) the Licensee may, during the period of 28 days beginning with the day on which he receives from the Minister particulars of a determination in pursuance of sub-paragraph (b) of this paragraph, refer to arbitration in the manner provided by clause 34 of this licence any question as to whether the determination is in accordance with the relevant notice given to the Licensee in pursuance of this paragraph. (8) In this clause " royalty petroleum ", in relation to a chargeable period, means the petroleum which by virtue of clause 8C of this licence the Minister is entitled to require the Licensee to deliver to him in that period. (8B) (1) The Licensee shall, within two months after the end of each chargeable period, deliver to the Minister, in such form as the Minister may specify, a statement of— (a) the quantity of petroleum won and saved in the licensed area in that period; (b) the quantity of that petroleum delivered to the Minister in that period in pursuance of clause 8C of this licence ; (c) the amounts of the prices and market values which are required by paragraph 2 of Schedule 2 to the Oil Taxation Act 1975 to be stated in the returns made for that period in pursuance of that paragraph in consequence of this licence ; (d) the amount mentioned in clause 8A(6)(a) of this licence; and (e) the amount which the Licensee estimates will, as respects that period, be the amount of the sum mentioned in clause 8A(5)(b) of this licence. (2) The Licensee shall, when he delivers a statement to the Minister in pursuance of paragraph (1) of this clause for a chargeable period in respect of which royalty is payable in pursuance of clause 8A(1) of this licence, make to the Minister a payment on account of royalty for that period equal to one-eighth of the sum produced by aggregating the amounts which in pursuance of sub-paragraphs (c) and (d) of paragraph (1) of this clause are specified in the statement and reducing the aggregate by the amount so specified in pursuance of sub-paragraph (e) of that paragraph and by the amount which, by virtue of paragraph 2(2)(d)(ii) of Schedule 2 to the said Act of 1975, was specified in the statement delivered to the Minister in pursuance of the said paragraph (1) in respect of the preceding chargeable period; but the Licensee may reduce the amount of the payment by the amount of any deduction from it authorised by paragraph 3(2) of Schedule 2 to this licence. (3) The Licensee shall, when he delivers a statement to the Minister in pursuance of paragraph (1) of this clause for a chargeable period in respect of which royalty is payable in pursuance of clause 8A(3) or (4) of this licence, make to the Minister a payment on account of royalty for that period equal to the amount which would be so payable for that period if the royalty so payable for that period fell to be determined by reference to the amounts specified in the statement and the amount which, by virtue of paragraph 2(2)(d)(ii) of Schedule 2 to the Oil Taxation Act 1975, was specified in the statement delivered to the Minister in pursuance of paragraph (1) of this clause in respect of the preceding chargeable period ; but the Licensee may reduce the amount of the payment as mentioned in paragraph (2) of this clause. (4) The Minister shall make to the Licensee payments equal to the amounts by which, in consequence of paragraphs (2) to (4) of clause 8A of this licence, the deductions which the Licensee was entitled to make in pursuance of paragraph 3(2) of Schedule 2 to this licence fall short of the deductions which the Licensee would have been so entitled to make if royalty were only payable in pursuance of paragraph (1) of that clause and paragraph (2) of it were omitted; and payments by the Minister in pursuance of this paragraph shall be made as soon as the amounts of the relevant deductions have been determined. (5) The Minister may from time to time, after a statement in respect of any chargeable period has bees delivered to him in pursuance of paragraph (1) of this clause and before he has given to the Licensee a notice in pursuance of paragraph (b) of this clause in respect of that period, give a notice in writing to the Licensee specifying the amount which the Minister estimates is payable by the Licensee in pursuance of clause 8A of this licence in respect of that period; and where the amount specified in the notice is larger or smaller than the total amount already paid by the Licensee in pursuance of this clause in respect of that period, then— (a) if it is larger the difference shall be paid forth with by the Licensee to the Minister; and (b) if it is smaller the difference shall be paid forthwith by the Minister to the Licensee. (6) When it appears to the Minister that the value of the petroleum relating to any chargeable period has been finally determined for tax purposes, he may give to the Licensee a notice in writing specifying the amount which the Minister considers is payable by the Licensee in pursuance of clause 8A of this licence in respect of that period; and where the amount specified in the notice is larger or smaller than the total amount already paid by the Licensee in pursuance of this clause in respect of that period, then, subject to paragraph (8) of this clause— (a) if it is larger the difference shall be paid forthwith by the Licensee to the Minister ; and (b) if it is smaller the difference shall be paid forthwith by the Minister to the Licensee. (7) If after the date when the Minister gave notice to the Licensee in pursuance of paragraph (b) of this clause or this paragraph in respect of a chargeable period it appears to the Minister, in consequence of a relevant assessment or determination made after that date which relates directly or indirectly to the value of petroleum by reference to which the amount specified in the notice was determined, that another amount ought to have been so specified, he may give notice in writing to the Licensee specifying the other amount; and where he does so, then, subject to paragraph (8) of this clause— (a) if the other amount is larger than the amount specified in the previous notice the difference shall be paid forthwith by the Licensee to the Minister; and (b) if it is smaller the difference shall be paid forthwith by the Minister to the Licensee. (8) A decision made by the Minister for the purposes of paragraph (5), (6) or (7) of this clause shall not be called in question by the Licensee except that any dispute between the Minister and the Licensee as to whether an amount specified in a notice given in pursuance of the said paragraph (b) or (7) is payable by virtue of clause 8A of this licence may be referred to arbitration in the manner provided by clause 34 of this licence; and on a reference to arbitration in pursuance of this paragraph any relevant assessment or determination for the time being in force shall be binding on the Minister and the Licensee so far as the assessment or determination relates directly or indirectly to the value of petroleum relating to the chargeable period in question. (9) When any payment falls to be made by the Licensee or the Minister in pursuance of paragraph (5), (6) or (7) of this clause, an amount in respect of interest on the payment shall also be payable by him to the recipient of the payment and that amount shall be calculated in such manner as the Minister may specify from time to time in a notice in writing given by him to the Licensee; but— (a) a notice in pursuance of this paragraph shall provide for amounts by way of interest to be calculated by applying a rate of interest which is for the time being a commercial rate of interest; and (b) any such amount in respect of interest shall be disregarded in calculating for the purposes of the said paragraph (5) or (6) any amount already paid by the Licensee in pursuance of this clause. (10) In this clause "relevant assessment or determination" means an assessment or determination made by the Commissioners of Inland Revenue for the purposes of petroleum revenue tax, income tax or the charge of corporation tax on income or a determination made in proceedings arising out of such an assessment or determination made by the said Commissioners. (8C) (1) If during the term of this licence the Minister serves on the Licensee a notice in writing in accordance with the following provisions of this clause requiring the Licensee to deliver to the Minister part of the petroleum won and saved by the Licensee in the licensed area, the Licensee shall comply with the notice. (2) Where the Minister proposes to serve a notice on the Licensee in pursuance of paragraph (1) of this clause, he shall before doing so— (a) give the Licensee a copy of the proposed notice and an opportunity of making representations to the Minister about it; and (b) consider any representations then made to him by the Licensee about the proposed notice ; and the Minister shall, in deciding upon the terms of the actual notice, have regard to the desirability of not disturbing unduly any arrangements made by the Licensee for transporting and delivering petroleum won and saved from the licensed area. (3) Subject to paragraph (4) of this clause, a notice served in pursuance of paragraph (1) of this clause— (a) shall specify the date on which the notice is to come into force and may contain provisions with respect to the time when it shall cease to be in force ; (b) shall specify the quantity of petroleum won and saved in the licensed area during each half year in which the notice is in force which, up to any maximum quantities specified in the notice in pursuance of paragraph (4)(b) of this clause, is to be delivered to the Minister in consequence of the notice ; (c) may relate to all petroleum so won and saved or may be limited to and specify different quantities of such petroleum which is of one or more of the following kinds, namely, crude oil of a quality or of each quality determined in the manner specified in the notice, condensate, natural gas and natural gas liquids ; (d) shall specify the place or places at which any petroleum or kind of petroleum is to be delivered in pursuance of the notice and may contain provisions with respect to the times at which any quantities of it are to be so delivered. (4) Such a notice— (a) shall not specify as the date on which it is to come into force a date before the expiration of the period of six months beginning with the date on which the notice is served on the Licensee but shall, if the Minister serves on the Licensee a further notice in writing stating that it is to cease to be in force at a time specified in the further notice which is not earlier than six months after the date of service of the further notice, cease to be in force at that time; (b) shall not specify, as the quantity of petroleum won and saved in any half year which is to be delivered in pursuance of the notice or as the quantity of any kind of such petroleum, a quantity greater than 12J per cent. of all the petroleum, or as the case may be of all the petroleum of that kind, which is won and saved by the Licensee in the licensed area in that half year, but may provide that the quantities of the petroleum or of a kind of petroleum so won and saved which are to be so delivered shall not in the aggregate exceed a quantity specified in the notice; (c) shall not specify as a place at which delivery is to be made in pursuance of the notice a place which is neither a well head in the licensed area nor a point on land at which the Licensee normally lands petroleum of any kind from that area. (5) Where petroleum or petroleum of any kind is delivered to the Minister, otherwise than at a well head, in pursuance of a notice served by virtue of paragraph (1) of this clause, the Minister shall pay to the Licensee a sum in respect of the cost of the delivery and treatment of the petroleum; and clause 8A(7) of this licence shall apply for the purpose of ascertaining that sum as if for the reference to paragraph (5)(b) of that clause there were substituted a reference to this paragraph.

3

Clause 11 of the relevant clauses shall be omitted.

4

Clause 12 of the relevant clauses shall be renumbered as paragraph (1) of that clause and after it the following paragraphs shall be inserted in that clause:

(2) If during the said term the Minister serves a notice in writing on the Licensee requiring him to submit to the Minister, before a date specified in the notice, an appropriate programme for exploring for petroleum in the licensed area during a period so specified, the Licensee shall comply with the notice; and for the purposes of this paragraph an appropriate programme is one which any person who, if he— (a) were entitled to exploit the rights granted by this licence; and (b) had the competence and resources needed to exploit those rights to the best commercial advantage; and (c) were seeking to exploit those rights to the best commercial advantage, could reasonably be expected to carry out during the period specified in the notice, and that period must be within the said term and begin after the expiration of the term of six years mentioned in clause 3 of this licence. (3) If a programme is submitted to the Minister in consequence of a notice served by him in pursuance of paragraph (2) of this clause, then— (a) he shall not be entitled to revoke this licence on the ground that the programme does not satisfy the requirements of that paragraph (hereafter in this clause referred to as " the relevant requirements"); but (b) if he is of opinion that the programme does not satisfy the relevant requirements he may serve a notice in writing on the Licensee stating his opinion and the reasons for it (4) Where notice in respect of a programme is served on the Licensee in pursuance of paragraph (3) of this clause he shall either— (a) within 28 days beginning with the date of service of the notice refer to arbitration, in the manner provided by clause 34 of this licence, the question of whether the programme satisfies the relevant requirements ; or (b) within a reasonable period beginning with that date submit to the Minister a further programme which satisfies the relevant requirements; and where it is determined in consequence of any reference to arbitration in pursuance of sub-paragraph (a) of this paragraph that the programme in question does not satisfy the relevant requirements the Licensee shall submit to the Minister, as soon as possible after the date of the determination, a further programme which satisfies the relevant requirements. (5) The Licensee shall carry out any programme submitted by him in pursuance of this clause as to which either— (a) the Minister serves notice in writing on the Licensee stating that the Minister approves the programme; or (b) it is determined in consequence of any reference to arbitration in pursuance of this licence that the programme satisfies the relevant requirements ; and any programme approved by the Minister in pursuance of this paragraph shall be deemed for the purposes of this licence to satisfy the relevant requirements. (6) Where, in consequence of any breach or non-observance by the Licensee of any provision of paragraph (2), (4) or (5) of this clause, the Minister has power by virtue of paragraph (1) of clause 33 of this licence to revoke this licence, he may if he thinks fit exercise that power in relation to such part only of the licensed area as he may specify; and where he does so the rights granted by this licence shall cease in respect of the specified part of that area without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence. (7) Where the Licensee has a duty by virtue of this clause to carry out a programme during a part of the term of this licence, the Minister may serve notice in pursuance of paragraph (2) of this clause in respect of another part of that term.

5

After clause 12 of the relevant clauses there shall be inserted the following clauses—