Legalize / United Kingdom / Public General Act

Petroleum Act 1998

Type Public General Act

Publication 1998-06-11

Last updated 2023-12-26

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) In the case of a proposal of the kind mentioned in subsection (1)(b), any person who would if the proposed change were made have a duty to secure that the programme is carried out must be a person who—

(a) if the programme relates to an offshore installation, is within paragraph (a), (b), (ba), (c), (d) or (e) of section 30(1) when the proposal is made, or has been within one of those paragraphs at some time since the giving of the first notice under section 29(1) in relation to the installation; and

(b) if the programme relates to a submarine pipeline, is within paragraph (a), (b) or (c) of section 30(2) when the proposal is made, or has been within one of those paragraphs at some time since the giving of the first notice under section 29(1) in relation to the pipeline.

(3) The Secretary of State shall not propose that a person who is or has been within paragraph... (e) (but no other paragraph) of section 30(1) or paragraph (b) or (c) (but not paragraph (a)) of section 30(2) shall have a duty to secure that a programme is carried out unless it appears to the Secretary of State that a person already under that duty has failed or may fail to discharge it.

(3A) A proposal that a person who is or has been within paragraph (b) or (c) of section 30(1) is to have a duty to secure that a programme is carried out may not be made if the Secretary of State would be prevented from giving a notice under section 29(1) to the person by virtue of section 31(A1) if the programme had not already been approved under this section.

(4) A proposal under subsection (1) shall be made by written notice given—

(a) if the proposal is the Secretary of State’s, to each of the persons by whom the programme was submitted; and

(b) in any other case, to the Secretary of State;

and a person giving notice to the Secretary of State shall at the same time pay to him such fee in respect of his expenditure under this Part of this Act as may be determined in accordance with regulations under section 39.

(4A) A person who makes a proposal under subsection (1) that is likely to have an effect on the cost of carrying out the programme must frame it so as to ensure (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) that the cost of carrying out the programme as proposed to be altered is kept to the minimum that is reasonably practicable in the circumstances.

(4B) Where the Secretary of State makes a proposal under subsection (1)(a) the purpose of which is to reduce the total cost of carrying out a programme, the proposal may not increase the total costs to be met by any person who is to be subject to obligations under the programme or under any other abandonment programme.

(5) Where the Secretary of State has made a proposal under subsection (1)(a), he shall give an opportunity to make written representations about it to each of the persons who submitted the programme.

(6) Where a proposal has been made under subsection (1)(b), the Secretary of State shall give an opportunity to make written representations about it to every person (other than one who made the proposal) who will if the proposed change is made—

(a) have a duty to secure that the programme is carried out; or

(b) cease to have that duty.

(7) The Secretary of State shall determine whether a change proposed under subsection (1) is to be made and shall then give notice of his determination, and of his reasons for it, to—

(a) every person who, before the determination was made, had a duty to secure the carrying out of the programme; and

(b) any person who has that duty as a result of the determination.

(7A) If it appears to the Secretary of State that what is proposed under subsection (1) is likely to have an effect on the cost of carrying out the programme, the Secretary of State must, before making a determination under subsection (7)—

(a) consult the OGA, and

(b) take that effect into account.

(7B) When consulted under subsection (7A)(a) the OGA must (in particular) consider and advise on—

(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and

(b) whether subsection (4A) applies and, if so, whether it has been complied with.

(8) Where the Secretary of State determines that a change proposed in accordance with this section shall be made, this Part of this Act shall thereafter have effect as if the programme had been approved by the Secretary of State after being submitted under section 29 with the alterations, or as the case may be by the persons, specified in the determination.

Withdrawal of approval

35

(1) The Secretary of State may at the request of one or more of the persons who submitted an abandonment programme withdraw his approval of the programme.

(2) If a request under subsection (1) is made by some but not all of the persons who submitted the programme, the Secretary of State shall give the others an opportunity to make written representations as to whether his approval should be withdrawn.

(3) The Secretary of State shall after determining whether to withdraw his approval of an abandonment programme give notice of his determination to each of the persons who submitted the programme.

Duty to carry out programmes

36

Where an abandonment programme is approved by the Secretary of State, it shall be the duty of each of the persons who submitted it to secure that it is carried out and that any conditions to which the approval is subject are complied with.

Default in carrying out programmes

37

(1) If an abandonment programme approved by the Secretary of State is not carried out or a condition to which the approval is subject is not complied with, the Secretary of State may by written notice require any of the persons who submitted the programme to take such remedial action as may be specified in the notice within such time as may be so specified.

(1A) If it appears to the Secretary of State that the proposed remedial action is likely to have an effect on the cost of carrying out the programme, the Secretary of State must—

(a) consult the OGA before giving a notice under subsection (1), and

(b) take that effect into account when deciding whether to give the notice.

(1B) When consulted under subsection (1A)(a), the OGA must consider and advise on the likely effect of the proposed remedial action on the cost of carrying out the programme.

(2) A person who fails to comply with a notice given to him under subsection (1) shall be guilty of an offence unless he proves that he exercised due diligence to avoid the failure.

(3) If a notice under subsection (1) is not complied with, the Secretary of State may carry out the remedial action required by the notice, and may recover any expenditure incurred by him in doing so from the person to whom the notice was given.

(4) A person liable to pay any sum to the Secretary of State by virtue of subsection (3) shall also pay interest on that sum for the period beginning with the day on which the Secretary of State notified him of the sum payable and ending with the date of payment.

(5) The rate of interest payable in accordance with subsection (4) shall be a rate determined by the Secretary of State as comparable with commercial rates.

Financial resources

38

(1) The Secretary of State may, for a purpose specified in subsection (1A), give a notice to a person within subsection (1B) requiring the person, within a time specified in the notice—

(a) to provide specified information relating to the person's financial affairs;

(b) to supply copies of specified documents, or documents of a specified description, relating to those affairs.

(1A) Those purposes are—

(a) determining whether to give a notice under section 29 to a person in respect of an installation or pipeline;

(b) determining whether to make a proposal under section 34(1) to impose a duty on a person under section 36;

(1B) A person falls within this subsection if—

(a) a notice under section 29(1) may be given to the person,

(b) the person falls within section 34(2)(a) or (b) and the Secretary of State is considering proposing, in accordance with section 34(1)(b), that the person should have a duty under section 36, or

(c) the person falls within section 34(2)(a) or (b) and the Secretary of State is considering whether to impose a duty on the person under section 36 in accordance with a proposal made under section 34(1)(b).

(2) In order to satisfy himself that a person falling within subsection (2A) will be capable of carrying out any abandonment programme which has been submitted (whether or not it is approved) or may be submitted in relation to an installation or pipeline , the Secretary of State may at any time by written notice require that person, within such time as may be specified in the notice—

(a) to provide such information (which may relate to the estimated costs of abandonment of the installation or pipeline or to any other financial or other matter) ; and

(b) to supply copies of such documents,

as may be so specified.

(2A) A person falls within this subsection if—

(a) a notice under section 29(1) has been given to the person, or

(b) the person has a duty under section 36 to secure that an abandonment programme is carried out.

(3) A person who—

(a) without reasonable excuse fails to comply with a notice under subsection (1) or (2); or

(b) in purported compliance with such a notice provides information which he knows to be false in a material particular or recklessly provides information which is false in a material particular,

shall be guilty of an offence.

(4) The Secretary of State may, after consulting the Treasury, give written notice to a person to whom subsection (4A) applies, requiring the person to take such action as may be specified in the notice within such time as may be so specified.

(4A) This subsection applies to a person if—

(a) the person falls within subsection (2A), and

(b) the Secretary of State is not satisfied that the person will be capable of carrying out any duty which has been, or is likely to be, imposed on the person by section 36.

(5) The Secretary of State shall not give notice to a person under subsection (4) without first giving him an opportunity to make written representations as to whether the notice should be given.

(6) A person who fails to comply with a notice under subsection (4) shall be guilty of an offence unless he proves that he exercised due diligence to avoid the failure.

(7) It is an offence for a person to disclose information obtained by virtue of a notice under subsection (1) or (2) unless the disclosure—

(a) is made with the consent of the person by or on behalf of whom the information was provided,

(b) is for the purpose of the exercise of the Secretary of State's functions under this Part, Chapter 3 of Part 2 of the Energy Act 2004 or Part 1 of the Energy Act 2008, or

Regulations

39

(1) The Secretary of State may make regulations relating to the abandonment of offshore installations and submarine pipelines.

(2) Without prejudice to the generality of subsection (1), regulations under this section may—

(a) prescribe standards in respect of the dismantling, removal and disposal of installations and pipelines;

(b) prescribe standards and safety requirements in respect of anything left in the water in cases where an installation or pipeline is not wholly removed;

(d) make provision for inspection, including provision as to the payment of the costs of inspection;

(e) make provision as to the determination of the amount of any fees that are payable to the Secretary of State under this Part of this Act.

(3) Regulations under this section may include provision making it an offence, in such cases as may be prescribed in the regulations, to contravene the regulations.

(4) Where regulations under this section create an offence, they shall make provision as to the mode of trial and punishment of offenders; but—

(a) any provision as to punishment on summary conviction shall not authorise a fine exceeding the statutory maximum or imprisonment; and

(b) any provision as to punishment on conviction on indictment shall not authorise imprisonment for a term exceeding two years.

(5) Before making regulations under this section the Secretary of State shall consult organisations in the United Kingdom appearing to him to be representative of those persons who will be affected by the regulations; and he shall not make regulations relating to the amount of any fees without the consent of the Treasury.

(6) Regulations under this section shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Offences: penalties

40

A person guilty of an offence under section 28A, 30, 33, 36A, 37 or 38 shall be liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or to both.

Offences: general

41

(1) Proceedings for an offence under section 28A, 30, 33, 36A, 37 or 38 or under regulations made under section 39 shall not be instituted in England and Wales except—

(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or

(b) by or with the consent of the Director of Public Prosecutions.

(2) Proceedings for an offence under section 28A, 30, 33, 36A, 37 or 38 or under regulations made under section 39 shall not be instituted in Northern Ireland except—

(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or

(b) by or with the consent of the Director of Public Prosecutions for Northern Ireland.

(3) Where an offence committed by a body corporate under section 28A, 30, 33, 36A, 37 or 38 or under regulations made under section 39 is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any 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.

(4) Where the affairs of a body corporate are managed by its members, subsection (3) shall apply in relation to acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(5) If an offence under section 28A, 36A or 37 or under regulations made under section 39 is committed outside the United Kingdom, proceedings for the offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.

(6) Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on prosecutions) shall not apply to proceedings for an offence to which subsection (1) of this section applies.

Validity of Secretary of State’s acts

42

(1) If any person is aggrieved by any of the acts of the Secretary of State mentioned in subsection (2) and desires to question its validity on the ground that it was not within the powers of the Secretary of State or that the relevant procedural requirements had not been complied with, he may within 42 days of the day on which the act was done make an application to the court under this section.

(2) The acts referred to in subsection (1) are—

(a) the giving of a notice under section 29(1);

(b) the approval of a programme under section 32;

(d) a determination under section 34;

(e) a determination under section 35;

(ea) the giving of a notice under section 36A(2);

(f) the giving of a notice under section 38(4).

(3) If on an application under this section the court is satisfied that the act in question was not within the powers of the Secretary of State or that the applicant has been substantially prejudiced by a failure to comply with the relevant procedural requirements, the court may quash the act.

(4) Except as provided by this section, the validity of any of the acts of the Secretary of State referred to in subsection (1) shall not be questioned in any legal proceedings whatever.

(5) In this section “the relevant procedural requirements”—

(a) in relation to the giving of a notice under section 29(1), means the requirements of section 31(4);

(b) in relation to the approval of a programme under section 32, means the requirements of section 32(3);

(d) in relation to a determination under section 34, means the requirements of section 34(5), (6) and (7);

(e) in relation to a determination under section 35, means the requirements of section 35(2);

(ea) in relation to the giving of a notice under section 36A(2), means the requirements of section 36A(6);

(f) in relation to the giving of a notice under section 38(4), means the requirements of section 38(5).

(6) In this section, “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session;

Notices

43

Any notice or other communication authorised or required to be given by this Part of this Act may be sent by post (but this is without prejudice to any other method of transmission).

Meaning of “offshore installation”

44

(1) In this Part of this Act, “offshore installation” means any installation which is or has been maintained, or is intended to be established, for the carrying on of any activity to which subsection (2) applies.

(2) This subsection applies to any activity mentioned in subsection (3) which is carried on from, by means of or on an installation which is maintained in the water, or on the foreshore or other land intermittently covered with water, and is not connected with dry land by a permanent structure providing access at all times and for all purposes.

(3) The activities referred to in subsection (2) are—

(a) the exploitation, or the exploration with a view to exploitation, of mineral resources in or under the shore or bed of relevant waters;

(aa) the exploration of any place in, under or over relevant waters with a view to the storage of gas in such an place;

(ab) the conversion of any place in, under or over relevant waters for the purpose of storing gas;

(b) the storage of gas in, under or over relevant waters or the recovery of gas so stored;

(ba) the unloading of gas at any place in, under or over relevant waters;

(c) the conveyance of things by means of a pipe, or system of pipes, constructed or placed on, in or under the shore or bed of relevant waters; and

(d) the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within any of paragraphs (a) to (c) or this paragraph.

(4) In this Part of this Act, “relevant waters” means—

(a) tidal waters and parts of the sea in or adjacent to the United Kingdom up to the seaward limits of the territorial sea;

(b) waters in an area designated under section 1(7) of the Continental Shelf Act 1964; and

but Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions and modifications as may be prescribed by the Order, this Part of this Act shall have effect as if—

(i) any reference in this Part of this Act to relevant waters included a reference to waters in any area specified under section 10(8); and

(ii) in relation to an installation which is or has been maintained, or is intended to be established, in relevant waters, any reference in subsection (3) to relevant waters included a reference to waters in a foreign sector of the continental shelf which are adjacent to such waters.

(5) For the purposes of this section—

“gas” means gas within the meaning of section 2(4) of the Energy Act 2008;

“inland waters” means waters within the United Kingdom other than tidal waters and parts of the sea;

“installation” includes—any floating structure or device maintained on a station by whatever means; andin such cases and subject to such exceptions as may be prescribed by Order in Council, any apparatus or works which are by virtue of section 26 to be treated as associated with a pipe or system of pipes for the purposes of Part III of this Act,but, subject to paragraph (b), does not include any part of a pipeline within the meaning of that section;

“modifications” includes additions, omissions and alterations.

(6) The fact that an installation has been maintained for the carrying on of an activity falling within subsection (3) shall be disregarded for the purposes of this section if, since it was so maintained, the installation—

(a) has been outside relevant waters or, where it was so maintained in a part of a foreign sector of the continental shelf adjacent to those waters, the area consisting of those waters and that part; or

(b) has been maintained for the carrying on of an activity not falling within that subsection.

(7) Any statutory instrument containing an Order under subsection (4) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation of Part IV

45

In this Part of this Act—

“abandonment programme” has the meaning given by section 29;

“foreign sector of the continental shelf” has the meaning given by section 48(1);

“offshore installation” has the meaning given by section 44;

“relevant waters” has the meaning given by section 44(4);

“submarine pipeline” means a pipeline within the meaning of section 26 which is , or is intended to be established, in, under or over waters in—the territorial sea adjacent to the United Kingdom; oran area designated under section 1(7) of the Continental Shelf Act 1964.

but does not include any such pipeline which, by virtue of an order under subsection (2A) of section 24, is to be disregarded for the purposes of Part 3 of this Act (other than that subsection).

Part V — Miscellaneous and General

Northern Ireland and Isle of Man shares of petroleum revenue

46

(1) Where petroleum is delivered to the OGA under the terms of a licence granted under section 3 by virtue of subsection (2)(b) of that section, then, for the purposes of section 2 of the Miscellaneous Financial Provisions Act 1968 (Northern Ireland and Isle of Man shares of revenue from the continental shelf), the proceeds from the licence shall be taken to include the proceeds of the sale of the petroleum less—

(a) any sums paid by the OGA in respect of the petroleum or the delivery or treatment of the petroleum; and

(b) any expenses incurred by the OGA in connection with the sale.

(2) In this section “petroleum” has the same meaning as in Part I of this Act.

Loans for development

47

(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) The aggregate amount for the time being outstanding in respect of the principal of loans made under subsection (1)(a) shall not exceed £50,000,000.

(3) The aggregate amount of—

(a) the principal sums in respect of which guarantees under subsection (1)(b) are for the time being in force; and

(b) 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 £600,000,000.

(4) Immediately after making a loan or giving a guarantee under subsection (1), the Secretary of State shall lay a statement relating to it before each House of Parliament.

(5) Where any sum is issued for fulfilling a guarantee given under subsection (1) 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.

(6) In subsection (1) “oil company” means a body corporate which in the opinion of the Secretary of State has as its principal object—

(a) the production of petroleum;

(b) the refining of petroleum;

(d) the supplying of petroleum in a case where any of its other objects is one of those mentioned in paragraphs (a) to (c).

Interpretation

48

(1) In this Act “foreign sector of the continental shelf” means an area within which rights are exercisable with respect to the sea bed and subsoil and their natural resources by a country or territory outside the United Kingdom.

(1A) In this Act “the OGA” means the Oil and Gas Authority.

(2) Any reference in this Act to the commencement of this Act shall be construed as a reference to the commencement of this Act in accordance with section 52(4).

(3) Each of Parts II, III and IV of this Act—

(a) so far as it applies to individuals, applies to them whether or not they are British citizens; and

(b) so far as it applies to bodies corporate, applies to them whether or not they are incorporated under the law of any part of the United Kingdom.

Transitional provisions and savings

49

Schedule 3 (transitional provisions and savings) shall have effect.

Consequential amendments

50

Schedule 4 (consequential amendments) shall have effect.

Repeals and revocations

51

(1) The enactments mentioned in Part I of Schedule 5 (which include certain enactments which are spent) shall be repealed to the extent specified in the third column of that Part of that Schedule.

(2) The instruments mentioned in Part II of that Schedule (which include certain provisions which are spent) shall be revoked to the extent specified in the third column of that Part of that Schedule.

Commencement

52

(1) Section 5(1) to (4) and (11) and this section shall come into force on the passing of this Act.

(2) The provisions mentioned in subsection (3) shall come into force on such day as the Secretary of State may by order appoint, and different days may be appointed for different provisions or different purposes.

(3) The provisions referred to in subsection (2) are—

in Schedule 4, paragraphs 8, 10, 11, 13, 34 and 40; and

in Schedule 5, the repeals of—

the Employment (Continental Shelf) Act 1978;

section 287(5) of the Trade Union and Labour Relations (Consolidation) Act 1992; and

section 201(5) of the Employment Rights Act 1996.

(4) Subject to subsections (1) and (2), this Act shall come into force on such day as the Secretary of State may by order appoint.

(5) Orders under this section shall be made by statutory instrument.

Short title and extent

53

(1) This Act may be cited as the Petroleum Act 1998.

(2) This Act, except for sections 7 and 8, extends to Northern Ireland.

SCHEDULE 1

1

The model clauses (other than the model clause entitled “Right to search and bore for and get petroleum”) set out in Parts I and III of Schedule 2 to the Petroleum (Production) Regulations 1935 as amended by the Petroleum (Production) (Amendment) Regulations 1954 and the Petroleum (Production) (Amendment) Regulations 1957 (mining licences).

2

The model clauses (other than model clause 2) set out in Schedule 2 to the Petroleum (Production) (Continental Shelf and Territorial Sea) Regulations 1964 (production licences for areas in controlled waters).

3

The model clauses (other than model clause 2) set out in Schedule 3 to the Petroleum (Production) Regulations 1966 (production licences for landward areas).

4

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) Regulations 1966 (production licences for seaward areas).

5

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) Regulations 1966 as amended by the Petroleum (Production) (Amendment) Regulations 1971 (production licences for seaward areas).

6

The model clauses (other than model clause 2) set out in Part II of Schedule 2 to the Petroleum and Submarine Pipe-lines Act 1975 (production licences for seaward areas).

7

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) Regulations 1976 (production licences for landward areas).

8

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) Regulations 1976 as amended by the Oil and Gas (Enterprise) Act 1982 (production licences for landward areas).

9

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) Regulations 1976 (production licences for seaward areas).

10

11

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) Regulations 1976 as amended by the Petroleum (Production) (Amendment) Regulations 1978 and the Petroleum (Production) (Amendment) Regulations 1980 (production licences for seaward areas).

12

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) Regulations 1976 as amended by the Petroleum (Production) (Amendment) Regulations 1978, the Petroleum (Production) (Amendment) Regulations 1980 and the Oil and Gas (Enterprise) Act 1982 (production licences for seaward areas).

13

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) Regulations 1982 (production licences for landward areas).

14

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) Regulations 1982 (production licences for seaward areas).

15

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) Regulations 1982 as amended by the Petroleum Act 1987 (production licences for seaward areas).

16

The model clauses (other than model clause 2) set out in Schedule 8 to the Petroleum (Production) Regulations 1982 (methane drainage licences).

17

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) (Landward Areas) Regulations 1984 as amended by the Petroleum Act 1987 (development licences).

18

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 (production licences for seaward areas).

19

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 as amended by the Offshore Safety Act 1992 (production licences for seaward areas).

20

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 as amended by the Offshore Safety Act 1992 and the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1995 (production licences for seaward areas).

21

The model clauses (other than model clause 2) set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 as amended by the Offshore Safety Act 1992, the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1995 and the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1996 (production licences for seaward areas).

22

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) (Seaward Areas) Regulations 1988 (exploration licences for seaward areas and landward areas below the low water line).

23

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) (Seaward Areas) Regulations 1988 as amended by the Offshore Safety Act 1992 (exploration licences for seaward areas and landward areas below the low water line).

24

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) (Seaward Areas) Regulations 1988 as amended by the Offshore Safety Act 1992 and the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1995 (exploration licences for seaward areas and landward areas below the low water line).

25

The model clauses (other than model clause 2) set out in Schedule 3 to the Petroleum (Production) (Landward Areas) Regulations 1991 (exploration licences for landward areas).

26

The model clauses (other than model clause 2) set out in Schedule 5 to the Petroleum (Production) (Landward Areas) Regulations 1991 (appraisal licences for landward areas).

27

The model clauses (other than model clause 2) set out in Schedule 6 to the Petroleum (Production) (Landward Areas) Regulations 1991 (development licences for landward areas).

SCHEDULE 2

Part I — Works authorisations

1

(1) The Secretary of State may by regulations make provision as to—

(a) the manner in which an application for a works authorisation is to be made; and

(b) the information to be included in or provided in connection with an application.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) A statutory instrument containing regulations under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.

2

The OGA shall, on receiving an application for a works authorisation—

(a) decide whether the application is to be considered further or rejected; and

(b) serve notice of its decision on the applicant and—

(i) in the case of a decision that the application is to be considered further, shall give the applicant such directions with respect to the application as the OGA considers appropriate for the purposes of paragraph 3; and

(ii) in the case of a decision to reject the application, shall include in the notice a statement of the reasons for the decision except any reason which in the opinion of the OGA it would be against the national interest to state.

3

Where the OGA serves on an applicant notice under paragraph 2 that the application is to be considered further, the applicant shall—

(a) publish, in such manner as the OGA directs, a notice which—

(i) contains such particulars of the application as the OGA directs; and

(ii) states that representations with respect to the application may be made in writing to the OGA within the period of 28 days beginning with the date on which the notice is first published in accordance with this paragraph or within such longer period beginning with that date as is specified in the notice in accordance with a direction of the OGA; and

(iii) states where the map mentioned in sub-paragraph (b) may be inspected during the period specified in the notice under paragraph (ii);

(b) secure that a map of such scale and containing such particulars as the OGA directs is available for inspection by the public free of charge from 10 a.m. to 4 p.m. on each weekday during the period so specified; and

and the OGA shall defer its further consideration of the application until it is satisfied that the applicant has complied with this paragraph.

4

(1) Subject to sub-paragraph (1A), this paragraph applies where the OGA decides that an application for a works authorisation is to be considered further and is of the opinion, either on its own initiative (except in relation to the purpose mentioned in paragraph 6(b)) or in consequence of representations made to it by the applicant or any other person,—

(a) that the route proposed for the pipeline or part of it in the application ought to be altered in a particular manner for any of the purposes mentioned in paragraph 6; or

(b) that the capacity proposed for the pipeline or part of it in the application ought to be increased for any of the purposes mentioned in paragraph 6(b) or (d).

(1A) This paragraph does not apply to the extent that the powers conferred by regulation 7 of the Storage of Carbon Dioxide (Access to Infrastructure) Regulations 2011 are exercisable in relation to the matters mentioned in sub-paragraph (1)(a) or (b).

(2) Where this paragraph applies, the OGA shall, before deciding whether to issue an authorisation in consequence of the application, serve notice of its opinion—

(a) on the applicant; and

(b) where the opinion relates to an alteration of the route proposed for the pipeline or part of it on—

(i) any persons whom the OGA considers are likely to be affected by the alteration; or

(ii) any person appearing to the OGA to represent such persons.

(3) In any notice of its opinion served under this paragraph the OGA shall state the reasons for its opinion except any reason which it considers that it would be against the national interest to state.

5

(1) Where under paragraph 4 the OGA serves on the applicant notice of its opinion it shall give him an opportunity of being heard with respect to the opinion; and where the applicant is heard the OGA may give such other persons, if any, as it thinks fit an opportunity to be heard at the hearing.

(2) Where under paragraph 4 the OGA serves on any person other than the applicant notice of its opinion, it shall state in the notice that representations in writing with respect to the opinion may be made to the OGA within a period specified in the notice.

6

The purposes referred to in paragraph 4(1) are—

(a) the purpose of avoiding or reducing danger to navigation, to persons engaged in and vessels and equipment used for fishing, to some structure or apparatus (which may be the pipeline) or to marine flora or fauna;

(b) the purpose of facilitating the use of the pipeline by persons other than the applicant where it appears to the OGA that such persons desire to use the pipeline;

(d) any other purpose which the OGA considers proper.

7

Where the OGA—

(a) is satisfied that an applicant for a works authorisation has complied with paragraph 3; and

(b) has considered any representations relating to the application which were made to the OGA—

(i) within the period specified in the notice published in respect of the application under paragraph 3(a);

(ii) at a hearing held under paragraph 5(1); and

(iii) in accordance with a notice served by the OGA in respect of the application under paragraph 5(2),

it shall decide whether to issue an authorisation in consequence of the application.

8

(1) Where the OGA decides not to issue a works authorisation in consequence of an application it shall serve on—

(a) the applicant; and

(b) each person on whom a copy of notice of the application was required to be served under paragraph 3(c),

a notice stating the decision and, in the case of the notice served on the applicant, stating also the reasons for the decision except any reason which the OGA considers that it would be against the national interest to state.

(2) Where the OGA decides to issue a works authorisation in consequence of an application it shall—

(a) serve notice of the decision on—

(i) the applicant;

(ii) each person mentioned in sub-paragraph (1)(b); and

(iii) any other person who made representations as mentioned in paragraph 7(b)(ii) or (iii); and

(b) publish a copy of the notice in such manner as it considers appropriate.

9

(1) Sub-paragraphs (2) and (3) apply where the OGA issues a works authorisation.

(2) The OGA shall serve on the persons on whom notice in respect of the authorisation was required to be served by paragraph 8(2)(a)(ii) and (iii) a notice stating that the authorisation has been issued and containing—

(a) the name and address of the person to whom it was issued;

(b) such particulars as the OGA considers appropriate of—

(i) the route of the pipeline;

(ii) its authorised capacity;

(iii) the things authorised to be conveyed by it; and

(iv) the persons authorised to use it; and

(3) The OGA shall publish a copy of the notice in such manner as it considers appropriate.

Part II — Other authorisations

10

Where the OGA issues an authorisation other than a works authorisation, it shall publish, in such manner as it considers appropriate, a notice stating that the authorisation has been issued and containing—

(a) the name and address of the person to whom it was issued;

(b) such particulars as the OGA considers appropriate of—

(i) the route and capacity of the relevant pipeline;

(ii) the things authorised to be conveyed by it; and

(iii) the persons authorised to use it; and

SCHEDULE 3

Part I — General

1

(1) The repeal (or revocation) and re-enactment of provisions in this Act does not affect the continuity of the law.

(2) Any subordinate legislation made or other thing done, or having effect as if made or done, under or for the purposes of any provision repealed, or revoked, and re-enacted by this Act shall, if in force or effective immediately before the commencement of the corresponding provision of this Act, have effect thereafter as if made or done under or for the purposes of that corresponding provision.

(3) Any reference (express or implied) in this Act or any other enactment or in any instrument or document—

(a) to any provision of this Act, or

(b) to things done or falling to be done under or for the purposes of any provision of this Act,

shall (so far as the context permits) be construed as including, in relation to times, circumstances or purposes in relation to which the corresponding provision repealed, or revoked, by this Act had effect, a reference—

(i) to that corresponding provision, or

(ii) to things done or falling to be done under or for the purposes of that corresponding provision,

as the case may be.

(4) Any reference (express or implied) in any enactment or in any instrument or document—

(a) to any provision repealed, or revoked, and re-enacted by this Act, or

(b) to things done or falling to be done under or for the purposes of any such provision,

shall (so far as the context permits) be construed as including, in relation to times, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference—

(i) to that corresponding provision, or

(ii) to things done or falling to be done under or for the purposes of that corresponding provision,

as the case may be.

(5) Without prejudice to the generality of sub-paragraph (4), where a power conferred by an Act is expressed to be exercisable in relation to enactments contained in Acts passed before or in the same Session as the Act conferring the power, the power is also exercisable in relation to provisions of this Act which reproduce such enactments.

(6) Sub-paragraphs (1) to (5) have effect instead of section 17(2) of the Interpretation Act 1978 (but are without prejudice to any other provision of that Act).

2

The repeal by this Act of an enactment previously repealed subject to savings does not affect the continued operation of those savings.

Part II — Specific provisions

Property in petroleum

3

The repeal by this Act of section 1(1) of the Petroleum (Production) Act 1934 does not affect the vesting in Her Majesty of property in petroleum which is so vested immediately before the commencement of this Act.

Existing licences

4

Nothing in section 2 or 3 shall be taken to prejudice any right conferred by any licence granted under section 2 of the Petroleum (Production) Act 1934 which is in force immediately before the commencement of this Act so long as the licence remains in force.

5

(1) Nothing in this Act affects the validity of the licence granted on 26th March 1923 under the Petroleum (Production) Act 1918 to the Duke of Devonshire relating to an area near Hardstoft in the county of Derbyshire.

(2) Without prejudice to the generality of paragraph 1(2), that licence shall, if in force immediately before the commencement of this Act, have effect as if granted under this Act.

(3) So long as that licence remains in force, section 2 shall not apply to petroleum which at the commencement of the Petroleum (Production) Act 1934 might lawfully be got under that licence.

6

(1) Where, immediately before the commencement of this Act—

(a) a person is exercising a function of a kind mentioned in clause 22 of the clauses set out in Part II of Schedule 2, or Part II of Schedule 3, to the Petroleum and Submarine Pipe-lines Act 1975 in connection with a licence granted under section 2 of the Petroleum (Production) Act 1934; and

(b) by virtue of section 19(6) of the Petroleum and Submarine Pipe-lines Act 1975, he is deemed to be approved by the Secretary of State as respects that function in connection with that licence,

he shall continue to be deemed to be so approved.

(2) Any act or omission which occurred at a time before a licence was altered by virtue of section 18 of the Petroleum and Submarine Pipe-lines Act 1975 shall not be treated as contravening the provisions of the licence as so altered or as authorising the revocation of the licence if at that time it did not contravene the provisions of the licence or authorise the revocation of it.

7

Without prejudice to paragraph 1, any reference in any enactment to a licence under the Petroleum (Production) Act 1934 (or under section 2 of that Act) shall (except where the context otherwise requires) include a reference to a licence granted, or treated as granted, under section 3 of this Act.

8

(1) In relation to any time after the commencement of this Act, section 1 of the Petroleum Royalties (Relief) Act 1983 and sections 1 and 2 of the Petroleum Royalties (Relief) and Continental Shelf Act 1989 shall have effect as if each reference (whether direct or indirect) in any of those provisions to model clauses set out in—

(a) the Petroleum and Submarine Pipe-lines Act 1975; or

(b) regulations made under section 6 of the Petroleum (Production) Act 1934,

were a reference to the corresponding model clauses set out in the order under section 5.

(2) This paragraph is without prejudice to the generality of section 5(10).

Submarine pipelines: safety regulations etc.

9

Any reference in—

(a) section 20 to Part III of this Act; or

(b) section 22 or 23 to regulations made under Part III of this Act,

includes a reference to regulations made under section 26 of the Petroleum and Submarine Pipe-lines Act 1975 which are in force immediately before the commencement of this Act.

10

Without prejudice to the generality of paragraph 2, the repeal of Part III of the Petroleum and Submarine Pipe-lines Act 1975 shall not affect any instrument to the extent that, immediately before the commencement of this Act, it applies section 26 of the Petroleum and Submarine Pipe-lines Act 1975.

11

(1) The substitution by this Act of paragraph (b) of section 1(3) of the Offshore Safety Act 1992 and the repeal by this Act of the reference in paragraph (c) of that provision to section 11(2)(a) of the Petroleum Act 1987 so far as relating to safety requirements shall not affect the power conferred by section 1(2)(b) of that Act of 1992.

(2) The substitution by this Act of paragraph (b) of Article 3(3) of the Offshore, and Pipelines, Safety (Northern Ireland) Order 1992 and the repeal by this Act of the reference in paragraph (c) of that provision to section 11(2)(a) of the Petroleum Act 1987 so far as relating to safety requirements shall not affect the power conferred by Article 3(2)(b) of that Order.

Submarine pipelines: authorisations granted before 1st October 1982

12

Where, immediately before the commencement of this Act, an authorisation granted before 1st October 1982 under Part III of the Petroleum and Submarine Pipe-lines Act 1975 is in force in relation to any pipeline, that pipeline shall not be regarded for the purposes of section 18(6) to (8) or 19(1) as comprising any such associated apparatus as is mentioned in section 26(1)(b).

Fatal Accidents Act 1976: deaths before 1st September 1976

13

The reference in section 23(2)(a) to the Fatal Accidents Act 1976 includes a reference to the Fatal Accidents Act 1846.

SCHEDULE 4

The Mining Industry Act 1926 (c. 28)

1

At the end of section 23 of the Mining Industry Act 1926 (facilities to be given to National Environment Research Council) there shall be added—

(6) In subsection (1) above, the expression “minerals” includes petroleum within the meaning of Part I of the Petroleum Act 1998.

The Continental Shelf Act 1964 (c. 29)

2

(1) The Continental Shelf Act 1964 shall be amended as follows.

(2) In section 1 (exploration and exploitation of continental shelf), subsection (3) and, in subsection (8), the words from “and “petroleum”” to the end shall be omitted.

(3) In ... section 7 (radioactive substances) for “section 23 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 11 of the Petroleum Act 1998 ”.

(4) At the end of section 8 (submarine cables and pipe-lines) there shall be added—

(1A) It is hereby declared that the reference in subsection (1) of this section to pipe-lines under the high seas includes pipe-lines under the territorial sea adjacent to the United Kingdom.

The Miscellaneous Financial Provisions Act 1968 (c. 75)

3

In section 2 of the Miscellaneous Financial Provisions Act 1968 (Northern Ireland and Isle of Man shares of revenue from continental shelf), in subsection (5) for the words following “under” there shall be substituted “ section 3 of the Petroleum Act 1998 by virtue of subsection (2)(b) of that section ”.

The Prevention of Oil Pollution Act 1971 (c. 60)

4

For section 23 of the Prevention of Oil Pollution Act 1971 there shall be substituted—

(23) The Secretary of State may exempt any discharge of, or of a mixture containing, oil from any of the provisions of this Act or of any regulations made thereunder, either absolutely or subject to such conditions as he thinks fit.

The Finance Act 1973 (c. 51)

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Offshore Petroleum Development (Scotland) Act 1975 (c. 8)

6

In section 20 of the Offshore Petroleum Development (Scotland) Act 1975 (short title, interpretation and extent), in the definition of “petroleum” in subsection (2), for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Oil Taxation Act 1975 (c. 22)

7

(1) The Oil Taxation Act 1975 shall be amended as follows.

(2) In section 1 (petroleum revenue tax), in subsection (1) for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

(3) In section 12 (interpretation of Part I), in the definition of “licence” in subsection (1), for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

(4) In section 21 (citation, interpretation and construction), subsection (5) shall cease to have effect.

(5) In Schedule 1 (determination of oil fields), in paragraph 1(2)(a) for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

(6) In Schedule 2 (management and collection of petroleum revenue tax), in paragraph 2(2)(c) for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

(7) In Schedule 3 (petroleum revenue tax: miscellaneous provisions), in paragraph 4 for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Sex Discrimination Act 1975 (c. 65)

8

In section 10 of the Sex Discrimination Act 1975 (employment at establishment in Great Britain), in subsection (5)—

(a) for the words from “exploration” to “natural resources” there shall be substituted “ any activity within section 11(2) of the Petroleum Act 1998 ”; and

(b) after “1964” there shall be inserted “ or specified under section 10(8) of the Petroleum Act 1998 ”.

The Fatal Accidents and Sudden Deaths Inquiry (Scotland) Act 1976 (c. 14)

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Fair Employment (Northern Ireland) Act 1976 (c. 25)

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Race Relations Act 1976 (c. 74)

11

In the Race Relations Act 1976, in sections 8(5) (employment at establishment in Great Britain) and 9(3) (exception for seamen recruited abroad)—

(a) for the words from “exploration” to “natural resources” there shall be substituted “ any activity within section 11(2) of the Petroleum Act 1998 ”; and

(b) after “1964” there shall be inserted “ or specified under section 10(8) of the Petroleum Act 1998 ”.

The Energy Act 1976 (c. 76)

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Sex Discrimination (Northern Ireland) Order 1976 (S.I. 1976/1042 (N.I. 15))

13

In Article 13(5) of the Sex Discrimination (Northern Ireland) Order 1976 (employment at establishment in Northern Ireland)—

(a) for the words from “exploration” to “natural resources” there shall be substituted “ any activity within section 11(2) of the Petroleum Act 1998 ”; and

(b) after “1964” there shall be inserted “ or specified under section 10(8) of the Petroleum Act 1998 ”.

The Patents Act 1977 (c. 37)

14

In section 132 of the Patents Act 1977 (application of Act), in subsection (4)—

(a) for “section 22(5) of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 10(8) of the Petroleum Act 1998 ”; and

(b) for “section 23(2)” there shall be substituted “ section 11(2) ”.

The Gas Levy Act 1981 (c. 3)

15

In section 1 of the Gas Levy Act 1981 (gas levy), in subsection (3) for the definition of “petroleum production licence” there shall be substituted—

“petroleum production licence” means a licence granted under section 3 of the Petroleum Act 1998;

The Finance Act 1981 (c. 35)

16

In section 118 of the Finance Act 1981 (licence payments other than royalties), in subsection (2)(c) for “section 41(3) of the Petroleum and Submarine Pipe-lines Act 1975” there shall be substituted “ section 6(1) of the Petroleum Act 1998 ”.

The Civil Jurisdiction and Judgments Act 1982 (c. 29)

17

In the Civil Jurisdiction and Judgments Act 1982, in—

(a) paragraph 9 of Schedule 5 (proceedings excluded from Schedule 4); and

(b) paragraph 10 of Schedule 9 (proceedings excluded from Schedule 8),

for “section 23 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 11 of the Petroleum Act 1998 ”.

The Petroleum Royalties (Relief) Act 1983 (c. 59)

18

In section 1 of the Petroleum Royalties (Relief) Act 1983 (royalty exemption for petroleum from certain new offshore fields), in the definition of “petroleum” in subsection (3), for “the said Act of 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Telecommunications Act 1984 (c. 12)

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Food and Environment Protection Act 1985 (c. 48)

20

After section 7 of the Food and Environment Protection Act 1985 there shall be inserted—

(7A) Nothing in this Part of this Act 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 the Petroleum Act 1998) is in force; or (b) for the purpose of establishing or maintaining an offshore installation within the meaning of Part IV of that Act.

The Oil and Pipelines Act 1985 (c. 62)

21

In section 6 of the Oil and Pipelines Act 1985 (interpretation), for the definition of “petroleum” there shall be substituted—

“petroleum” has the same meaning as in Part I of the Petroleum Act 1998;

The Gas Act 1986 (c. 44)

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Petroleum Act 1987 (c. 12)

23

In section 24 of the Petroleum Act 1987 (safety zones: supplementary), in subsection (1)(b) for “section 33 of the Petroleum and Submarine Pipe-lines Act 1975” there shall be substituted “ section 26 of the Petroleum Act 1998 ”.

The Territorial Sea Act 1987 (c. 49)

24

In section 2 of the Territorial Sea Act 1987 (enactments and instruments not affected), in subsection (4)—

(a) in paragraph (a), after “1934” there shall be inserted “ or section 4 of the Petroleum Act 1998 ”; and

(b) in paragraph (b), after “1934” there shall be inserted “ or Part I of the said Act of 1998 ” and for “that section” there shall be substituted “ either of those sections ”.

The Income and Corporation Taxes Act 1988 (c. 1)

25

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Petroleum Royalties (Relief) and Continental Shelf Act 1989 (c. 1)

26

In section 1 of the Petroleum Royalties (Relief) and Continental Shelf Act 1989 (royalty exemption: Southern Basin and landward areas), in the definition of “petroleum” in subsection (3), for “the said Act of 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Capital Allowances Act 1990 (c. 1)

27

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Food Safety Act 1990 (c. 16)

28

In section 58 of the Food Safety Act 1990 (territorial waters and the continental shelf)—

(a) in subsection (2) for “section 23 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 11 of the Petroleum Act 1998 ”;

(b) in the definition of “installation” in subsection (4), for “section 23” there shall be substituted “ section 11 ”.

The Aviation and Maritime Security Act 1990 (c. 31)

29

In section 14 of the Aviation and Maritime Security Act 1990 (ancillary offences), in subsection (3) for “section 22 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 10 of the Petroleum Act 1998 ”.

30

In section 120 of the Social Security Contributions and Benefits Act 1992 (employment at sea: continental shelf operations), in subsection (2) for “subsection (6) of section 23 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ subsection (8) of section 11 of the Petroleum Act 1998 ”.

31

In section 166 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (special classes of persons), in subsection (3) for “section 23 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 11 of the Petroleum Act 1998 ”.

The Taxation of Chargeable Gains Act 1992 (c. 12)

32

(1) The Taxation of Chargeable Gains Act 1992 shall be amended as follows.

(2) In section 193 (roll-over relief not available for gains on oil licences), in subsection (1) for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

(3) In section 196 (interpretation of sections 194 and 195), in the definitions of “oil” and “overseas petroleum” in subsection (5), for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

(4) In Schedule 3 (assets held on 31st March 1982), in paragraph 7(2)(c) for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Offshore Safety Act 1992 (c. 15)

33

(1) The Offshore Safety Act 1992 shall be amended as follows.

(2) In section 1 (application of Part I of Health and Safety at Work etc. Act 1974 for offshore purposes)—

(a) in subsection (3), for paragraph (b) there shall be substituted—

(b) sections 20 and 25 of the Petroleum Act 1998;

,and in paragraph (c) the words from “section” to “requirements and”shall be omitted;

(b) in subsection (4), for the definitions of “pipe-line” and “pipe-line works” there shall be substituted—

“pipe-line” means, subject to subsection (4A), a controlled pipeline within the meaning of Part III of the Petroleum Act 1998; and “pipe-line works” means works of any of the following kinds, namely— (a) assembling or placing a pipe-line or length of pipe-line; (b) inspecting, testing, maintaining, adjusting, repairing, altering or renewing a pipe-line or length of pipe-line; (c) changing the position of or dismantling or removing a pipe-line or length of pipe-line; (d) opening the bed of the sea for the purposes of works mentioned in paragraphs (a) to (c), tunnelling or boring for those purposes and other works needed for or incidental to those purposes; (e) works for the purpose of determining whether a 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.

;

(4A) In this section “pipe-line” does not include— (a) any pipe-line so far as it forms part of the equipment of a vessel or vehicle; or (b) any apparatus and works associated with a pipe or system of pipes and prescribed for the purpose of this paragraph by regulations made by the Secretary of State. (4B) A statutory instrument containing regulations made by virtue of subsection (4A) shall be subject to annulment in pursuance of a resolution of either House of Parliament; and section 25 of the Petroleum Act 1998 shall apply in relation to any such regulations as it applies in relation to regulations under section 20 of that Act.

; and

(d) in subsection (5), paragraph (b) and, in paragraph (c), the words “16(1) or” shall be omitted and at the end of paragraph (c) there shall be inserted—

; or (d) section 14(2) or 45 of the Petroleum Act 1998,

(3) In section 3 (consequential provisions), in subsections (2)(b) and (4) for “section 2 of the Petroleum (Production) Act 1934” there shall be substituted “ section 3 of the Petroleum Act 1998 ”.

(4) In section 5 (directions for preserving security of petroleum and petroleum products), in the definition of “petroleum” in subsection (7), for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52)

34

(1) Section 287 of the Trade Union and Labour Relations (Consolidation) Act 1992 (offshore employment) shall be amended as follows.

(2) For subsection (1) there shall be substituted—

(1) In this Act “offshore employment” means employment for the purposes of— (a) any activities in the territorial sea adjacent to the United Kingdom, and (b) any such activities as are mentioned in section 11(2) of the Petroleum Act 1998 in waters within subsection (8)(b) or (c) of that section.

(3) Subsection (5) shall be omitted.

The Offshore, and Pipelines, Safety (Northern Ireland) Order 1992 (S.I. 1992/1728 (N.I. 17))

35

In Article 3 of the Offshore, and Pipelines, Safety (Northern Ireland) Order 1992 (application of Part II of the Health and Safety at Work (Northern Ireland) Order 1978 for offshore purposes)—

(a) in paragraph (3), for sub-paragraph (b) there shall be substituted—

(b) sections 20 and 25 of the Petroleum Act 1998;

, and in sub-paragraph (c) the words from “section” to “requirements and” shall be omitted;

(b) in paragraph (4), for the definitions of “pipe-line” and “pipe-line works” there shall be substituted—

“pipe-line” means, subject to paragraph (4A), a controlled pipeline within the meaning of Part III of the Petroleum Act 1998; and “pipe-line works” means works of any of the following kinds, namely— (a) assembling or placing a pipe-line or length of pipe-line; (b) inspecting, testing, maintaining, adjusting, repairing, altering or renewing a pipe-line or length of pipe-line; (c) changing the position of or dismantling or removing a pipe-line or length of pipe-line; (d) opening the bed of the sea for the purposes of works mentioned in paragraphs (a) to (c), tunnelling or boring for those purposes and other works needed for or incidental to those purposes; (e) works for the purpose of determining whether a 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.

;

(4A) Subsections (4A) and (4B) of section 1 of the Offshore Safety Act 1992 apply in relation to the definition of “pipe-line” in paragraph (4) as they apply in relation to the definition of “pipe-line” in subsection (4) of that section but as if the reference in subsection (4A) to that section were a reference to this Article.

; and

(d) in paragraph (5), sub-paragraph (b) and, in sub-paragraph (c), the words “16(1) or” shall be omitted and at the end of sub-paragraph (c) there shall be inserted—

; or (d) section 14(2) or 45 of the Petroleum Act 1998,

The Finance Act 1993 (c. 34)

36

In section 94A of the Finance Act 1993 (parts of trades: petroleum extraction companies), in subsection (3)(a) for “the Petroleum (Production) Act 1934” there shall be substituted “ Part I of the Petroleum Act 1998 ”.

The Pension Schemes Act 1993 (c. 48)

37

In section 165 of the Pension Schemes Act 1993 (application of certain provisions to cases with foreign element), in the definition of “continental shelf operations” in subsection (8), for “subsection (6) of section 23 of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ subsection (8) of section 11 of the Petroleum Act 1998 ”.

The Coal Industry Act 1994 (c. 21)

38

(1) The Coal Industry Act 1994 shall be amended as follows.

(2) In section 3 (duties of the Coal Authority with respect to property), in subsection (6) for “section 2 of the Petroleum (Production) Act 1934” there shall be substituted “ section 3 of the Petroleum Act 1998 ”.

(3) In section 9 (exploitation rights: oil and gas)—

(a) in subsection (1) for “section 10(2) of the Petroleum (Production) Act 1934” there shall be substituted “ section 9(1) of the Petroleum Act 1998 ”;

(b) in subsection (1)(b) for “section 2 of that Act of 1934” there shall be substituted “ section 3 of that Act of 1998 ”; and

(c) in subsection (4) after “section 2 of the Petroleum (Production) Act 1934” there shall be inserted “ or section 3 of the Petroleum Act 1998 ”.

(4) In section 57 (public access to information held by the Coal Authority), in subsection (4)(a)(ii) for “section 2 of the Petroleum (Production) Act 1934” there shall be substituted “ section 3 of the Petroleum Act 1998 ”.

The Merchant Shipping Act 1995 (c. 21)

39

In section 293 of the Merchant Shipping Act 1995 (functions of Secretary of State in relation to marine pollution), in the definition of “pipeline” in subsection (5), for “the Petroleum and Submarine Pipelines Act 1975” there shall be substituted “ the Petroleum Act 1998 ”.

The Employment Rights Act 1996 (c. 18)

40

(1) Section 201 of the Employment Rights Act 1996 shall be amended as follows.

(2) For subsection (1) there shall be substituted—

(1) In this section “offshore employment” means employment for the purposes of— (a) any activities in the territorial sea adjacent to the United Kingdom, or (b) any such activities as are mentioned in section 11(2) of the Petroleum Act 1998 in waters within subsection (8)(b) or (c) of that section.

(3) Subsection (5) shall be omitted.

The Race Relations (Northern Ireland) Order 1997 (S.I. 1997/869 (N.I. 6))

41

In Article 69(2) of the Race Relations (Northern Ireland) Order 1997 (power to amend certain provisions of Order)—

(a) in sub-paragraph (a) for “section 23(2) of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 11(2) of the Petroleum Act 1998 ”; and

(b) in sub-paragraph (b) for “section 22(5) of the Oil and Gas (Enterprise) Act 1982” there shall be substituted “ section 10(8) of the Petroleum Act 1998 ”.

SCHEDULE 5

Part I — Repeals

Part II — Revocations

Rights to petroleum vested in Her Majesty.

17A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17C

(1) Section 17D applies to an offshore gas storage facility unless, or except to the extent that, its capacity is exempt under this section .

(2) A person who is or expects to be an owner of an offshore gas storage facility may apply in writing to the Director for an exemption with respect to the facility .

(3) An exemption shall be given in writing and may be given—

(a) so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b) unconditionally or subject to such conditions as the Director considers appropriate.

(i) in the case of a facility other than a new facility, in relation to the whole of the capacity of the facility; or

(ii) in the case of a new facility, in relation to the whole of the capacity of the facility or any significant increase in the capacity of the facility.

(4) An exemption may contain provision for its revocation.

(5) The Authority shall give an exemption with respect to a facility (other than a new facility) where it is satisfied that use of the facility by other persons is not necessary for the operation of an economically efficient gas market.

(5A) The Authority shall give an exemption with respect to a new facility where it is satisfied that either—

(a) use of the facility by other persons is not necessary for the operation of an economically efficient gas market; or

(b) the requirements of subsection (5C) are met.

(5B) In respect of a facility which is or is to be modified to provide for a significant increase in its capacity, an exemption by virtue of subsection (5A)(b) may only be given in relation to that increase in its capacity.

(5C) The requirements of this subsection are that—

(a) the facility or (as the case may be) the significant increase in its capacity will promote security of supply;

(b) the level of risk is such that the investment to construct the facility or (as the case may be) to modify the facility to provide for a significant increase in its capacity would not be or would not have been made without the exemption;

(c) the facility is or is to be owned by a person other than the gas transporter who operates or will operate the pipeline system connected or to be connected to the facility;

(d) charges will be levied on users of the facility or (as the case may be) the increase in its capacity;

(e) the exemption will not be detrimental to competition, the operation of an economically efficient gas market or the efficient functioning of the pipeline system connected or to be connected to the facility; and

(f) the Commission of the European Communities is or will be content with the exemption.

(5D) Subject to subsection (5E), an exemption may not be given by virtue of subsection (5A)(b) more than once in respect of the same facility.

(5E) Subsection (5D) does not prevent a further exemption being given by virtue of subsection (5A)(b) in respect of a facility if—

(a) the facility is or is to be modified to provide for a significant increase in its capacity

(b) the exemption has effect only in relation to that increase in its capacity; and

(5F) The Authority shall publish its decision to give or refuse to give an exemption together with the reasons for its decision in such manner as it considers appropriate.

(7) In this section and sections 17D and 17E—

(a) “the Authority” means the Gas and Electricity Markets Authority;

(b) “owner”, in relation to an offshore gas storage facility, includes any person occupying or having control of the facility.

17D

(1) The owner of an offshore gas storage facility to which this section applies (a “relevant facility”)—

(a) shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have gas stored in the facility on that person’s behalf; and

(b) shall publish any changes to the published conditions as soon as they become effective.

(2) In subsection (1) “year” means any year ending with 9th August.

(3) The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have gas stored in the facility.

(4) Any person who seeks a right to have gas stored on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5) An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6) Such a notice shall, in particular, specify—

(a) the period during which the gas is to be stored in the facility;

(b) the kind of gas to be stored (which must be of, or similar to, the kind which the facility is designed to store); and

(7) Where an applicant gives a notice under subsection (5), he and the owner of the facility shall negotiate in good faith and endeavour to reach agreement on the application.

(8) If the owner and the applicant do not reach any such agreement, the applicant may apply to the Director for a notice under subsection (11) securing to the applicant the right specified in the notice given under subsection (5).

(9) The Director shall not entertain an application under subsection (8) unless he is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (7).

(10) Where a person applies to the Director under subsection (8) and the Director is satisfied as mentioned in subsection (9), the Director shall—

(a) give notice to the owner of the facility and the applicant that he proposes to consider the application; and

(b) after the expiry of 21 days beginning with the date on which notice under paragraph (a) was served, but before considering the application, give them an opportunity of being heard with respect to the application.

(11) Where the Director is satisfied that, if he served a notice under this subsection, the relevant facility in question could be operated in accordance with the notice without prejudicing its efficient operation for the purpose of storing, on behalf of its owner, the quantities of gas which the owner requires or may reasonably be expected to require, the Director may serve such a notice on the owner and the applicant.

(12) A notice under subsection (11) may contain such provisions as the Director considers appropriate for any of the following purposes—

(a) for securing to the applicant the right to have stored in the facility, for the period specified in the notice and in the quantities so specified or determined by or under the notice, gas which is of a kind so specified;

(b) to secure that the exercise of the right is not prevented or impeded;

(d) to secure to the applicant such ancillary or incidental rights as may be necessary or expedient (which may, in particular, include a right to have a pipeline of his connected to the facility by the owner).

(13) A notice under subsection (11) may also authorise the owner to recover from the applicant payments by way of consideration for any right mentioned in subsection (12)(a) or (d) of amounts specified in the notice or determined in accordance with the notice.

17E

(1) For the purpose of considering an application under section 17D(8), the Director may by notice require the owner to provide him with accounting information and details of the main commercial terms of any significant transactions with associated undertakings.

(2) Owners of relevant facilities shall keep their internal accounts in such manner as will enable them to provide accounting information if required to do so by notice under subsection (1).

(3) The Director shall not disclose to any person information obtained under subsection (1) without the consent of the person by or on behalf of whom it was provided, unless he is required to do so by virtue of any obligation imposed on him by or under any enactment.

(4) Any reference in this section to a right to have gas or gas of any kind stored in a relevant facility includes a reference to a right to introduce into, or take out of, such a facility gas or gas of that kind.

(5) In section 17D “main commercial conditions” means—

(a) such information as would enable a potential applicant for a right to have gas stored in a relevant facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;

(b) the other significant terms on which such a right would be granted; and

(6) In this section—

“accounting information” means such accounting records as would be required by section 386 of the Companies Act 2006 in respect of the storage activities undertaken by an owner of a relevant facility, if those activities were the only business undertaken by the owner and the owner were a person to whom that section applied; and

“significant transaction” means—any transaction which relates to rights to have gas stored in a relevant facility; orany other transaction which is of a description specified by the Director from time to time by notice.

(7) For the purposes of this section an undertaking is an associated undertaking of another undertaking if one of the undertakings has control of the other, or both undertakings are under the control of the same person or persons; and sections 450 and 451(1) to (3) of the Corporation Tax Act 2010 shall apply with any necessary modifications for the purposes of this subsection as they apply for the purposes of Part 10 of that Act.

17F

(1) This section applies to controlled petroleum pipelines in, under or over the territorial sea adjacent to Northern Ireland .

(2) Any person who seeks a right to have things conveyed by a controlled petroleum pipeline of which he is not the owner (“the applicant”) shall, before making an application to the OGA under subsection (5), apply to the owner of the pipeline for the right.

(3) An application under subsection (2) shall be made by giving notice to the owner specifying what is being sought.

(4) Such a notice shall, in particular, specify—

(a) the kind of things to be conveyed (which must be of a kind the pipeline is designed to convey); and

(b) the quantities to be conveyed.

(5) If the owner and the applicant do not reach agreement on the application, the applicant may apply to the OGA for a notice under subsection (9) securing to the applicant the right to have conveyed by the pipeline in respect of which he has made an application to the owner under subsection (2) the quantities specified in the notice under subsection (3) of things of a kind so specified.

(6) The OGA shall not entertain an application under subsection (5) unless it is satisfied that the parties have had a reasonable time in which to reach agreement between themselves on the application under subsection (2).

(7) Where a person applies to the OGA under subsection (5) and the OGA is satisfied as mentioned in subsection (6), the OGA shall—

(a) give notice to the owner of the pipeline and the applicant that it proposes to consider the application; and

(b) after the expiry of 21 days beginning with the date on which notice under paragraph (a) was served, but before considering the application, give them an opportunity of being heard with respect to the application.

(8) When considering the application, the OGA shall (so far as relevant) take into account—

(a) capacity which is or can reasonably be made available in the pipeline in question;

(b) any incompatibilities of technical specification which cannot reasonably be overcome;

(c) difficulties which cannot reasonably be overcome and which could prejudice the efficient, current and planned future production of petroleum;

(d) the owner’s reasonable needs for the transport and processing of petroleum;

(e) the interests of all users and operators of the pipeline;

(f) the need to maintain security and regularity of supplies of petroleum; and

(g) the number of parties involved in the dispute.

(9) Where the OGA is satisfied that, if it served a notice under this subsection, the pipeline in question could be operated in accordance with the notice without prejudicing its efficient operation for the purpose of conveying, on behalf of its owner, the quantities of permitted substances which the owner requires or may reasonably be expected to require, the OGA may serve such a notice on the owner and the applicant.

(10) A notice under subsection (9) may contain such provisions as the OGA considers appropriate for any of the following purposes—

(a) to secure to the applicant the right to have conveyed by the pipeline the quantities specified in the notice under subsection (3) of the things of a kind so specified;

(b) to secure that the exercise of the right is not prevented or impeded;

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