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 ”.

The Social Security Contributions and Benefits Act 1992 (c. 4)

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 ”.

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

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.

;

• (c) after subsection (4) there shall be inserted—

(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.

;

• (c) after paragraph (4) there shall be inserted—

(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.

• (c) so as to have effect—

• (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

• (c) no previous exemption has been given by virtue of subsection (5A)(b) in relation to that increase in its capacity.

• (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

• (c) the quantities of gas to be stored.

• (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;

• (c) to regulate the charges which may be made for the storage of gas by virtue of that right; and

• (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

• (c) such other information as the Director may from time to time specify by notice.

• (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;

• (c) to regulate the charges which may be made for the conveyance of things by virtue of the right; and

• (d) to secure to the applicant the right to have a pipeline of his connected to the pipeline by the applicant or owner.

• (11) A notice under subsection (9) may also authorise the owner to recover from the applicant payments by way of consideration for any right mentioned in subsection (10)(a) or (d) of amounts specified in the notice or determined in accordance with the notice.

17G

• (1) Where an application is made to the OGA under section 17F(5) in respect of a pipeline which is situated partly in, under or over the territorial sea adjacent to Northern Ireland and partly in a foreign sector of the continental shelf, the OGA shall consult the relevant authorities in the other country with respect to the application before considering it itself.

• (2) For the purpose of considering an application under section 17F(5), the OGA may by notice require the owner or the applicant to provide it with such information relevant to the application as may be specified or described in the notice.

• (3) The information mentioned in subsection (2) may, in particular, include financial information relevant to the owner’s or the applicant’s activities with respect to petroleum production projects and controlled petroleum pipelines.

• (4) The OGA shall not disclose to any person any information obtained under subsection (2) without the consent of the person by or on behalf of whom it was provided, unless it is required to do so by virtue of any obligation imposed on it by or under any enactment.

• (5) In section 17F(9), “permitted substances” means the things which may be conveyed by the pipeline in accordance with an authorisation (or, if no authorisation for the use of the pipeline is required by section 14(1), means the things which the pipeline is designed to convey).

• (6) Before serving a notice under section 15(6) on a person other than the holder of the relevant authorisation, the OGA shall give that person an opportunity to make applications under section 17F in respect of the proposed pipeline to which the authorisation relates; and section 17F and subsections (1) to (5) above shall have effect for this purpose as if references to a pipeline and the owner of it were references to the proposed pipeline and the proposed owner of it.

• (7) Before serving a notice under section 16(1) on a person other than the owner of the relevant pipeline, the OGA shall give that person particulars of the modifications which it proposes to specify in the notice and an opportunity to make applications under section 17F in respect of the pipeline; and section 17F and subsections (1) to (5) above shall have effect for this purpose as if references to a pipeline were references to the pipeline as it would be with those modifications.

• (8) The use of a pipeline by any person in accordance with a right secured to him by the OGA by virtue of section 17F is not a contravention of section 14(1); but a person to whom a right is so secured may not assign the right to any other person.

17H

• (1) The obligation to comply with any notice under section 17D(11) or with a notice given under subsection (6) of section 17GA in a case falling within subsection (7) of that section and the obligation to comply with any duty in section 17B(6) or section 17D(7) shall be duties a duty owed to any person who may be affected by a failure to comply with them it .

• (2) Where a duty is owed by virtue of subsection (1) to any person, any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

• (3) In any proceedings brought against a person in pursuance of subsection (2), it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the duty.

• (4) Compliance with the duties in sections 17B(1) and (3), 17D(1) and (3) and 17E(2) shall be enforceable by civil proceedings by the Secretary of State for an injunction or interdict or other appropriate relief or remedy.

Section 4A: supplementary provision

SCHEDULE

Editorial notes