Petroleum Act 1998

Type Public General Act
Publication 1998-06-11
Last updated 2023-12-26
State In force
Department Statute Law Database
articles Not indexed
Reform history JSON API
432

Words in s. 4(1A) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 15(2) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

433

Words in s. 4(1C) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 15(2) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

434

Words in s. 4(1B) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 15(2) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

437

Words in s. 4A(1) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 16(2) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

438

Words in s. 4A(3) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 16(4) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

439

Words in s. 4A(4)(5) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 16(6) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

440

Words in s. 4A(7) substituted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 16(7) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

441
443
444

Words in s. 4B(8) substituted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(5)(a) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

445

Words in s. 4B(8) substituted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(5)(b) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

446

Words in s. 4B(8) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(5)(c) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

447

Words in s. 4B(4)(a) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(2) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

448

Words in s. 4B(4)(b) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(2) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

449

Words in s. 4B(7)(a) omitted (1.10.2018) by virtue of Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(3)(a) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

450

S. 4B(7)(b) omitted (1.10.2018) by virtue of Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(3)(b) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

451

Words in s. 4B(9) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(6)(a) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

452

Words in s. 4B(9) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(6)(b) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

453

Words in s. 4B(10)(a) inserted (1.10.2018) by Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 17(8) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

454
455

Word in s. 7(2)(d)(i) omitted (1.10.2018) by virtue of Wales Act 2017 (c. 4), s. 71(4), Sch. 6 para. 18(a) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(b)

456

Ss. 8A(5)-(7) inserted (1.10.2018) by Wales Act 2017 (c. 4), ss. 23(4), 71(4) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(a)

457

S. 8A(1A)(aa) inserted (1.10.2018) by Wales Act 2017 (c. 4), ss. 23(2), 71(4) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(a)

458

S. 8A(2)(aa) inserted (1.10.2018) by Wales Act 2017 (c. 4), ss. 23(3), 71(4) (with Sch. 7 paras. 1, 6); S.I. 2017/1179, reg. 4(a)

466
467

Pt. 4 applied (with modifications) (26.12.2023) by 2008 c. 32, s. 30(1AA)(1AB) (as inserted by Energy Act 2023 (c. 52), ss. 95(3), 334(3)(b))

468

Words in s. 29(6) substituted (26.12.2023) by Energy Act 2023 (c. 52), ss. 95(9), 334(3)(b)

47A
  • (1) The matters to which the OGA may have regard, in exercising or performing the powers and duties conferred or imposed on it by or under this Act, include, in particular—
  • (a) activities in relevant waters for or in connection with the generation of electricity;
  • (aa) activities which are authorised by a licence under Chapter 2 or 3 of Part 1 of the Energy Act 2008 (gas importation and storage);
  • (b) proposals made by a person to carry on activities within paragraph (a) or (aa) ;
  • (c) the proposals that it appears to the OGA may be made in the future for the carrying on of such activities; and
  • (d) the likelihood that activities will in due course be carried on in accordance with proposals falling within paragraph (b) or (c).
  • (2) The reference in subsection (1) to activities in connection with the generation of electricity in relevant waters includes—
  • (a) the transmission, distribution and supply of the electricity generated; and
  • (b) the doing of anything (whether by way of investigations, trials or feasibility studies or otherwise) with a view to ascertaining whether activities in relevant waters for or in connection with the generation of electricity are, in a particular case, practicable or commercially viable, or both.
  • (2A) For the purposes of subsection (1)(aa), activities are to be regarded as activities authorised by a licence under Chapter 2 or 3 of Part 1 of the Energy Act 2008 if, by virtue of such a licence, they are activities which may be carried on only with the consent of the OGA or another person.
  • (3) In this section—
  • “distribution”, “generate”, “supply” and “transmission”, and cognate expressions, have the same meanings as in Part 1 of the Electricity Act 1989; and
  • “relevant waters” means—waters in or adjacent to the United Kingdom up to the seaward limits of the territorial sea; orwaters in a Renewable Energy Zone (within the meaning of Chapter 2 of Part 2 of the Energy Act 2004).

Notes:

Information

Notes:

17GA
  • (1) This section applies to any controlled petroleum pipeline which, under the terms of the Framework Agreement, is subject to a system whereby any terms or conditions on which persons who are not the owner of the pipeline are entitled to have things conveyed by it are determined according to the law of, or by the relevant authority of, the Kingdom of Norway.
  • (2) Where—
  • (a) under the terms of the Framework Agreement, any term or condition on which a person who is not the owner of a pipeline is entitled to have conveyed by the pipeline any petroleum originating wholly or partly from an area designated under section 1(7) of the Continental Shelf Act 1964 has been determined according to the law of, or by the relevant authority of, the Kingdom of Norway, and
  • (b) a dispute has arisen between the person mentioned in paragraph (a) and the owner as to whether the owner has complied with any term or condition so determined,

the person mentioned in paragraph (a) may apply to the OGA for a determination under subsection (6).

  • (3) An application under subsection (2) shall specify the terms and conditions in dispute and the applicant’s reasons for considering that the owner has failed to comply with them.
  • (4) The applicant shall give notice of the application to the owner of the pipeline.
  • (5) Where a person applies to the OGA under subsection (2), 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.
  • (6) The OGA shall determine whether or not the owner has complied with the terms and conditions in question, and shall give notice of that determination to the owner and the applicant.
  • (7) Where the OGA determines that the owner has not so complied, the notice shall state what the owner is required to do (or as the case may be, to refrain from doing) in order to comply with the terms and conditions in question.
  • (8) Where the Framework Agreement so requires, the OGA shall make its determination and issue the notice under subsection (6) jointly with the relevant authority of the Kingdom of Norway.
  • (9) In this section and section 17GB “the Framework Agreement” means the Framework Agreement concerning cross-boundary petroleum co-operation dated 4th April 2005 and made between the government of the United Kingdom and the government of the Kingdom of Norway.
17GB
  • (1) For the purpose of considering an application under section 17GA(2), 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.
  • (2) The OGA shall not disclose to any person any information obtained under subsection (1) without the consent of the person by or on behalf of whom it was provided, unless the disclosure is required by virtue of any obligation imposed ... by or under the Framework Agreement or by or under any enactment.
5A
  • (1) This section applies if—
  • (a) a person is (or two or more persons are) the licensee in respect of a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above (“the transferor”),
  • (b) the transferor transfers a right granted by the licence, or derived from a right so granted, to another person (“the transferee”) after commencement in circumstances where the consent of the appropriate authority is required for the transfer, and
  • (c) that consent is not obtained.
  • (2) The appropriate authority may, by notice given to the transferor and the transferee, direct that the right is to revert to the transferor from a date specified in the notice.
  • (3) The date specified must not be earlier than the date on which the notice is given.
  • (4) Before giving a notice to a person under subsection (2), the appropriate authority must—
  • (a) notify the person of the proposal to give the notice, and
  • (b) give the person a reasonable period within which to make written representations.
  • (5) The appropriate authority may not give a notice under subsection (2) after the end of the period of 3 months beginning with the date on which the appropriate authority learns of the transfer.
  • (6) In this section—
  • “commencement” means the time when this section comes into force;
  • “transfer” does not include a transfer by way of security for a loan.
5B
  • (1) The Commissioners for Her Majesty's Revenue and Customs may disclose to the appropriate authority information relating to the transfer of a right granted by a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above, or derived from a right so granted, for the purpose of enabling the appropriate authority to determine whether a transfer to which section 5A applies has taken place.
  • (2) This section applies despite any statutory or other restriction on the disclosure of information.
  • (3) Information disclosed under this section must not be further disclosed except—
  • (a) for the purpose mentioned in subsection (1), with the consent (which may be general or specific) of the Commissioners,
  • (b) in pursuance of an order of a court, or
  • (c) with the consent of each person to whom the information relates.
  • (4) A person who discloses information contrary to subsection (3) commits an offence if the identity of the person to whom the information relates—
  • (a) is specified in the disclosure, or
  • (b) can be deduced from it.
  • (5) It is a defence for a person charged with an offence under this section to prove that the person reasonably believed that—
  • (a) the disclosure was lawful, or
  • (b) the information had already and lawfully been made available to the public.
  • (6) A person guilty of an offence under this section is liable—
  • (a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum, or both, and
  • (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
5C
  • (1) No proceedings for an offence under section 5B may be instituted in England and Wales except by or with the consent of the Director of Public Prosecutions.
  • (2) No proceedings for an offence under section 5B may be instituted in Northern Ireland except—
  • (a) by the Commissioners for Her Majesty's Revenue and Customs, or
  • (b) with the consent of the Director of Public Prosecutions for Northern Ireland.
  • (3) In the application of section 5B to Northern Ireland the reference in section 5B(6)(a) to 12 months is to be read as a reference to 6 months.
  • (4) In the application of section 5B to England and Wales in relation to an offence committed before 2 May 2022 the reference in section 5B(6)(a) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

Acquisition of rights to use controlled petroleum pipelines.

Acquisition of rights to use controlled petroleum pipelines.

38A
  • (1) This section applies where any security for the performance of obligations under an approved abandonment programme has been provided by a person (“the security provider”) by way of a trust or other arrangements.
  • (2) Subsection (1) applies whether the security is provided before or after the programme is approved.
  • (3) In this section a reference to “the protected assets” is a reference to the security and any property or rights in which it consists.
  • (4) In this section “security” includes—
  • (a) a charge over a bank account or any other asset;
  • (b) a deposit of money;
  • (c) a performance bond or guarantee;
  • (d) an insurance policy;
  • (e) a letter of credit.
  • (5) The manner in which, and purposes for which, the protected assets are to be applied and enforceable (whether in the event of the security provider's insolvency or otherwise) is to be determined in accordance with the trust or other arrangements.
  • (6) For the purposes of subsection (5), no regard is to be had to so much of the Insolvency Act 1986, the Insolvency (Northern Ireland) Order 1989 or any other enactment or rule of law as, in its operation in relation to the security provider or any conduct of the security provider, would—
  • (a) prevent or restrict the protected assets from being applied in accordance with the trust or other arrangement, or
  • (b) prevent or restrict their enforcement for the purposes of being so applied.
  • (7) In subsection (6) “enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament or Northern Ireland legislation.

Section 17F: supplemental.

38B
  • (1) The Secretary of State may direct a security provider to publish specified information about the protected assets.
  • (2) A direction under this section may specify—
  • (a) the time when the information must be published, and
  • (b) the manner of publication.
  • (3) If a security provider fails to comply with a direction, the Secretary of State, or a creditor of the security provider, may make an application to the court under this section.
  • (4) If, on an application under this section, the court decides that the security provider has failed to comply with the direction, it may order the security provider to take such steps as the court directs for securing that the direction is complied with.
  • (5) In this section—
  • “court”—in relation to an application in England and Wales or Northern Ireland, means the High Court, andin relation to an application in Scotland, means the Court of Session;
  • “security provider” means a person who has provided security in relation to which section 38A applies;
  • “the protected assets”, in relation to a security provider, means the security, and any property or rights in which it consists.
45A
  • (1) This section applies in relation to a person who has drilled, or commenced drilling, a well in pursuance of a petroleum licence or a licence under section 4 of the Energy Act 2008 (gas storage and unloading licences).
  • (2) The appropriate authority may give a notice requiring the person—
  • (a) to provide specified information relating to the person's financial affairs, or
  • (b) to supply copies of specified documents, or documents of a specified description, relating to those affairs.
  • (3) A notice under subsection (2) must specify the time within which the information or documents must be provided.
  • (4) Subsection (5) applies if—
  • (a) the person fails to provide information or documents required by such a notice within the period specified in the notice, or
  • (b) on receiving information or documents required by a notice under subsection (2) the appropriate authority is not satisfied that the person will be capable of plugging and abandoning the well.
  • (5) Where this subsection applies the appropriate authority may give the person a notice, after consulting the Treasury, requiring the person to take the action specified in the notice within the time so specified.
  • (6) The appropriate authority may not give a notice to a person under subsection (5) without first giving the person an opportunity to make written representations as to whether the notice should be given.
  • (7) It is an offence for a person to fail to comply with a notice under subsection (2) or (5) unless it is proved that the person exercised due diligence to avoid the failure.
  • (8) A person guilty of an offence under this section is liable—
  • (a) on summary conviction, to a fine not exceeding the statutory maximum, or
  • (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
  • (9) Subject to subsection (9A), Section 41 (other than subsection (5)) applies in relation to prosecutions for offences under this section as it applies in relation to prosecutions for offences under Part 4.
  • (9A) Where an offence under this section relates to a notice given to a person who has drilled, or commenced drilling, a well in the Welsh onshore area in pursuance of a petroleum licence, subsection 41(1)(a) applies in relation to its prosecution as though each reference to “the Secretary of State” were a reference to “the Welsh Ministers”.
  • (10) In this section—
  • “appropriate authority” means— in relation to a person who has drilled, or commenced drilling, a well in the Scottish onshore area in pursuance of a petroleum licence, the Scottish Ministers; in relation to a person who has drilled, or commenced drilling, a well in the Welsh onshore area in pursuance of a petroleum licence, the Welsh Ministers; otherwise, the OGA;
  • “petroleum licence” means a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above;
  • “Scottish onshore area” has the meaning given in section 8A(3);
  • “well” includes a borehole.
  • “Welsh onshore area” has the meaning given in section 8A(5).

Notes:

Licences: further provisions.

Information

Information

Repayments for development.

Notes:

Repayments for development.

1.

This Table shows the derivation of the provisions of the Act.

Power to inspect plans of mines.

Supplementary.

Notes:

Supplementary.

Application of civil law.

Interpretation of Part II.

1.

This Table shows the derivation of the provisions of the Act.

PART 1A — Maximising economic recovery of UK petroleum

9A
  • (1) In this Part the “principal objective” is the objective of maximising the economic recovery of UK petroleum, in particular through—
  • (a) development, construction, deployment and use of equipment used in the petroleum industry (including upstream petroleum infrastructure), and
  • (b) collaboration among the following persons—
  • (i) holders of petroleum licences;
  • (ii) operators under petroleum licences;
  • (iii) owners of upstream petroleum infrastructure;
  • (iv) persons planning and carrying out the commissioning of upstream petroleum infrastructure.
  • (v) owners of relevant offshore installations.
  • (2) The OGA must produce one or more strategies for enabling the principal objective to be met.
  • (3) A strategy may relate to matters other than those mentioned in subsection (1)(a) and (b).
  • (4) For provision about producing and revising a strategy, see sections 9F and 9G.
9B

The OGA must act in accordance with the current strategy or strategies when—

  • (a) exercising functions under the other Parts of this Act (except Part 4),
  • (b) exercising functions under Part 4 ... ,
  • (c) exercising functions under Chapter 3 of Part 2 of the Energy Act 2011 (upstream petroleum infrastructure),
  • (ca) exercising functions under Part 2 of the Energy Act 2016,
  • (d) exercising any function or using any power under a petroleum licence, and
  • (e) exercising any other function or using any power—
  • (i) to provide advice or assistance to another person, or
  • (ii) to acquire, use or supply information,

for the purpose of enabling the principal objective to be met.

9C
  • (1) A person who is the holder of a petroleum licence must act in accordance with the current strategy or strategies when planning and carrying out activities as the licence holder.
  • (2) A person who is an operator under a petroleum licence must act in accordance with the current strategy or strategies when planning and carrying out activities as the operator under the licence.
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (4) A person must act in accordance with the current strategy or strategies when planning and carrying out the commissioning of upstream petroleum infrastructure.
  • (5) A person who is the owner of—
  • (a) a relevant offshore installation, or
  • (b) upstream petroleum infrastructure,

must act in accordance with the current strategy or strategies when planning and carrying out the activities mentioned in subsection (6).

  • (6) Those activities are—
  • (a) the person's activities as the owner of the installation or infrastructure (including the development, construction, deployment and use of the infrastructure or installation);
  • (b) the abandonment or decommissioning of the installation or infrastructure.
  • (7) For the purposes of subsection (5), planning the activities mentioned in subsection (6)(b) includes the preliminary stage of—
  • (a) deciding whether or when to proceed with the proposed abandonment or decommissioning, and
  • (b) considering alternative measures to abandonment or decommissioning such as re-use or preservation.
9D

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

9E
  • (1) This Part does not limit the exercise of the OGA's security and resilience functions.
  • (2) This Part is subject to the exercise of the security and resilience functions by the OGA.
  • (3) In this section “security and resilience function” means any function which relates to—
  • (a) the security of petroleum supplies, or
  • (b) the resilience of the petroleum industry.
9F
  • (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (2) After the first strategy has been produced, the OGA may—
  • (a) produce a new strategy, or
  • (b) revise a current strategy,

whenever the OGA thinks appropriate.

  • (3) The OGA must review each current strategy before the end of each relevant four year period.
  • (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (5) In this section “relevant four year period”, in relation to a current strategy, means a period of four years beginning with—
  • (a) the date on which the strategy was issued, or
  • (b) if later, the date on which the last review under subsection (3) was concluded.
9G
  • (1) Before—
  • (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (b) producing a new strategy, or
  • (c) revising a current strategy,

the OGA must prepare a draft of the strategy or revised strategy.

  • (2) The OGA must—
  • (a) consult such persons as the OGA thinks appropriate about the draft, and
  • (b) consider any representations made by them.
  • (3) If, after complying with that duty, the OGA decides to proceed with the draft (in its original form or with modifications), the OGA must send the draft to the Secretary of State.
  • (3A) The Secretary of State must either—
  • (a) lay a copy of the draft before each House of Parliament, or
  • (b) return the draft to the OGA and publish the Secretary of State's reasons for doing so.
  • (3B) The Secretary of State may return the draft to the OGA only if the Secretary of State thinks that—
  • (a) the OGA has failed to comply with subsection (2), or
  • (b) the strategy will not enable the principal objective to be met.
  • (4) Where a copy of the draft has been laid in accordance with subsection (3A)(a), the OGA may not take any further steps in relation to the draft if, within the 40 day period, either House resolves not to approve the draft (a “negative resolution”).
  • (5) If neither House passes a negative resolution, the OGA may issue the strategy or revised strategy in the form laid before Parliament.
  • (6) The strategy or revised strategy comes into force on the date specified by the OGA (which must not be before the date when it is issued).
  • (7) Subsection (4) does not prevent a new draft of a strategy or revised strategy from being laid before Parliament.
  • (8) In this section “40 day period”, in relation to the draft of a strategy or revised strategy, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or if the draft is not laid before each House on the same day, the later of the 2 days on which it is laid).
  • (9) For the purposes of calculating the 40 day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.
9H
  • (1) In this Part “upstream petroleum infrastructure” means anything that for the purposes of section 82(1) of the Energy Act 2011 is—
  • (a) a relevant upstream petroleum pipeline,
  • (b) a relevant oil processing facility, or
  • (c) a relevant gas processing facility,

if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got).

  • (2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath—
  • (a) the territorial sea adjacent to Great Britain, or
  • (b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.
  • (3) In this Part “owner”, in relation to upstream petroleum infrastructure, means—
  • (a) a person in whom the pipeline or facility is vested;
  • (b) a lessee and any person occupying or controlling the pipeline or facility; and
  • (c) any person who has the right to have things conveyed by the pipeline or processed by the facility.
9I

In this Part—

  • “current strategy”, in relation to any particular time, means a strategy under section 9A(2) in force at that time;
  • “offshore installation” has the same meaning as in Part 4 (see section 44);
  • “operator under a petroleum licence” means a person who is responsible for organising or supervising any of the operations of searching for, boring for, or getting UK petroleum in pursuance of the petroleum licence;
  • “owner”, in relation to a relevant offshore installation, has the meaning given in section 9HA;
  • “owner”, in relation to upstream petroleum infrastructure, has the meaning given in section 9H;
  • “petroleum” has meaning given in section 1;
  • “petroleum licence” means a licence granted under—section 3 of this Act, orsection 2 of the Petroleum (Production) Act 1934;
  • “principal objective” has the meaning given in section 9A;
  • “relevant offshore installation” has the meaning given in section 9HA;
  • “relevant UK waters” means—the territorial sea adjacent to the United Kingdom, andthe sea in any area designated under section 1(7) of the Continental Shelf Act 1964;
  • “submarine pipeline” has the meaning given in section 45;
  • “UK petroleum” means petroleum which for the time being exists in its natural condition in strata beneath relevant UK waters;
  • “upstream petroleum infrastructure” has the meaning given in section 9H.

Section 17D: supplemental.

Notes:

4A
  • (1) The OGA must not issue a well consent for a well situated in the English onshore area that is required by an onshore licence for England or Wales unless the well consent imposes—
  • (a) a condition which prohibits associated hydraulic fracturing from taking place in land at a depth of less than 1000 metres; and
  • (b) a condition which prohibits associated hydraulic fracturing from taking place in land at a depth of 1000 metres or more unless the licensee has the Secretary of State's consent for it to take place (a “hydraulic fracturing consent”).
  • (1A) The Welsh Ministers must not issue a well consent for a well situated in the Welsh onshore area that is required by an onshore licence for England or Wales unless the well consent imposes—
  • (a) a condition that prohibits associated hydraulic fracturing from taking place in land at a depth of less than 1000 metres; and
  • (b) a condition that prohibits associated hydraulic fracturing from taking place in land at a depth of 1000 metres or more unless the licensee has the Welsh Ministers' consent for it to take place (a “hydraulic fracturing consent”).
  • (2) A hydraulic fracturing consent is not to be issued unless an application for its issue is made by, or on behalf of, the licensee.
  • (3) Where an application is made to the Secretary of State, the Secretary of State may not issue a hydraulic fracturing consent unless the Secretary of State—
  • (a) is satisfied that—
  • (i) the conditions in column 1 of the following table are met, and
  • (ii) the conditions in subsection (6) are met, and
  • (b) is otherwise satisfied that it is appropriate to issue the consent.
  • (3A) Where an application is made to the Welsh Ministers, the Welsh Ministers may not issue a hydraulic fracturing consent unless—
  • (a) they are satisfied that—
  • (i) the conditions in column 1 of the following table are met, and
  • (ii) the conditions in subsection (6) are met, and
  • (b) they are otherwise satisfied that it is appropriate to issue the consent.
  • (4) The existence of a document of the kind mentioned in column 2 of the table in this section is sufficient for the Secretary of State or the Welsh Ministers to be satisfied that the condition to which that document relates is met.
  • (5) But the absence of such a document does not prevent the Secretary of State or the Welsh Ministers from being satisfied that that condition is met.
Column 1: conditions Column 1: conditions Column 2: documents
1 The environmental impact of the development which includes the relevant well has been taken into account by the local planning authority A notice given by the local planning authority that the environmental information was taken into account in deciding to grant the relevant planning permission
2 Appropriate arrangements have been made for the independent inspection of the integrity of the relevant well A certificate given by the Health and Safety Executive that it— (a) has received a well notification under regulation 6 of the Borehole Sites and Operations Regulations 1995, (b) has received the information required by regulation 19 of the Offshore Installations and Wells (Design and Construction, etc.) Regulations 1996, and (c) has visited the site of the relevant well
3 The level of methane in groundwater has, or will have, been monitored in the period of 12 months before the associated hydraulic fracturing begins An environmental permit has been given by the relevant environmental regulator which contains a condition that requires compliance with a waste management plan which provides for monitoring of the level of methane in groundwater in the period of 12 months before the associated hydraulic fracturing begins
4 Appropriate arrangements have been made for the monitoring of emissions of methane into the air An environmental permit which contains a condition requiring compliance with a waste management plan which provides for the monitoring of emissions of methane into the air for the period of the permit
5 The associated hydraulic fracturing will not take place within protected groundwater source areas A decision document given by the relevant environmental regulator (in connection with an environmental permit) which indicates that the associated hydraulic fracturing will not take place within protected groundwater source areas
6 The associated hydraulic fracturing will not take place within other protected areas A notice given by the local planning authority that the area in respect of which the relevant planning permission has been granted does not include any land which is within any other protected areas
7 In considering an application for the relevant planning permission, the local planning authority has (where material) taken into account the cumulative effects of— (a) that application, and (b) other applications relating to exploitation of onshore petroleum obtainable by hydraulic fracturing A notice given by the local planning authority that it has taken into account those cumulative effects
8 The substances used, or expected to be used, in associated hydraulic fracturing— (a) are approved, or (b) are subject to approval, by the relevant environmental regulator An environmental permit has been given by the relevant environmental regulator which contains a condition that requires substances used in associated hydraulic fracturing to be approved by that regulator
9 In considering an application for the relevant planning permission, the local planning authority has considered whether to impose a restoration condition in relation to that development A notice given by the local planning authority that it has considered whether to impose such a condition
10 The relevant undertaker has been consulted before grant of the relevant planning permission A notice given by the local planning authority that the relevant undertaker has been consulted
11 The public was given notice of the application for the relevant planning permission A notice given by the local planning authority which confirms that the applicant for the relevant planning permission has certified that public notification requirements, as set out in a development order, have been met
  • (6) The conditions mentioned in subsection (3)(a)(ii) are—
  • (a) that appropriate arrangements have been made for the publication of the results of the monitoring referred to in condition 4 in the table;
  • (b) that a scheme is in place to provide financial or other benefit for the local area.
  • (7) A hydraulic fracturing consent may be issued subject to any conditions thought to be appropriate by the Secretary of State or the Welsh Ministers.
  • (8) A breach of such a condition is to be treated as if it were a breach of a condition of a well consent.
4B
  • (1) “Associated hydraulic fracturing” means hydraulic fracturing of shale or strata encased in shale which—
  • (a) is carried out in connection with the use of the relevant well to search or bore for or get petroleum, and
  • (b) involves, or is expected to involve, the injection of—
  • (i) more than 1,000 cubic metres of fluid at each stage, or expected stage, of the hydraulic fracturing, or
  • (ii) more than 10,000 cubic metres of fluid in total.
  • (2) For the purposes of deciding the depth at which associated hydraulic fracturing is taking place in land—
  • (a) the depth of a point in land below surface level is the distance between that point and the surface of the land vertically above that point; and
  • (b) in determining what is the surface of the land, any building or other structure on the land, and any water covering the land, must be ignored.
  • (3) Subsections (1) and (2) apply for the purposes of section 4A and this section.
  • (4) The Secretary of State must, by regulations made by statutory instrument, specify—
  • (a) the descriptions of areas in the English onshore area which are “protected groundwater source areas”, and
  • (b) the descriptions of areas in the English onshore area which are “other protected areas”,

for the purposes of section 4A.

  • (5) A statutory instrument which contains regulations under subsection (4) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
  • (6) The Secretary of State must lay a draft of the first such regulations before each House of Parliament on or before 31 July 2015.
  • (7) The Secretary of State must consult—
  • (a) the Environment Agency before making any regulations under subsection (4)(a) ... ;
  • (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (7A) The Welsh Ministers may, by regulations made by statutory instrument, specify—
  • (a) the descriptions of areas in the Welsh onshore area that are “protected groundwater source areas”, and
  • (b) the descriptions of areas in the Welsh onshore area that are “other protected areas”,

for the purposes of section 4A.

  • (7B) A statutory instrument that contains regulations under subsection (7A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the National Assembly for Wales.
  • (7C) Before making regulations under subsection (7A)(a), the Welsh Ministers must consult the Natural Resources Body for Wales.
  • (8) These expressions have the meanings given—
  • “development order” has the meaning given in section 59 of the Town and Country Planning Act 1990;
  • “environmental permit” means a permit granted under regulation 13 of the Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154);
  • “hydraulic fracturing consent” has the meaning given in subsection (1)(b);
  • “licensee” means the holder of the onshore licence for England or Wales;
  • “local planning authority” means—the planning authority to which the application for the relevant planning permission was made (unless the Secretary of State or Welsh Ministers are responsible for determining the application), orthe Secretary of State or Welsh Ministers (if responsible for determining the application);
  • “onshore licence for England or Wales” means a licence granted under section 3 which authorises a person to search or bore for or get petroleum in those parts of the landward area (within the meaning of the Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014) that are in England or Wales or are beneath waters (other than waters adjacent to Scotland);
  • “relevant environmental regulator” means—the Environment Agency, if the relevant well is situated in the English onshore area, orthe Natural Resources Body for Wales, if the relevant well is situated in the Welsh onshore area;
  • “relevant planning permission” means planning permission to be granted, or granted, in respect of development which includes the relevant well;
  • “relevant undertaker” means the water undertaker or sewerage undertaker in whose area of appointment the relevant well is located;
  • “relevant well” means the well to which a well consent relates;
  • “well consent” means a consent in writing of the OGA or the Welsh Ministers to the commencement of drilling of a well.
  • (9) The power of the Secretary of State to make regulations under section 4 includes power to make such amendments of the definition of “onshore licence for England or Wales” in this section (as it applies to the English onshore area) as the Secretary of State considers appropriate in consequence of any other exercise of the power by the Secretary of State under section 4.
  • (9A) The power of the Welsh Ministers to make regulations under section 4 includes power to make such amendments of the definition of ““onshore licence for England and Wales”” in this section (as it applies to the Welsh onshore area) as they consider appropriate in consequence of any exercise by them of the power under section 4.
  • (10) The Secretary of State may, by regulations made by statutory instrument—
  • (a) make such amendments of column 2 of the table in section 4A as the Secretary of State considers appropriate as regards an application for a hydraulic fracturing consent in relation to land in the English onshore area, and
  • (b) make such other amendments of section 4A or this section as the Secretary of State considers appropriate in consequence of provision made under paragraph (a).
  • (11) A statutory instrument which contains regulations under subsection (10) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
  • (12) The Welsh Ministers may, by regulations made by statutory instrument—
  • (a) make such amendments of column 2 of the table in section 4A as the Welsh Ministers consider appropriate as regards an application for a hydraulic fracturing consent in relation to land in the Welsh onshore area, and
  • (b) make such other amendments of section 4A or this section as the Welsh Ministers consider appropriate in consequence of provision made under paragraph (a).
  • (13) A statutory instrument that contains regulations under subsection (12) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the National Assembly for Wales.
9BA
  • (1) The Secretary of State must act in accordance with the current strategy or strategies when exercising the functions mentioned in subsection (2).
  • (2) Those functions are functions under Part 4 to the extent that they concern reduction of the costs of abandonment of offshore installations and submarine pipelines (including the reduction of such costs by means of the timing of measures proposed in abandonment programmes and by the inclusion in such programmes of provision for collaboration with other persons).
9HA
  • (1) For the purposes of this Part an offshore installation is a relevant offshore installation if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got).
  • (2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath—
  • (a) the territorial sea adjacent to Great Britain, or
  • (b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.
  • (3) In this Part “owner”, in relation to a relevant offshore installation, means—
  • (a) a person in whom the installation is vested, and
  • (b) a lessee and any person occupying or controlling the installation.
28A
  • (1) A person to whom a notice may be given under section 29(1) in relation to an offshore installation or submarine pipeline may not abandon, or begin or continue the decommissioning of, the installation or pipeline unless an abandonment programme approved by the Secretary of State has effect in relation to the installation or pipeline.
  • (2) A person who without reasonable excuse contravenes subsection (1) is guilty of an offence.
34A
  • (1) This section applies where an abandonment programme approved by the Secretary of State includes provision by virtue of which the programme may be amended.
  • (2) A person who proposes to make an amendment under such a provision that is likely to have an effect on the cost of carrying out the programme must frame the amendment 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 amended is kept to the minimum that is reasonably practicable in the circumstances.
  • (3) If it appears to the person who proposes to make the amendment that subsection (2) applies, the person must consult the OGA before making the amendment.
  • (4) When consulted under subsection (3) 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 (2) applies and, if so, whether it has been complied with.
  • (5) Any person who has the function of approving amendments made under a provision mentioned in subsection (1) must, when exercising the function, take into account the effect of the proposed amendment on the cost of carrying out the programme.
36A
  • (1) This section applies where an abandonment programme approved by the Secretary of State has effect in relation to an installation or pipeline.
  • (2) The Secretary of State may, for the purpose of reducing the total cost of carrying out the programme, by written notice require any person who submitted the programme to take, or refrain from taking, action of a description specified in the notice.
  • (3) The notice may, in particular, require—
  • (a) changes to the times at which the measures proposed in the programme are to be carried out;
  • (b) the persons who are under a duty to secure that the programme is carried out to collaborate with other persons.
  • (4) The programme, and any condition to which it is subject, has effect subject to any notice given under this section.
  • (5) A notice given under this section 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.
  • (6) The Secretary of State may not give a notice to a person under this section without first giving the person an opportunity to make written representation as to whether the notice should be given.
  • (7) A person to whom a notice is given under this section who without reasonable excuse fails to comply with the notice is guilty of an offence.
  • (8) If a notice under this section is not complied with, the Secretary of State may—
  • (a) do anything necessary to give effect to the notice, and
  • (b) recover from the person to whom the notice was given any expenditure incurred under paragraph (a).
  • (9) A person liable to pay any sum to the Secretary of State by virtue of subsection (8) must also pay interest on that sum for the period beginning with the day on which the Secretary of State notified the person of the sum payable and ending with the date of payment.
  • (10) The rate of interest payable in accordance with subsection (9) is a rate determined by the Secretary of State as comparable with commercial rates.
8A
  • (1) This section applies for the purposes of this Part.
  • (1A) The “appropriate authority” means—
  • (a) in relation to the Scottish onshore area, the Scottish Ministers;
  • (aa) in relation to the Welsh onshore area, the Welsh Ministers;
  • (b) otherwise, the OGA.
  • (2) The “appropriate Minister” means—
  • (a) in relation to the Scottish onshore area, the Scottish Ministers;
  • (aa) in relation to the Welsh onshore area, the Welsh Ministers;
  • (b) otherwise, the Secretary of State.
  • (3) The Scottish onshore area is the area of Scotland that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea).
  • (4) In subsection (3) “Scotland” has the same meaning as in the Scotland Act 1998.
  • (5) The Welsh onshore area is the area of Wales that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea).
  • (6) In subsection (5) “Wales” has the same meaning as in the Government of Wales Act 2006.
  • (7) The English onshore area is the area of England and the sea adjacent to England that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea).

Acquisition of rights to use controlled petroleum pipelines.

Acquisition of rights to use controlled petroleum pipelines.

Section 17F: supplemental.

Enforcement.

Preparation of programmes.

Failure to submit programmes.

Failure to submit programmes.

Withdrawal of approval.

1.

This Table shows the derivation of the provisions of the Act.

Interpretation of Part III.

Preparation of programmes.

Regulations.

1.

This Table shows the derivation of the provisions of the Act.

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