The Oil and Gas Authority (Fees) Regulations 2016

Made: 7th September 2016

Laid before Parliament: 12th September 2016

Coming into force: 1st October 2016

The Secretary of State for Business, Energy and Industrial Strategy makes the following Regulations in exercise of the powers conferred by section 12(1), (2), (5) and (6) of the Energy Act 2016[^f00001].

Citation and commencement

1

These Regulations may be cited as the Oil and Gas Authority (Fees) Regulations 2016 and come into force on 1st October 2016.

Application

1A

• (1) These Regulations do not apply in relation to a petroleum licence in respect of an area within the Scottish onshore area or the Welsh onshore area.

• (2) In this regulation, “Scottish onshore area” has the meaning given in section 8A(3) of the Petroleum Act 1998 and “Welsh onshore area” has the meaning given in section 8A(5) of that Act.

Interpretation

2

In these Regulations—

• “the 1998 Act” means the Petroleum Act 1998[^f00002];

• “the 2008 Act” means the Energy Act 2008[^f00003];

• “the Applications Regulations” means the Petroleum Licensing (Applications) Regulations 2015;

• “the Offshore Safety Directive Regulations” means the Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015;

• “the 2016 Act” means the Energy Act 2016;

• “carbon dioxide appraisal and storage licence” means a licence granted under section 18 of the 2008 Act (licences) in respect of an activity within section 17(2) of that Act (prohibition on unlicensed activities)[^f00004];

• “carbon dioxide storage monitoring plan” means a monitoring plan within the meaning given by regulation 7(5) of the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;

• “carbon dioxide storage permit” means a storage permit within the meaning given by regulation 1(3) of the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;

• “carbon dioxide storage proposal” means a proposal for the storage of carbon dioxide and any associated works submitted pursuant to a carbon dioxide appraisal and storage licence;

• “carbon dioxide storage site” means a storage site within the meaning given by regulation 1(4) of the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;

• “carbon dioxide storage well” means a well—drilled pursuant to a carbon dioxide appraisal and storage licence; orused in connection with activities authorised by such a licence;

• “carbon dioxide storage well injection test” means a test of the injection of any fluid into a carbon dioxide storage well for the purposes of appraising a carbon dioxide storage site;

• “carbon dioxide storage work programme” means the work programme set out in a schedule to a carbon dioxide appraisal and storage licence;

• “category 1 pipeline works authorisation variation” means an application to vary an existing pipeline works authorisation where the variation relates to the installation of a new pipeline that is greater than 500 metres in length and situated entirely or partially outside a safety zone;

• “category 2 pipeline works authorisation variation” means an application to vary an existing pipeline works authorisation where the variation relates to—the installation of a new pipeline that is 500 metres or less in length or entirely within a safety zone; orthe partial or full removal from the seabed, or the taking out of use, of an existing pipeline prior to the OGA receiving confirmation in writing of the last day of production from a relevant petroleum field or part of a petroleum field;

• “change in control” means, in relation to a licensee, a change in control under—clause 37A of Schedule 3 to the Petroleum Production (Landward Areas) Regulations 1995;any of the following clauses in the Petroleum (Current Model Clauses) Order 1999—clause 38A of Part 2 of Schedule 2;clause 36A of Part 2 of Schedule 3;clause 37A of Part 2 of Schedule 4;clause 39A of Part 2 of Schedule 5;clause 38A of Part 2 of Schedule 6;clause 35A of Part 2 of Schedule 8;clause 41A of Part 2 of Schedule 9;clause 41A of Part 2 of Schedule 10;clause 32A of Part 2 of Schedule 13;clause 34A of Part 2 of Schedule 14;any of the following clauses in the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004—clause 37A of Schedule 2;clause 38A of Schedule 3;clause 36A of Schedule 4;clause 35A of Schedule 6;clause 40A of the Schedule to the Petroleum Licensing (Production) (Seaward Areas) Regulations 2008;clause 40A of Schedule 2 to the Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014; orparagraph 6 of Schedule 1 to the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;

• “development and production programme” means a programme or proposal submitted pursuant to a petroleum licence setting out the measures proposed to be taken in connection with the development and production of a petroleum field;

• “development area proposal” means a proposal submitted pursuant to a petroleum exploration and development licence defining the geographic locations within a petroleum field where the licensee proposes to undertake development and production including, where relevant, a plan setting out the activities to be carried out;

• “development plan” means a plan submitted pursuant to a gas storage licence setting out the measures proposed to be taken in connection with the development of a gas storage field;

• “drill stem test” means any well test that is not an extended well test;

• “extended carbon dioxide storage well injection test” means any carbon dioxide storage well injection test which has a total duration of fluid injection of 96 hours or more;

• “extended well test” means any well test which—has a cumulative duration of fluid production of 96 hours or more; orproduces a total of more than 2,000 tonnes of oil and, for these purposes, when oil is in a gaseous state 43,000 standard cubic feet is counted as equivalent to one tonne;

• “gas storage licence” means a licence granted under section 4 of the 2008 Act (licences) in respect of any activity within section 2(3) of that Act (prohibition on unlicensed activities)[^f00005];

• “licensee” means the holder of a relevant licence;

• “offshore installation” has the meaning given in section 44 of the 1998 Act;

• “petroleum exploration and development licence” has the meaning given in regulation 2 of the Applications Regulations;

• “petroleum licence” means a licence granted under section 3 of the 1998 Act (searching for, boring and getting petroleum) or under section 2 of the Petroleum (Production) Act 1934 (licences to search for and get petroleum)[^f00006];

• “pipeline deposit proposal” means a proposal—to place any material on the seabed for the protection or support of a pipeline during its construction; orfor the maintenance of a pipeline,where that proposal is submitted pursuant to a pipeline works authorisation;

• “pipeline works authorisation” means an authorisation given by the OGA[^f00007] in accordance with section 15 of the 1998 Act (submarine pipelines: authorisations)[^f00008];

• “relevant licence” means, as appropriate, a carbon dioxide appraisal and storage licence, a gas storage licence or a petroleum licence;

• “retention area proposal” means a proposal submitted pursuant to a petroleum exploration and development licence defining the geographic locations where the licensee proposes to undertake exploration and appraisal activities;

• “safety zone” means a safety zone established under section 21 or section 22 of the Petroleum Act 1987;

• “standard carbon dioxide storage well injection test” means any carbon dioxide storage well injection test which is not an extended carbon dioxide storage well injection test;

• “well” includes borehole;

• “well or installation operator” means a person appointed in accordance with regulation 5 of the Offshore Safety Directive Regulations (appointment of operators by offshore licensees) to conduct the planning or execution of well operations or offshore petroleum operations other than well operations;

• “well suspension” means the suspension of the use of a well such that it may be re-used for the purpose of drilling or other works;

• “well test” means a test of the production from a well where the petroleum, water or any other fluid produced or used in such production is not conveyed to a permanent offshore installation;

• “work programme” means a programme set out in a schedule to a petroleum licence which sets out the prospecting to be undertaken during the initial term, including any geological survey by any physical or chemical means and any test drilling.

Applications of a prescribed description

3

• (1) The following applications are prescribed for the purposes of section 12(1)(d) of the 2016 Act (powers of the OGA to charge fees)—

• (a) an application for consent to a development and production programme;

• (b) an application for consent to the methodology proposed for the measurement of petroleum;

• (c) an application for consent to drill a primary well;

• (d) an application for consent to drill a sidetrack well branching off from the principal well to a target location different from that of the principal well;

• (e) an application for consent to fit or refit equipment in a well for the purpose of enabling hydrocarbon production or injection;

• (f) an application for consent to get petroleum from a licensed area;

• (g) an application for a variation of a consent to get petroleum from a licensed area;

• (h) an application for consent to flare petroleum from a well;

• (i) an application for a variation of a consent to flare petroleum from a well;

• (j) an application for consent to a well suspension;

• (k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (l) an application for consent to abandon a well permanently;

• (m) an application for consent to a change of licensee of a petroleum licence;

• (n) an application for consent to a change of the beneficiary of rights granted by a petroleum licence; and

• (o) an application for approval of the appointment of an operator under a petroleum licence;

• (p) an application for approval of the appointment of a well or installation operator ...;

• (q) an application for consent to a retention area proposal where consent is granted;

• (r) an application for consent to a development area proposal where consent is granted;

• (s) an application for consent to amend the initial, second or final term of a petroleum licence;

• (t) an application for consent to amend the final phase of the initial term of a petroleum licence;

• (u) an application for consent to amend a work programme;

• (v) an application for consent to a drill stem test;

• (w) an application for consent to an extended well test;

• (x) an application for consent to a change in control.

• (2) An application for consent to a pipeline deposit proposal is prescribed for the purposes of section 12(1)(e) of the 2016 Act.

• (3) The following applications are prescribed for the purposes of section 12(1)(h) of the 2016 Act—

• (a) an application for consent to a carbon dioxide storage proposal; and

• (b) an application for consent to a development plan;

• (c) an application for consent to a change of licensee of a carbon dioxide appraisal and storage licence;

• (d) an application for consent to a change of the beneficiary of rights under a carbon dioxide appraisal and storage licence;

• (e) an application for consent to appoint an exploration operator under a carbon dioxide appraisal and storage licence;

• (f) an application for consent to appoint a storage operator under a carbon dioxide appraisal and storage licence;

• (g) an application for consent to amend the initial or appraisal term of a carbon dioxide appraisal and storage licence;

• (h) an application for consent to amend a carbon dioxide storage permit;

• (i) an application for consent to review and amend a carbon dioxide storage monitoring plan;

• (j) an application for consent to amend a carbon dioxide storage work programme;

• (k) an application for consent to a change in control.

• (l) an application for consent to drill a primary carbon dioxide storage well, including wells for appraisal, development and injection of carbon dioxide, monitoring, and brine production;

• (m) an application for consent to drill a sidetrack carbon dioxide storage well branching off from the principal carbon dioxide storage well to a target location different from that of the principal well;

• (n) an application for consent to fit or refit equipment in a carbon dioxide storage well for the purpose of enabling carbon dioxide appraisal, development and injection or to remove such equipment;

• (o) an application for consent to a carbon dioxide storage well suspension;

• (p) an application for consent to abandon a carbon dioxide storage well permanently;

• (q) an application for consent to re-enter a carbon dioxide storage well to carry out remediation or other works in connection with carbon dioxide storage;

• (r) an application for consent to a standard carbon dioxide storage well injection test;

• (s) an application for consent to an extended carbon dioxide storage well injection test;

• (t) an application for consent to an amount of financial security maintained by an operator of a carbon dioxide storage site in accordance with the provisions of a carbon dioxide storage permit;

• (u) an application for consent to store gas pursuant to a gas storage licence, including injection of gas and recovery of stored gas.

... Fees payable for consents and pipeline works authorisations

4

• (1) A licensee must pay a fee where the licensee applies to the OGA for consent to—

• (a) a carbon dioxide storage proposal;

• (b) a development and production programme; ...

• (c) a development plan.

• (d) amend a carbon dioxide storage permit;

• (e) review and amend a carbon dioxide storage monitoring plan; ...

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) a change in control ; or

• (h) an amount of financial security maintained by an operator of a carbon dioxide storage site in accordance with the provisions of a carbon dioxide storage permit.

• (2) A person must pay a fee where the person applies to the OGA for—

• (a) a consent to a pipeline deposit proposal; ...

• (b) a pipeline works authorisation;

• (c) ... a variation to an existing pipeline works authorisation;

• (d) a consent to get petroleum from a licensed area;

• (e) a variation of a consent to get petroleum from a licensed area;

• (f) a consent to flare or vent petroleum from a well; ...

• (g) a variation of a consent to flare or vent petroleum from a well.

• (h) a consent to flare or vent natural gas from a relevant oil processing facility or a relevant gas processing facility; or

• (i) a variation of a consent to flare or vent natural gas from a relevant oil processing facility or a relevant gas processing facility.

• (3) Subject to paragraphs (7) and (10), the amount of the fee under paragraph (1), and for a complex application under paragraph (2), is determined by the formula—

$££670×A×B$

• (4) In paragraph (3), reference to—

• A is the number of days; and

• B is the number of officers,

... required to determine the application.

• (5) The licensee or person must:

• (a) pay any fee payable under paragraph (1), or paragraph (2) for a complex application, within 30 days of the OGA notifying the licensee or person of the determination of the application unless paragraphs (7) or (10) apply;

• (b) where paragraphs (7) or (10) apply, pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee or person of the amount due, unless the OGA notifies the licensee or person, as appropriate, in writing that the licensee or person may pay the fee at a later date;

• (c) pay any fee payable under paragraph (2), other than for a complex application, at the time of making the application; and

• (d) in relation to paragraph (16) pay any additional fee payable under paragraph (2) within 30 days of the OGA notifying the licensee or person of the determination of the application,

unless the OGA notifies the licensee or person, as appropriate, in writing that the licensee or person may pay the fee at a later date.

• (6) In paragraph (4), “officer” means a person engaged by the OGA to carry out the function in respect of which the relevant fee is payable.

• (7) If a licensee who has applied for consent to a development and production programme , or for consent to a carbon dioxide storage proposal, notifies the OGA in writing, before the OGA has determined the application, that the licensee no longer intends to proceed with the application, the amount of the fee is to be determined in accordance with paragraph 8.

• (8) The amount of the fee under paragraph (7) is determined by the formula—

$££670×A×B$

• (9) In paragraph (8), reference to—

• A is the number of days; and

• B is the number of officers working to determine an application for consent to a development and production programme , or an application for consent to a carbon dioxide storage proposal,

• up to and including the date notification is received by the OGA.