(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; or
any 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 Acquisition of rights to use controlled petroleum pipelines.
(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.
(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.
17GA Controlled petroleum pipeline subject to Norwegian access system
(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.
(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.
17H Enforcement of certain duties in sections 17B, 17D and 17E.Enforcement of duty in section 17GA
(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.
(1) An authorisation shall cease to be in force at the earliest of the following—
(a) where the duration of the authorisation is not expressed to be unlimited, the time at which that duration expires as specified by or ascertained under the terms of the authorisation;
(b) the time (if any) agreed in writing by the holder and the OGA as the time at which the authorisation is to cease to be in force; and
(c) the time specified in a notice under subsection (2) or (6).
(2) If it appears to the OGA that the execution of works authorised by a works authorisation has not been begun at the expiry of the period specified in subsection (3), it shall serve on the holder a notice stating that the authorisation is to cease to be in force at a time specified in the notice.
(3) The period referred to in subsection (2) is—
(a) the period of three years beginning with the date when the authorisation is expressed to come into force; or
(b) such longer period beginning with that date as the OGA has, on the application of the holder, specified in a notice served under this paragraph on the holder during the period mentioned in paragraph (a).
(4) For the purpose of subsection (2), the OGA shall disregard the execution of any of the works which it considers should be disregarded for that purpose.
(5) The OGA shall not serve a notice under subsection (3)(b) unless—
(a) it is satisfied that notice of the application under that provision has been served on—
(i) the persons on whom, in accordance with Schedule 2, notice of the application for the authorisation was served or such of them as the OGA considers appropriate in the circumstances; and
(ii) such other persons, if any, as it considers appropriate in the circumstances; and
(b) it has considered any written representations about the application under subsection (3)(b) made during such a period as it considers reasonable by any of the persons on whom notice of the application was served in accordance with paragraph (a).
(6) Subject to subsections (7) and (8), if the OGA considers that the holder of an authorisation—
(a) has contravened a term of the authorisation; or
(b) has contravened any provision of a notice which, under section 16, 17 or 17F(9) of this Act or section 82(11) of the Energy Act 2011, was served on him in his capacity as the owner of the pipeline (or the proposed owner of the proposed pipeline) to which the authorisation relates,
the OGA may serve on the holder a notice stating that the authorisation is to cease to be in force at a time specified in the notice.
(7) The OGA shall not serve a notice under subsection (6) without first giving the holder of the authorisation an opportunity to make written representations to it.
(8) The OGA shall not serve a notice under subsection (6) in consequence of a contravention if the OGA considers that—
(a) having regard to the nature and consequences of the contravention and to any previous contravention, it would be unreasonable to terminate the authorisation in consequence of the contravention; and
(b) the holder has taken adequate steps to prevent similar contraventions in future.
(9) When an authorisation ceases to be in force the OGA shall publish in the London and Edinburgh and Belfast Gazettes, or in such of them as it considers appropriate, a notice stating that it has ceased to be in force.
19 Vesting of pipelines on termination or subsequent issue of authorisations.
(1) When an authorisation ceases to be in force the controlled pipeline to which it relates shall, by virtue of this subsection, be transferred to and vest in the OGA free from encumbrances, except that nothing in this subsection prejudices—
(a) any interest belonging to the Crown Estate or to Her Majesty in right of the Duchy of Lancaster or to the Duchy of Cornwall; or
(b) any right conferred by a notice relating to the pipeline under section 17 or section 17F(9) of this Act or section 82(11) of the Energy Act 2011 .
(2) Where the OGA proposes to issue an authorisation to any person in respect of a pipeline vested in the OGA by virtue of subsection (1) the OGA may agree with that person, on terms which may include provision for that person to make payments to the OGA, that the authorisation is to include a statement that subsection (3) applies to the authorisation.
(3) Where an authorisation includes such a statement the pipeline to which the authorisation relates shall, by virtue of this subsection and at the time specified in the authorisation, be transferred to and vest in the holder of the authorisation subject to any interest or right then subsisting in respect of the pipeline by virtue of paragraph (a) or (b) of subsection (1).
(1) The OGA may appoint, as inspectors to assist it in the execution of this Part of this Act, such number of persons appearing to it to be qualified for the purpose as it considers appropriate from time to time.
(2) The Secretary of State may by regulations make provision with respect to—
(a) the powers and duties of—
(i) inspectors appointed under subsection (1); and
(ii) any other persons acting on the directions of the OGA in connection with the execution of this Part of this Act; and
(b) the facilities to be accorded to such inspectors and other persons.
(3) For the purpose of enforcing regulations made under subsection (2), an inspector appointed under subsection (1) shall have the same powers under section 38 of the Health and Safety at Work etc. Act 1974 (institution of proceedings in England and Wales) as he would have if he were an inspector appointed by the Health and Safety Executive under section 19 of that Act who is authorised to act for the purposes of the regulations.
(4) In the application of this section to Northern Ireland, subsection (3) shall have effect as if—
(a) the references to sections 19 and 38 of the Health and Safety at Work etc. Act 1974 were references to Articles 21 and 35, respectively, of the Health and Safety at Work (Northern Ireland) Order 1978; and
(b) the reference to the Health and Safety Executive were a reference to the Health and Safety Executive for Northern Ireland.
(5) A statutory instrument containing regulations under subsection (2) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) Any person who—
(a) contravenes any provision of section 14(1); or
(b) contravenes any provision of a notice under section 16, 17 or 17F(9) served on him in his capacity as the owner of the pipeline to which the notice relates in a case where no authorisation for the use of the pipeline is required by section 14(1); or
(c) makes a statement which he knows is false in a material particular, or recklessly makes a statement which is false in a material particular, for the purpose of inducing the OGA—
(i) to issue any authorisation; or
(ii) to agree under section 18(1)(b) that an authorisation is to cease to be in force; or
(iii) to specify a period under section 18(3)(b); or
(iv) not to serve a notice under section 18(6),
shall be guilty of an offence and liable on summary conviction to a fine not exceeding the statutory maximum or on conviction on indictment to a fine.
(2) If a person executes any works in contravention of section 14(1) the OGA may at any time serve on him a notice requiring him to remove such of the works as are specified in the notice as works to be removed.
(3) The recipient of a notice under subsection (2) shall comply with the notice within the period specified in the notice; and if he fails to do so the OGA may comply with the notice on his behalf and recover from him any expenses reasonably incurred in doing so.
(4) If a person executes any works in contravention of section 14(1) and the OGA considers that it is urgently necessary to do such things in relation to the works as it could have required that person to do by a notice under subsection (2), the OGA may do those things and recover from that person any expenses reasonably incurred in doing so.
(5) The fact that any thing is done or omitted—
(a) by the recipient of a notice under subsection (2) for the purpose of complying with the notice; or
(b) by the OGA under subsection (3) or (4),
shall not relieve him from liability for any damage which is attributable to the act or omission and for which he would have been liable had the act or omission not been authorised by this section; but the OGA shall be entitled to recover from the person who executed the works in question the amount of any damages which, in consequence of the works, are paid by the OGA by virtue of this subsection.
(1) Proceedings for an offence under section 21(1) or created by regulations made under this Part of this Act (a “relevant offence”) may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.
(2) Proceedings for a relevant offence alleged to have been committed in, under or over controlled waters shall not be instituted in England and Wales except—
(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or
(b) by or with the consent of the Director of Public Prosecutions.
(3) Proceedings for a relevant offence alleged to have been committed in, under or over controlled waters shall not be instituted in Northern Ireland except—
(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or
(b) by or with the consent of the Director of Public Prosecutions for Northern Ireland.
(4) Subsections (2) and (3) do not apply to proceedings for an offence created by regulations made under section 20.
(5) In proceedings for a relevant offence an averment in the information, complaint or indictment that anything was done or situated in, under or over controlled waters shall, unless the contrary is proved, be sufficient evidence of the matter stated in the averment.
(6) Where a relevant offence committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
(7) In subsection (6), in relation to a body corporate which—
(a) is established by or under any enactment for the purpose of carrying on under public ownership any industry or part of an industry or undertaking; and
(b) is a body whose affairs are managed by its members,
“director” means a member of the body corporate.
(8) In any proceedings for—
(a) an offence under paragraph (a) of subsection (1) of section 21 of executing works or using a pipeline otherwise than in accordance with the terms of the relevant authorisation; or
(b) an offence under paragraph (b) of that subsection of contravening any provision of a notice,
it shall be a defence to prove that the accused used all due diligence to comply with those terms or, as the case may be, with that provision.
(9) Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on prosecutions) shall not apply to any proceedings for a relevant offence.
(1) Breach of a duty imposed on any person by regulations made under this Part of this Act which state that this subsection applies to such a breach shall be actionable so far, and only so far, as the breach causes personal injury.
(2) References in—
(a) the Fatal Accidents Act 1976; and
(b) Article 3(1) of the Fatal Accidents (Northern Ireland) Order 1977,
to a wrongful act, neglect or default shall include references to any such breach which is so actionable.
(3) Nothing in subsections (1) and (2) prejudices any action which lies apart from the provisions of those subsections.
(4) A defence to a charge which is available by virtue of section 25(3)(c) shall not be a defence in any civil proceedings whether they are brought by virtue of this section or otherwise.
(5) For the purposes of subsection (1) any such regulations as are mentioned in that subsection shall bind the Crown, and references in those regulations to employees shall for those purposes include persons in the service of the Crown; but nothing in this subsection—
(a) confers any right of action on a person as a member of the armed forces of the Crown; or
(b) authorises proceedings against Her Majesty in her private capacity or in right of the Duchy of Lancaster or against the Duke of Cornwall.
(6) In subsection (1) “personal injury” includes any disease, any impairment of a person’s physical or mental condition and any fatal injury.
(1) Where no initial or terminal point of a pipeline is situated in the United Kingdom or controlled waters, the pipeline shall be disregarded for the purposes of this Part of this Act except this subsection and subsection (2).
(2) The Secretary of State may by order provide that specified provisions of this Part of this Act shall apply, subject to such modifications (if any) as are specified, to the whole or any part of a pipeline of a kind mentioned in subsection (1); but an order under this subsection shall contain only such provisions as the Secretary of State considers are consistent with the jurisdiction which belongs to the United Kingdom under international law.
(2A) If a pipeline—
(a) is specified in an order made by the Secretary of State under this subsection, or
(b) is of a description so specified,
the pipeline shall be disregarded for the purposes of this Part of this Act (other than this subsection) or shall be so disregarded while any specified condition is satisfied.
(3) The Secretary of State may in regulations provide that specified provisions of this Part of this Act shall not apply to a pipeline of a specified kind or shall not apply to such a pipeline while any specified condition is satisfied.
(3A) The Secretary of State may by order provide that specified provisions of this Part of this Act shall apply, subject to such modifications (if any) as are specified, in relation to a controlled pipeline—
(a) which is specified or of a specified description, and
(b) which meets the conditions in subsection (3B).
(3B) The conditions are—
(a) that the pipeline is used in connection with exploration for, or exploitation of, petroleum, or the importation of petroleum into the United Kingdom;
(b) that, by virtue of the date when construction of the pipeline was begun, section 14(1)(b) would not apply in relation to use of the pipeline but for an order under this subsection.
(4) In this section “specified”, in relation to an order or regulations, means specified in the order or, as the case may be, the regulations.
(5) A statutory instrument containing an order under subsection (2) , (2A) or (3A) or regulations under subsection (3) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) Before making any order or regulations under this Part of this Act, the Secretary of State must consult—
(a) the OGA, and
(b) in the case of regulations, such organisations in the United Kingdom as the Secretary of State considers are representative of persons who will be affected by the regulations.
(2) In making regulations under section 20, the Secretary of State shall have regard to the extent of the jurisdiction which belongs to the United Kingdom under international law.
(3) Any regulations under this Part of this Act may provide—
(a) for the creation of offences which, subject to paragraph (b), are punishable on summary conviction by a fine not exceeding the statutory maximum and on conviction on indictment by imprisonment for a term not exceeding two years and a fine;
(b) for the maximum punishment for an offence created by the regulations to be less than that authorised by paragraph (a) and for such an offence to be punishable only on summary conviction; and
(c) for the matters which are to be a defence to a charge of an offence created by the regulations.
(4) Regulations under this Part of this Act—
(a) may be limited so as to apply only in prescribed cases or may exclude prescribed cases from the application of the regulations;
(b) may provide for a case to be excluded from the application of the regulations only so long as conditions specified in the regulations are satisfied.
(5) The Health and Safety Executive may, by directions given to such persons as it considers appropriate, provide for any such regulations not to apply in a case specified in the directions so long as conditions so specified are satisfied.
(6) In its application to Northern Ireland, subsection (5) shall have effect as if the reference to the Health and Safety Executive were a reference to the Health and Safety Executive for Northern Ireland.
(7) Any order or regulations under this Part of this Act—
(a) may make different provision for different circumstances; and
(b) may include such incidental, supplemental and transitional provision as the Secretary of State considers appropriate in connection with the order or regulations.
(8) Without prejudice to the generality of paragraph (b) of subsection (7), provision that may be included in regulations by virtue of that paragraph includes provision for the payment of fees in respect of consents and certificates required by the regulations.
(9) Section 14 of the Interpretation Act 1978 (implied power to amend) shall not apply in relation to the power conferred by section 24(2).
(10) Any power conferred by this Part of this Act to make an order or regulations shall be exercisable by statutory instrument.
(1) Except where the context otherwise requires, in this Part of this Act “pipeline” means a pipe or system of pipes (excluding a drain or sewer) for the conveyance of any thing, together with all apparatus, works and services associated with the operation of such a pipe or system .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) The Secretary of State may by order provide that a part of a pipeline specified in the order shall be treated for the purposes of this Part of this Act, except this subsection, as a pipeline.
(1) For the purposes of this Part of this Act “owner” in relation to a pipeline, and “proposed owner” in relation to a proposed pipeline, mean the person for the time being designated as the owner of the pipeline, or as the case may be as the proposed owner of the proposed pipeline, by an order made by the Secretary of State.
(1A) For the purposes of this Part of this Act (other than section 16, section 17(1) , the first reference in section 17F(2) and the reference in 17GA(2)(a)) , in the case of downstream gas pipelines and controlled petroleum pipelines—
“owner” in relation to a pipeline includes a person in whom the pipeline is vested; and a person who has the right to use capacity in the pipeline, where such right has been acquired by that person on terms that—
he is entitled to use the capacity for a period of one year or more; and
the right is capable of being assigned or otherwise disposed of to another person; and
“proposed owner” in relation to a proposed pipeline includes a person in whom the pipeline is proposed to be vested.
(2) An order designating a person as the proposed owner of a proposed pipeline may also provide for him to be designated as the owner of the pipeline in question at a time determined by or under the order.
(3) Before designating a person under subsection (1) or (2), the Secretary of State shall give the person an opportunity of being heard with respect to the matter.
(4) Where a person for the time being designated under subsection (1) or (2) requests the Secretary of State in writing to cancel the designation, the Secretary of State shall—
(a) consider the request; and
(b) if he considers it appropriate to do so, give the person an opportunity of being heard in connection with the request.
(1) Except where the context otherwise requires, in this Part of this Act the following expressions have the following meanings—
“authorisation” means an authorisation required by section 14;
“carbon dioxide storage site” means a facility—
for the storage of carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent disposal); and
in respect of the use of which a person is required to have a licence under section 18 of the Energy Act 2008;
“construction”, in relation to a pipeline, includes placing, and cognate expressions shall be construed accordingly;
“controlled carbon dioxide pipeline” means any controlled pipeline or one of a network of controlled pipelines—
which is used to convey carbon dioxide to a carbon dioxide storage site, or
which is not being used for any purpose but which is intended to be used to convey carbon dioxide to such a site;
“controlled petroleum pipeline” means any controlled pipeline or one of a network of controlled pipelines—
which is operated or constructed as part of a petroleum production project and is not a controlled carbon dioxide pipeline; or
which is used to convey petroleum from the site of one or more such projects—
directly to premises, in order for that petroleum to be used at those premises for power generation or for an industrial process;
directly to a place outside Great Britain;
directly to a terminal; or
indirectly to a terminal by way of one or more other terminals, whether or not such intermediate terminals are of the same kind as the final terminal;
“controlled pipeline” and “controlled waters” have the meanings given to them by section 14;
“downstream gas pipeline” means a controlled pipeline, other than a controlled petroleum pipeline, which is used to convey gas to or from a place outside Great Britain;
“enactment” includes an enactment of the Parliament of Northern Ireland or of the Northern Ireland Assembly;
“gas” means any substance which consists wholly or mainly of—
methane, ethane, propane, butane, hydrogen, carbon monoxide or a substance designated under paragraph (e) of the definition of “gas” in section 2(4) of the Energy Act 2008;
a mixture of two or more of those substances ; or
a combustible mixture of one or more of those substances and air;
“gas processing facility” means any facility in Great Britain operated otherwise than by a public gas transporter which carries out gas processing operations;
“gas processing operation” means any of the following operations, namely—
purifying, blending, odorising or compressing gas for the purpose of enabling it to be introduced into a pipeline system operated by a public gas transporter or to be conveyed to an electricity generating station, a gas storage facility or any place outside Great Britain;
removing from gas for that purpose any of its constituent gases, or separating from gas for that purpose any oil or water; ...
determining the quantity or quality of gas which is or is to be so introduced, or so conveyed, whether generally or by or on behalf of a particular person;
separating, purifying, blending, odorising or compressing gas, for the purpose of—
converting it into a form in which a purchaser is willing to accept delivery from a seller, or
enabling it to be loaded for conveyance to another place (whether inside or outside Great Britain); and
loading gas—
at a facility which carries out operations of a kind mentioned in paragraph (d), or
piped from such a facility,
for the purpose of enabling the gas to be conveyed to another place (whether inside or outside Great Britain);
“heard” means—
in relation to section 27, heard on behalf of the Secretary of State by a person appointed by the Secretary of State for the purpose, and
otherwise, heard on behalf of the OGA by a person appointed by the OGA for the purpose.
“holder”, in relation to an authorisation, means the person to whom the authorisation was issued;
“new facility” means—
an offshore gas storage facility the construction of which is or is to be completed after 3rd August 2003; or
an offshore gas storage facility the modification of which to provide for a significant increase in capacity is or is to be completed after 3rd August 2003
“notice” means notice in writing;
“oil processing facility” means any facility in Great Britain, the territorial sea adjacent to the United Kingdom or the sea in any area designated under section 1(7) of the Continental Shelf Act 1964 which carries out oil processing operations;
“oil processing operations” means any of the following operations—
initial blending and such other treatment of petroleum as may be required to produce stabilised crude oil and other hydrocarbon liquids to the point at which a seller could reasonably make a delivery to a purchaser of such oil and liquids;
receiving stabilised crude oil and other hydrocarbon liquids piped from an oil processing facility carrying out operations of a kind mentioned in paragraph (a), or storing oil or other hydrocarbon liquids so received, prior to their conveyance to another place (whether inside or outside Great Britain);
loading stabilised crude oil and other hydrocarbon liquids piped from a facility carrying out operations of a kind mentioned in paragraph (a) or (b) for conveyance to another place (whether inside or outside Great Britain);
“offshore gas storage facility” means a facility for the storage of gas in controlled waters other than the territorial sea of the United Kingdom adjacent to Northern Ireland;
“petroleum” has the same meaning as in Part I of this Act, and includes petroleum which has undergone any processing;
“petroleum production project” means a project carried out by virtue of a licence granted under section 3, or an equivalent project in a foreign sector of the continental shelf, and includes such a project which is used for the storage of gas;
“pipeline”, in relation to an application for a works authorisation, means the proposed pipeline in respect of which the application is made;
“prescribed” means prescribed by regulations; and
“public gas transporter” means a public gas transporter within the meaning of Part I of the Gas Act 1986;
“terminal” includes—
onshore facilities in the United Kingdom for such initial blending and other treatment as may be required to produce stabilised crude oil and other hydrocarbon liquids to the point at which a seller could reasonably make a delivery to a purchaser of such oil and liquids;
oil processing facilities
gas processing facilities; and
a facility for the reception of gas prior to its conveyance to a place outside Great Britain;
“works authorisation” means an authorisation—
for works for the construction of a pipeline; or
for such works and for the use of the pipeline.
(2) For the purposes of this Part of this Act, works at any place in, under or over controlled waters for the purpose of determining whether the place is suitable as part of the site of a proposed pipeline and the carrying out of surveying operations for the purpose of settling the route of a proposed pipeline are not works for the construction of a pipeline.
(3) Any reference in this Part of this Act to a contravention of a provision of this Part or regulations made or directions given under this Part includes a reference to a failure to comply with that provision.
(4) Subsections (1) to (3) of section 49 of the Pipe-lines Act 1962 (service of documents) have effect as if—
(a) references to that Act included references to this Part of this Act; and
(b) in subsection (3), after “arrangements agreed” there were inserted “ or in accordance with regulations under Part III of the Petroleum Act 1998 ”.
(5) In the application of subsection (4) to Northern Ireland, section 49(1) to (3) of the Pipe-lines Act 1962 shall have effect as if it extended to Northern Ireland.
(6) Except so far as this Part of this Act otherwise expressly provides, nothing in this Part of this Act—
(a) confers a right of action in any civil proceedings (other than proceedings for recovery of a fine) in respect of any contravention of this Part of this Act or an order or regulations made under it;
(b) affects any restriction imposed by or under any other enactment, whether public, local or private; or
(c) derogates from any right of action or other remedy (whether civil or criminal) in proceedings instituted otherwise than under this Act.
(7) Subsection (6) is subject to section 18 of the Interpretation Act 1978 (duplicated offences).
(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.
(1) The Secretary of State may by written notice require—
(a) the person to whom the notice is given; or
(b) where notices are given to more than one person, those persons jointly,
to submit to the Secretary of State a programme setting out the measures proposed to be taken in connection with the abandonment of an offshore installation or submarine pipeline (an “abandonment programme”).
(1A) The power to give a notice under subsection (1) is exercisable—
(a) on the Secretary of State's own motion, or
(b) at the request of any person to whom the notice may be given (whether or not the notice is given to that person).
(2) A notice under subsection (1) shall either specify the date by which the abandonment programme is to be submitted or provide for it to be submitted on or before such date as the Secretary of State may direct.
(2A) A person to whom a notice under subsection (1) is given—
(a) must consult the OGA before submitting the abandonment programme to the Secretary of State, and
(b) must frame the programme 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 it out is kept to the minimum that is reasonably practicable in the circumstances.
(2B) When consulted under paragraph (a) of subsection (2A) 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) how to comply with paragraph (b) of that subsection.
(3) A notice under subsection (1) may require the person to whom it is given to carry out such other consultations as may be specified in the notice before submitting an abandonment programme.
(4) An abandonment programme—
(a) shall contain an estimate of the cost of the measures proposed in it;
(b) shall either specify the times at or within which the measures proposed in it are to be taken or make provision as to how those times are to be determined;
(c) if it proposes that an installation or pipeline be left in position or not wholly removed, shall include provision as to any continuing maintenance that may be necessary.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) The Secretary of State may exercise his powers under this section notwithstanding that an abandonment programme has previously been submitted for the installation or pipeline in question if the Secretary of State has under section 32—
(a) rejected that programme, or
(b) approved it (whether or not the approval has been withdrawn).
30 Persons who may be required to submit programmes.
(1) A notice under section 29(1) shall not be given to a person in relation to the abandonment of an offshore installation unless at the time when the notice is given he is within any of the following paragraphs—
(a) the person having the management of the installation or of its main structure;
(b) a person to whom subsection (5) applies in relation to the installation;
(ba) a person to whom subsection (5)(a) and (b) applied in relation to the installation, but who—
(i) transferred the right mentioned in that subsection to another person, and
(ii) has not obtained a consent required under the licence in relation to the transfer;
(c) a person outside paragraphs (a) and (b) who is a party to a joint operating agreement or similar agreement relating to rights by virtue of which a person is within paragraph (b);
(d) a person outside paragraphs (a) to (c) who owns any interest in the installation otherwise than as security for a loan;
(e) a body corporate which is outside paragraphs (a) to (d) but is associated with a body corporate within any of those paragraphs.
(2) A notice under section 29(1) shall not be given to a person in relation to the abandonment of a submarine pipeline unless at the time when the notice is given he is within any of the following paragraphs—
(a) a person designated as the owner of the pipeline by an order made by the Secretary of State under section 27;
(b) a person outside paragraph (a) who owns any interest in the whole or substantially the whole of the pipeline, otherwise than as security for a loan;
(c) a body corporate which is outside paragraphs (a) and (b) but is associated with a body corporate within one of those paragraphs.
(3) The Secretary of State may by written notice require a person appearing to the Secretary of State to be within any of the paragraphs of subsection (1) or (2) to give him, within such time as may be specified in the notice, the name and address of every other person whom the recipient of the notice believes to be within any of those paragraphs in relation to the installation or pipeline concerned.
(4) A person who without reasonable excuse fails to comply with a notice under subsection (3) shall be guilty of an offence.
(5) This subsection applies to a person in relation to an offshore installation if—
(a) the person has the right—
(i) to exploit or explore mineral resources in any area,
(ii) to unload, store or recover gas in any area or to convert any natural feature in any area for the purpose of storing gas, or
(iii) to explore any area with a view to, or in connection with, the exercise of a right within sub-paragraph (i) or (ii), and
(b) either—
(i) any activity mentioned in subsection (6) is carried on from, by means of or on the installation, or
(ii) the person intends to carry on an activity mentioned in that subsection from, by means of or on the installation,
or if he had such a right when any such activity was last so carried on.
(6) The activities referred to in subsection (5) are—
(a) the exploitation or exploration of mineral resources in the exercise of the right mentioned in subsection (5)(a);
(aa) the unloading, storage or recovery of gas in the exercise of that right;
(ab) the conversion, in the exercise of that right, of any natural feature for the purpose of storing gas;
(ac) the exploration in exercise of that right with a view to, or in connection with, the exercise of a right within subsection (5)(a)(ii);
(b) the conveyance in the area so mentioned, by means of a pipe or system of pipes, of minerals got, or gas being stored or recovered, in the exercise of that right; and
(c) the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within paragraph (a) to (b) or this paragraph.
(7) The fact that an installation has been maintained for the carrying on of an activity within subsection (6) shall be disregarded for the purposes of paragraph (c) of that subsection if, since it was so maintained, the installation—
(a) has been outside relevant waters or, where it was so maintained in a part of a foreign sector of the continental shelf adjacent to those waters, the area consisting of those waters and that part; or
(b) has been maintained for the carrying on of an activity which is not within that subsection.
(8) For the purposes of this section, one body corporate is associated with another if one of them controls the other or a third body corporate controls both of them; and subsections (8A) to (8D) set out the circumstances in which one body corporate (“A”) controls another (“B”).
(8A) Where B is a company, A controls B if A possesses or is entitled to acquire—
(a) one half or more of the issued share capital of B,
(b) such rights as would entitle A to exercise one half or more of the votes exercisable in general meetings of B,
(c) such part of the issued share capital of B as would entitle A to one half or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or
(d) such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive one half or more of the assets of B which would then be available for distribution among the shareholders.
(8B) Where B is a limited liability partnership, A controls B if A—
(a) holds a majority of the voting rights in B,
(b) is a member of B and has a right to appoint or remove a majority of other members, or
(c) is a member of B and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in B.
(8C) In subsection (8B)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.
(8D) In any case, A controls B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.
(9) In determining whether, by virtue of subsections (8) to (8D) , one body corporate controls another, the first-mentioned body corporate shall be taken to possess—
(a) any rights and powers possessed by a person as nominee for it; and
(b) any rights and powers possessed by a body corporate which it controls (including rights and powers which such abody corporate would be taken to possess by virtue of this paragraph).
(A1) The Secretary of State may not give a notice under section 29(1) in relation to an offshore installation to a person (“P”) who, in relation to the installation, falls within paragraph (b) or (c) of section 30(1), if—
(a) P is not entitled to derive, and never has been entitled to derive, any financial or other benefit from any activity within section 30(6)—
(i) which has been or is carried on (or is intended to be carried on) from, by means of or on the installation, and
(ii) is an activity to which subsection (B1) applies, and
(b) P is not, and never has been, a person within section 30(1)(a), (ba), (d) or (e) in relation to the installation.
(B1) This subsection applies to an activity if—
(a) where the activity is the exploitation or exploration of mineral resources, it relates to an oil field for which the installation is or is to be established or maintained;
(b) where the activity is the conveyance of minerals, the minerals are got, or to be got, from such an oil field;
(c) where the activity is the unloading, storage or recovery of gas, it relates to a controlled place (within the meaning of Chapter 2 or 3 of Part 1 of the Energy Act 2008) for which the installation is or is to be established or maintained;
(d) where the activity is the conveyance of gas being stored or recovered, the storage or recovery of the gas relates to such a controlled place;
(e) where the activity is within section 30(6)(c)—
(i) the installation is in an oil field in respect of which P has an interest, or
(ii) the installation is in a controlled place in respect of which P has a licence under Part 1 of the Energy Act 2008.
(C1) For the purposes of subsection (B1)—
(a) “oil field” means an area which the appropriate authority (within the meaning of paragraph 1(2) of Schedule 1 to the Oil Taxation Act 1975) has determined to be an oil field for the purposes of Part 1 of that Act,
(b) P has an interest in an oil field if P is entitled to derive, or has at any time been entitled to derive, any financial or other benefit from activities within section 30(6) (other than paragraph (c)) carried on in the field.
(D1) The Secretary of State may not give a notice under section 29(1) in relation to an offshore installation to a body corporate if—
(a) the body corporate falls within paragraph (e) of section 30(1) (and no other paragraph of that section), and
(b) the body corporate falls within that paragraph by reason only that it is associated (within the meaning given by section 30(8)) with a person to whom the Secretary of State may not give a notice in relation to the installation by virtue of subsection (A1).
(1) Subject to subsection (3), the Secretary of State shall not give a notice under section 29(1) in relation to an offshore installation to a person within paragraph ... (e) of section 30(1) if the Secretary of State has been and continues to be satisfied that adequate arrangements (including financial arrangements) have been made by a person or persons within paragraph (a), (b) or (c) to ensure that a satisfactory abandonment programme will be carried out.
(2) Subject to subsection (3), the Secretary of State shall not give a notice under section 29(1) in relation to a submarine pipeline to a person within paragraph (b) or (c) of section 30(2) if the Secretary of State has been and continues to be satisfied that adequate arrangements (including financial arrangements) have been made by a person or persons within paragraph (a) to ensure that a satisfactory abandonment programme will be carried out.
(3) Subsections (1) and (2) shall not apply if there has been a failure to comply with a notice under section 29(1) or if the Secretary of State has rejected a programme submitted in compliance with such a notice.
(4) The Secretary of State shall not give a notice to a person under section 29(1) without first giving him an opportunity to make written representations as to whether the notice should be given.
(5) Where the Secretary of State has given a notice under section 29(1) in relation to an installation or a pipeline, he may at any time before the programme required by it is submitted withdraw the notice or give (subject to the preceding provisions of this section) a further notice under section 29(1) (whether in substitution for or in addition to any notice already given); and if he does so he shall inform the recipients of any other notices which have been given in relation to that installation or pipeline and not withdrawn.
(6) Neither the withdrawal of a notice given under section 29(1) nor the giving of a further notice shall relieve the recipient of any other notice of his duty to submit a programme (jointly, in a case where more than one notice is given and not withdrawn, with the recipients of the other notices).
(1) The Secretary of State may either approve or reject a programme submitted to him under section 29.
(2) If he approves a programme, the Secretary of State may approve it with or without modifications and either subject to conditions or unconditionally.
(2A) The modifications or conditions may (in particular) include modifications or conditions—
(a) which are intended (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) to reduce the total cost of carrying out the programme, provided that they do 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;
(b) requiring the persons who submitted the programme to carry out and publish or make available to the Secretary of State and the OGA a review of the programme and its implementation including, where relevant, recommendations as to the contents and implementation of future abandonment programmes.
(3) Before approving a programme with modifications or subject to conditions, the Secretary of State shall give the persons who submitted the programme an opportunity to make written representations about the proposed modifications or conditions.
(4) If he rejects a programme, the Secretary of State shall inform the persons who submitted it of his reasons for doing so.
(5) The Secretary of State shall act without unreasonable delay in reaching a decision as to whether to approve or reject a programme.
(6) Before reaching a decision under this section the Secretary of State must—
(a) consult the OGA, and
(b) take into account the cost of carrying out the programme that has been submitted and whether it is possible to reduce that cost by modifying the programme or making it subject to conditions.
(7) When consulted under subsection (6)(a), the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) whether section 29(2A)(b) has been complied with and, if it has not been, modifications or conditions that would enable it to be complied with.
(1) If a notice under section 29(1) is not complied with, or if the Secretary of State rejects a programme submitted in compliance with such a notice, the Secretary of State may himself prepare an abandonment programme for the installation or pipeline concerned.
(2) With a view to exercising his powers under subsection (1) of this section, the Secretary of State may by written notice require any of the persons to whom notice was given under section 29(1) to provide him, within such time as may be specified in the notice, with such records and drawings and such other information as may be so specified.
(3) A person who without reasonable excuse fails to comply with a notice under subsection (2) shall be guilty of an offence.
(3A) When preparing an abandonment programme under this section the Secretary of State must—
(a) consult the OGA, and
(b) frame the programme 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 it out is kept to the minimum that is reasonably practicable in the circumstances.
(3B) When consulted under paragraph (a) of subsection (3A), 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) how to comply with the requirement in paragraph (b) of that subsection.
(4) The Secretary of State may recover from any of the persons to whom a notice was given under section 29(1) any expenditure incurred by the Secretary of State in preparing an abandonment programme under this section, and any charge that would have been payable by those persons in accordance with regulations under section 38C if they had complied with the notice under section 29(1).
(5) A person liable to pay any sum to the Secretary of State by virtue of subsection (4) shall also pay interest on that sum for the period beginning with the day on which the Secretary of State notified him of the sum payable and ending with the date of payment.
(6) The rate of interest payable in accordance with subsection (5) shall be a rate determined by the Secretary of State as comparable with commercial rates.
(7) Where the Secretary of State prepares an abandonment programme under this section, he shall inform the persons to whom notice was given under section 29(1) of its terms; and when he has done so, the following provisions of this Part of this Act shall have effect as if the programme had been submitted by those persons and approved by the Secretary of State.
(1) Where the Secretary of State has approved a programme submitted to him under section 29—
(a) either he or the persons who submitted it acting together may propose an alteration to the programme or to any condition to which it is subject; and
(b) either he or any of those persons may propose that any person who by virtue of section 36 has a duty to secure that the programme is carried out shall cease to have that duty, or that a person who does not already have that duty shall have it (either in addition to or in substitution for another person).
(2) In the case of a proposal of the kind mentioned in subsection (1)(b), any person who would if the proposed change were made have a duty to secure that the programme is carried out must be a person who—
(a) if the programme relates to an offshore installation, is within paragraph (a), (b), (ba), (c), (d) or (e) of section 30(1) when the proposal is made, or has been within one of those paragraphs at some time since the giving of the first notice under section 29(1) in relation to the installation; and
(b) if the programme relates to a submarine pipeline, is within paragraph (a), (b) or (c) of section 30(2) when the proposal is made, or has been within one of those paragraphs at some time since the giving of the first notice under section 29(1) in relation to the pipeline.
(3) The Secretary of State shall not propose that a person who is or has been within paragraph... (e) (but no other paragraph) of section 30(1) or paragraph (b) or (c) (but not paragraph (a)) of section 30(2) shall have a duty to secure that a programme is carried out unless it appears to the Secretary of State that a person already under that duty has failed or may fail to discharge it.
(3A) A proposal that a person who is or has been within paragraph (b) or (c) of section 30(1) is to have a duty to secure that a programme is carried out may not be made if the Secretary of State would be prevented from giving a notice under section 29(1) to the person by virtue of section 31(A1) if the programme had not already been approved under this section.
(4) A proposal under subsection (1) shall be made by written notice given—
(a) if the proposal is the Secretary of State’s, to each of the persons by whom the programme was submitted; and
(b) in any other case, to the Secretary of State;
...
(4A) A person who makes a proposal under subsection (1) that is likely to have an effect on the cost of carrying out the programme must frame it so as to ensure (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) that the cost of carrying out the programme as proposed to be altered is kept to the minimum that is reasonably practicable in the circumstances.
(4B) Where the Secretary of State makes a proposal under subsection (1)(a) the purpose of which is to reduce the total cost of carrying out a programme, the proposal may not increase the total costs to be met by any person who is to be subject to obligations under the programme or under any other abandonment programme.
(5) Where the Secretary of State has made a proposal under subsection (1)(a), he shall give an opportunity to make written representations about it to each of the persons who submitted the programme.
(6) Where a proposal has been made under subsection (1)(b), the Secretary of State shall give an opportunity to make written representations about it to every person (other than one who made the proposal) who will if the proposed change is made—
(a) have a duty to secure that the programme is carried out; or
(b) cease to have that duty.
(7) The Secretary of State shall determine whether a change proposed under subsection (1) is to be made and shall then give notice of his determination, and of his reasons for it, to—
(a) every person who, before the determination was made, had a duty to secure the carrying out of the programme; and
(b) any person who has that duty as a result of the determination.
(7A) If it appears to the Secretary of State that what is proposed under subsection (1) is likely to have an effect on the cost of carrying out the programme, the Secretary of State must, before making a determination under subsection (7)—
(a) consult the OGA, and
(b) take that effect into account.
(7B) When consulted under subsection (7A)(a) the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) whether subsection (4A) applies and, if so, whether it has been complied with.
(8) Where the Secretary of State determines that a change proposed in accordance with this section shall be made, this Part of this Act shall thereafter have effect as if the programme had been approved by the Secretary of State after being submitted under section 29 with the alterations, or as the case may be by the persons, specified in the determination.
(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.
(1) The Secretary of State may at the request of one or more of the persons who submitted an abandonment programme withdraw his approval of the programme.
(2) If a request under subsection (1) is made by some but not all of the persons who submitted the programme, the Secretary of State shall give the others an opportunity to make written representations as to whether his approval should be withdrawn.
(3) The Secretary of State shall after determining whether to withdraw his approval of an abandonment programme give notice of his determination to each of the persons who submitted the programme.
Where an abandonment programme is approved by the Secretary of State, it shall be the duty of each of the persons who submitted it to secure that it is carried out and that any conditions to which the approval is subject are complied with.
(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.
(1) If an abandonment programme approved by the Secretary of State is not carried out or a condition to which the approval is subject is not complied with, the Secretary of State may by written notice require any of the persons who submitted the programme to take such remedial action as may be specified in the notice within such time as may be so specified.
(1A) If it appears to the Secretary of State that the proposed remedial action is likely to have an effect on the cost of carrying out the programme, the Secretary of State must—
(a) consult the OGA before giving a notice under subsection (1), and
(b) take that effect into account when deciding whether to give the notice.
(1B) When consulted under subsection (1A)(a), the OGA must consider and advise on the likely effect of the proposed remedial action on the cost of carrying out the programme.
(2) A person who fails to comply with a notice given to him under subsection (1) shall be guilty of an offence unless he proves that he exercised due diligence to avoid the failure.
(3) If a notice under subsection (1) is not complied with, the Secretary of State may carry out the remedial action required by the notice, and may recover any expenditure incurred by him in doing so from the person to whom the notice was given.
(4) A person liable to pay any sum to the Secretary of State by virtue of subsection (3) shall also pay interest on that sum for the period beginning with the day on which the Secretary of State notified him of the sum payable and ending with the date of payment.
(5) The rate of interest payable in accordance with subsection (4) shall be a rate determined by the Secretary of State as comparable with commercial rates.
(1) The Secretary of State may, for a purpose specified in subsection (1A), give a notice to a person within subsection (1B) requiring the person, within a time specified in the notice—
(a) to provide specified information relating to the person's financial affairs;
(b) to supply copies of specified documents, or documents of a specified description, relating to those affairs.
(1A) Those purposes are—
(a) determining whether to give a notice under section 29 to a person in respect of an installation or pipeline;
(b) determining whether to make a proposal under section 34(1) to impose a duty on a person under section 36;
(c) where a person has made such a proposal, determining whether to impose the duty on the person proposed.
(1B) A person falls within this subsection if—
(a) a notice under section 29(1) may be given to the person,
(b) the person falls within section 34(2)(a) or (b) and the Secretary of State is considering proposing, in accordance with section 34(1)(b), that the person should have a duty under section 36, or
(c) the person falls within section 34(2)(a) or (b) and the Secretary of State is considering whether to impose a duty on the person under section 36 in accordance with a proposal made under section 34(1)(b).
(2) In order to satisfy himself that a person falling within subsection (2A) will be capable of carrying out any abandonment programme which has been submitted (whether or not it is approved) or may be submitted in relation to an installation or pipeline , the Secretary of State may at any time by written notice require that person, within such time as may be specified in the notice—
(a) to provide such information (which may relate to the estimated costs of abandonment of the installation or pipeline or to any other financial or other matter) ; and
(b) to supply copies of such documents,
as may be so specified.
(2A) A person falls within this subsection if—
(a) a notice under section 29(1) has been given to the person, or
(b) the person has a duty under section 36 to secure that an abandonment programme is carried out.
(3) A person who—
(a) without reasonable excuse fails to comply with a notice under subsection (1) or (2); or
(b) in purported compliance with such a notice provides information which he knows to be false in a material particular or recklessly provides information which is false in a material particular,
shall be guilty of an offence.
(4) The Secretary of State may, after consulting the Treasury, give written notice to a person to whom subsection (4A) applies, requiring the person to take such action as may be specified in the notice within such time as may be so specified.
(4A) This subsection applies to a person if—
(a) the person falls within subsection (2A), and
(b) the Secretary of State is not satisfied that the person will be capable of carrying out any duty which has been, or is likely to be, imposed on the person by section 36.
(5) The Secretary of State shall not give notice to a person under subsection (4) without first giving him an opportunity to make written representations as to whether the notice should be given.
(6) A person who fails to comply with a notice under subsection (4) shall be guilty of an offence unless he proves that he exercised due diligence to avoid the failure.
(7) It is an offence for a person to disclose information obtained by virtue of a notice under subsection (1) or (2) unless the disclosure—
(a) is made with the consent of the person by or on behalf of whom the information was provided,
(b) is for the purpose of the exercise of the Secretary of State's functions under this Part, Chapter 3 of Part 2 of the Energy Act 2004 or Part 1 of the Energy Act 2008, or
(c) is required by or under an enactment.
38A Protection of funds set aside for the purposes of abandonment programme
(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.
38B Directions to provide information about protected assets
(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, and
in 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.
38C Charges in connection with exercise of functions under Part 4
(1) The Secretary of State may by regulations made by statutory instrument provide for payment to the Secretary of State of charges for or in connection with the carrying out by the Secretary of State of the Secretary of State’s functions under this Part.
(2) Regulations under this section may provide that a charge is to be of an amount—
(a) specified in the regulations, or
(b) determined by the Secretary of State in accordance with the regulations.
(3) Regulations under this section may specify matters to which the Secretary of State must have regard when determining the amount of a charge.
(4) Regulations under this section may specify—
(a) how a charge is to be paid;
(b) when a charge is to be paid;
(c) the person by whom a charge is to be paid.
(5) Provision made by virtue of subsection (4)(c) may confer a discretion on the Secretary of State.
(6) Regulations under this section may—
(a) include incidental, supplementary or consequential provision;
(b) include transitory or transitional provision or savings;
(c) make different provision for different purposes.
(7) Before making regulations under this section, the Secretary of State must consult organisations in the United Kingdom that appear to the Secretary of State to be representative of persons who are likely to be affected by the regulations.
(8) The Secretary of State must not make regulations under this section without the consent of the Treasury.
(9) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.
(1) The Secretary of State may make regulations relating to the abandonment of offshore installations and submarine pipelines.
(2) Without prejudice to the generality of subsection (1), regulations under this section may—
(a) prescribe standards in respect of the dismantling, removal and disposal of installations and pipelines;
(b) prescribe standards and safety requirements in respect of anything left in the water in cases where an installation or pipeline is not wholly removed;
(c) make provision for the prevention of pollution;
(d) make provision for inspection, including provision as to the payment of the costs of inspection;
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Regulations under this section may include provision making it an offence, in such cases as may be prescribed in the regulations, to contravene the regulations.
(4) Where regulations under this section create an offence, they shall make provision as to the mode of trial and punishment of offenders; but—
(a) any provision as to punishment on summary conviction shall not authorise a fine exceeding the statutory maximum or imprisonment; and
(b) any provision as to punishment on conviction on indictment shall not authorise imprisonment for a term exceeding two years.
(5) Before making regulations under this section the Secretary of State shall consult organisations in the United Kingdom appearing to him to be representative of those persons who will be affected by the regulations; ...
(6) Regulations under this section shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
A person guilty of an offence under section 28A, 30, 33, 36A, 37 or 38 shall be liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum;
(b) on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or to both.
(1) Proceedings for an offence under section 28A, 30, 33, 36A, 37 or 38 or under regulations made under section 39 shall not be instituted in England and Wales except—
(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or
(b) by or with the consent of the Director of Public Prosecutions.
(2) Proceedings for an offence under section 28A, 30, 33, 36A, 37 or 38 or under regulations made under section 39 shall not be instituted in Northern Ireland except—
(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or
(b) by or with the consent of the Director of Public Prosecutions for Northern Ireland.
(3) Where an offence committed by a body corporate under section 28A, 30, 33, 36A, 37 or 38 or under regulations made under section 39 is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
(4) Where the affairs of a body corporate are managed by its members, subsection (3) shall apply in relation to acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.
(5) If an offence under section 28A, 36A or 37 or under regulations made under section 39 is committed outside the United Kingdom, proceedings for the offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.
(6) Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on prosecutions) shall not apply to proceedings for an offence to which subsection (1) of this section applies.
(1) If any person is aggrieved by any of the acts of the Secretary of State mentioned in subsection (2) and desires to question its validity on the ground that it was not within the powers of the Secretary of State or that the relevant procedural requirements had not been complied with, he may within 42 days of the day on which the act was done make an application to the court under this section.
(2) The acts referred to in subsection (1) are—
(a) the giving of a notice under section 29(1);
(b) the approval of a programme under section 32;
(c) the rejection of a programme under section 32;
(d) a determination under section 34;
(e) a determination under section 35;
(ea) the giving of a notice under section 36A(2);
(f) the giving of a notice under section 38(4).
(3) If on an application under this section the court is satisfied that the act in question was not within the powers of the Secretary of State or that the applicant has been substantially prejudiced by a failure to comply with the relevant procedural requirements, the court may quash the act.
(4) Except as provided by this section, the validity of any of the acts of the Secretary of State referred to in subsection (1) shall not be questioned in any legal proceedings whatever.
(5) In this section “the relevant procedural requirements”—
(a) in relation to the giving of a notice under section 29(1), means the requirements of section 31(4);
(b) in relation to the approval of a programme under section 32, means the requirements of section 32(3);
(c) in relation to the rejection of a programme under section 32, means the requirements of section 32(4);
(d) in relation to a determination under section 34, means the requirements of section 34(5), (6) and (7);
(e) in relation to a determination under section 35, means the requirements of section 35(2);
(ea) in relation to the giving of a notice under section 36A(2), means the requirements of section 36A(6);
(f) in relation to the giving of a notice under section 38(4), means the requirements of section 38(5).
(6) In this section, “the court” means—
(a) in relation to England and Wales, the High Court;
(b) in relation to Scotland, the Court of Session;
(c) in relation to Northern Ireland, the High Court.
Any notice or other communication authorised or required to be given by this Part of this Act may be sent by post (but this is without prejudice to any other method of transmission).
(1) In this Part of this Act, “offshore installation” means any installation which is or has been maintained, or is intended to be established, for the carrying on of any activity to which subsection (2) applies.
(2) This subsection applies to any activity mentioned in subsection (3) which is carried on from, by means of or on an installation which is maintained in the water, or on the foreshore or other land intermittently covered with water, and is not connected with dry land by a permanent structure providing access at all times and for all purposes.
(3) The activities referred to in subsection (2) are—
(a) the exploitation, or the exploration with a view to exploitation, of mineral resources in or under the shore or bed of relevant waters;
(aa) the exploration of any place in, under or over relevant waters with a view to the storage of gas in such an place;
(ab) the conversion of any place in, under or over relevant waters for the purpose of storing gas;
(b) the storage of gas in, under or over relevant waters or the recovery of gas so stored;
(ba) the unloading of gas at any place in, under or over relevant waters;
(c) the conveyance of things by means of a pipe, or system of pipes, constructed or placed on, in or under the shore or bed of relevant waters; and
(d) the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within any of paragraphs (a) to (c) or this paragraph.
(4) In this Part of this Act, “relevant waters” means—
(a) tidal waters and parts of the sea in or adjacent to the United Kingdom up to the seaward limits of the territorial sea;
(b) waters in an area designated under section 1(7) of the Continental Shelf Act 1964; and
(c) such inland waters as may for the time being be specified for the purposes of this paragraph by Order in Council;
but Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions and modifications as may be prescribed by the Order, this Part of this Act shall have effect as if—
(i) any reference in this Part of this Act to relevant waters included a reference to waters in any area specified under section 10(8); and
(ii) in relation to an installation which is or has been maintained, or is intended to be established, in relevant waters, any reference in subsection (3) to relevant waters included a reference to waters in a foreign sector of the continental shelf which are adjacent to such waters.
(5) For the purposes of this section—
“gas” means gas within the meaning of section 2(4) of the Energy Act 2008;
“inland waters” means waters within the United Kingdom other than tidal waters and parts of the sea;
“installation” includes—
any floating structure or device maintained on a station by whatever means; and
in such cases and subject to such exceptions as may be prescribed by Order in Council, any apparatus or works which are by virtue of section 26 to be treated as associated with a pipe or system of pipes for the purposes of Part III of this Act,
but, subject to paragraph (b), does not include any part of a pipeline within the meaning of that section;
“modifications” includes additions, omissions and alterations.
(6) The fact that an installation has been maintained for the carrying on of an activity falling within subsection (3) shall be disregarded for the purposes of this section if, since it was so maintained, the installation—
(a) has been outside relevant waters or, where it was so maintained in a part of a foreign sector of the continental shelf adjacent to those waters, the area consisting of those waters and that part; or
(b) has been maintained for the carrying on of an activity not falling within that subsection.
(7) Any statutory instrument containing an Order under subsection (4) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
In this Part of this Act—
“abandonment programme” has the meaning given by section 29;
“foreign sector of the continental shelf” has the meaning given by section 48(1);
“offshore installation” has the meaning given by section 44;
“relevant waters” has the meaning given by section 44(4);
“submarine pipeline” means a pipeline within the meaning of section 26 which is , or is intended to be established, in, under or over waters in—
the territorial sea adjacent to the United Kingdom; or
an area designated under section 1(7) of the Continental Shelf Act 1964.
but does not include any such pipeline which, by virtue of an order under subsection (2A) of section 24, is to be disregarded for the purposes of Part 3 of this Act (other than that subsection).