Session 2010 - 12
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Public Bill Committee Proceedings: 21 June 2011            

40

 

Energy Bill [Lords] continued

 
 

Acquisition of rights to use gas processing facilities for downstream purposes

 

Gregory Barker

 

Agreed to  NC11

 

To move the following Clause:—

 

‘(1)    

Section 12 of the Gas Act 1995 (acquisition of rights to use gas processing

 

facilities) is amended as follows.

 

(2)    

In the heading at the end insert “for downstream purposes”.

 

(3)    

For “the Secretary of State” (in each place those words occur) substitute “the

 

Authority”.

 

(4)    

In subsection (1)—

 

(a)    

in the words before paragraph (a), after “gas processing facility” insert

 

“which processes gas for a downstream purpose”;

 

(b)    

in that paragraph for “on that person’s behalf” substitute “for such a

 

purpose”.

 

(5)    

After subsection (1) insert—

 

“(1ZA)    

At least two months before publishing those conditions or any changes to

 

them under subsection (1), the owner of the facility must—

 

(a)    

publish a draft of the proposed conditions or changes; and

 

(b)    

inform any person who has a right to have gas processed by the

 

facility that the draft has been published.

 

(1ZB)    

The owner of the facility must take into account any representations

 

received about the proposed conditions or changes before publishing

 

them, or a modified version of them, as final conditions or changes under

 

subsection (1).”

 

(6)    

In subsection (1B) for “on his behalf” substitute “for a downstream purpose”.

 

(7)    

In subsection (1D)—

 

(a)    

omit the “and” immediately preceding paragraph (c);

 

(b)    

after paragraph (c) insert “; and

 

(d)    

that the gas is to be processed for a downstream

 

purpose”.

 

(8)    

In subsection (1G) for “he” substitute “it”.

 

(9)    

In subsection (2)(b) for “his” substitute “its”.

 

(10)    

For subsections (5) and (5A) substitute—

 

“(5)    

Sections 28 to 30F of the 1986 Act (enforcement of relevant requirements

 

etc) apply in relation to the owner of a gas processing facility as if—

 

(a)    

references to “a licence holder” were references to the owner of

 

the facility; and

 

(b)    

references to a “relevant requirement” were references to a

 

requirement imposed on the owner under this section.

 

(5A)    

For the purposes of this section, gas is processed for “a downstream

 

purpose” if it is processed with a view to its being put into a gas storage

 

facility, an LNG import or export facility, a gas interconnector or a

 

distribution system pipeline.”

 

(11)    

In subsection (6)—

 

(a)    

in the definition of “gas processing facility” for the words from “carries”

 

to the end substitute “—

 

(a)    

carries out gas processing operations;


 
 

Public Bill Committee Proceedings: 21 June 2011            

41

 

Energy Bill [Lords] continued

 
 

(b)    

is operated otherwise than by a gas transporter; and

 

(c)    

is not an LNG import or export facility;”;

 

(b)    

insert, in the appropriate place, the following definitions—

 

““authorised transporter” has the same meaning as in Part 1 of the

 

1986 Act;”;

 

““the Authority” means the Gas and Electricity Markets

 

Authority;”;

 

““distribution system operator” has the meaning given by Article

 

2(6) of Directive 2009/73/EC of the European Parliament and of

 

the Council of 13 July 2009 concerning common rules for the

 

internal market in natural gas and repealing Directive 2003/55/

 

EC;”;

 

““distribution system pipeline” means a pipeline operated by an

 

authorised transporter who is a distribution system operator;”;

 

““gas interconnector” has the same meaning as in Part 1 of the 1986

 

Act;”;

 

““gas storage facility” means a facility in Great Britain (including

 

the territorial sea adjacent to Great Britain and the sea in any area

 

designated under section 1(7) of the Continental Shelf Act 1964)

 

for either or both of the following—

 

(a)    

the storage in porous strata, or in cavities in strata, of gas

 

which has been, or will be, conveyed in a pipeline

 

system operated by the holder of a licence under section

 

7 or 7ZA of the 1986 Act;

 

(b)    

the storage of liquid gas which, if regasified, would be

 

suitable for conveyance through pipes to premises in

 

accordance with a licence under section 7 of the 1986

 

Act;

 

but the reference in paragraph (b) to the storage of liquid gas

 

does not include such temporary storage as is mentioned in the

 

definition of “LNG import or export facility”;”;

 

““LNG import or export facility” means a facility in Great Britain

 

(including the territorial sea adjacent to Great Britain and the sea

 

in any area designated under section 1(7) of the Continental

 

Shelf Act 1964) for—

 

(a)    

the importation into Great Britain and regasification of

 

liquid gas prior to its conveyance to a pipeline system

 

operated by the holder of a licence under section 7 or

 

section 7ZA of the 1986 Act, or the liquefaction of gas

 

for the purpose of its export from Great Britain; and

 

(b)    

any activity, including temporary storage of gas or liquid

 

gas, which is necessary for that importation,

 

regasification or liquefaction;”;

 

““storage”, in relation to liquid gas in a gas storage facility, includes

 

any liquefaction of gas or regasification of liquid gas ancillary to

 

the storage of liquid gas, and “stored”, in relation to liquid gas in

 

a gas storage facility, shall be construed accordingly;”.

 

(12)    

For subsection (7) substitute—


 
 

Public Bill Committee Proceedings: 21 June 2011            

42

 

Energy Bill [Lords] continued

 
 

“(7)    

Section 89 of the Energy Act 2011 (meaning of “associate”) applies for

 

the purposes of subsection (3) of this section as it applies for the purposes

 

of section 80(6)(d) and (8)(a) of that Act.”’.

 


 

Regulation of security of nuclear construction sites

 

Gregory Barker

 

Agreed to  NC12

 

To move the following Clause:—

 

‘(1)    

Section 77 of the Anti-terrorism, Crime and Security Act 2001 (regulation of

 

security of civil nuclear industry) is amended as follows.

 

(2)    

In subsection (1) (list of matters that may be regulated) after paragraph (c)

 

insert—

 

“(cza)    

nuclear construction sites and equipment used or stored on such

 

sites;”.

 

(3)    

In subsection (7) after the definition of “equipment” insert—

 

““nuclear construction site” means a site—

 

(a)    

on which works are being carried out with a view to its becoming

 

a nuclear site used wholly or mainly for purposes other than

 

defence purposes; and

 

(b)    

which is situated within 5 kilometres of an existing nuclear

 

site.”’.

 


 

Abandonment: infrastructure converted for CCS demonstration projects

 

Gregory Barker

 

Agreed to  NC13

 

To move the following Clause:—

 

‘(1)    

The Energy Act 2008 is amended as follows.

 

(2)    

After section 30 insert—

 

“30A  

Installations converted for CCS demonstration projects

 

(1)    

The Secretary of State may by order designate an installation as an

 

eligible CCS installation.

 

(2)    

But an order may not be made under subsection (1) in relation to—

 

(a)    

a carbon storage installation established or maintained under a

 

licence granted by the Scottish Ministers, or

 

(b)    

any other installation established or maintained wholly or partly

 

in Scotland.

 

(3)    

An order under subsection (1) ceases to have effect if the installation in

 

relation to which it is made becomes an installation within subsection

 

(2)(a).


 
 

Public Bill Committee Proceedings: 21 June 2011            

43

 

Energy Bill [Lords] continued

 
 

(4)    

An eligible CCS installation qualifies for change of use relief if—

 

(a)    

the installation is or has been used as part of a CCS

 

demonstration project, and

 

(b)    

the trigger event has occurred in relation to the installation at a

 

time when the installation was so used (whether before or after it

 

was designated under this section).

 

(5)    

The trigger event occurs—

 

(a)    

in relation to an installation used for the injection of captured

 

carbon dioxide into a carbon storage facility as part of a CCS

 

demonstration project, when captured carbon dioxide is first

 

present at the installation, and

 

(b)    

in relation to an installation used as part of a CCS demonstration

 

project for any other purpose, when captured carbon dioxide is

 

first present at another installation used as mentioned in

 

paragraph (a) as part of the same project.

 

(6)    

Where an eligible CCS installation qualifies for change of use relief—

 

(a)    

an abandonment programme notice must not be served on a

 

person who is within section 30(1) of the 1998 Act only because

 

one or more of subsections (7) to (9) applies in relation to the

 

person (but this does not affect the validity of a notice served on

 

any such person before the installation qualified for change of

 

use relief), and

 

(b)    

a proposal must not be made under section 34(1)(b) of the 1998

 

Act if the effect of the proposal (if implemented) would be to

 

impose an abandonment liability on a person who is within

 

section 34(2)(a) of the 1998 Act only because one or more of

 

subsections (7) to (10) applies in relation to the person.

 

(7)    

This subsection applies in relation to a person if—

 

(a)    

the person is within paragraph (b) of section 30(1) of the 1998

 

Act in relation to the installation only by virtue of the fact that

 

the person had a right mentioned in section 30(5)(a) of that Act

 

when an activity mentioned in section 30(6) of that Act was last

 

carried on from, by means of or on the installation, and

 

(b)    

any such activity was last so carried on before the trigger event

 

occurred in relation to the installation.

 

(8)    

This subsection applies in relation to a person if—

 

(a)    

the person is within paragraph (ba) of section 30(1) of the 1998

 

Act in relation to the installation, and

 

(b)    

the transfer mentioned in sub-paragraph (i) of that paragraph

 

took place before the trigger event occurred in relation to the

 

installation.

 

(9)    

This subsection applies in relation to a person if the person is within

 

paragraph (e) of section 30(1) of the 1998 Act only by virtue of being

 

associated with a body corporate which is within subsection (7) or (8).

 

(10)    

This subsection applies in relation to a person if the person has been

 

within any of paragraphs (a), (b), (c), (d) or (e) of section 30(1) of the

 

1998 Act in relation to the installation, but only at a time—

 

(a)    

when the installation was an offshore installation (within the

 

meaning given by section 44 of the 1998 Act), and

 

(b)    

before the trigger event occurred in relation to the installation.


 
 

Public Bill Committee Proceedings: 21 June 2011            

44

 

Energy Bill [Lords] continued

 
 

(11)    

The power conferred by subsection (1) does not include a power to

 

revoke an order made under that subsection.

 

(12)    

In this section—

 

“abandonment liability”, in relation to an installation, means a duty to

 

secure that an abandonment programme for the installation is carried out;

 

“abandonment programme”, in relation to an installation, means a

 

programme in respect of the installation approved, or having effect as if

 

approved, by the Secretary of State under section 32 of the 1998 Act;

 

“abandonment programme notice” means a notice served under section

 

29(1) of the 1998 Act;

 

“captured carbon dioxide” means carbon dioxide that has been produced by,

 

or in connection with, commercial electricity generation and captured

 

with a view to its disposal by way of permanent storage;

 

“carbon dioxide”, “CCS demonstration project” and “commercial

 

electricity generation” have the same meanings as in Part 1 of the Energy

 

Act 2010 (see section 7 of that Act);

 

“carbon storage facility” has the same meaning as in section 20;

 

“Scotland” has the same meaning as in the Scotland Act 1998 (see section

 

126(1) of that Act).

 

(13)    

Section 30(8) to (9) of the 1998 Act (when one body corporate is

 

associated with another) apply for the purposes of this section.

 

30B    

Submarine pipelines converted for CCS demonstration projects

 

(1)    

The Secretary of State may by order designate a submarine pipeline as an

 

eligible CCS pipeline.

 

(2)    

An eligible CCS pipeline qualifies for change of use relief if—

 

(a)    

the pipeline is or has been used as part of a CCS demonstration

 

project for a purpose other than the transport of petroleum, and

 

(b)    

the trigger event has occurred in relation to the pipeline at a time

 

when the pipeline was so used (whether before or after it was

 

designated under this section).

 

(3)    

The trigger event—

 

(a)    

in relation to a pipeline used to transport captured carbon dioxide

 

as part of a CCS demonstration project, occurs when captured

 

carbon dioxide is first present in the pipeline, and

 

(b)    

in relation to a pipeline used as part of a CCS demonstration

 

project for any other purpose, occurs—

 

(i)    

when captured carbon dioxide is first present in another

 

pipeline used as part of the same project, or

 

(ii)    

if earlier, when captured carbon dioxide is first present

 

at an installation used as part of the same project for the

 

injection of captured carbon dioxide into a carbon

 

storage facility.

 

(4)    

Where an eligible CCS pipeline qualifies for change of use relief, a

 

proposal must not be made under section 34(1)(b) of the 1998 Act if the

 

effect of the proposal (if implemented) would be to impose an

 

abandonment liability on a person who is within section 34(2)(b) of the

 

1998 Act only because subsection (5) applies in relation to the person.


 
 

Public Bill Committee Proceedings: 21 June 2011            

45

 

Energy Bill [Lords] continued

 
 

(5)    

This subsection applies in relation to a person if the person has been

 

within any of paragraphs (a) to (c) of section 30(2) of the 1998 Act in

 

relation to the pipeline, but only at a time—

 

(a)    

when the pipeline was used solely for activities other than

 

activities connected with any mentioned in section 17(2)(a), (b)

 

or (c), and

 

(b)    

before the trigger event occurred in relation to the pipeline.

 

(6)    

The power conferred by subsection (1) does not include a power to

 

revoke an order made under that subsection.

 

(7)    

In this section—

 

“abandonment liability”, in relation to a submarine pipeline, is a duty to

 

secure that an abandonment programme for the pipeline is carried out;

 

“abandonment programme”, in relation to a submarine pipeline, means a

 

programme in respect of the pipeline approved, or having effect as if

 

approved, by the Secretary of State under section 32 of the 1998 Act;

 

“captured carbon dioxide” and “CCS demonstration project” have the same

 

meanings as in section 30A;

 

“carbon storage facility” has the same meaning as in section 20;

 

“petroleum” has the same meaning as in Part 1 of the 1998 Act (see section

 

1 of that Act) and includes petroleum that has undergone any processing;

 

“submarine pipeline” has the same meaning as in Part 4 of the Petroleum

 

Act 1998 (see section 45 of that Act).”

 

(3)    

In the cross heading before section 30, for “installations” substitute

 

“infrastructure”.

 

(4)    

In section 30 (abandonment of installations)—

 

(a)    

in subsection (1) (application of Part 4 of Petroleum Act 1998 in relation

 

to abandonment of carbon storage installations)—

 

(i)    

for ““the 1998 Act”” substitute “referred to in this section and

 

sections 30A and 30B as “the 1998 Act””, and

 

(ii)    

at the end insert “and section 30A”,

 

(b)    

after subsection (4) (power to make regulations modifying Part 4 of the

 

1998 Act in its application to carbon storage installations) insert—

 

“(4A)    

The power in subsection (4) is subject to section 30A.”, and

 

(c)    

in subsection (5) (meaning of “carbon storage installation”) after “this

 

section” insert “and section 30A”.

 

(5)    

In section 105(2) (parliamentary control of subordinate legislation), after

 

paragraph (a) insert—

 

“(aa)    

an order which contains provision made under section 30A or

 

30B only (powers to designate installations and submarine

 

pipelines as eligible CCS installations and eligible CCS

 

pipelines);”.’.

 



 
 

Public Bill Committee Proceedings: 21 June 2011            

46

 

Energy Bill [Lords] continued

 
 

Carbon dioxide pipelines: powers of compulsory acquisition

 

Gregory Barker

 

Agreed to  NC14

 

To move the following Clause:—

 

‘(1)    

The Pipe-lines Act 1962 is amended as follows.

 

(2)    

In section 12 (orders for compulsory acquisition of rights over land for pipe-line

 

construction)—

 

(a)    

in subsection (1), for “the next following section” substitute “section 13”;

 

(b)    

in subsections (2), (4), (5)(a) and (b), (5A) (in both places), (6) and (7),

 

after “a compulsory rights order” insert “under this section”;

 

(c)    

in subsection (3), after “compulsory rights orders” insert “under this

 

section”.

 

(3)    

After section 12 insert—

 

“Pipe-lines for Conveying Carbon Dioxide: Compulsory Acquisition of Rights

 

over Land

 

12A    

Orders for compulsory acquisition of rights over land: pipe-lines for

 

conveying carbon dioxide

 

(1)    

This section applies in relation to a pipe-line (or a length of a pipe-line)

 

that is intended to be converted into a pipe-line (or length) used for

 

conveying carbon dioxide.

 

(2)    

The owner of the pipe-line may apply to the Secretary of State for an

 

order under subsection (3) in relation to land in which the pipe-line (or a

 

length of the pipe-line) is situated.

 

(3)    

An order under this subsection is an order authorising the owner of the

 

pipe-line to do one or more of the following—

 

(a)    

to use the pipe-line (or length of the pipe-line) in the land

 

described in the order to convey carbon dioxide;

 

(b)    

to execute pipe-line works in the land which are necessary in

 

consequence of the presence of the pipe-line (or length) in the

 

land;

 

(c)    

to execute pipe-line works in the land to enable the pipe-line (or

 

length) to be used to convey carbon dioxide or in consequence of

 

its use to convey carbon dioxide;

 

(d)    

to exercise, in relation to the pipe-line (or length), such of the

 

rights mentioned in Schedule 4 as may be specified in the order.

 

    

An order under this subsection is referred to in this Act as a “compulsory

 

rights order”.

 

(4)    

A compulsory rights order under this section may be made subject to

 

conditions (see section 13).

 

(5)    

On receiving an application under subsection (2), the Secretary of State

 

may grant or refuse the application.

 

(6)    

Part 1 of Schedule 2, as modified by Part 2 of that Schedule, has effect in

 

relation to applications for compulsory rights orders under this section.

 

(7)    

A compulsory rights order under this section enures for the benefit of the

 

owner for the time being of the pipe-line.


 
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